Document:

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                                                                   EXHIBIT 10.40

                                                                  EXECUTION COPY

                             DATED  28 AUGUST 2003

                   WESTERN WIRELESS INTERNATIONAL CORPORATION

               WESTERN WIRELESS INTERNATIONAL SLOVENIA CORPORATION

             WESTERN WIRELESS INTERNATIONAL SLOVENIA II CORPORATION

                      WESTERN WIRELESS INTERNATIONAL D.O.O.

                                       and

                          IKB DEUTSCHE INDUSTRIEBANK AG

          ------------------------------------------------------------

                     SECOND AMENDMENT AND RESTATEMENT OF THE
                   SPONSORS' AND SHAREHOLDERS' UNDERTAKING AND
                              COMPLETION GUARANTEE

                               DATED 30 APRIL 2002

          RELATING TO THE FINANCING OF THE VEGA GSM TELECOMMUNICATIONS
                              NETWORK IN SLOVENIA

          ------------------------------------------------------------

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                                TABLE OF CONTENTS

                                    CONTENTS

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                                         CLAUSE                                                PAGE
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1.   Definitions and Interpretation.........................................................     2

2.   Guarantee..............................................................................     9

3.   Undertakings...........................................................................    12

4.   Representations and Warranties.........................................................    19

5.   Undertakings in relation to Subordinated Debt..........................................    22

6.   Permitted Payments.....................................................................    24

7.   Subordination on Insolvency............................................................    25

8.   Enforcement by the Sponsors............................................................    27

9.   Voting.................................................................................    27

10.  Funding of Sponsor Contributions and Nature of Obligations.............................    28

11.  No Subrogation.........................................................................    32

12.  Waiver.................................................................................    32

13.  Consents...............................................................................    33

14.  Conflict...............................................................................    33

15.  Preservation of Subordinated Debt......................................................    34

16.  Taxes..................................................................................    34

17.  Indemnities............................................................................    35

18.  Successors, Assignments and Transfers..................................................    35

19.  Power of Attorney......................................................................    36

20.  Remedies and Waivers, Cumulative Rights, Partial Invalidity............................    36

21.  Rights of the Borrower.................................................................    37

22.  Other information......................................................................    37

23.  UMTS Rebate............................................................................    37

24.  Overseas ranking.......................................................................    37
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                                TABLE OF CONTENTS

                                   (CONTINUED)

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                                                                                               PAGE
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25.  Notices................................................................................    37

26.  Counterparts...........................................................................    40

27.  Amendments.............................................................................    40

28.  Governing law..........................................................................    40

29.  Jurisdiction; Consent to Service of Process; Waiver of Jury Trial......................    40

30.  Service of process.....................................................................    41

31.  Waiver of Immunity.....................................................................    41

32.  Expenses...............................................................................    42

33.  Entire Agreement.......................................................................    42

SCHEDULE 1 Process Agents...................................................................    58
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THIS AGREEMENT is dated                 2003 and made between:

(1)      WESTERN WIRELESS INTERNATIONAL CORPORATION ("WWIC"), WESTERN WIRELESS
         INTERNATIONAL SLOVENIA CORPORATION ("WWI SLOVENIA I"), and WESTERN
         WIRELESS INTERNATIONAL SLOVENIA II CORPORATION ("WWI SLOVENIA II")
         (together the "SPONSORS");

(2)      WESTERN WIRELESS INTERNATIONAL D.O.O., a company with limited liability
         organised and existing under the laws of the Republic of Slovenia (the
         "BORROWER"); and

(3)      IKB DEUTSCHE INDUSTRIEBANK AG, a banking corporation duly organised and
         existing under the laws of the Federal Republic of Germany as off shore
         security or facility agent for and on behalf of the Senior Creditors
         (the "OFF SHORE SECURITY AGENT" or the "OFF SHORE FACILITY AGENT" as
         the case may be).

WHEREAS

(A)      The Borrower is a special purpose project company created as a limited
         liability company on 20 September 2000 to undertake the Project.

(B)      WWIC, WWI Slovenia I, and WWI Slovenia II are the sponsors of the
         Project and are direct and indirect shareholders of the Borrower.

(C)      The Borrower has entered into the Facility Agreement pursuant to which
         each of the Banks has agreed to make available certain project finance
         facilities to the Borrower and the Lucent Loan Agreement pursuant to
         which Lucent Technologies Inc. has agreed to make a loan to the
         Borrower, in each case, for the purpose of, amongst other things, the
         design, construction, engineering, financing, commissioning, operation
         and maintenance of the Project.

(D)      The Borrower has entered into the Hedging Agreements pursuant to which
         the Hedging Counterparties will provide certain interest rate hedging
         arrangements to the Borrower.

(E)      The parties hereto have entered into the Original Sponsors' and
         Shareholders' Undertaking and Completion Guarantee pursuant to which
         the Sponsors agreed to provide a completion guarantee and certain
         undertakings to the Senior Creditors which were a condition precedent
         to the obligations of the Banks under the Facility Agreement.

(F)      The parties hereto wish to amend and restate the Original Sponsors' and
         Shareholders' Undertaking and Completion Guarantee as provided in this
         Agreement (which, for the avoidance of doubt, is intended by the
         parties hereto to be an amendment and restatement only and not a
         novation).

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IT IS AGREED as follows:

1.       DEFINITIONS AND INTERPRETATION

1.1      DEFINITIONS

         Terms used but not otherwise defined herein shall have the meanings
         ascribed to them in the Facility Agreement. The following terms shall
         have the following meanings when used herein:

         "AFFILIATE" means, in relation to any person, a Subsidiary of that
         person or a Holding Company of that person or any other Subsidiary of
         that Holding Company.

         "AGREEMENT" means this agreement and includes the schedules hereto.

         "ARRANGER" has the meaning given to it in the Facility Agreement.

         "AUTHORISATION" means an authorisation, consent, approval, resolution,
         licence, exemption, filing, notarisation or registration.

         "BANK" has the meaning given to it in the Facility Agreement.

         "BORROWER" means Western Wireless International, d.o.o..

         "BORROWER'S OBLIGATIONS" means all debts and monetary liabilities of
         the Borrower to the Senior Creditors of any nature, now existing or
         hereafter arising, whether or not evidenced by any note, agreement or
         other instrument under or in relation to the Finance Documents
         including, without limitation and in each such case, all interest,
         premium fees, make-whole amounts, swap termination payments, charges,
         losses, costs, expenses, Break Costs and any other sum payable by the
         Borrower thereunder.

         "BREAK COSTS" has the meaning given to it in the Facility Agreement.

         "CASH SHORTFALL" has the meaning given to it in the Facility Agreement.

         "CONCESSION AGREEMENT" means the concession agreement between the
         Government and the Borrower dated January 03, 2001 based on the
         Government's decision no. 347-16/99-6 dated 16 November 2000.

         "DEBT SERVICE RESERVE ACCOUNT" means the account established under
         Clause 23.9 (Debt Service Reserve Account) of the Facility Agreement.

         "DELIVERY CONTRACT" means the delivery contract between Lucent
         Technologies Network Systems GmbH, Nurnberg, Germany and the Borrower
         dated 15 March 2001 and signed on 21 March 2001 and 30 April 2001 as
         amended from time to time.

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         "DISCHARGE DATE" means the date on which the Borrower's Obligations
         have been fully and irrevocably paid or discharged to the reasonable
         satisfaction of the Off Shore Facility Agent, whether or not as a
         result of enforcement.

         "DSRA-REQUIRED BALANCE" has the meaning set out in Clause 23.9.2 (Debt
         Service Reserve Account) of the Facility Agreement.

         "ECA" means Euler Hermes Kreditversicherungs- AG, Hamburg.

         "ECA FACILITY" has the meaning given to it in the Facility Agreement.

         "EQUITY CONTRIBUTION" means a cash contribution in the Share Capital or
         subsequent payments in cash or in kind towards the capital (Naknadna
         vplacila).

         "ETSI" means the European Telecommunications Standards Institute.

         "EVENT OF DEFAULT" means any event or circumstance specified as such in
         Clause 25 (Events of Default) of the Facility Agreement.

         "FACILITY" has the meaning given to it in the Facility Agreement.

         "FACILITY AGREEMENT" means the facility agreement dated 30 April 2002
         between the Banks and the Borrower and as amended by the First
         Amendment Agreement relating to the Facility Agreement dated 28 October
         2002 and the Second Amendment Agreement relating to the Facility
         Agreement dated [-] August 2003.

         "FINANCE PARTY" means any of the Off Shore Facility Agent, the On Shore
         Facility Agent, the Security Agents, the Issuing Bank, the Arrangers or
         the Banks.

         "GOVERNMENT" means the Government of the Republic of Slovenia.

         "3GPP" means the 3G Partnership Project.

         "HEDGING AGREEMENT" means any hedging agreement between the Borrower
         and any Hedging Counterparty designated as a Hedging Agreement by the
         Borrower and the Hedging Counterparty and notified to the Off Shore
         Facility Agent in each case, in accordance with the terms of the
         Intercreditor Agreement.

         "HEDGING COUNTERPARTY" means the Original Hedging Counterparty and any
         bank or financial institution which accedes to the terms of the
         Intercreditor Agreement in accordance with the requirements thereof.

         "HOLDING COMPANY" means, in relation to a company or corporation, any
         other company or corporation in respect of which it is a Subsidiary.

                                      -3-
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         "INDEPENDENT TECHNICAL CONSULTANT" means Mr. Sami Ali of
         Teleconsultants and Associates Limited, who shall assist the Banks in
         connection with the Project or any replacement consulting firm
         nominated by the Majority Banks after consultation with the Borrower.

         "INFORMATION MEMORANDUM" means the document dated September 2001
         prepared by the Off Shore Facility Agent and approved by the Borrower
         in relation to the Project, distributed to the Banks and the ECA prior
         to the date hereof.

         "INITIAL BUSINESS PLAN" means a statement of the technical, economic
         and tax assumptions in the form of the financial model agreed between
         the parties to the Facility Agreement and referred to as the excel
         spreadsheet named "Base Case 12 July 01.xls".

         "INSOLVENCY EVENTS" has the meaning given to it in Clause 7.1
         (Insolvency Events).

         "ISSUING BANK" means Nova Ljubljanska banka d.d., Ljubljana or such
         other financial institution or bank from time to time which issues a
         SIT Facility Guarantee or LC.

         "ITU" means the International Telecommunications Union.

         "LICENCE" means the GSM-1800 licence issued by the Government to the
         Borrower (including the Concession Agreement) and any renewal,
         extension or replacement thereof.

         "LONG TERM INDEBTEDNESS" shall mean indebtedness for borrowed money
         which, as of the applicable determination date, would be included in
         the Group's consolidated financial statements prepared in accordance
         with US GAAP under the line items set forth therein entitled "Long Term
         Debt" and "Current Portion of Long Term Debt".

         "MAJORITY BANKS" has the meaning given to it in the Facility Agreement.

         "MANAGEMENT AGREEMENT" means the management agreement to be entered
         into between the Borrower and Western Wireless International
         Corporation.

         "MATERIAL ADVERSE EFFECT" means any event, occurrence or condition
         which has or could reasonably be expected to have a material adverse
         effect on:

         (a)      the business, operation, property (taken as a whole) and/or
                  financial condition of the Borrower and/or a Sponsor;

         (b)      the ability of the Borrower and/or the Sponsors to perform a
                  payment obligation or other material obligation under a
                  Transaction Document to which it is a party;

         (c)      except as permitted under the Facility Agreement the validity
                  or enforceability of a Material Contract; or

                                      -4-
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         (d)      the validity or enforceability of any of the Security
                  purported to be granted under the Security Documents (as and
                  when such Security is required to be valid and enforceable).

         "MATERIAL CONTRACTS" has the meaning given to it in the Facility
         Agreement.

         "NETWORK" means the Borrower's telecommunication network including,
         without limitation, all associated hardware, software, infrastructure,
         civil works, towers, masts and antenna systems, links and
         interconnection in Slovenia using the GSM ETSI standards and any
         evolution of these standards to 3GPP standards, or otherwise, and any
         equipment conforming to ITU standards and shall include all hardware,
         licensed software and documentation, services and support procured
         under the Delivery Contract.

         "OFF SHORE FACILITY AGENT" means IKB Deutsche Industriebank AG.

         "OFF SHORE SECURITY AGENT" means IKB Deutsche Industriebank AG.

         "ON SHORE FACILITY AGENT" means Nova Ljubljanska banka d.d.

         "ON SHORE SECURITY AGENT" means Nova Ljubljanska banka d.d.

         "ORIGINAL HEDGING COUNTERPARTY" means IKB International S.A.,
         Luxembourg.

         "ORIGINAL SPONSORS' AND SHAREHOLDERS' UNDERTAKING AND COMPLETION
         GUARANTEE" means the Sponsors' and Shareholders' Undertaking and
         Completion Guarantee, dated 30 April 2002, as amended by the First
         Amendment Agreement relating to the Sponsors' and Shareholders'
         Undertaking and Completion Guarantee, dated 28 October 2002.

         "PARENT" means Western Wireless Corporation.

         "PARTY" means a party to this Agreement.

         "PERMITTED GROUP ENCUMBRANCES" means:

         (a)      Permitted Encumbrances of the Borrower;

         (b)      Security created over the assets of any member of the Group in
                  respect of indebtedness permitted under Clause 3.1.5
                  (Indebtedness);

         (c)      any Security arising by operation of law in the ordinary
                  course of a Group member's business PROVIDED THAT if at any
                  time such Security is or becomes enforceable such Security is
                  being contested in good faith or appropriate reserves have
                  been made in respect of the indebtedness to which it relates;

         (d)      rights of set off arising in the ordinary course of a Group
                  member's business PROVIDED THAT if at any time such Security
                  is or becomes enforceable such Security is being

                                      -5-
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                  contested in good faith or appropriate reserves have been made
                  in respect of the indebtedness to which it relates;

         (e)      Security on property existing prior to the acquisition thereof
                  PROVIDED THAT such Security was not created to avoid the terms
                  of this Agreement;

         (f)      Security existing and disclosed in writing to the Off Shore
                  Security Agent prior to the Second Amendment Agreement
                  Effective Date; and

         (g)      Security created with the consent of the Senior Creditors.

         "POTENTIAL EVENT OF DEFAULT" has the meaning given to it in the
         Facility Agreement.

         "PROCEEDS AND REVENUE ACCOUNT" has the meaning given to it in the
         Facility Agreement.

         "PROCESS AGENT" has the meaning given to it in Clause 30.1 (Service of
         process).

         "PROJECT" means the design, construction, testing, completion and
         operation of the Network.

         "QUARTER" means each period of three months in a financial year of the
         Borrower, the first such period of any financial year commencing on the
         first day of such financial year.

         "REPAYMENT DATE" means in relation to a Facility the dates specified
         for repayment in schedule 2 (Repayment Dates) of the Facility
         Agreement.

         "REPORTING DATE" has the meaning given to it in Clause 3.3 (Contingent
         Equity).

         "SECURITY" means a mortgage, charge, pledge, lien, bill of exchange,
         security deposit or other security interest securing any obligation of
         any person or any other agreement or arrangement having a similar
         effect.

         "SECURITY AGENT" means the Off Shore Security Agent and/or the On Shore
         Security Agent.

         "SECURITY DOCUMENTS" has the meaning given to it in the Facility
         Agreement.

         "SENIOR CREDITORS" means the Finance Parties and the Hedging
         Counterparties and Lucent Technologies Inc (until the irrevocable
         repayment in full of all amounts outstanding under the Lucent Loan
         Agreement).

         "SHARE" means an ordinary fully paid up share in the Share Capital.

         "SHARE CAPITAL" means the share capital of the Borrower as increased
         from time to time in accordance with this Agreement.

         "SHAREHOLDERS" means WWI Slovenia I and WWI Slovenia II and any
         permitted transferee in accordance with and pursuant to the terms and
         conditions of this Agreement.

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         "SHAREHOLDERS PLEDGE AGREEMENT" means the shareholder pledge agreement
         to be entered into by WWIC for the purposes of pledging its interests
         in the Shareholders to the Off Shore Security Agent acting on behalf of
         the Senior Creditors.

         "SIT" means the lawful monetary unit of the Republic of Slovenia from
         time to time.

         "SIT FACILITY GUARANTEE OR LC" means any guarantee issued or to be
         issued or letter of credit opened or to be opened by the Issuing Bank
         upon request of the Borrower.

         "SPONSOR CONTRIBUTIONS" means contributions made to the Borrower by way
         of Equity Contributions and/or Subordinated Loans.

         "SPONSORS" means WWIC, WWI Slovenia I and WWI Slovenia II.

         "SPONSORS' AND SHAREHOLDERS' OBLIGATIONS" means the obligations of the
         Sponsors and Shareholders under this Agreement.

         "SUBORDINATED DEBT" means all present and future obligations and
         liabilities (whether actual or contingent, whether owed jointly,
         severally or in any other capacity whatsoever and whether originally
         incurred by the Borrower or by some other person) of the Borrower to
         the Sponsors or the Shareholders (or any of them) including, without
         limitation, any amounts paid by the Sponsors pursuant to Clause 2
         (Guarantee), any Subordinated Loan and any amount received by the
         Borrower from the Sponsors or the Shareholders as additional paid in
         capital which is not evidenced by the issuance of new Shares and
         amounts owing under the Sponsors Unsecured Loan Agreement and/or the
         Management Agreement (in each case including any such obligations or
         liabilities outstanding prior to the date of any amendment to this
         Agreement) PROVIDED THAT Subordinated Debt shall not, prior to the
         occurrence of an Event of Default, include amounts in respect of direct
         costs payable under the Management Agreement which are provided for in
         the Initial Business Plan and permitted to be paid in accordance with
         clause 23.3(d)(ii) (Application of moneys on the Proceeds and Revenue
         Accounts) of the Facility Agreement or Existing WWIC Loans that are
         permitted to be repaid to WWIC in accordance with clause 23.8.2 (Loan
         Proceeds Account) of the Facility Agreement.

         "SUBORDINATED DEBT DOCUMENT" has the meaning given to it in the
         Intercreditor Agreement.

         "SUBORDINATED LOAN" means a subordinated loan (other than a Sponsors
         Unsecured Loan) made to the Borrower in accordance with the terms of
         this Agreement.

         "SUBSIDIARY" means, in relation to any company or corporation, any
         company, corporation or partnership:

         (a)      which is controlled, directly or indirectly, by the
                  first-mentioned company or corporation and, for these
                  purposes, a company, corporation or partnership shall be
                  treated as being controlled by a company or corporation if
                  that other company or corporation is able to

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                  direct its affairs and/or to control the composition of its
                  board of directors or equivalent body;

         (b)      more than half the issued share capital or partnership
                  interest of which is beneficially owned, directly or
                  indirectly, by the first-mentioned company or corporation; or

         (c)      which is a subsidiary of another subsidiary of the
                  first-mentioned company or corporation.

         "TRANSACTION DOCUMENTS" has the meaning given to it in the Facility
         Agreement.

         "TRANSFER CONDITIONS" means, in relation to any disposal of Shares,
         that:

         (a)      the Transferee satisfies the Transferee Criteria;

         (b)      the person intending to dispose of its Shares has provided the
                  Off Shore Facility Agent with at least 60 days' notice of the
                  identity of the Transferee together with all necessary
                  information of the Transferee in order to be able to assess
                  the creditworthiness of the Transferee accurately, details of
                  the number of Shares that are to be transferred to and the
                  amount of Subordinated Loans that are to be assumed by the
                  Transferee;

         (c)      the Transferee has become bound by the terms of this Agreement
                  by execution of such documents as the Off Shore Facility Agent
                  may reasonably require specifying and has delivered a legal
                  opinion in form and substance satisfactory to the Off Shore
                  Facility Agent addressing the representations set out in
                  Clause 4.1 (Individual Sponsor and Shareholder representations
                  and warranties); and

         (d)      the Shares which are the subject of the disposal remain
                  subject to the Security.

         "TRANSFEREE" means a person to whom a Shareholder or Sponsor intends,
         in conformity with the provisions hereof and the constitutive documents
         of the Borrower, to dispose of all or part of its Shares or
         Subordinated Debt.

         "TRANSFEREE CRITERIA" means in relation to any Transferee, that:

         (a)      such person, its assets or its country of residence or
                  incorporation, is not then subject to any economic or
                  political sanctions issued by an OECD member country or issued
                  by an organisation to which an OECD member country is subject
                  and is reasonably satisfactory to the Majority Banks; and

         (b)      such person (or its parent, if such person's obligations are
                  unconditionally guaranteed by its parent) has delivered to the
                  Off Shore Facility Agent its most recent two consecutive years
                  of audited financial statements demonstrating to the
                  reasonable satisfaction of the Off Shore Facility Agent
                  (acting on the instructions of the Majority Banks) that such

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                  person could reasonably be expected to fulfil its future
                  obligations under the Finance Documents.

         "US GAAP" means generally accepted accounting principles, standards and
         practices in the United States of America consistently applied.

         "VAT" means value added tax as provided for in the Law on Value Added
         Tax published in the Official Gazettes of the Republic of Slovenia, no.
         89/98, 17/2000 - decision of Constitution Court, 30/2001 and any other
         tax of a similar nature.

         "WWI SLOVENIA I" means Western Wireless International Slovenia
         Corporation.

         "WWI SLOVENIA II" means Western Wireless International Slovenia II
         Corporation.

         "WWIC" means Western Wireless International Corporation.

1.2      INTERPRETATION

         In this Agreement a reference to:

1.2.1    this Agreement means this agreement as from time to time supplemented
         or amended by one or more agreements entered into pursuant to the
         applicable provisions hereof;

1.2.2    a document is a reference to that document as modified or replaced from
         time to time;

1.2.3    a person includes reference to a government, state, state agency,
         corporation, body corporate, association or partnership;

1.2.4    a person includes a reference to that person's legal personal
         representatives, successors and assigns;

1.2.5    the singular includes the plural and vice versa;

1.2.6    a time of day is a reference to the time in Dusseldorf, unless a
         contrary indication appears; and

1.2.7    a Clause or Schedule is a reference to a clause of or schedule to this
         Agreement.

1.3      An Event of Default can be assumed to be continuing unless the Borrower
         has satisfied the Agents or Security Agents (in each case acting on the
         instructions of the Majority Banks acting reasonably) that such Event
         of Default has been cured or waived.

1.4      If any enforcement action as directed by the Senior Creditors in
         accordance with the Intercreditor Agreement, permitted to be taken upon
         an Event of Default, has been commenced, the Borrower may not
         subsequently cure such Event of Default without the prior written
         consent of the Agents or Security Agents (in each case acting on the
         instructions of the Majority Banks).

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1.5      Clause headings and the table of contents in this Agreement are for
         convenience of reference only, are not part of this Agreement and shall
         not affect the construction of, or be taken into consideration in,
         interpreting this Agreement.

1.6      In respect of any obligations of the Sponsors, Shareholders and the
         Borrower hereunder, whether for payment of money or otherwise, the Off
         Shore Security Agent shall be authorised and entitled to demand payment
         or performance in accordance with the terms of such obligations as set
         out herein.

2.       GUARANTEE

2.1      GUARANTEE

         The Sponsors on a joint and several basis irrevocably, absolutely and
         unconditionally, as principal obligors and not merely as surety,
         guarantee to the Senior Creditors the punctual payment when due,
         whether at stated maturity, by acceleration or otherwise, and the
         punctual performance, of all of the present and future Borrower's
         Obligations under the Finance Documents and undertake for the benefit
         of the Senior Creditors to pay to the Off Shore Security Agent an
         amount equal to the Borrower's Obligations in the same manner as the
         Borrower's Obligations are required to be paid by the Borrower under
         the Finance Documents (the "GUARANTEE").

2.2      NATURE OF GUARANTEE

2.2.1    This Guarantee is one of payment and performance, not collection, and
         the obligations of the Sponsors under this Guarantee are independent of
         the Borrower's Obligations, and a separate action or actions may be
         brought and prosecuted against any one or all of the Sponsors to
         enforce this Guarantee, irrespective of whether any action is brought
         against the Borrower or whether the Borrower is joined in any such
         action or actions.

2.2.2    The Off Shore Security Agent may at any time and from time to time
         (whether or not after revocation or termination of this Guarantee)
         with-out the consent of, or notice (except as shall be required by
         applicable statute and cannot be waived) to, the Sponsors, and without
         incurring responsibility to the Sponsors or impairing or releasing the
         obligations of the Sponsors hereunder, apply any sums by whomsoever
         paid or howsoever realised to any of the Borrower's Obligations
         regardless of what Borrower's Obligations remain unpaid.

2.3      REMEDIES UPON DEFAULT; RIGHT OF SET-OFF

         (a)      Upon the occurrence and during the continuance of any Event of
                  Default or, after expiry of the notice period in clause 14.2
                  (Change of Control, Withdrawal of Licence and Abandonment of
                  the Project) of the Facility Agreement, a mandatory prepayment
                  event provided for in clause 14.2 (Change of Control,
                  Withdrawal of Licence and Abandonment of the Project)of the
                  Facility Agreement, the Off Shore Security Agent may, without
                  notice to or demand upon the Borrower or the Sponsors, declare
                  any of the Borrower's

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                  Obligations immediately due and payable, and shall be entitled
                  to enforce the obligations of the Sponsors hereunder. The
                  obligations of the Sponsors may be enforced hereunder at one
                  time or on separate occasions.

         (b)      Upon such declaration by the Off Shore Security Agent, the Off
                  Shore Security Agent pursuant to Clause 2.3(a) and any Senior
                  Creditor is hereby authorized at any time and from time to
                  time, to the fullest extent permitted by law, to set-off and
                  apply any and all deposits (general or special, time or
                  demand, provisional or final) at any time held and other
                  indebtedness at any time owing by the Off Shore Security Agent
                  or any Senior Creditor to or for the credit or the account of
                  the Sponsors against any and all of the obligations of the
                  Sponsors now or hereafter existing under this Guarantee,
                  whether or not the Off Shore Security Agent or such Senior
                  Creditor shall have made any demand under this Guarantee and
                  although such obligations may be contingent and unmatured. The
                  Off Shore Security Agent agrees promptly to notify the
                  Sponsors after any such set-off and application, PROVIDED that
                  the failure to give such notice shall not affect the validity
                  of such set-off and application. The rights of the Off Shore
                  Security Agent and Senior Creditors under this Clause 2.3 are
                  in addition to other rights and remedies (including other
                  rights of set-off) which the Off Shore Security Agent and
                  Senior Creditors may have.

2.4      STATUTE OF LIMITATIONS

         Any acknowledgement or new promise, whether by payment of principal or
         interest or otherwise and whether by the Borrower or others (including
         the Sponsors), with respect to any of the Borrower's Obligations shall,
         if the statute of limitations in favor of the Sponsors against the Off
         Shore Security Agent or Senior Creditors shall have commenced to run,
         toll the running of such statute of limitations and, if the period of
         such statute of limitations shall have expired, prevent the operation
         of such statute of limitations.

2.5      INTEREST

         Failure to pay when due all amounts payable from time to time by the
         Sponsors hereunder shall bear interest at the interest rate per annum
         specified in clause 9.5 (Default interest) of the Facility Agreement
         from the date such payment was due until the date of receipt in full by
         the Banks of such payment. Any interest payable under this Clause shall
         be paid by the Sponsors upon demand of the Off Shore Security Agent.

2.6      RIGHTS AND REMEDIES NOT WAIVED

         No act, omission or delay by the Off Shore Security Agent shall
         constitute a waiver of its or the Secured Creditors' rights and
         remedies hereunder or otherwise. No single or partial waiver by the Off
         Shore Security Agent of any default hereunder or right or remedy which
         it may have shall operate as a waiver of any other default, right or
         remedy or of the same default, right or remedy on a future occasion.

                                      -11-
<PAGE>

2.7      ADMISSIBILITY OF GUARANTEE

         The Sponsors agree that any copy of this Agreement signed by the
         Sponsors and transmitted by telecopier for delivery to the Off Shore
         Security Agent shall be admissible in evidence as the original itself
         in any judicial or administrative proceeding, whether or not the
         original is in existence.

2.8      WINDING-UP AND INSOLVENCY

         If on or before the Discharge Date:

2.8.1    any general meeting of any of the Sponsors is convened for the purposes
         of passing a resolution for its winding-up, bankruptcy or dissolution
         under any applicable law;

2.8.2    any legal proceedings are started (or renewed after stay) under any
         applicable law for the winding-up, bankruptcy or dissolution of any of
         the Sponsors; or

2.8.3    an order is made by a competent court or a resolution is passed for
         winding-up, bankruptcy or dissolution of any of the Sponsors or any
         receiver, manager, receiver-manager or similar officers are appointed
         in relation to any of the Sponsors, under any applicable law;

         then, if any such meeting, proceedings, order or appointment is not
         dismissed or discharged (if capable of being dismissed or discharged)
         in each case within 20 days of the institution or presentation thereof,
         in addition to any other rights of the Senior Creditors hereunder, the
         Sponsors shall, pay in accordance with Clause 2.1 (Guarantee) an amount
         equal to the Borrower's Obligations then outstanding without the need
         for any request, demand, notice or other action on the part of any
         Senior Creditor or the Off Shore Facility Agent.

3.       UNDERTAKINGS

3.1      UNDERTAKINGS OF WESTERN WIRELESS INTERNATIONAL CORPORATION

         WWIC undertakes to the Senior Creditors that up to and including the
         Discharge Date it will:

3.1.1    Ownership: not reduce its direct or indirect ownership of the Share
         Capital to less than 80% without the prior written consent of the
         Senior Creditors.

3.1.2    Reports and Information: provide the Off Shore Facility Agent, in
         sufficient copies for each of the Banks, with the following reports,
         prepared in compliance with all relevant legal and professional
         requirements and according to generally accepted accounting principles
         consistently applied:

         (a)      as soon as available, but in any event no later than one
                  hundred and twenty (120) days after the end of each financial
                  year, its audited (for 2001 only unaudited) annual report and
                  the audited annual report of Western Wireless International
                  Holding Corporation and, commencing with the 2002 financial
                  year, the unaudited annual financial statements of WWI
                  Slovenia I and WWI Slovenia II provided that in respect of the
                  2001 financial year,

                                      -12-
<PAGE>

                  WWIC shall provide the unaudited annual financial statements
                  of WWI Slovenia I and WWI Slovenia II as soon as such
                  financial statements are available;

         (b)      as soon as available, but in any event no later than one
                  hundred and twenty (120) days after the end of each financial
                  year, the audited annual report of the Parent and such other
                  information or reporting as the Off Shore Facility Agent may
                  from time to time reasonably request; and

         (c)      all such information relating to the Group required to be
                  supplied by the Borrower or by WWIC in accordance with clause
                  21 (Reporting Requirements) and clause 22.3 (Stage II
                  covenants) of the Facility Agreement in accordance with the
                  requirements thereof.

         All such financial information shall be in English and with respect to
         the information in Clause 3.1.2(a) and (b) shall be submitted to the
         Off Shore Facility Agent together with a certificate signed by the
         chief financial officer of WWIC confirming that such information is
         true and accurate or, with respect to any such financial information,
         if required by the Facility Agreement submitted with a Covenant
         Compliance Certificate in accordance with the requirements thereof. In
         respect of three year business plan to be provided in relation to the
         Group, WWIC shall meet with the Off Shore Facility Agent in accordance
         with the requirements of clause 21.6.2 (Business Plan Review) of the
         Facility Agreement.

3.1.3    Licence: promptly notify the Off Shore Facility Agent if it or any of
         its Affiliates acquires any telecommunications business or any new
         licence (excluding any renewal of or addition to any existing
         telecommunications licence), in particular any UMTS licence.

3.1.4    Disposals and reorganisation: not, without the prior written consent of
         the Majority Banks:

         (a)      dispose of any of its legal or economic interests in any
                  company or agree to permit any Subsidiary to dispose of any
                  part of its business or the whole or any part of its business;
                  or

         (b)      undertake any reconstruction or reorganisation of its business
                  or investments (other than investments that do not relate to
                  the business of WWIC);

         PROVIDED THAT it or its Subsidiaries may without the prior written
         consent of the Majority Banks:

         (i)      dispose of companies in which it holds less than a 50% legal
                  or economic ownership interest PROVIDED THAT such disposal is
                  on an arms length basis on commercial terms; and/or

         (ii)     dispose of its immaterial physical assets, on an arms length
                  basis, in the ordinary course of business.

3.1.5    Indebtedness: not, without the prior consent of the Majority Banks,
         incur or permit any Subsidiary to incur any Long Term Indebtedness to
         any person (other than Western Wireless

                                      -13-
<PAGE>

         International Holding Corporation or any other Group member)
         (contingent or otherwise) which at any time exceeds an amount, on a
         consolidated basis, of Euro 400,000,000.00.

         For purposes of determining compliance with this Clause, indebtedness
         denominated in any currency other than Euros shall be converted:

         (i)      first, into US Dollars on the same basis such amounts are
                  converted into US Dollars for the purposes of preparing the
                  Group's most recent consolidated audited financial statements;
                  and

         (ii)     thereafter, from US Dollars into Euros using the reciprocal
                  exchange rate applicable in paragraph (i) above.

         Notwithstanding anything contained herein to the contrary, the maximum
         amount of indebtedness pursuant to this Clause that may be incurred
         shall not be deemed to be exceeded due solely to the result of
         fluctuations in the exchange rates of currencies on dates which are not
         dates on which Long Term Indebtedness is incurred.

3.1.6    Negative pledge: other than those arrangements disclosed in writing to
         the Off Shore Facility Agent prior to the Second Amendment Agreement
         Effective Date and any Permitted Group Encumbrances, not, without the
         prior written consent of the Majority Banks, and shall not permit any
         Subsidiary to:

         (a)      create or permit to subsist any Security over any of its or
                  the Group's assets;

         (b)      sell, transfer or otherwise dispose of any of its or the
                  Group's assets on terms whereby they are or may be leased to
                  or re-acquired by the Borrower;

         (c)      sell, transfer or otherwise dispose of any of its or the
                  Group's receivables on recourse terms; or

         (d)      enter into any other preferential arrangement having a similar
                  effect to the arrangements set out in paragraphs (b) to (c)
                  above,

                  in circumstances where the arrangement or transaction is
                  entered into primarily as a method of raising Financial
                  Indebtedness or of financing the acquisition of an asset.

3.1.7    Loans and guarantees: not, without the prior written consent of the
         Majority Banks, and shall not permit any Subsidiary to make any loans,
         grant any credit or give any guarantee or indemnity (except as required
         under any of the Finance Documents) to or for the benefit of any person
         or otherwise voluntarily assume any liability, whether actual or
         contingent, in respect of any obligation of any other person (other
         than in respect of the making of loans, granting of credit or giving of
         guarantees or indemnities to WWIC or any Subsidiary permitted under
         Clause 3.1.5 (Indebtedness) or Clause 3.1.6 (Negative pledge)), other
         than:

                                      -14-
<PAGE>

         (a)      loans to, guarantees or indemnities in respect of employees
                  not to exceed Euro 2,500,000.00 or its equivalent, on a
                  consolidated basis, at any given time; and

         (b)      trade credit to unrelated parties in the ordinary course of
                  business.

3.2      UNDERTAKINGS OF THE SPONSORS

         Notwithstanding the Sponsors' obligations under Clause 2 (Guarantee)
         and as a separate and independent obligation, each of the Sponsors, on
         a joint and several basis, undertakes to the Senior Creditors that up
         to and including the Discharge Date it shall:

3.2.1    Sponsor Contributions: make Sponsor Contributions to ensure that as of
         the first Utilisation Date the aggregate amount of Share Capital of the
         Borrower and Subordinated Loans made to the Borrower shall be not less
         than Euro 78,500,000.

3.2.2    Additional Sponsor Contributions: make Sponsor Contributions to ensure
         that the aggregate amount of Share Capital of the Borrower and
         Subordinated Loans (excluding for the avoidance of doubt any amounts in
         respect of fees payable under the Management Agreement subordinated
         pursuant to clause 23.3(d)(vii) or 23.3(e) of the Facility Agreement)
         made to the Borrower (i) as of 21 October 2002 shall be not less than
         Euro 81,500,000, and (ii) as of 8 January 2003 shall be not less than
         Euro 86,060,000.

3.2.3    Subordinated Management Fees: convert the Subordinated Management Fees
         provided for under clause 23.3(e)(ii)(1) (Application of moneys on the
         Proceeds and Revenue Accounts) of the Facility Agreement into
         Subordinated Loans.

3.2.4    Technical and managerial capacity and assistance: provide to the
         Borrower such technical and managerial assistance consistent with
         prudent industry practice to enable the Borrower to undertake technical
         design of the Network, implement and operate the Network and provide
         trained seconded staff in accordance with the assumptions in the
         Initial Business Plan (without amendment) at the times and in the
         numbers as set out therein.

3.2.5    Change in ownership: provide the Off Shore Facility Agent, as soon as
         available, with information of any change in its ownership or the
         ownership of the Borrower.

3.2.6    Funding: promptly inform the Off Shore Facility Agent if the Parent
         ceases or indicates its intention to cease to provide financial
         assistance to the Sponsors to enable the Sponsors to comply with their
         financial obligations under the Finance Documents.

3.2.7    Additional information: provide such information as the Off Shore
         Facility Agent may reasonably request from time to time.

3.3      ADDITIONAL FUNDING OBLIGATIONS

         Notwithstanding any other provision of this Agreement and without
         prejudice to the Secured Creditors rights hereunder:

                                      -15-
<PAGE>

         (a)      If at any time there is a Cash Shortfall the Sponsors shall
                  forthwith, on a joint and several basis, make Equity
                  Contributions to cure such Cash Shortfall.

         (b)      If the balance standing to the credit of the Debt Service
                  Reserve Account is less than the DSRA-Required Balance, each
                  of the Sponsors, on a joint and several basis, shall forthwith
                  make Sponsor Contributions to the Debt Service Reserve Account
                  to ensure that the balance standing to the credit of the Debt
                  Service Reserve Account is at least equal to the DSRA-Required
                  Balance provided that from (and including) the Second
                  Amendment Effective Date such contributions shall only be made
                  by way of Equity Contributions.

         (c)      If, at anytime, Debt Service Payments then due and payable
                  cannot be made in full by the Borrower in accordance with the
                  Facility Agreement, the Sponsors shall forthwith, on a joint
                  and several basis, make Equity Contributions to enable such
                  payments to be made by the Borrower.

3.4      UNDERTAKINGS OF THE SPONSORS AND THE SHAREHOLDERS

         Each of the Sponsors and the Shareholders, on a joint and several
         basis, undertakes to the Senior Creditors that up to and including the
         Discharge Date, it shall:

3.4.1    Transfers: not dispose of any of its Shares unless it has first
         satisfied the Transfer Conditions;

3.4.2    Shareholding of Borrower: not hold, in aggregate, less than 80% of the
         Shares, directly or indirectly without the prior written consent of the
         Off Shore Facility Agent (acting on the instructions of the Majority
         Banks);

3.4.3    Shareholding in competitors: not hold, in aggregate, more than 20% of
         the shares and/or not more than 20% of the controlling rights in any
         other Slovenian GSM telecommunications operator operating in the
         digital cellular 1800 network directly or indirectly;

3.4.4    Distributions: not permit any distribution by way of declared or
         constructive dividend payments or other payment from the Borrower, if
         such payment would constitute a breach by the Borrower of any of its
         obligations under the Facility Agreement;

3.4.5    Authorisations: assist the Borrower in obtaining the necessary
         Authorisations required to perform the Project;

3.4.6    Winding-Up of Borrower: not sue or commence proceedings against the
         Borrower or seek a resolution or order for the voluntary winding-up or
         dissolution of the Borrower and in any dissolution or winding up of the
         Borrower it shall not claim or sue for any payment in respect of its
         Shares, Sponsors Unsecured Loans or Subordinated Loans unless all
         amounts payable under the Finance Documents have been indefeasibly paid
         in full;

                                      -16-
<PAGE>

3.4.7    Reduction of Share Capital: not approve the reduction or redemption of
         or permit the Borrower to reduce or redeem its Share Capital;

3.4.8    Performance of obligations: perform its obligations under the
         Management Agreement and, in all material respects, any other Material
         Contract to which it is a party and shall not:

         (a)      assign or transfer any of its rights or obligations
                  thereunder;

         (b)      except as permitted by the terms of the Facility Agreement,
                  make or agree to any material amendment, modification or
                  variation to, or make or agree to any suspension, early
                  termination or cancellation of, any of the Management
                  Agreement and any other Material Contract to which it is a
                  party or make or agree to any material amendment, modification
                  or variation to the organisational documents of the Borrower
                  in any manner which is inconsistent with the provisions of any
                  of the Finance Documents; or

         (c)      waive or grant any indulgence with respect to any material
                  right under any of the Material Contracts to which it is a
                  party;

3.4.9    Voting rights: not exercise its voting rights in a manner that would
         permit the Borrower to violate its obligations under the Finance
         Documents;

3.4.10   No encumbrances or disposals: not dispose of any of its rights under
         any Transaction Document to which it is a party and shall not grant any
         option with respect to, or create, incur, assume or suffer to exist any
         encumbrance over, any of its Shares or Subordinated Loans in the
         Borrower or any Transaction Document to which it is a party other than
         in each case encumbrances created under the Security Documents or
         encumbrances arising by operation of law which are being contested in
         good faith or for which appropriate reserves therefor have been made;

3.4.11   Abandonment: in its capacity as a Shareholder, not exercise its voting
         rights in the Borrower to cause or allow the Project to be abandoned or
         discontinued;

3.4.12   Repayment of Borrower payments: promptly repay to the Borrower any sum
         received by it (including by way of set-off) from the Borrower (in its
         respective capacity as Shareholder or as lender of the Sponsors'
         Unsecured Loans and Subordinated Loans), where the payment of such sum
         by the Borrower breaches its undertakings under the Facility Agreement
         or, in the case of a payment under the Sponsors Unsecured Loans or
         Subordinated Loans, if such payment was not due;

3.4.13   Amendments to documents: not agree to any amendment, variation or
         waiver of or in relation to the Sponsors Unsecured Loan Agreement or
         any other Finance Document to which it is a party which in the case of
         such other Finance Documents would materially adversely affect the
         rights of the Banks under such Finance Document;

                                      -17-
<PAGE>

3.4.14   Maintain existence: preserve and maintain its corporate existence and
         corporate rights and obtain and maintain in full force and effect all
         necessary authorisations applicable to it in connection with any
         Material Contracts to which it is a party as and when such necessary
         authorisations are required to be obtained in accordance with
         applicable law;

3.4.15   Notification of Off Shore Facility Agent: promptly inform the Off Shore
         Facility Agent of any notice of termination, suspension or force
         majeure or any other material notice served or received by it in
         respect of any Transaction Document to which it is a party;

3.4.16   Mergers: shall not permit the Borrower to merge or consolidate with any
         other person, enter into any demerger transaction, or participate in
         any other type of corporate reconstruction;

3.4.17   Competition: shall not participate in any way whether in conjunction
         with any third party or any Affiliate in any telecommunication system
         (other than through the Borrower's exploitation of the Network) which
         provides services in Slovenia except as provided and in accordance with
         the terms and conditions set out in clause 24.33 (UMTS and other
         licences) of the Facility Agreement;

3.4.18   General assistance: when requested by the Off Shore Security Agent,
         execute, acknowledge or deliver or cause to be executed, acknowledged
         or delivered such documents that are necessary in order to maintain in
         full force and effect the Sponsors' and Shareholders' Obligations;

3.4.19   Transfer of Subordinated Debt: not (save as expressly permitted in the
         Finance Documents):

         (a)      assign, transfer or dispose of, or create or permit to subsist
                  any Security over, any of the Subordinated Debt owing to it or
                  its proceeds or any interest in that Subordinated Debt or its
                  proceeds, or any security therefor, to or in favour of any
                  person;

         (b)      subordinate any of the Subordinated Debt owing to it or its
                  proceeds to any sums owing by the Borrower to any person other
                  than the Senior Creditors; or

         (c)      transfer by novation or otherwise any of its rights or
                  obligations under any Subordinated Debt Document to any
                  person,

         unless:

                  (i)      that person agrees with the parties hereto that it is
                           bound by all the provisions of this Agreement and (if
                           applicable) the relevant Subordinated Debt Document
                           as a Sponsor or as a Shareholder (as applicable) in a
                           manner satisfactory to the Off Shore Facility Agent;

                  (ii)     in the case of Subordinated Debt that person creates
                           a new Security over such Subordinated Debt and/or has
                           taken the assignment, transfer or disposal subject to
                           any existing security over such Subordinated Debt
                           created pursuant to the

                                      -18-
<PAGE>

                           Security Documents (in either case) in form and
                           substance satisfactory to the Majority Banks;

                  (iii)    the Off Shore Facility Agent has received any
                           relevant legal opinions in form and substance
                           satisfactory to it; and

                  (iv)     that person satisfies the Transferee Criteria; and

3.4.20   Confirmation of contributions: upon payment of any Subordinated Debt or
         Equity Contributions by a Shareholder or a Sponsor, promptly provide to
         the Off Shore Facility Agent a certificate duly executed by a director
         of the Borrower and a director of the Shareholder and/or Sponsor (as
         the case may be) confirming that the Subordinated Debt or Equity
         Contribution has been paid and received by the Borrower together with a
         true copy of bank statements of the Borrower evidencing such payment
         and any documents required by law to be given or issued in respect of
         such payment.

4.       REPRESENTATIONS AND WARRANTIES

4.1      INDIVIDUAL SPONSOR AND SHAREHOLDER REPRESENTATIONS AND WARRANTIES

         Each Sponsor and Shareholder, for itself, makes the following
         representations and warranties on the date of this Agreement which
         (other than those in Clause 4.1.8 (Information), Clause 4.1.13 (Share
         Capital) and Clause 4.1.16 (Information Memorandum, Initial Business
         Plan and Legal Due Diligence Report)) shall be repeated on each
         Utilisation Date and Repayment Date under the Facility Agreement and
         each payment date hereunder:

4.1.1    Corporate existence and due authorisation: it is a company duly
         incorporated and validly existing under the laws of its jurisdiction of
         incorporation and it has the power to enter into and perform, and has
         taken all necessary action to authorise its entry into, performance and
         delivery of, the Material Contracts to which it is a party and the
         transactions contemplated thereby, and each Material Contract to which
         it is a party constitutes (or will once executed) its legal, valid and
         binding obligation enforceable in accordance with its terms;

4.1.2    Authorisations: all necessary Authorisations required in connection
         with the entry into, performance, validity and enforceability of the
         Transaction Documents to which it is a party and the transactions
         contemplated thereby have been obtained or effected and are in full
         force and effect except Authorisations the failure of which to obtain
         would not have a Material Adverse Effect and Authorisations which are
         not required to be obtained by it until a future date and it is not
         aware of any reason why such necessary Authorisations required after
         the date hereof shall not be obtained and maintained. It is also in
         compliance in all material respects with the terms of the
         Authorisations referred to in this Clause 4.1.2;

4.1.3    Tax: under the applicable laws in force at the date hereof in the
         jurisdiction of its incorporation and the laws in force in the
         jurisdiction from which any amount is payable by it all amounts payable
         by it under this Agreement can be made free and clear of and without
         deduction or

                                      -19-
<PAGE>

         withholding for or on account of any tax, and no stamp or registration
         duty or similar taxes or charges are payable in its jurisdiction of
         incorporation in respect thereof;

4.1.4    Legality: it has undertaken all acts, conditions and things required to
         be done, fulfilled and performed in order:

         (a)      to enable it lawfully to enter into and perform and comply
                  with its obligations under this Agreement; and

         (b)      to make this Agreement admissible in a court of law;

4.1.5    No conflict: the entry into and performance by it of, and the
         transactions contemplated by, the Finance Documents to which it is a
         party do not and will not:

         (a)      conflict with any applicable law or regulation or judicial or
                  official order;

         (b)      conflict with its constitutive documents; or

         (c)      to the best of its knowledge having made reasonable enquiry,
                  conflict with any document which is binding upon it or upon
                  any of its assets;

4.1.6    Pari passu: under the applicable laws of its jurisdiction, any claim of
         the Senior Creditors under the Finance Documents against it will rank
         at least pari passu with the claims of all its other unsecured and
         unsubordinated creditors, save for those claims which are preferred by
         any bankruptcy, insolvency, liquidation, tax or other similar laws of
         general application;

4.1.7    Applicable law: it is in compliance in all material respects with:

         (a)      all applicable laws; and

         (b)      its obligations under each Material Contract to which it is a
                  party;

4.1.8    Information: all of the information it supplied to the Senior Creditors
         and to the Independent Technical Consultant is true, complete and
         accurate in all material respects as at the date such information was
         supplied and it has not knowingly failed to disclose to the Senior
         Creditors or to the Independent Technical Consultant any facts or
         circumstances the omission of which would render any such information
         misleading in any material aspects;

4.1.9    Litigation: no litigation, arbitration, administrative proceeding or
         claim relating to it before any court, tribunal, arbitrator or other
         relevant authority is presently in progress, pending or, to the best of
         its knowledge, threatened against it and which, if resolved adversely
         to it could reasonably be expected to have a Material Adverse Effect;

4.1.10   Winding-up: it has not taken any corporate action nor have (to the best
         of its knowledge) any other steps been taken or legal proceedings been
         started against it for its winding-up, dissolution,

                                      -20-
<PAGE>

         arrangement or reorganisation or for the appointment of a receiver,
         manager, receiver-manager, trustee or similar officer of it or any or
         all of its assets or revenues;

4.1.11   Financial statements:  its most recent audited financial statements:

         (a)      were prepared in accordance with US GAAP consistently applied
                  (unless expressly disclosed to the Off Shore Facility Agent in
                  writing to the contrary before the date of this Agreement);

         (b)      disclose all material liabilities (contingent or otherwise)
                  and all unrealised or anticipated losses required to be
                  disclosed by US GAAP as at the end of and during the relevant
                  financial period (unless expressly disclosed to the Off Shore
                  Facility Agent in writing to the contrary before the date of
                  this Agreement); and

         (c)      give a true and fair view of its financial condition and
                  operations as at the end of and during the relevant financial
                  period.

         Its financial year end and the financial year end of the Shareholder is
         31 December;

4.1.12   No material adverse change: since the date as at which the latest
         audited consolidated financial statements were stated to be prepared
         there has been no material adverse change in its business or financial
         condition;

4.1.13   Share Capital: as of the date hereof WWIC is the direct or indirect
         owner of 100 per cent of the registered Share Capital and no other
         Shares are currently in issue or proposed to be issued;

4.1.14   Encumbrances: there is no encumbrance and there is no agreement,
         arrangement or obligation to create or give an encumbrance, in relation
         to any of the issued or unissued Shares other than encumbrances
         constituted by the Security Documents or encumbrances arising by
         operation of law that are being contested in good faith or for which
         appropriate reserves therefor have been made;

4.1.15   Additional arrangements: there is no agreement, arrangement or
         obligation requiring the creation, allotment, issue, transfer,
         redemption or repayment of, or the grant to a person of the right
         (condition or not) to require the issue, transfer, redemption or
         repayment of a Share (including, without limitation, an option or right
         of pre-emption or conversion); and

4.1.16   Information Memorandum, Initial Business Plan and Legal Due Diligence
         Report: as at 30 April 2002 the information contained in the
         Information Memorandum, the Initial Business Plan and the Legal Due
         Diligence Report does not contain any information, data, assumption,
         statement of fact or circumstance which is untrue, or in the case of
         any assumption not considered reasonable, in a material respect or omit
         to state any information, data, assumption, fact or circumstance the
         omission of which could reasonably be expected to have a Material
         Adverse Effect.

                                      -21-
<PAGE>

4.2      RELIANCE

         The Sponsors and Shareholders acknowledge that they make the
         representations in Clause 4.1 (Individual Sponsor and Shareholder
         representations and warranties) with the intention of inducing the
         Senior Creditors to enter into this Agreement and the Facility
         Agreement or, as the case may be, the Hedging Agreements and that the
         Senior Creditors enter into this Agreement and the Facility Agreement,
         the Lucent Loan Agreement or, as the case may be, the Hedging
         Agreements on the basis of, and in full reliance on, each of such
         representations.

4.3      NO PREJUDICE

         Each Senior Creditor's rights and remedies in relation to any
         misrepresentation or breach of warranty on the part of any of the
         Sponsors and/or Shareholders are not prejudiced:

4.3.1    by any investigation by or on behalf of any Senior Creditor into the
         affairs of any of the Sponsors and/or Shareholders;

4.3.2    by the execution or the performance of this Agreement; or

4.3.3    by any other act or thing which may be done by or on behalf of any
         Senior Creditor in connection with this Agreement and which might,
         apart from this Clause 4.3, prejudice such rights or remedies.

5.       UNDERTAKINGS IN RELATION TO SUBORDINATED DEBT

5.1      UNDERTAKINGS BY THE SHAREHOLDERS AND SPONSORS

         Until the Discharge Date, except:

         (a)      as the Majority Banks have previously consented in writing; or

         (b)      in the case of paragraph (i) below only, to the extent that
                  the amount concerned is permitted to be paid pursuant to
                  Clause 6.1 (Permitted payments),

         no Sponsor or Shareholder shall:

                  (i)      demand or receive payment, prepayment or repayment
                           of, or any distribution in respect of or on account
                           of, any Subordinated Debt in cash or in kind or apply
                           any money or property in discharge of any
                           Subordinated Debt and acknowledges that, until the
                           Discharge Date, no such Subordinated Debt is or shall
                           become due and payable;

                  (ii)     sell, transfer or otherwise dispose of any
                           Subordinated Debt other than in accordance with
                           Clause 18.2 (Assignments and transfers by the
                           Sponsors and Shareholders);

                  (iii)    discharge or seek to discharge any Subordinated Debt
                           by set-off or any right of combination of accounts;

                                      -22-
<PAGE>

                  (iv)     claim or rank as a creditor in the insolvency,
                           winding up, bankruptcy or liquidation of the Borrower
                           other than in accordance with the provisions of
                           Clause 7 (Subordination on insolvency);

                  (v)      permit to subsist or receive any Security or any
                           guarantee or other assurance against financial loss
                           for, or in respect of, any Subordinated Debt;

                  (vi)     amend, vary, waive or release any Subordinated Debt
                           or the Subordinated Debt Documents; or

                  (vii)    take or omit any action whereby the ranking and/or
                           subordination arrangements provided for herein may be
                           impaired and if any such action is taken or omitted
                           to be taken then the Sponsors shall remedy the same
                           within ten (10) days.

5.2      UNDERTAKINGS BY THE BORROWER

         Until the Discharge Date, except:

         (a)      as permitted by Majority Banks; or

         (b)      in the case of paragraphs (i) and (ii) below, to the extent
                  that the amount concerned is permitted to be paid by Clause
                  6.1 (Permitted payments),

                  the Borrower shall not:

                  (i)      pay, prepay or repay, or make any distribution in
                           respect of or on account of, or purchase or acquire,
                           any Subordinated Debt in cash or in kind and
                           acknowledges that, until the Discharge Date, no such
                           Subordinated Debt is or shall become due and payable;

                  (ii)     give or permit to subsist any financial or other
                           support (including, without limitation, the taking of
                           any participation, the giving of any guarantee or
                           indemnity or the making of any deposit) to any person
                           in connection with any Subordinated Debt or to enable
                           any person to do any of the things referred to in
                           paragraph (i) above;

                  (iii)    discharge any Subordinated Debt by set-off or any
                           right of combination of accounts;

                  (iv)     create or permit to subsist any Security over any of
                           its assets for any Subordinated Debt;

                  (v)      amend, vary, waive, release or supplement any term of
                           any Subordinated Debt Document; or

                                      -23-
<PAGE>

                  (vi)     take or omit any action whereby the ranking and/or
                           subordination arrangements provided for herein may be
                           impaired and if any such action is taken or omitted
                           to be taken then the Sponsors shall remedy the same
                           within ten (10) days.

6.       PERMITTED PAYMENTS

6.1      PERMITTED PAYMENTS

         Subject to Clause 6.2 (Suspension of permitted payments) and Clause 6.3
         (Turnover), the Borrower may pay or repay in cash, and any Sponsor or
         Shareholder may receive and retain payment or repayment in cash of,
         principal and/or interest on the Subordinated Debt where (but only to
         the extent (if at all) that) such payment or repayment is expressly
         permitted, subject to the terms of this Agreement, by the Facility
         Agreement.

6.2      SUSPENSION OF PERMITTED PAYMENTS

         Subject to Clause 7 (Subordination on Insolvency) and without prejudice
         to any prohibition on payment arising out of any other provision of the
         Finance Documents, until the Discharge Date, except as previously
         consented to by the Majority Banks in writing, the Borrower may not
         make any payment which would be prohibited by Clause 5.1 (Undertakings
         by the Shareholders and Sponsors) and/or 5.2 (Undertakings by the
         Borrower) but for the provisions of Clause 6.1 (Permitted Payments) if
         and so long as there is either a Potential Event of Default, an Event
         of Default or any default under any material provision of a Hedging
         Agreement.

6.3      TURNOVER

         If at any time prior to the Discharge Date:

         (a)      any Sponsor or Shareholder receives or recovers a payment or
                  distribution in cash or in kind of, or on account of, any of
                  the Subordinated Debt or the Borrower makes any payment or
                  distribution in cash or in kind on account of the purchase or
                  other acquisition of any of the Subordinated Debt which (in
                  any case) is prohibited by Clause 5.1 (Undertakings by the
                  Shareholders and Sponsors) and/or Clause 5.2 (Undertakings by
                  the Borrower) and not permitted by Clause 6.1 (Permitted
                  payments);

         (b)      any of the Subordinated Debt is discharged by set-off,
                  combination of accounts or otherwise; or

         (c)      a Shareholder or Sponsor receives any other amount in respect
                  of monies which have been paid or which have become payable by
                  a Shareholder or a Sponsor under this Agreement,

         the receiving Sponsor or Shareholder will forthwith pay to the Off
         Shore Facility Agent for application towards the Borrower's Obligations
         and shall hold the same on trust for such Agent pending such payment an
         amount equal to the lesser of:

                                      -24-
<PAGE>

                           (1)      the outstanding aggregate unrecovered
                                    balance of the Borrower's Obligations; and

                           (2)      the amount of such payment, distribution,
                                    benefits of the set-off or combination or
                                    other recovery.

7.       SUBORDINATION ON INSOLVENCY

7.1      INSOLVENCY EVENTS

         If:

         (a)      any resolution is passed or order made for the winding up,
                  liquidation, dissolution, administration, reorganisation or
                  moratorium of the Borrower;

         (b)      the Borrower becomes subject to any insolvency, bankruptcy,
                  reorganisation, receivership (whether relating to all or part
                  of its assets and whether or not resulting from the
                  enforcement of any of the Security Documents), liquidation,
                  dissolution or moratorium or other similar proceeding,
                  voluntary or involuntary (and whether or not involving
                  insolvency);

         (c)      the Borrower assigns its assets for the benefit of its
                  creditors or enters into any arrangement with its creditors
                  generally or any arrangement whereby its affairs and/or assets
                  are submitted to the control of or protected from its
                  creditors is ordered or declared;

         (d)      the Borrower becomes subject to any distribution of its
                  assets, or has a liquidator, trustee in bankruptcy, judicial
                  custodian, compulsory manager, receiver, administrative
                  receiver, administrator or the like appointed with respect to
                  any of its assets (whether or not resulting from the
                  enforcement of any of the Security Documents); or

         (e)      anything analogous to any of the foregoing shall occur in
                  relation to the Borrower in any country or territory in which
                  it is incorporated or carries on any business,

         (together the "INSOLVENCY EVENTS") the provisions of Clauses 7.2
         (Subordination), 7.3 (Filing of claims), 7.4 (Distributions) and 9
         (Voting) shall apply.

7.2      SUBORDINATION

         In any of the circumstances mentioned in Clause 7.1 (Insolvency events)
         the Subordinated Debt will be subordinate in right of payment to the
         Borrower's Obligations.

                                      -25-
<PAGE>

7.3      FILING OF CLAIMS

         In any of the circumstances mentioned in Clause 7.1 (Insolvency
         events), until the Discharge Date:

         (a)      the Off Shore Facility Agent (or, if not the Off Shore
                  Facility Agent, each Senior Creditor) may, and is irrevocably
                  authorised on behalf of each Sponsor and each Shareholder to:

                  (i)      claim, enforce and prove for any Subordinated Debt
                           owed by the Borrower;

                  (ii)     file claims and proofs, give receipts and take all
                           such proceedings and do all such things as the Off
                           Shore Facility Agent or the Senior Creditors may
                           reasonably consider appropriate to recover such
                           Subordinated Debt; and

                  (iii)    receive all distributions on such Subordinated Debt
                           for application in accordance with the Intercreditor
                           Agreement; and

         (b)      if and to the extent that the Off Shore Facility Agent or a
                  Senior Creditor is not entitled to claim, enforce, prove, file
                  claims or proofs, or take proceedings for the recovery of any
                  Subordinated Debt owed by the Borrower or elects not to do so,
                  the Sponsors and Shareholders will do so in good time as
                  requested by the Off Shore Facility Agent acting in accordance
                  with the instructions of the Majority Banks (acting
                  reasonably).

7.4      DISTRIBUTIONS

         In any of the circumstances mentioned in Clause 7.1 (Insolvency
         events), until the Discharge Date:

         (a)      each Sponsor and each Shareholder, upon demand, shall pay an
                  amount equal to all distributions in cash or in kind received
                  by or by any agent for such Sponsor or Shareholder in respect
                  of the Subordinated Debt in consequence of such circumstances
                  to the Off Shore Facility Agent for application in accordance
                  with the Intercreditor Agreement; and

         (b)      the trustee in bankruptcy, liquidator, assignee or other
                  person distributing the assets of the Borrower or their
                  proceeds shall be directed to pay distributions on the
                  Subordinated Debt concerned direct to the Off Shore Facility
                  Agent on behalf of the Senior Creditors for application in
                  accordance with the Intercreditor Agreement.

         Each Sponsor and each Shareholder will give all such notices and do all
         such things as the Off Shore Facility Agent may reasonably request to
         give effect to the provisions of this Clause 7 (Subordination on
         insolvency).

                                      -26-
<PAGE>

8.       ENFORCEMENT BY THE SPONSORS

         Until the Discharge Date, unless the Majority Banks have previously
         consented in writing, no Sponsor or Shareholder shall:

         (a)      accelerate any of the Subordinated Debt or otherwise declare
                  any of the Subordinated Debt prematurely payable;

         (b)      enforce the Subordinated Debt by litigation, attachment,
                  set-off, execution or otherwise; or

         (c)      petition for (or vote in favour of any resolution for) or
                  initiate or support or take any steps with a view to any
                  insolvency, liquidation, reorganisation, administration or
                  dissolution proceedings or any voluntary arrangement or
                  assignment for the benefit of creditors or any similar
                  proceedings involving the Borrower, whether by petition,
                  convening a meeting, voting for a resolution or otherwise.

9.       VOTING

         In any of the circumstances mentioned in Clause 7.1 (Insolvency
         events), until the Discharge Date:

         (a)      the Off Shore Facility Agent acting on the instructions of the
                  Majority Banks may (and is hereby irrevocably authorised to)
                  exercise all powers of convening meetings, voting and
                  representation in respect of the Subordinated Debt and each
                  Sponsor and each Shareholder will provide all forms of proxy
                  and of representation requested by the Off Shore Facility
                  Agent for that purpose; and

         (b)      if and to the extent that the Off Shore Facility Agent is not
                  entitled to or does not wish itself to exercise a power
                  conferred by paragraph (a) above, each Sponsor and each
                  Shareholder shall:

                  (i)      exercise such power as the Off Shore Facility Agent
                           acting in accordance with the instructions of the
                           Majority Banks directs; and

                  (ii)     not exercise any power so as to impair the
                           subordination effected by this Agreement.

10.      FUNDING OF SPONSOR CONTRIBUTIONS AND NATURE OF OBLIGATIONS

10.1     SPONSOR CONTRIBUTIONS

         All Sponsor Contributions shall be made as Equity Contributions at all
         times after the Second Amendment Agreement Effective Date and prior to
         such date may also be made as Subordinated Loans. Unless otherwise set
         out herein, the proceeds of all Sponsor Contributions shall be credited
         to a Proceeds and Revenue Account. The proceeds of any Sponsor
         Unsecured Loans

                                      -27-
<PAGE>

         shall be paid into the Loan Proceeds Account and applied in accordance
         with the Facility Agreement. Prior to making such Sponsor
         Contributions, each Sponsor shall inform the Off Shore Facility Agent
         in writing as to whether such payment is an Equity Contribution or a
         Subordinated Loan.

10.2     CONTINUING OBLIGATIONS

         The obligations of each Sponsor and Shareholder under this Agreement:

10.2.1   shall be in addition to and independent of every assurance, guarantee
         or security which any Senior Creditor may at any time hold for any of
         the obligations of the Borrower under the Finance Documents and such
         collateral or other security held by such Senior Creditor, the Off
         Shore Security Agent or the On Shore Security Agent or the liability of
         any person for all or any part of the Borrower's Obligations shall not
         be in any manner prejudiced or affected by this Agreement;

10.2.2   shall remain in full force and effect as a continuing security until
         the indefeasible payment in full of all amounts payable under the
         Finance Documents;

10.2.3   shall inure to the benefit of, and be enforced by, the Off Shore
         Security Agent and its successors, transferees and assigns;

10.2.4   shall be binding on each Sponsor and its successors and assigns; and

10.2.5   shall survive termination of any Transaction Document until the
         Discharge Date.

10.3     NO DEMAND

         Except as provided herein to the contrary the Sponsors' and
         Shareholders' Obligations are not subject to any prior notice to,
         demand upon or action against the Borrower or to any prior notice to
         the Sponsors and/or Shareholders with regard to any default by the
         Borrower.

10.4     PAYMENTS

10.4.1   All payments which the Sponsors and/or Shareholders are required to
         make under this Agreement shall be without any set-off, counterclaim or
         condition.

10.4.2   A certificate of any Senior Creditor or the Off Shore Security Agent
         stating:

         (a)      the amount of the Borrower's Obligations due and payable;

         (b)      any amount due and payable by the Sponsors and/or Shareholders
                  under this Agreement; or

         (c)      the amount of the Borrower's Obligations, whether currently
                  due and payable or not,

         shall be conclusive in the absence of manifest error.

                                      -28-
<PAGE>

10.4.3   If for any reason, a trust in favour of, or a holding of property for,
         the Senior Creditors by a Shareholder or Sponsor under or pursuant to
         this Agreement is invalid or unenforceable, the Shareholder or Sponsor
         in question will, on the Off Shore Security Agent's demand, pay and
         deliver to the Off Shore Security Agent an amount equal to the payment,
         receipt or recovery in cash (or its value, if in kind) which it would
         otherwise have been bound to hold on trust for, or as property of, the
         Senior Creditors.

10.5     APPROPRIATION

10.5.1   Subject to the terms of the Finance Documents, each Senior Creditor may
         apply any amounts received by it hereunder in such manner as it
         determines in its absolute discretion.

10.5.2   If the Sponsors and/or Shareholders at any time pay to any Senior
         Creditor (or the Off Shore Security Agent) an amount less than the full
         amount then due and payable to such Senior Creditor by the Borrower
         under the relevant Finance Document, such Senior Creditor may allocate
         and apply such payment in any way or manner and for such purpose or
         purposes as such Senior Creditor or the Off Shore Security Agent in its
         sole discretion determines, notwithstanding any instruction that the
         Sponsors and/or Shareholders might give to the contrary.

10.5.3   Without prejudice to any part of this Clause 10.5, until the Discharge
         Date, each Senior Creditor (or any trustee, agent or other person
         acting on its behalf) may:

         (a)      refrain from applying or enforcing any other monies, security
                  or rights held or received by such Senior Creditor (or such
                  trustee, agent or other person) in respect of the Borrower's
                  Obligations, or apply and enforce the same in such manner and
                  order as it sees fit (whether against the Borrower's
                  Obligations or otherwise) and the Sponsors and/or Shareholders
                  shall not be entitled to the benefit of the same; and

         (b)      hold and keep for such time as it thinks prudent any monies
                  received, recovered or realised under this Agreement, to the
                  credit either of the Sponsors and/or Shareholders or such
                  other person or persons as it thinks fit or in a suspense
                  account for distribution in accordance with the Finance
                  Documents.

10.6     SURVIVAL OF OBLIGATIONS AND WAIVER OF DEFENCES

         Except as expressly provided herein, the Sponsors' and Shareholders'
         Obligations are irrevocable and unconditional irrespective of, and
         shall not be discharged, affected or impaired by any act, omission,
         circumstance (other than the occurrence of the Discharge Date), matter
         or thing which, but for this provision, would reduce, release or
         prejudice any of its obligations under this Agreement or which might
         otherwise constitute discharge or defence of a surety or a guarantor,
         including (whether or not known to the Borrower, Sponsors, Shareholders
         or any Senior Creditor):

10.6.1   the legality, validity or enforceability of the Borrower's Obligations,
         the Finance Documents or of any security under the Finance Documents,
         or any other document or security;

                                      -29-
<PAGE>

10.6.2   the waiver of or consent by any of the Senior Creditors of any
         provision contained in this Agreement or the other Finance Documents;

10.6.3   the obtaining by any of the Senior Creditors of any judgement against
         the Borrower or any action to enforce such judgement or any other
         circumstance which might constitute a discharge or defence of the
         Sponsors and/or Shareholders;

10.6.4   the avoidability or unenforceability of this Agreement as regards any
         other Sponsor or Shareholder;

10.6.5   any assertion of, or failure to assert, or delay in asserting, any
         right, power or remedy against the Borrower or any other person, or in
         respect of any security for the Borrower's Obligations;

10.6.6   any amendment, variation, change, acceleration, renewal, modification,
         waiver, surrender, compromise, settlement, release, termination or
         replacement of the provisions of any Finance Document or of any other
         agreement or security between any Senior Creditor and the Borrower or
         between any Senior Creditor and any other party in relation to the
         Borrower's Obligations;

10.6.7   any extension of time, forbearance or concession given to the Borrower
         or any other party, or any increase, decrease, change in the manner,
         time or place of payment or calculation or other alteration of the
         Borrower's Obligations or any part thereof;

10.6.8   any taking, holding, reviewing, exchanging, varying, releasing, waiving
         or omitting to take, perfect or enforce any rights, remedies or
         securities against or granted by the Borrower or any other person or
         any non-presentment or non-observance of any formality or other
         requirement in respect of any instruments or any failure to realise the
         full value of any security;

10.6.9   any failure of the Borrower, the Sponsors or the Shareholders to comply
         with any requirement of any law, regulation or order;

10.6.10  the dissolution, liquidation, winding-up, amalgamation, merger,
         reorganisation or other alteration of the legal status or structure of
         the Borrower, any of the Sponsors or Shareholders or any other person
         the filing of any petition for the foregoing or the making of an
         assignment for the benefit of creditors or the appointment of a
         receiver or trustee to all or any significant part of the Borrower's, a
         Sponsor's or a Shareholder's assets;

10.6.11  any purported or actual assignment of all or part of the Borrower's
         Obligations by any Senior Creditor to any other party;

10.6.12  any sale, exchange, release, surrender, realization upon any property
         by whomsoever at any time pledged or mortgaged to secure, or howsoever
         securing, all or any of the Borrower's Obligations, and/or any offset
         thereagainst, or failure to perfect, or continue the perfection of, any
         Security in any such property, or delay in the perfection of any such
         Security, or any amendment or waiver of or consent to departure from
         any other guaranty for all or any of the Borrower's Obligations;

                                      -30-
<PAGE>

10.6.13  any exercise or failure to exercise any rights against the Borrower or
         others (including the Sponsors and the Shareholders);

10.6.14  any settlement or compromise of any of the Borrower's Obligations, any
         security therefor or any liability (including any of those hereunder)
         incurred directly or indirectly in respect thereof or hereof, and any
         subordination of the payment of all or any part thereof to the payment
         of any of the Borrower's Obligations (whether due or not) of the
         Borrower to creditors of the Borrower other than the Sponsors and the
         Shareholders;

10.6.15  any manner of application of collateral, or proceeds thereof, to all or
         any of the Borrower's Obligations, or any manner of sale or other
         disposition of any collateral for all or any of the Borrower's
         Obligations or any other assets of the Borrower or any of its
         subsidiaries; or

10.6.16  any other circumstance howsoever caused or arising and whether or not
         similar to any of the foregoing (other than payment in full of the
         Borrower's Obligations by the Borrower or the Sponsors in accordance
         with the relevant Finance Documents or this Agreement, as the case may
         be) which might otherwise constitute a discharge or defence of a surety
         or a guarantor in whole or in part.

10.7     RIGHTS OF THE SENIOR CREDITORS

         The Senior Creditors may in accordance with the terms of the relevant
         Finance Document:

10.7.1   change, alter, renew, continue, extend and/or accelerate the time of
         payment of, all or any amounts outstanding under the relevant Finance
         Documents, or any part or parts thereof or renewal or renewals thereof;

10.7.2   amend, waive or replace any part of any Finance Document; and

10.7.3   settle or compromise any or all of the indebtedness owed by the
         Borrower under the Finance Documents or subordinate the payment of such
         indebtedness or any part thereof to the payment of any other debts or
         claims which may at any time be due or owing by the Borrower to the
         Senior Creditors;

         all in such manner and upon such terms as the Senior Creditors may see
         fit or be directed in writing and without notice to or consent from any
         of the Sponsors and/or Shareholders, who hereby agree to be and remain
         bound by this Agreement, irrespective of the effect upon the existence
         or status of the Borrower's Obligations.

                                      -31-
<PAGE>

10.8     REINSTATEMENT

         If any payment by the Borrower, a Shareholder or a Sponsor or any
         discharge given by a Senior Creditor (whether in respect of the
         obligations of the Borrower, a Shareholder or a Sponsor or any security
         for any of those obligations or otherwise) is avoided or reduced as a
         result of insolvency or any similar event:

         (a)      the liability of the Borrower, that Shareholder or Sponsor
                  shall continue as if the payment, discharge, avoidance or
                  reduction had not occurred; and

         (b)      each Senior Creditor shall be entitled to recover the value or
                  amount of that security or payment from the Borrower, that
                  Shareholder or Sponsor, as the case may be, as if the payment,
                  discharge, avoidance or reduction had not occurred.

11.      NO SUBROGATION

11.1     If any amounts have become payable or have been paid by a Shareholder
         or a Sponsor under this Agreement or if the Borrower's Obligations are
         wholly or partially paid out of any proceeds received in respect of or
         on account of any Subordinated Debt owing to any Sponsor or
         Shareholder, no Sponsor or Shareholder shall, in respect of such
         monies, seek to enforce repayment, obtain the benefit of any security
         or exercise any other rights or legal remedies of any kind (including,
         without limitation, voting or exercising remedies as a lender) which
         may accrue to the Sponsor or Shareholder against the Borrower by virtue
         of this Agreement, whether by way of subrogation, offset, counterclaim
         or otherwise, in respect of the amount so payable or so paid, except
         after satisfaction in full of all of the Borrower's Obligations and the
         expiration of any and all applicable preference periods during which
         the payments credited to the satisfaction of the Borrower's Obligations
         may be required to be returned to the payor thereof or such person's
         trustee, receiver or other representative.

11.2     The subordination provisions in this Agreement constitute a continuing
         subordination and benefit to the ultimate balance of the Borrower's
         Obligations regardless of any partial payment or discharge of the
         Borrower's Obligations or Subordinated Debt.

12.      WAIVER

12.1     The Sponsors and Shareholders waive:

12.1.1   notice of any rescheduling of the Borrower's Obligations and of any
         change in the rate at which any of the Borrower's Obligations are
         accruing interest or fees;

12.1.2   promptness, diligence, nature of acceptance or any other notice with
         respect to this Agreement;

12.1.3   diligence, presentment and demand for payment of any of the Borrower's
         Obligations;

12.1.4   protest, notice of protest, notice of dishonour and notice of
         non-payment or default to the Shareholders and/or Sponsors or to any
         other person with respect to the Borrower's Obligations;

                                      -32-
<PAGE>

12.1.5   filings of claims or proof of claims with a court in the event of any
         bankruptcy or insolvency proceedings as to which the Borrower is
         subject;

12.1.6   any right to require a proceeding or judgement first against the
         Borrower or any other persons or to require any Senior Creditor, the On
         Shore Security Agent or the Off Shore Security Agent to proceed against
         or enforce any other rights or security or claim payment from any
         person before claiming from the Sponsors or Shareholders under this
         Agreement;

12.1.7   any defences available to a surety under law; and

12.1.8   all other legally waivable notices, defences and benefits (other than
         payment in full of the Borrower's Obligations by the Borrower or the
         Sponsors in accordance with the relevant Finance Documents or this
         Agreement, as the case may be) to which the Sponsors or Shareholders
         might otherwise be entitled.

13.      CONSENTS

13.1     NEW TRANSACTIONS

         No Sponsor or Shareholder shall have any remedy against the Borrower or
         any of the Senior Creditors by reason of any transaction entered into
         between the Senior Creditors (or any of them) or the Agents or the
         Security Agents on their behalf and the Borrower relating to the
         Borrower's Obligations or otherwise which violates or is a default
         under any Subordinated Debt Document. No Sponsor or Shareholder may
         object to any such transaction by reason of any provisions of any
         Subordinated Debt Document.

13.2     OVERRIDE

         Any waiver or consent granted by an Agent, Security Agent or the
         Majority Banks under the Finance Documents will also be deemed to have
         been given by each Sponsor and Shareholder (each in its capacity as
         such) if and to the extent that any transaction or circumstances would,
         in the absence of such waiver or consent by any Sponsor or Shareholder,
         violate the terms of any Subordinated Loan or the terms of any
         Subordinated Debt Document or constitute a default thereunder.

14.      CONFLICT

         Notwithstanding any other provision of any other Transaction Document,
         the Shareholders and Sponsors agree that the terms of this Agreement
         shall, without prejudice to the rights of the Senior Creditors under
         this or any other Transaction Document, prevail over the rights of the
         Shareholders and Sponsors under any other Transaction Document
         (excluding the Shareholders Pledge Agreement, the provisions of which
         shall prevail in case of any conflicts between the Shareholders Pledge
         Agreement and this Agreement).

                                      -33-
<PAGE>

15.      PRESERVATION OF SUBORDINATED DEBT

         Notwithstanding any term of this Agreement postponing, subordinating or
         preventing the payment of any of the Subordinated Debt, the
         Subordinated Debt concerned shall solely as between the Borrower and
         the Sponsor be treated as remaining due in accordance with the terms of
         the relevant Subordinated Debt Document for the purpose of accruing
         interest thereon (if applicable) pursuant to the relevant Subordinated
         Debt Document. No delay in exercising rights and remedies under any
         relevant Subordinated Debt Document by reason of any term of this
         Agreement postponing, restricting or preventing such exercise shall
         operate as a waiver of any of those rights and remedies.

16.      TAXES

16.1     PAYMENT AND GROSS UP

         All payments by a Sponsor or Shareholder under this Agreement shall be
         made without any deduction or withholding on account of any taxes
         unless that Sponsor or Shareholder is required by law to make such
         deduction or withholding, in which case the Sponsor or Shareholder
         shall:

16.1.1   ensure that the deduction or withholding does not exceed the minimum
         amount legally required; and

16.1.2   forthwith pay such additional amounts so as to ensure that the amount
         received by the recipient will equal the full amount which would have
         been made.

16.2     RECEIPTS

         If Clause 16.1 (Payment and gross up) applies and the relevant
         recipient so requires, the Sponsor or Shareholder shall deliver to such
         recipient official tax receipts evidencing payment (or certified copies
         of thereof) within thirty (30) days of the date of payment or receipt
         of such tax receipts (whichever is later).

16.3     STAMP DUTIES ETC

         The Sponsors shall pay all stamp, recording or similar taxes payable in
         respect of the execution, delivery and enforcement of this Agreement
         promptly when due.

16.4     TAX INDEMNITY

         If any Senior Creditor is obliged to make any payment on account of
         taxes referred to in Clause 16.1 (Payment and gross up) or if any other
         additional tax burdens occur in connection with this Agreement the
         Sponsors on a joint and several basis shall indemnify such Senior
         Creditor from any payment on account of such taxes.

17.      INDEMNITIES

17.1     CURRENCY INDEMNITY

         If any sum due from a Sponsor or a Shareholder under this Agreement or
         under any order or judgement given or made in relation hereto has to be
         converted from the currency (the "FIRST

                                      -34-
<PAGE>

         CURRENCY") in which the same is payable under this Agreement or under
         such order or judgement into another currency (the "SECOND CURRENCY")
         for the purpose of:

17.1.1   making or filing a claim or proof against such Sponsor or Shareholder;
         or

17.1.2   obtaining an order of judgement given or made in relation hereto,

         the Sponsor or Shareholder shall on demand of the Off Shore Facility
         Agent pay to the Off Shore Facility Agent (or such person as the Off
         Shore Facility Agent may nominate) for account of each of the persons
         to whom such sum is owed an amount sufficient to indemnify such person
         from and against any loss suffered as a result of any discrepancy
         between:

         (a)      the rate of exchange used for such purpose to convert the sum
                  in question from the first currency into the second currency;
                  and

         (b)      the rate of exchange at which such person may in the ordinary
                  course of business purchase the first currency with the second
                  currency upon receipt of a sum paid to it in satisfaction, in
                  whole or in part, of any such order, judgement, claim or
                  proof.

         The obligations of each Sponsor and Shareholder under this Clause 17.1
         are separate from its other obligations under this Agreement and shall
         survive the giving or making of any judgement or order in relation to
         all or any of such other obligations.

17.2     PRESERVATION AND ENFORCEMENT RIGHTS

         The Sponsors and Shareholders shall from time to time on demand of the
         Off Shore Facility Agent reimburse the Senior Creditors for all
         reasonable out of pocket costs and expenses (including legal fees) on a
         full indemnity basis together with any VAT thereon incurred by them in
         connection with the preservation and/or enforcement of any of the
         rights of the Senior Creditors under this Agreement.

18.      SUCCESSORS, ASSIGNMENTS AND TRANSFERS

18.1     SUCCESSORS AND ASSIGNS

         This Agreement binds and benefits the respective successors and assigns
         of its parties.

18.2     ASSIGNMENTS AND TRANSFERS BY THE SPONSORS AND SHAREHOLDERS

         The Sponsors and Shareholders shall not without prior written approval
         by the Majority Banks assign or transfer all or any of their rights,
         benefits and obligations under this Agreement other than in accordance
         with the terms hereof.

18.3     ASSIGNMENTS AND TRANSFERS BY THE SENIOR CREDITORS

         Each of the Senior Creditors may at any time assign all its rights and
         benefits under this Agreement or transfer its rights and obligations
         under this Agreement in whole or in part to any other bank or financial
         institution in accordance with the Facility Agreement.

                                      -35-
<PAGE>

19.      POWER OF ATTORNEY

19.1     By way of security for the obligations of each Sponsor and Shareholder
         under this Agreement, each Sponsor and Shareholder irrevocably appoints
         each Senior Creditor as its attorney to do anything which that Sponsor
         or Shareholder (a) has authorised that Senior Creditor to do under this
         Agreement and (b) is required and legally able to do by this Agreement
         but has failed to do for a period of ten (10) Business Days after
         receiving notice from the Senior Creditor requiring it to do so. Each
         Senior Creditor may delegate this power.

19.2     Each Sponsor and Shareholder further agrees to execute or procure the
         execution of and deliver to the Off Shore Security Agent such other
         powers of attorney, assignments or other instruments as may be
         requested by the Off Shore Security Agent in order to enable it to
         enforce any and all claims of the Secured Creditors upon or with
         respect to the Subordinated Debt or any part thereof and to collect and
         receive any and all payments or distributions which may be payable or
         deliverable to the Off Shore Security Agent at any time upon or with
         respect to the Subordinated Debt or any part thereof.

20.      REMEDIES AND WAIVERS, CUMULATIVE RIGHTS, PARTIAL INVALIDITY

20.1     REMEDIES AND WAIVER

         No failure to exercise, nor any delay in exercising, on the part of the
         Senior Creditors, any right or remedy under any Transaction Document
         shall operate as a waiver thereof, nor shall any single or partial
         exercise of any right or remedy prevent any further or other exercise
         thereof or the exercise of any other right or remedy.

20.2     OBLIGATIONS

         Notwithstanding anything to the contrary in this Agreement, in no event
         shall the obligations of the Sponsors and Shareholders under other
         Transaction Documents be deemed to limit the obligations of the
         Sponsors and Shareholders under this Agreement.

20.3     CUMULATIVE RIGHTS

         The rights and remedies provided in this Agreement are cumulative and
         not exclusive of any other rights and remedies provided in the Finance
         Documents or by law.

20.4     PARTIAL INVALIDITY

         Should any provision of this Agreement be invalid or unenforceable, in
         whole or in part, or should any provision later become invalid or
         unenforceable, this shall not affect the validity of the remaining
         provisions of this Agreement. In lieu of the invalid or unenforceable
         provision another reasonable provision shall apply, which as far as
         legally possible comes as close as possible to the intention of the
         contracting parties, or to what would have been their intention, in
         correspondence with the spirit and the purpose of this Agreement, had
         the Parties upon entering into this Agreement taken into consideration
         the invalidity or unenforceability of the respective provision.

                                      -36-
<PAGE>

21.      RIGHTS OF THE BORROWER

         (a)      The Borrower shall not have any rights hereunder and none of
                  the undertakings herein contained on the part of the Senior
                  Creditors or the Sponsors are given (or shall be deemed to
                  have been given) to, or for the benefit of, the Borrower.

         (b)      The Borrower joins in this Agreement for the purpose of
                  acknowledging the priorities, rights and obligations recorded
                  in this Agreement and undertakes with each of the other
                  parties hereto to observe the provisions of this Agreement at
                  all times and not in any way to prejudice or affect the
                  enforcement of such provisions or do or suffer anything which
                  would be inconsistent with the terms of this Agreement.

22.      OTHER INFORMATION

         The Borrower authorises the Sponsors and Shareholders, and the Sponsors
         and the Shareholders authorise each of the Agents, the Security Agents
         and the Senior Creditors to disclose to and amongst themselves all
         information relating to the Borrower and all other information coming
         into the possession of any of them in connection with any of the
         Finance Documents and the Subordinated Debt Documents.

23.      UMTS REBATE

         Notwithstanding any provision of this Agreement, if, in accordance with
         Clause 24.33(b)(iv) (UMTS and other licences) of the Facility
         Agreement, the UMTS Subsidiary sells its UMTS license on a commercial
         arm's length terms basis then, unless an Event of Default has occurred
         and is continuing, the Borrower shall be entitled to remit to the
         Shareholders the proceeds of sale thereof.

24.      OVERSEAS RANKING

         All of the parties hereto undertake to take all action which can
         reasonably be taken by them in order that the intentions of the parties
         (solely as expressed in this Agreement) as to the relative ranking of
         priorities as between the Borrower's Obligations and the Subordinated
         Debt shall be given effect to in all relevant jurisdictions.

25.      NOTICES

25.1     COMMUNICATIONS IN WRITING

         Any communication, demand or notice to be made under or in connection
         with this Agreement shall be made in writing and, unless otherwise
         stated, may be made by fax or letter.

25.2     ADDRESSES

         The address and fax number (and the department or officer, if any, for
         whose attention the communication is to be made) of each Party for any
         communication or document to be made or delivered under or in
         connection with this Agreement is:

                                      -37-
<PAGE>

         (a)      in the case of the Borrower:

                  WESTERN WIRELESS INTERNATIONAL D.O.O.

                  Address:      Brnciceva ulica 49
                                1231 Ljubljana
                                Slovenia

                  Telephone:    +386 1 5801 200
                  Fax:          +386 1 5801 109
                  Attention of: Steven Fast
                  Copy to:      Western Wireless International Corporation

         (b)      in the case of the Borrower's process agent:

                  CORPORATION SERVICE COMPANY

                  Address:      1177 Avenue of the Americas
                                17th Floor
                                New York, NY 10036-2721
                                USA

                  Telephone:    +1 212 299 9100
                  Fax:          +1 212 299 9102

         (c)      in the case of the Off Shore Facility Agent and the Banks:

                  IKB DEUTSCHE INDUSTRIEBANK AG

                  Address:      Wilhelm-Botzkes-Stra(ss)e 1
                                40474 Dusseldorf
                                Germany

                  Telephone:    +49 211 8221 4887 or +49 211 8221 4193
                  Fax:          +49 211 8221 2887 or +49 211 8221 2193
                  Attention of: Martina Messing or Dr. Peer Gunzel, Structured
                                Finance Department

                                      -38-
<PAGE>

         (d)      in the case of the Sponsors and the Shareholders:

                  WESTERN WIRELESS INTERNATIONAL CORPORATION

                  Address:      3650 131st Avenue, S.E, Suite 400
                                Bellevue, Washington 98006
                                USA

                  Telephone:    +1 425 586 8700
                  Fax:          +1 425 586 8777
                  Attention of: Scott Alderman

         or any substitute address, fax number or department or officer as the
         relevant party may notify to the Off Shore Facility Agent (or the Off
         Shore Facility Agent may notify to the other Parties, if a change is
         made by the Off Shore Facility Agent) by not less than five (5)
         Business Days' notice.

25.3     DELIVERY

         (a)      Any communication or document made or delivered by one person
                  to another under or in connection with this Agreement will
                  only be effective:

                  (i)      if by way of fax, when received in legible form; or

                  (ii)     if by way of letter, when it has been left at the
                           relevant address or three (3) Business Days after
                           being deposited with a reputable overnight courier
                           service,

                  and if a particular department or officer is specified as part
                  of its address details provided under Clause 25.2 (Addresses),
                  if addressed to that department or officer.

         (b)      Any communication or document to be made or delivered to the
                  Off Shore Facility Agent will be effective only when actually
                  received by the Off Shore Facility Agent and then only if it
                  is expressly marked for the attention of the department or
                  officer identified with the Off Shore Facility Agent's
                  signature below (or any substitute department or officer as
                  the Off Shore Facility Agent shall specify for this purpose).

         (c)      All notices from or to the Borrower shall be sent through the
                  Off Shore Facility Agent.

25.4     NOTIFICATION OF ADDRESS AND FAX NUMBER

         Promptly upon receipt of notification of an address or fax number or
         change of address or fax number pursuant to Clause 25.2 (Addresses) or
         changing its own address or fax number, the Off Shore Facility Agent
         shall notify the other Parties.

25.5     ENGLISH LANGUAGE

         Any notice given under or in connection with this Agreement shall be in
         English.

                                      -39-
<PAGE>

26.      COUNTERPARTS

         This Agreement may be executed in any number of counterparts, all of
         which taken together constitute one and the same instrument.

27.      AMENDMENTS

         Any amendment of any provision of this Agreement shall be in writing
         and signed by the Borrower, each of the Sponsors and Shareholders, and
         the Off Shore Security Agent (on behalf of the Majority Banks).

28.      GOVERNING LAW

         This Agreement shall be construed in accordance with and governed by
         the law of the State of New York, without reference to principles of
         choice of law thereof (other than sections 5-1401 and 5-1402 of the
         General Obligations Law of the State of New York).

29.      JURISDICTION; CONSENT TO SERVICE OF PROCESS; WAIVER OF JURY TRIAL

29.1     Each Shareholder, Sponsor and the Borrower irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of the Supreme Court of the State of New York
         sitting in New York County and of the United States District Court of
         the Southern District of New York, and any relevant appellate court, in
         any action or proceeding arising out of or relating to any Finance
         Document, or for recognition or enforcement of any judgement, and each
         Party irrevocably and unconditionally agrees that all claims in respect
         of any such action or proceeding may be heard and determined in such
         New York State court or, to the extent permitted by law, in such
         Federal court. Each Party agrees that a final judgement in any such
         action or proceeding shall be conclusive and may be enforced in other
         jurisdictions by suit on the judgement or in any other manner provided
         by law. Nothing in any Finance Document shall affect any right that any
         Senior Creditor may otherwise have to bring any action or proceeding
         relating to any Finance Document against any party thereto or its
         properties in the courts of any jurisdiction.

29.2     Each Shareholder, Sponsor and the Borrower irrevocably and
         unconditionally waives, to the fullest extent it may legally and
         effectively do so, any objection that it may now or hereafter have to
         the laying of venue of any suit, action or proceeding arising out of or
         relating to any Finance Document in any court referred to in Clause
         29.1 (Jurisdiction; consent to service of process; waiver of jury
         trial). Each Party irrevocably waives, to the fullest extent permitted
         by law, the defense of an inconvenient forum to the maintenance of any
         such suit, action or proceeding in any such court.

29.3     EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
         LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
         DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY FINANCE
         DOCUMENT OR ANY TRANSACTION CONTEMPLATED THEREBY (WHETHER BASED ON
         CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY

                                      -40-
<PAGE>

         HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
         OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
         PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
         FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
         HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
         THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS CLAUSE 29.3.

30.      SERVICE OF PROCESS

30.1     Each Sponsor, Shareholder and the Borrower irrevocably appoints the
         parties (each such party, a "PROCESS AGENT") listed by its name in
         Schedule 4 (Process Agents) as its authorized agent on which any and
         all legal process may be served in any such action, suit or proceeding
         brought in the Supreme Court of the State of New York sitting in New
         York County and of the United States District Court of the Southern
         District of New York, and any relevant appellate court.

30.2     Each Sponsor, Shareholder and the Borrower agrees that service of
         process in respect of it upon its Process Agent, together with written
         notice of such service given to it in the manner provided in Clause 25
         (Notices), shall be deemed to be effective service of process upon it
         in any such action, suit or proceeding. Each Sponsor, Shareholder and
         the Borrower agrees that the failure of its Process Agent to give
         notice to it of any such service shall not impair or affect the
         validity of such service or any judgement rendered in any such action,
         suit or proceeding based thereon. If for any reason a Process Agent
         shall cease to be available to act as such, the relevant Sponsor,
         Shareholder or the Borrower, as the case may be, agrees to irrevocably
         appoint another such agent in New York City, as its authorized agent
         for service of process, on the terms and for the purposes of this
         Clause 30. Nothing herein shall in any way be deemed to limit the
         ability of any Senior Creditor to serve any such legal process in any
         other manner permitted by applicable law or to obtain jurisdiction over
         any Sponsor, Shareholder or the Borrower or bring actions, suits or
         proceedings against such party in such other jurisdiction, and in such
         manner, as may be permitted by applicable law.

31.      WAIVER OF IMMUNITY

         Each Shareholder, Sponsor and the Borrower waives generally any
         immunity it or its assets or revenues may otherwise have in any
         jurisdiction, including immunity in respect of:

31.1.1   the giving of any relief by way of injunction or order for specific
         performance or for the recovery of assets or revenues; and

31.1.2   the issue of any process against its assets or revenues for the
         enforcement of a judgement or, in an action in rem, for the arrest,
         detention or sale of any of its assets and revenues,

                                      -41-
<PAGE>

         and agrees that in any Proceeding in the County of New York this waiver
         shall have the fullest scope permitted by the United States Sovereign
         Immunities Act 1976 and that this waiver is intended to be irrevocable
         for the purposes of such Act.

32.      EXPENSES

32.1     The Sponsors shall on a joint and several basis, pay or reimburse each
         Senior Creditor (to the extent reimbursement has not already been made
         by the Borrower upon receipt of notice thereof) for all out of pocket
         expenses, including fees and expenses of its legal counsel and any
         value added Tax or similar Tax, incurred by the Senior Creditors in
         connection with the performance, enforcement or protection or attempted
         enforcement or protection of its rights under this Agreement.

33.      ENTIRE AGREEMENT

         This Agreement constitutes the entire agreement between the Parties and
         replaces and supersedes all prior agreements, memoranda,
         correspondence, communications, negotiations and representations,
         whether oral or written, express or implied, statutory or otherwise
         between the Parties.

                                      -42-
<PAGE>

                                   SCHEDULE 1

                                 PROCESS AGENTS

(A)      The Borrower appoints as its Process Agent for Germany

         FIDEUROP TREUHANDGESELLSCHAFT FUR DEN GEMEINSAMEN MARKT MBH

         Address:      Marie-Curie Stra(ss)e 30
                       60439 Frankfurt am Main, Germany

         Telephone:    +49 69 95 870
         Fax:          +49 69 95 87 2584

         Attention of: Dr. Klaus Zimmerman

(B)      The Borrower appoints as its Process Agent for the United States of
         America

         CORPORATION SERVICE COMPANY

         Address:   1177 Avenue of the Americas
                    17th Floor, New York, N.Y.
                    10036-2721, U.S.A.

         Telephone: +1 212 299 9100
         Fax:       +1 212 299 9102

(C)      The Borrower appoints as its Process Agent for England and Wales

         LAW DEBENTURE CORPORATE SERVICES LIMITED

         Address:   Fifth floor
                    100 Wood Street
                    London, EC2V 7EX
                    England

         Telephone: +44 20 7696 5242
         Fax:       +44 20 7696 5262

                                      -43-
<PAGE>

         SIGNATURE PAGE OF THE SECOND AMENDMENT AND RESTATEMENT OF THE
        SPONSORS' AND SHAREHOLDERS' UNDERTAKING AND COMPLETION GUARANTEE

THE BORROWER

WESTERN WIRELESS INTERNATIONAL D.O.O.

By:                             By:

Name:                           Name:
Title:                          Title:

Address:      Brnciceva ulica 49, 1231 Ljubljana, Slovenia
Telephone:    +386 1 5801 200
Fax:          +386 1 5801 011
Attention of: Steven Fast

OFF SHORE SECURITY AGENT AND OFF SHORE FACILITY AGENT

IKB DEUTSCHE INDUSTRIEBANK AG

By:                             By:

Name:                           Name:
Title:                          Title:

Address:      Wilhelm-Botzkes-Stra(ss)e 1, 40474 Dusseldorf, Germany
Telephone:    +49 211 8221 4887 or +49 211 8221 4730
Fax:          +49 211 8221 2887 or +49 211 8221 2730
Attention of: Martina Messing or Dr. Peer Gunzel, Structured Finance Department

<PAGE>

         SIGNATURE PAGE OF THE SECOND AMENDMENT AND RESTATEMENT OF THE
        SPONSORS' AND SHAREHOLDERS' UNDERTAKING AND COMPLETION GUARANTEE

THE SPONSORS

WESTERN WIRELESS INTERNATIONAL CORPORATION

By:                             By:

Name:                           Name:
Title:                          Title:

Address:      3650 131st Avenue, S.E., Suite 400, Bellevue, Washington 98006,
              USA
Telephone:    +1 425 586 8161
Fax:          +1 425 586 8777
Attention of: Scott Alderman

WESTERN WIRELESS INTERNATIONAL SLOVENIA CORPORATION

By:                             By:

Name:                           Name:
Title:                          Title:

Address:      3650 131st Avenue, S.E., Suite 400, Bellevue, Washington 98006,
              USA
Telephone:    +1 425 586 8161
Fax:          +1 425 586 8777
Attention of: Scott Alderman

<PAGE>

         SIGNATURE PAGE OF THE SECOND AMENDMENT AND RESTATEMENT OF THE
        SPONSORS' AND SHAREHOLDERS' UNDERTAKING AND COMPLETION GUARANTEE

WESTERN WIRELESS INTERNATIONAL SLOVENIA II CORPORATION

By:                             By:

Name:                           Name:
Title:                          Title:

Address:      3650 131st Avenue, S.E., Suite 400, Bellevue, Washington 98006,
              USA
Telephone:    +1 425 586 8161
Fax:          +1 425 586 8777
Attention of: Scott Aldermanexv10w29

 

EXHIBIT 10.29

WATER’S EDGE

LOS ANGELES, CALIFORNIA

OFFICE LEASE

PLAYA VISTA — WATER’S EDGE, LLC,

a Delaware limited liability company,

as Landlord,

and

ELECTRONIC ARTS INC.,

a Delaware corporation,

as Tenant.

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	 	
EOP Matter ID No. 7467

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	

	ARTICLE 1	 	
PREMISES, BUILDING, PROJECT, AND COMMON AREAS
	 	 	1	 
	ARTICLE 2	 	
LEASE TERM
	 	 	5	 
	ARTICLE 3	 	
BASE RENT
	 	 	12	 
	ARTICLE 4	 	
ADDITIONAL RENT
	 	 	12	 
	ARTICLE 5	 	
USE OF PREMISES
	 	 	27	 
	ARTICLE 6	 	
SERVICES AND UTILITIES
	 	 	29	 
	ARTICLE 7	 	
REPAIRS
	 	 	35	 
	ARTICLE 8	 	
ADDITIONS AND ALTERATIONS
	 	 	37	 
	ARTICLE 9	 	
COVENANT AGAINST LIENS
	 	 	41	 
	ARTICLE 10	 	
INSURANCE
	 	 	41	 
	ARTICLE 11	 	
DAMAGE AND DESTRUCTION
	 	 	46	 
	ARTICLE 12	 	
NON-WAIVER
	 	 	50	 
	ARTICLE 13	 	
CONDEMNATION
	 	 	50	 
	ARTICLE 14	 	
ASSIGNMENT AND SUBLETTING
	 	 	51	 
	ARTICLE 15	 	
SURRENDER OF PREMISES; REMOVAL OF TRADE FIXTURES
	 	 	55	 
	ARTICLE 16	 	
HOLDING OVER
	 	 	56	 
	ARTICLE 17	 	
ESTOPPEL CERTIFICATES
	 	 	57	 
	ARTICLE 18	 	
SUBORDINATION
	 	 	57	 
	ARTICLE 19	 	
DEFAULTS; REMEDIES
	 	 	58	 
	ARTICLE 20	 	
ATTORNEYS’ FEES
	 	 	63	 
	ARTICLE 21	 	
LANDLORD’S RIGHT TO CONSTRUCT BUILDING 3
	 	 	63	 
	ARTICLE 22	 	
INTENTIONALLY OMITTED
	 	 	66	 
	ARTICLE 23	 	
SIGNS
	 	 	66	 
	ARTICLE 24	 	
COMPLIANCE WITH LAW
	 	 	68	 

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	(i)	
EOP Matter ID No. 7467

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	

	ARTICLE 25	 	
LATE CHARGES
	 	 	69	 
	ARTICLE 26	 	
LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT
	 	 	70	 
	ARTICLE 27	 	
ENTRY BY LANDLORD
	 	 	70	 
	ARTICLE 28	 	
TENANT PARKING
	 	 	71	 
	ARTICLE 29	 	
MISCELLANEOUS PROVISIONS
	 	 	75	 

	 	 	 
	EXHIBITS	 	 
	
	 	 
	A	 	
OUTLINE OF PREMISES
	A-1	 	
SITE PLAN
	A-2	 	
BUILDING 3 LOCATION LIMITATION (WHEN AND IF BUILDING 3 IS CONSTRUCTED)
	A-3	 	
OUTLINE OF LANDLORD STAGING AREA (DURING CONSTRUCTION OF BUILDING 3)
	B	 	
RULES AND REGULATIONS
	C	 	
NOTICE OF LEASE TERM DATES
	D	 	
TENANT WORK LETTER
	E	 	
FORM OF TENANT’S ESTOPPEL CERTIFICATE
	F	 	
PRE-APPROVE SIGNAGE LOCATIONS
	G	 	
FORM OF TELECOMMUNICATION AGREEMENT
	H	 	
OUTLINE OF FIELD (PRIOR TO CONSTRUCTION OF BUILDING 3)
	H-1	 	
OUTLINE OF FIELD (FOLLOWING CONSTRUCTION OF BUILDING 3)
	I	 	
INTENTIONALLY DELETED
	J	 	
FORM OF MEMORANDUM OF LEASE
	K	 	
FORM OF RECOGNITION OF AMENDMENT TO COVENANTS, CONDITIONS AND RESTRICTIONS
	L	 	
INTENTIONALLY DELETED
	M	 	
HVAC SPECIFICATIONS
	N	 	
JANITORIAL SPECIFICATIONS

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	(ii)	
EOP Matter ID No. 7467

 

 

INDEX

	 	 	 	 
	 	 	 	Page(s)
	 	 	 	

	AAA
	 	 	84
	Abatement Event
	 	 	60
	Abatement Event Termination Date
	 	 	61
	Abatement Event Termination Notice
	 	 	61
	Actual Cost
	 	 	33
	ADA
	 	 	69
	Additional Capped Expenses
	 	 	20
	Additional Rent
	 	 	12
	Advocate Arbitrators
	 	 	10
	Affiliate
	 	 	54
	Aisle Parking Cap
	 	 	73
	Alterations
	 	 	37
	Analysis Period
	 	 	6
	Applicable Laws
	 	 	68
	Applicable Reassessment
	 	 	26
	Approved Construction Drawings
	 	 	Exhibit D
	Arbitration Award
	 	 	84
	Arbitration Notice
	 	 	84
	Arbitrator
	 	 	84
	Architect
	 	 	Exhibit D
	Award
	 	 	10
	Bank
	 	 	62
	Base Building
	 	 	39
	Base Parking Personnel
	 	 	74
	Base Rent
	 	 	12
	Brokers
	 	 	79
	BS/BS Exception
	 	 	35
	Building
	 	 	2
	Building 1
	 	 	2
	Building 2
	 	 	2
	Building 3
	 	 	1
	Building 3 Construction Period
	 	 	63
	Building 3 Monument
	 	 	67
	Building 3 Project
	 	 	63
	Building Signage
	 	 	66
	Building Structure
	 	 	35
	Building Systems
	 	 	35
	Buildings
	 	 	2
	Business Affiliate
	 	 	55
	Business Hours
	 	 	29
	Card Key System
	 	 	31
	Casualty Termination Notice
	 	 	49
	Claims
	 	 	42
	Code
	 	 	Exhibit D

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	(i)	
EOP Matter ID No. 7467

 

 

	 	 	 	 
	 	 	 	Page(s)
	 	 	 	

	Commencement Date Delay
	 	 	Exhibit D
	Common Area Allowance
	 	 	Exhibit D
	Common Area Alterations
	 	 	37
	Common Area Improvements
	 	 	Exhibit D. Exhibit D
	Common Areas
	 	 	2
	Common Use Area Improvements
	 	 	4
	Comparable Buildings
	 	 	4
	Comparable Transactions
	 	 	11
	Connections
	 	 	Exhibit J
	Consent
	 	 	Exhibit D
	Construction Drawings
	 	 	Exhibit D
	Contract
	 	 	Exhibit D
	Contractor
	 	 	Exhibit D
	Coordination Fee
	 	 	Exhibit D
	Cosmetic Alterations
	 	 	37
	Cresa Partner’s Agreement
	 	 	79
	Cresa Partner’s Commission
	 	 	79
	Damage Termination Date
	 	 	48
	Damage Termination Notice
	 	 	48
	Default
	 	 	58
	Delay Notice
	 	 	Exhibit D
	Design Problem
	 	 	37
	Designation Notice
	 	 	Exhibit J
	Direct Expenses
	 	 	13
	Directional Signage
	 	 	66
	Disability Codes
	 	 	69
	Downtime Start Date
	 	 	53
	Drawing Change Notice
	 	 	Exhibit D
	Early Rent
	 	 	6
	Earthquake Coverage
	 	 	43
	Eligibility Period
	 	 	61
	Engineers
	 	 	Exhibit D
	Environmental Claims
	 	 	80
	Environmental Laws
	 	 	80
	EOP Member
	 	 	30
	Estimate
	 	 	21
	Estimate Statement
	 	 	21
	Estimated Expenses
	 	 	21
	Excepted Matters
	 	 	85
	Excess Cards
	 	 	6
	Excess Visitors
	 	 	74
	Exercise Interest Notice
	 	 	9
	Exercise Notice
	 	 	9
	Existing Parking Garage
	 	 	73
	Expense Year
	 	 	13

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	(ii)	
EOP Matter ID No. 7467

 

 

	 	 	 	 
	 	 	 	Page(s)
	 	 	 	

	Exterior Signage
	 	 	67
	Fair Market Rental Rate
	 	 	11
	Fence
	 	 	3
	Fence Allowance
	 	 	Exhibit D
	Field Re-Construction
	 	 	64
	Field Re-Construction Allowance
	 	 	65
	Final Space Plan
	 	 	Exhibit D
	First Analysis Period
	 	 	7
	Force Majeure
	 	 	77
	Full Access Cards
	 	 	6
	Furniture
	 	 	4
	Generator
	 	 	86
	Hazardous Material(s)
	 	 	80
	HVAC
	 	 	29
	HVAC Standards
	 	 	34
	HVAC Units
	 	 	34
	HVAC Upgrade Costs
	 	 	34
	Indoor Air Quality Standard
	 	 	29
	Insurance Reduction Notice
	 	 	43
	Interest Rate
	 	 	15
	JAMS
	 	 	84
	Landlord
	 	 	1
	Landlord Affiliate
	 	 	26
	Landlord Caused Delay
	 	 	Exhibit D
	Landlord Compliance Conditions
	 	 	69
	Landlord Contribution
	 	 	48
	Landlord Member
	 	 	26
	Landlord Parties
	 	 	41
	Landlord Repair Notice
	 	 	46
	Landlord Staging Area
	 	 	64
	Landlord’s TI Proceeds
	 	 	45
	Lease
	 	 	1
	Lease Commencement Date
	 	 	5
	Lease Expiration Date
	 	 	5
	Lease Term
	 	 	5
	Lease Year
	 	 	5
	Lien Holder
	 	 	58
	Management Staff Limitation
	 	 	14
	Material Default
	 	 	9
	Maximum Parking Allotment
	 	 	8
	Memorandum
	 	 	1
	Memorandum of Lease
	 	 	76
	Minimum Parking Allotment
	 	 	8
	Monetary Default
	 	 	58
	Monthly Valet Allowance
	 	 	74

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	(iii)	
EOP Matter ID No. 7467

 

 

	 	 	 	 
	 	 	 	Page(s)
	 	 	 	

	Monument Signs
	 	 	67
	Neutral Arbitrator
	 	 	10
	Neutral Engineer
	 	 	34
	New Parking Garage
	 	 	73
	Non-Abatement Events
	 	 	62
	Non-Contribution Items
	 	 	Exhibit D
	Non-Disturbance Agreement
	 	 	57
	Notice of Exercise
	 	 	Exhibit J
	Notice of Lease Term Dates
	 	 	6
	Notices
	 	 	78
	number of days
	 	 	Exhibit D
	Objectionable Name
	 	 	68
	Operating Expenses
	 	 	13
	Option Rent
	 	 	9
	Option Rent Notice
	 	 	9
	Option Term
	 	 	8
	Option Term TI Allowance
	 	 	11
	Option to Extend
	 	 	2
	Other Items
	 	 	Exhibit D
	Outside Agreement Date
	 	 	9
	Overlap Period
	 	 	61
	Patio
	 	 	4
	Permits
	 	 	Exhibit D
	Playa Capital
	 	 	54
	Playa Capital Sublease
	 	 	54
	Pre-Existing Hazardous Materials
	 	 	80
	Premises
	 	 	1
	Prevailing Party
	 	 	84
	Project
	 	 	1
	Project Name
	 	 	67
	Proposition 13
	 	 	19
	Proposition 13 Protection Amount
	 	 	26
	Proposition 13 Purchase Price
	 	 	26
	Protected Expenses
	 	 	22
	Purchase Option Agreement
	 	 	77
	Reassessment
	 	 	25
	Remediation Program
	 	 	81
	Removal Designation Reminder
	 	 	40
	Rent
	 	 	12
	Requesting Party
	 	 	57
	Review Period
	 	 	51
	Reviewed Expense Statement
	 	 	22
	Reviewed Expenses
	 	 	22
	Reviewed Expenses Threshold
	 	 	22
	Revised Completion Date
	 	 	49

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	(iv)	
EOP Matter ID No. 7467

 

 

	 	 	 	 
	 	 	 	Page(s)
	 	 	 	

	Revised Completion Date Notice
	 	 	49
	Roof Location
	 	 	86
	Sale
	 	 	25
	Second Analysis Period
	 	 	7
	Secured Areas
	 	 	71
	Special Use Areas
	 	 	4
	Stairs
	 	 	4
	Statement
	 	 	20
	Stipulated Rates Cutoff Date
	 	 	73
	Storage Space
	 	 	87
	Subject Space
	 	 	51
	Subleasing Costs
	 	 	53
	Submittal Date
	 	 	Exhibit D
	Substantial Completion
	 	 	Exhibit D
	Summary
	 	 	1
	Supplemental Statement
	 	 	21
	Supplemental TI Allowance
	 	 	8
	Surface Parking Lot
	 	 	73
	Tax Expenses
	 	 	18
	Tax Increase
	 	 	25
	Tax Notice
	 	 	25
	Techtonics
	 	 	Exhibit D
	Telecommunication Devices
	 	 	Exhibit J
	Telecommunication Equipment
	 	 	86
	Tenant
	 	 	1
	Tenant Change
	 	 	Exhibit D
	Tenant Designated HVAC Hours
	 	 	29
	Tenant HVAC System
	 	 	34
	Tenant Improvement Allowance
	 	 	Exhibit D
	Tenant Improvement Allowance Items
	 	 	Exhibit D
	Tenant Improvements
	 	 	Exhibit D
	Tenant Parties
	 	 	42
	Tenant Work Letter
	 	 	1
	Tenant’s Agents
	 	 	Exhibit D
	Tenant’s Contractors
	 	 	Exhibit D
	Tenant’s Share
	 	 	20
	Third Analysis Period
	 	 	7
	Tranche 1
	 	 	3
	Tranche 1 Part A
	 	 	3
	Tranche 1 Part B
	 	 	3
	Tranche 1 Part B RSF Transition Date
	 	 	3
	Tranche 2
	 	 	3
	Tranche 3
	 	 	3
	Tranche 4
	 	 	3
	Tranche 4 Part A
	 	 	3

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	(v)	
EOP Matter ID No. 7467

 

 

  	 	 	 	 
	 	 	 	Page(s)
	 	 	 	

	
        Tranche
          4 Part B
	 	 	3
	
        Transaction
          Costs
	 	 	54
	
        Transfer
          Notice 
	 	 	51
	
        Transfer
          Premium
	 	 	53
	
        Transferee
	 	 	51
	
        Transfers
	 	 	51
	
        Transmission
          Device
	 	 	Exhibit J
	
        Transmission
          Devices
	 	 	Exhibit J
	
        Transmission
          Devices Area
	 	 	Exhibit J
	
        under
          protest 
	 	 	83
	
        Underlying
          Documents 
	 	 	28
	
        Unusable
          Area 
	 	 	61
	
        Valet
          Parking Personnel
	 	 	73
	
        Ventilation
          for Acceptable Indoor Air Quality
	 	 	29
	
        Voluntary
          Compliance
	 	 	34
	
        Walkway
	 	 	4
	
        Water
          Features 
	 	 	4

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	 	
EOP Matter ID No. 7467

 

(vi)

 

SUMMARY OF BASIC LEASE INFORMATION

     This Summary of Basic Lease Information (the “Summary”) is hereby
incorporated into and made a part of the attached Office Lease (this Summary
and the Office Lease to be known collectively as the “Lease”) which pertains to
the multi-office building project described in Section 6.1 below (the
“Project”). Each reference in the Office Lease to any term of this Summary
shall have the meaning as set forth in this Summary for such term. In the
event of a conflict between the terms of this Summary and the Office Lease, the
terms of the Office Lease shall prevail. Any initially capitalized terms used
herein and not otherwise defined herein shall have the meaning as set forth in
the Office Lease.

	 	 	 	 	 
	 	 	TERMS OF LEASE	 	 
	 	 	(References are to	 	 
	 	 	the Office Lease)	 	DESCRIPTION
	 	 	
	 	

	1.	 	
Dated as of:
	 	July 31, 2003.
	 	 	 	 	 
	2.	 	
Landlord:
	 	PLAYA VISTA — WATER’S EDGE, LLC, a Delaware limited liability company
c/o Equity Office Properties
	 	 	 	 	 
	3.	 	
Address of Landlord (Section
29.14):
	 	550 South Hope Street, Suite 2200

Los Angeles, California 90071
Attention: Regional Senior Vice President
	 	 	 	 	 
	 	 	 	 	and to:
	 	 	 	 	 
	 	 	 	 	c/o Maguire Partners
	 	 	 	 	555 West Fifth Street, Suite 500
	 	 	 	 	Los Angeles, California 90013
	 	 	 	 	Attention: Partner - Leasing
	 	 	 	 	 
	 	 	 	 	and to:
	 	 	 	 	 
	 	 	 	 	Equity Office
	 	 	 	 	Two North Riverside Plaza, Suite 2100
	 	 	 	 	Chicago IL, 60606
	 	 	 	 	Attn: Los Angeles Regional Counsel
	 	 	 	 	 
	 	 	 	 	and to:
	 	 	 	 	 
	 	 	 	 	Allen, Matkins, Leck, Gamble & Mallory LLP
	 	 	 	 	1901 Avenue of the Stars, Suite 1800
	 	 	 	 	Los Angeles, California 90067
	 	 	 	 	Attention: Anton N. Natsis, Esq.
	 	 	 	 	 
	4.	 	
Tenant:
	 	ELECTRONIC ARTS INC., a Delaware corporation.

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	 	
EOP Matter ID No. 7467

 

 

	 	 	 	 	 
	 	 	TERMS OF LEASE	 	 
	 	 	(References are to	 	 
	 	 	the Office Lease)	 	DESCRIPTION
	 	 	
	 	

	5.	 	
Address of Tenant (Section
29.14):
	 	640 North Sepulveda Boulevard

Los Angeles, California 90049
	 	 	 	 	Attention: Ted Schouten
	 	 	 	 	(Prior to Lease Commencement Date)
	 	 	 	 	 
	 	 	 	 	And
	 	 	 	 	 
	 	 	 	 	at the Premises
	 	 	 	 	Attention: Head of Facilities and COO EALA
	 	 	 	 	 
	 	 	 	 	(After Lease Commencement Date)
	 	 	 	 	 
	 	 	 	 	and
	 	 	 	 	 
	 	 	 	 	Electronic Arts
	 	 	 	 	209 Redwood Shores Parkway
	 	 	 	 	Redwood City, California 94065
	 	 	 	 	Attention: General Counsel
	 	 	 	 	 
	 	 	 	 	and
	 	 	 	 	 
	 	 	 	 	209 Redwood Shores Parkway
	 	 	 	 	Redwood City, California 94065
	 	 	 	 	Attention: Senior Director of Facilities and
	 	 	 	 	                    Corporate Services
	 	 	 	 	 
	 	 	 	 	(Prior to and After Commencement Date)
	 	 	 	 	 
	6.	 	
Premises (Article 1).	 	 
	 	 	 	 	 
	 	 	
6.1        Project:
	 	As defined in Section 1.1 of the Lease.
	 	 	 	 	 
	 	 	
6.2        Buildings:
	 	The office building located at 5570 Lincoln Boulevard, Los Angeles, California
(“Building 1”) and the office building located at 5510 Lincoln Boulevard, Los
Angeles, California (“Building 2”) (each such building is referred to in this
Lease as a “Building” and collectively, Building 1 and Building 2 are referred to
in this Lease as the “Buildings”). The parties hereby agree that Building 1
consists of 57,569 rentable square feet of space, and that Building 2 consists of
185,189 rentable square feet of space. Landlord and Tenant hereby acknowledge
and agree that the foregoing rentable area is based upon the rentable area of
“Tranche 1 Part B” following the “Tranche 1 Part B RSF Transition Date,” as those
terms are defined in Section 6 of this Summary.

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	-2-	
EOP Matter ID No. 7467

 

 

	 	 	 	 	 
	 	 	TERMS OF LEASE	 	 
	 	 	(References are to	 	 
	 	 	the Office Lease)	 	DESCRIPTION
	 	 	
	 	

	 	 	
6.3        Premises:
	 	Approximately 65,913 rentable square feet (59,307 usable square feet) consisting
of (i) 46,690 rentable square feet (42,445 usable square feet) (“Tranche 1 Part
A”) on the fourth (4th) floor of Building 2, and (ii) 19,223 rentable square
feet* (16,862 usable square feet) located on the ground floor of Building 2
(“Tranche 1 Part B”) (collectively, “Tranche 1”), approximately 57,569 rentable
square feet (52,335 usable square feet) constituting all of Building 1 (“Tranche
2”), approximately 46,899 rentable square feet (42,635 usable square feet) on the
third (3rd) floor of Building 2 (“Tranche 3”) and approximately 73,052 rentable
square feet (66,411 usable square feet) consisting of (a) 46,923 rentable square
feet (42,657 usable square feet) on the second (2nd) floor of Building 2
(“Tranche 4 Part A”), and (b) 26,129 rentable square feet (23,754 usable square
feet) located on the ground floor of the Building 2 (“Tranche 4 Part B”)
(collectively, “Tranche 4”), all as more particularly depicted on Exhibit A and
consisting of a total of 243,432 rentable (220,688 usable) square feet of space
located in the Buildings prior to the “Tranche I Part B RSF Transition Date,” as
that term is defined below, and 242,758 rentable (220,688 usable) square feet of
space located in the Buildings as of and following the Tranche I Part B RSF
Transition Date, all as more particularly provided in this Lease.
	 	 	 	 	 
	7.	 	
Term (Article 2).
	 	* Upon the first day
of the sixth (6th) Lease Year (the “Tranche 1 Part B RSF
Transition Date”), the parties have agreed that the rentable square footage of
Tranche 1 Part B shall be deemed to equal 18,548 rentable square feet. The
usable square footage of Tranche 1 Part B shall not subject to modification. The
Base Rent, as set forth in this Summary, is set forth to already reflect such
rentable square footage modification.
	 	 	 	 	 
	 	 	
7.1        Lease Term:
	 	Ten (10) years.
	 	 	 	 	 
	 	 	
7.2        Lease

             Commencement
Date:
	 	The Lease Commencement Date shall occur as set forth in Article 2 of the Lease.

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	-3-	
EOP Matter ID No. 7467

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	
7.3	 	 	Lease Expiration Date:
	 	
The last day of the month in which the tenth (10th) annual anniversary of the
Lease Commencement Date occurs, subject to extension as provided in Section 2.2
hereof.

	8.	 	Base Rent (Article 3):

	 	 	Tranche 1 Part
A:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Annual Base Rent
	 	 	 	 	Annual Base	 	Monthly Installment	 	Per Rentable
	Lease Year	 	Rent	 	of Base Rent	 	Square Foot
	
	 	
	 	
	 	

	 	1	 	 	$	812,406.00	 	 	$	67,700.50	 	 	$	17.40	 
	 	2	 	 	$	857,695.30	 	 	$	71,474.61	 	 	$	18.37	 
	 	3	 	 	$	904,385.30	 	 	$	75,365.44	 	 	$	19.37	 
	 	4	 	 	$	952,942.90	 	 	$	79,411.91	 	 	$	20.41	 
	 	5	 	 	$	1,002,901.20	 	 	$	83,575.10	 	 	$	21.48	 
	 	6	 	 	$	1,054,260.20	 	 	$	87,855.02	 	 	$	22.58	 
	 	7	 	 	$	1,107,486.80	 	 	$	92,290.57	 	 	$	23.72	 
	 	8	 	 	$	1,162,581.00	 	 	$	96,881.75	 	 	$	24.90	 
	 	9	 	 	$	1,219,542.80	 	 	$	101,628.57	 	 	$	26.12	 
	 	10	 	 	$	1,278,372.20	 	 	$	106,531.02	 	 	$	27.38	 

	 	 	Tranche 1 Part B**:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Annual Base	 	Monthly Installment
	Lease Year	 	Rent	 	of Base Rent
	
	 	
	 	

	 	1	 	 	$	395,550.48	 	 	$	32,962.54	 
	 	2	 	 	$	395,550.48	 	 	$	32,962.54	 
	 	3	 	 	$	410,544.48	 	 	$	34,212.04	 
	 	4	 	 	$	425,538.36	 	 	$	35,461.53	 
	 	5	 	 	$	425,538.36	 	 	$	35,461.53	 

	 	 	 	 	 
	 	 	 	 	WATER’S EDGE
	 	 	 	 	[Electronic Arts]
	 	 	
-4-
	 	EOP Matter ID No. 7467

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Annual Base	 	Monthly Installment
	Lease Year	 	Rent	 	of Base Rent
	
	 	
	 	

	 	6	 	 	$	440,865.24	 	 	$	36,738.77	 
	 	7	 	 	$	440,865.24	 	 	$	36,738.77	 
	 	8	 	 	$	456,445.56	 	 	$	38,037.13	 
	 	9	 	 	$	472,025.88	 	 	$	39,335.49	 
	 	10	 	 	$	472,025.88	 	 	$	39,335.49	 

**Notwithstanding the foregoing or anything in this Lease to the contrary, (i) Tenant shall be entitled to a credit against
the monthly Base Rent due for Tranche 1 Part B in the amount of $29,795.65 (prorated for any partial months) for each month
during the Lease Term occurring prior to (but not including) January, 2004, (ii) Tenant shall be entitled to a credit against
the monthly Base Rent due for Tranche 1 Part B in the amount of $12,000.00 for each month commencing as of January, 2004 and
continuing through and including June, 2004, and (iii) Tenant shall be entitled to a credit against the monthly Base Rent due
for Tranche 1 Part B for the twelfth (12th) and
twenty-fourth (24th) full calendar months of the Lease Term applicable to
Tenant’s lease of Tranche 1 Part B in the amount of $29,795.65 for each such month.

	 	 	Tranche 2:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Annual Base Rent
	 	 	 	 	Annual Base	 	Monthly Installment	 	Per Rentable
	Lease Year	 	Rent	 	of Base Rent	 	Square Foot
	
	 	
	 	
	 	

	 	1	 	 	$	1,001,700.60	 	 	$	83,475.05	 	 	$	17.40	 
	 	2	 	 	$	1,057,542.53	 	 	$	88,128.54	 	 	$	18.37	 
	 	3	 	 	$	1,115,111.53	 	 	$	92,925.96	 	 	$	19.37	 
	 	4	 	 	$	1,174,983.29	 	 	$	97,915.27	 	 	$	20.41	 
	 	5	 	 	$	1,236,582.12	 	 	$	103,048.51	 	 	$	21.48	 
	 	6	 	 	$	1,299,908.02	 	 	$	108,325.67	 	 	$	22.58	 
	 	7	 	 	$	1,365,536.68	 	 	$	113,794.72	 	 	$	23.72	 
	 	8	 	 	$	1,433,468.10	 	 	$	119,455.68	 	 	$	24.90	 
	 	9	 	 	$	1,503,702.28	 	 	$	125,308.52	 	 	$	26.12	 
	 	10	 	 	$	1,576,239.22	 	 	$	131,353.27	 	 	$	27.38	 

	 	 	 	 	 
	 	 	 	 	WATER’S EDGE
	 	 	 	 	[Electronic Arts]
	 	 	
-5-
	 	EOP Matter ID No. 7467

 

 

    Tranche 3:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	Annual Base Rent
	 	 	 	Annual Base	 	Monthly Installment	 	Per Rentable
	Lease Year	 	Rent	 	of Base Rent	 	Square Foot
	
	 	
	 	
	 	

	1
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	2
	 	$	861,534.63	 	 	$	71,794.55	 	 	$	18.37	 
	3
	 	$	908,433.63	 	 	$	75,702.80	 	 	$	19.37	 
	4
	 	$	957,208.59	 	 	$	79,767.38	 	 	$	20.41	 
	5
	 	$	1,007,390.52	 	 	$	83,949.21	 	 	$	21.48	 
	6
	 	$	1,058,979.42	 	 	$	88,248.29	 	 	$	22.58	 
	7
	 	$	1,112,444.28	 	 	$	92,703.69	 	 	$	23.72	 
	8
	 	$	1,167,785.10	 	 	$	97,315.43	 	 	$	24.90	 
	9
	 	$	1,225,001.88	 	 	$	102,083.49	 	 	$	26.12	 
	10
	 	$	1,284,094.62	 	 	$	107,007.89	 	 	$	27.38	 

    Tranche 4 Part A:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	Annual Base Rent
	 	 	 	Annual Base	 	Monthly Installment	 	Per Rentable
	Lease Year	 	Rent	 	of Base Rent	 	Square Foot
	
	 	
	 	
	 	

	1
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	2
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	3
	 	$	908,898.51	 	 	$	75,741.54	 	 	$	19.37	 
	4
	 	$	957,698.43	 	 	$	79,808.20	 	 	$	20.41	 
	5
	 	$	1,007,906.04	 	 	$	83,992.17	 	 	$	21.48	 
	6
	 	$	1,059,521.34	 	 	$	88,293.45	 	 	$	22.58	 
	7
	 	$	1,113,013.56	 	 	$	92,751.13	 	 	$	23.72	 
	8
	 	$	1,168,382.70	 	 	$	97,365.23	 	 	$	24.90	 

	 	 	 
	 	 	
WATER’S EDGE
	 	 	
[Electronic Arts]
	 	-6-	
EOP Matter ID No. 7467

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	Annual Base Rent
	 	 	 	Annual Base	 	Monthly Installment	 	Per Rentable
	Lease Year	 	Rent	 	of Base Rent	 	Square Foot
	
	 	
	 	
	 	

	9
	 	$	1,225,628.76	 	 	$	102,135.73	 	 	$	26.12	 
	10
	 	$	1,284,751.74	 	 	$	107,062.65	 	 	$	27.38	 

Tranche 4 Part B:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	Annual Base Rent
	 	 	 	Annual Base	 	Monthly Installment	 	Per Rentable
	Lease Year	 	Rent	 	of Base Rent	 	Square Foot
	
	 	
	 	
	 	

	1
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	2
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	3
	 	$	506,118.73	 	 	$	42,176.56	 	 	$	19.37	 
	4
	 	$	533,292.89	 	 	$	44,441.07	 	 	$	20.41	 
	5
	 	$	561,250.92	 	 	$	46,770.91	 	 	$	21.48	 
	6
	 	$	589,992.82	 	 	$	49,166.07	 	 	$	22.58	 
	7
	 	$	619,779.88	 	 	$	51,648.32	 	 	$	23.72	 
	8
	 	$	650,612.10	 	 	$	54,217.68	 	 	$	24.90	 
	9
	 	$	682,489.48	 	 	$	56,874.12	 	 	$	26.12	 
	10
	 	$	715,412.02	 	 	$	59,617.67	 	 	$	27.38	 

Tenant shall be required to pay “Early Rent,” as that term is defined in Section 2.1.2 of this
Lease, with respect to Tranche 2, Tranche 3 and Tranche 4 as and to the extent provided for in
Section 2.1.2 of this Lease.

	9.	 	Additional Rent

(Article 4)*.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	
9.1	 	 	Tenant’s Share of

Direct Expenses for

Tranche 1 Part A:
	 	 	19.23	%
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	
9.2	 	 	Tenant’s Share of

Direct Expenses for

Tranche 1 Part B:
	 	 	7.64	%

	 	 	 
	 	 	
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	9.3	 	
Tenant’s Share
of Direct Expenses for
Tranche 2:
	 	23.71 %
	 	 	 	 	 
	9.4	 	
Tenant’s Share of Direct Expenses for
Tranche 3:
	 	19.32 %
	 	 	 	 	 
	9.5	 	
Tenant’s Share of Direct Expenses for
Tranche 4 Part A:
	 	19.33 %
	 	 	 	 	 
	9.5	 	
Tenant’s Share of Direct Expenses for
Tranche 4 Part B:
	 	10.76 %
	 	 	 	 	 
	9.6	 	
Tenant’s Share of Direct Expenses for
entire Premises:
	 	
Upon the occurrence of the Tranche 4 Commencement Date,
notwithstanding anything in this Section 9 to the contrary,
Tenant’s Share of Direct Expenses shall equal 100%.

*Landlord and Tenant hereby acknowledge and agree that, for purposes of this Lease, “Tenant’s Share” shall at all times be
calculated based upon the rentable square footage of the Project and of Tranche 1 Part B following the Tranche Part B RSF
Transition Date.

	 	 	 	 	 
	10.	 	
Security Deposit:
	 	None
	 	 	 	 	 
	11.	 	
Parking Pass Ratio (Article 28):
	 	On and after the Lease Commencement Date, Tenant shall rent from Landlord four
(4) unreserved parking passes for every 1,000 usable square feet of the
Premises, as such may change from time to time, all subject to the terms of
Article 28 of the Lease; provided, however, that, at any given time, Tenant shall
only be required to rent from Landlord parking passes in an amount equal to four
(4) parking passes per 1,000 usable square feet of the Tranches for which the
applicable Tranche Rent Commencement Date has occurred (as such will increase
from time to time, the “Minimum Parking Allotment”) and the maximum parking
passes which may be rented by Tenant at any given time shall be an amount equal
to four (4) parking passes per 1,000 usable square feet of the entire Premises
(the “Maximum Parking Allotment”).
	 	 	 	 	 

	 	 	 
	 	

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	12.	 	
Brokers (Section 29.19):
	 	CRESA Partners

11726 San Vicente Blvd., Suite 500

Los Angeles, California 90049

and

Cushman & Wakefield of California, Inc.

2121 Avenue of the Stars, Suite 2400

Los Angeles, California 90067
	 	 	 	 	 
	13.	 	
Permitted Use (Section 5):
	 	General office use and any other legally permitted non-retail use consistent with
a first-class office building project and uses incidental thereto, including a
company store, game room, employee cafeteria, assembly area for company meetings,
data center, training rooms, executive briefing rooms, focus rooms, library,
sound recording areas, a/v edit rooms, audio rooms, conference rooms, team
meeting areas, kitchen areas, test areas, mastering lab, a/v presentation rooms
and gymnasium, all in accordance with the terms of this Lease and consistent with
the character of the Project as a first-class office building project as long as
Tenant’s primary use of the Premises is for general office purposes. In
addition, Tenant shall have the right to use the Common Areas as sports
facilities, for barbecues, and otherwise, subject to and in accordance with the
terms of this Lease.

	 	 	 
	 	

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EOP Matter Id No. 7467

 

OFFICE LEASE

     This Office Lease, which includes the preceding Summary of Basic Lease
Information (the “Summary”) attached hereto as pages (1) through (9) and
incorporated herein by this reference (the Office Lease and Summary to be known
sometimes collectively hereafter as the “Lease”), dated as of the date set
forth in Section 1 of the Summary, is made by and between “Landlord” and
“Tenant” as those terms are defined in Sections 2 and 4 of the Summary,
respectively.

ARTICLE 1

PREMISES, BUILDING, PROJECT, AND COMMON AREAS

     1.1 Premises, Building, Project and Common Areas.

          1.1.1
The Premises. Landlord hereby leases to Tenant and Tenant hereby
leases from Landlord the premises set forth in Section 6.3 of the Summary (the
“Premises”). The outline of the Premises is set forth in Exhibit A attached
hereto. Concurrently with the mutual execution and delivery of this Lease,
Landlord shall deliver possession of the entire Premises to Tenant for the
purpose of enabling Tenant to commence, subject to and in accordance with the
terms of the Tenant Work Letter attached hereto as Exhibit D (the “Tenant Work
Letter”), the design and construction of the “Tenant Improvements,” as that
term is defined in the Tenant Work Letter, and Landlord’s failure to timely
deliver the same shall constitute a “Landlord Caused Delay,” as that term is
defined in Section 5.1 of the Tenant Work Letter. Subject to Landlord’s
reasonable regulations, restrictions and guidelines, Tenant’s rights to the
Premises include Tenant’s right to exclusively use and access the janitorial
closets, risers, electrical and telephone rooms and conduit risers all for
Tenant’s effective and efficient use of the Premises permitted hereunder and
the ceilings, walls and floors above and below the Premises, to install and
service wire, conduit and cable that service Tenant’s equipment in the Premises
in accordance with, and subject to, the other terms and provisions of this
Lease and Landlord’s rights hereunder with respect to such areas. Except as
specifically set forth in this Lease and in the Tenant Work Letter, Landlord
shall not be obligated to provide or pay for any improvement work or services
related to the improvement of the Premises. Tenant also acknowledges that
neither Landlord nor any agent of Landlord has made any representation or
warranty regarding the condition of the Premises or the Project or with respect
to the suitability of any of the foregoing for the conduct of Tenant’s
business, except as specifically set forth in this Lease and the Tenant Work
Letter.

          1.1.2 The Buildings and The Project. The Premises will constitute the
entire rentable square footage of Building 1 and the entire rentable square
footage of Building 2. Building 1 and Building 2 are part of an office project
known as “Water’s Edge.” The term “Project,” as used in this Lease, shall mean
(i) Building 1, Building 2, and the “Common Areas,” as that term is defined in
Section 1.1.3, and (ii) the land (which will be improved with landscaping,
parking facilities and other improvements) upon which Building 1, Building 2,
and the Common Areas are located. At Landlord’s sole option, Landlord may
construct a third building adjacent to the Project (which, together with the
land upon which such adjacent office building will be located shall be known as
“Building 3”), provided that (i) except to the extent

	 
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otherwise agree to by
Landlord and Tenant (in each parties’ sole and absolute discretion), in no
event shall Building 3 contain more than 130,000 rentable square feet of space,
with such rentable square footage measured in the same manner as Tenant’s
initial Premises (excluding Tranche 1 Part B), and shall be built to the North
of the “Building 3 Lot Line” depicted on Exhibit A-2, and (ii) Building 3 shall
not become a part of the Project or have access to or use of the Common Areas,
except to the extent necessary to use the parking facilities; provided,
however, that the parking spaces available to occupants of Building 3 shall be
physically separated on a commercially reasonable basis (which separation shall
be not less effective than the separation which would occur if a chain link
fence were installed) from the “Existing Parking Garage,” as that term is
defined in Section 28.2 of this Lease. Attached hereto as Exhibit A-1 is a
site plan which shows the current definition of the Project (but the Project
does not include the empty space North of the Building 3 lot line depicted on
Exhibit A-2).

     1.1.3
Common Areas; Field.

          1.1.3.1
In General. Tenant shall have the exclusive right to use, subject
to the Rules and Regulations referred to in Article 5 of this Lease, those
portions of the Project located outside of the Premises, including the Existing
Parking Garage (but excluding those areas in connection with which tenants are
typically not granted access to (even on a non-exclusive basis) and which are
used by Landlord in connection with the operation or maintenance of the
Building and/or Project) (such areas are collectively referred to herein as the
“Common Areas”). Notwithstanding the foregoing, Landlord acknowledges and
agrees that, subject to the terms and conditions of any applicable “Underlying
Documents,” as that term is defined in Section 5 hereof, Tenant shall have the
right from time to time throughout the Lease Term, in compliance with all
Applicable Laws and at no additional cost (except as otherwise provided below),
to use and, subject to the terms of this Lease, alter and improve all of the
Common Area, including without limitation, the area designated as the “Field”
on Exhibit H, attached hereto (provided that following the construction of
Building 3, the “Field” shall be as set forth on Exhibit H-1, attached hereto).

          1.1.3.2
Special Events. Subject to the terms of this Lease, including,
without limitation, the provisions of this Section 1.1.3.2, Tenant may hold
special events in Common Areas (as opposed to normal daily scheduled use),
subject to the following conditions: (i) Tenant shall be responsible, at its
sole cost and expense, for the removal of trash and debris created as a result
of any such use; (ii) any such use will not materially interfere with access to
the Project’s parking facilities by tenants of Building 3, if applicable, and
the use of the parking facilities which occupants of Building 3 are permitted
to utilized pursuant to the terms hereof, if applicable; and (iii) Tenant’s
indemnification and insurance obligations in Article 10 of this Lease shall be
fully applicable to Tenant’s use of the Common Areas in connection with such
special events. Except as otherwise provided in this Lease, the manner in
which the Common Areas are used, maintained and operated shall be mutually and
reasonably agreed to by Landlord and Tenant (provided that in all events the
Common Areas shall be used, maintained and operated, at a minimum, in a manner
that addresses reasonable safety, health and security concerns consistent with a first class office project but giving due
consideration to the fact that many other first class office projects do not
maintain features such as the Field and other outdoor areas which are part of
the Project).

	 	 	 
	 	 	
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          1.1.3.3
The Field. Landlord agrees that, except as otherwise set forth in
Article 21 of this Lease, the Field shall consist of the area depicted on
Exhibit H (provided that following the construction of Building 3, the Field
shall be as set forth on Exhibit H-1, attached hereto). In addition to
recreational purposes, Landlord acknowledges that, subject to other terms of
this Lease (including, without limitation, Article 8 hereof and the Tenant Work
Letter, as applicable), Tenant may utilize portions of the Field for ingress to
and egress from the Project and/or for other purposes. Landlord acknowledges
and agrees that, except as otherwise set forth in this Lease, Tenant and
Tenant’s employees shall have the exclusive use of the Field and that no other
persons or entities shall have access to or use of the Field.

          1.1.3.4
Landlord’s Actions re Common Areas. So long as Landlord provides
Tenant with prior written notice (provided that such notice shall not be
required in the event of an emergency), Landlord, in Landlord’s prudent
business judgment, reserves the right to close temporarily, make commercially
reasonable alterations or additions to, or change the location of elements of
the Project and the Common Areas (giving due consideration to Tenant’s rights
under this Lease and, in any event, only as reasonably necessary (i) to comply
with Applicable Laws or the Underlying Documents, (ii) for repairs and/or
maintenance, and/or (iii) for the safe and healthful occupancy of the Project);
provided, however, that (a) Landlord shall use commercially reasonable efforts
to not materially interfere with the conduct of Tenant’s Permitted Use from the
Premises, Tenant’s use or design of the Project parking facility or Tenant’s
use of the Common Areas, including without limitation, the Special Use Areas in
exercising such reserved rights hereunder, (b) at all times during the Lease
Term (subject to the terms of Article 21 of this Lease), the Field shall be and
remain a field (and the improvements thereon shall be consistent with the
overall character of the Field as an open area for recreation, provided that
such improvements may also be consistent with “special events” desired by
Tenant and/or a “grand entrance” into the Project (subject to the terms of this
Lease, including, without limitation, Article 8 hereof and the Tenant Work
Letter, as applicable)), (c) at all times during the Lease Term, the Common
Areas shall be and remain for the sole and exclusive use by Tenant with such
improvements as Tenant elects, subject to the terms of this Lease, Applicable
Laws and Landlord’s reasonable approval, (d) the level of any Project service
shall not decrease in any material respect from the level required of Landlord
in this Lease as a result thereof (other than temporary changes in the level of
such services during the performance of any such work), (e) unless required by
law or for safety concerns, such work shall not reduce the usable square
footage of the Premises or, subject to the terms of Article 21 of this Lease,
the Special Use Areas, (f) except in connection with an emergency or as
required by Applicable Laws, Landlord shall provide Tenant with not less than
thirty (30) days prior notice of any work to be performed by Landlord within
the Common Areas which will materially interfere with Tenant’s use of the
Special Use Areas, and (g) subject to the terms of Article 21 of this Lease,
Tenant is not deprived of access to or use of the Premises or Special Use
Areas. Notwithstanding the foregoing, the terms of items (a) through (g) (to
the extent the same relate to or address Tenant’s use of the Common Areas
(including, without limitation, the Special Use Areas) and the Project’s
parking facilities) shall be inapplicable in connection with the construction of
Building 3 and/or any work undertaken by Landlord in
connection with an expansion or modification of the Project’s parking
facilities and/or any Common Areas modifications undertaken by Landlord in
connection with the foregoing improvements, which shall be governed pursuant to
the terms of Article 21 and Section 29.28 of this Lease, and nothing contained
herein shall alter Landlord’s rights and obligations in connection with the

	 	 	 
	 	 	
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construction of Building 3, which shall be governed by Article 21 of this
Lease. Except in the event of an emergency, if any portion of the work will
materially, adversely interfere with Tenant’s use of and access to the
Premises, Buildings, Special Use Areas, Field or Project parking facilities,
then, except in connection with the construction of Building 3, which shall be
governed by the terms of Article 21 of this Lease, Landlord shall perform such
portion of the work during non-Business Hours. Notwithstanding anything above
to the contrary, Landlord shall maintain and operate the Project in a manner
consistent with that of other first-class, mid-rise institutionally owned
office building complexes in the City of Santa Monica, California and in the
office project currently known as Howard Hughes Center in Los Angeles,
California, which are comparable in terms of size (greater than 200,000 square
feet), age, quality of construction, appearance, quantity of project open
space, and quality of common area improvements (the “Comparable Buildings”).
Except when and where Tenant’s right of access is specifically excluded as the
result of (i) an emergency, (ii) a requirement by Applicable Laws, or (iii) a
specific provision set forth in this Lease, Tenant shall have the right of
access to the Premises, the Common Areas, Special Use Areas, each Building, and
the Project parking facility twenty-four (24) hours per day, seven (7) days per
week during the “Lease Term,” as that term is defined in Section 2.1.1 of this
Lease.

          1.1.3.5
Special Use Areas. Subject to the terms of the Tenant Work Letter
and/or Article 8, as the case may be (including, without limitation, Landlord’s
review and approval of all plans relating thereto), Tenant shall have the right
to construct and install any and all of the following: (i) external staircases
(“Stairs”) (and associated Premises entry doors) connecting one or more floors
of the Buildings and/or the Project’s parking facilities to the “Patio” as that
term is defined, below, (ii) enclosed or covered walkways and/or a “skybridge”
between the Buildings (the “Walkway”), (iii) a patio/courtyard between Building
1 and Building 2 to be used for lounging, resting, barbecuing, and eating
purposes (the “Patio”) (and Landlord acknowledges that the construction of the
Patio is anticipated to include the demolition of all existing hardscape and
landscape between the Buildings), (iv) multiple water features within the
Special Use Areas (the “Water Features”), (v) subject to the terms of Section
29.34, improvements upon the roof of the Buildings, and (vi) an escalator from
the lower level of the Existing Parking Garage to the Patio. The Stairs, the
Walkway, the Patio, the Field, and the Water Features are collectively referred
to herein as the “Special Use Areas”. The Special Use Areas shall be Common
Areas and shall not be part of the rentable square footage of the Premises;
provided, however, that Tenant shall have the exclusive right to use all of the
Special Use Areas on the terms set forth herein for use of Common Areas and
subject to all limitations and restrictions on use of the Premises set forth in
this Lease, provided that Tenant’s use of such areas shall be consistent with a
first class office project (giving due consideration to the fact that many
other first class office projects do not maintain features such as the Field
and other outdoor areas which are part of the Project). Tenant’s improvements
to the Special Use Areas (“Common Use Area Improvements”) shall be subject to
the Tenant Work Letter or Article 8 of this Lease, as the case may be. Tenant
may, at its sole cost and expense, affix or place in the Common Areas any and all of the following: furniture, barbecues, fixtures,
umbrellas, plants, water features, flower beds or other similar items of any
kind whatsoever (collectively, “Furniture”) which Tenant desires to affix or to
place in the Common Areas, subject to Landlord’s reasonable approval which
shall be granted or denied within ten (10) business days from receipt of
Tenant’s request (provided that Landlord’s consent shall be deemed to be
reasonably denied to the extent the Furniture is inconsistent with a first
class office project but

	 	 	 
	 	 	
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giving due consideration to the fact that many other
first class office projects do not maintain features such as the Special Use
Areas). On or before the Lease Expiration Date or earlier termination of this
Lease, Tenant shall, at its sole cost and expense, remove all Furniture and
repair any damage caused by the removal of the same. Landlord acknowledges and
agrees that Tenant may replace all planters, sidewalks and other improvements
existing in the Patio as of the date hereof, subject to the terms of this
Lease.

ARTICLE 2

LEASE TERM

     2.1 Initial Lease Term.

          2.1.1
In General. The terms and provisions of this Lease shall be
effective as of the date of this Lease. The term of this Lease (the “Lease
Term”) shall be as set forth in Section 7.1 of the Summary and shall commence
on October 1, 2003, subject to the terms of Section 5 of the Tenant Work Letter
(the “Lease Commencement Date”), provided that Tenant shall not commence
payment of the Base Rent and Tenant’s Share of Direct Expenses for each Tranche
until the “Tranche Rent Commencement Date,” as that term is defined, below,
applicable to the subject Tranche (provided that the foregoing shall not alter
or reduce Tenant’s obligations pursuant to the terms of Section 2.1.2 and
2.1.4, below). The Lease Term shall terminate on the date (the “Lease
Expiration Date”) set forth in Section 7.3 of the Summary, unless this Lease is
sooner terminated or extended as hereinafter provided. For purposes of this
Lease, the “Tranche Rent Commencement Date” shall mean, subject to the terms of
Section 5 of the Tenant Work Letter, the Lease Commencement Date with respect
to Tranche 1, March 1, 2004 with respect to Tranche 2, September 1, 2004 with
respect to Tranche 3 and September 1, 2005 with respect to Tranche 4. Tenant
shall have the right to occupy the Premises, or any portion thereof, prior to
the Lease Commencement Date and/or any Tranche Rent Commencement Date for the
purpose of (i) constructing the Tenant Improvements therein in accordance with
the Tenant Work Letter and/or (ii) conducting business therein provided that
(A) prior to conducting business in any portion of the Premises, a temporary
certificate of occupancy, or its equivalent, shall have been issued by the
appropriate governmental authorities for the Premises, or the subject portion
thereof, or Tenant is otherwise legally entitled to occupy the Premises, or the
subject portion thereof, and (B) all of the terms and conditions of the Lease
shall apply, other than, except as otherwise set forth in this Lease, Tenant’s
obligation to pay Base Rent and Tenant’s Share of the Direct Expenses as though
the Lease Commencement Date or the subject Tranche Rent Commencement Date had
occurred (although the Lease Commencement Date and Tranche Rent Commencement
Dates, as the case may be, shall not actually occur until the occurrence of the
same pursuant to the terms of this Lease) upon such occupancy of the Premises
or subject portion thereof, as the case may be, by Tenant. Furthermore, Tenant shall have no obligation to pay parking charges for
parking passes utilized by Tenant prior to the Lease Commencement Date and,
following the Lease Commencement Date, Tenant shall be required to rent and pay
for parking passes in accordance with the terms of this Lease. For purposes of
this Lease, the term “Lease Year” shall mean each consecutive twelve (12) month
period during the Lease Term; provided, however, that the first Lease Year
shall commence on the Lease Commencement Date and end on the last day of the
eleventh month thereafter and the second and each succeeding Lease Year shall
commence on the first

	 	 	 
	 	 	
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day of the next calendar month; and further provided that
the last Lease Year shall end on the Lease Expiration Date. Within six (6)
months following the Lease Commencement Date and/or any Tranche Rent
Commencement Date, Landlord shall deliver to Tenant a Notice (the “Notice of
Lease Term Dates”) substantially in the form as set forth in
Exhibit C,
attached hereto, which Notice Tenant shall execute and return to Landlord
within ten (10) business days of receipt thereof (provided that if said Notice
is not factually correct, then Tenant shall make such changes as are necessary
to make the Notice factually correct and shall thereafter execute and return
such Notice to Landlord within such ten (10) business day period), and
thereafter the dates set forth on such Notice shall be conclusive and binding
upon Tenant and Landlord, unless Landlord within fifteen (15) business days
following receipt of Tenant’s changes sends a Notice to Tenant rejecting
Tenant’s changes, whereupon this procedure shall be repeated until the parties
either (a) mutually agree upon the contents of
Exhibit C, or (b) the contents
are determined by arbitration pursuant to Section 29.29, below. Failure of
Tenant to timely execute and deliver any Notice of Lease Term Dates shall
constitute an acknowledgment by Tenant that the statements included in such
Notice are true and correct, without exception. In the event Landlord shall
fail to send any Tenant Notice of the occurrence of the Lease Commencement Date
and/or Tranche Rent Commencement Date within six (6) months following the Lease
Commencement Date and/or Tranche Rent Commencement Date, Tenant may send to
Landlord Notice of the occurrence of the Lease Commencement Date and/or Tranche
Rent Commencement Date substantially in the form of the attached hereto as
Exhibit C, which Notice Landlord shall acknowledge by executing a copy of the
Notice and returning it to Tenant (provided that if said Notice is not
factually correct, the Landlord shall make such changes to the Notice as are
necessary to make such Notice factually correct, which revised Notice shall
thereafter be subject to the procedure for finalization set forth in this
Section 2.1.1). The Notice of Lease Term Dates for Tranche 4 shall include a
Base Rent schedule setting forth the total Base Rent payable by for each month
of the Lease Term for all Tranches, provided that, at either party’s election,
such Base Rent schedule may be set forth in an earlier Notice of Lease Term
Dates to the extent that all Tranche Rent Commencement Dates have been
determined.

          2.1.2
Early Rent. Following each Tranche Rent Commencement Date
commencing with the Tranche Rent Commencement Date for Tranche 2, Landlord and
Tenant shall determine the average number of full access parking cards (the
“Full Access Cards”) issued to Tenant (which shall specifically exclude limited
access parking cards provided by Tenant to employees working in Tenant’s
“tester space”) for each month during the period (the “Analysis Period”)
commencing with and following the prior Tranche Rent Commencement Date and
continuing through and including the date immediately preceding the then
applicable Tranche Rent Commencement Date. In the event that the average
number of Full Access Cards issued to Tenant for any month during the subject
Analysis Period exceeded the then applicable “Threshold Amount,” as set forth
below (such average excess to be referred to herein as the “Excess Cards”), then Tenant shall pay to Landlord (in arrears) for such
month Early Rent in accordance with the terms of this Section 2.1.2. For each
month during the subject Analysis Period, Tenant shall pay to Landlord (in
arrears), as additional rent, an amount (the “Early Rent”) equal to the product
of (i) a fraction (which shall in no event exceed 1), the numerator of which
equals the average number of Excess Cards for such month, and the denominator
of which equals the applicable “Base Permitted Occupancy Increase”, as set
forth below, (ii) the applicable “Daily Early Rent”, as set forth below, and
(iii) the number of days in the subject calendar month. The aggregate Early
Rent payable by Tenant for each Analysis Period shall be due and

	 	 	 
	 	 	
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payable by
Tenant to Landlord within thirty (30) days following billing from Landlord, but
in no event prior to each applicable Tranche Rent Commencement Date. To the
extent that the average number of Excess Cards exceeds the entire Base
Permitted Occupancy Increase amount for any month during the First Analysis
Period prior to the Tranche Rent Commencement Date for Tranche 2, then the
Second Analysis Period shall be deemed to be applicable for such month with
respect to the Excess Cards over the full Base Permitted Occupancy Increase
amount, and to the extent that the average number of Excess Cards exceeds the
then applicable Base Permitted Occupancy Increase amount for any month during
the Second Analysis Period prior to the Tranche Rent Commencement Date for
Tranche 3, then the Third Analysis Period shall be applicable for such month
with respect to the Excess Cards over the Base Permitted Occupancy Increase
amount. In the event that the average number of Excess Cards in the Third
Analysis Period shall exceed the full Base Permitted Occupancy Increase amount
for any month during the Third Analysis Period, the number of Excess Cards for
such month shall be deemed equal to the Base Permitted Occupancy Increase
amount for the Third Analysis Period.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Daily Early
	 	 	Threshold	 	Base Permitted	 	Rent for Next
	Analysis Period	 	Amount	 	Occupancy Increase	 	Succeeding Tranche
	
	 	
	 	
	 	

	Lease Commencement
Date – date
immediately
preceding Tranche
Rent Commencement
Date for Tranche 2
(the “First
Analysis Period”)
	 	 	300	 	 	 	75	 	 	$	3,999.45	 
	Tranche Rent
Commencement Date
for Tranche 2 -
date immediately
preceding Tranche
Rent Commencement
Date for Tranche 3
(the “Second
Analysis Period”)
	 	 	375	 	 	 	100	 	 	$	3,258.18	 
	Tranche Rent
Commencement Date
for Tranche 3 -
date immediately
preceding Tranche
Rent Commencement
Date for Tranche 4
(the “Third
Analysis Period”)
	 	 	475	 	 	 	200	 	 	$	3,386.28	 

	 	 	 
	 	 	
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Landlord acknowledges that Tenant is not renting Full Access Cards, but that
the same is purely a tallying mechanism. Notwithstanding anything contained in
this Section 2.1.2 to the contrary, in no event shall Full Access Cards, if
any, issued to “Playa Capital,” as that term is defined in Section 14.3 of this
Lease, be considered for purposes of this Sections 2.1.2.

     Example: As an example only, in the event that, during the first month of
the First Analysis Period (for purposes hereof assumed to be a thirty day
month), Tenant used 360 parking passes during the first 10 days of the month,
Tenant used 350 parking passes during the second 10 days of the month, and
Tenant used 370 parking passes during the final 10 days of the month, then (a)
the average number of passes rented for such month in accordance with the terms
of this Section 2.1.2 would equal 360 (i.e, [(360 x 10) + (350 x 10) + (370 x
10)] divided by 30), and (b) Tenant would pay Early Rent for such month in the
amount of $95,986.80 (i.e. (60/75) x 3,999.45 x 30).

          2.1.3 Increased Tenant Improvement Allowance Based Upon Tenant’s Payment
of Early Rent. In the event that Tenant shall pay Early Rent with respect to
any Analysis Period, then the Tenant Improvement Allowance applicable to the
Tranche for which the Tranche Rent Commencement Date has most recently occurred
shall be increased by the product of (i) a fraction, the numerator of which
equals the Early Rent paid for the subject Tranche, and the denominator of
which equals the amount of the Daily Early Rent for Next Succeeding Tranche (as
set forth in the above chart), (ii) the rentable square footage of the Tranche
in connection with which Tenant paid the Early Rent, and (iii) $0.0123 (the
“Supplemental TI Allowance”).

     Example: As an example only, if Tenant paid Early Rent during the First
Analysis Period in the amount of $95,986.80 (as set forth in the example
above), Tenant would receive a Supplemental TI Allowance in the amount of
$16,994.37 (i.e., (95,986.80 divided by 3,999.45) x 57,569 x 0.0123).

          2.1.4 Tenant’s Payment of Variable Operating Expenses During Beneficial
Occupancy Period. Notwithstanding anything contained in this Lease to the
contrary, during the period commencing as of the Lease Commencement Date and,
with respect to each Tranche, continuing until such Tranche’s Tranche Rent
Commencement Date, within thirty (30) days of billing, Tenant shall pay to
Landlord, as additional rent, an amount equal to all variable Operating
Expenses applicable to such period for that Tranche (the parties hereby
acknowledging that the fixed components of Direct Expenses are already included
in the Daily Early Rent amounts set forth above and therefore such fixed
amounts shall not also be due hereunder), which components of variable Operating Expenses shall be
determined in accordance with sound real estate management and accounting
practices.

     2.2
Option Term.

          2.2.1
Option Right. Subject to the terms hereof, Landlord hereby grants
the Original Tenant or an Affiliate Assignee two (2) options to extend the
Lease Term with respect to all of the Premises only for a period of five (5)
years each (each, an “Option Term”), which options shall be exercisable only by
Notice delivered by Tenant to Landlord as provided below, provided that, as of
the date of delivery of such Notice, Tenant is not in monetary default under

	 	 	 
	 	 	
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this Lease after the expiration of any applicable cure period (a “Material
Default”). Upon the proper exercise of the applicable option to extend, and
provided that, as of the end of the initial Lease Term, or prior Option Term,
as applicable, Tenant is not in Material Default under this Lease, the Lease
Term, as it applies to the Premises, shall be extended for a period of five (5)
years. The rights contained in this Section 2.2 may only be exercised by the
Original Tenant or any Affiliate Assignee.

          2.2.2
Option Rent. The rent payable by Tenant during an Option Term (the
“Option Rent”) shall be equal to the Fair Market Rental Rate for the Premises.

          2.2.3
Exercise of Option. Each option contained in this Section 2.2 shall
be exercised by Tenant, if at all, only in the manner set forth in this Section
2.2.3. In order to exercise the option, Tenant shall deliver Notice (the
“Exercise Interest Notice”) to Landlord not less than eighteen (18) months
prior the expiration of the then Lease Term, stating that Tenant is interested
in exercising its option. Provided that Tenant timely delivers the Exercise
Interest Notice, Landlord shall deliver Notice (the “Option Rent Notice”) to
Tenant of Landlord’s estimated Option Rent not later than thirty (30) days
after Landlord’s receipt of Tenant’s Exercise Interest Notice. Within thirty
(30) days following Tenant’s receipt of Landlord’s Option Rent Notice, if
Tenant elects to exercise its applicable option to extend, Tenant shall
exercise the applicable option to extend this Lease and either accept or reject
the Option Rent contained in the Option Rent Notice, by delivering Notice
thereof to Landlord (the “Exercise Notice”); provided, however, in the event
Tenant exercises the applicable option to extend this Lease and does not
affirmatively accept or reject the Option Rent specified in the Option Rent
Notice before the expiration of such thirty (30) day period, the Fair Market
Rental Rate shall be determined as set forth in Section 2.2.4, below.
Notwithstanding the above, in the event Tenant fails to timely deliver the
Exercise Interest Notice, Tenant may nevertheless exercise an applicable option
by delivering written notice to Landlord exercising such option on or before
the date which is sixteen (16) months prior to the expiration of the initial
Term or first Option Term, as applicable, and then the parties shall follow the
procedure and the Option Rent shall be determined, as set forth in Sections
2.2.4 and 2.2.5, below. Tenant shall not be entitled to exercise the second
(2nd) extension option unless Tenant has properly and timely exercised the
first (1st) extension option. Nothing herein shall be deemed to entitle Tenant
to extend the Lease Term beyond the second (2nd) Option Term.

          2.2.4
Determination of Fair Market Rental Rate. In the event Tenant
timely and appropriately exercises the applicable option to extend this Lease
and objects to or does not accept the Option Rent or, if Tenant otherwise exercises the
applicable option to extend this Lease, Landlord and Tenant shall attempt to
agree upon the Fair Market Rental Rate for the subject space, using reasonable
good-faith efforts. If Landlord and Tenant fail to reach agreement by the date
which is ten (10) months prior to the commencement of an Option Term (the
“Outside Agreement Date”), then each of the parties shall make a separate
determination of the subject Fair Market Rental Rate within ten (10) days
following the Outside Agreement Date and such determinations shall be submitted
to the arbitrators pursuant to the provisions of this Section 2.2.4 and such
submittal shall be submitted to arbitration in accordance with Sections 2.2.4.1
through 2.2.4.7 of this Lease.

	 	 	 
	 	 	
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          2.2.4.1 Landlord and Tenant shall each appoint one arbitrator who shall by
profession be a real estate broker, appraiser or attorney who shall have been
active over the five (5) year period ending on the date of such appointment in
the leasing (or appraisal, as the case may be) of first class office properties
in the Los Angeles County (including Santa Monica and West Los Angeles),
California area. The determination of the arbitrators shall be limited solely
to the issue area of whether Landlord’s or Tenant’s submitted Fair Market
Rental Rate, is the closest to the actual Fair Market Rental Rate as determined
by the arbitrators, taking into account the requirements of Section 2.2.5 of
this Lease. Each such arbitrator shall be appointed within fifteen (15) days
after the applicable Outside Agreement Date. Landlord and Tenant may consult
with their selected arbitrators prior to appointment and may select an
arbitrator who is favorable to their respective positions. The arbitrators so
selected by Landlord and Tenant shall be deemed “Advocate Arbitrators.”

          2.2.4.2 The two Advocate Arbitrators so appointed shall be specifically
required pursuant to an engagement letter within ten (10) days of the date of
the appointment of the last appointed Advocate Arbitrator agree upon and
appoint a third arbitrator (“Neutral Arbitrator”) who shall be qualified under
the same criteria set forth hereinabove for qualification of the two Advocate
Arbitrators except that neither the Landlord or Tenant or either parties
Advocate Arbitrator may, directly or indirectly, consult with the Neutral
Arbitrator prior or subsequent to his or her appearance. The Neutral
Arbitrator shall be retained via an engagement letter jointly prepared by
Landlord’s counsel and Tenant’s counsel.

          2.2.4.3 The three arbitrators shall within thirty (30) days of the
appointment of the Neutral Arbitrator reach a decision as to Fair Market Rental
Rate and determine whether the Landlord’s or Tenant’s determination of Fair
Market Rental Rate as submitted pursuant to Section 2.2.4 of this Lease is
closest to Fair Market Rental Rate as determined by the arbitrators and
simultaneously publish a ruling (“Award”) indicating whether Landlord’s or
Tenant’s submitted Fair Market Rental Rate is closest to the Fair Market Rental
Rate as determined by the arbitrators. Following notification of the Award, the
Landlord’s or Tenant’s submitted Fair Market Rental Rate determination,
whichever is selected by the arbitrators as being closest to Fair Market Rental
Rate shall become the then applicable Fair Market Rental Rate.

          2.2.4.4 The Award issued by the majority of the three arbitrators shall be
binding upon Landlord and Tenant.

          2.2.4.5 If either Landlord or Tenant fail to appoint an Advocate
Arbitrator within fifteen (15) days after the applicable Outside Agreement
Date, either party may petition the presiding judge of the Superior Court of
Los Angeles County to appoint such Advocate Arbitrator subject to the criteria
in Section 2.2.4.1 of this Lease, or if he or she refuses to act, either party
may petition any judge having jurisdiction over the parties to appoint such
Advocate Arbitrator.

          2.2.4.6 If the two Advocate Arbitrators fail to agree upon and appoint the
Neutral Arbitrator, then either party may petition the presiding judge of the
Superior Court of Los Angeles County to appoint the Neutral Arbitrator, subject
to criteria in Section 2.2.4.1 of this

	 	 	 
	 	 	
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Lease, or if he or she refuses to act,
either party may petition any judge having jurisdiction over the parties to
appoint such arbitrator.

          2.2.4.7 The cost of arbitration shall be paid by Landlord and Tenant
equally.

          2.2.5
Fair Market Rental Rate. The “Fair Market
Rental Rate” shall be
equal to the rent (including additional rent), including all escalations, at
which tenants, pursuant to leases or related agreements (i) which are executed
not less than three (3) months nor more than eighteen (18) months prior to the
commencement of the Option Term, and (ii) which have a term which is reasonably
anticipated to commence within the six (6) month period immediately preceding
or after the commencement of the Option Term, are leasing non-sublease,
non-equity, non-renewal (but renewals are only excluded to the extent tenants
are not represented by a real estate broker with respect to the subject
option), non-encumbered, non-expansion space comparable in size (deals in
excess of 100,000 rentable square feet shall be deemed comparable in size),
location, amenities and quality to the Renewal Premises for a similar lease
term, in an arms length transaction, which comparable space is located in the
Project and in the Comparable Buildings (“Comparable
Transactions”) taking into
consideration the following concessions: (a) rental abatement concessions, if
any, being granted such tenants in connection with such comparable
space, (b) tenant improvements or allowances provided or to be provided for such
comparable space, (c) base year and/or expense stop or similar operating
expense protections, (d) the amount and type of available parking for Tenant,
and (e) all other monetary and non-monetary concessions, if any, being granted
such tenants in connection with such Comparable Transactions; provided,
however, that notwithstanding anything to the contrary herein, no consideration
shall be given to (1) the fact that Landlord is or is not required to pay a
real estate brokerage commission in connection with the applicable term or the
fact that the Comparable Transactions do or do not involve the payment of real
estate brokerage commissions, and (2) any period of rental abatement, if any,
granted to tenants in Comparable Transactions in connection with the design,
permitting and construction of tenant improvements in such comparable spaces.
In analyzing such comparable spaces, the arbitrators shall give due
consideration to the method by which the square footage of such space has been
calculated and all other relevant factors which may be different between
Comparable Transactions, including, without limitation, the value, if any, of
Tenant’s signage as compared to signs granted to tenants in Comparable
Transactions. The Fair Market Rental Rate shall additionally include a
determination as to whether, and if so to what extent, Tenant must provide
Landlord with financial security, such as a letter of credit or guaranty, for
Tenant’s Rent obligations during the term. Such determination shall be made by reviewing the extent of financial security then generally
being imposed in Comparable Transactions with tenants of comparable financial
condition and credit history to the then existing financial condition and
credit history of Tenant (with appropriate adjustments to account for
differences in the then-existing financial condition of Tenant and such other
tenants). If in determining the Fair Market Rental Rate for an Option Term,
Tenant is deemed to be entitled to a tenant improvement or comparable allowance
for the improvement of the Renewal Premises (the total dollar value of such
allowance, the “Option Term TI Allowance”), Landlord may, at Landlord’s sole
option, elect any or a portion of the following: (A) to grant some or all of
the excess Option Term TI Allowance to Tenant as a lump sum payment to Tenant,
and/or (B) in lieu of making a lump sum payment (or portion thereof) to Tenant,
to reduce the rental rate component of the Fair Market Rental Rate to be an
effective rental rate
which takes into

	 	 	 
	 	 	
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consideration that Tenant will not
receive a payment of such excess Option Term TI Allowance, or portion thereof
(in which case the excess Option Term TI Allowance, or portion thereof,
evidenced in the effective rental rate shall not be paid to Tenant).
Notwithstanding anything above to the contrary, Landlord and Tenant acknowledge
and agree to adjust the economic components of the rent in the Comparable
Transactions to reflect triple net economic components so that an
“apples-to-apples” comparison analysis can be made.

ARTICLE 3

BASE RENT

     Tenant shall pay, without notice or demand, to Landlord at the management
office of the Project, or at such other place as Landlord may from time to time
designate in writing, in the form of a check, base rent
(“Base Rent”) as set
forth in Section 8 of the Summary, payable in equal monthly installments as set
forth in Section 8 of the Summary in advance on or before the first day of each
and every calendar month during the Lease Term, without any setoff or deduction
whatsoever (except as specifically set forth in this Lease). The Base Rent for
the first full month of the Lease Term for Tranche 1 Part A (but not with
respect to any other Tranches) shall be paid at the time of Tenant’s execution
of this Lease. If any Rent payment date (including the Lease Commencement
Date) falls on a day of a calendar month other than the first day of such
calendar month or if any Rent payment is for a period which is shorter than one
calendar month such as during the last month of the Lease Term, the Rent for
any fractional calendar month shall accrue on a daily basis for the period from
the date such payment is due to the end of such calendar month or to the end of
the Lease Term at a rate per day which is equal to 1/365 of the annual Rent.
All other payments or adjustments required to be made under the terms of this
Lease that require proration on a time basis shall be prorated on the same
basis.

ARTICLE 4

ADDITIONAL RENT

     4.1 Additional Rent. In addition to paying the Base Rent specified in
Article 3 of this Lease, Tenant shall pay as additional rent “Tenant’s Share”
of the annual “Direct Expenses,” as those terms are defined in Sections 4.2.5
and 4.2.1 of this Lease, respectively. Such additional rent, together with any
and all other amounts payable by Tenant to Landlord, as additional rent or otherwise, pursuant to the terms of this Lease, shall
be hereinafter collectively referred to as the “Additional Rent.” The Base
Rent and Additional Rent are herein collectively referred to as the “Rent.”
All amounts due under this Article 4 as Additional Rent shall be payable in the
same manner, time and place as the Base Rent. Without limitation on other
obligations of Tenant and Landlord which shall survive the expiration of the
Lease Term, the obligations of Tenant to pay the Additional Rent provided for
in this Article 4 shall survive the expiration of the Lease Term and Landlord’s
obligation to refund to Tenant any overpayments of such Additional Rent shall
survive the expiration of the Lease Term; provided, however, that any such
payments made by Tenant of any Additional Rent or any refund to Tenant by
Landlord of any overpayments of such Additional Rent shall not constitute a
waiver by either Tenant or Landlord, as the case may be, of any amount that
Tenant or Landlord (as the case may be)

	 	 	 
	 	 	
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contend, now or in the future (subject
to the limitations set forth in the Lease or under Applicable Law) are in
dispute.

     4.2 Definitions. As used in this Article 4, the following terms shall
have the meanings hereinafter set forth:

          4.2.1 “Direct Expenses” shall mean “Operating Expenses” and “Tax
Expenses.”

          4.2.2 “Expense Year” shall mean each calendar year in which any portion of
the Lease Term falls, through and including the calendar year in which the
Lease Term expires.

          4.2.3 “Operating Expenses” shall, subject to Section 4.4.2, mean all
expenses, costs and amounts of every kind and nature which Landlord shall pay
or incur during any Expense Year because of or in connection with the
ownership, management, maintenance, repair, replacement, restoration or
operation of the Project or any portion thereof, all as determined in
accordance with sound real estate management practices consistently applied,
including, without limitation, any amounts paid or incurred for (i) the cost of
supplying all utilities, the cost of operating, maintaining, repairing,
replacing, renovating, complying with mandatory conservation measures in
connection with, and managing the utility systems, mechanical systems,
plumbing, sanitary and storm drainage systems, landscaping, communication
systems, and escalator and elevator systems, and the cost of supplies, tools,
equipment, maintenance, and service contracts incurred in connection therewith;
(ii) the cost of licenses, certificates, permits and inspections, the cost of
contesting the validity or applicability of any governmental enactments which
are reasonably anticipated to reduce Operating Expenses, subject to item (BBB),
below, the costs incurred in connection with the implementation and operation
of any governmentally mandated transportation management program or similar
program or a municipal or public shuttle service or parking program, and any
traffic or transportation-related fee imposed by any governmental authority,
and the cost of reasonably contesting any fees or other charges imposed by any
governmental authority in connection with; (iii) the cost of all insurance
carried in connection with the Project, or any portion thereof not, however,
materially in excess of the types or amounts of insurance carried by landlords
of Comparable Buildings for unusual or expensive coverages or endorsements such
as earthquake and flood (provided, however, that Landlord’s insurance shall be
deemed to have satisfied such Comparable Buildings standard, if other buildings
comparable to the Buildings and owned by an EOP Affiliate in Southern California (which buildings are subject to
similar debt coverage terms and conditions) are covered by substantially the
same insurance coverage terms (i.e., coverage rate and deductible
percentage(s)) as carried by Landlord hereunder); (iv) the cost of landscaping,
relamping, and all supplies, tools, equipment and materials used in the
operation, repair and maintenance of the Project, or any portion thereof; (v)
subject to the terms of item (EEE), below, the cost of parking area, operation,
repair, restoration, and maintenance, including, but not limited to,
resurfacing, repainting, restriping, and cleaning; (vi) fees, charges and other
costs reasonably incurred, including a management fee equal to three and
one-half percent (3.5%) of the sum of (A) the Base Rent (grossed-up for any
rent credits applicable to Tranche 1 Part B) and Early Rent payable by Tenant
for portions of the Premises for which the Tranche Rent Commencement Date has
occurred, (B) $12.00 per rentable square foot of the portions of the Premises
for which the Tranche Rent Commencement Date has occurred, and (C) parking

	 	 	 
	 	 	
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fees payable by Tenant, consulting fees (including
but not limited to any consulting fees incurred in connection with the
procurement of insurance), legal fees and accounting fees, of all persons,
contractors and consultants engaged by Landlord or otherwise reasonably
incurred by Landlord in connection with the management, operation,
administration, maintenance and repair of the Project (subject to the
“Management Staff Limitation,” as that term is defined in item (viii), below),
and the cost of equipping, staffing (subject to the Management Staff
Limitation) and operating any off-site management office for the Buildings,
provided if the management office services one or more other buildings or
properties, the shared costs and expenses of equipping, staffing and operating
such management office(s) shall be equitably prorated and apportioned between
the Buildings and the other buildings or properties (subject to the Management
Staff Limitation); (vii) payments under any equipment rental agreements; (viii)
wages, salaries and other compensation and benefits of all persons to the
extent that such persons are engaged in the operation, maintenance, management,
or security of the Project (provided that such persons hold a title generally
considered to be no higher in rank than Project manager), or any portion
thereof, including, but not limited to, employer’s Social Security taxes,
unemployment taxes or insurance, and any other taxes which may be levied on
such wages, salaries, compensation and benefits; provided, that if any
employees of the Project provide services for other projects, then a prorated
portion of such employees’ wages, benefits and taxes
shall be included in Operating Expenses based on the portion of their
working time devoted to the Project, provided that in no event shall the
management staff allocation to the Project exceed 28.454% of each of one (1)
general manager, one (1) senior property manager, and two (2) property managers
(or, in each instance, any equivalent title, as reasonably determined by
Landlord) (such limitation on management staff, as provided and as may be
modified in accordance with the terms hereof to be referred to as the
“Management Staff Limitation”), provided further that (i) Landlord shall be
permitted to re-allocate, in Landlord’s reasonable discretion, its management
staff for the Project to the extent that, for the Expense Year in which such
re-allocation occurs, Operating Expenses shall not be higher than would have
been incurred had Landlord not changed the Management Staff Limitation, and
(ii) upon a re-allocation in accordance with the terms hereof, such new
management staff allocated to the Project shall, subject to the continuing
applicability of the foregoing, be the Management Staff Limitation; (ix)
subject to the terms of Section 4.2.5, below, payments, fees or charges under
any present and future easement, license, operating agreement, disposition and
development agreement, covenants, conditions and restrictions, restrictive
covenant, Underlying Documents (as defined in Article 5 hereof) or other
instruments (including any amendments and modifications to any such
instruments) pertaining to the sharing of costs by the Project (or any portion
thereof) or otherwise, or relating to any property association, and any costs
and expenses of any governmentally mandated assessments, impositions or charges
affecting the Project including, but not limited to, any sewer connection
and/or reconnection fees or assessments; (x) the cost of operation, repair,
maintenance and replacement of all systems and equipment and components
thereof; (xi) the cost of janitorial services, alarm and security service,
window cleaning, trash removal, repair of wall and floor coverings, ceiling
tiles and fixtures in lobbies, corridors, restrooms and other common or public
areas or facilities, maintenance and replacement of curbs and walkways, repair
to roofs and re-roofing; (xii) amortization over its reasonable useful life
(including interest on the unamortized cost at a rate equal to the Interest
Rate) of the cost of acquiring or the rental expense of personal property used
in the maintenance, operation and repair of the Project, or any portion
thereof; (xiii) intentionally deleted; (xiv) the cost of any capital repairs,
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improvements made to the Project or other costs incurred
in connection with the Project (A) which are intended to reduce Operating
Expenses in connection with the operation or maintenance of the Project, or any
portion thereof to the extent of cost savings reasonably anticipated by
Landlord (based on sound documentation) at the time of such expenditure to be
incurred in connection therewith, or (B) that are required under any Applicable
Laws enacted after the Lease Commencement Date; provided, however, that any
such permitted capital expenditure shall be amortized (with interest at a rate
equal to the floating commercial loan rate announced from time to time by Bank
of America, a national banking association, or its successor, as its prime
rate, plus 2% per annum (the “Interest Rate”)) over its reasonable useful life;
and (xv) costs, fees, charges or assessments imposed by any federal, state or
local government for fire and police protection, trash removal, community
services, or other services, or street and other traffic improvements, which do
not constitute “Tax Expenses”, as that term is defined in Section 4.2.4, below.
The Management Staff Limitation shall be inapplicable with respect to
administrative costs (such as accounting, customer service, secretarial, and
other administrative functions) allocated to the Project. Landlord hereby
agrees that, during the first Lease Year, Landlord shall not collect from
Tenant and other tenants in all other projects in which the management staff
allocated to the Project as set forth in item (viii),
above, provides management services more than 100% of the cost of the
management staff allocated to the Project, as set forth in item (viii), above.

     Notwithstanding the foregoing, for purposes of this Lease, Operating
Expenses shall not, however, include (A) except as otherwise set forth above in
this Section 4.2.3, principal payments, bad-debt expenses, depreciation,
interest and amortization on mortgages, or ground lease payments, if any; (B)
real estate brokers’ leasing commissions; (C) the cost of providing any service
directly to and paid directly by any tenant; (D) any costs expressly excluded
from Operating Expenses elsewhere in this Lease; (E) costs of any items to the
extent Landlord receives reimbursement from insurance proceeds (such proceeds
to be excluded from Operating Expenses in the year in which received, except
that any deductible amount under any insurance policy shall be included within
Operating Expenses subject to (YY) below) or from a third party; (F) costs of
capital improvements, repairs, alterations and equipment, except those set
forth in this Section 4.2.3(xiv); (G) marketing costs, including leasing
commissions, advertising and promotional expenses, space planning costs and
attorneys’ fees in connection with the negotiation and preparation of letters,
deal memos, letters of intent, leases, and subleases and/or assignments
incurred in connection with present or prospective tenants or other occupants
of the Project, including attorneys’ fees and other costs and expenditures
incurred in connection with disputes with present or prospective tenants or
other occupants of the Project; (H) costs, including permit, license and
inspection costs and any allowances or other tenant improvement concessions,
incurred or provided with respect to the design, construction and/or
installation of other tenants’ or occupants’ improvements made for tenants or
other occupants in the Project or incurred in renovating or otherwise
improving, decorating, painting or redecorating vacant space for tenants or
other occupants in the Project (excluding, however, such costs relating to any
Common Areas or Project parking facilities); (I) rentals and other related
expenses incurred in leasing a heating, ventilation and air conditioning
system, elevators, or other items (except equipment not affixed to the Project
which is used in providing janitorial or similar services to the Project and,
further excepting from this exclusion such equipment rented or leased to remedy
or ameliorate an emergency condition in the Project) which if purchased, rather
than rented, would constitute a capital improvement not included in Operating
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Lease; (J) depreciation, amortization and interest
payments, except as specifically included in Operating Expenses pursuant to the
terms of this Lease and, except on materials, tools, supplies and vendor-type
equipment purchased by Landlord to enable Landlord to supply services Landlord
might otherwise contract for with a third party, where such depreciation,
amortization and interest payments would otherwise have been included in the
charge for such third party’s services, all as determined in accordance with
sound real estate management principles, and when depreciation or amortization
is permitted or required, the item shall be amortized over its reasonably
anticipated useful life; (K) costs incurred by Landlord for alterations
(including structural additions), repairs, equipment and tools which are of a
capital nature and/or which are considered capital improvements or replacements
under sound real estate management principles, except as specifically included
in Operating Expenses pursuant to the terms of Section 4.2.3(xiv); (L) expenses
in connection with services or other benefits which are not offered to Tenant
or for which Tenant is charged for directly but which are provided to another
tenant or occupant of the Project, without charge; (M) overhead and profit
increment paid to Landlord or to the parent organization or to subsidiaries or
affiliates of Landlord for goods and/or services in the Project to the extent
the same exceeds the costs of such by unaffiliated
third parties on a competitive basis; (N) advertising and promotional
expenditures, and costs of signs in or on the Project identifying the owner of
the Project or other tenants’ signs; (O) to the extent applicable, electric
power costs or other utility costs for which any tenant directly contracts with
the local public service company (but Landlord shall have the right to “gross
up” as if the floor was vacant); (P) tax penalties incurred for any reason as a
result of Landlord’s negligence, inability or unwillingness to make payments or
file returns when due; (Q) legal fees and costs concerning the negotiation and
preparation of this Lease or any litigation between Landlord and
Tenant; (R) any reserves retained by Landlord; (S) costs arising from Landlord’s charitable
or political contributions; (T) costs associated with the operation of the
business of the partnership or entity which constitutes the Landlord, as the
same are distinguished from the costs of operation of the Project, including
partnership accounting and legal matters, costs of defending any lawsuits with
any mortgagee (except as the actions of the Tenant may be in issue), costs of
selling, syndicating, financing, mortgaging or hypothecating any of the
Landlord’s interest in the Project, and costs incurred in connection with any
disputes between Landlord and its employees, between Landlord and Project
management, or between Landlord and other tenants or occupants; (U) the wages
and benefits of any employee who does not devote substantially all of his or
her employed time to the Project unless such wages and benefits are prorated to
reflect time spent on operating and managing the Project vis-à-vis time spent
on matters unrelated to operating and managing the Project; provided, that in
no event shall Operating Expenses for purposes of this Lease include wages
and/or benefits attributable to personnel above the level of Project manager,
Project engineer and/or chief operating engineer; (V) except as set forth in
items (xii) and (xiv), above, late charges, penalties, liquidated damages, and
interest; (W) amount paid as ground rental or as rental for the Project by the
Landlord; (X) any compensation paid to clerks, attendants or other persons in
commercial concessions operated by or on behalf of the Landlord; (Y) all items
and services for which Tenant or any other tenant in the Project is obligated
to reimburse Landlord, provided that Landlord shall use commercially reasonable
efforts to collect such reimbursable amounts, or which Landlord provides
selectively to one or more tenants (other than Tenant) without reimbursement;
(Z) costs, other than those incurred in ordinary maintenance and repair, for
sculpture, paintings, fountains or other objects of art; (AA) fees and
reimbursements payable to Landlord (including its parent

	 	 	 	 	 
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organization,
subsidiaries and/or affiliates) or by Landlord for management of the Project
which exceed the management fee described in Section 4.2.3(vi) above; (BB)
subject to the terms of item (vi), above, rent for any office space occupied by
Project management personnel; (CC) all assessments and premiums which are not
specifically charged to Tenant because of what Tenant has done, which can be
paid by Landlord in installments, shall be paid by Landlord in the maximum
number of installments permitted by law (except to the extent inconsistent with
the general practice of the Comparable Buildings) and shall be included as
Operating Expenses in the year in which the assessment or premium installment
is actually paid; (DD) costs arising from the gross negligence or willful
misconduct of Landlord or “Landlord Parties,” as that term is defined in
Section 10.1 of this Lease; (EE) costs incurred to comply with Applicable Law
with respect to “Hazardous Material,” as that term is defined in Section 29.25
of this Lease, which was in existence in either Building or on the Project
prior to the Lease Commencement Date, and was of such a nature that a federal,
state or municipal governmental or quasi-governmental authority, if it had then
had knowledge of the presence of such Hazardous Material, in the state, and
under the conditions that it then existed in the subject Building or on the
Project, would have
then required the removal, remediation or other action with respect to
such Hazardous Material; and costs incurred with respect to Hazardous Material,
which Hazardous Material is brought into each Building or onto the Project
after the date hereof by Landlord or any other tenant of the Project or by
anyone other than Tenant or Tenant Parties and is of such a nature, at that
time, that a federal, state or municipal governmental or quasi-governmental
authority, if it had then had knowledge of the presence of such Hazardous
Material, in the state, and under the conditions, that it then exists in the
subject Building or on the Project, would have then required the removal,
remediation or other action with respect to such Hazardous Material; (FF) any
entertainment, dining or travel expenses for any purpose; (GG) any finders
fees, brokerage commissions, job placement costs or job advertising cost, other
than with respect to a receptionist or secretary in the Project office, once
per year; (HH) any above Building standard cleanup, including construction and
special events cleanup; (II) the cost of any training or incentive programs,
other than for tenant life safety information services; (JJ) in-house legal
and/or accounting (as opposed to office building bookkeeping) fees; (KK) in the
event any facilities, services or utilities used in connection with the Project
are provided from another building owned or operated by Landlord or vice versa,
the costs incurred by Landlord in connection therewith shall be allocated to
Operating Expenses by Landlord on a reasonably equitable basis; (LL) legal fees
and costs, settlements, judgments or awards paid or incurred because of
disputes between Landlord and Tenant, Landlord and other tenants or prospective
occupants or prospective tenants/occupants or providers of goods and services
to the Project; (MM) the costs of any flowers, gifts, balloons, etc. provided
to any prospective tenants, Tenant, other tenants, and occupants of either
Building; (NN) subject to the terms of Section 4.2.5, below, costs incurred in
connection with the original construction and development of the Project
(excluding any recurring costs incurred in connection with the Underlying
Documents but including initial landscaping expenditures, permit, license,
one-time entitlement, construction and financing costs), and costs incurred in
connection with any work Landlord performs pursuant to Article 21 of this
Lease, or in connection with any other major change in the Project, such as
adding or deleting floors, building out the Field and/or costs of constructing
additional parking spaces and/or modifying the location of parking spaces; (OO)
costs for which the Landlord is reimbursed, or would have been reimbursed if
Landlord had carried the insurance Landlord is required to carry pursuant to
this Lease or would have been reimbursed if Landlord had used commercially
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to collect such amounts, by any tenant or occupant of the
Project or by insurance from its carrier or any tenant’s carrier; (PP) tax
penalties; (QQ) costs of correcting defects in the initial design and
construction of the Project; (RR) costs reimbursed to Landlord under any
warranty carried by Landlord for either Building and/or the Project, which
warranties Landlord shall use commercially reasonable efforts to enforce; (SS)
costs of magazine and newspaper subscriptions; (TT) costs of third party
non-tenant parties; (UU) costs of specialty clubs and services not provided or
offered to Tenant without charge; (VV) costs associated with material portions
of the Common Areas dedicated for the exclusive use of other tenants of the
Project, except to the extent Tenant is given its pro-rata share (rentable
square feet in the Premises in relation to the rentable square feet in the
Project) of comparable Common Areas; (WW) costs due to violations of the
Underlying Documents; (XX) if Tenant elects to separately meter any utilities
used by Tenant, such utilities shall be excluded from Operating Expenses except
for such utilities as are provided to the Common Areas; (YY) amounts (A) as a
result of damage caused by earthquakes or terrorist acts, and (B) which are in
excess of $1.00 per rentable square foot of the Buildings in
any Expense Year; (ZZ) costs incurred in connection with upgrading the
Project to comply with disability, life, seismic, fire and safety codes,
ordinances, statutes, or other laws in effect prior to the Lease Commencement
Date, including, without limitation, the ADA, including penalties or damages
incurred due to such non-compliance; (AAA) costs incurred in connection with
any ground water or soil condition based upon the presence of Hazardous
Materials (to the extent not resulting from the acts or omissions of Tenant or
the Tenant Parties); (BBB) penalties resulting from non-compliance with the
maximum allowable p.m. peak hour trips for the Premises (provided that the
foregoing shall not alter or reduce Tenant’s obligation, at Tenant’s cost, to
implement or pay for all other measures required by any applicable traffic
demand management program); (CCC) costs incurred in connection with any methane
remediation or treatment at the Project; (DDD) intentionally deleted; (EEE) all
costs associated with the construction and development of Building 3 and/or the
“Surface Parking Lot,” as that term is defined in Section 28.2 of this Lease
and any material incremental costs incurred by Landlord (in addition to those
costs incurred to provide the parking provided for pursuant to the terms of
this Lease) to provide parking to the “Playa Vista Visitor Center”; and (FFF)
costs incurred by Landlord as a result of the First Amendment to the
Declaration of Special Land Use Restrictions or the First Amendment to the
Parking Agreement or Parking Covenant. Any refunds or discounts actually
received by Landlord for any category of Operating Expenses shall reduce
Operating Expenses in the applicable Expense Year (pertaining to such Category
of Operating Expenses). Landlord shall not make any profit by charging items
to Operating Expenses that are otherwise also charged separately to others.
Landlord shall not collect Operating Expenses from Tenant and all other
tenants/occupants in the Project in an amount in excess of what Landlord
incurred for the items included in Operating Expenses.

          4.2.4
Subject to the terms of Section 4.2.5, below, “Tax Expenses” shall
mean all federal, state, county, or local governmental or municipal taxes,
fees, charges or other impositions of every kind and nature, whether general,
special, ordinary or extraordinary (including, without limitation, real estate
taxes, Mello-Ross assessments, general and special assessments, transit taxes
or charges, business or license taxes or fees, annual or periodic license or
use fees, open space charges, housing fund assessments, leasehold taxes or
taxes based upon the receipt of rent, including gross receipts or sales taxes
applicable to the receipt of rent, unless required to be paid by Tenant,
personal property taxes imposed upon the fixtures, machinery, equipment,
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property used in connection with the Project), which Landlord shall pay or
incur during any Expense Year (without regard to any different fiscal year used
by such governmental or municipal authority) because of or in connection with
the ownership, leasing and operation of the Project.

               4.2.4.1 Tax Expenses shall include, without limitation:

                    (a) Except as provided in Section 4.8 below, any assessment, reassessment,
tax, fee, levy or charge in addition to, or in substitution, partially or
totally, of any assessment, tax, fee, levy or charge previously included within
the definition of real property tax, it being acknowledged by Tenant and
Landlord that Proposition 13 was adopted by the voters of the State of
California in the June 1978 election (“Proposition
13”) and that assessments,
taxes, fees, levies and charges may be imposed by governmental agencies for
such services as fire protection, street, sidewalk and road maintenance,
conservation, refuse removal and for other governmental services formerly
provided without charge to property owners or occupants, and, in further
recognition of the decrease in the level and quality of governmental services
and amenities as a result of Proposition 13, Tax Expenses shall, except as
otherwise expressly provided below, also include any governmental or private
assessments or other charges, costs or impositions or the Project’s
contribution towards a governmental or private cost-sharing agreement for the
purpose of augmenting or improving the quality of services and amenities
normally provided by governmental agencies. It is the intention of Tenant and
Landlord that all such new and increased assessments, taxes, fees, levies, and
charges and all similar assessments, taxes, fees, levies and charges be
included within the definition of Tax Expenses for purposes of this Lease;

                    (b) Any assessment, tax, fee, levy, or charge allocable to or measured by
the area of the Premises or the rent payable hereunder, including, without
limitation, any business or gross income tax or excise tax with respect to the
receipt of such rent, or upon or with respect to the possession, leasing,
operating, management, maintenance, alteration, repair, use or occupancy by
Tenant of the Premises, or any portion thereof;

                    (c) Any assessment, tax, fee, levy or charge, upon this transaction or any
document to which Tenant is a party, creating or transferring an interest or an
estate in the Premises; and

                    (d) Any tax on the Rent, right to Rent or any other income from the
Project, or any portion thereof, or as against the business of leasing the
Project, or any portion thereof.

               4.2.4.2 Any expenses incurred by Landlord in attempting to protest, reduce
or minimize Tax Expenses if Landlord has a reasonable expectation of achieving
a reduction in excess of the expenses incurred shall be included in Operating
Expenses in the Expense Year such expenses are paid. Notwithstanding the
foregoing, Landlord shall, for each tax fiscal year during the Lease Term,
apply for a Proposition 8 reduction in real property taxes and shall use
commercially reasonable efforts to obtain as high a Proposition 8 reduction as
is possible with respect to each such tax fiscal year. Tax refunds shall be
deducted from Tax Expenses in the applicable Expense Year. All special
assessments which may be paid in

	 	 	 	 	 
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installments shall be paid by Landlord in the
maximum number of installments permitted by law and not included in Tax
Expenses except in the year in which the assessment is actually paid; provided,
however, that if the prevailing practice in Comparable Buildings is to pay such
assessments on an early basis, and Landlord pays the same on such basis, such
assessments shall be included in Tax Expenses in the year paid by Landlord.

               4.2.4.3 Notwithstanding anything to the contrary contained in this Section
4.2.4 (except as set forth in Section 4.2.4.1 or levied in whole or part in
lieu of Tax Expenses), there shall be excluded from Tax Expenses (i) all excess
profits taxes, franchise taxes, gift taxes, capital stock taxes, inheritance
and succession taxes, estate taxes, federal and state income taxes, and other
taxes to the extent applicable to Landlord’s general or net income (as opposed
to rents, receipts or income attributable to operations at the Project), (ii)
any items
included as Operating Expenses, (iii) any items paid by Tenant under
Section 4.5 of this Lease, (iv) any tax penalties, and (v) any amounts payable
directly by Tenant or other tenants.

          4.2.5
Additional Limitations on Direct Expenses. Notwithstanding anything
contained in this Article 4 to the contrary, in no event shall the aggregate
amount of (i) the Community Facilities District (Mello-Roos) special tax
applicable to Phase I of the Project (i.e., Building 1 and Building 2) which is
included in Direct Expenses, and (ii) the “Additional Capped Expenses,” as that
term is defined, below, exceed (a) for the calendar year 2003, $534,092.36, and
(b) for any subsequent year, one hundred four percent (104%) of the amount
charged in the preceding year, calculated on a cumulative and compounded basis.
For purposes of this Lease, “Additional Capped Expenses” shall mean any
expenses charged by the master association applicable to the Project (excluding
methane related expenses) and/or the following expenses charged under any other
existing recorded document: (a) computer intranet, (b) landscape maintenance
(re Fountain Park), (c) North Jefferson Entry Monument Reserve, (d) wetlands
conservancy, (e) the Transportation Management Association, and (f) the cost of
the pipeline to the “West Basin Reclamation Project”, if any.

          4.2.6
“Tenant’s Share”, with respect to each Tranche of the Premises and
with respect to the entire Premises, shall mean the percentages set forth in
Section 9 of the Summary. Tenant’s Share was calculated by multiplying the
number of rentable square feet of the Premises by 100 and dividing the product
by the total rentable square feet in the Buildings.

     4.3
Calculation and Payment of Additional Rent.

          4.3.1
Statement of Actual Direct Expenses and Payment by Tenant. As soon
as reasonably possible following the end of each Expense Year, Landlord shall
give to Tenant a statement (the “Statement”), which Statement shall state, on a
line-item by line-item basis, the Direct Expenses incurred or accrued for such
preceding Expense Year. Upon receipt of the Statement for each Expense Year
ending during the Lease Term, Tenant shall pay, within thirty (30) days after
receipt of such Statement, Tenant’s Share of Direct Expenses for such Expense
Year, less the amounts, if any, paid during such Expense Year as “Estimated
Expenses,” as that term is defined in Section 4.3.2, below. In the event the
Statement indicates that the amounts paid by Tenant for such Expense Year as
Estimated Expenses is in excess of Tenant’s Share of Direct Expenses for such
Expense Year, Landlord shall pay to Tenant such overpayment within thirty (30)
days after Landlord’s calculation of the Statement. The failure of

	 	 	 	 	 
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Landlord to
timely furnish the Statement for any Expense Year shall not prejudice Landlord
(provided that in the event that such failure continues for a period of six (6)
months following receipt of Notice from Tenant, Tenant may elect to seek
specific performance) or Tenant from enforcing its rights under this Article 4.
Even though the Lease Term has expired and Tenant has vacated the Premises,
when the final determination is made of Tenant’s Share of the Direct Expenses
for the Expense Year in which this Lease terminates, taking into consideration
that the Lease Expiration Date may have occurred prior to the final day of the
applicable Expense Year, Tenant shall pay to Landlord or Landlord shall pay to
Tenant (in the event of an overpayment by Tenant of Tenant’s Share of Direct
Expenses) an amount as calculated pursuant to the provisions of Section 4.3.1
of this Lease within thirty (30) days of Tenant’s receipt of an invoice
therefor from Landlord or Landlord’s calculation, as applicable. The
provisions of this Section 4.3.1 shall
survive the expiration or earlier termination of the Lease Term.
Notwithstanding the immediately preceding sentence, Tenant shall not be
responsible for Tenant’s Share of any Direct Expenses attributable to any
Expense Year which are first billed to Tenant more than two (2) calendar years
after the earlier of the expiration of the applicable Expense Year or the Lease
Expiration Date, provided that in any event Tenant shall be responsible for
Tenant’s Share of Direct Expenses levied by any governmental authority or by
any public utility companies at any time following the Lease Expiration Date
which are attributable to any Expense Year (provided that Landlord delivers
Tenant a bill (a “Supplemental Statement”) for such amounts within two (2)
years following Landlord’s receipt of the bill therefor).

          4.3.2
Statement of Estimated Direct Expenses. In addition, Landlord shall
give Tenant a yearly expense estimate statement (the
“Estimate Statement”)
which shall, on a line-item by line-item basis, set forth Landlord’s reasonable
and good faith estimate (the “Estimate”) of what the total amount of Direct
Expenses for the then-current Expense Year shall be
(“Estimated Expenses”),
which Estimate Statement may be revised and reissued by Landlord from time to
time. Landlord shall use commercially reasonable efforts to provide an
Estimate Statement to Tenant for each calendar year by May 1 of such calendar
year. The failure of Landlord to timely furnish the Estimate Statement for any
Expense Year shall not preclude Landlord from enforcing its rights to collect
Estimated Expenses under this Article 4 (provided that in the event that such
failure continues for a period of three (3) months following receipt of Notice
from Tenant, Tenant may elect to seek specific performance), nor shall Landlord
be prohibited from revising any Estimate Statement or Estimated Expenses
theretofore delivered to the extent necessary; provided however, any such
subsequent revision shall set forth on a reasonably specific basis any
particular expense increase; provided further, however, that notwithstanding
anything to the contrary contained in this Section 4.3.2, Tenant shall not be
responsible for Tenant’s Share of any Estimated Expenses attributable to any
Expense Year which are first billed to Tenant more than two (2) calendar years
after the earlier of the expiration of the applicable Expense Year or the Lease
Expiration Date, provided that in any event Tenant shall be responsible for
Tenant’s Share of Estimated Expenses levied by any governmental authority or by
any public utility companies at any time following the Lease Expiration Date
which are attributable to any Expense Year (provided that Landlord delivers
Tenant a Supplemental Statement for such amounts within two (2) years following
Landlord’s receipt of the bill therefor). Tenant shall pay, within thirty (30)
days after receipt of such Estimate Statement, a fraction of the Estimated
Expenses (or the increase in the Estimated Expenses if pursuant to a revised
Estimate Statement) for the then-current Expense Year (reduced by any amounts
paid pursuant to the last sentence of this Section 4.3.2). Such fraction

	 	 	 	 	 
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shall
have as its numerator the number of months which have elapsed in such current
Expense Year to the month of such payment, both months inclusive, and shall
have twelve (12) as its denominator. Until a new Estimate Statement is
furnished, Tenant shall pay monthly, with the monthly Base Rent installments,
an amount equal to one-twelfth (1/12) of the total Estimated Expenses set forth
in the previous Estimate Statement delivered by Landlord to Tenant.

          4.3.3
Reviewed Expenses/Base Rent Adjustment.

               4.3.3.1
Calculation. Landlord shall deliver a statement (the “Reviewed
Expense Statement”) of Operating Expenses within one hundred fifty (150) days
following the expiration of the first Lease Year which shall indicate (i)
the amount of “Protected Expenses,” as that term is defined, below, included in
Direct Expenses for the first Lease Year calculated in accordance with the
terms of this Lease, (ii) the amount of the management fee included in Direct
Expenses for the first Lease Year calculated in accordance with the terms of
this Lease grossed up to reflect full occupancy of the Premises with Tenant
paying Base Rent at $17.40 per rentable square foot and with Tenant paying
parking charges for all parking passes in the Maximum Parking Allotment (i.e.,
four (4) passes for each 1,000 usable square feet of the entire Premises), and
(iii) the amount of cleaning expenses (i.e., the sum of the cleaning contract,
cleaning supplies and rubbish removal) included in Direct Expenses for the
first Lease Year, grossed up to reflect full occupancy of the Premises
(collectively, the “Reviewed Expenses”). In the event that the Reviewed
Expenses per rentable square foot of the Project exceed $9.36 (the “Reviewed
Expenses Threshold”), then the annual Base Rent per rentable square foot due
under this Lease for each Tranche shall be retroactively and prospectively
decreased for each Lease Year during the Lease Term for all Tranches by the
amount of such excess. Similarly, in the event that the Reviewed Expenses
Threshold exceeds the Reviewed Expenses per rentable square foot of the
Project, then the annual Base Rent per rentable square foot due under this
Lease shall be retroactively and prospectively increased for each Lease Year
during the Lease Term for all Tranches by the amount of such excess. In the
event that the Base Rent shall be subject to modification pursuant to the terms
of this Lease, the parties shall execute an amendment hereto reflecting the
same. For purposes of this Section 4.3.3, “Protected
Expenses,” shall mean administrative expenses (which shall include only administrative payroll
(including management staff), communications expenses and office
equipment/supplies), non-capitalized elevator expenses (i.e., the cost of the
elevator maintenance contract), security expenses (which shall include only one
officer, twenty-four hours a day, seven (7) days a week and the City of LA
Regulation 4 inspection costs, and fire alarm panel monitoring), parking
expenses (i.e., the cost of the Base Parking Personnel and operational parking
expenses), insurance expenses, and Tax Expenses (inclusive of any reduction
resulting from a Proposition 8 reduction).

               4.3.3.2
Estimated Reviewed Expenses/Supplemental Reviewed Expenses
Statement. Landlord and Tenant hereby acknowledge and agree that the initial
Reviewed Expenses Statement (i) may contain Landlord’s reasonable estimates of
any components of Reviewed Expenses which cannot, as of the date of delivery of
such statement, be finally determined (and the parties shall nevertheless make
adjustments to the Base Rent set forth in this Lease in accordance with the
terms hereof), and (ii) at such time as any such components of Reviewed
Expenses which could not, as of the date of the Landlord’s delivery of the
initial Reviewed Expenses Statement, be finally determined, are finally
determined, Landlord shall deliver a supplemental Reviewed Expenses Statement
(and the parties shall make such further

	 	 	 	 	 
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adjustments to Base Rent in accordance
with the terms of this Section 4.3.3 as may be required). Any amounts which
may be due based upon the Base Rent already paid by Tenant as of the date of
Landlord’s delivery of the initial Reviewed Expenses Statement or the
supplemental Reviewed Expenses Statement, as the case may be, shall, in the
case of amounts due Tenant, be credited against the next Base Rent due from
Tenant, and in the case of amounts due Landlord, be paid to Landlord within
thirty (30) days following receipt by Tenant of the applicable statement. Any
modification of the Base Rent in accordance with the terms hereof shall,
following such determination, be incorporated into an amendment to this Lease.

     4.4 Allocation of Direct Expenses.

          4.4.1 Prior to Commencement of Construction of Building 3. Prior to the
date, if applicable, that Landlord commences construction of Building 3,
Landlord and Tenant hereby acknowledge and agree that (i) so long as the
Landlord under this Lease owns Building 3, Direct Expenses under this Lease
shall include, without limitation, all insurance costs attributable to Building
3, and (ii) Building 3 and a portion of the Project (including the Field) are
on a single tax parcel and that the Tax Expenses shall be reasonably and
equitably allocated by Landlord between the Project and Building 3 on a square
footage of land basis.

          4.4.2 After Building 3 Commencement of Construction. At all times
following the date Landlord commences construction of Building 3, Tax Expenses
and insurance costs shall to the extent incurred or billed on a shared basis
for the Project (or a portion thereof) and Building 3 be allocated by Landlord
to the Project and Building 3 based upon on an equitable and reasonable
determination of the land and improvement value of the Project and Building 3,
respectively; provided however, that insurance and Tax Expenses associated with
the “New Parking Garage,” as that term is defined in Section 28.2 of this
Lease, as well as other Direct Expenses associated with the New Parking Garage,
shall be equitably and reasonably allocated by Landlord to the Project and
Building 3 based upon the number of parking passes in the New Parking by
Landlord Garage made available to the Project and Building 3, respectively.

          4.4.3
Other Terms. During the construction of Building 3, Landlord hereby
acknowledges and agrees that any costs incurred by Landlord in connection with
such construction (including, without limitation, increased utilities and
insurance costs) shall be excluded from Direct Expenses under this Lease.
Except as otherwise set forth in this Section 4.4, Direct Expenses under this
Lease shall include no Direct Expenses associated with Building 3.

     4.5
Taxes and Other Charges for Which Tenant Is Directly Responsible.
Tenant shall reimburse Landlord, as Additional Rent, upon demand for any and
all taxes required to be paid by Landlord (except to the extent included in Tax
Expenses by Landlord), excluding state, local and federal personal or corporate
income taxes measured by the net income of Landlord from all sources and estate
and inheritance taxes, whether or not now customary or within the contemplation
of the parties hereto, when:

          4.5.1 Said taxes are measured by or reasonably attributable to the cost or
value of Tenant’s equipment, furniture, trade fixtures and other personal
property located in the

	 	 	 	 	 
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Premises, or by the cost or value of any leasehold
improvements made in or to the Premises by or for Tenant;

          4.5.2 Said taxes are assessed upon or with respect to the possession,
leasing, operation, management, maintenance, alteration, repair, use or
occupancy by Tenant of the Premises, or any portion of the Project (including,
but not limited to, the Project parking facility); or

          4.5.3 Said taxes are assessed upon this transaction or any document to
which Tenant is a party creating or transferring an interest or an estate in
the Premises.

     4.6
Landlord’s Books and Records. Within two (2) years after Tenant’s
receipt of a Statement or Supplemental Statement, if Tenant disputes the amount
of Additional Rent set forth in the Statement, an employee of Tenant or an
independent certified public accountant (which accountant is not working on a
contingency fee basis), designated by Tenant, may, after reasonable notice to
Landlord and during reasonable times and at Tenant’s sole cost and expense
(except as otherwise provided below), inspect and copy Landlord’s accounting
records with respect to the Expense Year covered by such Statement or
Supplemental Statement at Landlord’s offices in Los Angeles County, California,
provided that Tenant is not then in Monetary Default under this Lease and
Tenant has paid all amounts required to be paid under the applicable Statement
or Supplemental Statement, as the case may be. In connection with such
inspection, Tenant and Tenant’s agents must agree in advance to follow
Landlord’s reasonable rules and procedures regarding inspections of Landlord’s
records, which rules and procedures shall be reasonably consistent with
industry rules and procedures. As a condition precedent to any such
inspection, Tenant shall deliver to Landlord a copy of Tenant’s written
agreement with Tenant’s accountant performing the inspection which states,
among other things, that (i) Landlord is an intended third-party beneficiary of
the agreement and (ii) the accountant performing the inspection shall maintain
all information contained in Landlord’s records in strict confidence. Tenant
also agrees to maintain all information contained in Landlord’s records in
strict confidence. Landlord shall provide Tenant with reasonable
accommodations for such review and reasonable use of available office
equipment, but may charge Tenant for telephone calls at Landlord’s actual cost.
The results of any such inspection shall be provided to Landlord within sixty
(60) days after such inspection is performed. Tenant’s failure to dispute the
amount of Additional Rent set forth in any Statement within two (2) years of
Tenant’s receipt of such Statement or Supplemental Statement, as the case may
be, shall be deemed to be Tenant’s approval of such Statement and Tenant,
thereafter, waives the right or ability to dispute the amounts set forth in
such Statement or Supplemental Statement, as the case may be. In connection
with the review, Landlord shall furnish Tenant with such supporting
documentation relating to the subject Statement as Tenant may reasonably
request. If, after such inspection of Landlord’s records, Tenant disputes the
amount of Direct Expenses for the Expense Year to which such Statement or
Supplemental Statement relates, Landlord and Tenant shall meet and attempt in
good faith to resolve the dispute. If the parties are unable to resolve the
dispute, then Tenant shall have the right to submit the dispute to arbitration
pursuant to Section 29.29, below, and the proper amount of the disputed items
shall be determined by the “Arbitrator,” as that term is defined in Section
29.29, below. The decision of the Arbitrator, including any “Arbitration
Award,” as that term is defined in Section 29.29.3.2, below, shall be
delivered simultaneously to Landlord and Tenant, and shall be final and binding
upon Landlord and

	 	 	 	 	 
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Tenant. If the Arbitrator determines that the amount of
Direct Expenses billed to Tenant was incorrect, the appropriate party shall pay
to the other party the deficiency or overpayment, as applicable, within thirty
(30) days following delivery of the decision of the Arbitrator. All costs and
expenses of Tenant’s accountant and the arbitration shall be paid by Tenant
unless the final determination in such arbitration is that Landlord overstated
Direct Expenses for the applicable Expense Year by more than six percent (6%)
of the originally reported Direct Expenses, in which case Landlord shall pay
all actual, documented and reasonable costs and expenses of the
accountant and the arbitration. Landlord shall be required to maintain
records of all Direct Expenses set forth in each Statement delivered to Tenant
for the entirety of the two (2)-year period following Landlord’s delivery of
any Statement or Supplemental Statement. The payment by Tenant of any amounts
pursuant to this Article 4 shall not preclude Tenant from questioning, during
the Review Period (in accordance with the terms hereof), the correctness of any
Statement or Supplemental Statement delivered by Landlord to Tenant. Tenant
hereby acknowledges that Tenant’s sole right to inspect Landlord’s books and
records and to contest the amount of Direct Expenses payable by Tenant shall be
as set forth in this Section 4.6, and Tenant hereby waives any and all other
rights pursuant to applicable law to inspect such books and records and/or to
contest the amount of Direct Expenses payable by Tenant; provided however, in
no event shall the foregoing constitute a waiver by Tenant of any rights to
pursue any fraud or similar claims against Landlord pertaining to Direct
Expenses to the extent allowable under Applicable Laws.

     4.7 Tenant’s Right to Contest Tax Expenses. After reasonable written
request (the “Tax Notice”) delivered to Landlord by Tenant in good faith,
Landlord shall at Landlord’s option, either (i) diligently pursue reasonable
claims for reductions in the Tax Expenses of either or both Buildings, and the
part of the Project which contains the same, in which event Landlord shall
provide Tenant with detailed information as to how Landlord will pursue such
claims, or (ii) allow Tenant to pursue such claims with Landlord’s concurrence,
in the name of Landlord. If Landlord agrees to pursue such claims or concurs
in the decision to pursue such claims but elects to have them pursued by
Tenant, the reasonable cost of such proceedings shall be paid by Landlord and
included in Tax Expenses in the Expense Year such expenses are paid.

     4.8 Tenant’s Payment of Certain Tax Expenses. Notwithstanding anything to
the contrary contained in this Lease, in the event that, at any time during the
initial Lease Term, any sale, refinancing, or change in ownership of any of the
Buildings or the Project is consummated (in any event, a
“Sale”), and as a
result thereof, and to the extent that in connection therewith, any of the
Buildings or the Project is reassessed (the
“Reassessment”) for real estate tax
purposes by the appropriate governmental authority pursuant to the terms of
Proposition 13, then the terms, covenants and conditions of this Section 4.8
shall apply to such Reassessment of the Building(s) or Project.

          4.8.1 The Tax Increase. For purposes of this Article 4, the term “Tax
Increase” shall mean that portion of the Tax Expenses, as calculated
immediately following the Reassessment, which is attributable solely to the
Reassessment. Accordingly, the term Tax Increase shall not include any portion
of the Tax Expenses, as calculated immediately following the Reassessment,
which (i) is attributable to the initial assessment of the value of the
Project, the base, shell and core of the Buildings or the tenant improvements
located in the Buildings; (ii) is attributable to assessments which were
pending immediately prior to the Reassessment which assessments were conducted
during, and included in, such Reassessment, or which assessments

	 	 	 	 	 
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were otherwise
rendered unnecessary following the Reassessment; or (iii) is attributable to
the annual inflationary increase of real estate taxes, but not in excess of two
percent (2.0%) per annum.

          4.8.2
Protection. During the initial Lease Term, Tenant shall not be
obligated to pay any portion of any Tax Increase in connection with a
Reassessment which
occurs as a result of (i) any sale(s) or partial sale(s) (or
organizational changes which causes a reassessment) to a “Landlord Affiliate,”
as that term is defined below and (ii) the first (1st) sale of the Project to a
non-Landlord Affiliate. For purposes herein, the term “Landlord Affiliate”
shall mean (I)(a) CA-Playa Vista Water’s Edge Limited Partnership, a Delaware
limited partnership, (b) McGuire Partners SCS, Inc., a Delaware corporation,
(c) McGuire Partners-PV Investor Partnership, L.P., California limited
partnership, (d) Maguire Properties Inc., a Maryland corporation, and (e)
Equity Office Properties Trust, a Maryland real estate investment trust, and
(e) Maguire Partners Ltd., a California limited partnership (each of
(I)(a)-(e), a “Landlord Member”), or (II) an entity which is controlled by,
controls or is under common control with Landlord or any Landlord Member, or
(III) an entity which merges with or acquires or is acquired by Landlord or
Landlord Member or a parent, subsidiary or member of Landlord or any Landlord
Member, or (IV) a transferee of substantially all of the assets or stock of
Landlord or any Landlord Member.

          4.8.3 Landlord’s Right to Purchase the Proposition 13 Protection Amount
Attributable to a Particular Reassessment. The amount of Tax Expenses which
Tenant is not obligated to pay or will not be obligated to pay during the
initial Lease Term in connection with a particular Reassessment pursuant to the
terms, covenants and conditions of this Section 4.8, shall be sometimes
referred to hereafter as a “Proposition 13 Protection Amount.” If the
occurrence of a Reassessment is reasonably foreseeable by Landlord and the
Proposition 13 Protection Amount attributable to such Reassessment can be
reasonably quantified or estimated for each Lease Year commencing with the
Lease Year in which the Reassessment will occur, the terms, covenants and
conditions of this Section 4.8.3 shall apply to each such Reassessment. Upon
Notice to Tenant, Landlord shall have the right to purchase the Proposition 13
Protection Amount relating to the applicable Reassessment (the “Applicable
Reassessment”), at any time during the Lease Term, by paying to Tenant an
amount equal to the “Proposition 13 Purchase Price,” as that term is defined in
this Section 4.8.3 of this Lease, provided that the right of any successor of
Landlord to exercise its right of repurchase hereunder shall not apply to any
Reassessment which results from the event pursuant to which such successor of
Landlord became the Landlord under this Lease. As used herein, “Proposition 13
Purchase Price” shall mean the present value of the Proposition 13 Protection
Amount remaining during the Lease Term, as of the date of payment of the
Proposition 13 Purchase Price by Landlord. Such present value shall be
calculated (i) by using the portion of the Proposition 13 Protection Amount
attributable to each remaining Lease Year (as though the portion of such
Proposition 13 Protection Amount benefited Tenant at the end of each Lease
Year), as the amounts to be discounted, and (ii) by using discount rates for
each amount to be discounted equal to (A) the average rates of yield for United
States Treasury Obligations with maturity dates as close as reasonably possible
to the end of each Lease Year during which the portions of the Proposition 13
Protection Amount would have benefited Tenant, which rates shall be those in
effect as of Landlord’s exercise of its right to purchase, as set forth in this
Section 4.8.3, plus (B) one percent (1%) per annum. Upon such payment of the
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provisions of Section 4.8.2 of this Lease
shall not apply to any Tax Increase attributable to the Applicable
Reassessment. Since Landlord is estimating the Proposition 13 Purchase Price
because a Reassessment has not yet occurred, then when such Reassessment
occurs, if Landlord has underestimated the Proposition 13 Purchase Price, then
upon Notice by Landlord to Tenant, Tenant’s Rent next due shall be credited
with the amount of such underestimation, and if
Landlord overestimates the Proposition 13 Purchase Price, then upon Notice
by Landlord to Tenant, Rent next due shall be increased by the amount of the
overestimation. Any dispute between the parties with respect to Landlord’s
estimation of the Proposition 13 Purchase Price shall be resolved by
arbitration pursuant to, and in accordance with, Section 29.29 hereof.

ARTICLE 5

USE OF PREMISES

     Tenant shall use the Premises solely for the “Permitted Use,” as that
term is defined in Section 13 of the Summary, and Tenant shall not use or
permit the Premises to be used for any other purpose or purposes whatsoever
without the prior written consent of Landlord, which may be withheld in
Landlord’s sole discretion. The uses prohibited under this Lease shall
include, without limitation, use of the Premises or a portion thereof for (i)
schools or other training facilities which are not ancillary to corporate,
executive or professional office use (other than exclusively for Tenant’s
employees); (ii) retail (except on-line retail and purchases by employees
and/or invitees of Tenant from Tenant’s company store) or restaurant uses
(other than exclusively for Tenant’s employees); and (iii) communications firms
such as radio and/or television stations. Notwithstanding the foregoing,
Tenant shall have the right, subject to compliance with all applicable
provisions of this Lease, to use the Premises or portions thereof for the
following specific purposes: (A) kitchens, pantries and dining rooms for the
feeding of employees and guests of Tenant; (B) recreation rooms for employees
of Tenant; (C) vending machines and snack bars for the sale of food,
confections, nonalcoholic beverages, newspapers and other convenience items to
employees of Tenant and sales of Tenant’s products and promotional items to
Tenant’s employees and/or invitees at Tenant’s company store; (D) business and
mailroom machines, equipment for printing, producing and reproducing forms,
circulars and other materials used in connection with the conduct of Tenant’s
business; (E) libraries for employees of Tenant; (F) computer and other
electronic data processing; (G) boardrooms and conference rooms; (H) training
and testing rooms for employees and customers of Tenant; (I) facilities for
storage of equipment and supplies in connection with the foregoing; (J) safe
and vault areas; (K) art studio; (L) post production facilities and equipment;
and (M) an audio-visual studio/stage and other video and filming activities.
Notwithstanding the foregoing, in no event shall any of the uses set forth in
items (A) through (M), above, or any non-general office component of the
Permitted Use, as set forth in Section 13 of the Summary, cause odors, sounds,
sound-related vibrations or other odors, noise or vibrations to be smelled,
heard or felt from outside the Project in excess of the level of odors, noise
and vibrations caused by typical general office use. Tenant, at its expense,
shall procure and at all times maintain and comply with the terms and
conditions of all licenses and permits required for the lawful conduct of the
Permitted Use in the Premises. Landlord agrees to reasonably cooperate with
Tenant, at no cost or expense to Landlord, in procuring and maintaining any
such licenses and permits. Tenant further covenants and agrees that Tenant
shall not use, or suffer or permit any person or persons to use, the Premises
or any part thereof for any use or purpose contrary to the Rules and
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laws of the United States of America, the
State of California, or the ordinances, regulations or requirements of the
local municipal or county governing body or other lawful authorities having
jurisdiction over the Project; provided, however, the cost of such compliance
shall be governed by Articles 4 and 24 of this Lease. Tenant shall faithfully
observe and comply with the Rules
and Regulations set forth in Exhibit B attached hereto. Subject to this
Article 5 and any covenants, representations and warranties of Landlord
contained herein, Tenant shall comply with, and this Lease shall be subject to,
all recorded covenants, conditions, and restrictions, declarations, development
agreements, easements, operating agreements or other instruments (including any
amendments and modifications to any such instruments) now or hereafter
affecting the Project, if any (collectively, the “Underlying
Documents”).
Following Notice to Tenant, Tenant agrees that Landlord may, without Tenant’s
prior consent, create any Underlying Documents and/or modify the terms of the
Underlying Documents without affecting Tenant’s subordination of this Lease
thereto, so long as such creations or modifications do not materially,
adversely affect Tenant’s rights under this Lease (including Tenant’s Permitted
Use, Exterior Signage and Tenant access to or use of the Premises, Common
Areas, Field, Special Use Areas and the Project parking facility) or adversely
affect, or monetarily increase, in a material manner, Tenant’s obligations
thereunder or hereunder or changes the character of the Project to something
other than a first-class development. Tenant hereby acknowledges and agrees
that the foregoing may include, without limitation, the creation of covenants,
conditions and restrictions which address rights and obligations set forth in
this Lease which apply to both “Phase I” (i.e., Building 1 and Building 2) and
“Phase II” (i.e., the Field and the Building 3 site), including, without
limitation, the parties rights and obligations under Articles 21 and 28 and the
allocations of costs under Article 4. Landlord may otherwise create any
Underlying Documents and/or modify the Underlying Documents only with Tenant’s
prior written consent, in Tenant’s sole discretion, which shall be granted or
denied by Tenant within thirty (30) days following Landlord’s delivery of such
request to Tenant. To the extent the Underlying Documents are so created or
amended pursuant to the terms of either of the foregoing two (2) sentences,
Tenant, upon request by Landlord, will execute an agreement substantially in
the form of Exhibit K, attached hereto and incorporated herein by this
reference, evidencing Tenant’s subordination to any such amendment or newly
created document within thirty (30) business days following request by
Landlord. Appropriate modifications shall be made to Exhibit K when the same
is to be utilized for a newly created document. Tenant shall not use or allow
another person or entity to use any part of the Premises for the storage, use,
treatment, manufacture or sale of hazardous materials or substances as defined
pursuant to any applicable federal, state or local governmental or
quasi-governmental law, code, ordinance, rule, or regulation. Landlord
acknowledges, however, that Tenant will maintain products in the Premises which
are incidental to the operation of its offices for the Permitted Use, such as
photocopy supplies, secretarial supplies and limited janitorial supplies, which
products contain chemicals which are categorized as hazardous materials.
Landlord agrees that the use of such products in the Premises in compliance
with all Applicable Laws and in the manner in which such products are designed
to be used shall not be a violation by Tenant of this Article 5.

	 	 	 	 	 
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ARTICLE 6

SERVICES AND UTILITIES

     6.1 Standard Tenant Services. Landlord shall provide the following
services at all times and on all days during the Lease Term, unless otherwise
stated below:

          6.1.1 Subject to limitations imposed by all governmental rules,
regulations and guidelines applicable thereto, Landlord shall provide as part
of normal Operating Expenses heating, ventilation and air conditioning (“HVAC”)
as and when required by Tenant for normal comfort for normal office use in the
Premises. The Building’s HVAC system is designed to perform in accordance with
the specifications set forth on Exhibit M, attached hereto. Landlord shall use
commercially reasonable efforts (which may include the requirement that
Landlord expend money) to cause the HVAC system to materially perform in
accordance with such design specifications. Tenant shall designate to Landlord
(or through independent control systems) the number and timing of hours Tenant
desires HVAC for each weekday and each weekend day (the “Tenant Designated HVAC
Hours”), and Landlord shall provide HVAC during the Tenant Designated HVAC
Hours. Landlord shall also cause the HVAC and indoor air quality of the
Buildings’ Common Areas and the Premises to materially comply with for the
entire Lease Term and any periods of occupancy of the Premises or any part
thereof by Tenant prior to the Lease Commencement Date, the standards set forth
in Standard 62-1989 for office occupancy (“Ventilation for Acceptable Indoor
Air Quality”), including both the requirements of the Ventilation Rate
Procedure and Indoor Air Quality Procedure and the maintenance requirements,
recommendations and guidelines contained therein, promulgated by the American
Society of Heating, Refrigerating and Air Conditioning Engineers (“ASHRAE”)
(collectively, the “Indoor Air Quality Standard”); provided, however,
notwithstanding the foregoing, such obligations of Landlord shall not apply to
conditions caused by Tenant’s use or improvements (other than general office
improvements) to the Premises or any act or omission of Tenant or Tenant’s
Parties. In the event the indoor air quality delivered to the Premises or the
Buildings’ Common Areas by the HVAC system (excluding any air delivered by any
supplemental system installed by Tenant) does not meet the Indoor Air Quality
Standard as a result of a condition not caused by Tenant’s use of the Premises
(for non-general office use) or any act or omission of Tenant or Tenant’s
Parties, such condition shall be referred to as a “Sick Building,” and in
addition to any other obligations or liabilities of Landlord and rights and
remedies of Tenant with respect thereto, the terms of Section 7.2 shall apply.
For purposes of this Lease, “Business Hours” of the Buildings shall be Monday
through Friday, during the period from 8:00 a.m. to 6:00 p.m., and on Saturdays
during the period from 9:00 a.m. to 1:00 p.m. (collectively, the “Building
Hours”), except for Sundays and New Year’s Day, Martin Luther King Day,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day
(collectively, the “Holidays”).

          6.1.2 Tenant shall bear the cost of replacement of all lamps, starters and
ballasts for lighting fixtures within the Premises. Landlord and Tenant shall
cause all charges for electricity used within the Project to be billed directly
to Tenant by the electricity supplier, which shall be selected by Landlord;
provided, however, that in the event that Landlord is not an “EOP Affiliate,”
as that term is defined, below, Landlord shall use commercially reasonable
efforts to select an electrical utility supplier that is providing electricity
at substantially competitive rates. Tenant will pay all service establishment
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the Buildings which
shall be paid at Landlord’s sole cost and expense), other service fees which
may be imposed by the supplier in conjunction with its service to Tenant, and
all charges for electric current used within the Project. Tenant shall make
all such payments directly to such electricity supplier as and when bills are
rendered. Should Tenant fail to pay such amounts within five (5) business days
after written notice from the electricity supplier and/or Landlord, as the case
may be that such amounts are past due, Landlord shall have the right to pay
same on
Tenant’s behalf and Tenant shall reimburse Landlord for all costs and
expenses incurred by Landlord in conjunction with such payment within thirty
(30) days after demand therefor. All such costs and expenses incurred by
Landlord on Tenant’s behalf shall be deemed Additional Rent payable by Tenant
and collectible by Landlord as such. All electricity and other utility charges
to the extent paid directly by Tenant shall be excluded from Operating
Expenses. Throughout the Lease Term, Landlord, at Tenant’s expense, shall keep
–all electricity meters and appurtenant equipment in good working order and
condition, and shall repair and if necessary, replace same at Tenant’s sole
cost and expense. At no time shall use of electricity in the Premises exceed
the capacity of existing feeders and risers to or wiring in the Premises.
Notwithstanding the foregoing, Landlord shall bear the cost of the equipment
capable of providing up to 1.5 watts per rentable square foot demand load for
lighting and 5.3 watts per rentable square foot demand load for convenience
power/equipment in Building 1 and 2.7 watts per rentable square foot demand
load for lighting and 6.5 watts per rentable square foot demand load for
convenience power/equipment in Building 2. The foregoing electrical capacity
is (A) exclusive of electricity utilized by base building equipment such as the
Building HVAC system and Building elevators, and (B) applicable to the entirety
of the Premises located in each Building (and not applicable solely on a
floor-by-floor basis). Notwithstanding anything contained herein to the
contrary, Tenant shall bear the expense of horizontally distributing such
electricity to the Premises. Any risers or wiring to meet Tenant’s excess
electrical requirements shall, upon Tenant’s written request, be installed by
Landlord, at Tenant’s sole cost, if, in Landlord’s reasonable judgment, the
same shall not (i) cause permanent damage or injury to the Project, the
Buildings or the Premises, (ii) cause or create a dangerous or hazardous
condition, (iii) entail excessive or unreasonable alterations, repairs or
expenses, or (iv) interfere with or disturb other tenants or occupants of the
Buildings. For purposes of this Lease, an “EOP Affiliate” shall mean (I)(a)
CA-Playa Vista Water’s Edge Limited Partnership, a Delaware limited
partnership, (b) Equity Office Properties Trust, a Maryland real estate
investment trust, (each of (I)(a) and (b), an “EOP Member”), or (II) an entity
which is controlled by, controls or is under common control with Landlord or
any EOP Member, or (III) an entity which merges with or acquires or is acquired
by Landlord or EOP Member or a parent, subsidiary or member of Landlord or any
EOP Member, or (IV) a transferee of substantially all of the assets or stock of
Landlord or any EOP Member.

          6.1.3 Landlord shall, in compliance with all Applicable Laws, provide
facilities for the provision of city water from the regular Building outlets
and for cafeteria, gymnasium, kitchen, drinking, lavatory and toilet and other
Permitted Use purposes.

          6.1.4 Landlord shall enter into a contract for the provision of janitorial
services Monday through Friday, except for the dates of observation of the
Holidays, in and about the Premises at a minimum materially consistent with the
specifications set forth on Exhibit N, attached hereto, provided that Tenant
shall designate the exact scope (and the timing) for the janitorial services
for the Premises (but in no event shall such scope be less than that set

	 	 	 	 	 
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forth
on Exhibit N). Landlord hereby acknowledges that such scope may include,
without limitation, the cleaning of Tenant’s gymnasium and cafeteria, and
Landlord shall cause the janitorial services provider to materially comply with
Tenant’s reasonably requested specifications at Tenant’s expense (at Landlord’s
rates or at otherwise reasonably competitive rates). Landlord shall also
provide window washing services in a manner consistent with the
Comparable Buildings. All cleaning of the Premises shall be performed by
Landlord’s cleaning contractor, as an Operating Expense, at rates which shall
be reasonably competitive with rates of other cleaning contractors providing
comparable services to Comparable Buildings. Landlord’s cleaning contractor
and its employees shall have access to the Premises at such times as are
reasonably selected by Tenant. Notwithstanding the foregoing, Tenant shall,
upon providing Landlord with at least forty-five (45) days prior written
notice, have the right to provide janitorial services which are in addition to
the services provided by Landlord to the extent that Tenant’s janitors do not
unreasonably interfere with the janitorial services provided by Landlord for
the Project and subject to Landlord’s reasonable rules and regulations.
Landlord also acknowledges and agrees that Tenant shall have the right to
request that Landlord replace certain individual janitors providing janitorial
services to the Premises with other janitors employed by Landlord, which
request Landlord shall use commercially reasonable efforts to accommodate.

          6.1.5 Landlord shall provide nonexclusive automatic elevator service at
all times.

          6.1.6 Landlord shall enter into a contract for the provision of access
control, security and supervision services for the Project in accordance with
commercially reasonable specifications designated by Tenant (but in no event
shall be the Project’s security consist of less than one security officer per
eight (8) hour shift, twenty-four (24) hours a day, seven (7) days a week).
Additionally, Landlord shall, at Landlord’s expense, using Project standard
materials, guidelines, specifications and procedures, install a monitored card
or key system serving the Project, Project parking facilities, the “Fence,” as
that term is defined in Section 2.1.2 of the Tenant Work Letter, and the
Project elevators (the “Card Key System”), which Card Key System shall control
access to the Project entrances and have elevator lock-off capability at all
times, subject to governmental laws, rules and regulations, and Force Majeure.
The Fence shall at all times be maintained at the Project and access through
the Fence shall be permitted only by the Card Key System. In addition,
following reasonable prior notice to Landlord, Landlord shall have available,
after Building Hours, an access control person (who may be a “rover”) to escort
employees and invitees of Tenant from the Buildings to the Project parking
facility, and such escort service shall be based on the availability of such
person (provided that Landlord shall use commercially reasonable efforts to
make such person available). Although Landlord agrees to provide such security
personnel, neither Landlord nor the “Landlord Parties,” as that term is
defined in Section 10.1 of this Lease, shall, except as provided in Section
10.1, be liable for, and Landlord and the Landlord Parties are hereby released
from any responsibility for any damage either to person or property sustained
by Tenant incurred in connection with or arising from, any acts or omissions of
such security personnel, provided that Landlord shall remain liable, to the
extent consistent with Applicable Law, for personal injury and property damage
to the extent caused by the negligence or willful misconduct of Landlord’s
security personnel. Landlord shall allow Tenant to install, at its own
expense, its own security system in the Premises and Project, including,
subject to Landlord’s reasonable security procedures, employing security
personnel reasonably approved by Landlord; provided, however that Tenant shall
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installation and operation of such security system with Landlord
to assure that Tenant’s security system is compatible with Landlord’s security
system; provided, further, that no Design Problem exists; provided, however,
that Landlord and Tenant acknowledge and agree that nothing contained in this
Section 6.1.6 shall be construed to limit the rights of Landlord under Article
27 of this Lease. In connection with Tenant’s installation of Tenant’s
security system, Tenant shall provide to Landlord, commencing with the
installation of Tenant’s security system in the Premises, the telephone
number(s) of an authorized representative of Tenant to whom Landlord shall give
reasonable prior notice (as reasonably determined by Landlord under the
circumstances, but in no event less than forty-eight (48) hours prior written
notice, unless in an emergency in which Landlord believes that life, property,
safety, or security is in jeopardy) in the event Landlord must enter the
Premises pursuant to Article 27 hereof, but in no event shall Landlord,
following Landlord’s provision of such reasonable notice to Tenant’s authorized
representative, be obligated to delay Landlord’s entry into the Premises or to
monitor or otherwise operate Tenant’s security system while inside the
Premises.

          6.1.7 Tenant shall be permitted, at its sole cost and expense, to contract
with any telecommunications provider of its choice; provided, however, such
telecommunications provider shall be subject to Landlord’s approval, which
approval shall not be unreasonably withheld, conditioned or delayed; provided,
further, subject to the terms of this Lease, and subject to the reasonable
rules and regulations of Landlord, Landlord shall provide Tenant’s
telecommunications provider(s) access to the Building’s risers and rooftop, for
the purpose of installing any necessary cabling and equipment in accordance
with plans and specifications approved in writing, in advance, by Landlord,
which approval shall not be unreasonably withheld or conditioned and shall be
granted or denied within ten (10) business days.

          6.1.8 Tenant shall be permitted to use the existing bicycle racks located
in the Project parking facility for Tenant’s employee’s bicycles.

          6.1.9 Landlord shall provide a commercially reasonable system pursuant to
which Tenant, in the event of an emergency, may promptly contact the Project
manager and Project engineer or their equivalent twenty-four (24) hours a day
seven (7) days a week (whether or not within Building Hours).

          6.1.10 Subject to the remaining terms of this Lease, Tenant shall have the
right, at Tenant’s sole cost and expense, to bring to the Project such fiber
optic cabling as Tenant shall desire. Landlord shall reasonably cooperate with
Tenant, at Tenant’s sole cost and expense, in connection with Tenant’s securing
access to the fiber optic cabling of Tenant’s choice (including to the extent
reasonably possible and without material adverse effect upon Landlord, at
Tenant’s sole cost and expense, utilizing Landlord’s existing easements and/or
seeking (or cooperating with Tenant to obtain) new easements over adjacent
properties).

          6.1.11 Tenant shall have the right to contract with any internet service
provided desired by Tenant (at Tenant’s sole cost and expense).

     Notwithstanding anything in this Section 6.1 to the contrary, Landlord
acknowledges and agrees that Landlord will not add any new categories of
services (beyond those set forth above and except to the extent relating to
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Landlord’s
obligations pursuant to the terms of this Lease) to the Building without
Tenant’s prior written consent, which consent may be withheld in Tenant’s sole
discretion unless such withholding of consent would cause a Design Problem.
Notwithstanding anything to the
contrary contained in this Lease, including without limitation, Articles 4
and 6, Tenant may, at any time and from time to time, upon thirty (30) days
prior written notice to Landlord, elect to perform or provide all or some of
the following services for the Buildings in lieu of Landlord providing the
same: day porter, handyman, non-Building System engineer, locksmith and the
purchase and provisions of materials and supplies for all or any of the same;
provided, however, that all such other personnel shall abide by Landlord’s
reasonable rules, regulations and procedures; provided further, however, that
to the extent Tenant elects to provide any such items in lieu of having the
Landlord supply the same, then (i) such services shall be provided by Tenant in
a first-class manner (in a manner comparable to the provision of such services
by the landlords of Comparable Buildings), and (ii) the cost and expense of
such items shall not be included in Operating Expenses except to the extent
Landlord incurs costs with respect to such items for the Common Areas.

     6.2
Actual Cost. Landlord shall supply all utilities and services to be
supplied to Tenant under this Lease at Actual Cost to Tenant. If Tenant uses
water or electricity or other services or utilities supplied by Landlord
pursuant to this Lease, whether or not included in Operating Expenses, Tenant
shall pay to Landlord the Actual Cost of such consumption or services. “Actual
Cost” shall be the actual cost charged by third party providers and/or the cost
of installation, operation (but not including utility charges to the extent
separately metered to the Premises and paid by Tenant), and maintenance of
equipment which is installed in order to supply such consumption, without,
however, any charge for profit, overhead or administration. Landlord, at its
cost, may install devices to separately meter any such use. To the extent the
salary of personnel providing services to Tenant is included in Operating
Expenses, Actual Cost shall not include and Tenant shall not be required to pay
an additional amount for use of such personnel (except to the extent such
personnel is utilized by Tenant on an overtime basis). Tenant shall pay such
cost directly to Landlord within thirty (30) days following receipt of a bill
therefor to the extent not included within Operating Expenses. Amounts payable
by Tenant to Landlord for such use of utilities and services shall be deemed
Additional Rent hereunder.

     6.3
Interruption of Use. Tenant agrees that Landlord shall not be liable
for damages, by abatement of Rent (except as provided in Section 19.5.2 of this
Lease) or otherwise, for failure to furnish or delay in furnishing any service
(including telephone and telecommunication services), or for any diminution in
the quality or quantity thereof, when such failure or delay or diminution is
occasioned, in whole or in part, by repairs, replacements, or improvements, by
any strike, lockout or other labor trouble, by inability to secure electricity,
gas, water, or other fuel at the Project after reasonable effort to do so, by
any accident or casualty whatsoever, by act or Default of Tenant or other
parties; and such failures or delays or diminution shall never be deemed to
constitute an eviction or disturbance of Tenant’s use and possession of the
Premises or relieve Tenant from paying Rent (except as provided in Section
19.5.2 of this Lease) or performing any of its obligations under this Lease,
provided, however, that Landlord shall use commercially reasonable and diligent
efforts to restore such service to the extent the restoration of the same is
not the obligation of Tenant, the utility company or other third party.
Furthermore, Landlord shall not be liable under any circumstances for a loss
of, or injury to, property or for injury to, or interference with, Tenant’s
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including, without
limitation, loss of profits, however occurring, through or in connection with
or incidental to a failure to furnish any of the services or utilities as set
forth in this Article 6. Landlord may comply with voluntary controls or
guidelines promulgated by any governmental entity relating to the use or
conservation of energy, water, gas, light or electricity or the reduction of
automobile or other emissions (“Voluntary Compliance”) without creating any
liability of Landlord to Tenant under this Lease, provided that (i) the
Premises are not thereby rendered untenantable, (ii) such controls or
guidelines do not materially interfere with the conduct of Tenant’s Permitted
Use from the Premises, Tenant’s Special Use Areas and the Common Areas, (iii)
Landlord’s compliance with such controls or guidelines is generally consistent
with the practice of landlords of Comparable Buildings and (iv) Tenant’s
monetary obligations hereunder are not materially increased.

     6.4 Tenant HVAC System. Subject to the terms of the Tenant Work Letter or
Article 8 of this Lease, as the case may be, Tenant, at its sole expense, may
install supplemental HVAC systems in the Premises (the “Tenant HVAC System”).
Tenant shall be responsible for the cost of all electricity utilized by the
Tenant HVAC System. At Landlord’s sole option, which option shall be exercised
at the time Landlord grants its consent to Tenant’s installation of the Tenant
HVAC System so long as Tenant includes in its request for consent a “Removal
Designation Reminder,” as that term is defined in Section 8.5 of this Lease, in
the same manner as is required under Section 8.5 of this Lease, Tenant shall
remove the Tenant HVAC System, and repair any damages to the Buildings caused
by such removal, or leave same in the Premises, in which event the same shall
become a part of the realty and belong to Landlord and shall be surrendered
with the Premises upon the expiration or earlier termination of this Lease.

     6.5 HVAC Upgrade Costs. Within ninety (90) days prior to the expiration
of the initial Lease Term, (i) Landlord and Tenant shall mutually and
reasonably agree upon an engineer who is qualified to evaluate the condition of
the HVAC systems and equipment servicing the Buildings which are normally
considered part of a base building HVAC system (to the extent that any such
systems and equipment are impacted by HVAC service utilized by Tenant, the
“HVAC Units”) and associated modification and/or replacement costs (the
“Neutral Engineer”), and (ii) the Neutral Engineer shall evaluate the HVAC
Units. To the extent that the Neutral Engineer shall determine that the
remaining useful life of the HVAC Units (maintaining a level of performance of
such HVAC Units consistent with such units’ design specifications as stated in
Section 15800
 - Part 2.01 of the Project Manual for Water’s Edge - Volume 2 Revised
6/29/2001 and industry standards (the “HVAC Standards”)) shall be less than
five (5) years from the expiration of the initial Lease Term as a result of
excess Tenant use, Tenant shall pay to Landlord an amount equal to the cost
(the “HVAC Upgrade Costs”) to modify or replace, as the case may be, such units
in order to obtain a remaining useful live of five (5) years or more from the
expiration of the initial Lease Term (with performance of such units consistent
with the HVAC Standards), provided that to the extent that such modifications
or replacements shall cause the HVAC Units to have in excess of a five (5) year
remaining useful life from the expiration of the initial Lease Term (with
performance of such units consistent with the HVAC Standards), Tenant shall
only be required to pay to Landlord the product of (a) the HVAC Upgrade Costs,
and (b) a fraction, the numerator of which equals the number of years which
must be added to the current useful life in order to obtain a useful of life of
five (5) years following the expiration of the initial Lease Term and the
denominator of which equals the number of years remaining in the useful life of
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Engineer following such
modifications and/or replacements, as the case may be. Tenant shall pay
amounts due hereunder to Landlord within thirty (30) days of the determination
thereof. Notwithstanding anything contained herein to the contrary, in the
event that, prior to the expiration of the initial Lease term, the HVAC Units
require total or partial replacement or a capital improvement due to excess
Tenant use, the parties shall retain a Neutral Engineer to assess the condition
of the HVAC Units in accordance with the terms hereof, and Tenant shall be
responsible for the costs incurred to cause the new or improved HVAC Units to
have a remaining useful life (with performance of such units consistent with
the HVAC Standards) of five (5) years beyond the expiration of the initial
Lease Term and to the extent that such replacement or capital improvement shall
cause the HVAC Units servicing the Building to have in excess of a five (5)
year remaining useful life beyond the expiration of the initial Lease Term
(with performance of such units consistent with the HVAC Standards), Tenant
shall only be required to pay to Landlord a prorata portion thereof in a manner
consistent with the terms set forth above.

ARTICLE 7

REPAIRS

     7.1
In General. Landlord shall operate and maintain in such condition and
operating order (and shall keep in such repair and condition), in a manner
substantially consistent with the maintenance and operational standards
employed by landlords of Comparable Buildings, the structural and
non-structural portions of the Project (but excluding non-structural portions
of the Premises), including the Common Areas, foundation, floor/ceiling slabs,
roof, curtain wall, exterior glass and mullions, columns, beams, shafts
(including elevator shafts), stairs, parking areas, stairwells, escalators,
elevator cabs, plazas, pavement, sidewalks, curbs, entrances, landscaping, art
work, sculptures, base building men’s and women’s washrooms, Building
mechanical, electrical and telephone closets, and all common and public areas
(collectively, “Building Structure”) and the Base Building mechanical,
electrical, life safety, plumbing, sprinkler systems and HVAC systems and other
Building systems and equipment which were not constructed by Tenant Parties
(collectively, the “Building Systems”) and otherwise operate the Project in a
manner and condition
materially comparable with the standards of operation as are generally
customary for Comparable Buildings. Notwithstanding anything in this Lease to
the contrary, Tenant shall be required to repair the Building Structure and/or
the Building Systems to the extent required because of (i) Tenant’s use of the
Premises for other than normal and customary business office operations, or
(ii) the negligence or willful misconduct of Tenant or the Tenant Parties,
unless and to the extent such damage is covered by insurance carried or
required to be carried by Landlord pursuant to Article 10 and to which the
waiver of subrogation is applicable (such obligation to the extent applicable
to Tenant as qualified and conditioned will hereinafter be defined as the
“BS/BS Exception”). Except as provided as part of Landlord’s obligations set
forth above or elsewhere in this Lease, Tenant shall, at Tenant’s own expense,
pursuant to the terms of this Lease, including without limitation Article 8
hereof, keep the Premises, including all improvements (including all Tenant
Improvements and all Alterations) and fixtures, in good order, repair and
first-class condition at all times during the Lease Term (but such obligation
shall not extend to the Building Structure and the Building Systems except
pursuant to the BS/BS exception). In addition, except as provided as part of
Landlord’s repair obligations set forth above or elsewhere in this Lease,
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under the supervision and subject to
the prior approval of Landlord, and within any reasonable period of time
specified by Landlord, pursuant to the terms of this Lease, including without
limitation Article 8 hereof, promptly and adequately repair all damage to the
Premises and replace or repair all damaged or broken fixtures and appurtenances
(but such obligation shall not extend to the Building Structure and the
Building Systems except pursuant to the BS/BS exception); provided however,
that, at Landlord’s option, but only if Tenant fails to make such repairs and
replacements within thirty (30) days after Notice thereof from Landlord (or
such sooner period of time in the case of an emergency or to otherwise to
protect life and property), Landlord may, but need not, make such repairs and
replacements and Tenant shall pay Landlord the cost thereof, sufficient to
reimburse Landlord for all Actual Costs arising from Landlord’s involvement
with such repairs and replacements to the extent not duplicative of Operating
Expenses and to the extent the work is not performed by people whose salaries
are paid out of Operating Expenses forthwith upon being billed for same.
Landlord may, but shall not be required to, enter the Premises (but except
during emergencies, Landlord may not enter Secured Areas, as defined in Article
27 of this Lease) at all reasonable times to make such repairs, alterations,
improvements and additions to the Premises or to the Project or to any
equipment located in the Project as Landlord shall desire or deem necessary or
as Landlord may be required to do by Applicable Laws; provided, however, except
for emergencies, any such entry into the Premises by Landlord shall be
performed in a manner so as not to materially or adversely interfere with
Tenant’s use of, or ingress or egress to, the Premises and otherwise in
accordance with Article 27. Except as otherwise expressly provided herein,
Tenant hereby waives any and all rights under the benefits of Section 1 of
Section 1932 and Sections 1941 and 1942 of the California Civil Code or under
any similar law, statute, or ordinance now or hereafter in effect.

     7.2 Tenant’s Right to Make Repairs. Notwithstanding any of the terms and
conditions set forth in this Lease to the contrary, if Tenant provides Notice
to Landlord of an event or circumstance which requires the action of Landlord
with respect to repair and/or maintenance of the portions of the Buildings
comprised of full floors which are included in the Premises, including the
Building Structure and/or Building Systems on such floors, which event
or circumstance with respect to the Building Structure or Building Systems
materially or adversely affects the conduct of Tenant’s business from the
Premises, and Landlord fails to commence corrective action within a reasonable
period of time and to thereafter diligently proceed with such efforts to
completion, given the circumstances, after the receipt of such Notice, but in
any event not later than fifteen (15) days after receipt of such Notice in
which to commence such corrective action (except in cases of emergency where
Tenant’s conduct of Tenant’s Permitted Use is adversely and materially
affected, in which case one (1) business day after receipt of such Notice or
such later period of time as is reasonably necessary to commence such
corrective action), then Tenant may proceed to take the required action upon
delivery of an additional five (5) business days’ Notice to Landlord, except in
the case of emergency where no additional notice shall be required, specifying
that Tenant is taking such required action, and if such action was required
under the provisions of this Lease to be taken by Landlord and was not
commenced by Landlord within such five (5) business day period and thereafter
diligently pursued to completion, then Tenant shall be entitled to prompt
reimbursement by Landlord of Tenant’s reasonable costs and expenses in taking
such action plus interest thereon at the Interest Rate. In the event Tenant
takes such action for work that affects the Building Structure and/or the
Building Systems, Tenant shall use only those contractors used by Landlord in
the Buildings for work unless such contractors are unwilling or unable to
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market rates, or timely perform such work, in
any such event Tenant may utilize the services of any other qualified
contractor which normally and regularly performs similar work in Comparable
Buildings. Promptly following completion of any work taken by Tenant pursuant
to the provisions of this Section 7.2, Tenant shall deliver a detailed invoice
of the work completed, the materials used and the costs relating thereto. If
Landlord does not deliver a detailed written objection to Tenant within thirty
(30) days after receipt of an invoice from Tenant, then Tenant shall be
entitled to deduct from Rent payable by Tenant under this Lease, the amount set
forth in such invoice. If, however, Landlord delivers to Tenant, within thirty
(30) days after receipt of Tenant’s invoice, a written objection to the payment
of such invoice, setting forth with reasonable particularity Landlord’s reasons
for its claim that such action did not have to be taken by Landlord pursuant to
the provisions of this Lease or that the charges are excessive (in which case
Landlord shall pay the amount it contends would not have been excessive), then
Tenant shall not then be entitled to such deduction from Rent and the matter
shall proceed to resolution by the selection of an arbitrator to resolve the
dispute, which arbitrator shall be selected and qualified pursuant to the
procedures set forth in Section 29.29 of this Lease. If Tenant prevails in the
arbitration, the amount of the Arbitration Award (which shall include interest
at the Interest Rate from the time of each expenditure by Tenant until the date
Tenant receives such amount by payment or offset and attorneys’ fees and
related costs) may be deducted by Tenant from the Rent next due and owing under
this Lease if Landlord fails to pay such Arbitration Award within thirty (30)
days after it is so awarded.

ARTICLE 8

ADDITIONS AND ALTERATIONS

     8.1 Landlord’s Consent to Alterations. Tenant shall have the right,
without Landlord’s consent but upon five (5) business days prior Notice to
Landlord, to make non-structural additions and alterations which do not create
a Design Problem (“Cosmetic
Alterations”) to the Premises that do not (i) affect the exterior
appearance of the subject Building or (ii) affect the Building Systems or the
Building Structure. Tenant shall also have the right, without the necessity of
obtaining the Landlord’s prior consent, to install phone, computer and
telecommunications lines and cabling that do not affect the Base Building
Systems and are located entirely within the Premises. Except in connection
with Cosmetic Alterations made to the Premises, Tenant may make improvements,
alterations, additions or changes to (A) the Premises, (B) the Building
Structure or the Building Systems, or (C) to the Common Areas and the external
portion of the Buildings, including, without limitation, the “Common Area
Improvements,” as that term is defined in Section 2.1.2 of the Tenant Work
Letter (collectively, the “Common Area Alterations”) (collectively, the
“Alterations”) only upon first procuring the prior written consent of Landlord
to such Alterations, which consent shall be requested by Tenant not less than
ten (10) business days prior to the commencement thereof, and which consent or
approval shall not be withheld, conditioned or delayed by Landlord, unless a
Design Problem exists, provided that with respect to Common Area Alterations,
Landlord’s consent shall be granted or denied in accordance with the procedure
described with respect to Common Area Improvements, as set forth in Section
2.1.2 of the Tenant Work Letter. A “Design Problem” is defined as, and will be
deemed to exist if such Alteration will (i) cause the exterior appearance of
the Building or Project to be inconsistent with a first class office building
project (giving due consideration to the fact that many other first class
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as the Field, the Patio, the
Water Features, and other outdoor areas which are part of the Project); (ii)
adversely or materially affect the Building Structure; (iii) adversely or
materially affect the Building Systems; (iv) fail to comply with Applicable
Laws; (v) conflict with the Underlying Documents (unless Tenant obtains a
waiver thereof); (vi) materially affect the construction, customary operation
(including, without limitation, typical ingress to and egress from Building 3
and the parking facilities servicing the same) or use of Building 3; or (vii)
materially affect Landlord’s ability to comply with Landlord’s obligations
under this Lease (including, without limitation, Article 28) or materially
affect Landlord’s rights under this Lease. The construction of the Tenant
Improvements to the Premises shall be governed by the terms of the Tenant Work
Letter and not the terms of this Article 8 (except as otherwise specifically
set forth herein). Subject to the terms of Article 23 of this Lease, any
Exterior Signage installed by Tenant shall comply with the provisions of this
Article 8; provided, however, that item (i) in the definition of Design Problem
set forth above shall be deemed replaced by the test set forth in Section 23.5
of this Lease as to “Objectionable Name.” Landlord’s failure to respond to
Tenant’s notice within such ten (10) business days following Landlord’s receipt
of Tenant’s Alterations request shall be deemed approval of the Alterations in
question, provided that Tenant’s notice must state in bold face letters on the
first page of such notice the following language: “IF LANDLORD FAILS TO
RESPOND TO THIS LETTER WITHIN TEN (10) BUSINESS DAYS FROM LANDLORD’S RECEIPT OF
THIS LETTER, TENANT’S REQUEST FOR LANDLORD’S APPROVAL OF THOSE CERTAIN
ALTERATIONS DESCRIBED IN THIS LETTER SHALL BE DEEMED TO BE APPROVED BY
LANDLORD.” Upon request, Tenant shall, subject to commercially reasonable
limitations (including, without limitation, vis-à-vis quantity and location of
spaces) receive, free of charge, unreserved parking passes (or parking
validations in lieu of parking passes) in an amount reasonably determined by
Landlord solely for the use by Tenant’s consultants, designers, architects,
contractors,
subcontractors, and agents (but not Tenant or its employees) during the
construction of the Alterations.

     8.2
Manner of Construction. Landlord may impose, as a condition of its
consent to any and all Alterations or repairs of the Premises or about the
Premises, reasonable requirements consistent with the requirements of landlords
of Comparable Buildings (provided that the same shall in any event be
consistent with the terms and conditions of this Lease); provided, however,
that in no event will Landlord require that the Original Tenant executing this
Lease or an Affiliate Assignee provide a completion and/or performance bond in
connection with any such Alterations; provided further, however, that Landlord
may require any such bonds for any Alterations requested by any other of
Original Tenant’s Transferees. If any Alterations will involve the use of or
disturb any Hazardous Material existing in the Premises, Tenant shall comply
with Landlord’s reasonable rules and regulations concerning such Hazardous
Material; provided, however, if such Hazardous Material existed in the Premises
prior to the Lease Commencement Date, and same was not put therein by Tenant,
Landlord shall pay any incremental extra costs incurred by Tenant in connection
with the Alteration resulting from the presence of the Hazardous Materials.
Tenant shall construct such Alterations and perform such repairs (i) using
contractors reasonably approved by Landlord; (ii) in conformance with any and
Applicable Laws and pursuant to a valid building permit, issued by the City of
Los Angeles, (iii) and in conformance with Landlord’s reasonable written
construction rules and regulations. In the event Tenant performs any
Alterations in the Premises which require or give rise to governmentally
required changes to the Base Building pursuant to the terms of Article 24 of
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Lease, Landlord shall make such changes, at Tenant’s expense, the cost of
which shall not exceed Landlord’s actual out-of-pocket cost of the same. The
“Base Building” shall include the Building Structure and the Building Systems.
All work with respect to any Alterations must be done in a good and workmanlike
manner and diligently prosecuted to completion to the end that the Premises
shall at all times be a complete unit except during the period of work. In
performing the work of any such Alterations, Tenant shall have the work
performed in such manner so as not to unreasonably obstruct access to the
Project or any portion thereof, by any other tenant of the Project, and so as
not to unreasonably obstruct the business of Landlord or other tenants in the
Project. Tenant shall not use (and upon Notice from Landlord shall cease
using) contractors, services, workmen, labor, materials or equipment that
disturbs labor harmony with the workforce or trades engaged in performing other
work, labor or services in or about the Buildings or the Project Common Areas.
In addition to Tenant’s obligations under Article 9 of this Lease, upon
completion of any Alterations, at Landlord’s request, Tenant agrees to prepare
and Landlord shall execute if factually correct, and Tenant shall cause a
Notice of Completion to be recorded in the office of the Recorder of the County
of Los Angeles in accordance with Section 3093 of the Civil Code of the State
of California or any successor statute, and Tenant shall deliver to the Project
management office and Landlord shall sign a reproducible copy of the “as built”
drawings of the Alterations as well as all permits, approvals and other
documents issued by any governmental agency in connection with the Alterations.
In the event Tenant fails to so record the Notice of Completion as required
pursuant to this Section 8.2, then such failure shall not, in and of itself,
constitute a default hereunder but Tenant shall indemnify, defend, protect and
hold harmless Landlord and the Landlord Parties from any and all loss, cost,
damage, expense and liability (including, without limitation, court costs and
reasonable attorneys’ fees) in connection with such failure by Tenant to
so record the Notice of Completion as required hereunder.

     8.3
Payment for Improvements. Tenant shall reimburse Landlord for
Landlord’s reasonable out-of-pocket costs and expenses reasonably incurred in
connection with Landlord’s review of any Alterations to the extent such
Alterations could materially adversely affect the Building Structure or the
Building Systems.

     8.4
Construction Insurance. In the event that Tenant makes any
Alterations which cost in excess of $300,000.00, Tenant shall provide Landlord
with evidence that Tenant or Tenant’s contractor carries “Builder’s All Risk”
insurance in an amount reasonably approved by Landlord covering the
construction of such Alterations, and such other insurance as Landlord may
reasonably require, it being understood and agreed that all of such Alterations
shall be insured by Tenant pursuant to Article 10 of this Lease immediately
upon completion thereof. In addition, Landlord may, in its reasonable
discretion, require a Transferee as such term is defined and permitted pursuant
to the provisions of Article 14 of this Lease (other than a Transfer to an
Affiliate), but not Tenant, to obtain a lien and completion bond or some
alternate form of security satisfactory to Landlord in an amount reasonably
sufficient to ensure the lien-free completion of such Alterations and naming
Landlord as a co-obligee.

     8.5 Landlord’s Property. All Alterations and improvements which may be
installed or placed in or about the Premises, and all signs installed in, on or
about the Premises, from time to time, shall be at the sole cost of Tenant
(subject to reimbursement from the Tenant Improvement Allowance) and shall,
unless Landlord requires their removal as provided below,

	 	 	 
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become the property
of Landlord at the expiration of this Lease, except that Tenant may remove any
trade fixtures and personal property, which are not permanently affixed to the
Premises and those items identified in Section 15.2, below, provided Tenant
repairs any damage to the Premises and Buildings caused by such removal and
returns that portion of the Premises to a Base Building condition as reasonably
determined by Landlord; provided, however, that in the event Tenant disputes
Landlord’s determination then such dispute shall be resolved by arbitration
pursuant to Section 29.29 hereof. Landlord may require Tenant, prior to the
expiration or earlier termination of this Lease, to remove any Alterations
which require Landlord’s consent and any other improvements (including the
Tenant Improvements and Tenant’s Exterior Signage) to the extent the same
relate to a non-general office use of space and, when compared to general
office improvements, are substantially more expensive to remove, provided
further, however, that Landlord may, in any event, require Tenant to remove any
stairwells and any Common Area Alterations installed by Tenant in the event
that Landlord shall deliver notice thereof to Tenant at any time prior to the
expiration of the Lease Term, provided that in the event that Tenant’s request
for approval of any particular Common Area Alteration shall include a “Removal
Designation Reminder,” as that term is defined, below, in the manner and
otherwise in accordance with the terms set forth below, then Landlord shall
notify Tenant as to whether Tenant shall be required to remove the subject
Common Area Alteration concurrently with Landlord’s approval thereof (if
applicable). Landlord shall also notify Tenant of its requirement that Tenant
remove any Alteration or improvement (including the Tenant Improvements) in
accordance with the terms hereof concurrently with Landlord’s approval thereof,
provided that, except with respect to the initial Tenant Improvements
constructed in accordance with the
Tenant Work Letter, Tenant’s request for approval shall state in bold face
letters on the first page of the request for Landlord’s consent the following
language (the “Removal Designation Reminder”): “CONCURRENTLY WITH LANDLORD’S
APPROVAL (IF APPLICABLE) OF THE ALTERATIONS OR IMPROVEMENTS DESCRIBED HEREIN,
LANDLORD MUST ELECT, SUBJECT TO THE TERMS OF THE LEASE, WHETHER SUCH
ALTERATIONS OR IMPROVEMENTS SHALL BE REQUIRED TO BE REMOVED BY TENANT.” If
Tenant fails to complete removal required pursuant to the terms of this Section
8.5, and/or to repair any damage caused by the removal of any Alterations or
improvements (including, but not limited to, the Tenant Improvements, Tenant’s
Exterior Signage, and the Common Area Alterations), and/or to return the
affected portion of the Premises, the Buildings and/or the Project to the
condition existing prior to the making of such Alteration or to a condition
consistent with a first class office building project reasonably acceptable to
Landlord with respect to areas affected by Common Area Alterations, then
Landlord may do so and may charge the Actual Cost thereof to Tenant; provided,
however, that in the event Tenant disputes Landlord’s determination then such
dispute shall be resolved by arbitration pursuant to Section 29.29 hereof.

     8.6
Venting/Vertical Penetrations. Subject to the terms of the Tenant
Work Letter and/or this Article 8, as the case may be, Landlord hereby
acknowledges and agrees that Tenant shall have the right to make vertical
penetrations in the Buildings for the purpose of venting for Tenant’s cafeteria
and/or in connection with other matters requiring venting (subject to the
Permitted Use), provided that, notwithstanding anything contained in this Lease
to the contrary, at Landlord’s sole option, concurrently with Landlord’s
consent to any such vertical penetrations (so long as, except with respect to
the initial Tenant Improvements constructed in accordance with the Tenant Work
Letter, Tenant includes in its request for consent the Removal Designation

	 	 	 
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Reminder in the same manner as set
forth in Section 8.5, above), Tenant shall,
prior to the expiration or earlier termination of this Lease, remove any such
vertical penetrations and associated improvements and restore all areas
affected thereby to the condition existing prior to the installation thereof.

ARTICLE 9

COVENANT AGAINST LIENS

     Tenant has no authority or power to cause or permit any lien or
encumbrance of any kind whatsoever, whether created by act of Tenant, operation
of law or otherwise, to attach to or be placed upon the Project, Buildings or
Premises, and any and all liens and encumbrances created by Tenant shall attach
to Tenant’s interest only. Landlord shall have the right at all times to post
and keep posted on the Premises any notice which it deems necessary for
protection from such liens. Tenant covenants and agrees not to suffer or
permit any lien of mechanics or materialmen or others to be placed against the
Project, the Buildings or the Premises with respect to work or services claimed
to have been performed for or materials claimed to have been furnished to
Tenant or the Premises, and, in case of any such lien attaching or notice of
any lien, Tenant reserves the right to contest such lien, provided that Tenant
shall, at its sole cost and expense, provide a bond in accordance with the
California Civil Code, Section 3143. If Tenant does not
timely exercise its right to contest such lien, Tenant covenants and
agrees to cause it to be immediately released and removed of record.
Notwithstanding anything to the contrary set forth in this Lease, in the event
that such lien is not released and removed or bonded over (in accordance with
California Civil Code Section 3143) on or before the date occurring fifteen
(15) days after Notice of such lien is delivered by Landlord to Tenant,
Landlord, at its sole option, may immediately take all action necessary to
release and remove such lien, without any duty to investigate the validity
thereof, and all sums, costs and expenses, including reasonable attorneys’ fees
and costs, incurred by Landlord in connection with such lien shall be deemed
Additional Rent under this Lease and shall be due and payable by Tenant within
thirty (30) days following request of Landlord’s bill therefor.

ARTICLE 10

INSURANCE

     10.1
Indemnification and Waiver. Because Tenant is required to insure all
of its Tenant Improvements, Alterations and its furniture, fixtures and
equipment and because of the requirements to provide waivers of subrogation,
Tenant hereby assumes all risk of damage to Tenant’s property in the Premises,
unless caused by the negligence or willful misconduct of the Landlord Parties,
subject to the terms of the waiver of subrogation set forth below. Tenant
hereby assumes all risk of injury to persons in the Premises from any cause
whatsoever, unless caused by the negligence or willful misconduct of the
“Landlord Parties,” as that term is defined in this Section 10.1. To the
extent not prohibited by Applicable Laws, Tenant agrees that Landlord, its
partners, subpartners, parent organization, affiliates, subsidiaries and their
respective officers, directors, legal representatives, successors, assigns,
agents, servants, employees, and independent contractors and each of them
(collectively, “Landlord Parties”) shall not be liable to Tenant for, and are
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either to persons in
the Premises or property of Tenant in the Premises or resulting from the loss
of use thereof, which damage is sustained by Tenant or by other persons
claiming through Tenant, except for damage to property which Landlord insures
or is required to insure pursuant to the terms of this Lease and except for
injury to persons or damage to property to the extent caused by the negligence
or willful misconduct of the Landlord Parties. Tenant shall indemnify, defend,
protect, and hold harmless the Landlord Parties from any and all loss, cost,
damage, expense and liability (including without limitation court costs and
reasonable attorneys’ fees) (“Claims”) incurred in connection with or arising
from any cause in or on the Premises, and from any negligence or willful
misconduct of Tenant or of any person claiming by, through or under Tenant, its
partners, subpartners, parent organization, affiliates, subsidiaries and their
respective officers, directors, contractors, agents, servants or employees of
Tenant and each of them (collectively, “Tenant Parties”) or any such person, in
or on the Project, either prior to, during, or, if Tenant holds over, after the
expiration of the Lease Term; provided that notwithstanding the foregoing,
Tenant shall not be required to indemnify and hold Landlord or the Landlord
Parties harmless from any Claims by any person, company or entity to the extent
resulting from the negligence or willful misconduct of Landlord or the Landlord
Parties in connection with the Landlord Parties’ activities in the Building or
the Project (except for damage to the Tenant Improvements, Alterations, and
Tenant’s personal property, fixtures, furniture and equipment in the Premises,
to
the extent Tenant is required to obtain the requisite insurance coverage
pursuant to this Lease for any such Tenant Improvements, Alterations or
personal property, fixtures, furniture or equipment), and Landlord hereby so
indemnifies, defends, protects and holds Tenant and Tenant Parties harmless
from any such Claims and from any Claims resulting from injuries to persons
caused by the negligence of willful misconduct of Landlord and/or Landlord
Parties outside of the Premises; provided further that because Landlord is
required to maintain insurance on the Buildings and the Project and Tenant
compensates Landlord for such insurance as part of Tenant’s Share of Direct
Expenses and because of the existence of waivers of subrogation set forth in
Section 10.4 of this Lease, Landlord hereby indemnifies, defends, protects and
holds Tenant harmless from any Claim to any property to the extent such Claim
is covered by such insurance (or would have been covered if Landlord had
carried the insurance required hereunder), even if resulting from the
negligence or willful misconduct of the Tenant Parties. Pursuant to this
Article 10, Tenant’s agreement to indemnify and hold Landlord harmless, and
Landlord’s agreement to indemnify and hold Tenant harmless are not intended to
and shall not relieve any insurance carrier of its obligations under policies
required to be carried by Landlord or Tenant, respectively, pursuant to this
Lease, to the extent such policies cover the results of such negligence or
willful misconduct. The provisions of this Section 10.1 shall survive the
expiration or sooner termination of this Lease with respect to any Claims or
liability arising in connection with any event occurring prior to such
expiration or termination. Notwithstanding anything to the contrary contained
in this Lease, nothing in this Lease shall impose any obligations on Tenant or
Landlord to be responsible or liable for, and each hereby releases the other
from all liability for, consequential damages other than those consequential
damages incurred by Landlord in connection with a holdover of the Premises by
Tenant after the expiration or earlier termination of this Lease.
Notwithstanding the foregoing, for purposes of this Lease, consequential
damages shall not be deemed to include property damage or personal injury
damages.

	 	 	 
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     10.2
Landlord’s Fire and Casualty Insurance.

          10.2.1
In General. Landlord shall insure the Buildings (including the
Building Structure and Building Systems) and the Project during the Lease Term
against loss or damage due to fire and other casualties covered within the
classification of fire and extended coverage, vandalism coverage and malicious
mischief, sprinkler leakage, water damage and special extended coverage. Such
coverage shall be in such amounts, from such companies, and on such other terms
and conditions, as Landlord may from time to time reasonably determine,
provided that to the extent consistent with the practices of landlords of the
Comparable Buildings, such coverage shall (i) be for full replacement of the
Buildings and the Project in compliance with all then existing Applicable Laws;
(ii) provide for rent continuation insurance equal to twelve (12) months’ rent
and (iii) to the extent the Project is not owned (meaning at least a 50%
ownership interest) by or is not controlled by or under common control with an
EOP Affiliate, be with companies and have policies meeting the criteria set
forth in Section 10.3.4(iii) of this Lease. Additionally, at the sole option
of Landlord, such insurance coverage may include the risks of earthquakes
(subject to the terms of Section 10.2.2, below) and/or flood damage and
additional hazards, a rental loss endorsement and one or more loss payee
endorsements in favor of the holders of any mortgages or deeds of trust
encumbering the interest of Landlord in the Building(s) or the ground or
underlying lessors of the Building(s), or any portion thereof.
Notwithstanding the foregoing provisions of this Section 10.2, the
coverage and amounts of insurance required to be carried by Landlord in
connection with the Buildings shall only be required to be comparable to the
coverage and amounts of insurance which are carried by reasonably prudent
landlords of Comparable Buildings. Upon inquiry by Tenant, from time to time,
Landlord shall inform Tenant of all such insurance carried by Landlord. Tenant
shall, at Tenant’s expense, except with respect to the Building Structure and
Building Systems, which is governed by Section 7.1, above, comply with all
customary insurance company requirements pertaining to the use of the Premises.
If Tenant’s conduct or use of the Premises other than for the Permitted Use
causes any increase in the premium for any insurance policies carried by
Landlord, then Tenant shall reimburse Landlord for any such increase. Tenant,
at Tenant’s expense, shall comply with all rules, orders, regulations or
requirements of the American Insurance Association (formerly the National Board
of Fire Underwriters) and with any similar body.

          10.2.2
Landlord’s Earthquake Insurance. Landlord hereby agrees that, as
of the Lease Commencement Date, Landlord shall carry earthquake insurance for
the Project with a 5% deductible and which shall be for the full replacement
cost of the Buildings (the “Earthquake Coverage”). In the event that Landlord
shall elect at any time during the Lease Term not to carry earthquake insurance
or to materially change either component of the Earthquake Coverage from that
maintained as of the Lease Commencement Date (any of which Landlord shall have
the right to do in Landlord’s sole and absolute discretion), then not less than
sixty (60) days prior to the termination of or change in coverage, Landlord
shall deliver notice thereof (the “Insurance Reduction Notice”) to Tenant, in
which event Tenant may, at Tenant’s sole option and at Tenant’s sole cost and
expense, elect to carry its own supplemental earthquake insurance (but the same
shall not affect Landlord’s rights and/or obligation to carry any particular
insurance pursuant to the terms of this Lease). To the extent that Landlord
shall deliver a Insurance Reduction Notice and shall thereafter elect to
materially change either component of the Earthquake Coverage for the Project,
Landlord shall deliver notice thereof to Tenant.

	 	 	 
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     10.3
Tenant’s Insurance. Tenant shall maintain the following coverages in
the following amounts.

          10.3.1 Commercial General Liability Insurance covering the insured against
claims of bodily injury, personal injury and property damage arising out of
Tenant’s operations, assumed liabilities or use of the Premises, including a
Commercial General Liability endorsement covering the insuring provisions of
this Lease and the performance by Tenant of the indemnity agreements set forth
in Section 10.1 of this Lease, for limits of liability not less than: (i)
Bodily Injury and Property Damage Liability  - $5,000,000 each occurrence and
$5,000,000 annual aggregate, and (ii) Personal Injury Liability - $5,000,000
each occurrence and $5,000,000 annual aggregate.

          10.3.2 Physical Damage Insurance covering (i) all office furniture, trade
fixtures, office equipment, merchandise and all other items of Tenant’s
property on the Premises installed by, for, or at the expense of Tenant, (ii)
the “Tenant Improvements,” as that term is defined in the Tenant Work Letter,
and (iii) all other improvements, alterations and additions to
the Premises (excluding the Base Building, Building Structure and Building
Systems). Such insurance shall be written on an “all risks” of physical loss
or damage basis, for the guaranteed replacement cost value new without
deduction for depreciation of the covered items and in amounts that meet any
co-insurance clauses of the policies of insurance and shall include a vandalism
and malicious mischief endorsement, sprinkler leakage coverage and earthquake
sprinkler leakage coverage.

          10.3.3 Workers Compensation Insurance in form and with limits in
accordance with the laws of the State of California, including Occupational
Disease Insurance, and Voluntary Compensation Insurance, and Employer’s
Liability Insurance in the amount of $1,000,000.00 or such greater amount as
may be required by Applicable Law.

          10.3.4
Form of Policies. The minimum limits of policies of insurance
required of Tenant under this Lease shall in no event limit the liability of
Tenant under this Lease. Such insurance shall (i) name Landlord, Landlord’s
Building manager(s) and/or the managers(s) of the Project and any other party
it so specifies, as an additional insured; (ii) specifically cover the
liability assumed by Tenant under this Lease, including, but not limited to,
Tenant’s obligations under Section 10.1 of this Lease; (iii) be issued by an
insurance company having a rating of not less than A-XII in Best’s Insurance
Guide or which is otherwise reasonably acceptable to Landlord and licensed to
do business in the State of California; (iv) be primary insurance as to all
claims thereunder and provide that any insurance carried by Landlord is excess
and is non-contributing with any insurance requirement of Tenant; (v) provide
that said insurance shall not be canceled or coverage changed below the amounts
required hereunder unless thirty (30) days’ prior written notice shall have
been given to Landlord and any mortgagee of Landlord; and (vi) contain a
cross-liability endorsement or severability of interest clause acceptable to
Landlord. Tenant shall deliver certificates thereof to Landlord on or before
the Lease Commencement Date and at least thirty (30) days before the expiration
dates thereof. Landlord and Tenant shall have the right to cover their
respective insurance requirements set forth in this Article 10 pursuant to a
“blanket” coverage, provided that the amounts (based upon allocations of such
umbrella policy) and other conditions required to be satisfied by the terms of
this Article 10 are satisfied by such coverage and provided, further, that, to
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is not owned (meaning at least a 50% ownership interest)
by or is not controlled by or under common control with an EOP Affiliate, the
deductibles under Landlord’s insurance policies do not exceed deductibles
generally carried by institutional landlords of Comparable Buildings.

     10.4
Subrogation. Landlord and Tenant agree to have their respective
insurance companies issuing property damage insurance waive any rights of
subrogation that such companies may have against Landlord or Tenant, as the
case may be, so long as the insurance carried by Landlord and Tenant,
respectively, is not invalidated thereby. As long as such waivers of
subrogation are contained in their respective insurance policies, Landlord and
Tenant hereby waive any right that either may have against the other on account
of any loss or damage to their respective property to the extent such loss or
damage is insurable under policies of insurance for fire and all risk coverage,
theft, or other similar insurance. If either party fails to carry the amounts
and types of insurance required to be carried by it pursuant to this Article
10, in addition to any remedies the other party may have under this Lease, such
failure shall be deemed to be a covenant and agreement by such party to
self-insure with respect to the type and
amount of insurance which such party so failed to carry, with full waiver
of subrogation with respect thereto.

     10.5
Additional Insurance Obligations. Tenant shall carry and maintain
during the entire Lease Term, at Tenant’s sole cost and expense, increased
amounts of the insurance required to be carried by Tenant pursuant to this
Article 10, and such other reasonable types of insurance coverage and in such
reasonable amounts covering the Premises and Tenant’s operations therein, as
may be reasonably requested by Landlord, but in no event shall such increased
amounts of insurance or such other reasonable types of insurance be in excess
of that required by landlords of Comparable Buildings for tenants comparable in
size to Tenant. Notwithstanding anything to the contrary contained in this
Lease, in the event of any termination of this Lease pursuant to Article 11 or
Article 13 below, Tenant shall assign and deliver to Landlord (or to any party
designated by Landlord) all insurance proceeds payable to Tenant under Tenant’s
insurance required under Section 10.3.2(ii) of this Lease for the unamortized
value of the Tenant Improvements (“Landlord’s TI Proceeds”). Any such
amortization shall be calculated on a straight-line basis throughout the
initial Lease Term.

     10.6
Self-Insurance. Notwithstanding the foregoing provisions of this
Article 10, any insurance required to be carried by Tenant pursuant to this
Article 10 may be carried in whole or in part under a plan of self-insurance
maintained by Tenant, which addresses the risks and liability exposures
intended to be covered by the insurance required by this Article 10, provided
that (i) Tenant or Affiliate Assignee maintains a net worth or shareholder’s
equity equal to Five Hundred Million Dollars ($500,000,000) or more in U.S.
Dollars, (ii) Tenant or Affiliate Assignee provides to Landlord from time to
time, upon Landlord’s request therefor, evidence satisfactory to Landlord of
such net worth or shareholder’s equity, and (iii) the self-insurance program
does not violate any laws, statutes, ordinances or governmental regulations or
requirements. In addition, whether or not Tenant self-insures, all references
to insurance proceeds in this Lease shall be deemed to include any and all
proceeds of self-insurance which shall be payable to the same extent, in the
same amounts and to the party entitled to the same, as if actual policies of
insurance set forth in this Article 10 had been obtained. Such self-insurance
shall be treated as if Tenant actually carried a policy containing the required
insurance. For example, the waiver of subrogation provisions set forth in this
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insurance. The provisions of this paragraph
shall be personal to Original Tenant or Affiliate Assignee and shall not apply
to any assignee, sublessee or other transferee of Original Tenant’s or
Affiliate Assignee’s interest in this Lease.

ARTICLE 11

DAMAGE AND DESTRUCTION

     11.1
Repair of Damage to Premises by Landlord. To the extent Landlord
does not have actual knowledge of same, Tenant shall promptly notify Landlord
of any damage to the Premises resulting from fire or any other casualty or any
condition existing in the Premises as a result of a fire or other casualty that
would give rise to the terms of this Article 11. If the Premises, the Building
Structure, the Building Systems or any Common Areas of the Project
serving or providing access to the Premises shall be damaged by fire or
other casualty or be subject to a condition existing as a result of a fire or
other casualty, Landlord shall promptly and diligently, subject to reasonable
delays for insurance adjustment or other matters beyond Landlord’s reasonable
control, and subject to all other terms of this Article 11, restore the Base
Building (including the Building Structure and the Building Systems) and such
Common Areas to substantially the same condition as existed prior to the
casualty, except for modifications required by zoning and building codes and
other Applicable Laws or by the holder of a mortgage on the Buildings or

Project or any other nonmaterial modifications to the Common Areas reasonably
deemed desirable by Landlord, provided access to the Premises, Project parking
facility and any common restrooms serving the Premises shall not be materially
impaired. In connection with the foregoing, Tenant shall provide Landlord with
all insurance proceeds payable under any insurance carried by Tenant pursuant
to the terms of Section 10.2.2 of this Lease (except to the extent applicable
to Tenant’s personal property). Upon the occurrence of any damage to the
Premises, upon notice (the “Landlord Repair Notice”) to Tenant from Landlord,
if the Lease is not terminated, Tenant shall put into a third party escrow
account reasonably acceptable to Landlord (which escrow shall be jointly paid
for by Landlord and Tenant) for distribution to Landlord (or to any party
designated by Landlord) on a progress payment basis upon receipt of the
appropriate conditional and/or unconditional lien releases, all insurance
proceeds payable to Tenant under Tenant’s insurance required under Sections
10.3.2 (ii) and (iii) of this Lease and Landlord shall repair any injury or
damage to the Tenant Improvements and subsequent Alterations installed in the
Premises and shall return such Tenant Improvements and Alterations to their
original condition; provided that (a) if the cost of such repair by Landlord
exceeds the amount of insurance proceeds received by Landlord from Tenant’s
insurance carrier, the incremental cost differential of such repairs shall be
paid by Tenant to Landlord on a progress payment basis (after exhaustion of
insurance proceeds), and (b) Tenant’s insurance proceeds shall be disbursed for
all costs and expenses incurred by Landlord in connection with the repair of
any such damage pursuant to a disbursement procedure mutually approved by
Landlord and Tenant. As long as the Tenant Improvements in the Premises are
rebuilt, Tenant shall be entitled to retain any portion of the proceeds of the
insurance described in Sections 10.3.2 (ii) and (iii) in excess of the cost of
such restoration or if this Lease terminates, Tenant will receive all of such
insurance proceeds to the extent the such proceeds exceed Landlord’s TI
Proceeds. In the event that Landlord does not deliver the Landlord Repair
Notice within sixty (60) days following the date the casualty becomes known to
Landlord, if this Lease does not terminate pursuant to Section 11.2 of this
Lease or for any other reason, Tenant shall, at

	 	 	 
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its sole cost and expense,
repair any injury or damage to the Tenant Improvements installed in the
Premises and shall return such Tenant Improvements to their original condition.
Whether or not Landlord delivers a Landlord Repair Notice, Tenant shall, prior
to the commencement of construction, submit to Landlord, for Landlord’s review
and approval, all plans, specifications and working drawings relating thereto,
and Tenant may select, subject to Landlord’s reasonable approval, the
contractors to perform such improvement work. Such submittal of plans and
construction of improvements shall be performed in substantial compliance with
the terms of the Tenant Work Letter as though such construction of improvements
were the initial construction of the Tenant Improvements. Landlord shall not
be liable for any inconvenience or annoyance to Tenant or its visitors, or
injury to Tenant’s business resulting in any way from such damage or the repair
thereof; provided however, that if such fire or other casualty shall have
damaged the
Premises or Common Areas necessary for Tenant to reasonably conduct
Tenant’s Permitted Use from the Premises, Landlord shall allow Tenant a
proportionate abatement of Rent, during the time and to the extent the Premises
are unfit for occupancy for Tenant’s Permitted Use, and not occupied by Tenant
as a result thereof, including abatement during a commercially reasonable
period of build-out and move time; provided, further, if the Premises is
damaged such that the remaining portion thereof is not sufficient to allow
Tenant to conduct its business operations from such remaining portion and
Tenant does not conduct its business operations therefrom, Landlord shall allow
Tenant a total abatement of Rent during the time and to the extent the Premises
are unfit for occupancy for Tenant’s Permitted Use, and not occupied by Tenant
as a result of the subject damage. In the event that Landlord shall not
deliver the Landlord Repair Notice, Tenant’s right to rent abatement pursuant
to the preceding sentence shall terminate as of the date Tenant should have
completed repairs to the Premises and moved back into the Premises assuming
Tenant used reasonable due diligence in connection therewith.

     11.2
Landlord’s Option to Repair. Notwithstanding the terms of Section
11.1 of this Lease, Landlord may elect not to rebuild and/or restore the
Premises, the Buildings and/or the Project, and instead terminate this Lease by
notifying Tenant in writing of such termination within forty-five (45) days
after Landlord’s discovery of the damage, such Notice to include a termination
date giving Tenant one hundred eighty (180) days to vacate the Premises which
period will be extended by any “Force Majeure,” as that term is defined in
Section 29.13, below, on a day for day basis, but Landlord may so elect only if
(a) the Buildings or Project shall be damaged by fire or other casualty or
cause or be subject to a condition existing as a result of such a fire or other
casualty or cause, whether or not the Premises are affected, and (b) one or
more of the following conditions in (i), (ii) or (iii) immediately below is
present: (i) in the opinion of Landlord’s licensed contractor, the repairs to
be made by Landlord cannot reasonably be completed within two hundred seventy
(270) days of the date of discovery of the damage (when such repairs are made
without the payment of overtime or other premiums); (ii) the holder of any
mortgage on the Buildings and/or the Project, or ground lessor with respect to
the Project and/or the Buildings shall require that the insurance proceeds or
any portion thereof in excess of the “Landlord Damage Contribution” as that
term is defined below, be used to retire the mortgage debt, or shall terminate
the ground lease, as the case may be, and (x) Tenant does not agree to fund the
amount in excess of Landlord’s Damage Contribution required to complete the
appropriate repairs, and (y) Landlord elects not to commence rebuilding or
reconstructing within one (1) year from the date of such damage and
destruction; or (iii) the damage or condition arising as a result of such
damage is not fully covered, except for Landlord Damage Contribution, by
Landlord’s insurance policies (or by the insurance Landlord is required to
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under this Lease) (plus any amounts of insurance received by Landlord
from insurance carried by Tenant pursuant to the terms of Section 10.2.2 of
this Lease (except to the extent applicable to Tenant’s personal property)) and
Landlord elects not to commence rebuilding or reconstructing within one (1)
year from the date of such damage and destruction; provided, however, that if
Landlord does not elect to terminate this Lease pursuant to Landlord’s
termination right as provided above, and the repairs cannot, in the reasonable
judgment of a licensed contractor mutually and reasonably agreed upon by
Landlord and Tenant, be completed within two hundred seventy (270) days after
being commenced, Tenant may elect, no earlier than forty-five (45) days after
Landlord’s discovery of the damage and not later than ninety (90) days after
the date of such damage, to terminate this Lease by written notice to Landlord
effective as of the date specified in
the notice, which date shall not be less than thirty (30) days nor more
than one hundred eighty (180) days after the date such notice is given by
Tenant. At any time, from time to time, after the date occurring forty-five
(45) days after the date of the damage, Tenant may request that Landlord
provide Tenant with a certificate from the licensed contractor set forth above
setting forth such contractor’s opinion of the date of completion of the
repairs and Landlord shall respond to such request within five (5) business
days. For purposes of this Section 11.2, the “Landlord Damage Contribution”
shall initially mean Four Million and No/Dollars ($4,000,000.00); provided,
however, that such amount shall be reduced by an amount equal to Sixty-Six
Thousand Six Hundred Sixty-Six and 67/Dollars ($66,666.67) on the first day of
each month following the last day of the sixtieth (60th) month anniversary of
the Lease Commencement Date. Furthermore, if neither Landlord nor Tenant have
terminated this Lease and the repairs are not actually completed within three
hundred sixty-five (365) days after the date of the discovery of the damage
(which 365-day period shall be subject to extension for events of “Force
Majeure,” as that term is defined in Section 29.13 of this Lease, provided
that, for purposes of this Section 11.2, there shall be specifically excluded
from the definition of Force Majeure, delays resulting from disputes between
Landlord and its insurance companies with respect to the payment of insurance
proceeds), Tenant shall have the right to terminate this Lease within five (5)
business days after the end of such period and thereafter during the first five
(5) business days after each calendar month following the end of such period
until such time as the repairs are Substantially Completed by notice to
Landlord (the “Damage Termination Notice”), effective as of the date set forth
in the Damage Termination Notice (the “Damage Termination Date”), which Damage
Termination Date shall not be less than five (5) business days and not more
than ninety (90) days following the end of such period or each such month, as
the case may be. Notwithstanding the foregoing, if Tenant delivers a Damage
Termination Date to Landlord, then Landlord shall have the right to suspend the
occurrence of the Damage Termination Date for a period of thirty (30) days
after the Damage Termination Date set forth in the Damage Termination Notice by
delivering to Tenant, within five (5) business days of Landlord’s receipt of
the Damage Termination Notice, a certificate of Landlord’s contractor
responsible for the repair of the damage certifying that it is such
contractor’s good faith judgment that the repairs shall be substantially
completed within thirty (30) days after the Damage Termination Date. If
repairs shall be substantially completed prior to the expiration of such thirty
(30) day period, then the Damage Termination Notice shall be of no force or
effect but if the repairs shall not be substantially completed within such
thirty (30) day period, then this Lease shall terminate upon the expiration of
such thirty (30) day period. If Landlord undertakes repair and/or restoration
pursuant to this Article and thereafter determines that it will not be able to
complete the same within the three hundred sixty-five (365) day period set
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promptly notify Tenant thereof (a “Revised
Completion Date Notice”) and shall provide Tenant with Landlord’s revised
estimate of the date upon which Landlord will complete the same (“Revised
Completion Date”). Landlord shall have the right, subject to the terms hereof,
to deliver one (1) or more Revised Completion Date Notices. Within ten (10)
business days after Tenant’s receipt of a Revised Completion Date Notice,
Tenant shall have the right to elect to terminate this Lease or to agree to
extend the three hundred sixty-five (365) day period to the Revised Completion
Date. Tenant’s failure to elect to terminate or to extend such
time period to the Revised Completion Date by written notice to Landlord
within such ten (10) business day period shall be conclusively deemed to be
Tenant’s election to extend the time to the Revised Completion Date. Upon any
such termination of this Lease pursuant to this Article 11, Tenant shall pay
the monthly Base Rent and Additional Rent, properly apportioned up to such date
of termination and both parties hereto shall thereafter be freed and discharged
of all further obligations hereunder, except as provided for in provisions of
this Lease which by their terms survive the expiration or earlier termination
of the Lease Term.

     11.3
Waiver of Statutory Provisions. The provisions of this Lease,
including this Article 11, constitute an express agreement between Landlord and
Tenant with respect to any and all damage to, or destruction of, all or any
part of the Premises, the Buildings, or the Project, and any statute or
regulation of the State of California, including, without limitation, Sections
1932(2) and 1933(4) of the California Civil Code, with respect to any rights or
obligations concerning damage or destruction in the absence of an express
agreement between the parties, and any other statute or regulation, now or
hereafter in effect, shall have no application to this Lease or any damage or
destruction to all or any part of the Premises, the Buildings, or the Project.

     11.4
Damage Near End of Term. Notwithstanding anything to the contrary in
this Article 11, in the event that the Premises, Common Areas, or the Buildings
are destroyed or damaged to any substantial extent during the final eighteen
(18) months of the Lease Term (provided that any Option Term exercised by
Tenant pursuant to the terms of this Lease shall be considered for purposes of
determining whether eighteen (18) months remain in the Lease Term), either
Landlord or Tenant may terminate this Lease by notice to the other party (the
“Casualty Termination Notice”) within thirty (30) days after the discovery of
such damage, and (a) this Lease shall be deemed to have terminated on the date
which is ninety (90) days following the date the Casualty Termination Notice is
given, (b) Tenant shall vacate the Premises on the termination date and
surrender the same to Landlord, (c) Tenant’s liability for Rent shall cease as
of the termination date, and (d) any prepaid Rent for any period after the
termination date shall be refunded by Landlord to Tenant. For purposes of this
Section 11.4, the Premises shall be deemed substantially damaged or destroyed
if Tenant shall be precluded from using more than twenty-five percent (25%) of
the Premises for the conduct of its business and Tenant’s inability to so use
the Premises is reasonably expected to continue for more than ninety (90) days
or portions of the Project other than the Premises shall be substantially
damaged or destroyed and the time for repair of the same exceeds ninety (90)
days. Notwithstanding the foregoing, in the event that Landlord exercises its
right to terminate under this Section 11.4 during the initial Lease Term,
Tenant shall have the right, to the extent that (i) Tenant retains an
unexercised right to renew the term of Tenant’s lease of the Premises and (ii)
more than sixteen (16) months remain in the then Lease Term, to reject
Landlord’s exercise by notifying Landlord in writing within fifteen (15) days
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exercise of
Tenant’s option to extend the Lease Term pursuant to Section 2.2 above;
provided, however, that Tenant’s right to reject Landlord’s termination under
this Section 11.4 shall not apply in the event Landlord exercises any other
termination rights set forth in this Lease.

ARTICLE 12

NON-WAIVER

     Except as provided for herein as a “deemed waiver,” no provision of this
Lease shall be deemed waived by either party hereto unless expressly waived in
a writing signed by such waiving party, and no express waiver shall affect any
provision other than the one specified in such waiver and that one only for the
time and in the manner specifically stated. No receipt of monies by Landlord
from Tenant after the termination of this Lease shall in any way alter the
length of the Lease Term or of Tenant’s right of possession hereunder or after
the giving of any notice shall reinstate, continue or extend the Lease Term or
affect any notice given Tenant prior to the receipt of such monies, it being
agreed that after the service of notice or the commencement of a suit or after
final judgment for possession of the Premises, Landlord may receive and collect
any Rent due, and the payment of said Rent shall not waive or affect said
notice, suit or judgment. Tenant’s payment of any Rent hereunder shall not
constitute a waiver by Tenant of any breach or default by Landlord under this
Lease nor shall Landlord’s payment of monies due Tenant hereunder constitute a
waiver by Landlord of any breach or Default by Tenant under this Lease. No
payment by Tenant or receipt or acceptance by Landlord of a lesser amount than
the correct Rent due shall be deemed to be other than a payment on account, nor
shall any endorsement or statement on any check or any letter accompanying any
check or payment be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord’s right to recover the
balance, treat such partial payment as a default or pursue any other remedy
provided in this Lease or at law.

ARTICLE 13

CONDEMNATION

     If twenty-five percent (25%) or more of the Premises, either Building, or
the Project shall be taken by power of eminent domain or condemned by any
competent authority for any public or quasi-public use or purpose and if as a
result thereof Tenant cannot conduct its business operations in substantially
the same manner such business operations were conducted prior to such taking
while still retaining substantially the same material rights and benefits it
bargained to receive under this Lease, or if Landlord shall grant a deed or
other instrument in lieu of such taking by eminent domain or condemnation as a
result thereof, Landlord and Tenant shall each have the option to terminate
this Lease upon ninety (90) days’ Notice to the other party, provided such
Notice is given no later than one hundred eighty (180) days after the date of
such taking, condemnation, reconfiguration, vacation, deed or other instrument.
If more than twenty-five percent (25%) of the rentable square feet of the
Premises is taken, or if access to the Premises is substantially impaired,
Tenant shall have the option to terminate this Lease upon ninety (90) days’
Notice, provided such Notice is given no later than one hundred eighty (180)
days after the date of such taking. Landlord shall be entitled to receive the
entire award or payment in connection therewith, except that Tenant shall have
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to Tenant for any taking of
Tenant’s personal property and fixtures belonging to Tenant and removable by
Tenant upon expiration of the Lease Term pursuant to the terms of this Lease,
and for moving expenses, and such claim is payable separately to Tenant or is
otherwise separately
identifiable. Notwithstanding anything in this Article 13 to the
contrary, Landlord and Tenant shall each be entitled to receive fifty percent
(50%) of the “bonus value” of the leasehold estate in connection therewith,
which bonus value shall be equal to the difference between the Rent payable
under this Lease and the sum established by the condemning authority as the
award for compensation. All Rent shall be apportioned as of the date of such
termination, or the date of such taking, whichever shall first occur. If any
part of the Premises shall be taken, and this Lease shall not be so
terminated, the Rent shall be proportionately abated. Tenant hereby waives any
and all rights it might otherwise have pursuant to Section 1265.130 of the
California Code of Civil Procedure.

ARTICLE 14

ASSIGNMENT AND SUBLETTING

     14.1 Transfers. Tenant shall not, without the prior written consent
(except as provided in Section 14.6, below) of Landlord, which consent shall
not be unreasonably withheld, conditioned or delayed, assign, mortgage, pledge,
hypothecate, encumber, or permit any lien to attach to, or otherwise transfer,
this Lease or any interest hereunder, permit any assignment or other such
foregoing transfer of this Lease or any interest hereunder by operation of law,
sublet the Premises or any part thereof, or permit the non-temporary, non-short
term use of the Premises by any persons other than Tenant and its employees
(all of the foregoing are hereinafter sometimes referred to collectively as
“Transfers” and any person to whom any Transfer is made or sought to be made is
hereinafter sometimes referred to as a “Transferee”). If Tenant shall desire
Landlord’s consent to any Transfer, Tenant shall notify Landlord in writing,
which Notice (the “Transfer Notice”) shall include (i) the proposed effective
date of the Transfer, which shall not be less than fifteen (15) days after the
date of delivery of the Transfer Notice, (ii) a description of the portion of
the Premises to be transferred (the “Subject Space”), (iii) all of the terms of
the proposed Transfer and the consideration therefor, the name and address of
the proposed Transferee, and a copy of all existing and/or proposed
documentation pertaining to the proposed Transfer (but not any documentation
relating solely to the sale (if any) of Tenant’s or an Affiliate’s business to
such Transferee), including all existing operative documents to be executed to
evidence such Transfer or the agreements incidental or related to such Transfer
but only to the extent that any such documentation and/or documents actually
exist and, upon request from Landlord, Tenant’s good faith estimated
calculation of the “Transfer Premium,” if any, as that term is defined in
Section 14.3, below, in connection with such Transfer, (iv) financial
information of the proposed Transferee certified by an officer, partner or
owner thereof, and any other information reasonably required by Landlord, which
will enable Landlord to determine the financial responsibility, character, and
reputation of the proposed Transferee, nature of such Transferee’s business and
proposed use of the Subject Space, and (v) such other information as Landlord
may reasonably require. Any Transfer requiring Landlord’s consent hereunder
which is made without Landlord’s prior written consent shall, at Landlord’s
option, be null, void and of no effect. Landlord shall approve or disapprove
of the proposed Transfer in accordance with Section 14.2, below, within fifteen
(15) days (the “Review Period”) after Landlord’s receipt of the applicable
Transfer Notice. In the event that Landlord fails to notify Tenant in writing
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such approval or disapproval within such Review Period, Landlord shall be
deemed to have approved such Transfer. Whether or not Landlord shall
grant consent, Tenant shall pay Landlord’s reasonable and actual out-of-pocket
costs and expenses, including attorneys’ fees and costs, incurred by Landlord
in connection with its review of a proposed Transfer, within thirty (30) days
after written request by Landlord, provided that such cost and expenses shall
not exceed Two Thousand Five Hundred Dollars ($2,500.00) for a Transfer, except
that such Two Thousand Five Hundred Dollar ($2,500.00) limitation shall be
increased to Five Thousand Dollars ($5,000.00) in connection with an assignment
of this Lease and in connection with a sublease of all or substantially all of
the Premises.

     14.2
Landlord’s Consent. Landlord shall not unreasonably withhold its
consent to any proposed Transfer of the Subject Space to the Transferee on the
terms specified in the Transfer Notice. The parties hereby agree that it shall
only be deemed to be reasonable under this Lease and under any Applicable Law
for Landlord to withhold consent to any proposed Transfer where only one or
more of the following apply:

          14.2.1 The Transferee is of a character or reputation or engaged in a
business which is not consistent with the quality of the Project as reflected
by the then existing tenants of Comparable Buildings with respect to comparable
space and the Permitted Use;

          14.2.2 The Transferee is either a governmental agency or instrumentality
thereof (i) which is that of a foreign country, (ii) which is of a character or
reputation, is engaged in a business, or is of, or is associated with, a
political orientation or faction, which is inconsistent with the quality of the
Project, or which would otherwise reasonably offend a landlord of a comparable
building located in the vicinity of the Project, (iii) which is capable of
exercising the power of eminent domain or condemnation, or (iv) which would
significantly increase the human traffic in the Premises, the subject Building,
and/or the Project, unless Landlord, with respect to the Project, has leased
space to, or approved subleases with, comparable (in terms of use, security
issues, express or implied power of eminent domain, reputation, character and
size of space in the Project) governmental agencies or instrumentalities
thereof;

          14.2.3 The Transferee’s intended use of the Premises is inconsistent with
the Permitted Use;

          14.2.4 The Transferee is not a party of reasonable financial worth and/or
financial stability in light of the responsibilities involved under the
Transfer on the date consent is requested; or

          14.2.5 The proposed Transfer would cause Landlord to be in violation of an
exclusive right granted by Landlord in good faith in another lease or agreement
to which Landlord is a party, or would give an occupant of the Project a right
to cancel its lease as a result of the proposed use to be made of the space by
the sublessee or assignee, provided that upon request from Tenant, Landlord
shall provide Notice of all applicable exclusive rights.

     Notwithstanding anything to the contrary in this Lease, if Tenant or any
proposed Transferee claims that Landlord has unreasonably withheld, conditioned
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under Section 14.2 or otherwise has breached or acted unreasonably under
this Article 14, Tenant hereby waives any right at law or equity to terminate
this Lease, on its own behalf and, to the extent permitted under all Applicable
Laws, on behalf of the proposed Transferee but Tenant retains the right to sue
Landlord for any damages suffered by Tenant and/or for specific performance if
Landlord unreasonably withholds, conditions or delays its consent to a proposed
Transfer (other than damages or injury to, or interference with, Tenant’s
business including, without limitation, loss of profits, however occurring but
not excluding loss of profits Tenant would have been able to claim pursuant to
Section 14.3 of this Lease). If Landlord consents to any Transfer pursuant to
the terms of this Section 14.2, Tenant may within six (6) months after
Landlord’s consent, but not later than the expiration of said six-month period,
enter into such Transfer of the Premises or portion thereof, upon substantially
the same terms and conditions as are set forth in the Transfer Notice furnished
by Tenant to Landlord pursuant to Section 14.1 of this Lease, provided that if
there are any changes in the terms and conditions from those specified in the
Transfer Notice (i) such that Landlord would initially have been entitled to
refuse its consent to such Transfer under this Section 14.2, or (ii) which
would cause the proposed Transfer to be more favorable to the Transferee than
the terms set forth in Tenant’s original Transfer Notice, Tenant shall again
submit the Transfer to Landlord for its approval and other action under this
Article 14.

     14.3
Transfer Premium. If Landlord consents to a Transfer, as a condition
thereto which the parties hereby agree is reasonable, Tenant shall pay to
Landlord fifty percent (50%) of any “Transfer Premium,” as that term is defined
in this Section 14.3, actually received by Tenant from such Transferee.
“Transfer Premium” shall mean all rent, additional rent or other consideration
payable (in lieu of or in addition to rent) by such Transferee in connection
with the Transfer (as opposed to the sale of the business) in excess of the
Rent and Additional Rent payable by Tenant under this Lease during the term of
the Transfer, on a per rentable square foot basis if less than all of the
Premises is transferred, after deducting the reasonable expenses incurred by
Tenant in connection with such Transfer for (i) any improvement allowance or
other economic concessions (space planning allowance, moving expenses, etc.)
paid by Tenant to Transferee in connection with such Transfer, including any
unamortized value of tenant improvements in excess of Forty-Five Dollars
($45.00) and up to Seventy-Five Dollars ($75.00) per rentable square foot in
the Transferred Space paid for by Tenant; (ii) any brokerage commission
incurred by Tenant in connection with the Transfer, (iii) reasonable attorneys’
fees incurred by Tenant (including attorneys’ fees paid to Landlord) in
connection with the Transfer, (iv) any costs to buy-out or takeover the
previous lease of a Transferee; (v) out-of-pocket costs of advertising the
space that is the subject of the Transfer and (vi) the aggregate amount of Base
Rent and Additional Rent paid by Tenant during the period prior to the
commencement of the term of the transfer during which Tenant does not occupy
the subject space, commencing on and after the Downtime State Date (as defined
below) (collectively, “Subleasing Costs”). The “Downtime Start Date” shall
mean the later of (A) the date which Tenant vacates and does not reoccupy the
subject space and delivers Notice of the same to Landlord, and (B) the date
Tenant enters into a listing agreement for the subject space with a reputable
broker, and provides Landlord with Notice thereof; provided, however, in no
event will Subleasing Costs for space not yet occupied by Tenant (and not
occupied by Tenant merely as a subterfuge of this provision) include any Base
Rent and Additional Rent paid by Tenant to Landlord for a period of time in
excess of six (6) months. “Transfer Premium” shall also include, but not
be limited to, key money and bonus money or other cash consideration for rent
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to Tenant in connection with such
Transfer (as opposed to the sale of the business), and any payment in excess of
fair market value for services rendered by Tenant to Transferee or for assets,
fixtures, inventory, equipment, or furniture transferred by Tenant to
Transferee in connection with such Transfer; provided, however, under no
circumstances shall Landlord be paid any Transfer Premium until Tenant has
recovered all Subleasing Costs for such Transferred Space, it being understood
that if in any year the gross revenues, less the deductions set forth and
included in Subleasing Costs, are less than any and all costs actually paid in
assigning or subletting the affected space (collectively, “Transaction Costs”),
the amount of the excess Transaction Costs shall be carried over to the next
year and then deducted from net revenues with the procedure repeated until a
Transfer Premium is achieved. Notwithstanding anything contained in this
Section 14.3 to the contrary, no Transfer Premium shall be due in connection
with Tenant’s sublease to Playa Capital Company, LLC (“Playa Capital”) as
executed concurrently with this Lease (the “Playa Capital Sublease”).

     14.4
[Intentionally Omitted.]

     14.5
Effect of Transfer. If Landlord consents to a Transfer, (i) the
terms and conditions of this Lease shall in no way be deemed to have been
waived or modified, (ii) such consent shall not be deemed consent to any
further Transfer by either Tenant or a Transferee, (iii) Tenant shall deliver
to Landlord, promptly after execution, an original executed copy of all
documentation pertaining to the Transfer in form reasonably acceptable to
Landlord, (iv) Tenant shall furnish upon Landlord’s request a complete
statement, certified by an independent certified public accountant, or Tenant’s
chief financial officer, setting forth in detail the computation of any
Transfer Premium Tenant has derived and shall derive from such Transfer, and
(v) no Transfer relating to this Lease or agreement entered into with respect
thereto, whether with or without Landlord’s consent, shall relieve Tenant or
any guarantor of the Lease from liability under this Lease. Landlord or its
authorized representatives shall have the right at all reasonable times to
audit the books, records and papers of Tenant relating to any Transfer, and
shall have the right to make copies thereof. If the Transfer Premium
respecting any Transfer shall be found understated by more than three percent
(3%), Tenant shall, within thirty (30) days after demand, pay the deficiency
and Landlord’s costs of such audit (otherwise Landlord shall be obligated to
pay such audit costs).

     14.6
Non-Transfers. Notwithstanding anything to the contrary contained in
this Article 14, an assignment or subletting of all or a portion of the
Premises to (a) an entity which is controlled by, controls or is under common
control with Tenant or an Affiliate of Tenant; (b) an entity which merges with
or acquires or is acquired by Tenant or a parent or Affiliate, or a subsidiary
of Tenant’s parent or Affiliate, (c) a transferee of all or substantially all
of the assets of Tenant or an entity which is controlled by, controls or is
under common control with Tenant, or (d) a transfer, by operation of law or
otherwise, in connection with the merger, consolidation or other reorganization
of Tenant or of an entity which is controlled by, controls or is under common
control with Tenant (a, b, c and d to be collectively be referred to herein as
an “Affiliate”) along with any other entity which will qualify as an
“affiliate” under
California General Corporations Code Sections 150 and 5031, shall not be
deemed a Transfer under this Article 14 (and shall not entitle Landlord to any
Transfer Premium or require the Landlord’s consent), provided that (i) Tenant
promptly notifies Landlord of any such assignment or sublease and promptly
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Landlord regarding such assignment or
sublease or such Affiliate; and (ii) such assignment or sublease is not a
subterfuge by Tenant to avoid its obligations under this Lease. For purposes
of this Lease, “control” shall mean the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a
person or entity, or majority ownership of any sort, whether through the
ownership of voting securities, by contract or otherwise. No such sublease or
assignment, as the case may be, shall relieve Tenant from any liability under
this Lease.

     14.7
Business Affiliates; Trading of Tenant’s Shares.

          14.7.1 Notwithstanding anything to the contrary contained this Article 14,
Tenant shall have the right, without Landlord’s consent and without the payment
of the Transfer Premium, but upon prior written notice to Landlord, to
sublease, license or let or otherwise permit occupancy of, up to an aggregate
of 75,000 square feet of the Premises to individuals, clients, agents or
independent contractors (each a “Business Affiliate”) which sublease, license
or occupancy agreement, as the case may be, to a Business Affiliate shall be on
and subject to all of the following conditions: (i) Tenant shall either have a
business relationship (relating to the primary business of Tenant conducted in
the Premises) with each such Business Affiliate (including without limitation,
Tenant’s joint venturers, contractors, subcontractors and other entities with
which Tenant has any sort of business relationship (other than that relating
primarily to the subject subtenant’s/occupant’s occupancy)) or Tenant shall
have at least a ten percent (10%) voting or equity interest in such Business
Affiliate; (ii) all such Business Affiliates shall be of a character and
reputation consistent with the quality of the Project and of Comparable
Buildings; and (iii) such Business Affiliates shall use the Premises in
conformity with the all applicable provisions of this Lease. No such sublease
or assignment, as the case may be, shall relieve Tenant from any liability
under this Lease. Tenant’s sublease to Playa Capital shall be deemed not to be
a sublease to a Business Affiliate pursuant to the terms of this Section
14.7.1.

          14.7.2 The provisions of this Article 14 shall not apply to the transfer
of stock or other beneficial ownership interest in Tenant if and so long as
Tenant is publicly traded on a nationally recognized stock exchange.

ARTICLE 15

SURRENDER OF PREMISES; REMOVAL
OF TRADE FIXTURES

     15.1
Surrender of Premises. No act or thing done by any Landlord Parties
or Tenant during the Lease Term shall be deemed to constitute an acceptance by
Landlord of a surrender of the Premises unless such intent is specifically
acknowledged in a writing signed by Landlord and Tenant. The delivery of keys
to the Premises to any Landlord Parties shall not constitute a surrender of the
Premises or effect a termination of this Lease, whether or not the keys are
thereafter retained by Landlord, and notwithstanding such delivery Tenant shall
be entitled to the return of such keys at any reasonable time upon request
until this Lease shall have been terminated. The voluntary or other surrender
of this Lease by Tenant, whether accepted by Landlord or not, or a mutual
termination hereof, shall not work a merger, and at the option of Landlord
shall operate as an assignment to Landlord of all subleases or subtenancies
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     15.2 Removal of Tenant Property by Tenant. All articles of Tenant’s
personal property, furniture (whether bolted or otherwise), furnishings,
business machines and equipment and trade fixtures (whether or not affixed to
the Premises), signs, communications equipment, moveable partitions, security
equipment, networking equipment and viewing screens, a/v and video equipment,
built-in television sets or projection screens, telecommunications equipment,
seating, projectors and other items bolted in place, free-standing cabinet
work, chillers, computer systems, furnishings, blowers, the uninterrupted power
supply machinery and equipment and other articles of personal property or other
property unique to Tenant’s operations and owned by Tenant or installed or
placed by Tenant in the Premises, including the Tenant HVAC System owned by
Tenant or installed by Tenant at its expense in the Premises, shall remain the
property of Tenant, and may be removed by Tenant at any time during the Lease
Term, provided that the foregoing shall not reduce or alter Tenant’s obligation
to remove personal property or other items or improvements to the extent set
forth in this Lease. Upon the expiration of the Lease Term, or upon any
earlier termination of this Lease, Tenant shall, subject to the provisions of
this Article 15, quit and surrender possession of the Premises to Landlord in
as good order and condition as when Tenant took possession and as thereafter
improved by Landlord and/or Tenant, reasonable wear and tear, damage by
casualty and repairs which are specifically made the responsibility of Landlord
hereunder excepted. Upon such expiration or termination, Tenant shall, without
expense to Landlord, remove or cause to be removed from the Premises all debris
and rubbish, and such items of furniture, equipment, free-standing cabinet
work, and other articles of personal property owned by Tenant or installed or
placed by Tenant at its expense in the Premises, and such similar articles of
any other persons claiming under Tenant, as Landlord may, in its sole
discretion, require to be removed, and Tenant shall repair at its own expense
all damage to the Premises and Buildings resulting from such removal.

ARTICLE 16

HOLDING OVER

     If Tenant holds over after the expiration of the Lease Term or earlier
termination thereof such tenancy shall be from month-to-month only, and shall
not, except as set forth below, constitute a renewal hereof or an extension for
any further term, and in such case Base Rent shall be payable at a monthly rate
equal to the product of (i) the Base Rent applicable during the last rental
period of the Lease Term under this Lease, and (ii) one hundred twenty-five
percent (125%). Such month-to-month tenancy shall be subject to every other
term, covenant and agreement contained herein. Nothing contained in this
Article 16 shall be construed as consent by Landlord to any holding over by
Tenant, and Landlord expressly reserves the right to require Tenant to
surrender possession of the Premises to Landlord as provided in this Lease upon
the expiration or other termination of this Lease. The provisions of this
Article 16 shall not be deemed to limit or constitute a waiver of any other
rights or remedies of Landlord provided herein or at law. Tenant acknowledges
that if Tenant holds over without Landlord’s consent, such holding over may
compromise or otherwise affect Landlord’s ability to enter into new leases with
prospective tenants regarding the Premises. Therefore, if Tenant fails to
surrender the Premises upon the termination or expiration of this Lease, in
addition to any other liabilities to Landlord accruing therefrom, Tenant shall,
except as otherwise expressly provided in this Lease, protect, defend,
indemnify and hold Landlord harmless from all loss, costs (including reasonable
attorneys’ fees) and liability resulting from such failure, including, without
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the generality of the foregoing, any claims made by any succeeding
tenant founded upon such failure to surrender, and any losses suffered by
Landlord, including lost profits to Landlord, resulting from such failure to
surrender.

ARTICLE 17

ESTOPPEL CERTIFICATES

     Within fifteen (15) business days following a request in writing by
Landlord or Tenant, Tenant or Landlord, as the case may be, shall execute and
deliver to the requesting party (the “Requesting Party”) an estoppel
certificate, which shall be substantially in the reasonable form of Exhibit E,
attached hereto, (or such other commercially reasonable form as may be required
by any prospective mortgagee or purchaser of the Buildings, the Project, or any
portion thereof or by any assignee or sublessee), indicating therein any
exceptions thereto that may exist at that time, and shall also contain any
other information reasonably requested by the Requesting Party or Landlord’s
mortgagee or prospective mortgagee or purchasers or Tenant’s Transferee, as the
case may be. Appropriate modifications shall be made to Exhibit E when Tenant
is the Requesting Party. Landlord or Tenant shall execute and deliver whatever
other instruments may be reasonably required for such purposes. At any time
during the Lease Term, Landlord may require Tenant to provide Landlord with a
publicly available current financial statement and publicly available financial
statements of the two (2) years prior to the current financial statement year.
Such statements shall be prepared in accordance with generally accepted
accounting principles and, if such is the normal practice of Tenant, shall be
audited by an independent certified public accountant. Any such statements
shall be provided only to the extent they exist, in the form that they exist. The failure of Tenant or
Landlord, as the case may be, to timely execute and deliver such estoppel
certificate or other instruments upon five (5) business additional days Notice
from the Requesting Party advising the other party of the consequences of a
non-response, shall constitute an acceptance of the Premises and an
acknowledgment by the other party that statements included in the estoppel
certificate are true and correct, without exception.

ARTICLE 18

SUBORDINATION

     Subject to Tenant’s receipt of an appropriate non-disturbance agreement(s)
as set forth below, this Lease is subject and subordinate to all future ground
or underlying leases of the Project and/or the Buildings, and to the lien of
any mortgages or trust deeds, now or hereafter in force against the Project
and/or the Buildings, if any, and to all renewals, extensions, modifications,
consolidations and replacements thereof, and to all advances made or hereafter
to be made upon the security of such mortgages or trust deeds, unless the
holders of such mortgages or trust deeds, or the lessors under such ground
lease or underlying leases, require in writing that this Lease be superior
thereto. Landlord acknowledges and agrees that Landlord’s delivery to Tenant
of a commercially reasonable non-disturbance agreement (“Non-Disturbance
Agreement”) in favor of Tenant from any ground lessors, mortgage holders or
lien holders of Landlord who later come into existence at any time prior to the
expiration of the Lease Term shall be in consideration of, and a condition
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provisions of this Article
18. Such commercially reasonable Non-Disturbance Agreement(s) shall include
the obligation of any such successor ground lessor, mortgage holder or lien
holder (“Lien Holder”) to recognize Tenant’s rights specifically set forth in
this Lease and Landlord’s obligations to comply with the provisions of this
Lease, including all extension options of Tenant and the obligation to
recognize Tenant’s Rent offsets rights (as and to the extent set forth in this
Lease) with respect to the Tenant Improvement Allowance and the Cresa Partners’
Commission and the right of Tenant to otherwise receive certain credits against
Rent as set forth herein. Landlord represents and warrants to Tenant that, as
of the date of this lease, no deed of trust holders or ground lessors exist
with respect to the Project. Tenant covenants and agrees in the event any
proceedings are brought for the foreclosure of any such mortgage, to attorn to
the purchaser upon any such foreclosure sale. Tenant shall, within fifteen
(15) business days of request by Landlord, execute such further instruments or
assurances as Landlord may reasonably deem necessary to evidence or confirm the
subordination or superiority of this Lease to any such mortgages, trust deeds,
ground leases or underlying leases in accordance with the provisions of this
Article 18.

ARTICLE 19

DEFAULTS; REMEDIES

     19.1 Defaults. The occurrence of any of the following shall constitute a
default of this Lease by Tenant a (“Default”):

          19.1.1 Any failure by Tenant to pay any Rent or any other charge required
to be paid under this Lease, or any part thereof, within five (5) business days
of Notice that the same is past due (“Monetary Default”), which Notice shall be
in lieu of any Notice required under California Code of Civil Procedure Section
1161 or any similar or successor law; or

          19.1.2 Any failure by Tenant to observe or perform any other provision,
covenant or condition of this Lease to be observed or performed by Tenant where
such failure continues for thirty (30) days after written Notice thereof from
Landlord to Tenant; provided however, that any such Notice shall be in lieu of,
and not in addition to, any notice required under California Code of Civil
Procedure Section 1161 or any similar or successor law; and provided further
that if the nature of such default is such that the same cannot reasonably be
cured within a thirty (30) day period, Tenant shall not be deemed to be in
default if it diligently commences such cure within such period and thereafter
diligently proceeds to rectify and cure said default, as soon as possible; or

          19.1.3 To the extent permitted by law, a general assignment by Tenant or
any guarantor of the Lease for the benefit of creditors, or the taking of any
corporate action in furtherance of bankruptcy or dissolution whether or not
there exists any proceeding under an insolvency or bankruptcy law, or the
filing by or against Tenant or any guarantor of any proceeding under an
insolvency or bankruptcy law, or the appointment of a trustee or receiver to
take possession of all or substantially all of the assets of Tenant or any
guarantor, or any execution or other judicially authorized seizure of all or
substantially all of Tenant’s assets located upon the Premises or of Tenant’s
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     19.2
Remedies Upon Default. Upon the occurrence of a Default by Tenant,
Landlord shall have, in addition to any other remedies available to Landlord at
law or in equity, the option to pursue any one or more of the following
remedies, each and all of which shall be cumulative and, subject to the terms
hereof, nonexclusive, without any Notice or demand whatsoever.

          19.2.1 Terminate this Lease, in which event Tenant shall immediately
surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may,
without prejudice to any other remedy which it may have for possession or
arrearages in rent, enter upon and take possession of the Premises and expel or
remove Tenant and any other person who may be occupying the Premises or any
part thereof, without being liable for prosecution or any claim or damages
therefor; and Landlord may recover from Tenant the following:

               (i) The worth at the time of award of any unpaid rent which has been
earned at the time of such termination; plus

               (ii) The worth at the time of award of the amount by which the unpaid rent
which would have been earned after termination until the time of award exceeds
the amount of such rental loss that Tenant proves could have been reasonably
avoided; plus

               (iii) The worth at the time of award of the amount by which the unpaid
rent for the balance of the Lease Term after the time of award exceeds the
amount of such rental loss that Tenant proves could have been reasonably
avoided; plus

               (iv) Any other amount necessary to compensate Landlord for all the
detriment proximately caused by Tenant’s failure to perform its obligations
under this Lease as allowed under all Applicable Laws; and

               (v) At Landlord’s election, such other amounts in addition to or in lieu
of the foregoing as may be permitted from time to time by Applicable Law.

     The term “rent” as used in this Section 19.2 shall be deemed to be and to
mean all sums of every nature required to be paid by Tenant pursuant to the
terms of this Lease, whether to Landlord or to others. As used in Paragraphs
19.2.1(a) and (b), above, the “worth at the time of award” shall be computed by
allowing interest at the rate set forth in Article 25 of this Lease, but in no
case greater than the maximum amount of such interest permitted by law. As
used in Paragraph 19.2.1(c) above, the “worth at the time of award” shall be
computed by discounting such amount at the discount rate of the Federal Reserve
Bank of San Francisco at the time of award plus one percent (1%).

          19.2.2 In the event the Lease has not been terminated, Landlord shall have
the remedy described in California Civil Code Section 1951.4 (lessor may
continue lease in effect after lessee’s breach and abandonment and recover Rent
as it becomes due, if lessee has the right to sublet or assign, subject only to
reasonable limitations). Accordingly, if Landlord does not elect to terminate
this Lease on account of any Default by Tenant, Landlord may, from time to
time, without terminating this Lease, enforce all of its rights and remedies
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     19.3 Subleases of Tenant. Subject to the terms of Section 14.7 above, if
Landlord elects to terminate this Lease, Landlord shall have the right to
terminate any and all subleases, licenses, concessions or other consensual
arrangements for possession entered into by Tenant and affecting the Premises
or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such
subleases, licenses, concessions or arrangements. In the event of Landlord’s
election to succeed to Tenant’s interest in any such subleases, licenses,
concessions or arrangements, Tenant shall, as of the date of Notice by Landlord
of such election, have no further right to or interest in the rent or other
consideration receivable thereunder.

     19.4 No Waiver of Redemption by Tenant. Nothing herein shall be deemed to
constitute a waiver of Tenant’s right to redeem, by order or judgment of any
court or by any legal process or writ, Tenant’s right of occupancy of the
Premises after any termination of this Lease.

     19.5 Landlord Default.

          19.5.1 General. Notwithstanding anything to the contrary set forth in
this Lease, Landlord shall be in default in the performance of any obligation
required to be performed by Landlord pursuant to this Lease if (i) in the event
a failure by Landlord is with respect to the payment of money, Landlord fails
to pay such unpaid amounts within five (5) business days of Notice from Tenant
that the same was not paid when due; (ii) the failure of Landlord to perform
according to the provisions of Article 17 of this Lease for more than ten (10)
business days after Notice from Tenant or (iii) in the event a failure by
Landlord is other than (i) and (ii) above, Landlord fails to perform such obligation within a reasonable time period
with the expenditure of diligent efforts, but in no event more than thirty (30)
days after the receipt of Notice from Tenant specifying in detail Landlord’s
failure to perform; provided, however, if the nature of Landlord’s obligation
is such that more than thirty (30) days are required for its performance, then
Landlord shall not be in default under this Lease if Landlord commences such
performance within such thirty (30) day period and thereafter diligently pursue
the same to completion. Upon any such default by Landlord under this Lease,
Tenant may, except as otherwise specifically provided in this Lease to the
contrary, exercise any of its rights provided at law or in equity.

          19.5.2 Abatement of Rent. In the event that Tenant is prevented from
using, and does not use, the Premises or any portion thereof, as a result of
(i) any repair, maintenance or alteration performed by Landlord (including
repairs, maintenance and alterations required or permitted by Landlord
hereunder), or which Landlord failed to perform, after the Lease Commencement
Date and required by this Lease, which substantially interferes with Tenant’s
use of or ingress to or egress from the Buildings, Project, or Premises or the
Project parking facility; (ii) any failure to provide services, utilities or
ingress to and egress from the Buildings, Project, or Premises or the Project
parking facility; (iii) damage and destruction of or eminent domain proceedings
in connection with the Premises, the Buildings, the Project or the Project
parking facility servicing the Project, or (iv) the presence of Hazardous
Materials (including, without limitation, methane) (not brought on the Premises
by Tenant Parties) in violation of Applicable Laws which poses a material
health risk to the environment or the Premises (any such set of circumstances
as set forth in items (i) through (iv), above, to be known as an “Abatement
Event”), then Tenant shall give Landlord Notice of such Abatement Event, and if
such Abatement Event continues for five (5) consecutive business days after
Landlord’s receipt of any such Notice, or occurs for ten (10) non-consecutive
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(provided Landlord is sent a Notice
pursuant to Section 29.14 of this Lease of each of such Abatement Event) (in
either of such events, the “Eligibility Period”), then the Base Rent and
Tenant’s Share of Direct Expenses and Tenant’s parking charges shall be abated
or reduced, as the case may be, after expiration of the Eligibility Period for
such time that Tenant continues to be so prevented from using, and does not
use, the Premises, or a portion thereof, in the proportion that the rentable
area of the portion of the Premises that Tenant is prevented from using, and
does not use (“Unusable Area”), bears to the total rentable area of the
Premises and Landlord shall pay to Tenant, to the extent covered (except for
any deductible amount) by insurance retained by Landlord, any incremental
reasonable, out of pocket expense that the Tenant incurs in relocating the
functions previously performed in the Unusable Area to a different location.
For this purpose, an incremental expense shall be any expense that the Tenant
incurs in relocating from the Unusable Area to a temporary location and then
relocating back to the Unusable Area (after such area has been made fit for
Tenant’s Permitted Use) that Tenant would not have had to incur but for such
relocation; provided, however, in the event that Tenant is prevented from
using, and does not use, the Unusable Area for a period of time in excess of
the Eligibility Period and the remaining portion of the Premises is not
sufficient to allow Tenant to effectively conduct its business therein, and if
Tenant does not conduct its business from such remaining portion, then for such
time after expiration of the Eligibility Period during which Tenant is so
prevented from effectively conducting its business therein, the Base Rent and
Tenant’s Share of Direct Expenses and Tenant’s parking charges for the entire
Premises shall be abated for such time as Tenant continues to be so prevented
from using, and does not use, the Premises. If, however, Tenant reoccupies any portion of the Premises
during such period, the Rent allocable to such reoccupied portion, based on the
proportion that the rentable area of such reoccupied portion of the Premises
bears to the total rentable area of the Premises, shall be payable by Tenant
from the date Tenant reoccupies such portion of the Premises. If Tenant’s
right to abatement occurs during a free rent period which arises after the
Lease Commencement Date, Tenant’s free rent period shall be extended for the
number of days that the abatement period overlapped the free rent period
(“Overlap Period”). Landlord shall have the right to extend the Lease
Expiration Date for a period of time equal to the Overlap Period if Landlord
sends a Notice to Tenant of such election within ten (10) days following the
end of the extended free rent period. Such right to abate Base Rent, Tenant’s
Share of Direct Expenses and Tenant’s parking charges shall be Tenant’s sole
and exclusive remedy at law or in equity for an Abatement Event; provided,
however, that (a) nothing in this Section 19.5.2, shall impair Tenant’s rights
under Section 19.5.1, above, and (b) if Landlord has not cured such Abatement
Event within two hundred seventy (270) days after receipt of Notice from Tenant
(or, in the event that the Premises or the Buildings are rendered inaccessible
to Tenant by a casualty or act of Landlord, two hundred seventy (270) days
following the date of Landlord’s actual knowledge of the occurrence of the
Abatement Event), Tenant shall have the right to terminate this Lease during
the first ten (10) business days of each calendar month following the end of
such 270-day period until such time as Landlord has cured the Abatement Event,
which right may be exercised only by delivery of thirty (30) days’ Notice to
Landlord (the “Abatement Event Termination Notice”) during such ten (10)
business-day period, and shall be effective as of a date set forth in the
Abatement Event Termination Notice (the “Abatement Event Termination Date”),
which Abatement Event Termination Date shall not be less than thirty (30) days,
and not more than one (1) year, following the delivery of the Abatement Event
Termination Notice. Notwithstanding anything contained in this Section 19.5.2
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Notice shall be null and
void (but only in connection with the first Notice sent by Tenant with respect
to each separate Abatement Event) if Landlord cures such Abatement Event within
such thirty (30) day period following receipt of the Abatement Event
Termination Notice. If Tenant’s right to abatement occurs because of an
eminent domain taking, condemnation and/or because of damage or destruction to
the Premises, the Project’s parking facility, and/or the Project, Tenant’s
abatement period shall continue until Tenant has been given sufficient time,
and sufficient ingress to, and egress from the Premises, to rebuild such
portion it is required to rebuild, to install its property, furniture,
fixtures, and equipment to the extent the same shall have been removed as a
result of such damage or destruction or temporary taking and to move in over a
weekend. To the extent Tenant is entitled to abatement because of an event
covered by Articles 11 or 13 of this Lease, then the Eligibility Period shall
not be applicable. Notwithstanding the foregoing, Tenant shall not have the
right to terminate this Lease pursuant to the terms of this Section 19.5.2, if,
as of the date of delivery by Tenant of the Abatement Event Termination Notice,
(A) the first trust deed holder of either or both Buildings (the “Bank”) has
recorded a notice of default on either or both Buildings or filed a notice
evidencing a legal action by the Bank against Landlord on either or both
Buildings, and (B) the Bank diligently proceeds to gain possession of the
Premises and, to the extent Bank does gain possession of the Premises, the Bank
diligently proceeds to cure such Abatement Event. Except as provided in this
Section 19.5.2, nothing contained herein shall be interpreted to mean that
Tenant is excused from paying Rent due hereunder. In connection with the
foregoing, to the extent (A) any repair, maintenance or alteration performed by Landlord
(including repairs, maintenance and alterations required or permitted by
Landlord hereunder), or which Landlord failed to perform, after the Lease
Commencement Date and required by this Lease, which substantially interferes
with Tenant’s use of or ingress to or egress from the Special Use Areas, and/or
(B) any failure to provide services, utilities or ingress to and egress from
the Special Use Areas (“Non-Abatement Events”), Tenant shall not be entitled to
an abatement of Rent pursuant to the terms of this Section 19.5.2, provided
that Tenant shall, subject to the terms of Section 19.5.1, above, be entitled
to all available remedies at law or in equity (or, if a dispute arises in
connection therewith, Tenant shall be entitled to arbitrate the same in
accordance with the terms of Section 29.29 of this Lease).

          19.5.3 Landlord Bankruptcy Proceeding. In the event that the obligations
of Landlord under this Lease are not performed during the pendency of a
bankruptcy or insolvency proceeding involving Landlord as the debtor, or
following the rejection of this Lease in accordance with Section 365 of the
Bankruptcy Code, then notwithstanding any provision of this Lease to the
contrary, Tenant shall have the right to set off against the Rent next due and
owing under this Lease (a) any and all damages caused by such non-performance
of Landlord’s obligations under this Lease by Landlord, debtor-in-possession,
or the bankruptcy trustee, and (b) any and all damages caused by the
non-performance of Landlord’s obligations under this Lease following any
rejection of this Lease in accordance with Section 365 of the Bankruptcy Code.

     19.6 Efforts to Relet. For the purposes of this Article 19, Tenant’s
right to possession shall not be deemed to have been terminated by efforts of
Landlord to relet the Premises, by its acts of maintenance or preservation with
respect to the Premises, or by appointment of a receiver to protect Landlord’s
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merely
illustrative of acts which may be performed by Landlord without terminating
Tenant’s right to possession.

ARTICLE 20

ATTORNEYS’ FEES

     If either party commences litigation against the other for the specific
performance of this Lease, for damages for the breach hereof or otherwise for
enforcement of any remedy hereunder, the parties hereto agree to and hereby do
waive any right to a trial by jury and, in the event of any such commencement
of litigation, the prevailing party shall be entitled to recover from the other
party such costs and reasonable attorneys’ fees as may have been incurred.

ARTICLE 21

LANDLORD’S RIGHT TO CONSTRUCT BUILDING 3

     21.1
In General. Tenant hereby acknowledges and agrees that Landlord
shall have the right, at Landlord’s sole option, to construct Building 3 to the
North of the “Building 3 Lot Line” depicted on Exhibit A-2, attached hereto.
Landlord shall not commence construction of Building 3 and/or the parking facilities to be constructed concurrently therewith
(the “Building 3 Project”) until such time as Landlord has obtained all
applicable permits for the construction and development thereof (including full
building permits). Landlord shall use commercially reasonable efforts to
notify Tenant between sixty (60) and ninety (90) days prior to the commencement
of the Building 3 Project.

     21.2
Timing/Manner of Construction. Landlord shall complete construction
of the Building 3 Project (including the Field as required by Section 21.3,
below) within sixteen (16) months from the commencement of the construction
thereof (with commencement of construction evidenced by the commencement of
demolition of the Surface Parking Lot and/or the Field (excluding Landlord’s
conduct of test borings and/or indicator piles)) (the “Building 3 Construction
Period”), provided that Tenant hereby acknowledges that such Building 3
Construction Period shall be subject to extension to extent of any delays
resulting from “Force Majeure Delays,” as that term is defined in Section 5.1
of the Tenant Work Letter (provided that the reference in the definition of
Force Majeure Delay to “constructing improvements comparable to the Tenant
Improvements” shall be deemed for this purpose to mean “constructing
improvements comparable to the Building 3 Project”. During the period of
Landlord’s construction of Building 3 (if applicable), notwithstanding anything
in this Lease to the contrary, but subject to the terms set forth below in this
Section 21.2, Landlord shall have the right to modify the manner in which
Tenant’s parking rights set forth in this Lease are provided to Tenant in any
manner whatsoever reasonably determined by Landlord, provided that Tenant shall
at all times have the right to the Maximum Parking Allotment (which shall be
located on the Project and/or the Building 3 site). In connection with the
foregoing, during the Building 3 Construction Period, Landlord and Tenant
hereby acknowledge and agree that, notwithstanding anything in this Lease to
the contrary, (i) Landlord shall have the right to implement an unlimited
amount of aisle parking, (ii) Landlord shall cause the time period for
retrieval of Tenant’s cars to be materially consistent with the normal time
period in which Tenant’s cars are retrieved prior to the

	 	 	 
	 	 	
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Building 3
Construction Period (and any incremental costs to maintain such level of
service shall be the responsibility of Landlord and shall not be an Operating
Expense), and (iii) to the extent that any persons other than Tenant, those
receiving parking passes from Tenant and/or Tenant’s visitors shall be
permitted to park in the Existing Parking Facilities (e.g., visitors to the
Playa Vista Visitor’s Center), then Landlord shall provide security personnel,
at Landlord’s cost and not as an Operating Expense, to reasonably maintain
Tenant’s secure environment, provided that Landlord shall first park any such
persons (excluding handicap vehicles) in the Playa Capital designated parking
area (including aisles) to the extent such space is available.

     21.3
Demolition/Re-Construction of Field. Except as otherwise provided
for herein, Tenant hereby acknowledges and agrees that the Field shall be
demolished during the Building 3 Construction Period and that Landlord shall
have no liability in connection therewith nor shall any Rent abate as a result
thereof. Subject to the terms hereof, Landlord shall return the Field to
Tenant for Tenant’s reconstruction of the same (the “Field Re-Construction”) in
approximately the condition in which the Field exists as of the date of this
Lease or a comparable or better condition within seven (7) months following the
commencement of Landlord’s demolition of the Field, which seven (7) month
period shall be subject to extension to the extent of any Force Majeure Delays
(as such definition is modified in Section 21.2, above). Tenant hereby
acknowledges and agrees that commencement of construction with respect to the
Field shall not be deemed to have occurred until such time as Landlord commences actual
demolition (which shall not include Landlord’s conduct of test borings and/or
indicator piles, as required, but Landlord shall use commercially reasonable
efforts to minimize interference with Tenant’s use of the Field in performing
such test borings and indicator piles). In addition, to the extent that
Landlord conducts test borings and/or indicator piles on the Field and the
construction of the Building 3 Project is not intended to be commenced
reasonably promptly thereafter, Landlord shall repair the affected areas of the
Field to a commercially reasonable condition. Notwithstanding anything
contained herein to the contrary, Landlord shall be permitted to retain the
area depicted on Exhibit A-3 (the “Landlord Staging Area”), following the
initial return of the remainder of the Field to Tenant for purpose of staging
the remaining construction of Building 3. The Landlord Staging Area shall be
returned to Tenant for the Field Re-Construction associated therewith on or
before Landlord’s completion of the Building 3 Project. In the event that
Landlord shall fail to deliver the Field (other than the Landlord Staging Area)
to Tenant in accordance with terms hereof for the Field Reconstruction within
the seven (7) month period referred to above (as the same may be extended in
accordance with the terms hereof), then, except to the extent resulting from
the acts or omissions of Tenant (provided that Tenant has received notice of
such delaying act or omission and has not cured the same within a reasonable
period of time thereafter), Tenant shall be entitled to a credit against the
next Rent due under this Lease in the amount of the product of (i) the number
of days beyond the expiration of such 7-month period (as the same may be
extended) that elapse until such delivery by Landlord is made in accordance
with the terms hereof, and (ii) $3,000.00. Furthermore, in the event that
Landlord shall fail to deliver the entirety of the Field (including the
Landlord Staging Area) in accordance with the terms hereof prior to the
expiration of the Building 3 Construction Period, then, in addition to the
foregoing Rent credit, except to the extent resulting from the acts or
omissions of Tenant (provided that Tenant has received notice of such delaying
act or omission and has not cured the same within a reasonable period of time
thereafter), Tenant shall be entitled to a further credit against the Rent due
under this Lease in the amount of the product of (a) the number of days beyond
the Building 3 Construction Period that elapse until Landlord delivers the
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of the Field (including the Landlord Staging Area) in accordance with
the terms hereof, and (b) $3,000.00. The foregoing Rent credits shall be
Tenant’s sole and exclusive remedies for delays by Landlord in completion the
Building 3 Project (or any portion thereof). The Field Re-Construction shall
be performed by Tenant in accordance with the Tenant Work Letter in the same
manner as the Field was constructed initially, provided that, in connection
therewith, the Common Area Allowance shall be inapplicable, and lieu thereof,
Landlord shall provide an allowance for the Field Re-Construction in the
aggregate amount of $208,770.00 (the “Field Re-Construction Allowance”), and
such Field Re-Construction Allowance shall be disbursed by Landlord under the
Tenant Work Letter in the same manner as the Common Area Allowance initially
provided under the Tenant Work Letter. Except as specifically set forth
herein, Landlord shall not be obligated to provide or pay for any improvements
in connection with the Field Re-Construction.

     21.4
Other Terms. Nothing contained in this Article 21 shall limit or
alter Landlord’s rights under Section 29.28 of this Lease, which Landlord and
Tenant hereby agree shall be applicable in connection with the construction of
Building 3. Landlord and Tenant acknowledge that Tenant desires Landlord to
minimize interference with Tenant’s use of the Project (other than the Field)
during the construction of the Building 3 Project, and that, notwithstanding
the foregoing, construction of the Building 3 Project will create noise,
debris and other matters which are undesirable to Tenant. In connection with
the foregoing, Landlord hereby agrees that Landlord shall construct the
Building 3 Project in accordance with typical construction industry means and
procedures.

     21.5
Tenant’s Limited Right to Notice Regarding Lease of
Building 3.
During the Lease Term, not less than ten (10) business days prior to the date
Landlord is to consummate the first lease of all or a portion of Building 3 or
the date which Landlord anticipates securing permits for the construction of
Building 3 (regardless of whether Landlord has an anticipated tenant for
Building 3), Landlord shall deliver notice of such leasing or the securing of
such permits, as the case may be, to Tenant (which notice, in the case of a
lease, shall include the location and approximate square footage of the subject
space); provided, however, Landlord and Tenant hereby expressly agree that the
terms of this Section 21.5 shall not be interpreted to impose any duty on
Landlord to lease such space to Tenant including, to act in good faith or use
reasonable efforts to lease or negotiate to lease such space to Tenant. The
terms of this Section 21.5 are meant merely to cause Landlord to give a
courtesy notice to Tenant of such lease or the securing of such permits, as the
case may be, and not to expressly or impliedly obligate Landlord in any other
manner. Notwithstanding anything contained herein to the contrary, Landlord
shall have no obligation to deliver a notice under this Section 21.5 in the
event that (i) Landlord has previously leased space in Building 3 to a party
other than Tenant, or (ii) at the time Landlord would otherwise deliver a
notice hereunder, Tenant is in default under this Lease after the expiration of
any applicable cure period.

     21.6
Loading Docks. Landlord and Tenant hereby acknowledge and agree
that, upon the construction of Building 3, the loading dock servicing the
Buildings may be relocated, subject to and in accordance with the terms of
Section 1.3 of the Tenant Work Letter.

	 	 	 
	 	 	
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ARTICLE 22

INTENTIONALLY OMITTED

ARTICLE 23

SIGNS

     23.1 Permitted Signage. Subject to the terms hereof, provided all signs
are in keeping with the quality of the Buildings and Project, Tenant, at its
sole cost and expense, may install identification signage anywhere in the
Premises.

     23.2
Directional Signage. Tenant shall be entitled to install reasonable
amounts of directional and directory signage within the Project (“Directional
Signage”) subject to Landlord’s prior approval, which approval shall not be
unreasonably conditioned or withheld and shall be granted or denied within ten
(10) business days following Tenant’s request therefor.

     23.3 Prohibited Signage and Other Items. Except as provided herein,
Tenant may not install any signs on the exterior or roof of the Project or the
Common Areas of the Project.

     23.4
Underlying Documents. Tenant shall comply with the Underlying
Documents in connection with any signage permitted hereunder, including
obtaining consents as and to the extent required thereunder. Landlord shall
reasonably cooperate with Tenant in connection with Tenant’s compliance with
the Underlying Documents hereunder, at no cost or expense to Landlord.

     23.5 Tenant’s Exterior Signage; Property Name.

          23.5.1 Building Signage. Subject to the terms hereof, Applicable Laws,
and any Underlying Documents recorded against the Project as of the date of
this Lease or as otherwise approved by Tenant pursuant to the terms of this
Lease, Tenant shall be entitled, at its sole cost and expense, to exclusive
multiple location identification signage (collectively, the “Building Signage”)
anywhere on the exterior of Building 1 and Building 2 as desired by Tenant,
with the exact locations to be subject to Landlord’s reasonable approval
(provided that Landlord hereby approves the locations designated on Exhibit F,
attached hereto, and the signage locations set forth in the Playa Capital
Sublease), Applicable Laws and Underlying Documents recorded against the
Project as of the date of this Lease or as otherwise approved by Tenant
pursuant to the terms of this Lease. Except to the extent required by
Applicable Law, no signage other than Tenant’s Building Signage shall be
allowed on the Buildings, provided that the foregoing shall not alter or limit
Landlord’s rights, as set forth in this Lease, with respect to the Building 3
Monument. Landlord hereby pre-approves the following types of Building
Signage: electronic imaging (including multi-story), projection of signage
onto the Buildings (including during special events), “bus wrap” signage, and
“jumbotron” type signage, provided that the foregoing approval shall not alter
or limit (i) Tenant’s obligations to comply with the terms of this Article 23,
Applicable Laws and Underlying Documents recorded against the Project as of the
date of this Lease or as otherwise approved by Tenant pursuant to the terms of
this Lease,

	 	 	 
	 	 	
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and (ii) Tenant’s obligation to obtain Landlord’s reasonable
approval of all specifications of any particular Building Sign to be installed
by Tenant.

          23.5.2 Monument Signage. Subject to the terms hereof, Tenant may install
in the Project one or more monument signs along Jefferson Boulevard and/or
Lincoln Boulevard (“Monument Signs”). The size, design, location and all other
specifications of the Monument Signs shall be subject to the reasonable
approval of Landlord. Notwithstanding the foregoing, Tenant hereby
acknowledges and agrees that, at any time following the date Building 3 is
substantially complete, Landlord shall be permitted to install a monument for
Building 3 (the “Building 3 Monument”) on Jefferson Boulevard not less than 150
feet West of the intersection of Brisa Way and Jefferson Boulevard, and, in
connection therewith, (i) none of Tenant’s Monument Signs shall be located
within one hundred (100) feet of the Building 3 Monument, and (ii) to the
extent required based upon the terms of item (i), above, by Applicable Law or
by any applicable Underlying Documents for Landlord to install the Building 3
Monument, Tenant shall remove or relocate, as the case may be, any Monument
Sign previously installed by Tenant. In no event shall the Building 3 Monument
be greater than five (5) feet in height.

          23.5.3 Project Name. Provided that the Original Tenant or an Affiliate
Assignee, as the case may be, is not in Material Default under this Lease,
Landlord hereby grants the Original Tenant or an Affiliate Assignee the right
to designate the “name” of the Project as “Electronic Arts” or “EA” followed by “Center,” “Centre,” “Studios” or
“Plaza” or similar names subject to the prior reasonable approval of Landlord
(“Project Name”) (provided that Landlord’s consent shall be deemed to be
reasonably withheld to the extent that the Project Name is an “Objectionable
Name,” as that term is defined in Section 23.5.4, below). Tenant shall
designate the Project Name, subject to the foregoing, prior to the Lease
Commencement Date. Landlord shall, at Tenant’s sole cost, in connection with
any change in the Tenant’s Signage as allowed pursuant to the terms of this
Lease, change such Project Name to match or be a direct, recognizable
derivative of the new name on the Tenant’s Signage. No signage identifying the
Landlord or identifying third parties (other than occupants of Building 3 on
the Building 3 Monument) shall be permitted by Landlord in the Project.

          23.5.4 Additional Obligations and Conditions. The Building Signage,
Directional Signage and the Monument Signs are collectively referred to herein
as the “Exterior Signage.” All aspects of Tenant’s Exterior Signage (including
any changes to such Exterior Signage which Tenant may, subject to Landlord’s
reasonable approval and subject to the terms hereof, make from time to time
throughout the entire Lease Term), including, but not limited to, quality,
design, style, color, lighting and size, as applicable, shall be (a) subject to
Landlord’s prior written approval, in Landlord’s reasonable discretion, which
shall be granted or denied within ten (10) business days, and (b) in compliance
with all Applicable Laws and Underlying Documents recorded as of the date of
this Lease or as otherwise approved by Tenant pursuant to the terms of this
Lease; provided, however, that if Tenant does not receive the necessary
governmental permits, approvals and other approvals required hereunder for all
or any portion of the Exterior Signage, Landlord’s and Tenant’s rights and
obligations under the remaining provisions of this Lease shall be unaffected;
provided further, however, that Landlord shall, at Tenant’s sole cost and
expense, use commercially reasonable efforts to cooperate with Tenant in
obtaining any such required governmental permits and approvals.
Notwithstanding the foregoing, but without limiting the conditions set forth in
subsection 23.5.3(c), Landlord hereby

	 	 	 
	 	 	
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pre-approves of the design and colors of
Tenant’s logo existing as of the date hereof. Tenant shall be responsible, at
its sole cost and expense, for the operation, maintenance, repair, replacement
and compliance with laws of Tenant’s Exterior Signage. Upon the expiration or
earlier termination of this Lease, Tenant shall, at Tenant’s sole cost and
expense, remove Tenant’s Exterior Signage and repair any damage resulting
therefrom. If Tenant fails to remove its Exterior Signage, and to repair any
damage to the Buildings and/or the Project resulting from such removal when and
as required hereunder, then Landlord may perform such work and all costs and
expenses incurred by Landlord in so performing shall be reimbursed by Tenant to
Landlord within thirty (30) days after Tenant’s receipt of Landlord’s invoice
therefor. The immediately preceding sentence shall survive the expiration or
earlier termination of this Lease. Tenant’s rights to Exterior Signage
contained in this Section 23.5 shall be personal to the Original Tenant and any
Affiliate Assignee. Notwithstanding anything contained in this Article 23 to
the contrary, in no event shall the name and/or any logo on any Exterior
Signage be an “Objectionable Name.” The term “Objectionable Name” shall mean
any name or logo which relates to an entity which is of a character or
reputation, or is associated with a political orientation or faction, which is
inconsistent with the quality of the Project, or which would otherwise
reasonably offend a landlord of a Comparable Building.

ARTICLE 24

COMPLIANCE WITH LAW

     Tenant shall not do anything or suffer anything to be done in or about the
Premises or the Project which will in any way conflict with any law, statute,
ordinance, decrees, codes, common law, judgments, orders, rulings, awards or
other governmental or quasi-governmental rule, regulation or requirement now in
force or which may hereafter be enacted or promulgated including any
“Environmental Laws,” as that term is defined in Section 29.25.1 of this Lease
(“Applicable Laws”). Tenant shall, at its sole cost and expense, promptly
comply with any Applicable Laws which relate to (i) Tenant’s use of the
Premises (provided that this item (i) shall be inapplicable with respect to the
Tenant Improvements and any Alterations, which shall be governed pursuant to
the terms of items (ii) and (iii), below), (ii) any Alterations made by Tenant
to the Premises, and any tenant improvements in the Premises, or (iii) the Base
Building, but as to the Base Building, only to the extent such obligations are
triggered by non-typical general office Alterations made by Tenant to the
Premises, or any non-typical general office Tenant Improvements, or Tenant’s
use of the Premises for non-general office use. Should any standard or
regulation now or hereafter be imposed on Landlord or Tenant by a state,
federal or local governmental body charged with the establishment, regulation
and enforcement of occupational, health or safety standards for employers,
employees, landlords or tenants, then Tenant agrees, subject to Article 7 of
this Lease and the immediately preceding sentence, at its sole cost and
expense, to comply promptly with such standards or regulations. The judgment
of any court of competent jurisdiction or the admission of either party hereto
in any judicial action, regardless of whether the other party is a party
thereto, that such party has violated any of said governmental measures, shall
be conclusive of that fact as between Landlord and Tenant. Landlord shall
comply with all Applicable Laws relating to the Project (except as otherwise
set forth in this Lease), Common Areas, Base Building and Building Systems
(including, without limitation, Applicable Laws relating to hazardous materials
or hazardous substances), provided that compliance with such Applicable Laws is
not the responsibility of Tenant under this Lease, and

	 	 	 
	 	 	
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provided further that
Landlord’s failure to comply therewith would prohibit Tenant from obtaining or
maintaining a certificate of occupancy (or its legal equivalent) for the
Premises, or would unreasonably and materially affect the safety of Tenant’s
Parties or create a significant health hazard for Tenant’s Parties or otherwise
materially interfere with or materially affect Tenant’s Permitted Use and
enjoyment of the Premises (collectively, the “Landlord Compliance Conditions”).
Landlord shall be permitted to include in Operating Expenses any costs or
expenses incurred by Landlord under this Article 24 to the extent consistent
with, and amortized to the extent required by, the provisions of Section 4.2.3
of this Lease. Notwithstanding anything to the contrary, in the event any
portion of the Project (including the Premises) does not comply with the
Americans With Disabilities Act of 1990 (41 U.S.C. 12101 et seq.), as well as
the regulations and accessibility guidelines promulgated thereunder
(collectively, “ADA”), or any laws, ordinances or statutes of the County of Los
Angeles or State of California based upon or similar to ADA (collectively, the
“Disability Codes”) for new construction disregarding any grandfathering and
waivers as of the Lease Commencement Date and such non-compliance does not
result from Tenant’s construction of the Tenant Improvements or Tenant’s
particular use of the Premises for non-general office use, and Tenant is not
responsible for such non-compliance in accordance with the terms of this Lease,
then Landlord shall be obligated to promptly, at Landlord’s sole cost and expense (and
not as an Operating Expense), rectify said violation and cause the Project to
be in material compliance with ADA or the Disability Codes, as applicable,
subject to the Landlord Compliance Conditions. Landlord furthermore agrees to
be responsible, at its cost (not to be applied against the “Tenant Improvement
Allowance,” as that term is defined in Section 2.1 of the Tenant Work Letter)
for causing the Base Building to be in material compliance with all
Environmental Laws (as defined herein) as of the date of this Lease
(disregarding grandfathering and waivers). If Landlord fails to timely comply
with its obligations under this Article 24, then Tenant shall, subject to the
terms and conditions of Article 7, be permitted to exercise its rights under
Section 7.2 of this Lease, as if such failure was a failure by Landlord to make
repairs required under Section 7.1 of this Lease.

ARTICLE 25

LATE CHARGES

     If any installment of Rent or any other sum due from Tenant shall not be
received by Landlord or Landlord’s designee within five (5) business days after
Notice that said amount is past due, then Tenant shall pay to Landlord a late
charge equal to two percent (2%) of the overdue amount, plus any reasonable
attorneys’ fees incurred by Landlord by reason of Tenant’s failure to pay Rent
and/or other charges when due hereunder. The late charge shall be deemed
Additional Rent and the right to require it shall be in addition to all of
Landlord’s other rights and remedies hereunder or at law and shall not be
construed as liquidated damages or as limiting Landlord’s remedies in any
manner. In addition to the late charge described above, any Rent or other
amounts owing hereunder which are not paid within five (5) business days after
notice that any such amounts are past due shall thereafter bear interest until
paid at a rate per annum equal to the lesser of (i) the Interest Rate or (ii)
the highest rate permitted by Applicable Law.

	 	 	 
	 	 	
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ARTICLE 26

LANDLORD’S RIGHT TO CURE
DEFAULT; PAYMENTS BY TENANT

     26.1
Landlord’s Cure. All covenants and agreements to be kept or
performed by Tenant under this Lease shall be performed by Tenant at Tenant’s
sole cost and expense and without any reduction of Rent, except to the extent
otherwise expressly provided in this Lease. If Tenant shall fail to perform
any of its obligations under this Lease, and such failure shall continue in
excess of the time allowed under Section 19.1.2, above, then upon five (5)
additional days Notice from Landlord, Landlord may, but shall not be obligated
to make any such payment or perform any such act on Tenant’s part without
waiving its right based upon any Default of Tenant and without releasing Tenant
from any obligations hereunder.

     26.2 Tenant’s Reimbursement. Except as may be specifically provided to
the contrary in this Lease, Tenant shall pay to Landlord, within thirty (30)
days after delivery by Landlord to Tenant of statements therefor, sums equal to
expenditures reasonably made and obligations incurred by Landlord in connection
with the remedying by Landlord of Tenant’s Defaults pursuant to the provisions
of Section 26.1 above.

ARTICLE 27

ENTRY BY LANDLORD

     Subject to Tenant’s reasonable security arrangements, Landlord reserves
the right at all reasonable times and upon reasonable prior Notice (which
Notice shall (except in cases of emergency in which case no Notice shall be
required) be at least forty-eight (48) hours’ prior written notice with respect
to items (iii) and (iv) below and may be forty-eight (48) hours’ prior oral
notice to Tenant’s office manager with respect to items (i) and (ii) below) to
the Tenant to enter the Premises to (i) inspect them during Business Hours;
(ii) show, during Business Hours, the Premises to prospective purchasers,
mortgagees or ground or underlying lessors, or, during the last eighteen (18)
months of the Lease Term, prospective tenants; (iii) post notices of
non-responsibility; or (iv) alter, improve or repair the Premises, Building 1,
Building 2, or the Project if necessary to comply with current building codes
or other Applicable Laws, or for structural alterations, repairs or
improvements to the Building 1, Building 2 or the Project as required or
permitted under the Lease. Notwithstanding anything to the contrary contained
in this Article 27, Landlord may enter the Premises at any time to (A) perform
services required of Landlord; and (B) subject to the terms of Section 26.1
above, perform any covenants of Tenant which Tenant fails to perform. Landlord
may make any such entries without the abatement of Rent, except as expressly
provided in Section 19.5.2, above, and may take such steps as required to
accomplish the stated purposes; provided, however, that any such entry shall be
accomplished as expeditiously as reasonably possible and in a manner so as to
cause as little interference to Tenant as reasonably possible and shall be
performed after Business Hours if reasonably practical and subject to
reasonable scheduling with Tenant. Landlord acknowledges and agrees that
Tenant may require that Landlord be accompanied by an employee of Tenant during
any such entry into the Premises by Landlord; provided, however, that in no
event shall the unavailability of such escort at the time that Landlord is
permitted to enter the Premises delay Landlord’s entry into the Premises as
permitted hereunder. Tenant hereby waives any claims for

	 	 	 
	 	 	
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damages or for any
injuries or inconvenience to or interference with Tenant’s business, lost
profits, any loss of occupancy or quiet enjoyment of the Premises, and any
other loss occasioned thereby. Even in emergency situations, Landlord shall
use commercially reasonable efforts to minimize any disruption to Tenant’s
business operations. For each of the above purposes, Landlord shall at all
times have a key with which to unlock all the doors in the Premises, excluding
Tenant’s vaults, safes and special security areas designated in advance by
Tenant. In an emergency, Landlord shall have the right to use any means that
Landlord may deem proper to open the doors in and to the Premises; provided,
however, that Landlord shall, subject to Section 10.1 of this Lease and to the
extent that such damage is not covered by insurance required to be carried by
Tenant under this Lease or caused by any governmental agencies, repair any
damage to the Premises caused by any such emergency entry into the Premises by
Landlord. Notwithstanding anything to the contrary set forth in this Article
27, Tenant may designate certain areas of the Premises as “Secured Areas”
should Tenant require such areas for the purpose of securing certain valuable
property or confidential information, including, without limitation, the data
center portion of the Premises. In connection with the foregoing, Landlord
shall not enter such Secured Areas except in the event of an emergency or
unless Landlord is accompanied by a Tenant escort, to the extent an escort is
reasonably available. Landlord need not clean any area designated by Tenant as
a Secured Area and shall only maintain or repair such secured areas to the extent (i) such repair or maintenance is required in
order to maintain and repair the Building Structure and/or the Building
Systems; (ii) as required by Applicable Laws, or (iii) in response to specific
requests by Tenant and in accordance with a schedule reasonably designated by
Tenant, subject to Landlord’s reasonable approval. Any entry into the Premises
by Landlord in the manner hereinbefore described shall not be deemed to be a
forcible or unlawful entry into, or a detainer of, the Premises, or an actual
or constructive eviction of Tenant from any portion of the Premises.

ARTICLE 28

TENANT PARKING

     28.1
In General. Tenant shall rent from Landlord parking passes on a
monthly basis throughout the Lease Term the Minimum Parking Allotment. Upon
not less than thirty (30) days notice to Landlord, Tenant may elect to have up
to thirty (30) of Tenant’s parking passes be for the use of a reserved parking
space in the Existing Parking Garage. The location of Tenant’s parking passes
shall be in the “Project Parking Facilities,” as that term is defined in
Section 28.2, below. Subject to the terms of this Article 28, Tenant may elect
to have any combination of valet parking, reserved parking and/or tandem/valet
assist parking. Tenant acknowledges and agrees that Tenant shall be obligated
to rent from Landlord the Minimum Parking Allotment, as such may increase from
time to time. Landlord acknowledges and agrees that Landlord is obligated to
provide to Tenant the Maximum Parking Allotment throughout the entire Lease
Term (notwithstanding the terms of the Underlying Documents). Prior to the
Tranche Rent Commencement Date for Tranche 4, Tenant may, upon two (2) business
days notice, adjust the number of parking passes Tenant elects to rent from
Landlord subject to the Minimum Parking Allotment and the Maximum Parking
Allotment. Subject to the terms hereof, Tenant shall pay to Landlord for
parking passes on a monthly basis the prevailing rate charged for parking
passes as reasonably determined by Landlord from time to time based on the
location of such passes and the type of such passes; provided, however, that
(i) Tenant shall have no obligation to pay for

	 	 	 
	 	 	
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parking prior to the Lease
Commencement Date, and (ii) at such time as Tenant leases all of the parking
spaces associated with Tranche 4 (excluding any parking spaces deemed rented by
Tenant under Section 28.6, below), Tenant shall receive a fifty percent (50%)
discount of the parking charge for fifty (50) of Tenant’s parking passes which
are associated with Tranche 4 and a one hundred percent (100%) abatement of the
parking charges applicable to sixty-six (66) of Tenant’s parking passes which
are associated with Tranche 4. As of the Lease Commencement Date, the
prevailing rate shall be Ninety Dollars ($90.00) for each unreserved pass per
month and $150.00 for each reserved pass per month; provided, however, that
Landlord and Tenant acknowledge and agree that such prevailing rate in effect
as of the Lease Commencement Date shall not increase in any calendar year (on a
percentage increase basis) by more than the average increase (on a percentage
increase basis) in parking rates in the same calendar year charged generally by
landlords of the Comparable Buildings. Notwithstanding anything in this
Article 28 to the contrary, prior to the “Stipulated Rates Cutoff Date,” as
that term is defined, below, the parking charge applicable to thirty-three (33)
of Tenant’s unreserved passes shall equal $85.00 per pass per month (provided
that such amount shall increase by three percent (3%) on each anniversary of
the Lease Commencement Date). In addition, Tenant shall, in all instances, be
responsible for any taxes imposed by any governmental authority in connection
with the renting of such parking passes by Tenant or the use of the parking facility by
Tenant. Tenant shall abide by all Applicable Laws (including any
governmentally mandated traffic demand management program, subject to the terms
of Section 4.2.3(BBB)) and all reasonable rules and regulations which are
prescribed from time to time for the orderly operation and use of the parking
facility where the passes are located and upon Tenant’s cooperation in seeing
that Tenant’s employees and visitors also comply with such rules and
regulations. Subject to the requirements of this Article 28, Landlord
specifically reserves the right to change the location, size, configuration,
design, layout and all other aspects of the Project parking facility, but not
the discontinuance of the reserved and/or valet parking rights of Tenant set
forth herein (provided that Tenant’s parking rights are not reduced or
materially changed as a result thereof, do not create a material security risk
to Tenant and so long as Tenant’s obligations under this Lease are not
materially and unreasonably increased as a result thereof and so long as the
entrance to the Project, as constructed by Tenant and approved by Landlord in
accordance with the terms of this Lease, shall not be materially modified or
interfered with), at any time and Tenant acknowledges and agrees that Landlord
may, without incurring any liability to Tenant and without any abatement of
Rent (except as provided in Section 19.5.2 of this Lease), from time to time,
close-off or restrict access to the parking facility in question for purposes
of permitting or facilitating any such construction, alteration or improvements
provided that such modifications may only be made by Landlord to the extent
required by Applicable Laws or as reasonably necessary on a temporary basis in
the event of repairs required under this Lease and/or a damage or destruction.
Landlord shall use commercially reasonable efforts to cause any such work to be
conducted in a manner which will minimize material interference with Tenant’s
Permitted Use, which efforts shall include, to the extent necessary, providing
Tenant with reasonable alternative parking at no additional cost to Tenant.
Landlord may totally or partially delegate its responsibilities hereunder to a
parking operator in which case such parking operator shall have all the rights
of control delegated by Landlord. The parking passes rented by Tenant pursuant
to this Article 28 are provided to Tenant solely for use by Tenant’s own
personnel (not including Tenant’s invitees and guests) and such passes may not
be transferred, assigned, subleased or otherwise alienated by Tenant except on
a pro rata basis in connection with an assignment or subletting of the

	 	 	 
	 	 	
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Premises
permitted or approved in accordance with the terms and conditions of Article
14. For purposes of this Lease, the “Stipulated Rates Cutoff Date” is the
earlier to occur of (i) the tenth (10th) anniversary of the Lease Commencement
Date, and (ii) the later to occur of (a) date of the termination of the Playa
Capital Sublease, or (b) the fifth (5th) anniversary of the Lease Commencement
Date.

     28.2
Project Parking Facilities. The term “Project Parking Facilities”
shall mean, collectively, as the case may be (i) the parking garage existing as
of the date of this Lease (the “Existing Parking Garage”), (ii) the surface
parking lot anticipated to be constructed by Landlord on or about the area on
which Building 3 may be constructed (the “Surface Parking Lot”), and/or (iii)
any expansion of the Existing Parking Garage or additional parking garage
located on the Project and/or the area in which Building 3 may be located (in
either such events referred to in this item (iii), the “New Parking Garage”).
In all events, the Project Parking Facilities shall be located within the
Project and/or the area in which Building 3 may be constructed. Subject to the
terms of Article 21, any valet personnel retained by Landlord in excess of the
“Base Parking Personnel,” as that term is defined, below, if any, shall be the
responsibility of Tenant (subject to the terms of Section 28.3, below).
Subject to the terms of Article 21 of this Lease and the terms of this Article 28, Landlord shall
have the right to “aisle park” up to one hundred sixteen (116) vehicles in the
Existing Parking Garage (the “Aisle Parking Cap”) and on an unlimited basis on
the Surface Parking Lot and/or New Parking Garage; provided that in the event
that Landlord shall exceed the Aisle Parking Cap (A) by more than thirty (30)
vehicles (inclusive of visitors), (B) in more than five (5) days (with Tenant
providing notice to Landlord of each such daily violation on the date of the
occurrence thereof), (C) such five (5) days of violation occur in the same
month, and (D) there are more than four (4) different months in which the
events described in items (A) through (C) occur in any twelve (12) month
period, then Landlord shall be obligated to provide Tenant additional parking,
subject to the requirements of this Article 28. Tenant hereby acknowledges and
agrees that in addition to the Existing Parking Garage, Landlord may, at its
sole option, provide additional parking in order to satisfy Tenant’s parking
rights under this Lease by (i) construction of the Surface Parking Lot and/or
(ii) a New Parking Garage. Notwithstanding anything contained herein to the
contrary, in no event shall Landlord have the right to cause any of the parking
to which Tenant is entitled under this Lease to be located outside of the
Project and/or the area in which Building 3 is or may be located.

     28.3
Valet Parking Personnel; Monthly Valet Allowance. Landlord shall
provide a monthly valet parking personnel allowance in an amount equal to the
“Monthly Valet Allowance,” as that term is defined, below, for the purpose of
retaining valet personnel to service the parking provided to Tenant pursuant to
the terms of this Lease (the “Valet Parking Personnel”). The quantity and
nature of the Valet Parking Personnel shall be as reasonably directed by Tenant
from time to time, provided that in no event shall the quantity of such
personnel be less than the “Base Parking Personnel”, as that term is defined,
below. Because Tenant is directing the timing and allocation of Valet Parking
Personnel, Landlord shall have no liability to Tenant for car retrieval delays
resulting from inadequate valet parking personnel, provided that Landlord shall
use commercially reasonable efforts to cause the Valet Parking Personnel which
is at the Project to service Tenant on a timely basis. Any portion of the
Monthly Valet Allowance which is not used by Tenant in a particular month may
be carried forward and used by Tenant in any subsequent month, provided that
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Allowance shall be utilized solely for the purposes set forth
herein and may not be used for any other purpose whatsoever. To the extent the
valet parking costs exceed the Monthly Valet Allowance, Tenant shall pay such
amounts to Landlord within thirty (30) days of billing. For purposes of this
Lease, the “Base Parking Personnel” shall mean one (1) full time (i.e., one 8
hour shift) facility manager, six (6) full time (i.e., one 8 hour shift) tandem
parking attendants, and two (2) full time (i.e., one 8 hour shift) relievers.
For purposes of this Lease, the “Monthly Valet Allowance” shall mean
$25,000.00, provided that such amount shall increase following the expiration
of each thirty (30) month period during the Lease Term by an amount equal to
$1,750.00.

     28.4
Visitor Parking. Landlord and Tenant hereby acknowledge and agree
that (i) no person that does not retain a monthly parking pass provided by
Landlord to Tenant or a Tenant invitee (which shall include Playa Capital as
subtenant) or visitor shall be permitted to park in the Existing Parking
Garage, (ii) to the extent that more than thirty (30) Tenant visitors (i.e.,
individuals that do not have a monthly parking pass provided by Landlord) shall
be at the Project at any one time but not including any visitors which park in
the Playa Capital designated parking area (the number of visitors in excess of 30 to be referred to herein as
the “Excess Visitors”), Landlord shall undertake reasonable efforts to
accommodate such Excess Visitors, provided that for the day(s) in which Excess
Visitors exists, the number of Excess Visitors shall be added to the Aisle
Parking Cap, and (iii) Tenant’s visitors shall not be charged for parking in
the Project Parking Facilities.

     28.5
Modification of Parking Facilities for Subtenants. Subject to the
terms of this Lease (including, without limitation, the Tenant Work Letter
and/or Article 8, as the case may be), Tenant shall have the right to segregate
a portion of the Existing Parking Garage for any subtenants of Tenant, provided
that the same does not materially adversely affect Landlord’s ability to aisle
park to the extent set forth in this Article 28. Landlord hereby approves the
installation of a fence, in the location in the Existing Parking Garage set
forth in the Playa Capital Sublease or such other location as is reasonably
approved by Landlord, subject to the remaining terms of the Tenant Work Letter
and/or Article 8 of the Lease.

     28.6
Common Area Alterations; Loading Dock. In the event that Tenant’s
construction of Common Area Alterations (including, without limitation, any
driveway or related features relating to vehicular entry into the Existing
Parking Garage) and/or the construction of the loading dock in accordance with
the terms of Section 1.3 of the Tenant Work Letter shall eliminate certain
parking spaces within the Existing Parking Garage, (a) all of such parking
spaces eliminated as a result of Common Area Alterations and fifty percent
(50%) of the parking spaces eliminated as a result of the construction of the
loading dock shall be deemed parking spaces provided to and used by Tenant
pursuant to the terms of the Lease, (b) the Aisle Parking Cap shall be
increased by the number of all of the parking spaces so eliminated (whether by
Common Area Alterations or the loading dock), and (c) following the Tranche
Rent Commencement Date for Tranche 4, Tenant shall be obligated to pay the
parking charge (in accordance with the terms of this Article 28) associated
with (i) all of the parking spaces eliminated as a result of Tenant’s Common
Area Alterations, and (ii) fifty percent (50%) of the parking spaces eliminated
as a result of the construction of the loading dock.

	 	 	 
	 	 	
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     28.7
Tenant’s Operational Requests. Landlord shall cooperate with
reasonable Tenant requests in connection with the operation of the Project
Parking Facilities servicing Tenant, provided that (a) subject to the terms of
Section 28.3, above, Tenant shall be responsible for any increased costs
associated with the implementation of such requests, and (b) such requests
shall not adversely effect Landlord’s ability to comply with the terms of this
Lease (including, without limitation, this Article 28).

ARTICLE 29

MISCELLANEOUS PROVISIONS

     29.1 Binding Effect. Each of the provisions of this Lease shall extend to
and shall, as the case may require, bind or inure to the benefit not only of
Landlord and of Tenant, but also of their respective successors or assigns,
provided this clause shall not permit any assignment by Tenant contrary to the
provisions of Article 14 of this Lease.

     29.2 No Air Rights. No rights to any view or to light or air over any
property, whether belonging to Landlord or any other person, are granted to
Tenant by this Lease. If at any time any windows of the Premises are
temporarily darkened or the light or view therefrom is obstructed by reason of
any repairs, improvements, maintenance or cleaning in or about the Project, the
same shall be without liability to Landlord and without any reduction or
diminution of Tenant’s obligations under this Lease.

     29.3 Modification of Lease. Should any current or prospective mortgagee
or ground lessor for Building 1, Building 2 and/or the Project require a
modification or modifications of this Lease, which modification or
modifications will not cause an increased cost or expense to Tenant or (other
than in a de minimus manner) adversely change the rights and obligations of
Tenant hereunder, then and in such event, Tenant agrees that this Lease may be
so modified and agrees to execute whatever documents are required therefor and
deliver the same to Landlord within twenty (20) days following the request
therefor. Landlord shall reimburse to Tenant the actual, documented and
reasonable attorneys’ fees incurred by Tenant in reviewing such documents, not
to exceed Seven Hundred Fifty Dollars ($750.00). Should Landlord or any such
prospective mortgagee or ground lessor require execution of a short form of
Lease for recording, containing, among other customary provisions, the names of
the parties, a description of the Premises and the Lease Term, Tenant agrees to
execute such short form of Lease memorandum and to deliver the same to Landlord
within twenty (20) days following the request therefor, the recordation of
which shall be at the sole cost and expense of Landlord.

     29.4 Transfer of Landlord’s Interest. Tenant acknowledges that Landlord
has the right to transfer all or any portion of its interest in the Project
and/or Building 1 and/or Building 2 and in this Lease so long as such transfer
is not a subterfuge to avoid Landlord’s obligations under this Lease, and
Tenant agrees that in the event of any such transfer and if the transferee
assumes the applicable obligations, Landlord shall automatically be released
from all liability (to the extent such obligations are assumed by the
transferee) under this Lease not accrued as of the date of the transfer and
Tenant agrees to look solely to such transferee for the performance of
Landlord’s obligations hereunder after the date of transfer. Tenant further
acknowledges that Landlord may assign its interest in this Lease to a mortgage
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additional security. Such transfer shall not release Landlord from its
obligations hereunder and that Tenant shall continue to look to Landlord for
the performance of its obligations hereunder.

     29.5
Recordation of Memorandum of Lease and Purchase Option
Agreement.
Concurrently with the mutual execution of this Lease, Landlord and Tenant shall
execute and acknowledge a Memorandum of Lease and Purchase Option Agreement in
the form attached hereto as Exhibit J (the “Memorandum of Lease”). Within five
(5) business days following the date of full execution and delivery of this
Lease, Landlord shall cause the Memorandum of Lease to be recorded (at Tenant’s
sole cost and expense) and shall provide Tenant with a conformed copy followed
by a copy of the recorded document thereof. At such time as this Lease or any
terms of the Memorandum of Lease, as the case may be, shall be inapplicable to
any portion of the Project and/or to the Field and/or the Building 3 site,
Tenant shall, at Landlord’s request, execute a commercially reasonable
quitclaim or amendment relating thereto, which quitclaim or amendment shall be
in a recordable form. Tenant hereby agrees to provide, upon not less than
fifteen (15) business days notice, the owner of Phase I (i.e., Building 1 and
Building 2) and/or the owner of Phase II (i.e., the Field and the Building 3
site), an estoppel certificate indicating the current status of any matter
relating to the terms and conditions of Article 21 of this Lease.

     29.6
Captions. The captions of Articles and Sections are for convenience
only and shall not be deemed to limit, construe, affect or alter the meaning of
such Articles and Sections. Notwithstanding the foregoing, whenever in this
Lease a reference is made to an Article, such reference shall include all
Sections in such Article and whenever a reference is made to a Section, all
such references shall include all subsections with the same pre-numeric
identification. The term “Lease” shall include all Exhibits which are attached
to this Lease which are by this reference deemed incorporated into this Lease.

     29.7
Relationship of Parties. Nothing contained in this Lease shall be
deemed or construed by the parties hereto or by any third party to create the
relationship of principal and agent, partnership, joint venturer or any
association between Landlord and Tenant, it being expressly understood and
agreed that neither the method of computation of Rent nor any act of the
parties hereto shall be deemed to create any relationship between Landlord and
Tenant other than the relationship of landlord and tenant.

     29.8
Time of Essence. Time is of the essence of this Lease and each of
its provisions. Whenever in the Lease a payment is required to be made by one
party to the other, but a specific date for payment is not set forth or a
specific number of days within which payment is to be made is not set forth, or
the words “immediately,” “promptly,” and/or “on demand,” or their equivalent,
are used to specify when such payment is due, then such payment shall be due
thirty (30) days after the date that the party which is entitled to such
payment sends Notice to the other party demanding such payment.

     29.9
Partial Invalidity. If any term, provision or condition contained in
this Lease shall, to any extent, be invalid or unenforceable, the remainder of
this Lease, or the application of such term, provision or condition to persons
or circumstances other than those with respect to which it is invalid or
unenforceable, shall not be affected thereby, and each and every other term,
provision and condition of this Lease shall be valid and enforceable to
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     29.10 Landlord Exculpation. It is expressly understood and agreed that
notwithstanding anything in this Lease to the contrary, and notwithstanding any
applicable law to the contrary, the liability of Landlord and the Landlord
Parties hereunder (including any successor landlord) and any recourse by Tenant
against Landlord or the Landlord Parties shall be limited solely and
exclusively to an amount which is equal to the interest of Landlord in the
Project (together with any rent, sales, insurance and condemnation proceeds
actually received by Landlord and not subject to any superior rights of third
parties), and neither Landlord, nor any of the Landlord Parties shall have any
personal liability therefor, and Tenant hereby expressly waives and releases
such personal liability. Landlord acknowledges and agrees that in no event
shall Tenant’s obligations under this Lease constitute the personal obligations
of Tenant’s officers, directors and employees and Landlord, on behalf of itself
and all persons claiming by, through or under Landlord, expressly waives and
releases such individuals from any and all personal liability for Tenant’s
obligations hereunder.

     29.11 Entire Agreement. It is understood and acknowledged that there are
no oral agreements between the parties hereto affecting this Lease and this
Lease supersedes and cancels any and all previous negotiations, arrangements,
brochures, agreements and understandings, if any, between the parties hereto or
displayed by Landlord to Tenant with respect to the subject matter thereof, and
none thereof shall be used to interpret or construe this Lease. This Lease,
the exhibits and schedules attached hereto, and the Project Agreement Re Right
of First Offer to Purchase and Options to Purchase (the “Purchase Option
Agreement”) executed by Landlord and Tenant in connection with this Lease and
dated of even date herewith, contain all of the terms, covenants, conditions,
warranties and agreements of the parties relating in any manner to the rental,
use and occupancy of the Premises and the rights of Tenant to purchase the
Buildings, and shall be considered to be the only agreements between the
parties hereto and their representatives and agents. None of the terms,
covenants, conditions or provisions of this Lease can be modified, deleted or
added to except in writing signed by the parties hereto. Without limiting the
generality of the foregoing, Tenant expressly acknowledges and agrees that any
written or oral communications delivered by Landlord to Tenant pertaining to
Direct Expenses do not constitute a part of this Lease and Tenant further
acknowledges and agrees that in no event will Landlord be liable or bound in
any manner by any such oral or written statements, representations or
information pertaining to Project.

     29.12 Right to Lease. Landlord reserves the absolute right to effect such
other tenancies in Building 3 (if constructed by Landlord) as Landlord in the
exercise of its sole business judgment shall determine to best promote the
interests of Building 3. Tenant does not rely on the fact, nor does Landlord
represent, that any specific tenant or type or number of tenants shall, during
the Lease Term, occupy any space in Building 3 (if constructed by Landlord).

     29.13 Force Majeure. Any prevention, delay or stoppage due to strikes,
lockouts, labor disputes, acts of God, inability to obtain permits, services,
labor, or materials or reasonable substitutes therefor, governmental actions,
civil commotions, fire or other casualty, and other causes beyond the
reasonable control of the party obligated to perform (collectively, the “Force
Majeure”), except with respect to the obligations imposed upon Tenant with
regard to Rent or other charges to be paid by Tenant or Landlord pursuant to
this Lease, and except as to Tenant’s obligations under Articles 5 and 24 of
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contained in this Lease,
shall excuse the performance of such party for a period equal to any such
prevention, delay or stoppage and, therefore, if this Lease specifies a time
period for performance of an obligation of either party, that time period shall
be extended by the period of any delay in such party’s performance caused by a
Force Majeure.

     29.14 Notices. All notices, demands, statements, approvals or
communications (each, a “Notice,” collectively, “Notices”) given or required to
be given by either party to the other hereunder shall be in writing, shall be
sent by United States certified or registered mail, postage prepaid, return
receipt requested, or delivered personally (i) to Tenant at the appropriate
address set forth in Section 5 of the Summary, or to such other place as Tenant
may from time to time designate in a Notice to Landlord; or (ii) to Landlord at
the addresses set forth in Section 3 of the Summary, or to such other firm or
to such other place as Landlord may from time to time designate in a Notice to
Tenant. Any Notice will be deemed given on the date it is mailed as provided
in this Section 29.14 or upon the date personal delivery is made or attempted
to be made. If Tenant is notified of the identity and address of Landlord’s
mortgagee or ground or underlying lessor, Tenant shall give to such mortgagee
or ground or underlying lessor Notice of any default by Landlord under the
terms of this Lease by registered or certified mail.

     29.15 [Intentionally Omitted.]

     29.16 Joint and Several. If there is more than one Tenant, the
obligations imposed upon Tenant under this Lease shall be joint and several.

     29.17 Authority. If Tenant or Landlord is a corporation or partnership,
each individual executing this Lease on behalf of Tenant or Landlord hereby
represents and warrants that Tenant or Landlord, as appropriate, is a duly
formed and existing entity qualified to do business in California and that
Tenant or Landlord, as appropriate, has full right and authority to execute and
deliver this Lease.

     29.18 Governing Law; WAIVER OF TRIAL BY JURY. This Lease shall be
construed and enforced in accordance with the laws of the State of California.
IN ANY ACTION OR PROCEEDING ARISING HEREFROM, LANDLORD AND TENANT HEREBY
CONSENT TO (I) THE JURISDICTION OF ANY COMPETENT COURT WITHIN THE STATE OF
CALIFORNIA, (II) SERVICE OF PROCESS BY ANY MEANS AUTHORIZED BY CALIFORNIA LAW,
AND (III) IN THE INTEREST OF SAVING TIME AND EXPENSE, TRIAL WITHOUT A JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO
AGAINST THE OTHER OR THEIR SUCCESSORS IN RESPECT OF ANY MATTER ARISING OUT OF
OR IN CONNECTION WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT,
TENANT’S USE OR OCCUPANCY OF THE PREMISES, AND/OR ANY CLAIM FOR INJURY OR
DAMAGE, OR ANY EMERGENCY OR STATUTORY REMEDY.

     29.19 Submission of Lease. Submission of this instrument for examination
or signature by Tenant does not constitute a reservation of or an option for
lease, and it is not effective as a lease or otherwise until execution and
delivery by both Landlord and Tenant.

	 	 	 
	 	 	
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     29.20
Brokers. Landlord and Tenant hereby warrant to each other that they
have had no dealings with any real estate broker or agent in connection with
the negotiation of this Lease, excepting only the real estate brokers or agents
specified in Section 12 of the Summary (the “Brokers”), and that they know of
no other real estate broker or agent who is entitled to a commission in
connection with this Lease. Landlord shall pay the brokerage commissions owing
to Cresa Partners (the “Cresa Partner’s Commission”) in connection with the
transaction contemplated by this Lease pursuant to a separate written agreement
(the “Cresa Partner’s Agreement”). Each party agrees to indemnify and defend
the other party against and hold the other party harmless from any and all
claims, demands, losses, liabilities, lawsuits, judgments, and costs and
expenses (including without limitation reasonable attorneys’ fees) with respect
to any leasing commission or equivalent compensation alleged to be owing on
account of the indemnifying party’s dealings with any real estate broker or
agent other than the Brokers. In addition, to the extent that Landlord fails
to pay to Brokers the Cresa Partner’s Commission in accordance with the Cresa
Partner’s Agreement, Brokers may send written notice to Landlord and Tenant of
such failure and if Landlord fails to pay such amounts or object to the payment
thereof within thirty (30) days after said notice, Tenant shall be entitled to
offset such amount(s) owed to the Brokers under the Cresa Partner’s Agreement
from Landlord against Tenant’s next rental obligations which next become due
under this Lease. Any amount(s) offset from Tenant’s rental obligations
hereunder shall no longer be owed from Landlord to Broker under the Cresa
Partner’s Commission, but will become due from Tenant to Broker. Any dispute
with respect to the payment of the Cresa Partner’s Commission shall be
determined by arbitration pursuant to Section 29.29 below. The terms of this
Section 29.20 shall survive the expiration or earlier termination of the Lease
Term.

     29.21 Independent Covenants. This Lease shall be construed as though the
covenants herein between Landlord and Tenant are independent and not dependent
and Tenant hereby expressly waives the benefit of any statute to the contrary
and agrees that if Landlord fails to perform its obligations set forth herein,
Tenant shall not, except as otherwise expressly provided herein, be entitled to
make any repairs or perform any acts hereunder at Landlord’s expense or to any
setoff of the Rent or other amounts owing hereunder against Landlord; provided,
however, that the foregoing shall in no way impair the right of Tenant to
commence a separate action against Landlord for any violation by Landlord of
the provisions hereof so long as Notice is first given to Landlord and any
holder of a mortgage or deed of trust covering either or both Buildings, the
Project, or any portion thereof, of whose address Tenant has theretofore been
notified.

     29.22 Quiet Enjoyment. Provided this Lease is in full force and effect
and no Event of Default then exists, Tenant may peaceably and quietly enjoy the
Premises without hindrance by Landlord or any person lawfully claiming through
or under Landlord, subject to the terms and conditions of this Lease and to all
Superior Leases and Mortgages.

     29.23 Transportation Management. Subject to the terms of Section
4.2.3(BBB), Tenant shall fully comply with all present or future governmentally
mandated programs intended to manage parking, transportation or traffic in and
around the Project and/or the Buildings, and in connection therewith, Tenant
shall take responsible action for the transportation planning and management of
all employees located at the Premises by working directly with Landlord, any
governmental transportation management organization or any other
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committees or entities. Such programs may include,
without limitation: (i) implementation of an in-house ridesharing program and
an employee transportation coordinator; (ii) working with employees and any
Project, Building or area-wide ridesharing program manager; (iii) instituting
employer-sponsored incentives (financial or in-kind) to encourage employees to
rideshare; and (iv) utilizing flexible work shifts for employees.

     29.24 No Discrimination. Tenant covenants by and for itself, its heirs,
executors, administrators and assigns, and all persons claiming under or
through Tenant, and this Lease is made and accepted upon and subject to the
following conditions: that there shall be no discrimination against or
segregation of any person or group of persons, on account of race, color,
creed, sex, religion, marital status, ancestry or national origin in the
leasing, subleasing, transferring, use, or enjoyment of the Premises, nor shall
Tenant itself, or any person claiming under or through Tenant, establish or
permit such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy, of tenants,
lessees, sublessees, subtenants or vendees in the Premises.

     29.25 Hazardous Substances.

          29.25.1 Definitions. For purposes of this Lease, the following
definitions shall apply: “Hazardous Material(s)” shall mean any substance or
material that is described as a toxic or hazardous substance, waste, material,
pollutant, contaminant or infectious waste, or any matter that in certain
specified quantities would be injurious to the public health or welfare, or
words of similar import, in any of the Environmental Laws or any other words
which are intended to define, list or classify substances by reason of
deleterious properties such as ignitability, corrosivity, reactivity,
carcinogenicity, toxicity or reproductive toxicity and includes, without
limitation, asbestos, petroleum (including crude oil or any fraction thereof,
natural gas, natural gas liquids, liquefied natural gas, or synthetic gas
usable for fuel, or any mixture thereof), petroleum products, polychlorinated
biphenyls, methane, urea formaldehyde, radon gas, radioactive matter, medical
waste, and chemicals which may cause cancer or reproductive toxicity.
“Environmental Laws” shall mean all federal, state, local and
quasi-governmental laws (whether under common law, statute or otherwise),
ordinances, decrees, codes, rulings, awards, rules, regulations and guidance
documents now or hereafter be enacted or promulgated as amended from time to
time, in any way relating to or regulating Hazardous Materials. As used in
this Lease, “Environmental Claims” shall mean any civil or administrative
claim, order, demand, charge, liability, obligation, action, suit, damage,
judgment, loss, cost expense, fine, or penalty, including but not limited to,
attorney’s fees, court costs and other costs of administrative proceedings or
litigation. For purposes of this Lease, the term “Pre-Existing Hazardous
Materials” means any and all contamination or pollution caused by any Hazardous
Materials previously released, discharged, leaked, stored, used, handled,
contained, or otherwise presently existing, in, on, under or around the
Project,
whether or not caused by Landlord, any prior owner, operator, lessee, or
any other party as of or prior to the date of this Lease. The obligations set
forth in this Section 29.25 shall survive the expiration or termination of this
Lease.

          29.25.2 Compliance with Environmental Laws. Landlord covenants that
during the Lease Term, Landlord shall comply with all Environmental Laws in
accordance with, and as required by, the terms of Article 24 of this Lease. To
the extent required by any Environmental Laws, subject to the Landlord
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promptly commence a removal,
encapsulation or other containment or remediation program reasonably selected
by Landlord which is required by and complies with all Applicable Laws (the
“Remediation Program”) to the extent not being performed by some other third
party, and (ii) at Landlord’s sole cost and expense, diligently prosecute the
Remediation Program and take such other reasonable action to completion in such
a manner as will make the Project and/or Premises free from any Hazardous
Materials in accordance with the standards promulgated in applicable
Environmental Laws, except for Hazardous Materials released, disturbed,
transported, stored, generated or used by Tenant or Tenant Parties after the
date of this Lease. Landlord and Tenant specifically agree that Tenant shall
not be responsible or liable to Landlord or to other parties for any of
Hazardous Materials which are released or brought in, on, under or about the
Project by Landlord or Landlord Party or by any non-Tenant Party (including
without limitation, any other tenants or occupants of the Project and their
agents, invitees, employees and contractors).

          29.25.3 Indemnifications. Landlord agrees to indemnify, defend, protect
and hold harmless the Tenant Parties from any and all Environmental Claims
arising from (i) Hazardous Materials brought onto the Project by Landlord or
any Landlord Party, (ii) Landlord’s negligence or willful misconduct in
connection with a Remediation Program relating to Pre-Existing Hazardous
Materials, and (iii) any breach of this Section 29.25 by Landlord. Tenant
agrees to indemnify, defend, protect and hold harmless the Landlord Parties
from any and all Environmental Claims arising from any Hazardous Materials to
the extent placed in, on, under or around the Premises or the Project by Tenant
or Tenant Parties. Nothing in this Section 29.25 shall constitute a waiver or
limitation of any legal rights which Landlord or Tenant may have including,
without limitation, the right to implied indemnity. The indemnification
obligation under this Section 29.25 shall not be limited in any way by any
limitation on the amount or type of insurance carried by Landlord or Tenant.

          29.25.4 Pre-Existing Hazardous Materials. Subject to the Landlord
Compliance Conditions, with respect to any Pre-Existing Hazardous Materials,
Landlord shall be responsible, at its sole cost and expense, for the treatment,
removal, and management of such Pre-Existing Hazardous Materials to the extent
required by, and in compliance with, all Applicable Laws and Environmental
Laws. Any costs incurred by Landlord in connection with such Pre-Existing
Hazardous Materials shall be specifically excluded from Operating Expenses.
Landlord covenants that during the Lease Term, Landlord shall comply with all
Environmental Laws in accordance with, and as required by, the terms of this
Section 29.25.

          29.25.5 Insurance. Landlord agrees that its insurance coverage for the
Project shall insure both property damage and personal injury caused by
methane-ignited fires.

          29.25.6 Methane Costs Triggered by Tenant’s Improvements. Notwithstanding
anything in this Lease to the contrary, in the event that, in connection with
the construction of any Common Area Alterations in the Project, methane
remediation or treatment is required, so long as, in connection therewith,
Tenant shall not have caused a penetration of the ground of greater than five
(5) feet, Landlord shall perform such remediation or treatment, at Landlord’s
sole cost and expense (and not as an Operating Expense) (and, in such instance,
Landlord shall be responsible for any increased costs of construction incurred
by Tenant as a result of the existence of methane). In the event that Tenant
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greater than five (5) feet, then such
remediation or treatment shall be performed by Landlord at Tenant’s expense
(and Tenant shall be responsible for any increased costs of construction
incurred by Tenant as a result of the existence of methane).

     29.26 Successors. Except as otherwise expressly provided herein, the
obligations of this Lease shall bind and benefit the successors and assigns of
the parties hereto; provided, however, that no assignment, sublease or other
transfer in violation of the provisions of Article 14 shall operate to vest any
rights in any putative assignee, subtenant or transferee of Tenant.

     29.27 Intentionally Deleted.

     29.28 Development of the Project.

          29.28.1 Subdivision. Landlord reserves the right to subdivide the Field
from Building 3 and the real property underlying Building 3. Tenant agrees to
execute and deliver, within twenty (20) days after Landlord’s written demand,
and in the form reasonably requested by Landlord, any additional documents
needed to conform this Lease to the circumstances resulting from a subdivision
and any and all maps in connection therewith so long as the same conforms to
the requirements of this Lease (and any other documentation required, subject
to and in accordance with the terms of Article 5). Landlord shall reimburse to
Tenant the actual, documented and reasonable attorneys’ fees incurred by Tenant
in reviewing such documents, not to exceed Seven Hundred Fifty Dollars
($750.00). Notwithstanding anything to the contrary set forth in this Lease,
the separate ownership of Building 3 by an entity other than Landlord shall not
affect the calculation of Direct Expenses or Tenant’s payment of Tenant’s Share
of Direct Expenses.

          29.28.2 The Other Improvements. Subject to Article 4, if Building 3 is
owned by an entity other than Landlord, Landlord shall enter into an agreement
with the owner or owners of Building 3 to provide (i) subject to the terms of
this Lease, for reciprocal rights of access, use and/or enjoyment of the
Project parking facilities (provided that in no event shall the same minimize
or alter Landlord’s obligation to cause the parking spaces available to
occupants of Building 3 and the Playa Vista Visitor’s Center to be physically
separate from the Existing Parking Garage in accordance with the terms of this
Lease), (ii) for the common management, operation, maintenance, improvement
and/or repair of the Project Parking Facilities, (iii) subject to the terms of
this Lease, for the allocation of a portion of the Direct Expenses attributable
to the parking facilities and Field to Building 3, (iv) for the matters covered
by Articles 4, 21, and 28 that relate to Phase II (i.e. the Field and the
Building 3 site) and (v) for any other matter which Landlord deems reasonably
necessary so long as, subject to the terms of this Lease, any such other matter
does not materially interfere with Tenant’s use of the Premises for the
Permitted Use
or Tenant’s other rights under this Lease (including Tenant’s use of the
Project parking facilities, Special Use Areas, Field and Common Areas) or
increase Tenant’s monetary obligations under this Lease or otherwise adversely
affect Tenant’s rights under this Lease. Nothing contained in this Section
29.28 shall alter or modify Landlord’s rights with respect to the amendment of
or creation of new Underlying Documents, subject to and in accordance with the
terms of Article 5 of this Lease. Subject to the terms of the Purchase Option
Agreement, nothing contained herein shall be deemed or construed to limit or
otherwise affect Landlord’s right to sell the Project as a whole.

	 	 	 
	 	 	
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          29.28.3
Construction of Project and Other Improvements. Tenant
acknowledges that portions of the Project and areas immediately adjacent to the
Project, including without limitation, Building 3, may be under construction
following Tenant’s occupancy of the Premises, and that such construction may
result in levels of noise, dust, obstruction of access, etc. which are in
excess of that present in a fully constructed project. Subject to Section
19.5.2 hereof, Tenant hereby waives any and all rent offsets or claims of
constructive eviction which may arise in connection with such construction.
Landlord agrees to use commercially reasonable efforts to not materially
interfere with Tenant’s use of the Premises for the Permitted Use (including
Tenant’s use of the Project parking facilities, the Field, the Common Areas and
Tenant’s Special Use Areas) in connection with any such construction
(including, but not limited to, Landlord’s construction of the Building 3,
subject to the terms of Article 21 of this Lease).

     29.29 Arbitration.

          29.29.1 General Submittals to Arbitration. The submittal of all matters
to arbitration in accordance with the provisions of this Section 29.29 is the
sole and exclusive method, means and procedure to resolve any and all claims,
disputes or disagreements arising under this Lease, including, but not limited
to any matter relating to Landlord’s failure to approve an assignment, sublease
or other transfer of Tenant’s interest in the Lease under Article 14 of this
Lease, any other defaults by Landlord, or any Tenant Default, except for (i)
all claims by either party which (A) seek anything other than enforcement of
rights under this Lease, or (B) are primarily founded upon matters of fraud,
willful misconduct, bad faith or any other allegations of tortious action, and
seek the award of punitive or exemplary damages, (ii) all claims by either
party arising from the determination of Fair Market Rental Rate, and (iii)
claims relating to Landlord’s exercise of any unlawful detainer rights pursuant
to California law or rights or remedies used by Landlord to gain possession of
the Premises or terminate Tenant’s right of possession to the Premises, which
disputes shall be resolved by suit filed in the Superior Court of Los Angeles
County, California, the decision of which court shall be subject to appeal
pursuant to Applicable Laws. The parties hereby irrevocably waive any and all
rights to the contrary and shall at all times conduct themselves in strict,
full, complete and timely accordance with the provisions of this Section 29.29
and all attempts to circumvent the terms and conditions of this Section 29.29
shall be absolutely null and void and of no force or effect whatsoever. As to
any matter submitted to arbitration (except with respect to the payment of
money) to determine whether a matter would, with the passage of time,
constitute a default, such passage of time shall not commence to run until any
such affirmative arbitrated determination, as long as it is simultaneously
determined in such arbitration that the challenge of such matter as a potential
Tenant Default or Landlord default was made in good faith. As to any matter
submitted to
arbitration with respect to the payment of money, to determine whether a
matter would, with the passage of time, constitute a default, such passage of
time shall not commence to run in the event that the party which is obligated
to make the payment does in fact make the payment to the other party. Such
payment can be made “under protest,” which shall occur when such payment is
accompanied by a good faith Notice stating the reasons that the party has
elected to make a payment under protest. Such protest will be deemed waived
unless the subject matter identified in the protest is submitted to arbitration
as set forth in this Section 29.29.

	 	 	 
	 	 	
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          29.29.2 JAMS. Any dispute to be arbitrated pursuant to the provisions of
this Section 29.29 shall be determined by binding arbitration before a retired
judge of the Superior Court of the State of California (the “Arbitrator”) under
the auspices of Judicial Arbitration & Mediation Services, Inc. (“JAMS”). Such
arbitration shall be initiated by the parties, or either of them, within ten
(10) days after either party sends Notice (the “Arbitration Notice”) of a
demand to arbitrate to the other party and to JAMS. The Arbitration Notice
shall contain a description of the subject matter of the arbitration, the
dispute with respect thereto, the amount involved, if any, and the remedy or
determination sought. The parties may agree on a retired judge from the JAMS
panel. If they are unable to promptly agree, JAMS will provide a list of three
available judges who, to the extent available, have had extensive experience in
handling real estate commercial lease transactions as practitioners and each
party may strike one. The remaining judge (or if there are two, the one
selected by JAMS) will serve as the Arbitrator. In the event that JAMS shall
no longer exist or if JAMS fails or refuses to accept submission of such
dispute, then the dispute shall be resolved by binding arbitration before the
American Arbitration Association (“AAA”) under the AAA’s commercial arbitration
rules then in effect.

          29.29.3 Arbitration Procedure.

               29.29.3.1 Pre-Decision Actions. The Arbitrator shall schedule a
pre-hearing conference to resolve procedural matters, arrange for the exchange
of information, obtain stipulations, and narrow the issues. The parties will
submit proposed discovery schedules to the Arbitrator at the pre-hearing
conference. The scope and duration of discovery will be within the sole
discretion of the Arbitrator. The Arbitrator shall have the discretion to
order a pre-hearing exchange of information by the parties, including, without
limitation, production of requested documents, exchange of summaries of
testimony of proposed witnesses, and examination by deposition of parties and
third-party witnesses. This discretion shall be exercised in favor of
discovery reasonable under the circumstances.

               29.29.3.2 The Decision. The arbitration shall be conducted in Los
Angeles, California. Any party may be represented by counsel or other
authorized representative. In rendering a decision(s), the Arbitrator shall
determine the rights and obligations of the parties according to the
substantive and procedural laws of the State of California and the provisions
of this Lease. The Arbitrator’s decision shall be based on the evidence
introduced at the hearing, including all logical and reasonable inferences
therefrom. The Arbitrator may make any determination, and/or grant any remedy
or relief (an “Arbitration Award”) that is just and equitable. The decision
must be based on, and accompanied by, a written statement of decision
explaining the factual and legal basis for the decision as to each of the
principal controverted issues. The decision shall be conclusive and
binding, and it may thereafter be confirmed as a judgment by the Superior
Court of the State of California, subject only to challenge on the grounds set
forth in the California Code of Civil Procedure Section 1286.2. The validity
and enforceability of the Arbitrator’s decision is to be determined exclusively
by the California courts pursuant to the terms and conditions of this Lease.
The Arbitrator shall award costs, including without limitation attorneys’ fees,
and expert and witness costs, to the prevailing party as defined in California
Code of Civil Procedure Section 1032 (“Prevailing Party”), if any, as
determined by the Arbitrator in his discretion. The Arbitrator’s fees and
costs shall be paid by the non-prevailing party as determined by the Arbitrator
in his

	 	 	 
	 	 	
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discretion. A party shall be determined by the Arbitrator to be the
prevailing party if its proposal for the resolution of dispute is the closer to
that adopted by the Arbitrator.

     29.30 Calendar Days. All references made in this Lease to the word
“days,” whether for Notices, schedules or other miscellaneous time limits,
shall at all times herein be deemed to mean calendar days, unless specifically
references as “business” or “working” days. Business or working days shall
mean the days Monday-Friday, excluding Holidays.

     29.31 Covenants and Conditions. It is agreed that each of the provisions
of this Lease shall be terms, covenants, as well as conditions, and the failure
of Tenant or Landlord to comply with any of the terms, covenants or conditions
of this Lease shall entitle Tenant or Landlord to exercise the remedies of
Tenant on default or Landlord on default as set forth in this Lease.

     29.32 Survival of Provisions Upon Termination of Lease. Any term,
covenant or condition of this Lease which requires the performance of
obligations or forbearance of an act by either party hereto after the
termination of this Lease shall survive such termination of this Lease. Such
survival shall be to the extent reasonably necessary to fulfill the intent
thereof, or if specified, to the extent of such specification, as same is
reasonably necessary to perform the obligations and/or forbearance of an act
set forth in such term, covenant or condition. Notwithstanding the foregoing
in the event a specific term, covenant or condition is expressly provided for
in such a clear fashion as to indicate that such performance of an obligation
or forbearance of an act is no longer required, then the specific shall govern
over this general provision of this Lease.

     29.33 Good Faith. Except (i) for matters for which there is a standard of
consent or discretion specifically set forth in this Lease; (ii) matters which
could have an adverse effect on the Building Structure or the Building Systems,
or which could affect the exterior appearance of Building 1 and/or Building 2,
or (iii) matters covered by Article 19 (Defaults; Remedies) of this Lease
(collectively, the “Excepted Matters”), any time the consent of Landlord or
Tenant is required under this Lease, such consent shall not be unreasonably
withheld or delayed, and, except with regard to the Excepted Matters, whenever
this Lease grants Landlord or Tenant the right to take action, exercise
discretion, establish Rules and Regulations or make an allocation or other
determination, Landlord and Tenant shall act reasonably and in good faith.

     29.34 Telecommunication Equipment/Roofs.

          29.34.1 In General. Landlord hereby agrees that, subject to the terms of
this Section 29.24, Tenant shall have unfettered access to and the exclusive
use of the roofs of Building 1 and Building 2, and shall be permitted to
construct and/or install any improvements located thereon provided that (i)
Tenant complies with the terms of this Lease (including, without limitation,
the Tenant Work Letter and/or Article 8 of this Lease, as the case may be),
(ii) Tenant obtains the prior approval of Landlord, which shall not be
unreasonably conditioned, withheld or delayed, and (iii) Tenant at all times
complies with Applicable Laws. Notwithstanding anything contained herein to
the contrary, in addition to any portions of the roof used for Building systems
and equipment, to the extent not reasonably required in connection with the
installation of Tenant’s equipment which is installed as part of the initial
Tenant Improvements and provided that (i) the same does not interfere with
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equipment, (ii) the equipment installed or permitted to
be installed by Landlord is located outside of the currently existing roof
enclosure, and (iii) a screen reasonably acceptable to Tenant is installed
around any equipment installed by or through Landlord, Landlord shall have the
right to use a ten foot by ten foot area on the roof of each Building mutually
and reasonably agreed upon by Landlord and Tenant.

          29.34.2 Terms. At any time during the Lease Term, Tenant shall have the
right to install, at Tenant’s sole cost and expense but free of any charge by
Landlord, satellite dishes and antennae (collectively, the “Telecommunication
Equipment”), in areas of the roof (“Roof Location”) selected by Tenant and
reasonably approved by Landlord. Landlord agrees that subject to Section
29.34.1 above, Landlord’s and any third party’s use of the roof will be
prohibited. The physical appearance and location of any such Telecommunication
Equipment shall be subject to Landlord’s reasonable approval, and Landlord may
require Tenant to install screening around such equipment, at Tenant’s sole
cost and expense, as reasonably designated by Landlord. Tenant shall maintain
such Telecommunication Equipment at Tenant’s sole cost and expense. In the
event Tenant elects to exercise its right to install Telecommunication
Equipment as set forth in this Section 29.34, then Tenant shall give Landlord
prior Notice thereof and Landlord and Tenant shall execute a Telecommunication
Agreement in substantially the form as Exhibit G, attached hereto and
incorporated herein by this reference, covering the installation and
maintenance of such Telecommunication Equipment, Tenant’s indemnification of
Landlord with respect thereto, Tenant’s obligation to remove such
Telecommunication Equipment upon the expiration or earlier termination of this
Lease, and other related matters. Landlord shall ensure that use of any other
entities’ telecommunication equipment located on the roof of each Building
shall not unreasonably interfere with the Telecommunication Equipment.

     29.35
Generator. Subject to the terms hereof, Tenant shall have the right
to install a generator (the “Generator”) in a location mutually and reasonably
agreed upon by Landlord and Tenant. Subject to Landlord’s prior approval of
all plans and specifications, which approval shall not be unreasonably
withheld, conditioned or delayed and at Tenant’s sole cost and expense,
Landlord shall permit Tenant to install and maintain the Generator, and
connections between the Generator and Landlord’s electrical systems in the
Building, all in compliance with all Applicable Laws. Such Generator shall be
used by Tenant only during (i) testing and regular maintenance, and (ii) the
period of any electrical power outage in the
Buildings. Tenant shall submit the specifications for design, operation,
installation and maintenance of the connections to the Generator and facilities
related thereto to Landlord for Landlord’s consent, which consent will not be
unreasonably withheld, conditioned or delayed and may be conditioned on Tenant
complying with such reasonable requirements imposed by Landlord, based on the
advice of Landlord’s engineers, so that the Building’s Systems are not
materially and adversely affected by the installation and operation of the
Generator. The cost of design (including engineering costs) and installation
of the Generator and the costs of the Generator itself shall be Tenant’s sole
responsibility. All repairs and maintenance of the Generator shall be the sole
responsibility of Tenant, and Landlord makes no representation or warranty with
respect to such Generator. At Landlord’s option, Landlord may require that
Tenant remove the Generator and all related facilities upon the expiration or
earlier termination of this Lease and repair all damage to the Project
resulting from such removal, at Tenant’s sole cost and expense. To the extent
Tenant delivers a Removal Designation Reminder in the same manner as set forth
in Section 8.5 of this Lease with Tenant’s plans and specification for the
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approval, Landlord shall make such
election concurrently with Landlord’s approval of the Generator. The terms of
the preceding sentence shall survive the termination or earlier expiration of
this Lease. The Generator shall be deemed to be a part of the Premises for
purposes of the indemnification and insurance provisions of this Lease, and
Tenant shall maintain, at Tenant’s cost, industry standard “boiler and
machinery” insurance coverage with respect thereto.

     29.36
Storage Space. Commencing as of September 1, 2005, and continuing
thereafter throughout the Lease Term, Tenant shall rent the approximately 217
square feet of storage space located on the P-1 level of the Existing Parking
Garage (the “Storage Space”). The Storage Space shall be rented by Tenant at
the “Storage Rent” set forth below.

	 	 	 	 	 
	 	 	Monthly
	Lease Year	 	Storage Rent
	
	 	

	1
	 	 	N/A	 
	2
	 	 	N/A	 
	3
	 	$	289.45	 
	4
	 	$	299.00	 
	5
	 	$	308.87	 
	6
	 	$	319.06	 
	7
	 	$	329.59	 
	8
	 	$	340.46	 
	9
	 	$	351.70	 
	10
	 	$	363.31	 

The Storage Rent payable by Tenant during any applicable Option Term shall be
determined as part of, and concurrently with, the determination of applicable
Option Rent. All Storage Rent shall be due on a monthly basis concurrent with
Tenant’s payment of the Base Rent due with respect to the Premises, and shall
constitute Rent under the Lease. Tenant shall be fully responsible for
repairing any damage to the Storage Space resulting from or relating to
Tenant’s use thereof. Tenant shall comply with such reasonable rules and
regulations as promulgated by Landlord from time to time pertaining to the use
of such Storage Space. Tenant shall indemnify, defend and hold Landlord and
the Landlord’s Parties from and against any and all loss, liability, claims,
expenses, damages or costs arising out of or in connection with Tenant’s use of
the Storage Space, except to the extent caused by Landlord’s negligence or
willful misconduct. Tenant’s insurance obligations under the Lease shall also
pertain to Tenant’s use of the Storage Space.

	 	 	 
	 	 	
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     IN WITNESS WHEREOF, Landlord and Tenant have caused their duly authorized
representatives to execute this Lease as of the day and date first above
written.

	 	 	 	 	 	 	 
	 	 	 	“Landlord”:
	 	 	 	 	 	 	 
	 	 	 	PLAYA VISTA – WATER’S EDGE, LLC,

a Delaware limited liability company
	 	 	 	 	 	 	 
	 	 	 	By:	CA-Playa Vista Water’s Edge Limited Partnership,

a Delaware limited partnership,

its Co-Manager
	 	 	 	 	 	 	 
	 	 	 	 	By:	EOM GP, L.L.C.,
	 	 	 	 	 	a Delaware limited liability company,

its general partner
	 	 	 	 	 	 	 
	 	 	 	 	 	By:	Equity Office Management, L.L.C.,
	 	 	 	 	 	 	a Delaware limited liability company,

its non-member manager
	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:   /s/   Robert E. Dezzutti
	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:   Robert E. Dezzutti
	 	 	 	 	 	 	Title:   Senior Vice President
	 	 	 	 	 	 	 
	 	 	 	By:	Maguire Partners – PV Investor Partnership, L.P.,

a California limited partnership,

its Co-Manager
	 	 	 	 	 	 	 
	 	 	 	 	By:	Maguire Partners – PV IP GP, LLC,

a California limited liability company,

its general partner
	 	 	 	 	 	 	 
	 	 	 	 	 	By:	Maguire Partners SCS, Inc.,

a California corporation,

its Manager
	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:   /s/
  John A. Morales
	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:   John A. Morales
	 	 	 	 	 	 	Title:   Senior Vice President

	 	 	 
	 	 	
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“Tenant”:
	 	 	
 
	 	
ELECTRONIC ARTS INC., a Delaware corporation
	 	 	
 
	 	By:	/s/   Lawrence F. Probst III
	 	 	

	 	Its:	
CHIEF EXECUTIVE OFFICER
	 	 	
 
	 	By:	 
	 	 	

	 	Its:	 
	 	 	

	 	 	 
	 	 	
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EXHIBIT A

OUTLINE OF PREMISES

	 	 	 	 	 
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EXHIBIT A-1

SITE PLAN

	 	 	 	 	 
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EXHIBIT A-2

BUILDING 3 LOCATION LIMITATION

	 	 	 	 	 
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EXHIBIT A-3

OUTLINE OF LANDLORD STAGING AREA

	 	 	 	 	 
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EXHIBIT B

RULES AND REGULATIONS

     Tenant shall faithfully observe and comply with the following Rules and
Regulations.

     1.     Except for Tenant’s Secured Areas, Tenant shall not alter any lock or
install any new or additional locks or bolts on any doors or windows of the
Premises without obtaining Landlord’s prior written consent. Tenant shall bear
the cost of any lock changes or repairs required by Tenant.

     2.     Unless requested otherwise by Tenant, Landlord shall keep locked all
entrance and exit doors of the Buildings at all times; provided, however, that
Landlord shall provide Tenant with reasonable access to the Buildings and the
Project parking facilities throughout the Lease Term. Tenant, its employees
and agents must be sure that the doors to the Buildings are securely closed and
locked when leaving the Premises. Any tenant, its employees, agents or any
other persons entering or leaving the Buildings at any time when it is so
locked, or any time when it is considered to be after the Business Hours for
the subject Building, may be required to sign the Building register. Access to
the Buildings may be refused unless the person seeking access has proper
identification or has a previously arranged pass for access to the subject
Building. The Landlord and his agents shall in no case be liable for damages
for any error with regard to the admission to or exclusion from the Buildings
of any person. In case of invasion, mob, riot, public excitement, or other
commotion, Landlord reserves the right to prevent access to the Buildings or
the Project during the continuance thereof by any means it deems appropriate
for the safety and protection of life and property.

     3.     Landlord shall have the right to reasonably prescribe the weight, size
and position of all safes and other extraordinarily heavy property brought into
the Buildings and also the reasonable manner of moving the same in and out of
the Buildings, all to the extent reasonably necessary to avoid damage to the
Buildings and/or the Project. Safes and other heavy objects shall, if
considered necessary by Landlord to the extent reasonably necessary to avoid
damage to the Buildings and/or the Project, stand on supports of such thickness
as is reasonably necessary to properly distribute the weight. Landlord will
not be responsible for loss of or damage to any such safe or property in any
case. Any damage to any part of the Buildings, its contents, occupants or
visitors by moving or maintaining any such safe or other property shall be the
sole responsibility and expense of Tenant except to the extent covered by any
insurance required to be maintained by Landlord under the Lease.

     4.     Any requests of Tenant shall be directed to the management office for
the Project or at such office location designated by Landlord. Employees of
Landlord shall not perform any work or do anything outside their regular duties
unless under special instructions from Landlord.

     5.     Intentionally deleted.

     6.     The toilet rooms, urinals, wash bowls and other apparatus shall not be
used for any purpose other than that for which they were constructed, and no
foreign substance of any kind whatsoever shall be thrown therein. The expense
of any breakage, stoppage or damage

	 	 	 
	 	 	
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resulting from the violation of this rule shall be borne by the tenant
who, or whose employees or agents, shall have caused it.

     7.     Tenant shall not overload the floor of the Premises.

     8.     Intentionally Deleted.

     9.     Except as otherwise expressly provided in the Lease, Tenant shall not
use or keep in or on the Premises, the Buildings, or the Project any kerosene,
gasoline or other inflammable or combustible fluid or material.

     10.     Intentionally Deleted.

     11.     Except as provided in the Lease, Tenant shall not use, keep or permit
to be used or kept, any foul or noxious gas or substance in or on the Premises,
or permit or allow the Premises to be occupied or used in a manner unreasonably
offensive or objectionable to Landlord or other occupants of the Project by
reason of noise, odors, or vibrations, or unreasonably interfere in any way
with other tenants or those having business therein.

     12.     Tenant shall not bring into or keep within the Project, the Buildings
or the Premises any animals, except for seeing eye dogs accompanied by their
masters or other dogs (but only to the extent any such other dogs are located
in the Premises only) and in compliance with these Rules and Regulations and
Applicable Laws, with Tenant acknowledging and agreeing that under no
circumstances shall any such other dogs be allowed in any other areas of the
Project (including the Common Areas) except for normal ingress and egress to
the Building. Tenant acknowledges and agrees that any such other dogs shall be
kept by Tenant in a manner consistent with Comparable Buildings such that the
presence of such other dogs does not cause any objectionable odors or noises
and if such objectionable odors and/or noises do occur then Tenant shall not be
allowed to keep such dogs in the Premises. In the event Landlord incurs
increased costs (including, but not limited to, increased janitorial, security
and insurance costs) due to the presence of any such other dogs in the Project
then Tenant shall pay to Landlord such increased costs within thirty (30) days
of Landlord’s Notice thereof to Tenant.

     13.     Except as otherwise expressly provided in the Lease and except for any
employee lunchrooms and/or cafeterias and/or outdoor barbecues that may be
constructed by Tenant in the Premises pursuant to Article 8 of the Lease or the
Tenant Work Letter, no cooking shall be done or permitted on the Premises, nor
shall the Premises be used for the storage of merchandise, for lodging or for
any improper, objectionable or immoral purposes. Notwithstanding the
foregoing, Underwriters’ laboratory-approved equipment and microwave ovens may
be used in the Premises for heating food and brewing coffee, tea, hot chocolate
and similar beverages for employees and visitors, provided that such use is in
accordance with all applicable federal, state and city laws, codes, ordinances,
rules and regulations.

     14.     Landlord reserves the right to exclude or expel from the Project any
person who, in the judgment of Landlord, is intoxicated or under the influence
of liquor or drugs, or who shall in any manner do any act in violation of any
of these Rules and Regulations.

     15.     Intentionally deleted.

	 	 	 
	 	 	
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     16.     Tenant shall store all its trash and garbage within the interior of
the Premises. No material shall be placed in the trash boxes or receptacles if
such material is of such nature that it may not be disposed of in the ordinary
and customary manner of removing and disposing of trash and garbage in Los
Angeles, California without violation of any law or ordinance governing such
disposal. All trash, garbage and refuse disposal shall be made only through
entry-ways and elevators provided for such purposes at such times as Landlord
shall reasonably designate.

     17.     Tenant shall comply with all safety, fire protection and evacuation
procedures and regulations reasonably established by Landlord or any
governmental agency.

     18.     Except as provided in the Lease, no awnings or other projection shall
be attached to the outside walls of the Buildings without the prior written
consent of Landlord. No curtains, blinds, shades or screens shall be attached
to or hung in, or used in connection with, any window or door of the Premises
without the prior written consent of Landlord.

     19.     Intentionally deleted.

Subject to Tenant’s prior written approval in accordance with the terms of the
Lease, Landlord reserves the right to change or rescind any one or more of
these Rules and Regulations, or to make such other and further reasonable Rules
and Regulations as in Landlord’s reasonable judgment may from time to time be
reasonably necessary for the management, safety, care and cleanliness of the
Premises, Buildings, the Common Areas and the Project, and for the preservation
of good order therein. Tenant shall be deemed to have read these Rules and
Regulations and to have agreed to abide by them as a condition of its occupancy
of the Premises. Landlord agrees that the Rules and Regulations shall not be
unreasonably modified or enforced in a manner which will materially interfere
with the conduct of Tenant’s Permitted Use from the Premises or Tenant’s use of
the Project parking facility, Field and/or Special Use Areas.

	 	 	 
	 	 	
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EXHIBIT C

NOTICE OF LEASE TERM DATES

Date:                                          

To:                                          

                                                

                                                

                                                

	 	 	 
	Re:	 	
Office Lease dated             
     ,
20      between          
     , a
                      
(“Landlord”),
and       
     , a
              (“Tenant”)
concerning Suite       on floor(s)
      of the office building located at        
       ,
                 , California.

Gentlemen:

     In accordance with the Office Lease (the “Lease”), we wish to advise you
and/or confirm as follows:

     1.     The Lease Term commenced on     
            for a term of
               
ending on          
      .

     2.     Rent commenced to accrue on      
          , in the amount of
              .

     3.     If the Lease Commencement Date is other than the first day of the
month, the first billing will contain a pro rata adjustment. Each billing
thereafter, with the exception of the final billing, shall be for the full
amount of the monthly installment as provided for in the Lease.

     4.     Your rent checks should be made payable to      
               
at                    .

     Pursuant to the terms of Section 2.1.1 of your Lease, you are required to
return an executed copy of this notice to Landlord within ten (10) business
days following your receipt hereof, and thereafter the statements set forth
herein shall be conclusive and binding upon you. Your failure

	 	 	 
	 	 	
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to timely execute and return this notice shall constitute your acknowledgment
that the statements included herein are true and correct, without exception.

	 	 	 	 	 
	 	 	PLAYA
VISTA - WATER’S EDGE, LLC, a
Delaware limited liability company
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	 	 	

	 	 	
Name:
	 	 
	 	 	 	 	

	 	 	
Title:
	 	 
	 	 	 	 	

Agreed to and Accepted as

of             ,
20    .

“Tenant”:

ELECTRONIC ARTS INC.,

a Delaware corporation

By:

   Its:

By:

   Its:

	 	 	 
	 	 	
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EXHIBIT D

TENANT WORK LETTER

PREAMBLE

     This Tenant Work Letter sets forth the terms and conditions relating to
the construction of the Premises. In connection with the foregoing, Landlord
and Tenant hereby acknowledge and agree that (i) the parties contemplate that
all or portions of the Premises shall be constructed substantially at the same
time, and (ii) except as specifically set forth in this Tenant Work Letter to
the contrary, references to the “Premises” shall mean, collectively, all
Tranches. This Tenant Work Letter is essentially organized chronologically and
specifically addresses the issues of the construction of the Premises, in
sequence, as such issues will arise during the actual construction of the
Premises. All references in this Tenant Work Letter to Articles or Sections of
“this Lease” shall mean the relevant portions of Articles 1 through 29 of the
Office Lease to which this Tenant Work Letter is attached as Exhibit D, and all
references in this Tenant Work Letter to Sections of this “Tenant Work Letter”
shall mean the relevant portions of Sections 1 through 6 of this Tenant Work
Letter. Except as defined to the contrary, all defined terms used in the
Tenant Work Letter shall have the same meaning as the terms defined in the
Lease.

ARTICLE 1

DELIVERY OF THE PREMISES AND BASE BUILDING;

ELEVATOR CONSTRUCTION

     1.1 Delivery. In accordance with the terms and conditions of this Lease,
Landlord shall, at Landlord’s sole cost and expense, deliver the Premises and
Base Building to Tenant. The “Base Building” shall consist of those items
which exist in the Project as of the date of this Lease. The Base Building,
Building Structure and Building Systems, shall, as of the Lease Commencement
Date, be in good condition and working order, free of defects (which Landlord
shall repair at Landlord’s expense and not as an Operating Expense in the
Buildings and Project at any time discovered during the initial term of the
Lease), and shall comply with applicable building codes and other governmental
laws, ordinances and regulations which were enacted prior to the Lease
Commencement Date and applicable to new construction for unoccupied space,
whether or not then being enforced and disregarding variances and
grandfathered/grandmothered rights (collectively, the “Code”) at Landlord’s
sole cost, but only to the extent that Landlord’s failure to comply therewith
would prohibit Tenant from obtaining or maintaining a certificate of occupancy,
or its equivalent, for the Premises (to the extent the Tenant Improvements in
the Premises consist of typical general office improvements).

     1.2 Elevator Construction. Prior to the Tranche Commencement Date for
Tranche 4, Landlord shall install, at Landlord’s sole cost and expense, an
elevator cab in the existing empty elevator shaft in Building 2, which cab
shall be reasonably consistent (as to finish work and systems and equipment)
with the other elevator cabs servicing Building 2. Tenant acknowledges and
agrees that all elevators will need to be shut down during such elevator
installation and that Landlord shall have no liability as a result thereof.
Landlord shall provide Tenant with reasonable prior notice of the elevator
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to schedule the installation of the elevator during times reasonably
acceptable to Tenant. To the extent possible, Landlord shall install the
elevator described herein after hours and otherwise in a manner which minimized
material interference with the conduct of Tenant’s business.

     1.3 Loading Dock. Landlord shall, at Landlord’s sole cost and expense,
construct a loading dock to service the Project a location mutually and
reasonably agreed upon by Landlord and Tenant (provided that Landlord may
relocate the same, at Landlord’s sole cost and expense, at such time, if
applicable, as Building 3 is constructed, to a location mutually and reasonably
agreed upon by Landlord and Tenant which does not materially interfere with the
Field). Any such loading dock shall be constructed in accordance with plans
and specifications to be prepared by Landlord.

     1.4 Temporary Power Poles. Landlord shall, at Landlord’s sole cost and
expense, remove and/or, as necessary, relocate the existing temporary power
poles located on the Field and the area in which the Surface Parking Lot shall
be constructed. In the event that any of such poles must be relocated,
Landlord and Tenant shall mutually and reasonably agreed upon the location to
which the subject pole(s) must relocated.

     1.5 Surface Parking Lot. Landlord shall complete the Surface Parking Lot,
subject to delay by “Force Majeure Delay”, on or before April 1, 2004, provided
that if such Surface Parking Lot is not completed by January 1, 2004, Landlord,
at its sole cost and expense, must temporarily enlarge the Playa Capital
exclusive parking area to accommodate any “Playa Vista Visitor Center” parking.

ARTICLE 2

TENANT IMPROVEMENTS

     2.1 Tenant Improvement Allowance.

          2.1.1 In General. Tenant shall be entitled to (a) a one-time tenant
improvement allowance (the “Tenant Improvement Allowance”) in the amount equal
to the sum of (i) $46.00 per rentable square foot of Tranche 1 Part A, (ii)
$1,115,035.00 for Tranche 1 Part B, (iii) $43.75 per rentable square foot of
Tranche 2, (iv) $41.50 per rentable square foot of Tranche 3, (v) $37.00 per
rentable square foot of Tranche 4, for the costs relating to the initial design
and construction of Tenant’s improvements which are permanently affixed to the
Premises (the “Tenant Improvements”), and (b) a one-time improvement allowance
in the amount of $508,770.00 (the “Common Area Allowance”) for “Common Area
Improvements,” as that term is defined in Section 2.1.2, below, all as more
particularly described below; provided, however, that up to Three and 50/100
Dollars ($3.50) per rentable square foot of the Premises (excluding Phase IB)
of the Tenant Improvement Allowance plus $250,000.00 for Phase IB may be used
by Tenant for cabling, conduit, Tenant’s Exterior Signage and for fixtures,
furniture and equipment installed in the Premises (collectively, the “Other
Items”). The Tenant Improvement Allowance shall also include amounts, if any,
due Tenant pursuant to the terms of Section 2.1.3 of the Lease.

          2.1.2 Use of Tenant Improvement Allowance; Common Area Improvements.
Landlord agrees that Tenant may build out all or any portion of the Premises,
spend all or any portion of the Tenant Improvement Allowance on any portion of
the Premises and spend all or

	 	 	 
	 	 	
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any portion of the Tenant Improvement Allowance well in advance of the
applicable Tranche Rent Commencement Dates and such actions by Tenant shall not
affect Landlord’s obligation to pay the Tenant Improvement Allowance as and
when provided for herein. Tenant hereby agrees that, concurrently with the
Tenant Improvements, Tenant shall construct a fence around the Project in
accordance with specifications provided by Tenant and approved by Landlord (in
Landlord’s reasonable discretion) (the “Fence”) and shall install the “Field
Improvements” and certain other Common Area improvements (e.g., landscaping in
the Common Areas) (collectively, the “Common Area Improvements”). The design
and construction of the Common Area Improvements shall be made by Tenant
subject to and in accordance with the terms of this Tenant Work Letter as if
the same were Tenant Improvements, provided that in lieu of the Design Problem
standard for Landlord’s approval which is applicable to the Tenant
Improvements, Landlord’s consent to the Common Area Improvements shall not be
unreasonably withheld, conditioned or delayed (provided that Landlord’s consent
shall be deemed to be reasonably withheld to the extent a Design Problem
exists). In connection with the foregoing, Landlord and Tenant hereby agree
that all plans and specifications relating to the Common Area Improvements
shall be subject to the approval of Landlord (which shall not be unreasonably
withheld, conditioned or delayed, provided that Landlord’s consent shall be
deemed to be reasonably withheld to the extent a Design Problem exists). For
purposes of this Tenant Work Letter, the “Field Improvements” shall mean such
improvements to the Field as may be reasonably agreed upon by Landlord and
Tenant, which improvements may include, without limitation, a sand volleyball
court, a soccer field, a basketball court, and the like. Subject to the terms
of this Tenant Work Letter (including Landlord’s approval of applicable plans
and specifications), Landlord hereby approves each of the foregoing specified
items to be included on the Field. In no event shall any portion of the Tenant
Improvement Allowance be available for the construction of the Common Area
Improvements nor shall the Common Area Allowance be available for the
construction of the Tenant Improvements.

          2.1.3 Tenant’s Offset Right. Notwithstanding anything to the contrary
contained herein, in the event that the Tenant Improvement Allowance required
to be paid by Landlord in accordance with the terms of this Tenant Work Letter
or any portion thereof, is not timely paid when due (provided that all
applicable conditions for the payment of any such amounts set forth herein have
been fully satisfied), and such failure shall continue for twenty (20) business
days following Landlord’s receipt of Tenant’s written notice thereof, then
Tenant shall be entitled to deduct from Rent next payable by Tenant under the
Lease the amount so paid by Tenant together with interest thereon, at the
Interest Rate, during the period from and after the date Tenant accurately
notifies Landlord that such amount should have been to Tenant through and
including the earlier of (A) the date Landlord reimburses Tenant for such
amount and (B) the date that Tenant deducts from Rent such amount; provided,
however, if within such 20 business-day period Landlord notifies Tenant that
Landlord disputes Tenant’s claim that Landlord failed to timely disburse any
portion of the Tenant Improvement Allowance, then Tenant shall not be entitled
to such offset, and the dispute shall be resolved pursuant to the arbitration
provisions in Section 29.29 of the Lease. If the dispute is resolved in favor
of Tenant in such arbitration proceeding, then Tenant shall be entitled to
offset against the Rent payable under the Lease such undisbursed amount of the
Tenant Improvement Allowance so paid by Tenant and which the arbitration panel
determined should have been disbursed by Landlord, together with interest
thereon, at the Interest Rate, from the date Landlord was obligated to pay such
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to Tenant) through and including the earlier of (1) the date Landlord
reimburses Tenant for such amount and (2) the date that Tenant deducts from
Rent such amount.

     2.2 Disbursement of the Tenant Improvement Allowance by Landlord.

          2.2.1 Tenant Improvement Allowance Items. Except as otherwise set forth
in this Tenant Work Letter, the Tenant Improvement Allowance shall be disbursed
by Landlord only for the following items and costs (collectively, the “Tenant
Improvement Allowance Items”) and, except as otherwise specifically and
expressly provided in this Tenant Work Letter, Landlord shall not deduct any
other expenses from the Tenant Improvement Allowance. The Tenant Improvement
Allowance Items shall consist of:

               2.2.1.1 Payment of the fees and costs of the “Architect,” project manager
and the “Engineers,” as those terms are defined in Section 3.1 of this Tenant
Work Letter, costs paid to Tenant’s consultants in connection with the design,
construction and move into the Premises and all related design and construction
costs, including the fees and costs of Tenant’s project management consultants,
and in connection therewith, Tenant shall reimburse to Landlord Landlord’s
actual, reasonable and documented costs incurred as a result of any
unaffiliated, third party review reasonably and necessarily required by
Landlord in order to approve the “Construction Drawings,” as that term is
defined in Section 3.1 of this Tenant Work Letter, by deducting such costs from
Tenant Improvement Allowance, provided that (i) notwithstanding the foregoing,
to the extent Tenant retains Saiful Bouquet for the structural components of
the Tenant Improvements, Tenant shall not be responsible for any third party
review costs for structural components of the Tenant Improvements, (ii) Tenant
shall have the right to approve (which approval shall not be unreasonably
withheld, conditioned or delayed) the cost estimate with respect to any such
third party review to the extent the same shall exceed $5,000.00, and (iii) the
cost of any such third party review shall be reasonably competitively priced;

               2.2.1.2 The payment of plan check, permit and license fees relating to
construction of the Tenant Improvements;

               2.2.1.3 The cost of (i) construction of the Tenant Improvements,
including, without limitation, demolition, testing and inspection costs, trash
removal costs, utility hook-up charges, hoist fees, parking fees, after-hours
utilities usage and contractors’ fees and general conditions and (ii) the Other
Items (subject to the limitations in Section 2.1 hereof);

               2.2.1.4 The cost of any changes in the Base Building on the floors of the
Buildings on which the Premises is located, when such changes are required by
the Construction Drawings (including if such changes are due to the fact that
such work is prepared on an unoccupied basis);

               2.2.1.5 Sales and use taxes and Title 24 fees with respect to the Tenant
Improvements;

               2.2.1.6 The cost of the design and construction of Tenant’s security
system (if any) installed in the Premises pursuant to Section 6.1.6 of this
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               2.2.1.7 The “Coordination Fee,” as that term is defined in Section
4.2.2.1, below; and

               2.2.1.8 The cost of reinforcing the floors of the Buildings, if necessary,
to accommodate the Tenant Improvements.

          2.2.2 Disbursement of Tenant Improvement Allowance. Prior to and during
the construction of the Tenant Improvements, as the case may be, subject to the
disbursement timing limitations set forth in Section 2.2.2.4 of this Tenant
Work Letter with respect to the portion of the tenant improvement allowance
relating to each Tranche, Landlord shall make monthly disbursements of the
Tenant Improvement Allowance for Tenant Improvement Allowance Items for the
benefit of Tenant and shall authorize the release of monies for the benefit of
Tenant as follows. Landlord acknowledges and agrees that Tenant may satisfy
all conditions precedent to the disbursement of the Tenant Improvement
Allowance with respect to each Tranche well in advance of the limitation dates
set forth in Section 2.2.2.4 of this Tenant Work Letter , and in such event,
those portions of the Tenant Improvement Allowance shall be paid to Tenant
within thirty (30) days following the dates set forth in Section 2.2.2.4 of
this Tenant Work Letter.

               2.2.2.1 Monthly Disbursements. On or before the first (1st) day of each
month (a “Submittal Date”) during the period from the date hereof through the
construction of the Tenant Improvements, Tenant shall deliver to Landlord: (i)
a request for payment of the “Contractor,” as that term is defined in Section
4.1 of this Tenant Work Letter (or reimbursement to Tenant if Tenant has
already paid the Contractor or other person or entity entitled to payment),
approved by Tenant, in a form to be to be mutually and reasonably agreed upon
by Landlord and Tenant, showing the schedule, by trade, of percentage of
completion of the Tenant Improvements in the Premises, detailing the portion of
the work completed and the work projected to be completed by the end of the
month; (ii) invoices from all of “Tenant’s Agents,” as that term is defined in
Section 4.1.2 of this Tenant Work Letter, for labor rendered and materials
delivered to the Premises (or stored therein or offsite or those items where
deposits are standard in the industry) for the applicable payment period; (iii)
executed conditional mechanic’s lien releases from all of Tenant’s Agents which
shall substantially comply with the appropriate provisions of California Civil
Code Section 3262(d), or unconditional releases (with respect to payments
previously made); provided, however, that with respect to fees and expenses of
the Architect, Engineers, or construction or project managers or other similar
consultants, and/or any other pre-construction items for which the payment
scheme set forth in items (i) through (iii), above of this Tenant Work Letter,
is not applicable (collectively, the “Non-Contribution Items”), Tenant shall
only be required to deliver to Landlord on or before the applicable Submittal
Date, a reasonably particularized invoice evidencing the cost for the
applicable Non-Contribution Items (unless Landlord has received a preliminary
notice in connection with such costs in which event conditional lien releases
must be submitted in connection with such costs); and (iv) all other
information reasonably requested in good faith by Landlord. Tenant’s request
for payment shall be deemed Tenant’s acceptance and approval of the work
furnished and/or the materials supplied as set forth in Tenant’s payment
request vis-à-vis Landlord. On or before the date occurring thirty (30) days
after the Submittal Date, and assuming Landlord receives all of the information
described in items (i) through (iv), above, subject to the limitations set
forth in Section 2.2.2.4, below, Landlord shall deliver a check to Tenant made
payable to Tenant or if Tenant elects, to the Contractor, subcontractor,
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of the lesser of: (A) the amounts so requested by Tenant, as set forth in
this Section 2.2.2.1, above and (B) the balance of any remaining available
portion of the Tenant Improvement Allowance. In the event that Landlord or
Tenant identifies any material non-compliance with the “Approved Working
Drawings,” as that term is defined in Section 3.4 below, or substandard work,
Landlord or Tenant as appropriate shall be provided a detailed statement
identifying such material non-compliance or substandard work by the party
claiming the same, and if the work creates a “Design Problem,” as that term is
defined in Section 8.1 of the Lease, Tenant shall cause such work to be
corrected so that no Design Problem exists. Landlord’s payment of such amounts
shall not be deemed Landlord’s approval or acceptance of the work furnished or
materials supplied as set forth in Tenant’s payment request. If Tenant
receives a check payable to anyone other than solely to Tenant for a monthly
disbursement pursuant to this Section 2.2.2.1, Tenant may return such check to
Landlord and receive a check made payable only to Tenant, if Tenant provides
the releases and evidence required above to receive a check payable solely to
Tenant.

               2.2.2.2 Final Payment. Subject to the provisions of this Tenant Work
Letter (including, without limitation Section 2.2.2.4, below), a check for the
Tranche 4 portion of the Tenant Improvement Allowance payable to Tenant shall
be delivered by Landlord to Tenant, provided that (i) Tenant delivers to
Landlord properly executed mechanics lien releases in compliance with both
California Civil Code Section 3262(d)(2) and either Section 3262(d)(3) or
Section 3262(d)(4), (ii) Landlord has reasonably determined that no Design
Problem exists, (iii) Architect delivers to Landlord a certificate, in a form
reasonably acceptable to Landlord, certifying that the construction of the
Tenant Improvements then being constructed by Tenant in the Premises has been
substantially completed, and (iv) Tenant delivers to Landlord a commercially
reasonable “Closing Package,” as that term is defined below. The “Closing
Package” shall consist of (a) an application and certificate for payment (AIA
from G702-1992 or equivalent) signed by the Architect, (b) a breakdown sheet
(AIA from 3703-1992 or equivalent), (c) original stamped building permit plans,
(d) copy of the building permit, (e) original stamped building permit
inspection card with all final sign-offs, (f) a reproducible copy (in a form as
reasonably approved by Landlord) of the “as built” drawings of the Tenant
Improvements, (g) air balance reports, (h) a one (1) year warranty letter from
the “Contractor,” as that term is defined in Section 4.1.1, below, from the
date of Substantial Completion and (i) manufacturers’ warranties and operating
instructions.

               2.2.2.3 Other Terms. Landlord shall only be obligated to make
disbursements from the Tenant Improvement Allowance to the extent costs are
incurred by Tenant for Tenant Improvement Allowance Items. All Tenant
Improvement Allowance Items for which the Tenant Improvement Allowance has been
made available shall, subject to the terms and provisions of this Lease, be
deemed Landlord’s property upon the expiration or sooner termination of this
Lease. To the extent that a dispute shall arise as to whether certain amounts
of the Tenant Improvement Allowance are due and/or payable to Tenant, any
amounts which are not the subject of such dispute, shall be disbursed by
Landlord, subject to the terms of this Tenant Work Letter.

               2.2.2.4 Limitations On Landlord’s Obligation to Disburse Tenant
Improvement Allowance. Notwithstanding anything contained in this Tenant Work
Letter to the contrary, Landlord shall have no obligation to disburse any
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Allowance applicable to each Tranche of the Premises until the date which
is three (3) months prior to the Tranche Rent Commencement Date applicable to
the subject Tranche (and any such disbursement shall be subject to the terms of
this Tenant Work Letter), provided that the Supplemental TI Allowance due for
any particular Tranche, if any, shall (subject to the terms of this Tenant Work
Letter) be disbursed at any time following Tenant’s payment of the Early Rent
applicable to the subject Tranche. Notwithstanding anything in this Tenant
Work Letter (including, without limitation this Section 2.2.2.4), in no event
shall Landlord have any obligation to disburse any portion of the Tenant
Improvement Allowance applicable to Tranche 4 prior to the date which is the
later to occur of (i) the expiration of all statutory lien periods with respect
to the Tenant Improvements, and (ii) the date Tenant pays the first installment
of Base Rent applicable to Tranche 4.

               2.2.2.5 Common Area Allowance. Except as otherwise set forth in this
Tenant Work Letter to the contrary, the Common Area Allowance shall be
disbursed in the same manner as, and upon all of the terms applicable to, the
Tenant Improvement Allowance as set forth herein, provided that the Common Area
Allowance shall not be subject to the timing limitations set forth in Section
2.2.2.4, above.

               2.2.2.6 Fence Allowance. Landlord and Tenant hereby acknowledge and agree
that (i) $300,000.00 (the “Fence Allowance”) of the Common Area Allowance has
been allocated by the parties to the Fence, and (ii) in the event that fifty
percent (50%) of the cost of the Fence shall be less than the Fence Allowance,
then 25% of such unused Fence Allowance shall revert to Landlord (and Tenant
shall have no further rights with respect thereto), and the remaining 75% of
such unused Fence Allowance may be utilized by Tenant in accordance with the
terms of this Tenant Work Letter for other Common Area Improvements.

ARTICLE 3

CONSTRUCTION DRAWINGS

     3.1 Selection of Architect/Construction Drawings. Tenant shall retain a
space planner approved by Landlord, which approval shall not be unreasonably
withheld, conditioned or delayed (the “Architect”), to prepare the
“Construction Drawings,” as that term is defined, below. Landlord hereby
approves HLW International, LLP as the Architect. Tenant shall retain
engineering consultants reasonably approved by Landlord (the “Engineers”) to
prepare all plans and engineering working drawings relating to the structural,
mechanical, electrical, plumbing, HVAC, lifesafety, and sprinkler work in the
Premises. The following Engineers, if selected by Tenant, are hereby
pre-approved by Landlord: Syska & Hennessey Associates, Inc.
(mechanical/electrical/plumbing); Saiful Bouquit (structural). The plans and
drawings to be prepared by Architect and the Engineers hereunder shall be known
collectively as the “Construction Drawings.” All Construction Drawings shall
be consistent with the Base Building, Building Structure and Building Systems
and shall be in a drawing format reasonably acceptable to Landlord. Landlord’s
review of the Construction Drawings as set forth in this Section 3 shall be for
its sole purpose and shall not imply Landlord’s review of the same, or obligate
Landlord to review the same, for quality, design, code compliance or other like
matters. Accordingly, notwithstanding that any Construction Drawings are
reviewed by Landlord or its space planner, architect, engineers and
consultants, and notwithstanding any advice or assistance which may be rendered
to Tenant by Landlord or Landlord’s space planner, architect, engineers,

	 	 	 
	 	 	
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and consultants, Landlord shall have no liability whatsoever in connection
therewith, except to the extent that Landlord has specifically requested a
modification to the Construction Drawings as a condition to Landlord’s approval
of the Construction Drawings, and shall not be responsible for any omissions or
errors contained in the Construction Drawings, and Tenant’s waiver and
indemnity set forth in Section 10.1 of this Lease shall specifically apply to
the Construction Drawings. Furthermore, Tenant and Architect shall verify, in
the field, the dimensions and conditions as shown on the relevant portions of
the base building drawings, and Tenant and Architect shall be solely
responsible for the same, and Landlord shall have no responsibility in
connection therewith, except to the extent that verification cannot be
accomplished by visual inspection made with reasonable diligence (which visual
inspection shall not include the penetration of a wall, ceiling or floor), in
which case Landlord shall be responsible for any increased reasonable design
and construction cost as well as construction delays (subject to the terms of
Section 5 of this Tenant Work Letter) incurred by Tenant as a result of such
condition. Each time Landlord is granted the right to review, consent or
approve the Construction Drawings (collectively, “Consent”), such Consent shall
be granted unless a Design Problem exists; provided, however, that Landlord
shall, in all cases involving a Design Problem, not unreasonably withhold such
consent.

     3.2 Final Space Plan. Tenant and the Architect shall have the right, but
not the obligation, to prepare a final space plan for the Tenant Improvements
(the “Final Space Plan”). In the event that Tenant shall prepare a Final Space
Plan, Tenant shall deliver the Final Space Plan to Landlord for Landlord’s
approval; provided, however, Landlord agrees that Tenant may submit the Final
Space Plan and any other Construction Drawings on a piece-by-piece basis and in
the event of any such partial submittals, Article 3 shall apply to such partial
submittals as if Tenant had submitted the Final Space Plan and/or Construction
Drawings for the entire Building Premises. The Final Space Plan shall show all
corridors, internal and external offices and partitions, paths of travel, and
exiting. Landlord shall, within five (5) business days after Landlord’s
receipt of the Final Space Plan (i) approve the Final Space Plan, (ii) approve
the Final Space Plan subject to specified conditions (which shall be limited to
conditions required to eliminate a Design Problem and must be stated in a
reasonably clear manner) to be complied with (which shall be limited to
conditions required to eliminate a Design Problem) when the Final Working
Drawings are submitted by Tenant to Landlord, or (iii) disapprove the Final
Space Plan for a Design Problem and return the same to Tenant with requested
revisions; provided, however, that Landlord shall only disapprove the Final
Space Plan if the Tenant Improvements as shown on the Final Space Plan has a
Design Problem. If Landlord disapproves the Final Space Plan, Tenant may
resubmit the Final Space Plan to Landlord at any time, and Landlord shall
approve or disapprove of the resubmitted Final Space Plan, based upon the
criteria set forth in this Section 3.2, within three (3) business days after
Landlord receives such resubmitted Final Space Plan. Such procedures shall be
repeated until the Final Space Plan is approved. Landlord’s failure to timely
respond to Tenant within any applicable response period referenced herein shall
be deemed Landlord’s approval of the Final Space Plan.

     3.3 Completion of Construction Drawings. Tenant, the Architect and the
Engineers shall complete the Construction Drawings for the Premises in a form
which is sufficient to obtain applicable permits and shall submit the
Construction Drawings to Landlord for Landlord’s approval. The Construction
Drawings may be submitted in one or more stages at one or more times, provided
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by Tenant of such Construction Drawings for the Tenant Improvements.
Landlord shall, within ten (10) days after Landlord’s receipt of all of the
Construction Drawings, either (i) approve the Construction Drawings, (ii)
approve the Construction Drawings subject to specified conditions which must be
stated in a reasonably clear and complete manner to be satisfied by Tenant
prior to obtaining permits as set forth in Section 3.4, below of this Tenant
Work Letter, to the extent the Construction Drawings contain a Design Problem,
or (iii) disapprove and return the Construction Drawings to Tenant with
requested revisions to the extent the Construction Drawings contain a Design
Problem. If Landlord disapproves the Construction Drawings, Tenant may
resubmit the Construction Drawings to Landlord at any time, and Landlord shall
approve or disapprove the resubmitted Construction Drawings, based upon the
criteria set forth in this Section 3.3, within two (2) business days after
Landlord receives such resubmitted Construction Drawings. Such procedure shall
be repeated until the Construction Drawings are approved. Landlord’s failure
to timely respond to Tenant within any applicable response period referenced
herein shall be deemed Landlord’s approval of the Construction Drawings.

     3.4
Approved Construction Drawings. The Construction Drawings shall be
approved by Landlord (the “Approved Construction Drawings”) prior to the
commencement of construction of the Premises by Tenant in one or more stages.
In the event that Tenant shall submit the Construction Drawings to Landlord in
more than one stage, Landlord shall be entitled to approve a stage and to
subsequently disapprove of such stage, provided that a Design Problem is found
to exist which is evident only following Landlord’s review of subsequent
drawings and was not reasonably ascertainable prior to that time. Tenant shall
cause to be obtained all applicable building permits required in connection
with the construction of the Tenant Improvements (“Permits”); provided,
however, that Tenant shall be entitled to pull permits for construction on a
piece-by-piece basis. Tenant hereby agrees that neither Landlord nor
Landlord’s consultants shall be responsible for obtaining any Permits or
certificate of occupancy for the Premises and that obtaining the same shall be
Tenant’s responsibility; provided, however, that Landlord shall cooperate with
Tenant in performing ministerial acts reasonably necessary to enable Tenant to
obtain any such Permits or certificate of occupancy.

     3.5
Change Orders. In the event Tenant desires to materially change the
Approved Construction Drawings and such change could cause a Design Problem,
Tenant shall deliver notice (the “Drawing Change Notice”) of the same to
Landlord, setting forth in detail the changes (the “Tenant Change”) Tenant
desires to make to the Approved Construction Drawings. Landlord shall, within
three (3) business days of receipt of a Drawing Change Notice related to a
Tenant Change affecting the Base Building, and within two (2) business days of
receipt of the Drawing Change Notice related to a Tenant Change which does not
affect the Base Building, either (i) approve the Tenant Change, or (ii)
disapprove the Tenant Change and deliver a notice to Tenant specifying in
reasonably sufficient detail the reasons for Landlord’s disapproval; provided,
however, that Landlord may only disapprove of the Tenant Change if the Tenant
Change contains a Design Problem. Any additional costs which arise in
connection with such Tenant Change shall be paid by Tenant; provided, however,
that to the extent the Tenant Improvement Allowance has not been disbursed,
such payment shall be made out of the Tenant Improvement Allowance subject to
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ARTICLE 4

CONSTRUCTION OF THE TENANT IMPROVEMENTS

     4.1 Tenant’s Selection of Contractors.

          4.1.1 The Contractor. Tenant shall select and retain a licensed general
contractor (the “Contractor”) reasonably approved by Landlord. Landlord hereby
pre-approves Matt Construction and, subject to the conditions previously
communicated to Techtonics Construction (“Techtonics”), Techtonics, as the
Contractor if either of such entities are selected by Tenant.

          4.1.2 Tenant’s Agents. Tenant shall cause the construction of the Tenant
Improvements. All subcontractors used by Tenant (such subcontractors, as well
as engineers, project manager, broker, architect, Tenant’s employees engaged in
the review of the design and construction of the Tenant Improvements, laborers,
materialmen, and suppliers, and the Contractor shall hereafter be known
collectively as “Tenant’s Agents”) must, to the extent any such Tenant’s Agents
are working on-site at the Project, be approved in writing by Landlord, which
approval shall not be unreasonably withheld, conditioned or delayed and shall
be granted or denied within three (3) business days of Tenant’s Notice to
Landlord requesting Landlord’s approval of the same. Sares-Regis or Lowe
Enterprises, if selected by Tenant, is hereby approved as Tenant’s project
manager. The Contractor and the Contractor’s subcontractors (collectively
“Tenant’s Contractors”) and their respective workers shall conduct their
activities in and around the Premises, Buildings and Project in a harmonious
relationship with all other subcontractors, laborers, materialmen and suppliers
at the Premises, Buildings and Project. Tenant shall be required to cause all
work which may be completed by the carpenters’ union (e.g., drywall, acoustic
ceiling, millwork) to be completed by union labor. Subject to the foregoing
requirements, Tenant shall not be required to employ union labor.

     4.2 Construction of Tenant Improvements by Tenant’s Agents.

          4.2.1 Construction Contract. Prior to Tenant’s execution of the
construction contract and general conditions with Contractor (the “Contract”),
Tenant shall submit the Contract to Landlord for its records.

          4.2.2 Tenant’s Agents.

               4.2.2.1 Landlord’s General Conditions for Tenant’s Agents and Tenant
Improvement Work. Tenant’s and Tenant’s Agent’s construction of the Tenant
Improvements shall comply with the following (i) the Tenant Improvements shall
be constructed in material conformance with the Approved Construction Drawings,
subject to Tenant’s right to make changes to the same in accordance with, and
subject to, this Tenant Work Letter; (ii) Tenant and Tenant’s Agents shall use
commercially reasonable efforts (in accordance with industry custom and
practice) not to interfere with, obstruct, or delay, any other work in the
Project and Landlord’s contractors and subcontractors shall use commercially
reasonable efforts (in accordance with industry custom and practice) not to
interfere with, obstruct or delay the work of Tenant’s Agents with respect to
the Tenant Improvements; and (iii) Tenant shall abide by all reasonable rules
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this Tenant Work Letter, including, without limitation, the construction of the
Tenant Improvements; provided that such rules and regulations are consistent
with the practices of landlords of Comparable Buildings. Tenant shall pay
logistical coordinate fee to Landlord (the “Coordination Fee”) in amount equal
to $50,000.00 for services relating to the coordination of construction of the
Tenant Improvements.

               4.2.2.1 [Intentionally Omitted]

               4.2.2.3 Indemnity. Tenant’s indemnity of Landlord and Landlord’s
indemnity of Tenant as set forth, qualified and conditioned in Section 10.1 of
this Lease shall also apply with respect to any and all costs, losses, damages,
injuries and liabilities related in any way to any act or omission of Tenant or
Tenant’s Agents or any act or omission of Landlord and Landlord’s agents, or
anyone directly or indirectly employed by any of them, or in connection with
Tenant’s or Landlord’s (as the case may be) non-payment of any amount required
to be paid by such party hereunder and/or Tenant’s or Landlord’s disapproval of
all or any portion of any request for payment.

               4.2.2.4 Requirements of Tenant’s Contractors. Each of Tenant’s
Contractors shall guarantee or warrant to Tenant and for the benefit of
Landlord that the portion of the Tenant Improvements for which it is
responsible shall be free from any defects in workmanship and materials for a
period of not less than one (1) year from the date of Substantial Completion of
the Tenant Improvements. Each of such Tenant’s Contractors performing actual
construction work shall be responsible for the replacement or repair, without
additional charge, of all work done or furnished in accordance with its
contract that shall become defective within one (1) year after the Substantial
Completion of the work performed by such Contractor or subcontractors. The
correction of such work shall include, without additional charge, all
additional expenses and damages incurred in connection with such removal or
replacement of all or any part of the Tenant Improvements, and/or the Buildings
and/or Common Areas of the Buildings that may be damaged or disturbed thereby.
All such warranties or guarantees as to materials or workmanship of or with
respect to the Tenant Improvements shall be contained in the Contract or
subcontract and shall be written such that such guarantees or warranties shall
inure to the benefit of both Landlord and Tenant, as their respective interests
may appear, and can be directly enforced by either; provided that Landlord
shall only enforce such guarantee or warranty if Tenant fails to do so in a
reasonable time following notice thereof from Landlord.
Tenant covenants to use commercially reasonable efforts to give to
Landlord any assignment or other assurances which may be reasonably necessary
to effect such right of direct enforcement.

               4.2.2.5 Insurance Requirements.

                           4.2.2.5.1 General Coverages. All of Tenant’s Agents shall carry worker’s
compensation insurance covering all of their respective employees, and shall
also carry public liability insurance, including property damage, all with
limits, in form and with companies as are required to be carried by Tenant as
set forth in Article 10 of this Lease (provided that the limits of liability to
be carried by Tenant’s Agents and Contractor, shall be in an amount and with
companies which are customary for such respective Tenant’s Agents employed by
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vicinity of the Buildings), and the policies therefor shall insure Landlord and
Tenant, as their interests may appear, as well as the Contractor and
subcontractors.

                           4.2.2.5.2
Special Coverages. Tenant or Contractor shall carry “Builder’s
All Risk” insurance, in an amount not more than the amount of the Contract,
covering the construction of the Tenant Improvements, and such other insurance
as Landlord may reasonably require, it being understood and agreed that the
Tenant Improvements shall be insured by Tenant pursuant to Article 10 of this
Lease immediately upon completion thereof. Such insurance shall be in amounts
and shall include such extended coverage endorsements as may be reasonably
required by Landlord, and are generally required by landlords of Comparable
Buildings.

                           4.2.2.5.3 General Terms. Certificates for all insurance carried pursuant
to this Section 4.2.2.5 shall be delivered to Landlord before the commencement
of construction of the Tenant Improvements (or applicable portion thereof) and
before the Contractor’s equipment is moved onto the Project. All such policies
of insurance must contain a provision that the company writing said policy will
give Landlord thirty (30) days prior notice of any cancellation or lapse of the
effective date or any reduction in the amounts of such insurance. In the event
that the Tenant Improvements are damaged by any cause during the course of the
construction thereof, Tenant shall immediately repair the same at Tenant’s sole
cost and expense. Tenant’s Agents shall maintain all of the foregoing
insurance coverage in force until the Substantial Completion of the Tenant
Improvements, except for any “Products” and “Completed Operation Coverage”
insurance required by Landlord, which is to be maintained for the term of the
policy period following Substantial Completion of the Tenant Improvements. All
such insurance relating to property, except Workers’ Compensation, maintained
by Tenant’s Agents shall preclude subrogation claims by the insurer against
anyone insured thereunder. Such insurance shall provide that it is primary
insurance as respects Landlord and that any other insurance maintained by
Landlord is excess and noncontributing with the insurance required hereunder.
The requirements for the foregoing insurance shall not derogate from the
provisions for indemnification of Landlord by Tenant under Section 4.2.2.3 of
this Tenant Work Letter and Tenant’s rights with respect to the waiver of
subrogation.

          4.2.3 Governmental Compliance. The Tenant Improvements shall comply in
all respects with the following: (i) applicable building codes and other
state, federal, city or quasi-governmental laws, codes, ordinances and
regulations, as each may apply according to the
rulings of the controlling public official, agent or other person; (ii)
applicable standards of the American Insurance Association (formerly, the
National Board of Fire Underwriters) and the National Electrical Code; and
(iii) building material manufacturer’s specifications, but none of the
foregoing requirements shall restrict or limit Landlord’s obligation to deliver
the Base Building to Tenant pursuant to Section 1 of this Tenant Work Letter.

          4.2.4 Inspection by Landlord. Landlord shall have the right to inspect
the Tenant Improvements at all reasonable times; provided, however, that
Landlord’s failure to inspect the Tenant Improvements shall in no event
constitute a waiver of any of Landlord’s rights hereunder nor shall Landlord’s
inspection of the Tenant Improvements constitute Landlord’s approval of the
same. In the event that Landlord should discover a Design Problem during an
inspection, Landlord shall, as soon as reasonably possible, notify Tenant in
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inspection of such disapproval and shall specify in reasonably
sufficient detail the items disapproved. Any material defects or deviations
in, and/or disapprovals in accordance herewith (because of the existence of a
Design Problem) by Landlord of, the Tenant Improvements shall be rectified by
Tenant at Tenant’s expense and at no additional expense to Landlord, provided
however, that in the event Landlord determines that a material defect or
deviation exists or reasonably disapproves of any matter in connection with any
portion of the Tenant Improvements because of a Design Problem, Landlord may,
following notice to Tenant and a reasonable period of time for Tenant to cure
(which period shall in no event be less than ten (10) business days), take such
action as Landlord deems reasonably necessary to correct the Design Problem, at
Tenant’s expense, and at no additional expense to Landlord, and without
incurring any liability on Landlord’s part, to correct any such Design Problem,
including, without limitation, causing the cessation of performance of the
construction of the Tenant Improvements until such time as the Design Problem
is corrected to Landlord’s reasonable satisfaction.

          4.2.5 Meetings.
Commencing upon the execution of this Lease, Tenant shall
hold regular meetings at a reasonable time, with the Architect and the
Contractor regarding the progress of the preparation of Construction Drawings
and the construction of the Tenant Improvements, which meetings shall be held
at the Project or another location in West Los Angeles or Santa Monica
(including Tenant’s current location in Bel-Air), and, for at least one (1)
meeting a month, Landlord and/or its agents shall receive prior notice of, and
shall have the right to attend, a meeting to review the Tenant Improvement
Allowance draw package and the Tenant Improvement design and/or construction
status, and, upon Landlord’s request, certain of Tenant’s Agents shall attend
such meetings. Upon request by Landlord, Tenant shall supply Landlord with the
date, time and location of any particular meeting relating to the construction
of the Tenant Improvements and Landlord shall have the right to attend such
meetings.

     4.3 Notice of Completion; Copy of Updated Approved Construction Drawings.
Within ten (10) days after completion of construction of the Tenant
Improvements, Tenant shall prepare a Notice of Completion, which Landlord shall
promptly execute if factually correct, and Tenant shall cause such Notice of
Completion to be recorded in the office of the Recorder of the County of Los
Angeles in accordance with Section 3093 of the Civil Code of the State of
California or any successor statute, and shall furnish a copy thereof to
Landlord upon such recordation. In the event Tenant fails to so record the
Notice of Completion as required pursuant to this Section 4.3, then such
failure shall not, in and of itself, constitute a default hereunder but Tenant
shall indemnify, defend, protect and hold harmless Landlord and the Landlord
Parties
from any and all loss, cost, damage, expense and liability (including,
without limitation, court costs and reasonable attorneys’ fees) in connection
with such failure by Tenant to so record the Notice of Completion as required
hereunder. If Tenant fails to do so, Landlord may execute and file the same on
behalf of Tenant as Tenant’s agent for such purpose, at Tenant’s sole cost and
expense. At the conclusion of construction, (i) Tenant shall cause the
Contractor (A) to update the Approved Construction Drawings as to the
mechanical drawing portion thereof, and to provide field-grade mark-ups of the
remaining portion of the Approved Construction Drawings, in all cases only as
necessary to reflect all changes made to the Approved Construction Drawings
during the course of construction, (B) to certify to the actual knowledge of
Contractor that such updated Approved Construction Drawings are true and
correct, which certification shall survive the expiration or termination of
this Lease, and (C) to deliver to Landlord two (2) sets of sepias or electronic
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permits or similar documents issued by governmental agencies in connection with
the construction of the Tenant Improvements, within ninety (90) days following
issuance of a certificate of occupancy for the Premises, and (ii) Tenant shall
deliver to Landlord a copy of all warranties, guaranties, and operating manuals
and information relating to the improvements, equipment, and systems in the
Premises in Tenant’s possession.

ARTICLE 5

DELAY OF LEASE COMMENCEMENT DATE

     5.1
Lease Commencement Date Delays. The Lease Commencement Date shall
occur as provided in Section 2.1.1 of this Lease and each Tranche Rent
Commencement Date shall occur as set forth in Section 2.1.1 of the Lease,
provided that the Lease Commencement Date and any Tranche Rent Commencement
Date shall be extended by the number of days of delay of the Substantial
Completion of the Tenant Improvements in the subject Tranche and/or Tenant’s
move into the subject Tranche when desired by Tenant to the extent caused by a
“Commencement Date Delay,” as that term is defined below. As used herein, the
term “Commencement Date Delay” shall mean only a “Force Majeure Delay” or a
“Landlord Caused Delay,” as those terms are defined below in this Section 5.1
of this Tenant Work Letter. As used herein, the term “Force Majeure Delay”
shall mean only an actual delay resulting from fire, wind, damage or
destruction to the Buildings, explosion, casualty, flood, hurricane, tornado,
the elements, acts of God or the public enemy, strikes, sabotage, war,
invasion, insurrection, rebellion, civil unrest, riots, or earthquakes, failure
of utilities, inability to secure labor or materials or reasonable
substitutions therefor or inability to secure permits and governmental
inspections beyond the time period that would normally be required to secure
such permits and inspections on an objective basis by any other person or
entity constructing improvements comparable to the Tenant Improvements. As
used in this Tenant Work Letter, “Landlord Caused Delay” shall mean actual
delays to the extent resulting from the acts or omissions of Landlord Parties,
including without limitation, the (i) except to the extent Landlord’s approval
under this Tenant Work Letter is deemed granted pursuant to the terms of this
Tenant Work Letter, failure of Landlord to timely approve or disapprove any
Construction Drawings or Change Orders or any other items within time periods
set forth in this Tenant Work Letter or this Lease, as applicable, or otherwise
within a reasonable period of time; (ii) material and unreasonable interference
by Landlord, its agents or Landlord Parties (except as otherwise allowed under
this Tenant Work Letter) with the Substantial Completion of the Tenant
Improvements and which objectively
preclude or delay the construction of general office use tenant
improvements in the Buildings or any portion thereof, which interference
relates to access by Tenant, or Tenant’s Agents to the Buildings or any
Building’s facilities (including loading docks and freight elevators) or
service and utilities (including temporary power and parking areas as provided
herein) during normal construction hours, or the use thereof during normal
construction hours, (iii) any delay in the funding of the Tenant Improvement
Allowance by Landlord, (iv) a material breach by Landlord of a provision of
this Tenant Work Letter or as specifically provided in Section 6.8 or 6.11 of
this Tenant Work Letter (v) Landlord’s failure to maintain a temporary or
permanent certificate of occupancy for the Building by the date of execution of
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     5.2 Determination of Lease Commencement Date Delay. If Tenant contends
that a Landlord Caused Delay has occurred, Tenant shall notify Landlord in
writing of the event which constitutes such Landlord Caused Delay. If such
actions, inaction or circumstance described in the notice (the “Delay Notice”)
are not cured by Landlord within one (1) business day of Landlord’s receipt of
the Delay Notice and if such action, inaction or circumstance otherwise
qualify as a Landlord Caused Delay, then a Landlord Caused Delay shall be
deemed to have occurred commencing as of the date of Landlord’s receipt of the
Delay Notice and ending as of the date such delay ends.

     5.3 Definition of Substantial Completion of the Tenant Improvements. For
purposes of this Section 5, “Substantial Completion” of the Tenant Improvements
shall mean the issuance of a temporary certificate of occupancy for the subject
space and completion of construction of the Tenant Improvements in the subject
space pursuant to the Approved Construction Drawings, including any furniture,
fixtures, work stations, built-in furniture or equipment necessary to obtain a
temporary certificate of occupancy, with the exception of any punch list items,
any furniture, fixtures, work stations, built-in furniture or equipment not
required to obtain a temporary certificate of occupancy (even if the same
requires installation or electrification by Tenant’s Agents) and any tenant
improvement finish items and materials which are selected by Tenant but which
are not available within a reasonable time (given the Lease Commencement Date).

ARTICLE 6

MISCELLANEOUS

     6.1 Tenant’s Representative. Tenant has designated Mr. Randy Gustafson as
its sole representative with respect to the matters set forth in this Tenant
Work Letter, who, until further notice to Landlord, shall have full authority
and responsibility to act on behalf of the Tenant as required in this Tenant
Work Letter.

     6.2 Landlord’s Representative. Landlord has designated Mr. Jonathan Hartz
as its sole representative with respect to the matters set forth in this Tenant
Work Letter, who, until further notice to Tenant, shall have full authority and
responsibility to act on behalf of the Landlord as required in this Tenant Work
Letter.

     6.3 Time of the Essence in This Tenant Work Letter. Unless otherwise
indicated, all references in this Tenant Work Letter to a “number of days”
shall mean and refer to calendar days. If any item requiring approval
is timely disapproved by Landlord, the procedure for preparation of the
document and approval thereof shall be repeated until the document is approved
by Landlord.

     6.4 Tenant’s Lease Default. Notwithstanding any terms and conditions to
the contrary contained in this Lease, if a Default as described in Article 19
of this Lease or a material default by Tenant under this Tenant Work Letter
beyond the applicable notice and cure period set forth in Article 19 of the
Lease has occurred at any time on or before the Substantial Completion of the
Tenant Improvements, then (i) in addition to all other rights and remedies
granted to Landlord pursuant to the Lease, Landlord shall have the right to
withhold disbursement of all or any portion of the Tenant Improvement Allowance
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cease the construction of the Tenant
Improvements (in which case, Tenant shall be responsible for any delay in the
Substantial Completion of the Tenant Improvements caused by such work
stoppage), and (ii) all other obligations of Landlord under the terms and
conditions of this Tenant Work Letter shall be suspended until such time as
such Default is cured pursuant to the terms and conditions of the Lease (in
which case, Tenant shall be responsible for any delay in the Substantial
Completion of the Tenant Improvements caused by such inaction by Landlord),
provided, however, that notwithstanding any other provisions of this Lease, if
a Default by Tenant is cured, forgiven or waived, Landlord’s suspended
obligations shall be fully reinstated and resumed, effective immediately.

     6.5 Bonding. Notwithstanding anything to the contrary set forth in this
Lease, Tenant shall not be required to obtain or provide any completion or
performance bond in connection with any Tenant Improvement work performed by or
on behalf of Tenant.

     6.6 No Miscellaneous Charges. Neither Tenant nor Tenant’s Agents shall be
charged for the use of parking, electricity, water, security, toilet
facilities, HVAC (during Building Hours, except Holidays), loading docks and/or
the freight elevator during the construction of the Tenant Improvements and
Tenant’s move into the Premises prior to the Lease Commencement Date. Subject
to terms of this Tenant Work Letter, the foregoing items (including reasonable
parking accommodations (with key cards)) shall be made reasonably available to
the Contractor, Architect, consultants and the subcontractors during the
construction period. In addition, the HVAC systems for the Premises shall be
run when Tenant is moving into the Premises.

     6.7 Clean-Up Expenses. Landlord shall clean the Premises prior to
Tenant’s move into the Premises, including the washing of all exterior windows.
The costs of any cleaning to be provided by Landlord pursuant to this Section
6.7 shall not be included in Operating Expenses for the Building.

     6.8 Codes. In the event that the Base Building does not comply with Code
as required by, and subject to, the terms of Section 1 of this Tenant Work
Letter, and therefore Tenant incurs increased design or construction costs that
it would not have incurred but for such non-compliance with Code, then such
costs shall be reimbursed by Landlord to Tenant within ten (10) business days
after receipt by Landlord from Tenant of a reasonably particularized invoice
documenting and evidencing such increased costs and any delays encountered by
Tenant in the design or construction of the Tenant Improvements as a result of
such non-compliance shall be
subject to Section 5.1 above of this Tenant Work Letter in order to
determine if such delay is a Landlord Caused Delay.

     6.9 Move-In Priority. Provided that Tenant has provided Landlord with at
least two (2) weeks’ prior written notice of Tenant’s move into the Buildings,
Tenant shall have the exclusive right to use the passenger and freight
elevators during the weekend that it moves into the Buildings, but only to the
extent such exclusive use is necessary for Tenant to complete its move into the
Buildings over one (1) weekend in an orderly and efficient manner.

     6.10 Staging Area. During the period prior to the Lease Commencement
Date, Tenant shall have the right, without the obligation to pay Rent, to use
empty space in the Project’s parking facilities for the purposes of storing and
staging its furniture and equipment only. With

	 	 	 
	 	 	
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respect to this free storage
space (if any), Tenant shall be responsible for providing all insurance and for
providing any necessary fencing or other protective facilities. Tenant shall
hold Landlord harmless and shall indemnify Landlord from and against any and
all loss, liability or cost arising out of or in connection with use of such
storage space by Tenant.

     6.11 Hazardous Materials Costs. Subject to the terms of Section 29.25.6
of the Lease, Landlord agrees to bear any increased costs in the design or
construction of the Tenant Improvements directly resulting from any Hazardous
Materials in the Project (provided such Hazardous Materials are not introduced
by Tenant) and shall reimburse to Tenant, any additional, actual, documented
and reasonable hard costs incurred by Tenant as a result of the presence of
Hazardous Materials in the Project (provided such Hazardous Materials are not
introduced by Tenant) prior to the date Tenant constructs the Tenant
Improvements and any delays encountered by Tenant in the design or Substantial
Completion of the Tenant Improvements as a result of the presence of such
Hazardous Materials shall be subject to Section 5.1 above in this Tenant Work
Letter in order to determine if any such delays constitute a Landlord Caused
Delay.

     6.12 Miscellaneous. Landlord shall provide Tenant with adequate space at
the Project at a mutually agreeable location for the placement of a
commercially reasonable sized construction trailer.

	 	 	 
	 	 	
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EXHIBIT E

FORM OF TENANT’S ESTOPPEL
CERTIFICATE

     The undersigned as Tenant under that certain Office Lease (the “Lease”)
made and entered into as of           , 2003 by and between
           as Landlord, and the undersigned as Tenant, for
Premises on the
           floor(s) of the office building located at
          , Los Angeles, California           , certifies as
follows:

     1.     Attached hereto as Exhibit A is a true and correct copy of the Lease
and all amendments and modifications thereto. The documents contained in
Exhibit A represent the entire agreement between the parties as to the
Premises.

     2.     The undersigned currently occupies the Premises described in the Lease.

     3.     The Lease Term commenced on      , and the Lease Term expires on
     .

     4.     Base Rent became payable on           .

     5.     The Lease is in full force and effect and has not been modified,
supplemented or amended in any way except as provided in Exhibit A.

     6.     Tenant has not transferred, assigned, or sublet any portion of the
Premises nor entered into any license or concession agreements with respect
thereto except as follows:

     7.     All monthly installments of Base Rent, all Additional Rent and all
monthly installments of estimated Additional Rent have been paid when due
through           . The current monthly installment of Base Rent is
$          .

     8.     To Tenant’s actual knowledge, all conditions of the Lease to be
performed by Landlord necessary to the enforceability of the Lease have been
satisfied and Landlord is not in default thereunder.

     9.     No rental has been paid more than thirty (30) days in advance and no
security has been deposited with Landlord except as provided in the Lease.

     10.     To Tenant’s actual knowledge, as of the date hereof, there are no
existing defenses or offsets that the undersigned has against Landlord nor have
any events occurred that with the

	 	 	 
	 	 	
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passage of time or the giving of notice, or both, would constitute a
default on the part of Landlord under the Lease.

     11.     The undersigned acknowledges that this Estoppel Certificate may be
delivered to Landlord or to a prospective mortgagee, or a prospective
purchaser, and acknowledges that said prospective mortgagee or prospective
purchaser will be relying upon the statements contained herein in making the
loan or acquiring the property of which the Premises are a part and that
receipt by it of this certificate is a condition of making of such loan or
acquisition of such property.

     12.     Tenant hereby represents and warrants that Tenant is a duly formed and
existing entity qualified to do business in California and that Tenant has full
right and authority to execute and deliver this Estoppel Certificate.

     Executed
at
               on
the       day of
          ,
20     .

	 	 	 	 	 
	 	“Tenant”:	 	,
	 	 	 	
	 
	 	a 	 	 
	 	 	
	 

	 	 	 	 	 
	 	By:	 	 
	 	 	
	 
	 	 	Its:	 	 
	 	 	 	
	 
	 
	 	By:	 	 
	 	 	
	 
	 	 	Its:	 	 
	 	 	 	
	 

	 	 	 
	 	 	
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EXHIBIT F

PRE-APPROVED SIGNAGE
LOCATIONS

	 	 	 
	 	 	
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	 	EXHIBIT F	
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EXHIBIT G

FORM OF TELECOMMUNICATION AGREEMENT

     This Telecommunication Agreement (this “Agreement”) is entered into as
          of
          by and between Playa Vista – Water’s Edge, LLC, a Delaware
limited liability company (“Landlord”), and Electronic Arts Inc., a Delaware
corporation (“Tenant”).

R E C I T A L S :

     This Agreement is made with regard to the following facts:

     A.     Landlord and Tenant entered into that certain Office Lease dated
          (the
“Lease”), under which Tenant leases approximately
     
rentable square feet of office space commonly known as Suite
          (the
“Premises”) in that certain office building located at
     , California (the “Building”).

     B.     In connection with the Lease, Tenant desires to use an additional area
located on the roof area of the Building for the purpose of constructing,
installing, operating, repairing, replacing (subject to Section 3 of this
Agreement) and maintaining a [INSERT APPROPRIATE EQUIPMENT] microwave, radio,
satellite and other telecommunications equipment as set forth on Schedule 1,
attached hereto (individually, a “Transmission Device”, and collectively, the
“Transmission Devices”), and an additional area within the Building’s riser
system for the telecommunications conduits, devices, fiber optics and
electrical, coaxial, and other connections (collectively, the “Connections”)
necessary to connect the Transmission Devices to the Premises. The
Transmission Devices and Connections are sometimes referred to in this
Agreement collectively as the “Telecommunication
Devices”. Landlord has agreed
to permit Tenant to use those areas and to construct, install, operate, repair,
replace, and maintain the Telecommunication Devices at Tenant’s sole cost and
expense.

A G R E E M E N T :

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree
as follows:

     1.     License of Transmission Devices Area.

          1.1 Designation Notice; Transmission Devices Area. Within thirty (30)
days after prior notice from Tenant to Landlord (the “Designation Notice”),
Landlord and Tenant shall mutually agree on areas on the roof of the Building
(the “Roof Location”) that Tenant may use for the purpose of constructing,
installing,
operating, repairing, replacing (subject to Section 3 of this Agreement)
and maintaining the Transmission Devices (collectively, the “Transmission
Devices Area”). For purposes of this Agreement, the Building riser system

	 	 	 
	 	 	
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as
used by Tenant for the Connections shall also be referred to as a part of the
Transmission Devices Area.

          1.2 Notice of Exercise. Tenant may exercise its right to use that
Transmission Devices Area by written notice delivered to Landlord (the “Notice
of Exercise”) at any time after the delivery of the Designation Notice. The
terms of this Agreement shall be effective upon the date of this Agreement and
shall continue in effect until the expiration or earlier termination of this
Agreement as set forth in Section 1.3, below, or the failure of Tenant to
timely deliver a Notice of Exercise.

          1.3 License to use the Transmission Devices Area; Exclusive Use. Five (5)
business days following the delivery of the Notice of Exercise, Tenant’s
license to use the Transmission Devices Area to construct, install, operate,
repair, replace (subject to Section 3 of this Agreement) and maintain the
Telecommunication Devices shall commence and shall continue until the earlier
of (i) the expiration or earlier termination of the Lease, (ii) any termination
of this Agreement required by law, governmental authority or quasi-governmental
authority, or (iii) the effective date set forth in a written notice from
Tenant to Landlord electing to terminate this Agreement. Subject to the rights
of Landlord to maintain, operate and repair the Building, Tenant shall have the
exclusive right to use the Roof Location. Landlord shall, upon reasonable
prior Notice to Tenant, have the right to use and to grant to third parties,
the right to use, the Building riser system, and portions of the roof of the
Building (subject to the terms of the Lease), other than the Roof Location for
Telecommunication Devices only so long as any such use of the other portions of
the roof shall not unreasonably interfere with Tenant’s Telecommunication
Devices.

          1.4 Access to Telecommunication Devices. During the term of this
Agreement, Tenant, its agents, employees and contractors, will have the
unlimited right of access to the Transmission Devices, the Transmission Devices
Area, and the Connections. In the event that the Connections are only
accessible through space in the Building leased to other tenants, Tenant may
access such Connections only (i) after giving Landlord at least three (3)
business days’ prior written notice, (ii) if such access is reasonably
necessary, and (iii) if accompanied by an agent of Landlord. In the event of
an emergency, Tenant shall notify Landlord of such emergency and, thereafter,
Landlord shall use its commercially reasonable efforts to respond more quickly
than as set forth in this Section 1.4 to the access needs of Tenant.

          1.5 Ownership and Removal of Telecommunication Devices. The
Telecommunication Devices shall at all times remain the property of Tenant.
Tenant shall have the right to remove the Telecommunication Devices, or any
part thereof, at any reasonable time upon at least thirty (30) days’ prior
written notice to Landlord; provided that in the event of an emergency,
Landlord shall use its commercially reasonable efforts to allow Tenant to
remove such Telecommunication Devices upon less notice. On or before the
expiration or earlier termination of this Agreement, Tenant will remove, at its
own cost and expense, the Telecommunication Devices and all related facilities
in the Transmission Devices Area (specifically including, but not limited to,
(i) any fencing and barriers securing the
Telecommunication Devices, and (ii) any Connections installed by or on
behalf of Tenant in the Building riser system), and return the Transmission
Devices Area (specifically including, but not limited to, the Building riser
system) to its condition existing prior to Tenant’s installation of the

	 	 	 
	 	 	
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Telecommunication Devices. If Tenant fails to complete such removal or fails
to repair any damage caused by such removal within ten (10) days after the
expiration or sooner termination of the Lease, Landlord may complete such
removal and repair such damage and charge the cost thereof to Tenant, which
amounts shall be payable by Tenant within thirty (30) days after Notice thereof
from Landlord to Tenant.

     2.     Costs. Tenant shall not be obligated to pay any rent for the Roof
Location and Transmission Devised Area; provided, however, that Tenant shall
pay, as Additional Rent, all costs incurred by Landlord or Tenant for Tenant’s
use of Building utilities in connection with the Telecommunication Device
(including the cost of any separate metering requested by Landlord to the
extent applicable), including, without limitation, any electricity, water, gas,
or heating, ventilation or air conditioning (if any). In addition, Tenant
shall directly pay for all costs in connection with the construction,
installation, operation, maintenance, repair, replacement, and insurance of the
Telecommunication Devices, Roof Location and the Transmission Devices Area.

     3.     Installation, Maintenance and Operation of Telecommunication Devices.

          3.1 Approvals and Permits. During the term of this Agreement and subject
to the terms of Section 3.2, below, Tenant may install and operate the
Telecommunication Devices in the Transmission Devices Area, in the particular
locations as indicated on Schedule 2 for the particular Telecommunication
Devices, provided that: (a) Tenant has obtained Landlord’s prior written
approval, which approval shall be in Landlord’s reasonable discretion, of the
plans and specifications for the Telecommunication Devices and all working
drawings for the installation of the Telecommunication Devices, (b) Tenant has
obtained all required permits and governmental or quasi-governmental approvals
(including satisfying any applicable Federal Communications Commission and
Federal Aviation Administration requirements) to install and operate the
Telecommunication Devices, and (c) Tenant complies with all applicable
governmental and quasi-governmental laws, regulations and building codes in
connection with the Transmission Devices Area and the Telecommunication
Devices. Landlord shall have the right to reasonably condition its approval of
any Telecommunication Devices proposed to be installed by Tenant on Tenant,
among other things, erecting fencing or other barriers to secure such devices.
With regard to Tenant obtaining all required permits and approvals set forth in
Section 3.1(b) above, Landlord shall reasonably cooperate, at Tenant’s sole
cost, with Tenant; provided, however, that Landlord shall not be responsible
for any such approvals. Once Landlord has given its requisite approval, Tenant
may not materially alter or modify the working drawings, or the actual
installation of the Telecommunication Devices without Landlord’s prior written
consent, which consent shall be granted or withheld in Landlord’s reasonable
discretion.

          3.2 Compatibility with Building Systems and Operations. All
Telecommunication Devices shall be compatible with the Building systems and
equipment and shall not impair window washing or the use of chiller units, the
cooling tower, the emergency generator, elevators, machine rooms, helipads,
ventilation shafts, if any, or any other parts of the Building. If the
installation, maintenance, repair, operation or removal of the
Telecommunication Devices require any changes or modifications to any
structural systems or components of the Building or any of the Building’s
systems or equipment, Landlord shall have the right to either (i) perform such
changes or modifications and Tenant shall pay for the actual

	 	 	 
	 	 	
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costs thereof
(without overhead or profit) within thirty (30) days after Notice thereof from
Landlord to Tenant or (ii) require Tenant to perform such changes or
modifications at Tenant’s sole cost and expense. If required by Landlord, in
its reasonable discretion, or any governmental agency or authority, Tenant
shall fully enclose the Transmission Devices Area with suitable fencing or
other required enclosures, subject to the terms of Section 3.1, above.
Landlord shall have the right to post notices of non-responsibility in
connection with any work performed by Tenant or its agents or contractors in
connection with this Agreement. The terms and conditions of Article 9 of the
Lease shall specifically be applicable in connection with any work performed by
Tenant or its agents or contractors in connection with the Telecommunication
Devices or this Agreement.

     4.     Use of Transmission Devices Area. Tenant shall have the right to use
the Building electricity, water, gas and heating, ventilation and air
conditioning located on the roof of the Building for the operation of the
Telecommunication Devices. Tenant will not store any materials in the
Transmission Devices Area. Tenant will use the Transmission Devices Area
solely for the Telecommunication Devices and not for any other purpose.
Landlord and its agents may enter and inspect the Transmission Devices Area at
any time. Concurrently with Tenant’s installation of any locks for the
Transmission Devices Area, Tenant will deliver to Landlord a key for any such
lock. Tenant will not materially interfere with the mechanical, electrical,
heating, ventilation and air conditioning, or plumbing systems of the Building
or the operation, reception, or transmission of any other satellite, microwave,
or other broadcasting or receiving devices that are, or will be, located on the
roof of, or in, the Building and or the Project.

     5.     Indemnification and Insurance. Tenant agrees and acknowledges that it
shall use the Transmission Devices Area at its sole risk, and, expect to the
extent caused by Landlord’s negligence or willful misconduct (unless the same
is otherwise covered by insurance required to be maintained by Tenant under the
Lease), Tenant absolves and fully releases Landlord and the “Landlord Parties,”
as that term is defined in Section 10 of the Lease, from (i) any and all cost,
loss, damage, expense, liability, and cause of action, whether foreseeable or
not, arising from any cause, that Tenant may suffer to its personal property
located in the Transmission Devices Area, or (ii) that Tenant or Tenant’s
officers, agents, employees, or independent contractors Landlord or the
Landlord Parties may suffer as a direct or indirect consequence of Tenant’s use
of the Transmission Devices Area, the Telecommunication Devices or access areas
to the Transmission Devices Area, or (iii) any other cost, loss, damage,
expense, liability, or cause of action arising from or related to this
Agreement. In addition, subject to the terms of Article 10 of the Lease,
Tenant agrees to indemnify, defend, protect, and hold Landlord and the Landlord
Parties harmless from and against any loss, cost, damage, liability, expense,
claim, action or cause of action of any third party (including, but not limited
to, reasonable attorneys’ fees and costs), whether foreseeable or not,
resulting as a direct or indirect consequence of Tenant’s use of the
Transmission Devices Area, the Telecommunication Devices or access areas to the
Transmission Devices Area, except when such cost, loss, damage, expense, or
liability is due to the negligence or willful misconduct of Landlord or the
Landlord Parties (unless the same is otherwise covered by insurance required to
be maintained by Tenant under the Lease). In addition, Tenant will
procure and maintain, at Tenant’s sole expense, insurance in connection
with the Transmission Devices Area, the Telecommunication Devices and the
obligations assumed by Tenant under this

	 	 	 
	 	 	
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Agreement, in the same amounts and
with the same types of coverage as required to be procured by Tenant under the
Lease.

     6.     Defaults. If Tenant fails to cure the breach of any of the covenants
set forth in this Agreement within ten (10) business days following notice from
Landlord (provided that such time period shall be extended so long as Tenant
commences the cure within such ten (10) business day period and pursues such
cure with due diligence to completion), Landlord shall have the right to
terminate this Agreement upon written notice to Tenant. In addition, at the
option of Landlord, breach of any of the covenants under this Agreement by
Tenant will also constitute a default by Tenant under the Lease, and a default
by Tenant under the Lease will also constitute a default by Tenant under this
Agreement (in which event Landlord may terminate this Agreement upon notice to
Tenant).

     7.     Notices. Any notice required or permitted to be given under this
Agreement by Tenant or Landlord will be given under the terms of Section 29.14
of the Lease.

     8.     Incorporation of Lease Provisions. All applicable provisions of the
Lease apply to Tenant’s payment of rent and other charges pursuant to this
Agreement, and the Transmission Devices Area and Tenant’s use thereof in the
same manner as those provisions apply to the Premises and are incorporated into
this Agreement by this reference as though fully set forth in this Agreement.
In the event of any conflicts between the provisions of this Agreement and the
Lease, in connection with the interpretation of this Agreement only, the
provisions of this Agreement shall govern.

     9.     No Warranty. Landlord has made no warranty or representation that the
Telecommunication Devices are permitted by law and Tenant assumes all liability
and risk in obtaining all permits and approvals necessary for the installation
and use of the Telecommunication Devices. Landlord does not warrant or
guaranty that Tenant will receive unobstructed transmission or reception to or
from the Telecommunication Devices and Tenant assumes the liability for the
transmission and reception to and from the Telecommunication Devices.

     10.     Assignment. Notwithstanding any contrary provision set forth in this
Agreement above, this Agreement, and Tenant’s rights contained herein, may not
be transferred or assigned to any other person or entity, and no person or
entity other than Tenant (and its employees) and Tenant’s Affiliates and other
Transferees permitted under the terms of the Lease but only to the extent any
such entity is actually occupying all or a portion of the Premises, shall be
entitled to use the Telecommunication Devices or the Transmission Devices Area.

	 	 	 
	 	 	
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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

	 	 	 	 	 
	 	 	“Landlord”:
	 	 	 	 	 
	 	 	PLAYA
VISTA - WATER’S EDGE, LLC, a

Delaware limited liability company
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	 	

	 	 	 	 	 
	 	 	
Name:
	 	 
	 	 	 	

	 	 	 	 	 
	 	 	
Title:
	 	 
	 	 	 	

	 	 	 	 	 
	 	 	“Tenant”:
	 	 	 	 	 
	 	 	ELECTRONIC
ARTS INC., a Delaware

corporation
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	 	

	 	 	 	Its:	 
	 	 	 	 	

	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	 	

	 	 	 	Its:	 
	 	 	 	 	

 

	 	 	 
	 	 	
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EXHIBIT H

OUTLINE OF FIELD

(PRIOR TO CONSTRUCTION OF BUILDING 3)

	 	 	 	 	 
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EXHIBIT H-1

OUTLINE OF FIELD

(FOLLOWING CONSTRUCTION OF BUILDING 3)

	 	 	 	 	 
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EXHIBIT I

INTENTIONALLY DELETED

	 	 	 	 	 
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EXHIBIT J

FORM OF MEMORANDUM OF LEASE

AND PURCHASE OPTION

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO:

ALLEN MATKINS LECK GAMBLE

& MALLORY LLP

1901 Avenue Of The Stars, Suite 1800

Los Angeles, California 90067-6050

Attention: Anton N. Natsis, Esq.

(Space Above For Recorder’s Use)

MEMORANDUM OF LEASE

     THIS
MEMORANDUM OF LEASE (the “Memorandum”) is made as of
the 31st day of
July, 2003 by and between PLAYA VISTA – WATER’S EDGE, LLC, a Delaware limited
company (“Landlord”) and ELECTRONIC ARTS INC., a Delaware corporation
(“Tenant”).

R E C I T A L S:

     A.     Landlord and Tenant have entered into that certain unrecorded lease of
even date herewith (the “Lease”). All capitalized terms not otherwise defined
herein shall have the meaning assigned to them in the Lease.

     B.     Landlord and Tenant desire to provide notice that (i) Tenant hereby
leases all of the rentable square footage in those certain office buildings
(the “Buildings”) located at 5570 and 5510 Lincoln Boulevard, Los Angeles,
California, as situated on that certain parcel of real property located in the
County of Los Angeles, State of California, and all as more particularly
described in Exhibit “A” attached hereto and incorporated herein by this
reference, and (ii) Tenant retains certain rights on and with respect to
certain real property located adjacent to the Buildings, as more particularly
set forth on Exhibit A-1, attached hereto (the “Adjacent Property”), all on the
terms and conditions as more fully set forth in the Lease.

     C.     Landlord and Tenant have entered into that certain Project Agreement Re
Right of First Offer to Purchase and Options to Purchase which relate to the
Buildings (the “Purchase Option Agreement”).

	 	 	 	 	 
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     D.     NOW, THEREFORE, in consideration of the facts herein above set forth,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Landlord and Tenant hereby agree as follows:

AGREEMENT

     1.     Demise of Premises. Landlord hereby leases to Tenant, and Tenant
hereby leases from Landlord, subject to the terms and conditions set forth in
the Lease, all of the approximately 243,432 rentable square feet of the
Buildings. The Lease Commencement Date is as set forth in the Lease, and the
term of the Lease shall terminate, subject to the options to renew set forth
below, ten (10) years thereafter.

     2.     Limitation on Building 3 Rentable Square Footage, Field Location. In
consideration of Tenant’s execution of the Lease, (i) Landlord has agreed that
the total rentable square footage of “Building 3”, as that term is defined in
the Lease, to the extent built upon the Adjacent Property, shall not exceed
130,000 rentable square feet of space (calculated in the same manner as
Tenant’s rentable square footage was calculated under the Lease), and (ii)
Landlord has agreed that the “Field” (which is located on the Adjacent
Property) shall be located as set forth on Exhibit B attached hereto prior to
the construction of Building 3 and as set forth on Exhibit B-1 following the
construction of Building 3.

     3.     Options to Renew. Landlord hereby grants to Tenant, subject to the
terms and conditions set forth in the Lease, two (2) options to extend the term
of the Lease (for a period of five (5) years each) with respect to all space
leased by Tenant in the Buildings (“Option to Extend”). Each Option to Extend
is to be exercised, if at all, at least sixteen (16) months prior to the
expiration of the then Lease Term.

     4.     Purchase Option. Subject to the terms of the Purchase Option
Agreement, Landlord hereby grants to Tenant certain rights to purchase the
Buildings, as more particularly set forth in such agreement.

     5.     Other Terms. The terms and conditions of the Lease and the Purchase
Option Agreement are incorporated herein by this reference. This Memorandum is
prepared and recorded for the purpose of putting the public on notice of the
Lease and the Purchase Option Agreement, and this Memorandum in no way modifies
the terms and conditions of the Lease or the Purchase Option Agreement. If
there is any inconsistency between the terms and conditions of this Memorandum
and the terms and conditions of the Lease or the Purchase Option Agreement, the
terms and conditions of the Lease or the Purchase Option Agreement, as the case
may be, shall control.

	 	 	 	 	 
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     E.     IN WITNESS WHEREOF, the parties execute this Memorandum on the day and
year first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	“Landlord”:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	PLAYA VISTA – WATER’S EDGE, LLC,
 a Delaware limited liability company
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	CA-Playa Vista Water’s Edge Limited Partnership,	 	 	 	 
	 	 	 	 	a Delaware limited partnership,
	 	 	 	 	its Co-Manager
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	EOM GP, L.L.C.,
	 	 	 	 	 	 	a Delaware limited liability company,
	 	 	 	 	 	 	its general partner	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Equity Office Management, L.L.C.,
	 	 	 	 	 	 	 	 	a Delaware limited liability company,
	 	 	 	 	 	 	 	 	its non-member manager
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Maguire Partners – PV Investor Partnership, L.P., 
	 	 	 	 	a California limited partnership,
	 	 	 	 	its Co-Manager	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Maguire Partners – PV IP GP, LLC,	 	 
	 	 	 	 	 	 	a California limited liability company,	 	 
	 	 	 	 	 	 	its general partner	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Maguire Partners SCS, Inc.,
	 	 	 	 	 	 	 	 	a California corporation,
	 	 	 	 	 	 	 	 	its Manager
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 
	 	 	 	 	WATER’S EDGE
	 	 	EXHIBIT J 	 	[Electronic Arts]
	 	 	
-3-
	 	EOP Matter ID No. 7467

 

 

	 	 	 	 	 	 	 
	 	 	“Tenant”:
	 	 	 	 	 	 	 
	 	 	ELECTRONIC ARTS INC.,
	 	 	a Delaware corporation
	 	 	 	 	 	 	 
	 	 	
By:	 	 	 	 
	 	 	 	

	 	 	 	Its:	 	 	 
	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	
By:	 	 	 	 
	 	 	 	

	 	 	 	Its:	 	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	 	 	WATER’S EDGE
	 	 	EXHIBIT J 	 	[Electronic Arts]
	 	 	
-4-
	 	EOP Matter ID No. 7467

 

 

	 	 	 	 	 	 	 
	STATE OF	 	 	 	)	 	 
	 	 	 	 	)	 	ss.
	COUNTY OF LOS ANGELES)	 	 	 	 	 	 

     On
          ,
before me,
          , a Notary
Public in and for said state, personally appeared
          ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument, the person, or the
entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	 	 	
WITNESS my hand and official seal.
	 	 	 
	 	 	

	 	 	
Notary Public in and for said State

	 	 	 	 	 
	 	 	 	 	WATER’S EDGE
	 	 	EXHIBIT J 	 	[Electronic Arts]
	 	 	
-5-
	 	EOP Matter ID No. 7467

 

 

	 	 	 	 	 	 	 
	STATE OF	 	 	 	)	 	 
	 	 	 	 	)	 	ss.
	COUNTY OF LOS ANGELES)	 	 	 	 	 	 

     On     
          , before
me,           , a Notary
Public in and for said state, personally appeared
     ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument, the person, or the
entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	 	 	
WITNESS my hand and official seal.
	 	 	 
	 	 	

	 	 	
Notary Public in and for said State

	 	 	 	 	 	 	 
	STATE OF	 	 	 	)	 	 
	 	 	 	 	)	 	ss.
	COUNTY OF LOS ANGELES)	 	 	 	 	 	 

     On          ,
before me,
          , a Notary
Public in and for said state, personally appeared
          ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument, the person, or the
entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	 	 	
WITNESS my hand and official seal.
	 	 	 
	 	 	

	 	 	
Notary Public in and for said State

	 	 	 	 	 
	 	 	 	 	WATER’S EDGE
	 	 	EXHIBIT J 	 	[Electronic Arts]
	 	 	
-6-
	 	EOP Matter ID No. 7467

 

 

	 	 	 	 	 	 	 
	STATE OF	 	 	 	)	 	 
	 	 	 	 	)	 	ss.
	COUNTY OF LOS ANGELES)	 	 	 	 	 	 

     On
     , before me,
     , a Notary
Public in and for said state, personally appeared
     ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument, the person, or the
entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	 	 	
WITNESS my hand and official seal.
	 	 	 
	 	 	

	 	 	
Notary Public in and for said State

	 	 	 	 	 
	 	 	 	 	WATER’S EDGE
	 	 	EXHIBIT J 	 	[Electronic Arts]
	 	 	
-7-
	 	EOP Matter ID No. 7467

 

 

EXHIBIT A

DESCRIPTION OF REAL PROPERTY

PHASE I

LEGAL DESCRIPTION

The land referred to in this policy is situated in the county of Los Angles,
State of California, and is described as follows:

PARCEL A-1:

PARCEL 1 OF CERTIFICATE OF COMPLIANCE FOR LOT-LINE ADJUSTMENT RECORDED APRIL
10, 2001 AS INSTRUMENT NO. 01-600995 OF OFFICIAL RECORDS, MORE PARTICULARLY
DESCRIBED AS:

THAT PORTION OF LOTS 6 AND 7 OF TRACT NO. 49104-03, IN THE CITY OF LOS ANGELES,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 1240 PAGES
26 THROUGH 32 INCLUSIVE OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS:

BEGINNING AT THE MOST WESTERLY CORNER OF SAID LOT 6; THENCE ALONG THE
NORTHWESTERLY LINE OF SAID LOT 6 NORTH 62o21’36” EAST 367.18 FEET; THENCE SOUTH
27o38’02” EAST 267.08 FEET TO A LINE PARALLEL WITH SAID NORTHWESTERLY LINE OF
LOT 6 AND WHICH PASSES THROUGH A POINT ON THE SOUTHWESTERLY LINE OF SAID LOT 7
DISTANT THEREON NORTHWESTERLY 163.16 FEET FROM THE MOST WESTERLY, SOUTHERN
CORNER OF LOT 8 OF SAID TRACT; THENCE SOUTH 62o21’36” WEST 337.78 FEET ALONG
SAID PARALLEL LINE TO SAID SOUTHWESTERLY LINE OF SAID LOT 7; THENCE ALONG SAID
SOUTHWESTERLY LINE AND THE SOUTHWESTERLY LINE OF SAID LOT 6, THE FOLLOWING
THREE COURSES:

	1)	 	NORTH 27o04’18” WEST 102.84 FEET;
	 
	2)	 	NORTH 38o17’34” WEST 123.72 FEET TO THE BEGINNING OF A CURVE, CONCAVE
NORTHEASTERLY AND HAVING A RADIUS OF 1,948.11 FEET.
	 
	3)	 	THENCE NORTHWESTERLY 43.32 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE
OF 01o16’26” TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM THE RIGHT TO ALL OIL, GAS AND OTHER HYDROCARBONS IN SAID
LAND, TOGETHER WITH THE EXCLUSIVE RIGHT TO USE PERPETUALLY THE SUBSURFACE OIL
AND/OR GAS FORMATIONS FOR INSPECTING, STORING AND WITHDRAWING NATURAL GAS THEREIN AND THEREFROM AND FOR
REPRESSURING THE SAME, BUT NOT EXCLUDING OR RESERVING, HOWEVER, THE RIGHT TO GO
UPON OR USE THE SURFACE OF SAID LAND OR ANY PART OR PORTIONS THEREOF, AS
RESERVED BY THE UNITED

	 	 	 
	 	EXHIBIT A

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WATER’S EDGE

[Electronic Arts]

EOP Matter ID No. 7467

 

 

STATES OF AMERICA, AND ITS ASSIGNS, BY DECREE ENTERED FEBRUARY 5, 1952, IN
UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT OF CALIFORNIA, CENTRAL
DIVISION, CASE NO. 2454-B, CIVIL; A CERTIFIED COPY OF WHICH WAS RECORDED
FEBRUARY 18, 1952, AS INSTRUMENT NO, 3526, IN BOOK 38244 PAGE 397, OFFICIAL
RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL A-2

PARCEL 2 OF CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT RECORDED APRIL
10, 2001 AS INSTRUMENT NO. 01-0600995, OF OFFICIAL RECORDS, MORE PARTICULARLY
DESCRIBED AS FOLLOWS:

THAT PORTION OF LOTS 7 AND 8 OF TRACT NO. 49104-03, IN THE CITY OF LOS ANGELES,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 1240, PAGES
26 THROUGH 32 INCLUSIVE OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE SOUTHWESTERLY LINE OF SAID LOT 7 DISTANT THEREON
NORTHWESTERLY 163.16 FEET FROM THE MOST WESTERLY, SOUTHERN CORNER OF SAID LOT
8; THENCE PARALLEL WITH THE NORTHERLY LINE OF LOT 6 OF SAID TRACT, NORTH
62°21’36” EAST 322.95 FEET TO A LINE WHICH BEARS SOUTH 27o38’02” EAST AND WHICH
PASSES THROUGH A POINT IN SAID NORTHERLY LINE DISTANT NORTH 62°21’36” EAST
352.35 FEET FROM THE MOST WESTERLY CORNER OF SAID LOT 6; THENCE SOUTH 27°38’02”
EAST 196.04 FEET TO THE SOUTHERLY LINE OF SAID LOT 8; THENCE ALONG THE
SOUTHEASTERLY, SOUTHERLY AND SOUTHWESTERLY LINE OF SAID LOT 8 AND THE
SOUTHWESTERLY LINE OF LOT 7 THE FOLLOWING THREE COURSES:

	1)	 	SOUTH 61°14’56” WEST 285.50 FEET;
	 
	2)	 	NORTH 72°54’4l” WEST 54.60 FEET;
	 
	3)	 	NORTH 27°04’18” WEST 163.16 TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM THE RIGHT TO ALL OIL, GAS AND OTHER HYDROCARBONS IN SAID
LAND, TOGETHER WITH THE EXCLUSIVE RIGHT TO USE PERPETUALLY THE SUBSURFACE OIL
AND/OR GAS FORMATIONS FOR INSPECTING STORING AND WITHDRAWING NATURAL GAS
THEREIN AND THEREFROM AND FOR REPRESSURING THE SAME, BUT NOT EXCLUDING OR
RESERVING, HOWEVER, THE RIGHT TO GO UPON OR USE THE SURFACE OF SAID LAND OR ANY
PART OR PORTIONS THEREOF, AS RESERVED BY THE UNITED STATES OF AMERICA, AND ITS
ASSIGNS, BY DECREE ENTERED FEBRUARY 5, 1952,
IN UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT OF CALIFORNIA, CENTRAL
DIVISION, CASE NO. 2454-B, CIVIL; A CERTIFIED COPY OF WHICH WAS RECORDED
FEBRUARY 18, 1952, AS INSTRUMENT NO. 3526, IN BOOK 38244 PAGE 397, OFFICIAL
RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

	 	 	 
	 	EXHIBIT A

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[Electronic Arts]

EOP Matter ID No. 7467

 

 

PARCEL B.

EASEMENTS AS MORE PARTICULARLY DESCRIBED AND SET FORTH IN THAT CERTAIN
“AGREEMENT OF COVENANTS, CONDITIONS AND RESTRICTIONS AND GRANT OF EASEMENTS
(PLAYA VISTA PARKS AND LANDSCAPE CORPORATION/LOTS 6, 7 AND 8 OF TRACT NO.
49104-03 – JEFFERSON NORTH)” RECORDED DECEMBER 18, 2000 AS INSTRUMENT NO.
00-1961844 OF OFFICIAL RECORDS, SAID EASEMENTS ARE LOCATED OVER THE FOLLOWING
DESCRIBED LAND:

LOT 4 OF TRACT NO. 49104-03, IN THE CITY OF LOS ANGELES, AS SHOWN ON MAP
RECORDED IN BOOK 1240 PAGES 26 TO 32 OF MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.

PARCEL C:

AN EASEMENT FOR DRIVEWAY PURPOSES AS DESCRIBED IN THAT CERTAIN COVENANT AND
AGREEMENT FOR COMMON DRIVEWAY RECORDED DECEMBER 9, 1999 AS INSTRUMENT NO.
99-2273732 OF OFFICIAL RECORDS, EXECUTED BY PLAYA CAPITAL COMPANY, LLC IN FAVOR
OF THE CITY OF LOS ANGELES, SAID EASEMENT HAVING BEEN CREATED BY THAT CERTAIN
INSTRUMENT EXECUTED BY 1) PLAYA PHASE I APARTMENTS, LLC; 2) PLAYA CAPITAL
COMPANY; 3) PLAYA PHASE I COMMERCIAL LAND LLC DATED DECEMBER 8, 2000 AND BEING
RECORDED DECEMBER 18, 2000 AS INSTRUMENT NO. 00-1961846 OF OFFICIAL RECORDS,
SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

THOSE PORTIONS OF LOTS 1 AND 4 OF TRACT NO. 49104-03, IN THE CITY OF LOS
ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA AS PER MAP FILED IN BOOK
1240, PAGES 26 TO 32 INCLUSIVE, OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS A
WHOLE AS FOLLOWS:

BEGINNING AT THE MOST EASTERLY CORNER OF LOT 5 OF SAID TRACT NO. 49104-03;
THENCE NORTH 27o38’24” WEST 182.00 FEET ALONG THE NORTHEASTERLY LINE OF SAID
LOT 5 AND ITS NORTHWESTERLY PROLONGATION TO A LINE PARALLEL WITH AND 14.00 FEET
NORTHWESTERLY OF THE NORTHWESTERLY LINE OF SAID LOT 4; THENCE ALONG SAID
PARALLEL, LINE NORTH 62°21’36” EAST, 297.00 FEET TO THE BEGINNING OF A CURVE,
CONCAVE SOUTHERLY AND HAVING A RADIUS OF 43.00 FEET, SAID CURVE BEING
CONCENTRIC WITH AND 14.00 FEET NORTHERLY OF THE CURVED NORTHERLY LINE OF SAID
LOT 4; THENCE NORTHEASTERLY, EASTERLY AND
SOUTHEASTERLY 67.54 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90o00’00”;
THENCE SOUTH 27°38’24” EAST 21.00 FEET ALONG A LINE PARALLEL WITH AND 14.00
FEET NORTHEASTERLY OF THE TANGENT PORTION OF THE GENERALLY NORTHERLY LINE OF
SAID LOT 4 TO THE BEGINNING OF A CURVE, CONCAVE NORTHEASTERLY AND HAVING A
RADIUS OF 20.00 FEET; THENCE SOUTHEASTERLY 15.51 FEET ALONG SAID CURVE, THROUGH
A CENTRAL ANGLE

	 	 	 
	 	EXHIBIT A

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WATER’S EDGE

[Electronic Arts]

EOP Matter ID No. 7467

 

 

OF 44°25’21” TO THE NON-TANGENT CURVED NORTHERLY LINE OF SAID LOT 4, SAID
NON-TANGENT CURVE BEING CONCAVE NORTHERLY HAVING A RADIUS OF 27.00 FEET, AND TO
WHICH INTERSECTION A RADIAL BEARS SOUTH 11°59’21” EAST; THENCE ALONG THE
GENERALLY NORTHERLY, NORTHEASTERLY AND EASTERLY LINES OF SAID LOT 4, THE
FOLLOWING FIVE COURSES:

	1.	 	SOUTHEASTERLY 7.38 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF
15°39’04”;
	 
	2.	 	NORTH 62o21’36” EAST 18.71 FEET TO A NON-TANGENT CURVE, CONCAVE
NORTHEASTERLY HAVING A RADIUS OF 68.00 FEET AND TO WHICH INTERSECTION A
RADIAL LINE BEARS SOUTH 78°35’06” WEST;
	 
	3.	 	SOUTHERLY 38.51 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF
32o27’01”;
	 
	4.	 	SOUTH, 62°21’36” WEST 16.71 FEET TO THE BEGINNING OF A CURVE, CONCAVE
SOUTHEASTERLY AND HAVING A RADIUS OF 29.00 FEET;
	 
	5.	 	SOUTHWESTERLY 10.22 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF
20°11’30” TO A NON-TANGENT CURVE, CONCAVE EASTERLY, HAVING A RADIUS OF
20.00 FEET, BEING TANGENT AT ITS SOUTHEASTERLY TERMINUS WITH A LINE
PARALLEL WITH AND 14.00 FEET NORTHEASTERLY OF THE TANGENT PORTION OF SAID
GENERALLY EASTERLY LINE AND TO WHICH INTERSECTION A RADIAL LINE BEARS
NORTH 76o16’21” WEST;

THENCE LEAVING SAID GENERALLY EASTERLY LINE OF LOT 4, SOUTHWESTERLY 14.44 FEET
ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 41°22’03” TO SAID PARALLEL LINE;
THENCE SOUTH 27o38’24” EAST 21.00 FEET ALONG SAID PARALLEL LINE TO THE
BEGINNING OF A CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 43.00 FEET AND BEING
CONCENTRIC WITH AND 14.00 FEET EASTERLY OF THE CURVED SOUTHEASTERLY LINE OF
SAID LOT 4; THENCE SOUTHEASTERLY, SOUTHERLY AND SOUTHWESTERLY 67.54 FEET ALONG
SAID CURVE THROUGH A CENTRAL ANGLE OF 90°00’00”; THENCE ALONG A LINE PARALLEL
WITH AND 14.00 FEET SOUTHEASTERLY OF THE SOUTHEASTERLY LINE. OF SAID LOT 4,
SOUTH 62°21’36” WEST 297.00 FEET TO THE SOUTHEASTERLY PROLONGATION OF THE
SOUTHWESTERLY LINE OF SAID LOT 4; THENCE NORTH 27o38’24” WEST 14.00 FEET ALONG
SAID PROLONGATION TO TRUE POINT OF BEGINNING.

EXCEPTING THEREFROM THAT PORTION OF SAID LAND AS DESCRIBED AS FOLLOWS:

BEGINNING AT THE MOST NORTHERLY CORNER OF THE SOUTHWESTERLY 28.00 FEET OF THE
SOUTHEASTERLY 34.00 FEET OF SAID LOT 4; THENCE ALONG THE NORTHEASTERLY LINE OF
SAID SOUTHWESTERLY 28.00 FEET, NORTH 27o38’24” WEST 100.00 FEET TO THE
BEGINNING OF A CURVE, CONCAVE

	 	 	 
	 	EXHIBIT A

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WATER’S EDGE

[Electronic Arts]

EOP Matter ID No. 7467

 

 

EASTERLY, HAVING A RADIUS OF 20.00 FEET AND BEING TANGENT AT ITS NORTHEASTERLY
TERMINUS WITH THE SOUTHEASTERLY LINE OF THE NORTHWESTERLY 14.00 FEET OF SAID
LOT 4; THENCE NORTHWESTERLY, NORTHERLY AND NORTHEASTERLY 31.42 FEET ALONG SAID
CURVE THROUGH A CENTRAL ANGLE OF 90°00’00” TO SAID SOUTHEASTERLY LINE; THENCE
NORTH 62o21’36” EAST 244.00 FEET ALONG SAID SOUTHEASTERLY LINE TO THE BEGINNING
OF A CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 20.00 FEET AND BEING
TANGENT AT ITS SOUTHEASTERLY TERMINUS WITH A LINE PARALLEL WITH AND 14.00 FEET
SOUTHWESTERLY OF THE TANGENT PORTION OF THE GENERALLY NORTHERLY LINE OF SAID
LOT 4; THENCE NORTHEASTERLY, EASTERLY AND SOUTHEASTERLY 31.42 FEET ALONG SAID
CURVE, THROUGH A CENTRAL ANGLE OF 90°00’00” TO SAID PARALLEL LINE; THENCE SOUTH
27°38’24” EAST 100.00 FEET ALONG SAID PARALLEL LINE TO THE BEGINNING OF A
CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 20.00 FEET AND BEING TANGENT AT ITS
SOUTHWESTERLY TERMINUS WITH THE NORTHWESTERLY LINE OF THE SOUTHEASTERLY 14.00
FEET OF SAID LOT 4; THENCE SOUTHEASTERLY, SOUTHERLY AND SOUTHWESTERLY 31.42
FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 90°00’00” TO SAID
NORTHWESTERLY LINE; THENCE ALONG SAID NORTHWESTERLY LINE SOUTH 62°21’36” WEST
244.00 FEET TO THE BEGINNING OF A CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF
20.00 FEET AND BEING TANGENT AT ITS NORTHWESTERLY TERMINUS WITH THE
NORTHEASTERLY LINE OF SAID SOUTHWESTERLY 28.00 FEET OF SAID LOT 4; THENCE
SOUTHWESTERLY, WESTERLY AIM NORTHWESTERLY 31.42 FEET ALONG SAID CURVE, THROUGH
A CENTRAL ANGLE OF 90°00’00” TO THE MOST NORTHERLY CORNER OF THE SOUTHWESTERLY
28.00 FEET OF THE SOUTHEASTERLY 34.00 FEET OF SAID LOT 4.

End of Legal Description

	 	 	 
	 	EXHIBIT A

-5-	
WATER’S EDGE

[Electronic Arts]

EOP Matter ID No. 7467

 

 

EXHIBIT A-1

DESCRIPTION OF ADJACENT PROPERTY

PHASE II

LEGAL DESCRIPTION

The land referred to in this policy is situated in the county of Los Angles,
State of California, and is described as follows:

PARCEL A-3:

PARCEL 3 OF CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT RECORDED APRIL
10, 2001 AS INSTRUMENT NO. 01-0600995, OF OFFICIAL RECORDS, MORE PARTICULARLY
DESCRIBED AS FOLLOWS:

LOTS 6, 7 AND 8 OF TRACT NO. 49104-03, IN THE CITY OF LOS ANGELES, COUNTY OF
LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 1240 PAGES 26
THROUGH 32 INCLUSIVE OF MAPS, RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT
PORTION LYING SOUTHWESTERLY OF THE FOLLOWING DESCRIBED LINE:

BEGINNING AT A POINT ON THE NORTHWESTERLY LINE OF SAID LOT 6 DISTANT THEREON
NORTH 62°21’36” EAST 367.18 FEET FROM THE MOST WESTERLY CORNER OF SAID LOT 6;
THENCE SOUTH 27o38’02” EAST 267.08 FEET TO A LINE PARALLEL WITH SAID
NORTHWESTERLY LINE OF LOT 6 AND WHICH PASSES THROUGH A POINT ON THE
SOUTHWESTERLY LINE OF SAID LOT 7 DISTANT THEREON NORTHWESTERLY 163.16 FEET FROM
THE MOST WESTERLY, SOUTHERN CORNER OF LOT 8 OF SAID TRACT THENCE SOUTH
62°21’36” WEST ALONG SAID PARALLEL LINE 14.83 FEET; THENCE SOUTH 27°38’02” EAST
196.04 FEET TO THE SOUTHEASTERLY LINE OF SAID LOT 8.

EXCEPTING THEREFROM THE RIGHT TO ALL, OIL, GAS AND OTHER HYDROCARBONS IN SAID
LAND, TOGETHER WITH THE EXCLUSIVE RIGHT TO USE PERPETUALLY THE SUBSURFACE OIL
AND/OR GAS FORMATIONS FOR INSPECTING, STORING AND WITHDRAWING NATURAL GAS
THEREIN AND THEREFROM AND FOR REPRESSURING THE SAME, BUT NOT EXCLUDING OR
RESERVING, HOWEVER, THE RIGHT TO GO UPON OR USE THE SURFACE OF SAID LAND OR ANY
PART OR PORTIONS THEREOF, AS RESERVED BY THE UNITED STATES OF AMERICA, AND ITS
ASSIGNS, BY DECREE ENTERED FEBRUARY 5, 1952, IN UNITED STATES DISTRICT COURT,
SOUTHERN DISTRICT OF CALIFORNIA, CENTRAL DIVISION, CASE NO. 2454-B, CIVIL; A
CERTIFIED COPY OF WHICH WAS RECORDED FEBRUARY 18, 1952, AS INSTRUMENT NO. 3526,
IN BOOK 38244 PAGE 397, OFFICIAL, RECORDS, IN THE OFFICE OF THE COUNTY RECORDER
OF SAID COUNTY.

	 	 	 
	 	EXHIBIT A-1

-1-	
WATER’S EDGE

[Electronic Arts]

EOP Matter ID No. 7467

 

 

PARCEL B.

EASEMENTS AS MORE PARTICULARLY DESCRIBED AND SET FORTH IN THAT CERTAIN
“AGREEMENT OF COVENANTS, CONDITIONS AND RESTRICTIONS AND GRANT OF EASEMENTS
(PLAYA VISTA PARKS AND LANDSCAPE CORPORATION/LOTS 6, 7 AND 8 OF TRACT NO.
49104-03 – JEFFERSON NORTH)” RECORDED DECEMBER 18, 2000 AS INSTRUMENT NO.
00-1961844 OF OFFICIAL RECORDS, SAID EASEMENTS ARE LOCATED OVER THE FOLLOWING
DESCRIBED LAND:

LOT 4 OF TRACT NO. 49104-03, IN TIE CITY OF LOS ANGELES, AS SHOWN ON MAP
RECORDED IN BOOK 1240 PAGES 26 TO 32 OF MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.

PARCEL C:

AN EASEMENT FOR DRIVEWAY PURPOSES AS DESCRIBED IN THAT CERTAIN COVENANT AND
AGREEMENT FOR COMMON DRIVEWAY RECORDED DECEMBER 9, 1999 AS INSTRUMENT NO.
99-2273732 OF OFFICIAL RECORDS, EXECUTED BY PLAYA CAPITAL COMPANY, LLC IN FAVOR
OF THE CITY OF LOS ANGELES, SAID EASEMENT HAVING BEEN CREATED BY THAT CERTAIN
INSTRUMENT EXECUTED BY 1) PLAYA PHASE I APARTMENTS, LLC; 2) PLAYA CAPITAL
COMPANY; 3) PLAYA PHASE I COMMERCIAL LAND LLC DATED DECEMBER 8, 2000 AND BEING
RECORDED DECEMBER 18, 2000 AS INSTRUMENT NO. 00-1961846 OF OFFICIAL RECORDS,
SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

THOSE PORTIONS OF LOTS 1 AND 4 OF TRACT NO. 49104-03, IN THE CITY OF LOS
ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA AS PER MAP FILED IN BOOK
1240, PAGES 26 TO 32 INCLUSIVE, OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS A
WHOLE AS FOLLOWS:

BEGINNING AT THE MOST EASTERLY CORNER OF LOT 5 OF SAID TRACT NO. 49104-03;
THENCE NORTH 27o38’24” WEST 182.00 FEET ALONG THE NORTHEASTERLY LINE OF SAID
LOT 5 AND ITS NORTHWESTERLY PROLONGATION TO A LINE PARALLEL WITH AND 14.00 FEET
NORTHWESTERLY OF THE NORTHWESTERLY LINE OF SAID LOT 4; THENCE ALONG SAID
PARALLEL, LINE NORTH 62°21’36” EAST, 297.00 FEET TO THE BEGINNING OF A CURVE,
CONCAVE SOUTHERLY AND HAVING A RADIUS OF 43.00 FEET, SAID CURVE BEING
CONCENTRIC WITH AND 14.00 FEET NORTHERLY OF THE CURVED NORTHERLY LINE OF SAID
LOT 4; THENCE NORTHEASTERLY, EASTERLY AND SOUTHEASTERLY 67.54 FEET ALONG SAID
CURVE THROUGH A CENTRAL ANGLE OF 90o00’00”; THENCE SOUTH 27°38’24” EAST 21.00
FEET ALONG A LINE PARALLEL WITH AND 14.00 FEET NORTHEASTERLY OF THE TANGENT
PORTION OF THE GENERALLY NORTHERLY LINE OF SAID LOT 4 TO THE BEGINNING OF A
CURVE, CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 20.00 FEET; THENCE
SOUTHEASTERLY 15.51 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE

	 	 	 
	 	EXHIBIT A-1

-2-	
WATER’S EDGE

[Electronic Arts]

EOP Matter ID No. 7467

 

 

OF 44°25’21” TO THE NON-TANGENT CURVED NORTHERLY LINE OF SAID LOT 4, SAID
NON-TANGENT CURVE BEING CONCAVE NORTHERLY HAVING A RADIUS OF 27.00 FEET, AND TO
WHICH INTERSECTION A RADIAL BEARS SOUTH 11°59’21” EAST; THENCE ALONG THE
GENERALLY NORTHERLY, NORTHEASTERLY AND EASTERLY LINES OF SAID LOT 4, THE
FOLLOWING FIVE COURSES:

	1.	 	SOUTHEASTERLY 7.38 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF
15°39’04”;
	 
	2.	 	NORTH 62o21’36” EAST 18.71 FEET TO A NON-TANGENT CURVE, CONCAVE
NORTHEASTERLY HAVING A RADIUS OF 68.00 FEET AND TO WHICH INTERSECTION A
RADIAL LINE BEARS SOUTH 78°35’06” WEST;
	 
	3.	 	SOUTHERLY 38.51 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF
32o27’01”;
	 
	4.	 	SOUTH, 62°21’36” WEST 16.71 FEET TO THE BEGINNING OF A CURVE, CONCAVE
SOUTHEASTERLY AND HAVING A RADIUS OF 29.00 FEET;
	 
	5.	 	SOUTHWESTERLY 10.22 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF
20°11’30” TO A NON-TANGENT CURVE, CONCAVE EASTERLY, HAVING A RADIUS OF
20.00 FEET, BEING TANGENT AT ITS SOUTHEASTERLY TERMINUS WITH A LINE
PARALLEL WITH AND 14.00 FEET NORTHEASTERLY OF THE TANGENT PORTION OF SAID
GENERALLY EASTERLY LINE AND TO WHICH INTERSECTION A RADIAL LINE BEARS
NORTH 76o16’21” WEST;

THENCE LEAVING SAID GENERALLY EASTERLY LINE OF LOT 4, SOUTHWESTERLY 14.44 FEET
ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 41°22’03” TO SAID PARALLEL LINE;
THENCE SOUTH 27o38’24” EAST 21.00 FEET ALONG SAID PARALLEL LINE TO THE
BEGINNING OF A CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 43.00 FEET AND BEING
CONCENTRIC WITH AND 14.00 FEET EASTERLY OF THE CURVED SOUTHEASTERLY LINE OF
SAID LOT 4; THENCE SOUTHEASTERLY, SOUTHERLY AND SOUTHWESTERLY 67.54 FEET ALONG
SAID CURVE THROUGH A CENTRAL ANGLE OF 90°00’00”; THENCE ALONG A LINE PARALLEL
WITH AND 14.00 FEET SOUTHEASTERLY OF THE SOUTHEASTERLY LINE. OF SAID LOT 4,
SOUTH 62°21’36” WEST 297.00 FEET TO THE SOUTHEASTERLY PROLONGATION OF THE
SOUTHWESTERLY LINE OF SAID LOT 4; THENCE NORTH 27o38’24” WEST 14.00 FEET ALONG
SAID PROLONGATION TO TRUE POINT OF BEGINNING.

EXCEPTING THEREFROM THAT PORTION OF SAID LAND AS DESCRIBED AS FOLLOWS:

BEGINNING AT THE MOST NORTHERLY CORNER OF THE SOUTHWESTERLY 28.00 FEET OF THE
SOUTHEASTERLY 34.00 FEET OF SAID LOT 4; THENCE ALONG THE NORTHEASTERLY LINE OF
SAID SOUTHWESTERLY 28.00 FEET, NORTH
27o38’24” WEST 100.00 FEET TO THE BEGINNING OF A CURVE, CONCAVE

	 	 	 
	 	EXHIBIT A-1

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EOP Matter ID No. 7467

 

 

EASTERLY, HAVING A RADIUS OF 20.00 FEET AND BEING TANGENT AT ITS NORTHEASTERLY
TERMINUS WITH THE SOUTHEASTERLY LINE OF THE NORTHWESTERLY 14.00 FEET OF SAID
LOT 4; THENCE NORTHWESTERLY, NORTHERLY AND NORTHEASTERLY 31.42 FEET ALONG SAID
CURVE THROUGH A CENTRAL ANGLE OF 90°00’00” TO SAID SOUTHEASTERLY LINE; THENCE
NORTH 62o21’36” EAST 244.00 FEET ALONG SAID SOUTHEASTERLY LINE TO THE BEGINNING
OF A CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 20.00 FEET AND BEING
TANGENT AT ITS SOUTHEASTERLY TERMINUS WITH A LINE PARALLEL WITH AND 14.00 FEET
SOUTHWESTERLY OF THE TANGENT PORTION OF THE GENERALLY NORTHERLY LINE OF SAID
LOT 4; THENCE NORTHEASTERLY, EASTERLY AND SOUTHEASTERLY 31.42 FEET ALONG SAID
CURVE, THROUGH A CENTRAL ANGLE OF 90°00’00” TO SAID PARALLEL LINE; THENCE SOUTH
27°38’24” EAST 100.00 FEET ALONG SAID PARALLEL LINE TO THE BEGINNING OF A
CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 20.00 FEET AND BEING TANGENT AT ITS
SOUTHWESTERLY TERMINUS WITH THE NORTHWESTERLY LINE OF THE SOUTHEASTERLY 14.00
FEET OF SAID LOT 4; THENCE SOUTHEASTERLY, SOUTHERLY AND SOUTHWESTERLY 31.42
FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 90°00’00” TO SAID
NORTHWESTERLY LINE; THENCE ALONG SAID NORTHWESTERLY LINE SOUTH 62°21’36” WEST
244.00 FEET TO THE BEGINNING OF A CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF
20.00 FEET AND BEING TANGENT AT ITS NORTHWESTERLY TERMINUS WITH THE
NORTHEASTERLY LINE OF SAID SOUTHWESTERLY 28.00 FEET OF SAID LOT 4; THENCE
SOUTHWESTERLY, WESTERLY AIM NORTHWESTERLY 31.42 FEET ALONG SAID CURVE, THROUGH
A CENTRAL ANGLE OF 90°00’00” TO THE MOST NORTHERLY CORNER OF THE SOUTHWESTERLY
28.00 FEET OF THE SOUTHEASTERLY 34.00 FEET OF SAID LOT 4.

End of Legal Description

	 	 	 
	 	EXHIBIT A-1

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EXHIBIT B

LOCATION OF FIELD

(PRIOR TO CONSTRUCTION OF BUILDING 3)

	 	 	 
	 	EXHIBIT B

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EOP Matter ID No. 7467

 

 

EXHIBIT B-1

LOCATION OF FIELD

(FOLLOWING CONSTRUCTION OF BUILDING 3)

	 	 	 
	 	EXHIBIT B-1

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EOP Matter ID No. 7467

 

 

EXHIBIT K

FORM OF RECOGNITION OF
AMENDMENT TO COVENANTS,

CONDITIONS, AND
RESTRICTIONS

RECORDING REQUESTED BY

AND WHEN RECORDED RETURN TO:

ALLEN, MATKINS, LECK, GAMBLE

             & MALLORY LLP

1901 Avenue of the Stars, 18th Floor

Los Angeles, California 90067

Attention: Anton N. Natsis, Esq.

RECOGNITION OF AMENDMENT TO
COVENANTS,

CONDITIONS, AND
RESTRICTIONS

     This Recognition of Amendment to Covenants, Conditions, And Restrictions
(this “Agreement”) is entered into as of
the     day of          ,     , by
and between PLAYA VISTA – WATER’S EDGE, LLC, a Delaware limited company
(“Landlord”), and ELECTRONIC ARTS INC., a Delaware corporation (“Tenant”), with
reference to the following facts:

     A.          Landlord and Tenant entered into that certain Office Lease dated          ,
2003 (the “Lease”). Pursuant to the Lease, Landlord leased to
Tenant and Tenant leased from Landlord space (the “Premises”) located in the
office buildings on certain real property described in Schedule 1 attached
hereto and incorporated herein by this reference (the “Property”).

     B.          The Premises are located in two office buildings located on the
Property.

     C.          Landlord, as declarant, has previously recorded, or proposes to record
concurrently with the recordation of this Agreement, an amendment (the
“Amendment”) to the Covenants, Conditions, and Restrictions recorded on     ,     
(the “Declaration”), dated     ,     , in connection with the
Property.

     NOW, THEREFORE, in consideration of (a) the foregoing recitals and the
mutual agreements hereinafter set forth, and (b) for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows.

     1.          Tenant’s Recognition of Declaration. Notwithstanding that the Lease
has been executed prior to the recordation of the Amendment, Tenant agrees to
recognize and be bound by all of the terms and provisions of the Declaration as
amended by the Amendment.

	 	 	 
	 	 	
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     IN WITNESS WHEREOF, Landlord and Tenant have caused this Agreement to be
executed the      the day of      , 200_.

	 	 	 	 	 	
	 	 	
“Landlord”:
	 	 	 	 	 	
	 	 	
PLAYA VISTA - WATER’S EDGE, LLC, a
 Delaware
limited liability company
	 	 	 
	 	 	
By:

	 	 	 	 
	 	 	
Name:

	 	 	
Title:

	 	 	 	 
	 	 	
“Tenant”:
	 	 	 
	 	 	
ELECTRONIC ARTS INC., a Delaware

corporation
	 	 	 
	 	 	
By:

	 	 	 	 
	 	 	
Its:

	 	 	 	

	 	 	
By:

	 	 	 	 
	 	 	
Its:

	 	 	 	

	 	 	 
	 	 	
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EOP Matter ID No. 7467

 

 

STATE OF                                        )

                                                          ) ss.

COUNTY OF LOS ANGELES)

     On                , before me,
               , a Notary
Public in and for said state, personally appeared
               ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument, the person, or the
entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	 	 	
WITNESS my hand and official seal.
	 	 	 
	 	 	

	 	 	
Notary Public in and for said State

STATE OF                                        )

                                                           ) ss.

COUNTY OF LOS ANGELES)

     On                     , before me,
                    , a Notary
Public in and for said state, personally appeared                     ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument, the person, or the
entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	 	 	
WITNESS my hand and official seal.
	 	 	 
	 	 	

	 	 	
Notary Public in and for said State

	 	 	 
	 	 	
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EOP Matter ID No. 7467

 

 

STATE OF                                        )

                                                           ) ss.

COUNTY OF LOS ANGELES)

     On                     , before me,
                    , a Notary
Public in and for said state, personally appeared                     ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument, the person, or the
entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	 	 	
WITNESS my hand and official seal.
	 	 	 
	 	 	

	 	 	
Notary Public in and for said State

STATE OF                                        )

                                                           ) ss.

COUNTY OF LOS ANGELES)

     On                     , before me,
                    , a Notary
Public in and for said state, personally appeared                     ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument, the person, or the
entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	 	 	
WITNESS my hand and official seal.
	 	 	 
	 	 	

	 	 	
Notary Public in and for said State

	 	 	 
	 	 	
WATER’S EDGE
	 	EXHIBIT K	
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EXHIBIT L

INTENTIONALLY DELETED

	 	 	 
	 	 	
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EXHIBIT M

HVAC SPECIFICATIONS

The indoor design temperatures are based on an outdoor summer dry bulb
temperature of 91 degrees F and an outdoor summer wet bulb temperature of 67
degrees F and a winter outdoor design temperature of 37 degrees F. The indoor
design temperatures will be controlled to not greater than 75 degrees F during
the summer and no less than 70 degrees F during the winter. The building
internal load shall not exceed 100 sq. ft. / person density, 1.5 Watts/sq. ft
lighting and 2.0 Watts/sq. ft. receptacle loads.

	 	 	 
	 	 	
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EXHIBIT N

JANITORIAL SPECIFICATIONS

	1.	 	OFFICE AREAS (All Floors)

	 	a.	 	Nightly Services (Five (5) nights per week)

	 	 	 	 	 	 	 
	 	 	 	
1.	 	 	Empty all waste receptacles. Clean, and reline
when needed. Remove material to designated areas.
	 	 	 	 	 	 	 
	 	 	 	
2.	 	 	Remove recycling material when container is full
(see weekly)
	 	 	 	 	 	 	 
	 	 	 	
3.	 	 	Vacuum all carpeted main traffic and use areas,
including conference rooms, reception areas, interior
stairwells, hallways and corridors with the exception of
individual offices (see weekly). Spot vacuum/clean all others
areas as needed.
	 	 	 	 	 	 	 
	 	 	 	
4.	 	 	Wash and sanitize all drinking fountains.
	 	 	 	 	 	 	 
	 	 	 	
5.	 	 	Damp mop spillage in uncarpeted office areas.
	 	 	 	 	 	 	 
	 	 	 	
6.	 	 	Spot clean carpets to remove light spillage.
Report large spills and stains to supervisor.
	 	 	 	 	 	 	 
	 	 	 	
7.	 	 	Assure all designated locked doors are closed
after area has been cleaned.
	 	 	 	 	 	 	 
	 	 	 	
8.	 	 	Activate all alarm systems as instructed by
occupant (if applicable).
	 	 	 	 	 	 	 
	 	 	 	
9.	 	 	Arrange chairs at desk and conference room tables
and turn off lights upon exiting.
	 	 	 	 	 	 	 
	 	 	 	
10.	 	 	Clean conference room tables and remove any
remaining food items.
	 	 	 	 	 	 	 
	 	 	 	
11.	 	 	Clean and sweep all lunchroom/eating areas. Wash
and wipe tables and counter tops and clean sinks.
	 	 	 	 	 	 	 
	 	 	 	
12.	 	 	Remove scuff marks on floor as needed.

	 	b.	 	Weekly Services

	 	 	 	 	 	 	 
	 	 	 	
1.	 	 	Remove recycling material when container is full.
	 	 	 	 	 	 	 
	 	 	 	
2.	 	 	Vacuum all carpeted areas completely, private
offices and cubicle interiors, desk knee area spaces and under
waste containers.
	 	 	 	 	 	 	 
	 	 	 	
3.	 	 	Dust and wipe clean with damp or treated cloth
all office furniture, files, and cubicle partition tops, (DO
NOT MOVE PAPERS).
	 	 	 	 	 	 	 
	 	 	 	
4.	 	 	Remove all finger marks and smudges from all
vertical surfaces, including doors, door frames, around light
switches, private entrance glass, and partitions.
	 	 	 	 	 	 	 
	 	 	 	
5.	 	 	Damp wipe and polish all glass furniture tops.
	 	 	 	 	 	 	 
	 	 	 	
6.	 	 	Damp mop hard surfaced floors and/or uncarpeted
surface floors.
	 	 	 	 	 	 	 
	 	 	 	
7.	 	 	Sweep uncarpeted floors employing dust control
techniques with exception of lunchroom (which is to be
performed nightly)

	 	c.	 	Monthly Services

	 	 	 	 	 	 	 
	 	 	 	
1.	 	 	Dust and wipe clean chair bases and arms,
telephones, cubicle shelves, window sills, relite ledges and
all other horizontal surfaces as needed to maintain clean
appearance (DO NOT MOVE PAPERS).
	 	 	 	 	 	 	 
	 	 	 	
2.	 	 	Edge vacuum all carpeted areas, as needed.

	 	 	 
	 	 	
WATER’S EDGE
	 	EXHIBIT N	
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EOP Matter ID No. 7467

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