Document:

exv10w30

 

EXHIBIT 10.30

EXECUTION ORIGINAL

AGREEMENT RE RIGHT OF FIRST OFFER TO PURCHASE

AND OPTIONS TO PURCHASE

By and Between

PLAYA VISTA – WATER’S EDGE, LLC,

a Delaware limited liability company

(“Optionor”)

and

ELECTRONIC ARTS INC.,

a Delaware corporation

(“Optionee”)

 

ELECTRONIC ARTS
[ROFO/Option Agreement]

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page(s)
	 	 	 	 	 	 	

	 	1.	 	 	Right Of First Offer To Purchase
	 	 	2	 
	 	2.	 	 	Purchase Options
	 	 	5	 
	 	3.	 	 	Limitation on Rights
	 	 	10	 
	 	4.	 	 	Notices/Delivery
	 	 	13	 
	 	5.	 	 	Optionor’s Representations and Warranties	 	 	15	 
	 	6.	 	 	Optionee’s Representations and Warranties
	 	 	15	 
	 	7.	 	 	Entire Agreement
	 	 	16	 
	 	8.	 	 	Governing Law
	 	 	16	 
	 	9.	 	 	Successors and Assigns
	 	 	17	 
	 	10.	 	 	Attorneys’ Fees, Costs
	 	 	17	 
	 	11.	 	 	Time of Essence
	 	 	17	 
	 	12.	 	 	No Joint Venture
	 	 	17	 
	 	13.	 	 	Severability
	 	 	17	 
	 	14.	 	 	Memorandum
	 	 	17	 
	 	15.	 	 	Subordination/Recognition Agreement
	 	 	17	 
	 	16.	 	 	Estoppel
	 	 	18	 
	 	17.	 	 	Reciprocal Parking Agreement/Lot Line Adjustment
	 	 	18	 
	 	18.	 	 	Counterparts
	 	 	19	 

	 	 	 	 
	 	(i)	 	
ELECTRONIC ARTS

[ROFO/Option Agreement]

 

 

INDEX

	 	 	 	 	 	 
	 	 	 	Page(s)
	 	 	 	

	Action
	 	 	17	 
	ASA
	 	 	8	 
	Average Option Purchase Price
	 	 	9	 
	Building 1
	 	 	1	 
	Building 2
	 	 	1	 
	Building 3
	 	 	1	 
	control
	 	 	3	 
	credit tenant
	 	 	10	 
	Dispute Resolution Period
	 	 	12	 
	Documents
	 	 	6	 
	Escrow Holder,
	 	 	3	 
	Fair Market Value
	 	 	9	 
	Field
	 	 	1	 
	Field Easement
	 	 	19	 
	Final GAAP Loss Calculation
	 	 	12	 
	First Offer Notice
	 	 	3	 
	First Purchase Option
	 	 	5	 
	Foreclosure Event
	 	 	3	 
	Foreclosure Owner
	 	 	3	 
	GAAP Basis
	 	 	11	 
	GAAP Loss
	 	 	11	 
	GAAP Loss Number
	 	 	12	 
	Interest Notice
	 	 	6	 
	Lease
	 	 	1	 
	Lease Term
	 	 	1	 
	Lot Line Adjustment
	 	 	19	 
	MAI
	 	 	8	 
	Memorandum
	 	 	17	 
	Negotiation Period
	 	 	4	 
	Non-Disturbance Agreement
	 	 	18	 
	Offered Property
	 	 	3	 
	Option Agreement
	 	 	1	 
	Option Property
	 	 	5	 
	Option Purchase Date
	 	 	6	 
	Option Purchase Price
	 	 	6	 
	Optionee
	 	 	1	 
	Optionee Affiliate
	 	 	10	 
	Optionee Affiliated Entity
	 	 	10	 
	Optionee’s Exercise Notice
	 	 	3	 
	Optionee’s Notice Period
	 	 	3	 
	Optionee’s Option Exercise Notice
	 	 	7	 
	Optionee’s Price Proposal
	 	 	7	 
	Optionee’s Response Notice
	 	 	7	 
	Optionor
	 	 	1	 
	Optionor Affiliate
	 	 	2	 
	Optionor Member
	 	 	2	 
	Optionor’s Price Proposal
	 	 	7	 
	Optionor’s Put Notice
	 	 	6	 
	Optionor’s Put Option	 	 	6	 
	Parking Easement	 	 	19	 

	 
	(i)

 

 

	 	 	 	 	 
	 	 	Page(s)
	 	 	

	Permitted Mortgage/Lien Holders
	 	 	18	 
	Phase I/Phase II Allocation
	 	 	11	 
	Preliminary GAAP Notice
	 	 	11	 
	Project
	 	 	1	 
	Purchase Agreement
	 	 	3	 
	Qualified Transaction
	 	 	5	 
	Real Property
	 	 	1	 
	Right of First Offer
	 	 	2	 
	ROFO Purchase Price
	 	 	3	 
	Ruling
	 	 	8	 
	Second Purchase Option
	 	 	6	 

	 
	(ii)

 

 

AGREEMENT RE RIGHT OF FIRST OFFER TO PURCHASE

AND OPTIONS TO PURCHASE

     This Agreement Re Right of First Offer to Purchase and Options to Purchase
(hereinafter referred to as the “Option Agreement”) is made and entered into
this 31st day of July, 2003 by and between PLAYA VISTA – WATER’S EDGE, LLC, a
Delaware limited liability company (“Optionor”), and ELECTRONIC ARTS INC., a
Delaware corporation (“Optionee”).

R E C I T A L S:

     A.        Optionor is the owner of certain real property situated in the City of
Los Angeles, County of Los Angeles, State of California, as more particularly
described on Exhibit “1” attached hereto and incorporated herein by this
reference (the “Real Property”), which Real Property is currently improved with
two (2) office buildings designated hereinafter as “Building 1” and “Building
2” located at 5510 and 5570 Lincoln Boulevard, respectively, Los Angeles,
California. Optionor and Optionee acknowledge that Optionor may, in the
future, construct another building on the Real Property, to be referred to
herein as “Building 3”. Building 1, Building 2, and, when applicable, Building
3, together with the Real Property and all improvements thereon and
appurtenances thereto are hereinafter, collectively, referred to as the
“Project”. The Project is being developed in two phases (hereinafter, “Phase
I” and “Phase II”). Phase I consists of the portion of the Real Property on
which Building 1 and Building 2 are located, Building 1 and Building 2 and all
improvements and appurtenances related thereto. Phase II consists of the that
portion of the Real Property on which Building 3 will be located, Building 3,
when constructed, and all improvements and appurtenances related thereto,
including but not limited to, an approximately 60,000 square foot athletic
field defined in the “Lease” (as defined below) as the “Field” (the “Field”) to
be constructed in connection therewith. The portions of the Real Property on
which each of Building 1, Building 2 and Building 3 are located are each
separate, legally subdivided parcels, as shown in Exhibit A-1.

     B.        Pursuant to that certain Office Lease (as the same may be amended from
time to time, the “Lease”), by and between Optionor and Optionee, Optionee has
agreed to lease from Optionor certain premises situated on Phase I, the Field
and a portion of any parking garage hereafter which may be constructed under
the Field. This Option Agreement shall not be applicable to Phase II of the
Project or the sale of any portion thereof, except as specifically provided
herein.

     C.        In connection with, and as partial consideration for, Optionee’s
entering into the Lease, Optionor agrees to grant to Optionee (i) an ongoing
right of first offer to purchase any and all permitted portions (as hereinafter
set forth) of the Project that Optionor elects to sell at any time during the
term of the Lease, including any extensions thereof (the “Lease Term”),
provided Optionor shall only offer to sell to Optionee either all of Phase I,
individually, or all of Phase I and Phase II, collectively, and may not sell or
offer to sell only a portion of any applicable Phase, and Optionor shall not
have the obligation to offer Phase II to
Optionee, if Optionor intends to sell Phase II individually, (ii) an
option to purchase Phase I of the Project, as of the fifth (5th) anniversary of
the Lease Commencement Date (as that term is defined in the Lease) and (iii) an
option to purchase Phase I of the Project as of the tenth (10th) anniversary of
the Lease Commencement Date, each upon the terms and conditions set forth in
this Option

	 	 	 
	 	-1-	
ELECTRONIC ARTS

[ROFO/Option Agreement]

 

 

Agreement, provided, however, both of the foregoing option rights
shall be subject to “Optionor’s Put Option” (defined in Section 2.1.3 below).
The ongoing right of first offer granted herein shall be independent of any
option rights granted herein, and subject to the terms of this Option Agreement
may be exercised at any time. Further, any sale to Optionee of Phase I only,
must also include either a fee interest or an exclusive easement interest in
the Field, and a reciprocal parking easement, as set forth in Section 17 below.

     NOW, THEREFORE, in consideration of the parties’ mutual covenants
hereinafter set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

     1.   Right Of First Offer To Purchase. Provided that (i) Optionee or an
“Optionee Affiliate” (as defined below) is still the “Tenant” under the Lease,
(ii) Optionee is not in monetary default under the Lease beyond any applicable
notice and cure periods at the time of Optionee’s exercise of the “Right of
First Offer” (as defined below), provided Optionor has delivered to Optionee
written notice hereunder, in addition to any notice required under the Lease,
of such default and given Optionee at least five (5) business days following
delivery of such notice to cure such default, and Optionee fails to cure the
default within such period, (nothing herein shall modify Optionor’s rights or
remedies as Landlord under the Lease) (iii) Optionee has not subleased more
than 40% of the Premises under the Lease at the time of such exercise of the
Right of First Offer hereunder and on the applicable “Closing Date,” as defined
in the “Purchase Agreement” (as defined below), and (iv) Optionee has not
assigned its rights under the Lease to any entity except to an Optionee
Affiliate, Optionee or the Optionee Affiliate shall have, throughout the Lease
Term, as such may be extended, an on ongoing right of first offer (the “Right
of First Offer”) to purchase the portion of the Project as permitted under this
Option Agreement that Optionor elects to sell to any party other than an
“Optionor Affiliate” or a “Foreclosure Owner,” (as each such term is defined
below) (such other party hereinafter referred to as an “Unaffiliated Third
Party”), whether or not such Optionor Affiliate purchases a direct or indirect,
or partial or total, interest in the “Offered Property” (defined below) or any
entity directly or indirectly owning all or a part of the Project or such
Foreclosure Owner purchases title to the Offered Property. For purposes of
this Option Agreement, an “Optionor Affiliate” shall mean (a) (i) CA-Playa
Vista Water’s Edge Limited Partnership, a Delaware limited partnership, (ii)
McGuire Partners SCS, Inc., a Delaware corporation, and (iii) McGuire
Partners-PV Investor Partnership, L.P., California limited partnership, (iv)
McGuire Properties Inc., a Maryland corporation, (v) Equity Office Properties
Trust, and (vi) McGuire Partners Ltd., a California limited partnership (each
of (a) (i)-(vi), an “Optionor Member”), or (b) an entity which is controlled
by, controls or is under common control with Optionor or any Optionor Member,
or (c) an entity which merges with or acquires or is acquired by Optionor or
Optionor Member or a parent, subsidiary or member of Optionor or any Optionor
Member, provided that if any entity acquires or merges with Optionor and such
entity is not otherwise an Optionor Affiliate under items (a) or (b) of this
Section 1, such acquiring entity after the acquisition or merger, shall not be
deemed to be an Optionor Affiliate if the acquiring entity, in connection with
such acquisition or merger, does not acquire any other material assets of any
Optionor Member or (d) a transferee of substantially all of the assets or stock of Optionor or any Optionor
Member, provided that if any entity acquires Optionor and such entity is not
otherwise an Optionor Affiliate under items (a) or (b) of
this Section 1, such
acquiring entity after the acquisition shall not be deemed to be an Optionor
Affiliate if the acquiring entity, in connection with such acquisition, does
not acquire any other material assets of any Optionor

	 	 	 
	 	-2-	
ELECTRONIC ARTS

[ROFO/Option Agreement]

 

 

Member. For purposes of
this Agreement, “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. For purposes of this
Option Agreement, a “Foreclosure Owner” shall be an entity or person that is a
“Permitted Mortgage/Lien Holder” (defined in Section 15 below), which becomes
the owner of all or a portion of the Project through a foreclosure by trustee’s
power of sale, judicially or otherwise, or as a purchaser at a foreclosure sale
or by deed in lieu (collectively, a “Foreclosure Event”). Optionee’s Right of
First Offer shall be on the terms and conditions set forth in this
Section 1.

          1.1   Procedure for Offer. Prior to entering into any agreement to sell the
Project, as a whole, or Phase I of the Project, individually, Optionor shall
notify Optionee by written notice (the “First Offer Notice”) when and if
Optionor desires to sell the Project or any permitted portion thereof, at any
time during the Lease Term as the same may be extended, to an Unaffiliated
Third Party, whether on the open market or pursuant to an existing offer to
purchase received by Optionor, in any manner. Pursuant to such First Offer
Notice, Optionor shall offer to sell the Project or the applicable permitted
portion thereof (the “Offered Property”) to Optionee and such First Offer
Notice shall be accompanied by a purchase and sale agreement in the form set
forth in Exhibit 2 attached hereto (the “Purchase Agreement”), which Purchase
Agreement shall: (A) set forth (i) the purchase price at which Optionor is
willing to sell the Offered Property to Optionee (the “ROFO Purchase Price”),
which ROFO Purchase Price shall be determined by Optionor, in Optionor’s sole
and absolute discretion and need not be determined by Optionor in good faith,
(ii) the required “Deposit” (as such term is defined in the Purchase
Agreement), which Deposit shall not exceed three percent (3%) of the ROFO
Purchase Price, (iii) the “Contingency Date” (as such term is defined in the
Purchase Agreement), which shall in no event be less than thirty (30) days
following the “Effective Date” (as such term is defined in the Purchase
Agreement) of the Purchase Agreement, and (iv) the Closing Date, which shall in
no event be less than sixty (60) days following the Effective Date of the
Purchase Agreement; and (B) be executed by Optionor. If the Offered Property
is comprised of Phase I, alone, the ROFO Purchase Price will include the value
of the interest in the Field, as a fee interest or as an exclusive easement
interest, as applicable, and the interest in the “Parking Easement” (defined in
Section 17, below).

          1.2   Procedure for Acceptance.

               1.2.1   Acceptance of Offer by Optionee. If Optionee wishes to exercise its
Right of First Offer in response to a First Offer Notice, then within ten (10)
business days following Optionee’s receipt of the First Offer Notice (the
“Optionee’s Notice Period”), Optionee shall notify Optionor in writing either
(i) of Optionee’s exercise of the Right of First Offer or (ii) of Optionee’s
interest in exercising the Right of First Offer, subject to a reservation of
right to further negotiate the ROFO Purchase Price and/or any other terms of
the First Offer Notice in its sole and absolute discretion (“Optionee’s
Exercise Notice”). If Optionee does not reserve the right in Optionee’s Exercise
Notice to further negotiate the ROFO Purchase Price and/or any other terms in
the First Offer Notice, Optionee shall deliver to the escrow holder named in
the Purchase Agreement (the “Escrow Holder) concurrent with Optionee’s delivery
of Optionee’s Exercise Notice, the Deposit required in the Purchase Agreement
and an executed copy of the Purchase Agreement. If, however, Optionee in
Optionee’s Exercise Notice reserves the right to further negotiate as provided
hereinabove, then Optionor shall negotiate with Optionee during a period not to
exceed fifteen (15) business days following Optionor’s receipt of Optionee’s

	 	 	 
	 	-3-	
ELECTRONIC ARTS

[ROFO/Option Agreement]

 

 

Exercise Notice (the “Negotiation Period”) the terms of the First Offer Notice,
including, if requested by Optionee, the ROFO Purchase Price. Optionor will
act in good faith as to scheduling and attending meetings with Optionee during
the Negotiation Period, provided that nothing herein shall be deemed in any
manner to require Optionor to agree to change any terms of Optionor’s First
Offer Notice or the Purchase Agreement, and any such changes may be made or
rejected by Optionor, in Optionor’s sole and absolute discretion, without any
requirement that Optionor do so acting in good faith. If, during the
Negotiation Period, Optionor and Optionee mutually agree upon a change in the
ROFO Purchase Price and/or such other terms in the First Officer Notice, then
prior to the expiration of the Negotiation Period, Optionor and Optionee shall
execute the Purchase Agreement and deliver it to the Escrow Holder reflecting
the agreed-upon changes, the “Effective Date” of the Purchase Agreement shall
be deemed the date on which the Purchase Agreement is delivered to the Escrow
Holder as fully executed by both parties, and Optionee shall concurrently
deliver to the Escrow Holder the Deposit required under the Purchase Agreement.
If Optionee delivers (a) Optionee’s Exercise Notice to Optionor, and (b) the
Purchase Agreement and the Deposit to the Escrow Holder, prior to the
expiration of Optionee’s Notice Period, without any request for further
negotiation, the “Effective Date” of the Purchase Agreement shall be deemed the
date on which the fully executed Purchase Agreement is delivered to the Escrow
Holder. Notwithstanding anything to the contrary contained herein, Optionee
may at any time prior to the expiration of the Negotiation Period exercise the
Right of First Offer by delivering the Purchase Agreement (with Optionor’s ROFO
Purchase Price) and the Deposit to Escrow Holder. Optionor’s sale of the
Offered Property to Optionee, and Optionee’s purchase thereof from Optionor,
shall be subject to the terms and conditions of the Purchase Agreement. If the
Purchase Agreement terminates in accordance with the terms thereof, then (1)
Optionee shall be entitled to withdraw Optionee’s Exercise Notice and receive
an immediate refund of the entire Deposit then held by the Escrow Holder, (2)
Optionee and Optionor shall be relieved from all obligations under the Purchase
Agreement, and (3) Optionor shall, subject to any of Optionee’s rights under
the Purchase Agreement, be free to thereafter sell the Offered Property to any
Unaffiliated Third Party on any terms elected by Optionor in its sole
discretion, but subject to the terms of Section 1.2.2 below. Further, if the
Purchase Agreement is terminated after the Contingency Date, solely as a result
of a default by Optionor, or pursuant to the terms of the Purchase Agreement as
a result of damage or destruction or condemnation, in addition to any remedies
of Optionee under the Purchase Agreement, Optionee’s Right of First Offer
hereunder shall be deemed to remain in full force and effect.

               1.2.2    Non-Acceptance of Offer by Optionee. If Optionee does not timely
accept the terms of the First Offer Notice, or if Optionor and Optionee do not
mutually agree upon the ROFO Purchase Price and/or such other terms in the
First Offer Notice by the expiration of the Negotiation Period, and/or the
Purchase Agreement terminates, in accordance
with the terms thereof, then Optionor shall be free to sell the Offered
Property, in the same configuration as offered to Optionee, to any Unaffiliated
Third Party thereafter on any terms elected by Optionor in its sole discretion,
provided that Optionor (i) enters into a fully executed purchase and sale
agreement for the Offered Property with an Unaffiliated Third Party within nine
(9) months following the expiration of Optionee’s Notice Period (or, if
Optionee requests the right to negotiate in Optionee’s Exercise Notice, the
expiration of the Negotiation Period), and (ii) consummates the sale of the
Offered Property, in the same configuration as offered to Optionee, with such
Unaffiliated Third Party as evidenced by recordation of a grant deed conveying
the Offered Property to such Unaffiliated Third Party (a “Closing” or “Close”)
within twelve (12) months following the expiration of Optionee’s Notice Period
(or, if Optionee

	 	 	 
	 	-4-	
ELECTRONIC ARTS

[ROFO/Option Agreement]

 

 

requests the right to negotiate in Optionee’s Exercise Notice,
the expiration of the Negotiation Period), provided Optionor shall not be
required to re-offer the Offered Property to Optionee if any applicable
purchase agreement entered into by Optionor within such period then remains
executory and cannot be terminated by Optionor within such period, without
resulting in the default of Optionor thereunder (the foregoing hereinafter
referred to as a “Qualified Transaction”). In the event Optionor fails to
enter into or Close a Qualified Transaction, following the expiration of the
time periods allowed for a Qualified Transaction, Optionee’s Right of First
Offer shall once again be applicable to the Offered Property.

               1.3   Term/Termination
of Right of First Offer. The term of the Right of
First Offer shall commence upon the full, unconditional, execution and delivery
of the Lease and shall terminate:

                  1.3.1   In full, upon termination of the Lease for any reason.

                  1.3.2   With respect to an Offered Property, upon Optionee’s failure to
timely exercise the Right of First Offer with respect to such Offered Property
as set forth in Section 1.2 above (including timely execution of the Purchase
Agreement and delivery of the Deposit), and, thereafter, the sale of such
Offered Property under a Qualified Transaction.

                  1.3.3   With respect to an Offered Property, after the timely exercise of
the Right of First Offer with respect to the Offered Property by Optionee with
a request to further negotiate, and the failure of Optionee and Optionor to
reach a mutual agreement to proceed with the purchase in accordance with the
First Offer Notice and Purchase Agreement or any amendment thereof prior to the
expiration of the Negotiation Period, and, thereafter, the sale of the Offered
Property under a Qualified Transaction.

                  1.3.4   In full, upon the purchase of Phase I pursuant to the exercise of
either of the Purchase Options in accordance with
Section 2 below.

                  1.3.5   In full, upon the purchase of the Offered Property by a Foreclosure
Owner.

          1.4   Quitclaim
by Optionee. Upon the termination of the Right of First
Offer pursuant to Section 1.3, above, in full, Optionee shall execute,
acknowledge and deliver to Optionor, within five (5) business days following
request therefor from Optionor, a standard and customary quitclaim deed relinquishing all rights of Optionee to purchase
the Offered Property pursuant to this Section 1.

     2.      Purchase
Options

		
	 	     2.1   Grant of Options.

                  2.1.1   First
Purchase Option. Optionor hereby grants to Optionee an option
to purchase all, but not less than all, of Phase I of the Project, together
with either a fee interest or an exclusive easement interest in the Field and a
reciprocal parking easement interest pursuant to Section 17 below
(collectively, the “Option Property”) as of the date of the fifth (5th)
anniversary of the Lease Commencement Date (the “First Purchase Option”), upon
the terms and conditions set forth more particularly in this
Section 2.

	 	 	 
	 	-5-	
ELECTRONIC ARTS

[ROFO/Option Agreement]

 

 

                  2.1.2   Second
Purchase Option. Optionor hereby grants to Optionee an option
to purchase the Option Property as of the date of the tenth
(10th) anniversary of the Lease Commencement Date (the
“Second Purchase Option”), upon the terms and
conditions set forth more particularly in this
Section 2. The date on which Optionee is required
under the Purchase Agreement to purchase of the Option Property
pursuant to either the First Purchase Option or the Second Purchase Option,
which shall not be later than the date of the fifth (5th) or tenth (10th)
anniversary, respectively, of the Lease, shall hereinafter be referred to as the “Option
Purchase Date”.

                  2.1.3   Optionor’s
Put Option. Notwithstanding anything to the contrary in
this Section 2.1, or elsewhere in this Option Agreement, in the event Optionee
elects to exercise either the First Purchase Option or the Second Purchase
Option, in either event, if Phase II of the Project remains undeveloped (i.e.,
the construction of Building 3 has not commenced) at the time Optionee delivers
Optionee’s “Interest Notice” (defined in
Section 2.2.1.1 below) Optionor shall
have the right, by delivering written notice of such election (“Optionor’s Put
Notice”) not later than fifteen (15) business days following Optionor’s receipt
of Optionee’s Interest Notice to “put” Phase II to Optionee (“Optionor’s Put
Option”), meaning, if Optionor timely delivers Optionor’s Put Notice, Optionee
may exercise the applicable Option Right in accordance with
Section 2.2.1 below
only with respect to both Phase I and Phase II of the Project, in which event,
for all purposes of this Option Agreement the “Option Property” shall be deemed
to include both Phase I and Phase II of the Project. If Optionor fails to
deliver Optionor’s Put Notice in the time permitted hereunder, Optionor shall
be deemed to have waived Optionor’s Put Option.

               2.2   Exercise
of Purchase Options/Determination of Option Purchase Price.
Provided that Optionee or Optionee Affiliate is the “Tenant” under the Lease,
Optionee or an Optionee Affiliate, as the case may be, may exercise either the
First Purchase Option or the Second Purchase Option, and the purchase price for
the Option Property in either event (the “Option Purchase Price”) shall be
equal to the “Fair Market Value” (as defined below) of the Option Property,
which shall be determined, at the applicable time, in accordance with the terms
of Section 2.2.2 below, or such other price as may be agreed to between the
parties, in accordance with the terms of Section 2.2.1, below. In the event
that the Option Property, is solely Phase I, together with the fee interest or
exclusive easement interest, as applicable, in the Field, and an interest in the Parking
Easement, the value of the applicable interest in the Field and the interest in
the Parking Easement shall be included in the determination of the Fair Market
Value of the Option Property.

                  2.2.1   Exercise.

                     2.2.1.1   In the event Optionee wishes to exercise either the First Purchase
Option or the Second Purchase Option, Optionee shall, not later than nine (9)
months prior to the applicable Option Purchase Date, deliver to Optionor a
written notice (“Interest Notice”) notifying Optionor of Optionee’s interest in
exercising the applicable Purchase Option and requesting that Optionor deliver
to Optionee the “Documents” identified in
Sections 4.1.3 and 4.1.4 of the
Purchase Agreement; provided, however, the Interest Notice shall not be deemed
defective or invalid if Optionee fails to request delivery of the Documents
therein. Optionor shall within fifteen (15) business days following receipt of
Optionee’s Interest Notice, (i) deliver the Documents to Optionee or make the
Documents readily available to Optionee for its review at the Project, and (ii)
if applicable, deliver Optionor’s Put Notice.

	 	 	 
	 	-6-	
ELECTRONIC ARTS

[ROFO/Option Agreement]

 

 

                     2.2.1.2   Optionee shall have until the date which is sixty (60) days
following receipt of all of the Documents (as evidenced by Optionee’s written
acknowledgment of receipt of the Documents, which acknowledgment shall be
deemed given if not received by Optionor or if Optionor does not receive
objection thereto within five (5) business days after Optionee’s receipt of
written request for such acknowledgment from Optionor) to deliver written
notice (“Optionee’s Option Exercise Notice”) to Optionor that Optionee is
interested in exercising the applicable Purchase Option, subject to the terms
of this Section 2. Optionee’s Option Exercise Notice shall state the proposed
Option Purchase Price at which Optionee is willing to purchase the Option
Property (“Optionee’s Price Proposal”).

                     2.2.1.3   Within ten (10) business days after receipt of Optionee’s Price
Proposal, Optionor shall deliver to Optionee written notice (the “Optionor’s
Price Proposal”) which notice shall state either (i) that Optionor agrees to
Optionee’s Price Proposal or (ii) that Optionor disagrees with Optionee’s Price
Proposal and, in such event, Optionor’s Price Proposal shall also set forth
Optionor’s proposed Option Purchase Price at which Optionor is willing to sell
the Option Property, and (iii) advise Optionee as to whether Optionor believes
a “GAAP Loss” (as defined below) exists and concurrently deliver Optionor’s
“Final GAAP Loss calculation” (including, if applicable, the allocation between
Phase I and Phase II) based on Optionee’s and/or Optionor’s Price Proposal,
pursuant to Section 3.3, below.

                     2.2.1.4   If Optionor’s Price Proposal states that Optionor agrees with
Optionee’s Price Proposal, whether or not Optionor states that there is a GAAP
Loss, then Optionor and Optionee shall execute the Purchase Agreement, which
Purchase Agreement shall not have a contingency period and shall reflect (i)
the proposed Option Purchase Price, as agreed to by the parties, and (ii) the
Closing Date, which shall not be later than the applicable Option Purchase
Date, and deliver it to the Escrow Holder and Optionee shall deliver the
Deposit to Escrow Holder. Upon Optionor’s and Optionee’s execution and
delivery of the Purchase Agreement, and Optionee’s delivery of the Deposit no
further act on the part of either party shall be necessary to form a binding contract for the purchase and sale of the
Option Property and the transaction shall proceed and close in accordance with
the terms of the Purchase Agreement.

                     2.2.1.5   If Optionor’s Price Proposal states that Optionor disagrees with
Optionee’s Price Proposal, whether or not Optionor states that there is a GAAP
Loss, Optionee shall, within ten (10) business days after receipt of Optionor’s
Price Proposal, deliver written notice to Optionor (“Optionee’s Response
Notice”) stating either (i) that Optionee irrevocably exercises the applicable
Purchase Option and Optionee agrees to purchase the Option Property at the
Option Purchase Price set forth in Optionor’s Price Proposal, in which event
(A) Optionee and Optionor shall, within five (5) business days after Optionor’s
receipt of Optionee’s Response Notice, modify and execute the Purchase
Agreement to reflect the agreed upon Option Purchase Price and deliver the new
Purchase Agreement to the Escrow Holder, (B) Optionee shall, concurrent with
delivery of the Purchase Agreement, deliver the Deposit to the Escrow Holder,
and (C) the transaction shall proceed and close in accordance with the terms of
the Purchase Agreement, as modified; or (ii) that Optionee irrevocably
exercises the applicable Purchase Option, subject only to a determination of
the applicable Option Purchase Price in accordance with the arbitration
procedure set forth in Section 2.2.2 below, in which event Optionor and
Optionee shall, within five (5) business days after Optionor’s receipt of
Optionee’s Response Notice, execute the Purchase Agreement, subject to final
determination of, and modification of the Purchase Agreement to reflect the
Option Purchase Price as determined pursuant to
Section 2.2.2 below, and
deliver it to the Escrow Holder and concurrent with the

	 	 	 
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delivery of the
Purchase Agreement, Optionee shall deliver the Deposit to Escrow Holder. Upon
Optionor’s and Optionee’s execution and delivery of the Purchase Agreement and
Optionee’s delivery of the Deposit, no further act on the part of either party
shall be necessary to form a binding contract for the purchase and sale of the
Option Property and the transaction shall proceed and close in accordance with
the terms of the Purchase Agreement, subject only to determination of the
applicable Option Purchase Price as set forth in Section 2.2.2 below, and
modification of the Purchase Agreement to reflect such Option Purchase Price or
(iii) that Optionee elects to withdraw Optionee’s Option Exercise Notice, in
which event (A) the applicable Purchase Option shall be deemed terminated and
of no further force and effect, and (B) Optionor shall be entitled thereafter
to sell the Option Property to any party on any terms determined by Optionor
in its sole discretion, subject only to (1) Optionee’s rights, if any, under
Section 1 above, and (2) the Second Purchase Option if the terminated Purchase
Option was the First Purchase Option.

                  2.2.2   Determination of Fair Market Value for the Project. In the event
Optionee elects in Optionee’s Response Notice to exercise the applicable
Purchase Option, subject to arbitration of the Option Purchase Price in
accordance with this Section 2.2.2, the following terms shall apply:

                     2.2.2.1   Optionor and Optionee shall each appoint one unrelated neutral
arbitrator who shall be certified as an MAI appraiser or as an ASA appraiser
and shall have had at least ten (10) years experience within the previous
fifteen (15) years as a real estate appraiser of office buildings in the County
of Los Angeles area, with working knowledge of current market conditions and
practices. For purposes hereof, an “MAI” appraiser means an individual who
holds an MAI designation conferred by, and is an independent member of, the
American Institute of Real Estate Appraisers (or its successor organization, or
in the event there is no successor organization, the organization and
designation most similar), and an “ASA” appraiser means an individual who holds the Senior Member designation
conferred by, and is an independent member of, the American Society of
Appraisers (or its successor organization, or, in the event there is no
successor organization, the organization and designation most similar). The
determination of the arbitrators shall be limited solely to the issue area of
whether the Option Purchase Price in Optionor’s Price Proposal or in Optionee’s
Price Proposal, is the closest to the actual Fair Market Value of the Option
Property determined by the arbitrators, taking into account the requirements of
Section 2.3, below. Each such arbitrator shall be appointed within fifteen
(15) days after Optionor’s receipt of Optionee’s Response Notice.

                     2.2.2.2   The two arbitrators so appointed shall within ten (10) days of the
date of the appointment of the last appointed arbitrator agree upon and appoint
a third arbitrator who shall have the same qualification as set forth in
Section 2.2.2.1 above.

                     2.2.2.3   The three arbitrators shall within thirty (30) days of the
appointment of the third arbitrator, (a) reach a decision as to the Fair Market
Value of the Project and whether the proposed Option Purchase Price in
Optionor’s Price Proposal or in Optionee’s Price Proposal is the closest to the
Fair Market Value of the Project as determined by the arbitrators, and (b)
simultaneously publish a ruling (the “Ruling”) indicating whether the proposed
Option Purchase Price in Optionor’s Price Proposal or in Optionee’s Price
Proposal is the closest to the Fair Market Value of the Project as determined
by the arbitrators. Following the Ruling, the proposed Option Purchase Price
selected by the arbitrators as being closest to the Fair Market Value of the
Entire Project as determined by the arbitrators shall be deemed the

	 	 	 
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Option
Purchase Price under the Purchase Agreement, and if necessary, the parties
shall enter into an amendment to the Purchase Agreement reflecting the same.

                     2.2.2.4   The decision of the majority of the three arbitrators shall be
binding upon Optionor and Optionee.

                     2.2.2.5   If either Optionor or Optionee fails to appoint an arbitrator
within fifteen (15) days after the date Optionor receives Optionee’s Response
Notice, the arbitrator appointed by one of them shall reach a decision, notify
Optionor and Optionee thereof, and such arbitrator’s decision shall be binding
upon Optionor and Optionee.

                     2.2.2.6   If the two arbitrators fail to agree upon and appoint a third
arbitrator, or both parties fail to appoint an arbitrator, then the appointment
of the third arbitrator or any arbitrator shall be dismissed and the parties
shall submit a request to the American Institute of Real Estate Appraisers, or
successor organization, to provide a list of five (5) qualified appraisers.
Beginning with the appraiser appointed by Optionor, or Optionor, if no
appraiser has been appointed, each appraiser or each party, as applicable,
shall, within three (3) business days, strike the name of one (1) of the five
(5) appraisers on such list, and the appraiser remaining after each appraiser
or party, as applicable, has stricken two (2) names shall be the third
appraiser.

                     2.2.2.7   The cost of the third appraiser shall be paid by Optionor and
Optionee equally and they shall each pay their appointed appraiser.

                     2.2.2.8   If, for any reason, the arbitrators have not issued the Ruling by
the applicable Option Purchase Date, the purchase transaction shall proceed
based on an Option Purchase Price equal to the average of Optionor’s and
Optionee’s proposed Option Purchase Prices (the “Average Option Purchase
Price”) and Optionee shall deliver such amount at closing, provided, the
difference between the Average Option Purchase Price and Optionor’s proposed
Option Purchase Price shall be held in Escrow by the Escrow Holder until a
final determination of the Option Purchase Price is determined by the
arbitrators. If the Ruling results in Optionee’s Proposed Purchase Price being
the Option Purchase Price, the amount held in escrow, including any interest
earned thereon, shall be returned to Optionee, and Optionor shall, within ten
(10) business days following receipt of the Ruling, reimburse Optionee for the
difference between the Average Option Price and Optionee’s Option Purchase
Price. If, on the other hand, the Ruling results in Optionor’s Proposed
Purchase Price being the Option Purchase Price, the amount held in escrow,
including any interest earned thereon, shall be disbursed to Optionor.

               2.3   Fair
Market Value. The “Fair Market Value” of the Option Property
shall be the amount that an Unaffiliated Third Party bona-fide buyer would pay
to purchase, and a bona-fide seller would accept to sell, the Option Property
based on the following assumptions: (i) the determination of the Fair Market
Value of the Option Property shall be made as of the applicable Option Purchase
Date; (ii) the sales transaction is between arms length unrelated parties,
independently negotiating and represented; (iii) that if the Option Property is
only Phase I, all leasable space in the Option Property is 100% leased, and if
the Option Property is Phase I and Phase II, Phase I will be deemed to be 100%
leased and the actual vacancy of Building 3 will be considered; (iv) that no
space in the Option Property leased by Optionee is subleased; (v) that there
shall be deductions for outstanding tenant improvement allowances or

	 	 	 
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leasing
commissions, and Optionor shall pay such costs under the Purchase Agreement;
(vi) that there is a 50-50 probability (and corresponding value) that all
existing leases in the Option Property, including the Lease, shall be renewed
for a term of five (5) years at the end of the then term of such leases,
notwithstanding their actual terms; (vii) that Optionee is a “credit tenant”
with a rating under Moody’s Rating Guidelines of Ba1; (viii) that credit should
be given for any tenant lease that is executed and delivered before the Option
Purchase Date; (ix) the fact that Optionee is an “owner occupier” will
specifically not be taken into account, and (x) the physical condition and
location of the Option Property and the actual terms and conditions of the
Purchase Agreement shall all be taken into account.

               2.4   Term of Options. The terms of the First Purchase Option and Second
Purchase Option shall commence upon the full, unconditional execution and
delivery of the Lease and shall terminate upon any of the following.

                  2.4.1   The termination of the Lease for any reason.

                  2.4.2   The sale of the Option Property to Unaffiliated Third Party(s),
subject to the terms hereof.

                  2.4.3   With respect to the First Purchase Option, Optionee’s failure to or
election not to exercise such First Purchase Option, in accordance with the
provisions of Section 2.2.1 above.

                  2.4.4   With respect to the Second Purchase Option, Optionee’s failure to
(or election not to) exercise such Second Purchase Option in accordance with
the provisions of Section 2.2.1 above.

               2.5   Quitclaim by Optionee. Upon the termination of a Purchase Option
pursuant to Section 2.4 above, Optionee shall execute, acknowledge and deliver
to Optionor, within five (5) business days following request therefor from
Optionor, a standard and customary quitclaim deed relinquishing all rights of
Optionee to purchase the Option Property under the applicable terminated
Purchase Option.

	 	3.	 	Limitation on Rights.

               3.1   Rights Personal. The Right of First Offer, First Purchase Option and
Second Purchase Option granted herein are personal to Optionee and any
“Optionee Affiliate” (as defined below) and may be exercised only by Optionee
or Optionee’s Affiliate and may not be exercised by any other assignee or
transferee of any of Optionee’s interest herein or in the Lease. For purposes
herein, an “Optionee Affiliate” shall mean any of the following: (a) an entity
which is controlled by, controls or is under common control with Optionee (an
“Optionee Affiliated Entity”) or an Optionee Affiliated Entity ; (b) an entity
which merges with or acquires or is acquired by Optionee or a parent or an
Optionee Affiliated Entity, or a subsidiary of Optionee’s parent or an Optionee
Affiliated Entity, (c) a transferee of all or substantially all of the assets
of Optionee or an Optionee Affiliated Entity or an entity which is controlled
by, controls or is under common control with Optionee, or an Optionee
Affiliated Entity, or (d) a transfer, by operation of law or otherwise, in
connection with the merger, consolidation or other reorganization of Optionee
or an Optionee Affiliated Entity or of an entity which is controlled by,
controls or is under common control with Optionee an Optionee Affiliated
Entity, along with

	 	 	 
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any other entity which will qualify as an “affiliate” under
California General Corporations Code Sections 150 and 5031.

     3.2   No Double Escrow. In the event Optionee exercises any right to
acquire the Project or any permitted portion thereof, as provided under this
Option Agreement, Optionee shall only take title to the Project, or the
applicable permitted portion thereof, in Optionee’s or an Optionee Affiliate’s
name and shall not concurrently with the closing of the applicable purchase
transaction, or within one (1) year following the Closing, directly or
indirectly transfer all or a portion of the ownership interest in the Project
or the applicable permitted portion thereof, directly or indirectly to any
party other than an Optionee Affiliate, and Optionee shall not acquire all or
any permitted portion of the Project pursuant to a First Offer Right or
Purchase Option, and, at the time of acquisition, have the intent to transfer
the Project, either directly or indirectly, to any party other than an Optionee
Affiliate. Optionor shall be entitled to seek damages resulting from a breach
of the foregoing covenant. Notwithstanding anything in the foregoing to the
contrary, the provisions of this Section 3.2 shall not apply to a (i) transfer
by Optionee to an Optionee Affiliate, or vice versa, or (ii) to a transfer with
respect to a “synthetic lease” or other similar financing transaction where the
transfer of real estate is made solely in trust for financial reporting
purposes and control of the ownership of the Project is not directly or
indirectly transferred, or (iii) any loan, lien or mortgage placed on the
Project.

     3.3   No GAAP Loss on Purchase Options.

                  3.3.1   GAAP Loss. Notwithstanding anything else contained in this
Agreement, in no event shall Optionor be required to sell the Option Property
to Optionee pursuant to a Purchase Option if such transaction will result in a
“GAAP Loss” (as defined below) to Optionor. In the event that the Option
Purchase Price would cause Optionor to have a GAAP Loss, Optionor shall have
the right, in Optionor’s sole discretion, to terminate the applicable Purchase
Option. A “GAAP Loss” shall mean that the net proceeds (after payment of all
closing costs and other expenses) that would be received by Optionor from a
sale of the Option Property to Optionee for the Option Purchase Price are less
than the historical cost basis of Optionor in the Option Property, as
determined in accordance with generally accepted accounting principles,
provided that “historical cost” will include depreciation/amortization taken up
to the date of the sale (such historical cost basis to be known as the “GAAP
Basis”). In the event the Option Property is Phase I only, the determination
of GAAP Loss will take into consideration an equitable allocation of
acquisition and operational costs and expenses between Phase I and Phase II
(the “Phase I/Phase II Allocation”). Optionor agrees that not later than
December 31, 2004, Optionor shall deliver to Optionee, Optionor’s preliminary
GAAP Basis analysis, as of a date no earlier than July 31, 2003, together with
reasonable supporting evidence with respect thereto (the “Preliminary GAAP
Notice”). Optionee shall then have a period of one hundred eighty (180) days
following receipt of the Preliminary GAAP Notice, upon not less than fifteen
(15) business days prior written notice, to commence an audit of Optionor’s
books and records for the Project conducted by an independent certified
accountant licensed in the State California, selected by Optionee, and that
shall meet the same qualification required of the arbitrators in Section 3.3.2
below, for the purpose of verifying the calculation of the GAAP Basis set forth
in Optionor’s Preliminary GAAP Notice. Optionor shall make available to the
auditor, in a location in Los Angeles County, California, within fifteen (15)
business days following selection of the auditor, all books and records of
Optionor for the Project which are reasonably necessary for purposes of
performing such audit, as reasonably determined by the auditor. The preceding
audit shall be a one-time right, and Optionor shall not be required to

	 	 	 
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provide any further GAAP Basis notice
calculation to Optionee thereafter, unless and until Optionee delivers
Optionee’s Price Proposal as hereinafter set forth. The cost of Optionee’s
audit with respect to Optionor’s Preliminary GAAP Notice shall be borne solely
by Optionee. Further, if at the time Optionee delivers Optionee’s Price
Proposal, or at the time Optionor delivers Optionor’s Price Proposal, Optionor
believes that a GAAP Loss will result based on one of the price proposals,
Optionor shall notify Optionee in Optionor’s Price Proposal that Optionee’s or
Optionor’s Price Proposal will result in a GAAP Loss, and provide reasonable
supporting evidence with respect thereto (the “Final GAAP Loss Calculation”),
in which event unless Optionee elects within ten (10) business days following
receipt of Optionor’s Price Proposal to accept the greater of the Fair Market
Value of the Option Property as determined under Section 2, above, or the “GAAP
Loss Number” (defined below), and exercise the applicable Purchase Option
pursuant to Section 2.2.1.5(i) above, the applicable Purchase Option shall be
of no further force and effect, provided Optionee shall have the right to
notify Optionor in writing (“Optionee’s GAAP Dispute Notice”), within ten (10)
business days following receipt of Optionor’s Price Proposal claiming a GAAP
Loss, that Optionee disputes Optionor’s determination and/or supporting
evidence, including any Phase I/Phase II Allocation and provide to Optionor,
Optionee’s determination of the Final GAAP Loss Calculation. In such event,
Optionor and Optionee shall meet and confer in good faith within and during a
period not to exceed ten (10) business days following receipt by Optionor of
Optionee’s GAAP Dispute Notice in an attempt to resolve any such dispute (the
“Dispute Resolution Period”).

               3.3.2 Resolution of Dispute. If such dispute cannot be resolved within
the Dispute Resolution Period, the matter shall be submitted to arbitration in
accordance with the following terms.

                    3.3.2.1 Optionor and Optionee shall each appoint one arbitrator who shall
be a certified public accountant from a nationally recognized accounting firm
and who shall have recognized experience of not less than ten (10) years in
financial analysis and real estate accounting principals with respect to real
estate construction and development for major first class office projects of
the nature of the Project. The determination of the arbitrators shall be
limited solely to the issues of (i) whether or not a GAAP Loss exists, taking
into consideration, if applicable, any Phase I/Phase II Allocation and all of
other factors of this Section 3.3, and (ii) if a GAAP Loss exists, the amount
necessary to be paid as the purchase price for the Option Property to avoid a
GAAP Loss (the “GAAP Loss Number).” Each such arbitrator shall be appointed
within five (5) business days after the expiration of the Dispute Resolution
Period.

               3.3.3 The two arbitrators so appointed shall within ten (10) days of the
date of the appointment of the last appointed arbitrator agree upon and appoint
a third arbitrator who shall have the same qualification as set forth in
Section 3.3.1 above.

               3.3.4 Within five (5) business days following the appointment of the last
arbitrator, Optionor and Optionee shall each submit to the arbitrators their
respective determinations as to whether a GAAP Loss exists, and if applicable,
their respective estimations of the GAAP Loss Number.

               3.3.5 The three arbitrators shall within thirty (30) days of the
appointment of the third arbitrator, reach a decision and publish their ruling
as to whether or not a GAAP Loss exists, and if so, whether Optionor’s
estimated GAAP Loss Number or Optionee’s

	 	 	 
	 	 	
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	 	-12-	
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GAAP Loss Number is closest to the
actual GAAP Loss Number as determined by the Arbitrators. The closest GAAP
Loss Number to the actual GAAP Loss Number as determined by the Arbitrators
shall then be the GAAP Loss Number for all purposes herein.

               3.3.6 The decision of the majority of the three arbitrators shall be
binding upon Optionor and Optionee.

               3.3.7 If either Optionor or Optionee fails to appoint an arbitrator within
five (5) business days after the expiration of the Dispute Resolution Period,
the arbitrator appointed by one of them shall reach a decision, notify Optionor
and Optionee thereof, and such arbitrator’s decision shall be binding upon
Optionor and Optionee.

               3.3.8 If the two arbitrators fail to agree upon and appoint a third
arbitrator, or both parties fail to appoint an arbitrator, then the appointment
of the third arbitrator or any arbitrator shall be dismissed and the parties
shall submit a request to the American Arbitration Association to provide a
list of five (5) qualified arbitrators. Beginning with the arbitrator
appointed by Playa, or Playa, if no arbitrator has been appointed, each
arbitrator or each party, as applicable, shall, within three (3) business days,
strike the name of one (1) of the five (5) arbitrators on such list, and the
arbitrator remaining after each arbitrator or party, as applicable, has
stricken two (2) names shall be the third arbitrator.]

               3.3.9 The cost of the third arbitrator shall be paid by Optionor to
Optionee equally.

          After the arbitrators have determined if a GAAP Loss exists, the parties
shall proceed in accordance with the provisions of
Sections 2.2.1.3 through
2.2.1.5 and Section 2.2.2 above to determine the Fair Market Value of the
Option Property. Thereafter, if Optionee has elected to accept the greater of
(i) Fair Market Value of the Option Property as determined under Section 2,
above or (ii) the GAAP Loss Number as determined by
Section 3.3, above,
pursuant to Section 3.3.1 above, Optionee shall pay the greater of (i) Fair
Market Value of the Option Property as determined under Section 2, above or
(ii) the GAAP Loss Number as determined by Section 3.3 above. If the
arbitrators’ decision has not been delivered prior to the scheduled Closing
Date for the applicable Purchase Option, the Closing, if it is to occur, based
on the arbitrators’ decision shall be delayed until the date which is ten (10)
days following delivery of the arbitrators’ decision.

     4.     Notices/Delivery. All notices or other communications required or
permitted hereunder shall be in writing and shall be personally delivered
(including by means of professional messenger service) by nationally recognized
overnight courier service, messenger service or registered or certified mail,
postage prepaid, return receipt requested. All written communications in
accordance with the foregoing shall be deemed given (i) three (3) days after
the date it is posted if sent by mail, or (ii) the date the overnight courier
or personal delivery is made, or refused by the addressee, at the address set
forth below, if delivered by 5:00 P.M., Los Angeles Time on a business day, the
next business day if delivered after 5:00 P.M. of a business day or
non-business day. Notices of change of address shall be given by written
notice as described in this Section 4.

     Notice Address for Optionor:

	 	 	 
	 	 	
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	 	 	 	 	Playa Vista – Water’s Edge, LLC

c/o Equity Office Properties

550 South Hope Street, Suite 2200

Los Angeles, California 90071

Attention: Regional Vice President
	 	 	 	 	 
	 	 	 	 	and
	 	 	 	 	 
	 	 	 	 	c/o Maguire Partners

555 West Fifth Street, Suite 500

Los Angeles, California 90013

Attention: Partner – Leasing
	 	 	 	 	 
	 	 	
With copies to:	 	 
	 	 	 	 	 
	 	 	 	 	Equity Office

2 North Riverside Plaza

Suite 2100

Chicago, Illinois 60606

Attention: Chief Legal 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.
	 	 	 	 	 
	 	 	
Notice Address for Optionee:	 	 
	 	 	 	 	 
	 	 	 	 	at Optionee’s location at the Project

Attention: Head of Facilities and COO EALA
	 	 	 	 	 
	 	 	 	 	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

	 	 	 
	 	 	
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     5.     Optionor’s
Representations and Warranties. Optionor hereby represents
and warrants to Optionee the following matters:

          5.1 Optionor has the legal power, right and authority to enter into this
Option Agreement, the Purchase Agreement and the instruments referenced herein
and therein and to consummate the transactions contemplated hereby and thereby.

          5.2 All requisite action (corporate, trust, partnership or otherwise) has
been taken by Optionor in connection with entering into this Option Agreement,
the Purchase Agreement, and the instruments referenced herein and therein and
the consummation of the transactions contemplated hereby and thereby.

          5.3 Neither the execution and delivery of this Option Agreement, the
Purchase Agreement and the documents referenced herein and therein, nor the
consummation of the transactions contemplated herein and therein, nor the
compliance with the terms of this Option Agreement, the Purchase Agreement and
the documents referenced herein and therein conflict with or result in a
material breach of any terms, conditions or provisions of, or constitute a
default under, any judicial or administrative order or decree, any note or
other evidence of an indebtedness, any contract, deed of trust, loan,
partnership agreement or other agreement to which Optionor is a party or
affecting the Project or by which Optionor may be bound.

          5.4 There is no pending or contemplated action, suit, arbitration, claim
or proceeding, at law or in equity, affecting all or any portion of the Project
or in which Optionor is or will be a party by reason of Optionor’s ownership of
the Project.

          5.5 No attachments, execution proceedings, assignments for the benefit of
creditors, insolvency, bankruptcy, reorganization or other proceedings are
pending or threatened against Optionor.

          5.6 No consent of any partner, shareholder, creditor, investor, judicial
or administrative body, authority or other party is required that has not been
obtained. The individuals executing this Option Agreement and the instruments
referenced herein on behalf of Optionor and the partners, members, officers or
trustees of Optionor, if any, have the legal power, right, and actual authority
to bind Optionor to the terms and conditions hereof and thereof. This Option
Agreement and all documents required hereby to be executed by Optionor are and
shall be valid, legally binding obligations of and enforceable against Optionor
in accordance with their terms, subject only to applicable bankruptcy,
insolvency, reorganization, moratorium laws or similar laws or equitable
principals affecting or limiting the rights of contracting parties generally.

     6.     Optionee’s
Representations and Warranties. Optionee hereby represents
and warrants to Optionor the following matters:

          6.1 Optionee has the legal power, right and authority to enter into this
Option Agreement and the instruments referenced herein and therein and to
consummate the transactions contemplated hereby and thereby.

          6.2 All requisite action (corporate, trust, partnership or otherwise) has
been taken by Optionee in connection with entering into this Option Agreement,
and the instruments

	 	 	 
	 	 	
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	 	-15-	
[ROFO/Option Agreement]

 

 

referenced herein and therein and the consummation of the
transactions contemplated hereby and thereby.

          6.3 Neither the execution and delivery of this Option Agreement and the
documents referenced herein and therein, nor the consummation of the
transactions contemplated herein and therein, nor the compliance with the terms
of this Option Agreement and the documents referenced herein and therein
conflict with or result in a material breach of any terms, conditions or
provisions of, or constitute a default under, any judicial or administrative
order or decree, any note or other evidence of an indebtedness, any contract,
deed of trust, loan, partnership agreement or other agreement to which Optionee
is a party or by which Optionee may be bound.

          6.4 No attachments, execution proceedings, assignments for the benefit of
creditors, insolvency, bankruptcy, reorganization or other proceedings are
pending or threatened against Optionee.

          6.5 No consent of any partner, shareholder, creditor, investor, judicial
or administrative body, authority or other party is required that has not been
obtained. The individuals executing this Option Agreement and the instruments
referenced herein on behalf of Optionee and the partners, members, officers or
trustees of Optionee, if any, have the legal power, right, and actual authority
to bind Optionee to the terms and conditions hereof and
thereof. This Option Agreement and all documents required hereby to be
executed by Optionee are and shall be valid, legally binding obligations of and
enforceable against Optionee in accordance with their terms, subject only to
applicable bankruptcy, insolvency, reorganization, moratorium laws or similar
laws or equitable principals affecting or limiting the rights of contracting
parties generally.

     7.     Entire
Agreement. This instrument, along with the attached exhibits,
contains the entire agreement between the parties relating to the First
Purchase Option, Second Purchase Option and the Right of First Offer herein
granted and the purchase and sale of the Project or portions thereof pursuant
hereto (other than any amendments to the Purchase Agreement entered into
pursuant to the terms hereof). Any oral representations of modifications
concerning this instrument or its exhibits shall be of no force or effect,
excepting a subsequent modification in writing, signed by the party to be
charged. This Option Agreement supersedes any prior oral or written agreement
between the parties relating to the First Purchase Option, Second Purchase
Option and Right of First Offer herein granted.

     8.     Governing
Law. This Option Agreement shall be construed and enforced
in accordance with the laws of the State of California. IN ANY ACTION OR
PROCEEDING ARISING HEREFROM, OPTIONOR AND OPTIONEE HEREBY CONSENT TO (I) THE
JURISDICTION OF ANY COMPETENT COURT WITHIN THE COUNTY OF LOS ANGELES, 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 OPTION AGREEMENT.

	 	 	 
	 	 	
ELECTRONIC ARTS
	 	-16-	
[ROFO/Option Agreement]

 

 

     9.     Successors and Assigns. This Option Agreement shall bind and inure to
the benefit of the respective heirs, personal representatives, successors and
assigns of the parties hereto. Optionee may not assign this Option Agreement,
or any rights hereunder, at any time, except to an Optionee Affiliate, without
the consent of Optionor, in Optionor’s sole judgment and discretion.
Notwithstanding any assignment permitted hereunder, Optionee shall not be
relieved of any of Optionee’s obligations hereunder unless such assignee
assumes all of Optionee’s obligations hereunder.

     10.     Attorneys’ Fees, Costs. If either party (a) files any action or
brings any proceeding against the other arising out of this Option Agreement,
or (b) is made a party to any action or proceeding brought by the Escrow
Holder, whether or not such action or proceeding is prosecuted to judgment
(“Action”), then as between Optionor and Optionee (1) the unsuccessful party
therein shall pay all costs incurred by the prevailing party therein, including
reasonable attorneys’ fees and costs, court costs and reimbursements for any
other expenses incurred in connection therewith, and (2) as a separate right,
severable from any other rights set forth in this Option Agreement, the
prevailing party therein shall be entitled to recover its reasonable attorneys’
fees and costs incurred in enforcing any judgment against the unsuccessful
party therein, which right to recover post-judgment attorneys’ fees and costs
shall be included in any such judgment. The right to recover post-judgment
attorneys’ fees and costs shall (i) not be deemed waived if not included in any
judgment, (ii) survive the final judgment in any Action, and (iii) not be
deemed merged into such judgment. The rights and obligations of the parties
under this Section 10 shall survive the termination of this Option Agreement.

     11.     Time of Essence. Time is of the essence of this Option Agreement.

     12.     No Joint Venture. Nothing in this Option Agreement, including the
exhibits, or in the performance of this Option Agreement, shall create or be
deemed to create a partnership or joint venture relationship between the
parties hereto.

     13.     Severability. Should any part of this Option Agreement for any reason
be declared invalid by a court or arbitrator of competent jurisdiction, such
decision shall not affect the validity of any remaining portion, which shall
remain in full force and effect as if this Option Agreement was entered into
without including any such part, or portions which may, for any reason, be
hereafter declared invalid.

     14.     Memorandum. Concurrently with the execution hereof, Optionor and
Optionee shall execute and acknowledge a memorandum of this Option Agreement in
the form attached to the Lease as Exhibit J (the
“Memorandum”). Within five
(5) business days following the date of the full execution and delivery of this
Option Agreement and the Lease, Optionor shall cause the Memorandum to be
recorded (at the sole cost and expense of Optionee) in the Official Records of
Los Angeles County, California.

     15.     Subordination/Recognition Agreement. Subject to Optionee’s receipt of
an appropriate non-disturbance agreement (which non-disturbance shall not
recognize this Option Agreement as surviving a Foreclosure Event) as set forth
below, this Option Agreement shall be subject and subordinate to the lien of
any mortgages or trust deeds, now or hereafter in force against the Project, in
favor of any Unaffiliated Third Party, if any, and/or 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, provided that the loan evidenced by

	 	 	 
	 	 	
ELECTRONIC ARTS
	 	-17-	
[ROFO/Option Agreement]

 

 

the mortgage or trust deed is only
made with respect to and is only secured by a trust deed on the Project.
Optionee, shall within fifteen (15) business days following receipt of the
request of Optionor, execute a commercially reasonable subordination agreement
relating to the rights of Optionor under this Option Agreement, in favor of any
mortgage holders or lienholders of Optionor who are Unaffiliated Third Parties
(“Permitted Mortgage/Lien Holders”) who later come into existence at any time
prior to the expiration of earlier termination of this Option Agreement,
provided that the loan evidenced by the mortgage or trust deed is only made
with respect to and is only secured by a trust deed on the Project, and
provided, further, that such subordination agreement is in accordance with the
provisions of this Section 15. Optionor acknowledges and agrees that

Optionee’s receipt of a commercially reasonable non-disturbance agreement
(“Non-Disturbance Agreement”) in favor of Optionee from any Permitted
Mortgage/Lien Holder who later comes into existence at any time prior to the
expiration of this Option Agreement shall be in consideration of, and a
condition precedent to, Optionee’s agreement to be bound by the provisions of
this Section 15 and any other provisions hereunder for the benefit of a
Foreclosure Owner. Optionor agrees to use commercially reasonable efforts to
obtain the agreement of any Permitted Mortgage/Lien Holders to provide notice
to Optionee of any monetary default by Optionor and to permit Optionee to make
payments directly to any such Permitted Mortgage/Lien Holder, in the event of
Optionor’s failure to make required payments, and provided Optionee shall first
notify Optionor prior to making any such payment and provide Optionor with not
less than the greater of (i) ten (10) business days following Optionor’s
receipt of Optionee’s notice, and (ii) the cure period permitted under the
applicable mortgage or lien to cure such default.

16.     Estoppel. Within ten (10) business days following a request in
writing by Optionor, Optionee shall execute, acknowledge and deliver to
Optionor an estoppel certificate indicating therein to what extent Optionee’s
Right of First Offer or either Purchase Option may exist at that time or that
any or all of such rights have been waived or terminated, as applicable, and
shall also contain any other information reasonably requested by Optionor or
any mortgagee or transferee of Optionor’s interest in the Project. Any such
certificate may be relied upon by any prospective mortgagee or transferee of
all or any portion of the Project. Optionee shall execute and deliver whatever
other commercially reasonable instruments may be reasonably required for such
purposes. Failure of Optionee to execute, acknowledge and deliver such
estoppel certificate or other instruments within five (5) business days after
Optionor’s second request (which shall in no event be deemed delivered prior to
the expiration of the initial 10 business day period) shall constitute an
acknowledgment by Optionee that statements included in the estoppel certificate
are true and correct, without exception.

     17.     Reciprocal
Parking Agreement/Lot Line Adjustment. In the event that
either (i) Optionee exercises the Right of First Offer or either the First
Purchase Option or Second Purchase Option with respect to Phase I of the
Project only, in accordance with the terms of this Option Agreement, or (ii)
Optionor sells Phase II of the Project, as and when permitted under this Option
Agreement, separately from Phase I, to any party other than Optionee, Optionor
shall, at its election, either (A) obtain and record a lot line adjustment such
that the legal parcel comprising Phase I of the Project, as it currently exists
of the date of this Option Agreement, (i.e., exclusive of the Field) will be
adjusted to cause the portion of the Real Property on which the Field is
located to be included (as a fee interest or air rights parcel) as part of the
Real Property comprising Phase I of the Project (the “Lot Line Adjustment”), or
(B) alternatively, in the event of the purchase of Phase I by Optionee, enter
into with Optionee, or in the event of a

	 	 	 
	 	 	
ELECTRONIC ARTS
	 	-18-	
[ROFO/Option Agreement]

 

 

sale of Phase II separately to a third
party, cause to be recorded, an exclusive easement, for the benefit of the
owner of Phase I, for the use of the Field (the “Field Easement”). The Field
Easement shall be in a commercially reasonable form acceptable to both Optionor
and Optionee and shall require, at a minimum, that Optionee shall have
exclusive use of the Field, and shall maintain, and assume all costs, including
an equitable portion of real estate taxes and assessments, for maintenance of,
the Field, and that Optionee shall indemnify Optionor or any other owner of
Phase II, from all liability resulting from Optionee’s exercise of the rights
under the easement and/or its use of the Field. Further, if Building 3 and its
related improvements on Phase II have not been completed, the Field Easement
shall recognize the fact that Optionee or any other owner of Phase I will not
have the use of the Field during the construction of Building 3 and its related
improvements, for the period of time, and subject to the terms and conditions
with respect thereto, as set forth in the Lease. In addition, in the event of
the purchase of Phase I by Optionee, Optionee and Optionor shall enter into, or
in the event of a sale of Phase II separately to a third party, Optionor shall
cause to be recorded, a reciprocal parking easement for parking in the parking
facilities located beneath the Field, and ingress and egress with respect
thereto (the “Parking Easement”), which easement shall provide for the number
of parking spaces to be allocated to the owner of Phase I and the number of
parking spaces to be allocated to the owner of Phase II as required under the
Lease and shall be in a commercially reasonable form acceptable to both
Optionor and Optionee. Optionor and Optionee agree that, (i) in the event of a
purchase of Phase I by Optionee, pursuant to a Purchase Option, during the
period between delivery of Optionee’s Interest Notice and delivery of
Optionee’s Price Proposal, and (ii) in the event of a purchase of Phase I by
Optionee pursuant to a Right of First Offer, prior to the
Contingency Date set forth in the Purchase Agreement, Optionor and
Optionee shall meet in good faith and mutually agree upon the terms and
conditions of the Lot Line Adjustment or Field Easement, as elected by
Optionor, and the Parking Easement. Further, upon a sale of Phase II
separately, Optionor and Optionee and any other necessary third party(ies)
shall meet and in good faith negotiate the terms of the required Lot Line
Adjustment or Field Easement and Parking Easement in the time required pursuant
to the applicable transaction. In such event, Optionee shall not have the
right to object to or prevent the recordation of any of the Lot Line
Adjustment, Field Easement or Parking Easement because of matters set forth in
any of the Lot Line Adjustment, Field Easement or Parking Easement, so long as
Optionee’s rights with respect to the Field and reciprocal parking as
hereinabove specified are not materially altered.

     18.     Counterparts. This Option Agreement may be executed in several
original counterparts, each of which and all together will constitute this
Option Agreement in its entirety.

     IN WITNESS WHEREOF, the parties have executed this Option Agreement as of
the date first above written.

[SIGNATURES FOLLOW, EACH ON A SEPARATE PAGE]

	 	 	 
	 	 	
ELECTRONIC ARTS
	 	-19-	
[ROFO/Option Agreement]

 

 

	 	 	SIGNATURES TO THAT CERTAIN AGREEMENT RE RIGHT OF FIRST OFFER TO
PURCHASE AND OPTIONS TO PURCHASE BY AND BETWEEN PLAYA VISTA – WATER’S
EDGE, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AND ELECTRONIC ARTS
INC., A DELAWARE CORPORATION, DATED JULY 31, 2003

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
OPTIONOR:	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
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
	 	 	 	 	 	 	 	 	Its: 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
	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	John A. Morales
	 	 	 	 	 	 	 	 	 	Senior Vice President

	 	 	 
	 	 	
ELECTRONIC ARTS
	 	 	
[ROFO/Option Agreement]

 

 

	 	 	SIGNATURES TO THAT CERTAIN AGREEMENT
RE RIGHT OF FIRST OFFER TO PURCHASE
AND OPTIONS TO PURCHASE BY AND
BETWEEN PLAYA VISTA — WATER’S EDGE,
LLC, A DELAWARE LIMITED LIABILITY
COMPANY, AND ELECTRONIC ARTS INC., A
DELAWARE CORPORATION, DATED JULY 31,
2003

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

	 	 	
Its:
	 	Chief Executive Officer
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Its:	 	 
	 	 	 	 	

	 	 	 
	 	 	
ELECTRONIC ARTS
	 	 	
[ROFO/Option Agreement]

 

 

EXHIBIT “1”

LEGAL DESCRIPTION OF THE REAL PROPERTY

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 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

-1-

 

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.

-2-

 

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.

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.

-3-

 

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 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-

 

	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 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

-5-

 

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

-6-

 

EXHIBIT “2”

AGREEMENT OF PURCHASE AND SALE

AND JOINT ESCROW INSTRUCTIONS

By and Between

PLAYA VISTA – WATER’S EDGE, LLC,

a Delaware limited liability company

(“Seller”)

and

ELECTRONIC ARTS INC.,

a Delaware corporation

(“Buyer”)

ELECTRONIC ARTS INC.

[Purchase Agreement]

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	

	I	 	
SUMMARY OF BASIC TERMS
	 	 	1	 
	II	 	
PURCHASE
	 	 	6	 
	III	 	
PURCHASE PRICE; ESCROW
	 	 	7	 
	IV	 	
CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS
	 	 	7	 
	V	 	
CONDITIONS PRECEDENT TO SELLER’S OBLIGATIONS
	 	 	12	 
	VI	 	
FAILURE OF CONDITIONS TO CLOSE OF ESCROW
	 	 	12	 
	VII	 	
CLOSING, ESCROW AND TITLE
	 	 	13	 
	VIII	 	
COSTS AND EXPENSES
	 	 	15	 
	IX	 	
PRORATIONS
	 	 	15	 
	X	 	
DISBURSEMENTS AND OTHER ACTIONS BY ESCROW HOLDER
	 	 	17	 
	XI	 	
REPRESENTATIONS AND WARRANTIES
	 	 	18	 
	XII	 	
BUYER’S REPRESENTATIONS AND WARRANTIES
	 	 	20	 
	XIII	 	
OPERATIONS DURING ESCROW
	 	 	22	 
	XIV	 	
CONDEMNATION, DAMAGE AND DESTRUCTION
	 	 	24	 
	XV	 	
RIGHTS AND REMEDIES
	 	 	25	 
	XVI	 	
MISCELLANEOUS
	 	 	26	 

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	(i)	
[Purchase Agreement]

 

Page

EXHIBITS

	 	 	 
	EXHIBIT A	 	
LEGAL DESCRIPTION
	EXHIBIT B	 	
GRANT DEED
	EXHIBIT C	 	
TENANT LEASE ASSIGNMENT
	EXHIBIT D	 	
GENERAL ASSIGNMENT AND BILL OF SALE
	EXHIBIT E	 	
TRANSFEROR’S CERTIFICATE OF NON-FOREIGN STATUS
	EXHIBIT F	 	
TENANT NOTIFICATION LETTER
	EXHIBIT G	 	
ADVERSE CLAIMS; INSOLVENCY
	EXHIBIT H	 	
NOTICES
	EXHIBIT I	 	
EXCEPTIONS TO TITLE OF SELLER
	EXHIBIT J	 	
SERVICE CONTRACTS
	EXHIBIT K	 	
TENANT LEASES
	EXHIBIT L	 	
BILL OF SALE
	EXHIBIT M	 	
DESCRIPTION OF THE FIELD

(ii)

 

INDEX

	 	 	 	 	 
	 	 	Page(s)
	 	 	

	Action
	 	 	28	 
	Affiliate
	 	 	27	 
	Agreement
	 	 	1	 
	Approved Title Conditions
	 	 	9	 
	Authorities
	 	 	3	 
	Bill of Sale
	 	 	13	 
	Brokers
	 	 	3	 
	Building 3
	 	 	11	 
	Buyer
	 	 	1	 
	Buyer’s Acknowledgment of Receipt
	 	 	9	 
	Close of Escrow
	 	 	2, 7	 
	Closing Date
	 	 	1	 
	Contingency Date
	 	 	1	 
	Contingency Period
	 	 	1	 
	control
	 	 	9, 27	 
	Deed
	 	 	13	 
	Deposit
	 	 	1	 
	Documents
	 	 	9, 10	 
	Effective Date
	 	 	1	 
	Environmental Laws
	 	 	3	 
	Escrow
	 	 	3	 
	Escrow Holder
	 	 	1	 
	Field
	 	 	2	 
	Field Easement
	 	 	11	 
	FIRPTA Certificate
	 	 	13	 
	First Purchase Option
	 	 	6	 
	General Assignment
	 	 	13	 
	Governmental Regulations
	 	 	3	 
	Hazardous Material
	 	 	3	 
	Improvements
	 	 	3	 
	Inventory
	 	 	10	 
	Lease
	 	 	4	 
	Licenses and Permits
	 	 	4	 
	material
	 	 	25	 
	Official Records
	 	 	5	 
	Opening of Escrow
	 	 	5	 
	Option Agreement
	 	 	1, 20	 
	Parking Easement
	 	 	11	 
	Personal Property
	 	 	5	 
	Phase II Owner
	 	 	11	 
	Project
	 	 	3	 
	Project Name
	 	 	3, 5	 
	Property
	 	 	2	 
	PTR
	 	 	8	 
	Purchase Option
	 	 	6	 
	Purchase Options
	 	 	6	 
	Purchase Price
	 	 	1	 
	Real Property
	 	 	2	 

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	(iii)	
[Purchase Agreement]

 

	 	 	 	 	 
	 	 	Page(s)
	 	 	

	Real Property Owner
	 	 	11	 
	Records and Plans
	 	 	5	 
	Rentals
	 	 	15	 
	Right of First Offer
	 	 	6	 
	Second Purchase Option
	 	 	6	 
	Seller
	 	 	1	 
	Service Contracts
	 	 	5	 
	Survey
	 	 	8	 
	Tenant
	 	 	6	 
	Tenant Deposits
	 	 	6	 
	Tenant Estoppel Certificates
	 	 	10	 
	Tenant Lease Assignment
	 	 	13	 
	Tenant Leases
	 	 	6	 
	Tenant Notification Letter
	 	 	13	 
	Title Company
	 	 	3	 
	Title Documents
	 	 	8	 
	Title Notice
	 	 	8	 
	Title Policy
	 	 	9	 
	to Seller’s actual knowledge
	 	 	18	 
	To the best of Seller’s knowledge
	 	 	18	 
	Underlying Documents
	 	 	8	 

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	(iv)	
[Purchase Agreement]

 

AGREEMENT OF PURCHASE AND
SALE

AND JOINT ESCROW INSTRUCTIONS

I

SUMMARY OF BASIC TERMS

     This Purchase and Sale Agreement and Joint Escrow Instructions (the
“Agreement”), dated as of the date set forth in Section 1 of the Summary of
Basic Terms, below, is made by and between PLAYA VISTA – WATER’S EDGE, LLC, a
Delaware limited liability company (“Seller”) and ELECTRONIC ARTS INC., a
Delaware corporation (“Buyer”). The terms as set forth below shall have the
meanings as set forth below when used in this Agreement.

	 	 	 	 	 
	TERM	 	DEFINITION
	 	 	 	 	 
	1.1	 	
“Effective Date”
	 	                                                                                                   

	 	 	 	 	 
	1.2	 	
“Purchase Price”
	 	[TO BE DETERMINED subject to the terms of
that certain Agreement Re Right of First
Offer to Purchase and Options to Purchase
between Seller and Buyer,
dated                                          (the “Option Agreement”)]
	 	 	 	 	 
	1.3	 	
“Deposit”
	 	3% of the Purchase Price
	 	 	 	 	 
	1.4	 	
“Escrow Holder”
	 	Chicago Title
Company

700 South Flower Street

Suite 900

Los Angeles, CA 90017

Attention: Mike Slinger
	 	 	 	 	 
	1.5	 	
“Contingency Date”
	 	[THIS PROVISION IS APPLICABLE ONLY IN THE
EVENT THIS PURCHASE AGREEMENT IS EXECUTED
IN CONNECTION WITH THE EXERCISE BY BUYER OF
THE RIGHT OF FIRST OFFER UNDER THE OPTION
AGREEMENT —5:00 P.M. (PST) of the date
which is thirty (30) days after the
Seller’s delivery to Buyer of all Documents
set forth in Section 4 (such 30 day period
shall be referred to herein as the
“Contingency Period”)
	 	 	 	 	 
	1.6	 	
“Closing Date”
	 	a) WITH RESPECT TO A PURCHASE PURSUANT TO
BUYER’S RIGHT OF FIRST OFFER:                                                                                                

	 	 	 	 	[FILL IN THE
DATE – no later than thirty (30) days after
the Contingency Date], or such earlier date
as may be agreed upon between the

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-1-	
[Purchase Agreement]

 

	 	 	 	 	 
	TERM	 	DEFINITION
	 	 	 	 	 
	 	 	 	 	parties
	 	 	 	 	 
	 	 	 	 	(b) WITH RESPECT TO PURCHASE PURSUANT TO
BUYER’S FIRST PURCHASE
OPTION:                                , 2008
or such earlier date as
may be agreed upon between the parties
	 	 	 	 	 
	 	 	 	 	(c) WITH RESPECT TO PURCHASE PURSUANT TO
BUYER’S SECOND PURCHASE OPTION:                                , 2013
or such earlier date as
may be agreed upon between the parties
	 	 	 	 	 
	1.7	 	
“Close of Escrow”
	 	The date the Deed is recorded in the
Official Records
	 	 	 	 	 
	1.8	 	
“Property”
	 	Collectively, the Real Property, the
Improvements, the Licenses and Permits, the
Personal Property, the Records and Plans
and all of Seller’s right, title and
interest in and to the Tenant Leases,
Tenant Deposits, and Service Contracts,
affecting the Real Property and
Improvements
	 	 	 	 	 
	1.9	 	
“Real Property”
	 	That certain real property described on
Exhibit A attached hereto, together with
all of right, title and interest in and to
(i) all appurtenances, streets, alleys,
easements, right-of-way in or to all
streets or other interests in, on, across,
in front of, abutting or adjoining such
real property, and (ii) all of the rights,
title, interests, privileges and
appurtenances which are in any way related
to or used in connection with such real
property and/or the Improvements [IN THE
EVENT OF A PHASE I ONLY PURCHASE, THE REAL
PROPERTY SHALL INCLUDE EITHER THE FEE TO
THE FIELD IF A LOT LINE ADJUSTMENT IS
OBTAINED OR AN EASEMENT FOR THE USE OF THE
FIELD BY BUYER]
	 	 	 	 	 
	1.10	 	
“Field”
	 	That certain real property containing an
approximately 60,000 square foot athletic
field, which is property is described on
Exhibit M attached hereto.

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-2-	
[Purchase Agreement]

 

	 	 	 	 	 
	TERM	 	DEFINITION
	 	 	 	 	 
	1.11	 	
“Improvements”
	 	All buildings, fixtures, structures,
parking areas, landscaping and other
improvements constructed and located on the
Real Property, including, but not limited
to, _____ building(s) containing
approximately _____ rentable
square feet of space, together with all
machinery and mechanical, electrical, HVAC
and plumbing systems used in the operation
thereof, but excluding any such items owned
by tenants in possession or public or
private utilities or contractors under
contract
	 	 	 	 	 
	1.12	 	
“Project”
	 	The Real Property and the Improvements
	 	 	 	 	 
	1.13	 	
“Title Company”
	 	Chicago Title Insurance Company
	 	 	 	 	 
	1.14	 	
“Project Name”
	 	Playa Vista – Water’s Edge
	 	 	 	 	 
	1.15	 	
“Brokers”
	 	NONE
	 	 	 	 	 
	1.16	 	
“Authorities”
	 	Any governmental or quasi-governmental body
or agency having jurisdiction over the
Property and/or Seller including, without
limitation, the State, the City and the
County
	 	 	 	 	 
	1.17	 	
“Escrow”
	 	The escrow opened with Escrow Holder for
the consummation of the transaction
described in this Agreement
	 	 	 	 	 
	1.18	 	
“Governmental
Regulations”
	 	Any laws, ordinance, rules, requirements,
resolutions, policy statements and
regulations (including, without limitation,
those relating to land use, subdivision,
zoning, environmental, toxic or hazardous
waste, occupational health and safety,
water, earthquake hazard reduction,
disabled persons and building and fire
codes) of the Authorities bearing on the
construction, alterations, rehabilitation,
maintenance, use, operation, ownership or
sale of the Project
	 	 	 	 	 
	1.19	 	
“Hazardous Material”
	 	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

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-3-	
[Purchase Agreement]

 

	 	 	 	 	 
	TERM	 	DEFINITION
	 	 	 	 	 
	 	 	 	 	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, 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
	 	 	 	 	 
	1.20	 	
“Lease”
	 	That certain Office Lease by and between
Playa Vista – Water’s Edge, LLC and
Electronic Arts Inc. dated _____ ,
2003
	 	 	 	 	 
	1.21	 	
“Licenses and Permits”
	 	(A) all licenses, permits, certificates of
occupancy, approvals, dedications,
subdivision maps and entitlements issued,
approved or granted by Authorities or
otherwise in connection with the Project;
(B) all right title and interest of Seller
in and to the use of the name “Playa Vista
Water’s Edge” and any and all other trade
names and logos used by Seller in the
operation and identification of the
Project, except those identifying Seller or
an affiliate of Seller, and the name Playa
Vista Water’s Edge if less than whole Playa
project conveyed; (C) any and all
development rights and other intangible
rights, titles, interests, privileges and
appurtenances owned by Seller and in any
way related to or used in connection with
the Project and its operation; and (D) all
licenses, consents, easements, rights of
way and approvals from private parties
which Seller has obtained to make use of
utilities and to permit vehicular and
pedestrian ingress and egress to the
Project which are of record or to which

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-4-	
[Purchase Agreement]

 

	 	 	 	 	 
	TERM	 	DEFINITION
	 	 	 	 	 
	 	 	 	 	Seller is otherwise a party
	 	 	 	 	 
	1.22	 	
“Official Records”
	 	The Official Records of the County of Los
Angeles
	 	 	 	 	 
	1.23	 	
“Opening of Escrow”
	 	The date on which a fully executed copy of
this Agreement is delivered to Escrow
Holder by Buyer and Seller
	 	 	 	 	 
	1.24	 	
“Personal Property”
	 	All equipment, appliances, tools,
machinery, supplies, building materials and
other personal property of every kind and
character owned by Seller and attached to,
appurtenant to, located in or used in
connection with the operation of the
Project, including, without limitation, all
attachments, appliances, fittings, gas and
oil burners, automatic stokers, lighting
fixtures, doors, cabinets, partitions,
mantles, elevators, electric motors, pumps,
screens, flag poles, waste disposal or
storage equipment, all sprinklers,
plumbing, heating, incinerating, vacuum
cleaning, refrigerating and cooling
systems, each with its respective furnaces,
boilers, engines, motors, dynamos,
radiators, pipe, wiring and other
apparatus, vaults, safes, fire prevention
and extinguishing equipment, carpets, floor
covering, kitchen appliances and antenna,
and the Records and Plans
	 	 	 	 	 
	1.25	 	
“Project Name”
	 	[TO BE DETERMINED BY EA PER LEASE]
	 	 	 	 	 
	1.26	 	
“Records and Plans”
	 	(A) All preliminary, final and proposed
building plans and specifications
(including “as-built” drawings) respecting
the Improvements, and (B) all structural
reviews, architectural drawings and
engineering, soils, seismic, geologic,
hyrogeologic and architectural reports,
studies and certificates and other
documents pertaining to the Project which
are within the possession of or under the
control of Seller
	 	 	 	 	 
	1.27	 	
“Service Contracts”
	 	Any and all service contracts, maintenance
agreements, construction contracts,
architects’ agreements, brokerage
agreements, parking agreements,
consultants’ agreements, warranties,
guarantees, management contracts, bonds
operating agreements, listing agreements,
union

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-5-	
[Purchase Agreement]

 

	 	 	 	 	 
	TERM	 	DEFINITION
	 	 	 	 	 
	 	 	 	 	contracts, labor agreements,
collective bargaining arrangements, and all
other service contracts and agreements
relating to the Project (other than the
Title Documents), together with all
supplements, amendment and modifications
thereto, relating to the Property, to which
Seller is a party and which are currently
in effect, provided, such Service Contracts
shall not include any “national” service
contracts which cover other properties.
	 	 	 	 	 
	1.28	 	
“Tenant”
	 	Any person who is named tenant or lessee
under a Tenant Lease, excluding Buyer
	 	 	 	 	 
	1.29	 	
“Tenant Deposits”
	 	All security deposits, prepaid rentals,
cleaning fees and other deposits, plus any
interest accrued thereon, paid by Tenants
to Seller relative to the Project
	 	 	 	 	 
	1.30	 	
“Tenant Leases”
	 	All leases, licenses, rental agreements or
occupancy agreements and all amendments and
supplements thereto, relative to the
Property (together with all rents, issues
and profits thereunder), to which Seller is
a party and which are currently in effect,
excluding the Lease

II

PURCHASE

     2.     Purchase
Transaction. Seller and Buyer acknowledge that this Purchase
Agreement is being entered into pursuant to the terms of the Option Agreement
under which Buyer is
granted the right to purchase the Property under either (i) a right of
first offer (“Right of First Offer”), (ii) a first purchase option (“First
Purchase Option”), or (iii) a second purchase option (“Second Purchase
Option”). The First Purchase Option and the Second Purchase Option are
sometimes herein referred to, collectively, as the “Purchase Options” or,
individually, as a “Purchase Option”. This Agreement is drafted to accommodate
a sale pursuant to either the Right of First Offer or a sale pursuant to either
Purchase Option, in accordance with the terms of the Option Agreement. Where
alternative terms apply, such terms are noted in brackets identifying the type
of purchase transaction to which they apply. In submitting this Agreement to
Escrow in accordance with the terms of the Option Agreement, Buyer and Seller
shall strike and initial the bracketed terms that do not apply to the
applicable transaction and shall initial the bracketed terms that do apply to
the particular transaction.

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-6-	
[Purchase Agreement]

 

III

PURCHASE PRICE; ESCROW

     3.     Purchase Price; Escrow Opening. Seller agrees to sell to Buyer, and
Buyer agrees to purchase from Seller, the Property for the sum of the Purchase
Price, which shall be paid as set forth below in this Section 1. Buyer shall
have the right to allocate the Purchase Price between the Real Property and the
Personal Property, provided any such allocation by Buyer shall not be binding
on Seller.

          3.1 Deposit. Upon the Opening of Escrow, Buyer shall deliver to Escrow
Holder the Deposit required pursuant to Section 1.3 of the Summary which Escrow
Holder shall invest in a federally-insured, interest bearing account. At the
Close of Escrow, all interest which accrues on the Deposit shall be credited to
Buyer’s account and shall be credited to payment of the Purchase
Price. [THIS
PROVISION APPLICABLE TO A PURCHASE OPTION PURCHASE: The Deposit shall be
deemed fully earned on delivery and shall be deemed to be non-refundable in any
event except in the event of a default by Seller hereunder, or as a result of
damage or destruction or condemnation as set forth in Section 14 below.] [THE
FOLLOWING PROVISIONS APPLICABLE IN THE EVENT OF A RIGHT OF FIRST OFFER
PURCHASE: Until the Contingency Date, the Deposit shall remain immediately
refundable to Buyer if this Agreement is terminated for any reason. Provided
Buyer has not terminated this Agreement on or before the Contingency Date,
thereafter, the Deposit shall be deemed to be non-refundable unless the
transaction contemplated by this Agreement is not consummated as the result of
Seller’ default under the terms of this Agreement, or as a result of damage or
destruction or condemnation as set forth in Section 14 below.]

          3.2 Purchase Price Balance. Provided that this Agreement has not been
previously terminated for any reason permitted hereunder, on or before the
Closing Date, Buyer shall deliver the balance of the Purchase Price, as
adjusted by Buyer’s share of costs, expenses and prorations, to Escrow Holder
by wire transfer of immediately available funds.

          3.3 Escrow Opening. Buyer and Seller shall promptly cause the Opening of
Escrow by delivering a fully executed copy of this Agreement to Escrow Holder,
and shall execute any additional or supplementary instructions as may be
reasonably necessary or convenient to implement the terms of this Agreement.
The “Close of Escrow” shall occur on the Closing Date.

IV

CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS

          4. Conditions Precedent to Buyer’s Obligations; Contingencies. Except as
otherwise expressly indicated, the Close of Escrow and Buyer’s obligations with
respect to the transaction contemplated by this Agreement are subject to the
satisfaction or waiver by Buyer, in its sole discretion, as evidenced by
delivery of written notice thereof to Seller, not later than the Closing Date
(unless otherwise provided herein) of the following conditions as a condition
precedent to Buyer’s obligations under this Agreement.

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-7-	
[Purchase Agreement]

 

          4.1
Inspections, Investigations and Approvals. [ALL PROVISIONS OF THIS
SECTION 4.1, INCLUDING ALL SUBSECTIONS HEREUNDER, APPLY ONLY IN THE EVENT OF A
RIGHT OF FIRST OFFER PURCHASE: Prior to the expiration of the Contingency
Period, Buyer shall have received and/or reviewed and approved, disapproved or
waived, as hereafter provided, all of the following matters.

               4.1.1 Physical Inspection. From and after the Opening of Escrow, Buyer
and Buyer’s representatives, agents and designees shall have the right to (i)
consult with any party, including, without limitation, any Authorities for any
purpose relating to the Real Property, and (ii) enter upon the Property, at
Buyer’s sole cost, for any purpose (subject to the rights of Tenants) in
connection with its proposed purchase, development or operation of the
Property, including, without limitation, to examine all “Documents” (as defined
in Section 4.1.3 below) relating to the Property and to make such inspections,
investigations and tests (including all leased areas and mechanical systems) as
Buyer may elect to make or obtain, including, without limitation, a phase I and
phase II, as applicable, environmental survey, zoning, building codes or other
governmental regulations, architectural inspections, engineering tests,
economic feasibility studies, soils, seismic, hydrogeologic and engineering
tests, surveys, analyses and studies (including all structural and mechanical
systems). No invasive tests, analyses or studies shall be conducted without
Seller’s consent, which is not to be unreasonably withheld but may be
reasonably conditioned and shall be granted or denied within three (3) business
days. Seller agrees to make all such Documents readily available to Buyer and
Buyer’s attorneys, accountants and other representatives at the Property at or
at Seller’s offices in Los Angeles County, any time during business hours as
required in Section 4.1.3 below upon three (3) business days prior notice from
Buyer. Buyer shall have the right to make copies, at Buyer’s sole expense, of
any and all Documents. Buyer hereby indemnifies and agrees to defend and hold
harmless Seller from any and all claims, suits, losses, damages, liabilities,
costs and expenses, including, without limitation, reasonable attorneys’ fees
and disbursements and personal injuries or damages to real or personal property
and mechanics’ liens arising out of any such entry by Buyer or its agents,
designees or representatives.

               4.1.2 Title Approval.

                    4.1.2.1 Delivery of Title Documents. It shall be the sole obligation and
responsibility of Buyer, at Buyer’s sole cost and expense, to order and obtain
the following documents (collectively, the “Title Documents”): (A) a
preliminary title report (“PTR”) dated on or after the date of this Agreement
issued by the Title Company with respect to the Real Property which includes
all requirements of the Title Company for “extended coverage”; (B) any update
of any existing ALTA as-built survey or any required new survey (“Survey”) of
the Real Property; and (C) legible copies of all documents (“Underlying
Documents”), whether recorded or unrecorded, referred to in such PTR or Survey;
provided, however, Seller shall deliver copies of any unrecorded documents
referenced in the PTR in Seller’s possession or control within three (3)
business days of written request.

                    4.1.2.2 Buyer Approval. On or before the later of (a) the date which is
fifteen (15) days of Buyer’s receipt of the last of the Title Documents, or (b)
one (1) business day prior to the Contingency Date, Buyer shall advise Seller
and the Title Company of its approval or disapproval of the condition of title
reflected in the Title Documents (the “Title

	 	 	 
	 	 	
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Notice”). Buyer’s failure to give Seller and the Title Company timely
Title Notice shall be deemed approval by Buyer of the condition of title.
Notwithstanding the foregoing, Buyer hereby objects to (i) all liens evidencing
monetary encumbrances (other than liens for non-delinquent general real
property taxes, including any special taxes or assessments collected therewith
which cannot be paid off, but specifically excluding any special taxes or
assessments collected therewith which may be paid off), and (ii) all standard
nonspecific exceptions to the title to the Property, and Seller hereby agrees
to cause all such liens and standard nonspecific exceptions to be eliminated as
exceptions to title and from the Title Policy prior to the Closing Date at
Seller’s expense. If Buyer timely notifies Seller of its disapproval of the
condition of title of the Property, and Seller notifies Buyer in writing, on
or before the expiration of the Contingency Date, that it is unable or
unwilling to cure any or all matters disapproved by Buyer (or if Seller fails
to deliver such notice, in which event, Seller shall be deemed to have elected
not to cure any such matters), Buyer may either elect to waive Buyer’s
disapprovals by delivering written notice to Seller and Title Company or to
terminate this Agreement, on or before the expiration of the Contingency Date,
in which event Escrow shall be canceled and the Deposit (together with all
interest accrued thereon) shall be returned to Buyer. Upon the Close of
Escrow, Seller shall convey fee simple title to the Project to Buyer by the
Deed (as defined below in Section 7.2.1), subject only to the following matters
(“Approved Title Conditions”): (A) a lien for non-delinquent general real
property taxes, including any special taxes or assessments collected therewith
which cannot be paid off, but specifically excluding any special taxes or
assessments collected therewith which may be paid off, prorated in accordance
with the provisions of this Agreement; (B) matters of title respecting the
Project approved or waived by Buyer in accordance with this Section 4.1.2; and
(C) matters affecting the condition of title to the Project created by or with
the written consent of Buyer during the Escrow. Upon the Close of Escrow,
Seller, at Seller’s expense, shall cause the Title Company to issue to Buyer an
ALTA Extended Coverage 1970 Form B Owner’s Policy of Title Insurance, provided
Buyer shall bear the expense of any premium applicable to the ALTA extended
coverage portion of such policy, included extended coverage endorsements, with
liability in the amount of the Purchase Price and with such CLTA endorsements,
co-insurance and/or facultative reinsurance as Buyer designates in its
reasonable discretion, showing fee title to the Project vested in Buyer subject
only to the Approved Title Conditions (“Title Policy”).

               4.1.3
Operating and Leasing Approval. Concurrently with the Opening of
Escrow, or no later than five (5) days thereafter, Seller shall deliver to
Buyer or make readily available to Buyer at the Property the documents and
materials respecting the Property set forth below in this Section 4.1.3, to the
extent in Seller’s possession or control (“control,” meaning in the possession
of parties whom Seller has the right to cause to deliver to Seller or parties
directed by Seller any information, materials or documents, e.g., property
managers, attorneys, accountants, agents, contractors, employees and
consultants) (collectively, the “Documents”). Upon Seller’s request, Buyer
shall provide Seller with Buyer’s written acknowledgment of receipt (“Buyer’s
Acknowledgment of Receipt”) of the Documents delivered by Seller pursuant to
this Section 4.1.3 within five (5) days following Buyer’s receipt of Seller’s
written request therefor, and if Buyer does not respond within such five (5)
day period, then Buyer’s Acknowledgment of Receipt shall be deemed given;
provided, however, the fact that Buyer has delivered (or deemed to have
delivered) Buyer’s Acknowledgment of Receipt for such Documents shall not waive
Buyer’s right to request and have timely delivered to Buyer all items required
under this Purchase Agreement, but any further request after such
acknowledgment

	 	 	 
	 	 	
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shall not extend the Contingency Date. By the Contingency Date, Buyer
shall have delivered to Seller written approval or disapproval of the Documents
and Buyer’s failure to timely do so, by the Contingency Date, TIME BEING OF THE
ESSENCE, shall be deemed to constitute Buyer’s approval of the Documents and
Buyer’s election to proceed under this Agreement. The “Documents” shall
consist of (i) the most recent phase I and phase II, if any, environmental
reports prepared with respect to the Project; (ii) complete copies of all
Tenant Leases encumbering the Project, and all amendments or modifications
thereto; (iii) a detailed list (“Inventory”) describing all of the Personal
Property as of the Opening of Escrow; (iv) legible copies of all Service
Contracts (any Service Contract which is not approved by Buyer in writing to
Seller on or prior to the Contingency Date shall be terminated by Seller,
without cost or liability to Buyer, on or prior to the Closing Date, provided
the same can by their terms be terminated by such date, and such disapproved
Service Contracts shall no longer be Service Contracts for purposes of this
Agreement); (v) copies of all Records and Plans; (vi) copies of all Licenses
and Permits; (vii) copies of all documents, agreements and other writings
referenced in and affecting the Tenant Leases, other than the Lease; and (viii)
copies of all insurance claims and settlements made within the three most
recent years of Fifty Thousand and No/100 Dollars ($50,000.00) or more; and
(ix) copies of the bills issued for the three (3) most recent years for all
real property taxes.

               4.1.4 [THIS PROVISION APPLICABLE ONLY WITH RESPECT TO A FIRST OFFER
PURCHASE WHICH INCLUDES BUILDING 3: Tenant Estoppel
Certificates. No later
than twenty (20) business days after the Opening of Escrow, Seller shall
deliver to Buyer estoppel certificates (“Tenant Estoppel Certificates”) duly
executed by Tenants occupying not less than 70% of the rentable square footage
of the building designated as Building 3 of the Project, and to the extent
Seller is unable to deliver Tenant Estoppel Certificates from all tenants of
the Building 3, Seller shall deliver Landlord estoppel certificates for all
remaining Tenants, occupying up to a maximum of 30% of the rentable square
footage of Building 3, which are dated not more than sixty (60) days prior to
the Closing Date. Seller shall use commercially reasonable efforts to obtain
Tenant Estoppel Certificates substantially in the form of Exhibit “N” attached
hereto (with any Landlord certificate adapted appropriately to reflect Landlord
responses), provided, Seller shall only be obligated to provide a Tenant
Estoppel Certificate in the form attached to any applicable Tenant Lease, if
the applicable Tenant will not deliver a Tenant Estoppel Certificate in the
form of Exhibit “N”. Seller shall deliver the original executed Tenant
Estoppel Certificates to Buyer no later than ten (10) business days prior to
the Closing Date.]

               4.1.5 By the Closing Date, Buyer and Seller shall have reached an
agreement with respect to the terms of the “Lot Line Adjustment” or “Field
Easement,” as applicable, and the “Parking Easement”, each as defined in
Section 4.2.6 below.

     By the Contingency Date, Buyer shall have delivered to Seller written
disapproval of any matters resulting from any and all inspections,
investigations, tests and studies with respect to the matters set forth in
Sections 4.1.1 through 4.1.3 above to which Buyer has any objection. In the
event Buyer has not provided Seller with written notice of any such disapproval
by the expiration of the Contingency Period, all matters not previously
disapproved shall be deemed to be approved, and this Agreement shall remain in
full force and effect and the Deposit shall be non-refundable except as
otherwise provided herein. In the event Buyer notifies Seller of its

	 	 	 
	 	 	
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disapproval of any matter to which it objects (unless Seller has cured
such matter to Buyer’s satisfaction, in Buyer’s sole discretion, such that
Buyer has waived its disapproval, this Agreement shall terminate, and the
Deposit (including all interest accrued thereon) shall immediately be returned
to Buyer. Notwithstanding anything to the contrary contained herein, Buyer may
elect to terminate this Agreement on or prior to the Contingency Date for no
reason or any reason whatsoever, in Buyer’s sole and absolute discretion.

          4.2
Buyer’s Conditions Precedent.

               4.2.1
Representations, Warranties and Covenants of Seller. Seller shall
have performed each and every material covenant and agreement to be performed
by Seller hereunder in the form, by the time and in the manner required by the
terms of this Agreement, and Seller’s representations and warranties shall be
true and correct in all material respects as of the date hereof and as of the
Close of Escrow with the same force and effect as if remade by Seller in a
separate certificate at that time.

               4.2.2
Original Documents. Without limiting Seller’s obligations under
Section 4.1.3, Seller shall, by the Closing Date, deliver to Buyer originals of
all the Documents, or if an original is not available, a copy thereof.

               4.2.3
Seller’s Deliveries. Seller shall have delivered the items
described in Section 7.2.

               4.2.4
Title Insurance. As of the Close of Escrow, the Title Company shall
have issued or shall have committed to issue the Title Policy to Buyer.

               4.2.5 [THIS PROVISION APPLICABLE ONLY IN THE EVENT THE PROPERTY IS ONLY
“PHASE I” AS DEFINED IN THE OPTION AGREEMENT]
Lot Line Adjustment/Easements.
Seller shall, at Seller’s election, have either (i) obtained and recorded or
be in a position to record at Closing, a lot line adjustment such that the
legal parcel comprising the Real Property shall include the Field (the “Lot
Line Adjustment”), or (ii) alternatively, grant an exclusive easement to the
owner of the Real Property (the “Real Property Owner”) for the Real Property
Owner’s exclusive use of the Field (the “Field Easement”), which Field Easement
shall be in a commercially reasonable form mutually acceptable to Buyer and
Seller and shall be recorded at Closing, and will provide, at a minimum, that
the Real Property Owner shall (a) have exclusive use of the Field, (b)
maintain, and assume all costs (including an equitable portion of real estate
taxes and assessments) for maintenance and use of the Field, and (c) indemnify
Seller or any other owner of Phase II (as defined in the Option Agreement) (the
“Phase II Owner”) against any liabilities arising out of Buyer’s exercise of
its rights under such Field Easement and use of the Field. Further, if the
building intended to be constructed on Phase II (“Building 3”) and its related
improvements on Phase II have not been completed, the Field Easement shall
recognize the fact that the Real Property Owner will not have use of the Field
during the construction of Building 3 and its related improvement, for the
period of time, and subject to the terms and conditions with respect thereto,
as set forth in the Lease. In addition, Buyer and Seller shall enter into a
reciprocal parking easement for parking and ingress and egress with respect
thereto with respect to the parking facilities located beneath the Field (the
“Parking Easement”), which Parking Easement shall be in a commercially
reasonable form mutually acceptable to Buyer and Seller, shall benefit and
burden the Real

	 	 	 
	 	 	
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Property Owner and the Phase II Owner, and will provide for the number of
parking spaces to be allocated to the Phase I Owner and the number of parking
spaces to be allocated to the Real Property Owner as required under the Lease.

The conditions set forth in this Section 4, above [PHASE I ONLY PURCHASE
–(except with respect to the Parking Easement, which shall be for Seller’s sole
benefit)], are solely for the benefit of Buyer and may be waived only by Buyer.
Buyer shall, at all times, have the right to waive any condition. Such waiver
or waivers shall be in writing to Buyer. The waiver by Buyer of any particular
condition, representation, warranty, covenant or agreement of Seller shall not
relieve Seller of any liability or obligation with respect to any other
condition, representation, warranty, covenant or agreement of Seller. All
approvals given by Buyer under this Section 4 shall be in writing and the
failure of Buyer to approve any matter requiring its approval under this
Section 4, by the time therefor shall be deemed approval thereof by Buyer.
Neither Seller nor Buyer shall act or fail to act for the purpose of permitting
or causing any condition to fail (except to the extent Buyer, in its own sole
discretion, exercises its right to disapprove any such items or matters).

V

CONDITIONS PRECEDENT TO SELLER’S OBLIGATIONS

     5.     Conditions Precedent to Seller’s Obligations. As a condition precedent
to Seller’s obligations under this Agreement, (i) all uncured monetary
defaults, if any, under the Lease shall have been cured on or before Close of
Escrow; provided, however, the parties agree that Buyer may deposit all funds
required to cure any such defaults, in addition to the Purchase Price, on the
Closing Date, and (ii) Buyer shall have performed all of Buyer’s obligations
hereunder and delivered the Purchase Price to Escrow Holder by the Closing Date
and shall have made the other deliveries in the form, manner and at the times
specified in this Agreement [PHASE I ONLY PURCHASE and (iii) if applicable,
Buyer shall have delivered the executed Field Easement, and Buyer shall have
delivered the executed Parking Easement].

VI

FAILURE OF CONDITIONS TO CLOSE OF ESCROW

     6.     Failure of Conditions to Close of Escrow. If any of the conditions set
forth in Sections 4, 5 or 7 are not timely satisfied or waived by the party to
whose benefit such condition inures, for a reason other than a breach of an
obligation of Buyer or Seller under this Agreement, then (i) this Agreement,
the Escrow and the rights and obligations of Buyer and Seller shall terminate,
except as otherwise provided herein; and (ii) Escrow Holder is hereby
instructed to promptly return to Seller and Buyer all funds (including the
Deposit and all interest accrued thereon) and documents deposited by them,
respectively, into Escrow which are held by Escrow Holder on the date of said
termination; and (iii) the cancellation charges required to be paid by and to
Escrow Holder and the Title Company shall be borne one-half (1⁄2) by Seller
and one-half (1⁄2) by Buyer and all other charges shall be borne by the party
incurring same.

	 	 	 
	 	 	
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VII

CLOSING, ESCROW AND TITLE

     7.     Close of Escrow.

          7.1 Close of Escrow. The Close of Escrow shall occur through Escrow on
the Closing Date. TIME IS OF THE ESSENCE for the Close of Escrow to occur on
or prior to the Closing Date.

          7.2 Seller’s Deliveries to Escrow Holder. At least one (1) business day
prior to the Closing Date, Seller shall deliver to Escrow Holder the following,
the delivery of each of which shall be a condition to the performance by Buyer
of its obligations under the terms of this Agreement:

               7.2.1 A grant deed (“Deed”), duly executed by Seller and acknowledged in
the form of, and upon the terms contained in, Exhibit “B” attached hereto;

               7.2.2 An Assignment of Leases and Tenant Deposits (“Tenant Lease
Assignment”) duly executed by Seller in the form of, and upon the terms
contained in, Exhibit “C” attached hereto;

               7.2.3 An assignment (“General Assignment”), duly executed by Seller in the
form of, and upon the terms contained in, Exhibit “D” attached hereto;

               7.2.4 A bill of sale (“Bill of Sale”), duly executed by Seller, in the
form of, and upon the terms contained in Exhibit “E” attached hereto;

               7.2.5 A transferor’s certification of non-foreign status (“FIRPTA
Certificate”) duly executed by Seller in the form of, and upon the terms
contained in, Exhibit “E” attached hereto (or such other form as may be
required under Internal Revenue Code § 1445), provided if Seller is unable to
deliver such statement, Seller shall authorize Escrow Holder to withhold and
remit to the Internal Revenue Service all appropriate amounts as required by
law, and such other certifications, statements, affidavits or other documents
as may be required under California Revenue and Tax Code § 18662 (or any
successor statute);

               7.2.6 A letter to each of the tenants (“Tenant Notification Letter”), duly
executed by Seller and dated as of the Closing Date, in the form of, and upon
the terms contained in, Exhibit “F” attached hereto;

               7.2.7 Written notices executed by Seller to third parties to any Service
Contracts approved by Buyer, changing the address for service of notice and
delivery of statements and bills;

               7.2.8 Such proof of Seller’s authority and authorization to enter into
this Agreement and consummate the transaction contemplated hereby, and such
proof of the power and authority of the individual(s) executing and/or
delivering any instruments, documents or

	 	 	 
	 	 	
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certificates on behalf of Seller to act for and bind Seller as may be
reasonably required by Title Company;

               7.2.9 Any owner’s statements, lien affidavits or mechanic’s lien
indemnifications as may be reasonably requested by the Title Company to issue
the Title Policy;

               7.2.10 A Form 593 W duly completed and executed by Seller, stating that
Seller is not an out-of-state resident, provided if Seller is unable to deliver
such statement, Seller shall authorize Escrow Holder to withhold all
appropriate amounts as required by law; and

               7.2.11 A re-certification of Seller’s representations and warranties
pursuant to Section 11 below.

               7.2.12 [PHASE I ONLY PURCHASE- The recorded or recordable Lot Line
Adjustment or, if applicable, Field Easement, and the Parking Easement, duly
executed by Seller.

          7.3 Buyer’s Deliveries to Escrow Holder. At least one (1) business day
prior to the Closing Date, Buyer shall deliver to Escrow Holder the following ,
the delivery of each of which shall be a condition to the performance by Seller
of its obligations under the terms of this Agreement:

               7.3.1 The balance of the Purchase Price in accordance with Section 3;

               7.3.2 The Tenant Lease Assignment duly executed by Buyer;

               7.3.3 The General Assignment duly executed by Buyer;

               7.3.4 The amount due to Seller, if any, after the prorations are computed
in accordance with Section 9; and

               7.3.5 Such proof of Buyer’s authority and authorization to enter into this
Agreement and consummate the transaction contemplated hereby, and such proof of
the power and authority of the individual(s) executing and/or delivering any
instruments, documents or certificates on behalf of Buyer to act for and bind
Buyer as may be reasonably required by Title Company.

               7.3.6 [PHASE I ONLY PURCHASE- The Field Easement, if applicable, and the
Parking Easement each duly executed by Buyer.

          7.4 Deliveries to Buyer Upon and Following Close of Escrow. Seller shall
deliver possession of the Property to Buyer upon the Close of Escrow, together
with keys to all entrance doors to the Improvements and keys to all Personal
Property located on the Property, which Seller has possession or control over,
which keys shall be properly tagged for identification. Further, to the extent
the same have not been previously delivered to Buyer, Seller hereby covenants
and agrees to deliver to Buyer, immediately following the Close of Escrow,
originals, to the extent Seller has possession and control of such originals,
and otherwise

	 	 	 
	 	 	
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copies, of the (i) Tenant Leases; (ii) Service Contracts; (iii) Records
and Plans; and (iv) Licenses and Permits.

VIII

COSTS AND EXPENSES

     8.     Costs
and Expenses. If all conditions set forth in Sections 4, 5 and 7
hereof have been satisfied or appropriately waived as provided for herein, the
transaction contemplated by this Agreement shall be closed and consummated, and
upon the Close of Escrow: (i) Seller shall pay (A) the portion of the premium
for the Title Policy attributable to CLTA coverage, (B) all documentary
transfer taxes, (C) one-half (1/2) of all escrow fees and costs, and (D)
Seller’s share of prorations, (ii) Buyer shall pay (A) the portion of the
premium for the Title Policy attributable to ALTA Coverage and the cost of any
endorsements, (B) any document recording charges, (C) one-half (1/2) of all
escrow fees and costs, (D) Buyer’s share of prorations; (E) any sales tax
applicable to any transferred personal property, and (F) the cost of obtaining
or updating an ALTA survey and (iii) Buyer and Seller shall each pay all legal
and professional fees and fees of other consultants incurred by them,
respectively. All other costs and expenses shall be allocated between Buyer
and Seller in accordance with the customary practice in the County.

IX

PRORATIONS

     9.     Prorations. Rentals, revenues, and other income, if any, from the
Property, and real property taxes and operating expenses, if any, affecting the
Property shall be prorated on -an accrual basis as of 11:59 p.m. on the day
preceding the Close of Escrow in accordance with the following provisions. For
purposes of calculating prorations, Buyer shall be deemed to be in title to the
Property, and therefore entitled to the income and responsible for the
expenses, for the entire day upon which the Close of Escrow occurs.

          9.1
Rentals. As used herein, “Rentals” includes fixed monthly rentals,
additional rentals, escalation rentals, retroactive rentals, percentage
rentals, operating cost pass-throughs and other sums and charges payable by
Tenants under the any Tenant Leases. Delinquent Rentals shall be prorated
between Buyer and Seller as of the Close of Escrow but not until they are
actually collected by Buyer. Buyer shall have the right, but not the
obligation, to collect any delinquent Rentals; provided, however, Buyer agrees
to send invoices to Tenants for delinquent Rentals for a period of six(6)
months following the Close of Escrow. From and after the Close of Escrow,
Seller shall have the right to institute or continue any legal action to
collect delinquent Rentals under any Tenant Lease, provided that Seller shall
not be permitted to commence or continue any action to terminate the applicable
Tenant Lease or the Tenant’s right to possession of a portion of the Property
pursuant to any Tenant Lease. Buyer shall not be obligated to remit to Seller
any Rentals received from Tenants after the Close of Escrow unless such Tenants
are current in their Rental obligations for periods occurring from and after
the Close of Escrow. Delinquent Rentals collected by Buyer, net of the costs
of collection (including actual out-of-pocket attorneys’ fees), shall be
applied first to amounts currently due and then to amounts most recently
overdue. Buyer shall remit any amounts to which Seller is

	 	 	 
	 	 	
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entitled in accordance with this Section 9.1 to Seller immediately upon
receipt. Except as specified above, if either Buyer or Seller receives any
revenues attributable to the period during which it is not the owner of the
Property, said party shall promptly forward such amounts to the other party (if
such revenues are only partially attributable to the period during which said
party is not the owner of the Property, the amount paid to the other party
shall be based upon proration as of the Close of Escrow as set forth above).
Notwithstanding the foregoing, Seller shall be entitled to an increase in the
Purchase Price to the extent any rents or other amounts due as of the Close of
Escrow, and attributable to periods prior to the Close of Escrow, under the
Lease between Seller and Buyer remain unpaid.

          9.2 Property Taxes. All non-delinquent real property taxes on the
Property shall be prorated on an accrual basis based on the actual current tax
bill, but if such tax bill has not yet been received by Seller by the Close of
Escrow then the current year’s taxes shall be deemed to be one hundred two
percent (102%) of the amount of the previous year’s tax bill, so that Seller
pays all amounts that relate to the period prior to the Close of Escrow,
regardless of when such sums are billed, due or payable, and Buyer pays all
amounts relating to the period after the Close of Escrow. All delinquent taxes
and all assessments (including any assessments collected with the general real
property taxes which may be paid off), if any, on the Property shall be paid at
the Close of Escrow from funds accruing to Seller. All supplemental taxes
billed after the Close of Escrow for periods prior to the Close of Escrow shall
be paid promptly by Seller.

          9.3 Utilities. Except to the extent payable by Tenants directly to
service providers pursuant to the terms of their respective Tenant Leases, all
utility service charges for electricity, heat and air conditioning service,
other utilities, elevator maintenance, common area maintenance, taxes (other
than real estate taxes) such as rental taxes, other expenses incurred in
operating the Property that Seller customarily pays, and any other costs
incurred in the ordinary course of business of the management and operation of
the Project. Seller shall pay all such expenses that accrue prior to the Close
of Escrow and Buyer shall pay all such expenses accruing on the Close of Escrow
and thereafter. To the extent possible, Seller and Buyer shall obtain billings
and meter readings as of the Close of Escrow to aid in such prorations.

          9.4 Leasing Commissions and Monetary Concessions. [THE FOLLOWING
PROVISION APPLICABLE TO A RIGHT OF FIRST OFFER PURCHASE: Seller shall pay and
perform all leasing commissions and other monetary and other concessions,
including improvement allowances and improvement work which relate to any
Tenant Leases, including any renewals, extensions or expansions related
thereto, which are effective or completed before Contingency Date, and Buyer
shall pay all leasing commissions and other monetary and other concessions,
including improvement allowances and improvement work, which relate to any
Tenant Leases, including any renewals, extensions or expansions related
thereto, which are effective or remain to be completed, as applicable, from and
after the Contingency Date, and, if applicable, approved by Buyer pursuant to
Section 13.11 below.] [THE FOLLOWING PROVISION APPLICABLE TO A PURCHASE OPTION
PURCHASE: Seller shall pay and perform all leasing commissions and other
monetary and other concessions, including improvement allowances and
improvement work which relate to any Tenant Leases, including any renewals,
extensions or expansions related thereto, which are effective or completed
before the Effective Date, and Buyer shall pay all leasing commissions and
other monetary and other

	 	 	 
	 	 	
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concessions, including improvement allowances and improvement work, which
relate to any tenant leases, including any renewals, extensions or expansions
related thereto, which are effective or remain to be completed, as applicable,
from and after the Effective Date, and, if applicable, approved by Buyer
pursuant to Section 13.11.]

          9.5 Tenant Deposits. Buyer shall be credited with an amount equal to all
Tenant Deposits, prepaid rentals, cleaning fees and other deposits which have
not been previously applied by Seller in accordance with any Tenant Lease, plus
any interest accrued thereon, paid by Tenants to Seller or any other person
relative to the Project (and any interest accrued thereon for the benefit of a
Tenant) owed to any Tenants pursuant to the terms of their Tenant Leases.

          9.6 Service Contracts. Amounts payable under Service Contracts which
cannot be cancelled by their terms as provided in Section 13.6, below shall be
prorated on an accrual basis as of the Close of Escrow, and Seller shall pay
all charges related to terminating all Service Contracts which are required to
be terminated pursuant to Section 13.6 below.

     Except as set forth above, all prorations shall be made in accordance with
customary practice in the County. Five (5) business prior to the Closing Date,
Seller shall prepare and deliver to Buyer, for Buyer’s reasonable approval,
Seller’s proposed schedule of prorations. If and to the extent known and
agreed upon as of the Close of Escrow, prorations shall be paid by Buyer to
Seller (if the prorations result in a net credit to the Seller) or by Seller to
Buyer (if the prorations result in a net credit to the Buyer) by increasing or
reducing the cash to be paid by Buyer at the Close of Escrow. Any such
prorations not determined or not agreed upon as of the Close of Escrow shall be
paid by Buyer to Seller, or by Seller to Buyer, as the case may be, in cash as
soon as practicable following the Close of Escrow. A copy of the schedule of
prorations to the extent agreed upon by Buyer and Seller shall be delivered to
Escrow Holder at least one (1) business days prior to the Close of Escrow.

X

DISBURSEMENTS AND OTHER ACTIONS BY ESCROW HOLDER

     10.     Disbursements and Other Actions by Escrow Holder. Upon the Close of
Escrow, Escrow Holder shall promptly undertake all of the following (A) deliver
to the “County Recorder” and cause the Deed (with documentary transfer tax
information to be affixed after recording) and any other documents which the
parties hereto may mutually direct to be recorded in the Official Records of
the County and obtain conformed copies thereof for distribution to Buyer and
Seller, (B) direct the Title Company to issue the Title Policy to Buyer, (C)
disburse the Purchase Price, after adjustment pursuant to the terms of this
Agreement for expenses and prorations, to Seller and deliver the balance of the
funds placed in escrow by Buyer, if any, to Buyer, (D) disburse to Buyer a
conformed copy of the Deed and executed originals of the Tenant Lease
Assignment, the General Assignment, the Bill of Sale, the FIRPTA Certificate,
the Form 593, the Tenant Notification Letters and change of address notices
duly executed by Seller and any other documents (or copies thereof) deposited
into Escrow by Seller pursuant hereto, and (E) disburse to Seller a conformed
copy of the Deed and executed originals of the Tenant Lease Assignment, and the
General Assignment.

	 	 	 
	 	 	
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	 	-17-	
[Purchase Agreement]

 

XI

REPRESENTATIONS AND
WARRANTIES

     11.     Seller’s Representations and Warranties. In addition to any express
agreements of Seller contained herein, the following constitute representations
and warranties of Seller to Buyer which shall be true and correct as of the
date hereof and as of the Close of Escrow as if remade in a separate
certificate at that time, and which shall specifically survive, and shall not
merge into, the Close of Escrow and the recordation of the Deed. “To the best
of Seller’s knowledge” shall mean the information within the knowledge,
possession or reasonable control of the current head of property management of
Seller’s property management entity responsible for the Project, and “to
Seller’s actual knowledge” shall mean the actual knowledge of the current head
of property management of Seller’s property management entity responsible for
the Project, without the duty of investigation or inquiry.

          11.1 Authority. Seller has the legal power, right and authority to enter
into this Agreement and the instruments referenced herein, and to consummate
the transaction contemplated hereby. All requisite action (corporate, trust,
partnership or otherwise) has been taken by Seller in connection with the
entering into this Agreement and the instruments referenced herein, and the
consummation of the transaction contemplated hereby. No consent of any
partner, shareholder, creditor, investor, judicial or administrative body,
Authority or other party is required that has not been obtained. The
individuals executing this Agreement and the instruments referenced herein on
behalf of Seller and the partners, members, officers or trustees of Seller, if
any, have the legal power, right, and actual authority to bind Seller to the
terms and conditions hereof and thereof. This Agreement and all documents
required hereby to be executed by Seller are and shall be valid, legally
binding obligations of and enforceable against Seller in accordance with their
terms, subject only to applicable bankruptcy, insolvency, reorganization,
moratorium laws or similar laws or equitable principals affecting or limiting
the rights of contracting parties generally. Neither the execution and
delivery of this Agreement and the documents referenced herein, nor the
incurrence of the obligations set forth herein, nor the consummation of the
transaction herein contemplated, nor compliance with the terms of this
Agreement and the documents referenced herein conflict with or result in the
material breach of any terms, conditions or provisions of, or constitute a
default under, any bond, note, or other evidence of indebtedness or any
contract, indenture, mortgage, deed of trust, loan, partnership agreement,
lease, limited liability agreement or other agreements or instruments to which
Seller is a party or by which Seller is bound.

          11.2 Adverse Claims; Insolvency. Seller has not received written notice
of, and to the Seller’s actual knowledge, there are no, pending, threatened or
contemplated actions, suits, arbitrations, claims or proceedings, at law or in
equity, in which Seller is, or will be, a party by reason of Seller’s ownership
of the Property, which will affect Seller’s ability to consummate the
transactions contemplated hereunder or which will adversely affect the
Property, except as set forth on Exhibit “G”, if any, hereto. No attachments,
execution proceedings, assignments for the benefit of creditors, insolvency,
bankruptcy, reorganization or other proceedings are pending or, to Seller’s
actual knowledge, threatened, in writing against Seller or, to the best of
Seller’s knowledge, any members of Seller, nor are any of such proceedings
contemplated by Seller or, to

	 	 	 
	 	 	
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	 	-18-	
[Purchase Agreement]

 

the best of Seller’s knowledge, any general partner of Seller, except as
set forth on Exhibit “G” hereto.

          11.3 Default Notices and Governmental Regulations. To Seller’s actual
knowledge, and except as disclosed on Exhibit H, if any, Seller has received no
written notice from any Authority of any violations of Governmental
Regulations.

          11.4 Title of Seller. Except as set forth on Exhibit “I” hereto, if any,
(i) all of Seller’s right, title and interest in and to any Personal Property
or intangible property transferred hereby have been fully paid for and will not
be subject to any liens, encumbrances or claims of any kind upon the Close of
Escrow, (ii) the transfer and assignment to Buyer of Seller’s right, title and
interest in and to the Personal Property, intangible property and operating
agreements transferred hereunder, if any, does not require the consent of third
parties, and (iii) there do not exist any rights of first refusal or options to
purchase the Property which are superior to Buyer’s rights under this
Agreement.

          11.5 Service Contracts and Records and Plans. Except as set forth on
Exhibit “J” hereto, to the best of Seller’s knowledge, there are no service or
maintenance contracts, which will be obligations of the Buyer after the Close
of Escrow with respect to the Property, other than the Service Contracts
delivered to Buyer by Seller pursuant to this Agreement and which have been
approved by Buyer pursuant to the terms of this Agreement. To the best of
Seller’s knowledge, the Records and Plans to be delivered to Buyer under the
terms of this Agreement are all of such Records and Plans which are within the
possession or control of Seller.

          11.6 Tenant Leases. Exhibit “K” attached hereto, is a complete list of
all of the Tenant Leases affecting the Property. To the best of Seller’s
knowledge, (i) other than the Tenant Leases, there are no written leases,
subleases, occupancies or tenancy agreements, to which Seller is a party, in
effect pertaining to the Property, and Seller has no actual knowledge of any
oral agreements between Seller and anyone, including Tenants, with respect to
the occupancy of the Project; (ii) no Tenant Lease has been modified, amended
or altered in writing or otherwise, and no concessions, abatements or
adjustments have been granted to any Tenant, except as set forth in the Tenant
Leases; (iii) true and complete copies of all Tenant Leases have been provided
to Buyer; (iii) Seller has not given to any Tenant or received from any Tenant,
any notice of any default under any Tenant Lease which default remains uncured;
(iv) no guarantors of any of the Tenant Leases have been released by Seller
from any obligation related to the Tenant Leases; (v) neither Seller’s interest
in the Tenant Lease nor any of the rentals due or to become due under the
Tenant Leases will be, assigned, encumbered or subject to any liens at the
Close of Escrow, and (vi) except as set forth on Exhibit “K”, no leasing or
brokerage fees or commissions of any nature whatsoever shall be or become due
or owing after the Close of Escrow with respect to the Tenant Leases.

          11.7 Third Party Rights. Seller has not entered into any other contracts
for the sale of the Property which are currently in effect, nor do there exist
any rights of first refusal or options to purchase the Property, other than
Buyer’s rights under that certain Agreement re Right of First Offer to Purchase
and Option to Purchase, dated July 30, 2003 (the “Option Agreement”), by and
between Seller as Optionor thereunder and Buyer as Optionee thereunder.

	 	 	 
	 	 	
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	 	-19-	
[Purchase Agreement]

 

          11.8
Hazardous Materials. To the best of Seller’s knowledge, Seller has
not received any written notice of any violation of any laws relating to
Hazardous Materials with respect to the Property.

XII

BUYER’S REPRESENTATIONS AND WARRANTIES

     12.     Buyer’s
Representations and Warranties. In addition to any express
agreements of Buyer contained herein, which shall be true and correct as of the
date hereof and the Close of Escrow as if remade in a separate certificate at
that time, Buyer hereby represents and warrants to Seller as follows: Buyer
has the legal power, right and authority to enter into this Agreement and the
instruments referenced herein, and to consummate the transaction contemplated
hereby. All requisite action (corporate, trust, partnership or otherwise) has
been taken by Buyer in connection with the entering into this Agreement and the
instruments referenced herein, and the consummation of the transaction
contemplated hereby. No consent of any partner, shareholder, creditor,
investor, judicial or administrative body, Authority or other party is
required. The individuals executing this Agreement and the instruments
referenced herein on behalf of Buyer have the legal power, right and actual
authority to bind Buyer to the terms and conditions hereof and thereof. This
Agreement and all documents required hereby to be executed by Buyer are and
shall be valid, legally binding obligations of and enforceable against Buyer in
accordance with their terms, subject only to applicable bankruptcy, insolvency,
reorganization, moratorium laws or similar laws or equitable principals
affecting or limiting the rights of contracting parties generally.

          12.1 SALE “AS IS”. EXCEPT WITH RESPECT TO THE EXPRESS REPRESENTATIONS AND
WARRANTIES OF SELLER SET FORTH IN PARAGRAPH 11, -, BUYER HAS NOT RELIED UPON
AND WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY REPRESENTATION OR
WARRANTY OF SELLER OR ANY OF ITS RESPECTIVE AGENTS. EXCEPT WITH RESPECT TO THE
COVENANTS, REPRESENTATIONS AND WARRANTIES OF SELLER SET FORTH IN PARAGRAPH 11
AND 13, BUYER IS RELYING SOLELY UPON BUYER’S OWN, INDEPENDENT INSPECTION,
INVESTIGATION AND ANALYSIS OF THE PROPERTY AS BUYER DEEMS NECESSARY OR
APPROPRIATE IN SO ACQUIRING THE PROPERTY FROM SELLER, INCLUDING, WITHOUT
LIMITATION, AN ANALYSIS OF ANY AND ALL MATTERS CONCERNING THE CONDITION OF THE
PROPERTY AND ITS SUITABILITY FOR BUYER’S INTENDED PURPOSES, AND A REVIEW OF ALL
APPLICABLE LAWS, ORDINANCES, RULES AND GOVERNMENTAL REGULATIONS (INCLUDING, BUT
NOT LIMITED TO, THOSE RELATIVE TO BUILDING, ZONING AND LAND USE) AFFECTING THE
DEVELOPMENT, USE, OCCUPANCY OR ENJOYMENT OF THE PROPERTY. UPON CLOSING, EXCEPT
TO THE EXTENT OF THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER IN THIS
AGREEMENT, BUYER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING, BUT NOT
LIMITED TO, ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN
REVEALED BY BUYER’S INSPECTIONS AND INVESTIGATIONS. BUYER ACKNOWLEDGES AND
AGREES THAT UPON

	 	 	 
	 	 	
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	 	-20-	
[Purchase Agreement]

 

CLOSING, SELLER SHALL SELL AND CONVEY TO BUYER AND BUYER SHALL ACCEPT THE
PROPERTY “AS IS, WHERE IS,” WITH ALL FAULTS, EXCEPT TO THE EXTENT OF THE
EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER IN THIS AGREEMENT. SELLER IS
NOT LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS,
REPRESENTATIONS, OR INFORMATION PERTAINING TO THE PROPERTY FURNISHED BY ANY
REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON, UNLESS THE SAME
ARE SPECIFICALLY SET FORTH OR REFERRED TO IN THIS AGREEMENT. WITHOUT LIMITING
THE FOREGOING, EXCEPT TO THE EXTENT OF THE EXPRESS REPRESENTATIONS AND
WARRANTIES OF SELLER IN THIS AGREEMENT, SELLER SHALL HAVE NO LIABILITY TO BUYER
WITH RESPECT TO (A) THE POTENTIAL FOR FURTHER DEVELOPMENT OF THE PROPERTY, (B)
THE EXISTENCE OF VESTED LAND USE, ZONING OR BUILDING ENTITLEMENTS AFFECTING THE
PROPERTY, (C) THE MERCHANTABILITY OF THE PROPERTY OR FITNESS OF THE PROPERTY
FOR ANY PARTICULAR PURPOSE (BUYER AFFIRMING THAT BUYER HAS NOT RELIED ON
SELLER’S SKILL OR JUDGMENT TO SELECT OR FURNISH THE PROPERTY FOR ANY PARTICULAR
PURPOSE, AND THAT SELLER MAKES NO WARRANTY THAT THE PROPERTY IS FIT FOR ANY
PARTICULAR PURPOSE), (D) TAX CONSEQUENCES, (E) THE CONTENT OR ACCURACY OF ANY
REPORT, STUDY, OPINION OR CONCLUSION OF ANY SOILS, ENVIRONMENTAL OR OTHER
ENGINEER OR OTHER PERSON OR ENTITY WHO HAS EXAMINED THE PROPERTY OR ANY ASPECT
THEREOF, (F) THE CONTENT OR ACCURACY OF ANY INFORMATION RELEASED TO BUYER BY AN
ENGINEER OR PLANNER IN CONNECTION WITH THE DEVELOPMENT OF THE PROPERTY, OR (G)
THE CONTENT OR ACCURACY OF THE DOCUMENTS AND MATERIALS AND ANY OTHER
INFORMATION GIVEN TO BUYER BY SELLER WITH RESPECT TO THE PROPERTY, AND BUYER
HEREBY RELEASES SELLER FROM ANY LIABILITY ARISING OUT OF ANY CLAIM RELATED TO
ANY OF THE FOREGOING MATTERS SET FORTH IN THIS SECTION 12.1. THE TERMS AND
CONDITIONS OF THIS PARAGRAPH 12.1 SHALL EXPRESSLY SURVIVE THE CLOSE OF ESCROW
AND SHALL NOT BE MERGED WITH THE DEED. BUYER HAS FULLY REVIEWED THE
DISCLAIMERS AND WAIVERS SET FORTH IN THIS AGREEMENT WITH ITS COUNSEL AND
UNDERSTANDS THE SIGNIFICANCE AND EFFECT THEREOF. BUYER ACKNOWLEDGES AND AGREES
THAT THE DISCLAIMERS AND OTHER AGREEMENTS SET FORTH IN THIS AGREEMENT ARE AN
INTEGRAL PART OF THIS AGREEMENT AND THAT SELLER WOULD NOT HAVE AGREED TO SELL
THE PROPERTY TO BUYER FOR THE PURCHASE PRICE WITHOUT THIS DISCLAIMER AND OTHER
AGREEMENTS SET FORTH IN THIS AGREEMENT.

     BUYER ACKNOWLEDGES THAT IT HAS BEEN ADVISED BY LEGAL COUNSEL AND IS
FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH
PROVIDES AS FOLLOWS:

	 
	“A general release does not extend to claims which the creditor
	does not know or suspect to exist in his favor at the time of

	 	 	 
	 	 	
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	 	-21-	
[Purchase Agreement]

 

	 
	executing the release, which if known by him must have
	materially affected his settlement with the debtor.”

BUYER EXPRESSLY WAIVES AND RELINQUISHES ANY AND ALL RIGHTS OR BENEFITS IT MAY
HAVE UNDER, OR WHICH MAY BE CONFERRED UPON IT BY, THE PROVISIONS OF SECTION
1542 OF THE CALIFORNIA CIVIL CODE TO THE FULLEST EXTENT THAT IT MAY LAWFULLY
WAIVE SUCH RIGHTS OR BENEFITS PERTAINING TO THE SUBJECT MATTER OF THIS RELEASE.

	 	 	 
	BUYER’S INITIALS:	 	

XIII

OPERATIONS DURING ESCROW

     13.     Seller’s Covenants Regarding Operation of the Property Through the
Close of Escrow. From and after the Effective Date, through and including the
Close of Escrow, Seller, at its sole cost and expense, covenants and agrees to:

          13.1 Keep all existing insurance policies affecting the Property in full
force and effect;

          13.2 Use commercially reasonable efforts to keep in full force and effect
and/or renew all Licenses and Permits affecting the Property, to the extent not
the obligation of any other party, including any Tenants under the Tenant
Leases, including Buyer;

          13.3 Provide all services and continue to operate, manage and maintain the
Property (including mechanical equipment of every kind used in the operation
thereof) in such condition so that the Property shall be in substantially the
same condition on the Close of Escrow as on the Effective Date, reasonable wear
and tear excepted;

          13.4 Comply with all Governmental Regulations;

          13.5 Deliver to Buyer copies of any Operating Statements prepared after
the Effective Date;

          13.6 Not extend, renew, modify or replace any of the Service Contracts
without the prior written consent of Buyer, which consent may be withheld by
Buyer in its sole discretion [IF RIGHT OF FIRST OFFER PURCHASE: reasonable
discretion prior to the expiration of the Contingency Period, and sole
discretion thereafter] and Seller shall cancel all Service Contracts which are
required to be cancelled by Buyer pursuant to this Agreement as of the Close of
Escrow;

          13.7 Not, without the prior written consent of Buyer, convey any interest
in any Licenses and Plans, Permits and Records, affecting the Property, and
Seller will not subject the Property to any additional liens, encumbrances,
covenants, conditions, easements, rights of way or similar matters after the
Effective Date;

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-22-	
[Purchase Agreement]

 

          13.8 Not make any alterations to the Property, except (a) to the extent
required under existing Tenant Leases, or (b) if necessary to complete any
alterations commenced prior to the Effective Date; or (c) if necessary to
maintain the Property in the condition required under this Agreement or remove
any Personal Property therefrom;

          13.9 Pay for all capital and other improvements (including labor and
materials) which are performed or contracted for by Seller at or prior to
Effective Date. Any improvements if commenced after the Effective Date must be
approved by Buyer in its sole discretion provided, however, such approval shall
be deemed given if not denied by Buyer within five (5) business days after
Seller’s written request therefor;

          13.10 Keep Buyer timely advised of any repair or improvement required to
keep the Project in such condition as aforesaid and which costs in excess of
Ten Thousand Dollars ($10,000.00), which improvements must be approved by Buyer
in its reasonable discretion, except (a) to the extent required under existing
tenant leases, or (b) if commenced prior to the opening of escrow provided,
however, such approval shall be deemed given if not denied by Buyer within five
(5) business days of Seller’s request therefor;

          13.11 Not modify, extend, terminate or otherwise change any of the terms,
covenants or conditions of the Tenant Leases or enter into new leases or any
other obligations or agreements affecting the Project without the prior written
consent of Buyer, [THIS PROVISION APPLICABLE TO A PURCHASE OPTION PURCHASE:
which consent may be withheld in Buyer’s sole discretion,] [THIS PROVISION
APPLICABLE TO A RIGHT OF FIRST OFFER PURCHASE: which consent may (A) not be
unreasonably withheld by Buyer prior to the expiration of the Contingency
Period, and (B) may be withheld in Buyer’s sole discretion following the
expiration of the Contingency Period.] Without the prior written consent of
Buyer, which shall not be unreasonably withheld, Seller shall not terminate any
of the Tenant Leases, unless the Tenant thereunder shall have defaulted in the
payment of rent. In the event Buyer has not responded to Seller’s written
request for consent within five (5) business days after Seller’s delivery to
Buyer of all pertinent information concerning such Tenant Lease, obligation or
agreement, Buyer shall be deemed to have consented thereto;

          13.12 Not accept from any of the Tenants payment of rent more than one
month in advance (Seller shall be permitted to apply any Tenant Deposit to rent
or any other sum due from, or on account of any default by, any Tenant subject
to and in accordance with the terms of the applicable Tenant Lease); and

          13.13 Seller shall pay in full, prior to the Close of Escrow, all bills
and invoices for labor, goods, materials and services of any kind relating to
the Property and utility charges, relating to the period prior to the Close of
Escrow, provided the payment of such items is not the responsibility of any
Tenants (including Buyer) under the Tenant Leases. Any alterations,
installations, decorations and other work required to be performed by Landlord
prior to the Close of Escrow under the Tenant Leases will be completed and paid
for in full by the Close of Escrow or Buyer shall receive a credit against the
Purchase Price for the reasonable estimate of any cost to complete such work.

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-23-	
[Purchase Agreement]

 

          13.14 Promptly notify Buyer of any change in any condition with respect to
the Property or of any event or circumstance which makes any representation or
warranty of Seller under this Agreement untrue or misleading, or any covenant
of Buyer under this Agreement incapable or less likely of being performed, it
being understood that the Seller’s obligation to provide notice to Buyer shall
in no way relieve Seller of any liability for a breach by Seller of any of its
representations, warranties or covenants under this Agreement.

XIV

CONDEMNATION, DAMAGE AND
DESTRUCTION

     14.     Condemnation, Damage and Destruction.

          14.1 Condemnation. If, prior to the Close of Escrow, any material portion
of the Real Property or any of the rentable square footage of the Improvements
is taken, by eminent domain or otherwise (or is the subject of a pending,
threatened or contemplated taking which has not been consummated), or if the
access thereto or available parking area therefor is reduced or restricted so
that Buyer’s use and enjoyment of the Project is materially and adversely
affected, Seller shall immediately notify Buyer, in writing, of such fact. In
such event, Buyer shall have the option, in its sole discretion, to terminate
this Agreement upon written notice to Seller given not later than ten (10)
business days after receipt of Seller’s notice. If this Agreement is so
terminated, the provisions of Section 6 shall govern. If Buyer does not
exercise this option to terminate this Agreement, neither party shall have the
right to terminate this Agreement, and Seller shall have no obligation under
this Agreement to rebuild or restore the Property in any manner, but the Seller
shall assign and turn over, and the Buyer shall be entitled to receive and
keep, all awards for the taking by eminent domain which accrue to Seller for
periods after the Close of Escrow, and the parties shall proceed to consummate
the transaction contemplated by this Agreement pursuant to the terms hereof,
without modification of the terms of this Agreement and without any reduction
in the Purchase Price. Unless and until this Agreement is terminated, Seller
shall take no action with respect to any eminent domain proceeding without
obtaining Buyer’s prior written consent.

          14.2 Damage or Destruction. Prior to the Close of Escrow, and
notwithstanding the pendency of this Agreement, the entire risk of loss or
damage by earthquake, flood, landslide, fire or other casualty shall be borne
and assumed by Seller, except as otherwise provided in this Section. If, prior
to the Close of Escrow, any part of the Improvements is damaged or destroyed by
earthquake, flood, landslide, fire or other casualty, Seller shall immediately
notify Buyer, in writing, of such fact. If such damage or destruction is
“material”, Buyer shall have the option to terminate this Agreement upon
written notice to the Seller given not later than ten (10) business days after
receipt of Seller’s notice. For purposes hereof, “material” shall be deemed to be
any insured damage or destruction that shall take more than one hundred eighty
(180) days to repair, in Buyer’s good faith judgment. If this Agreement is so
terminated, the provisions of Section 6 shall govern. If Buyer does not
exercise this option to terminate this Agreement, neither party shall have the
right to terminate this Agreement and Seller shall assign and turn over, and
Buyer shall be entitled to receive and keep, all insurance proceeds payable to
it with respect to such destruction (which shall then be repaired or not at
Buyer’s option and cost), including any rent loss insurance applicable to
periods after the Close of Escrow, plus the

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-24-	
[Purchase Agreement]

 

Purchase Price shall be reduced by an amount equal to the deductible
amount with respect to the insurance and the parties shall proceed to
consummate the transaction contemplated by this Agreement pursuant to the terms
hereof without modification of the terms of this Agreement and without any
reduction in the Purchase Price (except as specifically set forth hereinabove).
If Buyer does not elect to terminate this Agreement by reason of any casualty,
Buyer shall have the right to participate in any adjustment of the insurance
claim.

XV

RIGHTS AND REMEDIES

     15.     Legal and Equitable Enforcement of this Agreement.

          15.1 Default by Seller. If the Close of Escrow and the consummation of
the transactions herein contemplated do not occur by reason of any default by
Seller, Buyer shall be entitled to terminate this Agreement and the return of
the Deposit (including all interest accrued thereon) and to pursue any other
remedy available to it at law or in equity, including the specific performance
of this Agreement, provided, however, as a condition precedent to Buyer’s right
under this Section 14.1 to obtain specific performance by Seller and to
commence an action therefor and to record a notice of lis pendens or other
notice or filing in the county records, Buyer shall have performed, or be in a
position, ready, willing and able, to the extent required by law, to fully
perform, all of its obligations under this Agreement, including, without
limitation, delivery to Escrow Holder of the balance of the Purchase Price (as
adjusted) pursuant to Section 8 hereof. In no event may Buyer seek, and Buyer
hereby waives and releases Seller from any claim for, any consequential damages
if either the transfer of the Property does not occur or if the transfer of the
Property does occur pursuant to an action for specific performance.

          15.2 DEFAULT BY BUYER. IF THE CLOSING AND THE CONSUMMATION OF THE
TRANSACTION HEREIN CONTEMPLATED DOES NOT OCCUR ON OR BEFORE THE CLOSING DATE AS
HEREIN PROVIDED BY REASON OF A MATERIAL UNCURED DEFAULT OF BUYER, BUYER AND
SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE
THE DAMAGES WHICH SELLER MAY SUFFER. THEREFORE, BUYER AND SELLER HEREBY AGREE
THAT A REASONABLE ESTIMATE OF THE TOTAL NET DETRIMENT THAT SELLER WOULD SUFFER
IN THE EVENT THAT BUYER DEFAULTS AND FAILS TO COMPLETE THE PURCHASE OF THE
PROPERTY IS AND SHALL BE, AS SELLER’S EXCLUSIVE REMEDY (WHETHER AT LAW OR IN
EQUITY), AN AMOUNT EQUAL TO THE DEPOSIT AND ALL INTEREST THEREON. SUBJECT TO
THE FINAL TWO SENTENCES OF THIS SECTION 15.2, SAID AMOUNT SHALL BE THE FULL,
AGREED AND LIQUIDATED DAMAGES FOR THE BREACH OF THIS AGREEMENT BY BUYER, ALL
OTHER CLAIMS TO DAMAGES OR OTHER REMEDIES BEING HEREIN EXPRESSLY WAIVED BY
SELLER. THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A
FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275
OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO
CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. BUYER AND

	 	 	 
	 	 	
ELECTRONIC ARTS INC.
	 	-25-	
[Purchase Agreement]

 

SELLER HEREBY WAIVE THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 3389.
UPON DEFAULT BY BUYER, THIS AGREEMENT SHALL TERMINATE AND NEITHER PARTY SHALL
HAVE ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EACH TO THE OTHER, EXCEPT FOR
THE RIGHT OF SELLER TO COLLECT SUCH LIQUIDATED DAMAGES FROM BUYER AND/OR ESCROW
HOLDER. FURTHERMORE, THE OPTION AGREEMENT SHALL IMMEDIATELY TERMINATE AND BE
OF NO FURTHER FORCE OR EFFECT EXCEPT WITH RESPECT TO THE OBLIGATION OF BUYER TO
EXECUTE A QUITCLAIM DEED AS SET FORTH THEREIN. NOTWITHSTANDING THE FOREGOING,
THE PROVISIONS OF THIS SECTION 15.2 SHALL NOT LIMIT BUYER’S OBLIGATIONS UNDER
SECTION 16.2 BELOW OR SELLER’S RIGHTS UNDER SECTION 16.8 BELOW.

	 	 	 
	
	 	

	BUYER’S INITIALS	 	
SELLER’S INITIALS

XVI

MISCELLANEOUS

     16.     Miscellaneous.

          16.1 Notices. Unless otherwise expressly provided herein, all notices or
other communications required or permitted hereunder shall be in writing, and
shall be personally delivered (including by means of professional messenger
service) or by nationally recognized overnight courier service, messenger
service, or registered or certified mail, postage prepaid, return receipt
requested. All written communications in accordance with the foregoing shall
be deemed given (i) three (3) days after the date it is posted if sent by mail,
or (ii) the date the personal or overnight courier delivery is made, or refused
by the addressee, at the address set forth below the signature of the
appropriate party, if delivered by 5:00 p.m. Los Angeles time on a business
day, or the next business day if delivered after 5:00 p.m. of a business day or
on a non-business day. Notices of change of address shall be given by written
notice as described in this Section.

          16.2 Broker. Upon the Close of Escrow, Seller shall pay from funds
accruing to Seller through Escrow, any brokerage commission and fees owed to
the Broker(s) in connection with the transactions contemplated by this
Agreement. Seller represents and warrants to Buyer, and Buyer represents and
warrants to Seller, that no other broker or finder has been engaged by it,
respectively, in connection with any of the transactions contemplated by this
Agreement, or to its knowledge is in any way connected with any of such
transactions. If any such claims for additional brokers’ or finders’ fees or
commissions in connection with the negotiation, execution or consummation of
this Agreement, then Buyer shall indemnify, save harmless and defend Seller
from and against such claims if they shall be based upon any statement,
representation or agreement made by Buyer, and Seller shall indemnify, save
harmless and defend Buyer if such claims shall be based upon any statement,
representation or agreement made by Seller.

	 	 	 
	 	

-26-	
ELECTRONIC ARTS INC.

[Purchase Agreement]

 

          16.3 Assignment. Buyer may not assign this Agreement, nor may any direct
or indirect interests in Buyer be transferred or assigned, at any time, except
to an “Affiliate” of Buyer. For purposes herein, an “Affiliate” shall mean any
of the following: (a) (an entity which is controlled by, controls or is under
common control with Buyer or an Affiliate of Buyer; (b) an entity which merges
with or acquires or is acquired by, Buyer or a parent or a subsidiary of
Buyer’s parent or Affiliate; (c) a transferee to a purchaser of all or
substantially all of the assets of Buyer or an entity which is controlled by,
controls or is under common control of Buyer; or (d) a transfer, by operation
of law or otherwise, in connection with the merger, consolidation or other
reorganization of Buyer or an entity which is controlled by, controls or is
under common control of Buyer. For purposes of this Agreement, “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.

          16.4 Partial Invalidity. If any term or provision of this Agreement or
the application thereof to any person or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this Agreement, or the application
of such term or provision to persons or circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby, and
each such term and provision of this Agreement shall be valid and be enforced
to the fullest extent permitted by law.

          16.5 Waivers. No waiver of any breach of any covenant or provision herein
contained shall be deemed a waiver of any preceding or succeeding breach
thereof, or of any other covenant or provision herein contained. No extension
of time for performance of any obligation or act shall be deemed an extension
of the time for performance of any other obligation or act.

          16.6 Survival. The covenants, agreements, representations and warranties
made herein shall survive the Close of Escrow for and shall not merge into the
Deed upon the recordation thereof in the Official Records.

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

          16.8 Professional Fees. If either party files any action or brings any
proceeding against the other arising out of this Agreement, whether or not such
action or proceeding is prosecuted to judgment (“Action”), then (1) the
unsuccessful party therein shall pay all costs incurred by the prevailing party
therein, including reasonable attorneys’ fees and costs, court costs and
reimbursements for any other expenses incurred in connection therewith, and (2)
as a separate right, severable from any other rights set forth in this
Agreement, the prevailing party therein the prevailing party shall be entitled
to recover its reasonable attorneys’ fees and costs incurred in enforcing any
judgment against the unsuccessful party therein, which right to recover
post-judgment attorneys’ fees and costs shall be included in any such judgment.
The right to recover post-judgment attorneys’ fees and costs shall (i) not be
deemed waived if not included in any judgment, (ii) survive the final judgment
in any Action, and (iii) not be deemed merged into such judgment. The rights
and obligations of the parties under this Section 16.8 shall survive the
termination of this Agreement.

	 	 	 
	 	

-27-	
ELECTRONIC ARTS INC.

[Purchase Agreement]

 

          16.9 Entire Agreement. This Agreement (including all Exhibits attached
hereto) and the Option Agreement and Profit Participation Agreement entered
into between buyer and Seller are the final expression of, and contain the
entire agreement between, the parties with respect to the subject matter hereof
and supersede all prior understandings with respect thereto. This Agreement
may not be modified, changed, supplemented or terminated, nor may any
obligations hereunder be waived, except by written instrument signed by the
party to be charged or by its agent duly authorized in writing or as otherwise
expressly permitted herein. The parties do not intend to confer any benefit
hereunder on any person, firm or corporation other than the parties hereto.

          16.10 Time of Essence. Seller and Buyer hereby acknowledge and agree that
time is strictly of the essence with respect to each and every term, condition,
obligation and provision hereof and that failure to timely perform any of the
terms, conditions, obligations or provisions hereof by either party shall
constitute a material breach of and a non-curable (but waivable) default under
this Agreement by the party so failing to perform.

          16.11 Construction. Headings at the beginning of each Section and
subparagraph are solely for the convenience of the parties and are not a part
of the Agreement. Whenever required by the context of this Agreement, the
singular shall include the plural and the masculine shall include the feminine
and vice versa. This Agreement shall not be construed as if it had been
prepared by one of the parties, but rather as if both parties had prepared the
same. Unless otherwise indicated, all references to Sections and subparagraphs
are to this Agreement. All exhibits referred to in this Agreement and the
Glossary of Terms are attached and incorporated by this reference. If the date
on which Buyer or Seller is required to take any action under the terms of this
Agreement occurs on a Saturday, Sunday or Federal or State holiday, then, the
action shall be taken on the next succeeding business day.

          16.12 Governing Law. The parties hereto acknowledge that this Agreement
has been negotiated and entered into in the State of California. The parties
hereto expressly agree that this Agreement shall be governed by, interpreted
under, and construed and enforced in accordance with the laws of the State of
California.

          16.13 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, and all of which,
together, shall constitute one and the same instrument.

          16.14 No Joint Venture. This Agreement shall not create a partnership or
joint venture relationship between Buyer and Seller.

          16.15 Confidentiality. Neither Seller nor Buyer, nor any of their agents,
brokers, or employees shall make any public announcement (including, without
limitation, any press release) or disclosure of any information related to this
Agreement to outside brokers or third parties, of any information concerning
the transaction contemplated hereby, before or after the Close of Escrow,
without the prior written consent of the other. This Section 16.15 shall
survive the closing or any termination or expiration of this Agreement.

	 	 	 
	 	

-28-	
ELECTRONIC ARTS INC.

[Purchase Agreement]

 

          16.16 Required Actions of Buyer and Seller. Buyer and Seller agree to
execute all such instruments and documents and to take all actions pursuant to
the provisions hereof in order to consummate the purchase and sale herein
contemplated and shall use their commercially reasonable best efforts to
consummate the transaction contemplated by this Agreement in accordance with
the provisions hereof.

          16.17 Indemnification. Seller agrees to indemnify, protect, defend and
hold harmless Buyer and its respective nominees, successors, assigns, parent
company (if any), officers, directors, partners, agents, employees and
beneficiaries from any and all third-party liabilities, claims, causes of
action, penalties, demands and expenses, of any kind or nature whatsoever
(including attorney’s fees and costs) arising out of, resulting from, or
relating to, any breach by Seller of the representations and warranties as set
forth in Section 11 of this Agreement, provided such representations and
warranties and Seller’s obligations hereunder shall only survive the Closing by
one (1) year following the Close of Escrow, any claim with respect thereto must
be brought within one (1) year following the Close of Escrow, and Seller’s
liability hereunder shall not exceed Two Million and No/100 Dollars
($2,000,000.00).

               16.17.1 Buyer hereby agrees to indemnify Seller against, and to hold
Seller harmless from, all losses, damages, costs and expenses, including
without limitation, legal fees and disbursements, incurred by Seller relating
to the Property which arise or result from acts, occurrences or matters that
take place after the Close of Escrow; provided, however, nothing contained
herein shall obligate Buyer with respect to, or negate or modify any liability
of Seller for a breach of Seller’s representations, warranties and covenants in
this Agreement.

          16.18 WAIVER OF JURY TRIAL. SELLER AND BUYER, TO THE EXTENT THEY MAY
LEGALLY DO SO, HEREBY EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION, CAUSE OF ACTION, OR PROCEEDING ARISING UNDER OR WITH RESPECT TO
THIS AGREEMENT, OR IN ANY WAY CONNECTED WITH, OR RELATED TO, OR INCIDENTAL TO,
THE DEALINGS OF THE PARTIES HERETO WITH RESPECT TO THIS AGREEMENT OR THE
TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND IRRESPECTIVE OF WHETHER SOUNDING IN CONTRACT, TORT, OR
OTHERWISE. TO THE EXTENT THEY MAY LEGALLY DO SO, SELLER AND BUYER HEREBY AGREE
THAT ANY SUCH CLAIM, DEMAND, ACTION, CAUSE OF ACTION, OR PROCEEDING SHALL BE
DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE AN
ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE OTHER PARTY OR PARTIES HERETO TO WAIVER OF ITS
OR THEIR RIGHT TO TRIAL BY JURY.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date and year hereinabove written.

	 	 	 
	 	

-29-	
ELECTRONIC ARTS INC.

[Purchase Agreement]

 

	 	 	 
	“BUYER”	 	
“SELLER”
	 	 	 
	ELECTRONIC ARTS INC.	 	
PLAYA VISTA – WATER’S EDGE, LLC,
	a Delaware Corporation	 	
a Delaware limited liability company

	 	 	 	 	 
	By:	 	
By:
	 	CA-Playa Vista Water’s Edge Limited Partnership,

	 	
	 	 	a Delaware limited partnership,
	 	 	 	 	its Co-Manager
	Its:	 	 	 	 
	 	
	 	 	 

	 	 	 	 	 	 
	By:	 	 	
By:
	 	EOM GP, L.L.C.,
	 	
	 	 	 	a Delaware limited liability company,
	 	 	 	 	 	its general partner
	Its:	 	 	 	 	 
	 	
	 	 	 	 

	 	 	 
	By:   	 	
Equity Office Management, L.L.C.,

a Delaware limited liability company,

its non-member manager
	 
	 	 	By:
	 	 	

	 	 	Name: 
	 	 	Its:
	 	 	

	 	 	 	 
	 	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:

	 	 	 
	 	

-30-	
ELECTRONIC ARTS INC.

[Purchase Agreement]

 

	 	 	 
	Address for notices:	 	
Address for notices:
	 	 	 
	At Buyer’s address at the Property 

Attention: Head of Facilities and 

                 
   COO EALA	 	
Playa Vista – Water’s Edge, LLC

c/o Equity Office Properties

               550 South Hope Street, Suite 2200

Los Angeles, California 90071

Attention: Regional Vice President

Facsimile
No.:                                    

and

c/o Maguire Partners

555 West Fifth Street, Suite 500

Los Angeles, California 90013

Attention: Partner – Leasing

Facsimile No.:                                    
	 	 	 
	With copies to:	 	
With copies to:
	 	 	 
	Electronic Arts 

209 Redwood Shores Parkway 

Redwood City, California 94065 

Attention: General Counsel	 	
Equity Office

2 North Riverside Plaza

Suite 2100

Chicago, Illinois 60606

Attention: Chief Legal Counsel
	 	 	 
	And	 	
And:
	 	 	 
	209 Redwood Shores Parkway 

Redwood City, California 94065 

Attention: Senior Director of Facilities and

              
   Corporate Services	 	
Allen, Matkins, Leck, Gamble & Mallory

1901 Avenue of the Stars

Suite 1800

Los Angeles, California 90067

Attention: Anton N. Natsis, Esq.

Facsimile No.: (310) 788-2410

	 	 	 
	 	
-31-	
ELECTRONIC ARTS INC.

[Purchase Agreement]

 

EXHIBIT A

LEGAL DESCRIPTION

[TO BE PROVIDED]

	 	 	 
	 	EXHIBIT A

-1-	
ELECTRONIC ARTS INC.

[Purchase Agreement]

 

 

EXHIBIT B

	 	 	RECORDING REQUESTED BY
	 
	 	 	WHEN RECORDED MAIL TO

AND MAIL TAX STATEMENTS TO

NAME

ADDRESS

CITY

STATE & ZIP

GRANT DEED

	 	 	 	 	 
	TITLE ORDER NO.	ESCROW NO.	 	APN NO.

	THE UNDERSIGNED GRANTOR(s) DECLARE(s)
	 	 	DOCUMENTARY TRANSFER TAX is not shown pursuant to Section 11932 of the
Revenue and Taxation Code.

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,

	 	 	 
	

	, a	

hereby GRANT(s) to

	 	 	 
	

	, a	

the following described real property
in the County of             Los Angeles,
       State of California:

See Exhibit A attached hereto and incorporated herein by this reference.

	 	 	 	 	 	 	 	 

	Dated:	

	, 20	

	

	,
	 	 	 	 	 	 	 	 
	 	 	 	 	a	

	 	 	 	 	 	 	 	 
	 	 	 	 	By:	

	 	 	 	 	 	 	 	 
	 	 	 	 	 	Its:	

	 	 	 
	 	EXHIBIT B
-1-	
ELECTRONIC ARTS INC.

[Purchase Agreement]

 

ACKNOWLEDGMENT

	 	 	 	 	 	 	 
	STATE OF CALIFORNIA	 	 	 	)	 	 
	 	 	 	 	)	 	SS.
	COUNTY OF ___________________	 	 	 	)	 	 

           On
           before me,
         , personally appeared
          , personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 
	 	

	 	NOTARY
PUBLIC             
	 	State of
California              

	 	 	 
	 	EXHIBIT B

-2-	
ELECTRONIC ARTS INC.

[Purchase Agreement]

 

EXHIBIT A TO EXHIBIT B

LEGAL DESCRIPTION

[TO BE PROVIDED]

	 	 	 
	 	EXHIBIT A TO
	
 
	 
	 	
EXHIBIT B

-1-
	

ELECTRONIC ARTS INC.

[Purchase Agreement]

 

EXHIBIT C

TENANT LEASE ASSIGNMENT

	 	 	 
	RECORDING REQUESTED BY AND
	WHEN RECORDED MAIL TO:
	

	

	

	Attn:
	 	 	

MAIL TAX STATEMENTS TO:

Same as Above

(Above Space for Recorder’s Use Only)

TENANT LEASE ASSIGNMENT

     THIS
TENANT LEASE ASSIGNMENT (“Assignment”) is made this
     day of
                         ,
20     , by and between
                                      (“Assignor”) and
                                
(“Assignee”).

WITNESSETH:

     Under that certain Agreement of Purchase and Sale and Joint Escrow
Instructions
dated         ,
20        , (“Agreement”), Assignor
is obligated to assign to Assignee any and all of Assignor’s right, title and
interest in and to all leases, licenses, tenancy agreements or occupancy
agreements relative to the real property (“Real Property”) described in Exhibit
“A” attached hereto, together with all rents, issues and profits thereunder
(collectively, “Tenant Leases”) and all security deposits, plus any interest
accrued thereon, paid by tenants of the Property to Assignor or any other
person (“Tenant Deposits”), which Tenant Leases and Tenant Deposits are set
forth on Exhibit “B” attached hereto. The term “Tenant Leases” specifically
excludes the “Lease” (as defined in the Agreement) between Assignee and
Assignor.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Assignor hereby assigns, sells,
transfers, sets over and delivers unto Assignee all of Assignor’s estate,
right, title and interest in and to the Tenant Leases and the Tenant Deposits
and Assignee hereby accepts such assignment.

     Assignor hereby covenants that Assignor will, at any time and from time to
time upon written request therefor, execute and deliver to Assignee, Assignee’s
successors, nominees or assigns, such reasonable documents as Assignee may
reasonably request in order to fully assign and transfer to and vest in
Assignee or Assignee’s successors, nominees and assigns the rights assigned
hereunder.

	 	 	 
	 	EXHIBIT C	
ELECTRONIC ARTS INC.
	 	-1-	
[Purchase Agreement]

 

 

     Assignee hereby assumes the performance of all of the terms, covenants and
conditions imposed upon Assignor as landlord under the Tenant Leases accruing
or arising on or after the date of recordation of this Assignment.

     Assignor hereby agrees to indemnify, defend, protect and hold harmless
Assignee, Assignee’s agent and Assignee’s and their successors and assigns from
an against any and all claims, losses, liabilities and expenses, including
reasonable attorneys’ fees, suffered or incurred by Assignee by reason of any
breach by Assignor prior to the date of recordation hereof, of any of
Assignor’s obligations under the Tenant Leases (specifically excluding the
Lease) or with respect to Tenant Deposits.

     Assignee hereby agrees to indemnify, defend, protect and hold harmless
Assignor, Assignor’s agents and Assignor’s and their successors and assigns
from an against any and all claims, losses, liabilities and expenses, including
reasonable attorneys’ fees, suffered or incurred by Assignor by reason of any
breach by Assignee from and after the date of recordation hereof, of any of
Assignee’s obligations under the Tenant Leases or with respect to Tenant
Deposits.

     In the event of the bringing of any action or suit by a party hereto
against another party hereunder by reason of any breach of any of the
covenants, conditions, agreements or provisions on the part of the other party
arising out of this Assignment, then in that event the prevailing party shall
be entitled to have and recover of and from the other party all costs and
expenses of the action or suit, including reasonable attorneys’ fees.

     This Assignment may be executed simultaneously in counterparts, each of
which shall be deemed an original, but all of which, together, shall constitute
one and the same instrument.

     This Assignment shall be binding upon and inure to the benefit of the
successors, assignees, personal representatives, heirs and legatees of all the
respective parties hereto.

     This Assignment shall be governed by, interpreted under, and construed and
enforceable in accordance with, the laws of the State of California.

     IN WITNESS WHEREOF, Assignor and Assignee have executed and delivered this
Assignment as of the day and year first above written.

	 	 	 	 	 	 	 
	 	,	 
	
	 	

	a	 	a
	 	

	 	 	 	

	 	 	 	 	 	 	 
	By:	 	 	 	By:	 	 
	 	

	 	 	

	 	 	 	 	 	 	 
	 	Its:	 	Its:	 	 	 
	 	 	

	 	

	 	“Assignor”	 	 	“Assignee”

	 	 	 
	 	EXHIBIT C	
ELECTRONIC ARTS INC.
	 	-2-	
[Purchase Agreement]

 

 

EXHIBIT A TO EXHIBIT C

LEGAL DESCRIPTION OF REAL PROPERTY

[TO BE PROVIDED]

	 	 	 	 	 
	 	 	
EXHIBIT A TO	 	 
	 	 	
EXHIBIT C
	 	ELECTRONIC ARTS INC.
	 	 	
-1-
	 	[Purchase Agreement]

 

 

EXHIBIT B TO EXHIBIT C

LIST OF TENANT LEASES AND
TENANT DEPOSITS

[TO BE PROVIDED PRIOR TO CLOSING]

	 	 	 	 	 
	 	 	
EXHIBIT B TO	 	 
	 	 	
EXHIBIT C
	 	ELECTRONIC ARTS INC.
	 	 	
-1-
	 	[Purchase Agreement]

 

 

ACKNOWLEDGMENT

	 	 	 	 	 	 	 	 	 
	STATE OF CALIFORNIA	)	 	 	 
	 	 	 	 	 	)	 	SS.	 
	COUNTY OF ___________________	)	 	 	 
	 	 	 	 	 	 	 	 

               On
                      
before me,
                               , personally appeared                                , personally known
to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 
	 	 	

	 	 	
NOTARY PUBLIC
	 	 	
State of California

	 	 	 	 	 	 	 	 	 
	STATE OF CALIFORNIA	)	 	 	 
	 	 	 	 	 	)	 	SS.	 
	COUNTY OF ___________________	)	 	 	 
	 	 	 	 	 	 	 	 

     On
                               before me,                               ,
personally appeared
                              , personally known
to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 
	 	 	

	 	 	
NOTARY PUBLIC
	 	 	
State of California

	 	 	 	 	 
	 	 	
EXHIBIT B TO	 	 
	 	 	
EXHIBIT C
	 	ELECTRONIC ARTS INC.
	 	 	
-2-
	 	[Purchase Agreement]

 

 

EXHIBIT D

GENERAL ASSIGNMENT

     THIS GENERAL ASSIGNMENT (“Assignment”) is made this           day of
          , 20     , by and between      
                         , a                          
(“Assignor”) and                     , a
               (“Assignee”)

WITNESSETH:

     Assignor and Assignee entered into that certain Agreement of Purchase and
Sale and Joint Escrow Instructions dated as of      , 20     
(“Agreement”) respecting the sale of certain “Property”, including the “Real
Property” described in Exhibit “A” and the “Improvements” located thereon (all
as defined in the Agreement).

     Under the Agreement, Assignor is obligated to assign to Assignee any and
all of its right, title and interest in and to:

     (a)  certain service agreements, construction contracts, architects’
agreements, brokerage agreements, parking agreements, consultants’ agreements,
maintenance contracts, warranties, guarantees, management contracts, bonds and
all other contracts and agreements relating to the Real Property and
Improvements, together with all supplements, amendments and modifications
thereto, relating to the Property (“Service Contracts”);

     (b)  to the extent assignable, all licenses, permits, certificates of
occupancy, approvals, dedications, subdivision maps and entitlements issued,
approved or granted by the “Authorities” (as that term is defined in the
Agreement) or otherwise in connection with the Property; the use of the name
“[PROJECT NAME]” and any other trade names, trademarks, and logos used by
Assignor in the operation and identification of the Improvements and/or the
Real Property (as that term is defined in the Agreement); any and all
development rights and other intangible rights, title and interests, privileges
and appurtenances owned by Assignor and in any way related to or used in
connection with the Property and its operation; and all licenses, consents,
easements, rights of way and approvals from private parties to use utilities
and permit vehicular and pedestrian ingress and egress to the Real Property and
the Improvements (“Licenses and Permits); and

     (c)  all preliminary, final and proposed building plans and specifications
(including “as-built” drawings) respecting the Improvements, and all structural
reviews, architectural drawings and engineering, soils, seismic, geologic and
architectural reports, studies and certificates and other documents pertaining
to the Property which are within the possession of or under the control of
Assignor and such additional plans, specifications, reports, studies maintained
or prepared after the date of the Agreement (“Records and Plans).

	 	 	 
	 	EXHIBIT D	
ELECTRONIC ARTS INC.
	 	-1-	
[Purchase Agreement]

 

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Assignor hereby assigns, sells,
transfers, sets over and delivers unto Assignee all of Assignor’s estate,
right, title and interest in and to the Service Contracts, Licenses and Permits
and Records and Plans and Assignee hereby accepts such assignment.

     Assignor hereby covenants that Assignor will, at any time and from time to
time, upon written request therefor, execute and deliver to Assignee,
Assignee’s successor, nominees and assigns, any reasonable documents which
Assignee, Assignee’s successors, nominees and assigns may reasonably request in
order to fully assign and transfer to and vest in Assignee, or Assignee’s
successors the rights conveyed hereunder.

     Assignee hereby assumes the performance of all of the terms, covenants and
conditions imposed upon Assignor under the Service Contracts, Licenses and
Permits, and Records and Plans accruing or arising on or after the date of
recordation of the Deed (as defined in the Agreement).

     Assignee hereby agrees to indemnify, defend, protect and hold harmless
Assignor, Assignor’s agents and Assignor’s and their successors and assigns
from and against any and all claims, losses, liabilities and expenses,
including reasonable attorneys’ fees, suffered or incurred by Assignor by
reason of any breach by Assignee from and after the date of recordation of the
Deed of any of Assignee’s obligations under the Service Contracts, Licenses and
Permits or Records and Plans.

     Assignor hereby agrees to indemnify, defend, protect and hold harmless
Assignee, Assignee’s agents and Assignee’s and their successors and assigns
from and against any and all claims, losses, liabilities and expenses,
including reasonable attorneys’ fees, suffered or incurred by Assignee by
reason of any breach by Assignor prior to the date of recordation of the Deed
of any of Assignor’s obligations under the Service Contracts, Licenses and
Permits or Records and Plans.

     In the event of the bringing of any action or suit by a party hereto
against another party hereunder by reason of any breach of any of the
covenants, conditions, agreements or provisions on the part of the other party
arising out of this Assignment, then in that event the prevailing party shall
be entitled to have and recover of and from the other party all costs and
expenses of the action or suit, including reasonable attorneys’ fees.

     This Assignment shall be binding upon and inure to the benefit of the
successors, assignees, personal representatives, heirs and legatees of all the
respective parties hereto.

     This Assignment shall be governed by, interpreted under, and construed and
enforceable in accordance with, the laws of this State of California.

     This Assignment may be executed in any number of counterparts, each of
which shall be deemed an original, and all of which, together, shall constitute
one and the same instrument.

	 	 	 
	 	EXHIBIT D	
ELECTRONIC ARTS INC.
	 	-2-	
[Purchase Agreement]

 

     IN WITNESS WHEREOF, Assignor and Assignee have executed and delivered this
Assignment as of the day and year first above written.

	 	 	 	 	 	 	 
	
	 	

	a	 	a
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	By:	 	 	 	By:	 	 
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	 	Its:	 	 	Its:	 	 
	 	 	

	 	 	 	

	 	 	
“Assignor”
	 	 	 	“Assignee”

	 	 	 
	 	EXHIBIT D	
ELECTRONIC ARTS INC.
	 	-3-	
[Purchase Agreement]

 

EXHIBIT A TO EXHIBIT D

LEGAL DESCRIPTION OF REAL
PROPERTY

[TO BE PROVIDED]

	 	 	 	 	 
	 	 	
EXHIBIT A TO	 	 
	 	 	
EXHIBIT D
	 	ELECTRONIC ARTS INC.
	 	 	
-1-
	 	[Purchase Agreement]

 

 

EXHIBIT E

TRANSFEROR’S CERTIFICATE
OF NON-FOREIGN STATUS

     Section 1445 of the Internal Revenue Code provides that a transferee
(purchaser) of a U.S. real property interest must withhold tax if the
transferor (seller) is a foreign person. To inform ELECTRONIC ARTS INC., a
Delaware corporation (“Transferee”), that withholding of
tax under § 1445 of
the Internal Revenue code is not required upon the disposition of a U.S. real
property interest by
                          (“Transferor”)
Transferor hereby certifies:

	 	1.	 	Transferor is not a foreign corporation, foreign partnership,
foreign trust, or foreign estate (as those terms are defined in the
Internal Revenue Code and Income Tax Regulations).
	 
	 	2.	 	Transferor’s Federal Employer Identification Number is
                          .
	 
	 	3.	 	Transferor’s office address is:

	 	 	 
	

	
	 
	 	 	
   ; and
	

	 	4.	 	The address or description of the property which is the subject
matter of the disposition is                          .

     Transferor understands that this certification may be disclosed to the
Internal Revenue Service by Transferee and that any false statement contained
herein could be punished by fine, imprisonment, or both.

     Under penalty of perjury, Transferor declares that (a) it has examined
this certification, (b) to the best of its knowledge and belief, this
certification is true, correct and complete, and (c) the individual executing
this certification on behalf of Transferor has full authority to do so.

	 	 	 	 	 
	 	 	

	 	 	
a	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	
Dated:	 	 
	 	 	 	 	

	 	 	 
	 	EXHIBIT E	
ELECTRONIC ARTS INC.
	 	-1-	
[Purchase Agreement]

 

 

EXHIBIT F

TENANT NOTIFICATION LETTER

	 	 	 	 	 
	 	, 2003	 	
 	 
	
	 	 	 	 

	 	 	 
	To:All Tenants	 	
 
	
	 	 
	
	 	 

	 	 	 
	Re:	 	
Your lease (the “Lease”) at that certain property located at
the above addresses and commonly known as
                                    (the
“Property”)

Ladies and Gentlemen:

     You are
hereby notified that
                               ,
                                (the “Seller”), has sold the Property to
                               ,
a
                               (“Buyer”), as of the date of this Tenant Notice Letter set
forth above (the “Closing Date”), and in connection with such sale the Seller
has assigned and transferred its interest in the Lease, and delivered any and
all security deposits thereunder or relating thereto to Buyer, and Buyer has
assumed the performance of all of the Seller’s obligations accruing or arising
under the Lease from and after the Closing Date. Accordingly, (i) all of your
obligations under the Lease from and after the Closing Date (including your
obligations to pay rent and fulfill your insurance requirements) shall be
performable to and for the benefit of Buyer, its successors and assigns and
(ii) all of the obligations of the “landlord” under the Lease (including any
obligations to repay or account for any security deposits thereunder) from and
after the Closing Date shall be the binding obligations of Buyer and its
successors and assigns.

	 	 	 
	 	EXHIBIT F	
ELECTRONIC ARTS INC.
	 	-1-	
[Purchase Agreement]

 

     The address of Buyer for all purposes under the Lease (including the
payments of rentals, the recoupment of and security deposits and the giving of
any notices provided for in the Lease) is:

	 	 	 	 	 
	 	 	

	 	 	

	 	 	

	 	 	
Attention	 	 
	 	 	 	 	

	 	 	 	 	Very truly yours,

	 	 	 	 	 
	 	 	

	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	[Name]
	 	 	 	 	[Title]

	 	 	 
	 	EXHIBIT F	
ELECTRONIC ARTS INC.
	 	-2-	
[Purchase Agreement]

 

 

EXHIBIT G

ADVERSE CLAIMS; INSOLVENCY

[TO BE COMPLETED PRIOR TO EXECUTION OF THE APPLICABLE PURCHASE

AGREEMENT]

	 	EXHIBIT G
-1-
	 	ELECTRONIC ARTS INC.

[Purchase Agreement]

 

EXHIBIT H

NOTICES

[TO BE COMPLETED PRIOR TO EXECUTION OF THE APPLICABLE PURCHASE

AGREEMENT]

	 	 	 
	 	EXHIBIT H	
ELECTRONIC ARTS INC.
	 	-1-	
[Purchase Agreement]

 

EXHIBIT I

EXCEPTIONS TO TITLE OF SELLER

[TO BE COMPLETED PRIOR TO EXECUTION OF THE APPLICABLE PURCHASE

AGREEMENT]

	 	 	 
	 	EXHIBIT I	
ELECTRONIC ARTS INC.
	 	-1-	
[Purchase Agreement]

 

EXHIBIT J

SERVICE CONTRACTS

[TO BE COMPLETED PRIOR TO EXECUTION OF THE APPLICABLE PURCHASE

AGREEMENT]

	 	 	 
	 	EXHIBIT J	
ELECTRONIC ARTS INC.
	 	-1-	
[Purchase Agreement]

 

EXHIBIT K

TENANT LEASES

[TO BE COMPLETED PRIOR TO EXECUTION OF THE APPLICABLE PURCHASE

AGREEMENT]

	 	EXHIBIT
K
-1-
	 	ELECTRONIC ARTS INC.

[Purchase Agreement]

 

EXHIBIT L

BILL OF SALE

     THIS
BILL OF SALE (“Bill of Sale”) is made this
           day
of
                    ,
20     , by
                              , a                          
(“Seller”), in favor of
                    ,
a
                     (“Buyer”).

WITNESSETH:

     Seller and Buyer entered into that certain Agreement of Purchase and Sale
and Joint Escrow Instructions dated as of
                    ,
20      (“Agreement”) respecting the sale of certain “Property,” as that term is
defined in the Agreement.

     Under the terms of the Agreement, Seller is obligated to transfer to Buyer
any and all of its right, title and interest in and to all equipment,
appliances, tools, machinery, supplies, building materials and other personal
property of every kind and character owned by Seller and attached to,
appurtenant to, located in or used in connection with the operation of the
improvements (“Improvements”) commonly known as                [PROJECT NAME]
               and located on the real property, described in Exhibit “A” attached hereto,
including, without limitation, (A) all preliminary, final and proposed building
plans and specifications (including “as-built” drawings) respecting the
Improvements, (B) all structural reviews, architectural drawings and
engineering, soils, seismic, geologic and architectural reports, studies and
certificates and other documents pertaining to the Property which are within
the possession or the control of Seller, and (C) those items described on the
“Personal Property Schedule,” as that term is defined in the Agreement
(collectively, the “Personal Property”).

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Seller does hereby absolutely and
unconditionally give, grant, bargain, transfer, sell, set over, assign, convey,
release, confirm and deliver to Buyer all of the Personal Property.

     Seller hereby covenants that Seller will, at any time and from time to
time upon written request therefor, execute and deliver to Buyer, Buyer’s
successors, nominees or assigns, such documents as Buyer or they may reasonably
request in order to fully assign and transfer to and vest in Buyer or Buyer’s
successors, nominees and assigns the rights or property conveyed herein.

     This Bill of Sale shall be binding upon and inure to the benefit of the
successors, assigns, personal representatives, heirs and legatees of Buyer and
Seller.

     This Bill of Sale shall be governed by, interpreted under, and constructed
and enforceable in accordance with, the laws of the State of California.

	 	EXHIBIT
L
-1-
	 	ELECTRONIC ARTS INC.

[Purchase Agreement]

 

     IN WITNESS WHEREOF, Seller has executed and delivered this Bill of Sale as
of the date first set forth hereinabove.

	 	 	 	 	 		 
	 	 	

	,
	 	 	
a

	 
	 	 	 	 			 
	 	 	
By:

	 
	 	 	
Its:

	 
	 	 	 	 			 
	 	 	 	
“Seller”		 

	 	EXHIBIT
L
-2-
	 	ELECTRONIC ARTS INC.

[Purchase Agreement]

 

EXHIBIT A TO EXHIBIT L

LEGAL DESCRIPTION OF REAL PROPERTY

[TO BE PROVIDED]

EXHIBIT A TO

	 	EXHIBIT
L
-1-
	 	ELECTRONIC ARTS INC.

[Purchase Agreement]

 

EXHIBIT M

DESCRIPTION OF THE FIELD

[TO BE PROVIDED]

	 	EXHIBIT
M
-1-
	 	ELECTRONIC ARTS INC.

[Purchase Agreement]

 

EXHIBIT N

TENANT ESTOPPEL CERTIFICATE

     The undersigned as Tenant under that certain Lease (the “Lease”) made and
entered into as of
          ,
200      by and between
                          as
Landlord, and the undersigned as Tenant, for Premises on the
           floor(s)
of the office building located at                ,                
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, the
Term commenced on                          , and the Term expires on                          , and the
undersigned has no option to terminate or cancel the Lease or to purchase all
or any part of the Premises of the Building and/or the Project.

3.        Fixed Rent became payable on                               .

4.        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.

5.        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:

 

 

 

 

6.        All monthly installments of Fixed Rent, all Additional Rent and all monthly
installments of estimated Additional Rent have been paid when due
through                     . The current monthly installment of Fixed Rent is $                    .

7.        To Tenant’s 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. In addition, the undersigned has not
delivered any notice to Landlord regarding a default by Landlord thereunder.

8.        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.

9.        As of the date hereof, there are no existing defenses or offsets, or, to the
undersigned’s knowledge claims or any basis for a claim, that the undersigned
has against Landlord.

10.        If Tenant is a corporation or partnership, each individual executing this
Estoppel Certificate on behalf of Tenant hereby represents and warrants that
Tenant is a duly formed and

	 	EXHIBIT
N
-1-
	 	ELECTRONIC ARTS INC.

[Purchase Agreement]

 

existing entity qualified to do business in California and that Tenant has full
right and authority to execute and deliver this Estoppel Certificate and that
each person signing on behalf of Tenant is authorized to do so.

11.        There are no actions pending against the undersigned under the bankruptcy
or similar laws of the United States or any state.

12.        Other than in compliance with all applicable laws and incidental to the
ordinary course of the use of the Premises, the undersigned has not used or
stored any hazardous substances in the Premises.

13.        To the undersigned’s knowledge, all tenant improvement work to be performed
by Landlord under the Lease has been completed in accordance with the Lease and
has been accepted by the undersigned and all reimbursements and allowances due
to the undersigned under the Lease in connection with any tenant improvement
work have been paid in full.

                    The undersigned acknowledges that this Estoppel Certificate may be
delivered to Landlord or to a prospective mortgagee or 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 such loan or acquiring such property.

Executed at
            
on the day of
            ,
200      .

	 	 	 	 	 		 
	 		“Tenant”:			 
	 	 	 	 	 		 
	 	 	

	,
	 	 	
a

	 
	 	 	 	 			 
	 	 	
By:

	 
	 	 	
Its:

	 
	 						 
	 	 	
By:

	 
	 	 	
Its:

	 

	 	EXHIBIT
N
-2-
	 	ELECTRONIC ARTS INC.

[Purchase Agreement]exv10w31

 

EXHIBIT 10.31

EXECUTION ORIGINAL

PROFIT PARTICIPATION AGREEMENT

BETWEEN

PLAYA VISTA – WATER’S EDGE, LLC.,

A DELAWARE LIMITED LIABILITY COMPANY

AND

ELECTRONIC ARTS INC.,

A DELAWARE CORPORATION

	 	 	 
	 	
 
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	

	1.	 	
Definitions
	 	 	1	 
	2.	 	
Payment of Profit Participation Allocation
	 	 	5	 
	3.	 	
Financial Records and Statements of Playa
	 	 	8	 
	4.	 	
Sale of Portion of Phase I
	 	 	9	 
	5.	 	
Default and Remedies
	 	 	9	 
	6.	 	
Miscellaneous
	 	 	9	 

	 	 	 
	 	
 
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

(i)

 

PROFIT PARTICIPATION AGREEMENT

     THIS
PROFIT PARTICIPATION AGREEMENT (this “Agreement”) is made as of July
31, 2003 by and between the PLAYA VISTA – WATER’S EDGE, LLC., a Delaware
limited liability company, (“Playa”), and ELECTRONIC ARTS INC., a Delaware
corporation (“EA”).

R E C I T A L S:

     A.     Playa owns an office project located at the corner of Jefferson and
Lincoln Boulevards, in Los Angeles, California, commonly known as Playa
Vista-Water’s Edge (the “Playa Project”). The Playa Project will be developed
in two phases (hereinafter,  “Phase I” and  “Phase II”) on certain real property,
as more particularly described on Exhibit “A” attached hereto and made a part
hereof. Phase I is improved with two commercial office buildings located at
5510 and 5570 Lincoln Boulevard, Los Angeles, California, together with
underground parking and other improvements. Phase II will be improved with an
athletic field (the  “Field”) and surface parking lot and, at some point in the
future, with an office building ( “Building 3”) and parking garage located under
the Field and Building 3. Concurrently with the execution hereof, and pursuant
to that certain Office Lease, as of the date hereof (the  “Lease”), by and
between Playa and EA, EA has agreed to lease from Playa certain premises
situated on Phase I and the Field, and portions of any parking garage hereafter
constructed under the Field, situated on Phase II. This Agreement shall not be
applicable to Phase II of the Playa Project or the sale of any portion thereof,
except as specifically provided herein.

     B.     As partial consideration for EA’s entering into the Lease, Playa has
agreed to pay to EA a certain amount of the profit from the sale of Phase I, if
and when Playa sells Phase I, including a sale of Phase I to EA or an EA
Affiliate (as defined below), all as more particularly set forth below. Playa
and EA acknowledge that a fee interest or as an exclusive easement interest in
the Field and an easement interest in a portion of the parking garage which may
hereafter be constructed under the Field may be sold with Phase I.

A G R E E M E N T :

     NOW, THEREFORE, in consideration of the above and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
parties agree as follows:

     1.     Definitions.

          1.1 Intentionally Omitted.

          1.2  “Closing Costs” shall mean and refer to the actual out-of-pocket costs
incurred by Playa strictly in connection with the sale of Phase I, including,
but not limited to, advertising costs, sales commissions, title insurance
premiums, transfer taxes and escrow fees,

	 	 	 
	 	
 
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

 

provided, however, in no event shall
any fees, costs, expenses or other amounts (i) paid to Playa or a Playa
Affiliate (as defined below) or (ii) incurred with respect to internal issues
and dealings between members or partners, as the case may be, of Playa and/or
any Playa Affiliate, in connection with the sale of Phase I be included in the
calculation “Closing Costs.”

          1.3 “EA Affiliate” shall mean (a) an entity which is controlled by,
controls or is under common control with EA (an “EA Affiliated Entity”), (b)
an entity which merges with or acquires or is acquired by EA or a parent or an
EA Affiliated Entity, or a subsidiary of EA’s parent or an EA Affiliated
Entity, (c) a transferee of all or substantially all of the assets of EA or an
entity which is controlled by, controls or is under common control with EA or
an EA Affiliated Entity, or (d) a transfer, by operation of law or otherwise,
in connection with the merger, consolidation or other reorganization of EA or
an EA Affiliated Entity or of an entity which is controlled by, controls or is
under common control with EA or an EA Affiliated Entity along with any other
entity which will qualify as an “affiliate” under California General
Corporations Code Sections 150 and 5031. For purposes of this Agreement,
“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.

          1.4 “Gross Sales Price” shall mean and refer to the total sales price paid
in connection with the sale of Phase I (or in the event of a “Joint Sale” as
defined below, both Phase I and II), and shall include, without limitation, key
money and bonus money or other consideration of any kind paid by the buyer of
Phase I (or in the event of a Joint Sale, both Phase I and II), or otherwise
granted to Playa or a Playa Affiliate in connection with the sale of Phase I
(or in the event of a Joint Sale, both Phase I and II) and shall be reduced by
any pre or post closing monetary obligations assumed by Playa in connection
with the applicable sale. In the event Phase I is sold together with Phase II
(a “Joint Sale”), the Gross Sales Price from such Joint Sale shall be allocated
between Phase I and Phase II on a proportionate basis, as follows. First, the
“Market Value” of each of Phase I and Phase II shall be determined as if each
were being sold separately (the “Individual Values”). Second, the amount of
the Gross Sales Price for the Joint Sale shall be allocated to each of Phase I
and Phase II (the “Allocated Gross Sales Price”) as follows. The Allocated
Gross Sales Price for a particular phase shall be equal to the product of (i)
the Gross Sales Price of both Phase I and Phase II, and (ii) a fraction, the
numerator of which is the Individual Value of such phase and the denominator of
which is the aggregate Individual Values of both phases. Collectively, the
Allocated Gross Sales Prices shall be known as the “Joint Sale Allocation”.
The Allocated Gross Sales Prices calculation shall be submitted to EA at the
same time that Playa submits its “Accounting” (defined in Section 2.3 below) to
EA, and if EA disputes the Joint Sale Allocation, such Joint Sale Allocation
will be subject to the provisions of Section 2.3 below.

          1.5 “Invested Capital” shall mean an amount equal to the sum of the
following items set forth in Sections 1.5.1 through 1.5.11 below, as modified
by Sections 1.5.12, below (collectively, “Capital Investment Items”). Each
category of Capital Investment Items comprising Invested Capital shall, to the
extent not specifically allocable solely to Phase I, be allocated between Phase
I and Phase II on an equitable and reasonable basis (the “Phase I/Phase II
Allocation”), and only Capital Investment Items allocable to Phase I will be
considered for purposes of this Agreement. Playa agrees that costs and/or
items of Invested Capital included in

	 	 	 
	 	

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	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

one group of Capital Investment Items
shall not be included in any other group of Capital Investment Items (i.e., no
cost shall be counted twice in determining the amount of Invested Capital for
purposes of this Agreement), and, generally, it is the intention of the parties
that all out-of-pocket costs of Playa or any Playa Affiliate allocable to Phase
I as provided herein shall be included in Invested Capital and all revenue from
any source received by Playa or any Playa Affiliate and allocable to Phase I as
provided herein shall be credited against Invested Capital.

               1.5.1 Land Acquisition Cost. The acquisition price paid by Playa or a
Playa Affiliate for the Playa Project, in the amount of $27,055,000.00.

               1.5.2 Land Acquisition Transaction Costs. The out-of-pocket transaction
costs paid by Playa or a Playa Affiliate to Unaffiliated Third Parties (defined
below) which were directly related to acquiring the Playa Project, such as
title insurance and endorsements, legal fees, easement costs, due diligence
costs and market studies and other similar or related costs. The amount of the
escrow charges, title fees, endorsement fees, recording fees and broker fees
was an amount equal to $421,824.60.

               1.5.3 Site Improvement Costs. On-site and off-site improvement costs
actually expended by Playa or a Playa Affiliate which were directly related to
Phase I for engineering, consultants, bonds, grading, wet utilities, dry
utilities, street improvements, walls and fences, landscaping, and any other
facilities located in Phase I and other similar or related costs.

               1.5.4 Indirect Construction. Indirect construction costs actually
expended by Playa or a Playa Affiliate which were directly related to the
construction of Phase I for entitlements, permits and fees, architecture,
engineering, inspections, site supervision, construction trailer and security
and other similar or related costs.

               1.5.5 Direct Construction. The actual costs of the construction of Phase
I including construction materials, equipment rental, labor and subcontractors,
expended by Playa or a Playa Affiliate for the construction of Phase I and
other similar or related costs.

               1.5.6 Financing Costs. Any actual or imputed interest charges, loan fees,
points, commitment fees and other costs required to be paid by Playa or a Playa
Affiliate to obtain any actual or imputed debt or equity directly related to
the acquisition of Phase I, the development of Phase I, or the operation of
Phase I.

               1.5.7 Property Taxes. Costs of property taxes and assessments levied on
Phase I, and all other assessments paid in connection with community facility
districts, landscape maintenance districts and any other public financing
districts charged against Phase I.

               1.5.8 Marketing Costs. Actual out-of-pocket costs of sales office,
signage, and advertising costs and other similar or related costs which are
directly related to the marketing and/or leasing of Phase I or any portion
thereof.

               1.5.9 Insurance. Cost of insurance paid by Playa or a Playa Affiliate
with respect to Phase I including construction insurance for Phase I.

	 	 	 
	 	

-3-
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

               1.5.10 Overhead Allocation. A percentage of the gross revenue of Phase I
to compensate Playa or a Playa Affiliate for its overhead in connection with
the development of Phase I for costs not specifically allocated to Phase I such
as: payroll additives and salaries of Playa’s or a Playa Affiliate’s corporate
and division office executives, officers, department heads and staff in
directing, administering and supervising such development; employee bonuses,
general legal and accounting fees; and the operating expenses of Playa’s or a
Playa Affiliate’s corporate and division offices such as rent, utilities,
office supplies, office equipment and other office related expenses.

               1.5.11 Other Allocable Costs. Any other actual out-of-pocket costs
expended by Playa or a Playa Affiliate in connection with the acquisition,
development, construction, leasing, and financing of Phase I, and Phase I
operating expenses, including legal fees, tenant improvement costs, leasing
commissions, and development fees.

               1.5.12 Exclusions. Notwithstanding anything to the contrary contained in
this Section 1.5, Invested Capital shall not include the following: (i) except
to the extent such amounts do not materially exceed the amount that would have
been paid to Unaffiliated Third Parties in an arms-length transaction, any
fees, costs, expenses or other amounts paid or reimbursed to Playa or a Playa
Affiliate in connection with the acquisition of Phase I, or the development,
ownership or maintenance of Phase I, and (ii) any fees, costs, expenses or
other amounts reimbursed by any Playa Member to another Playa Member for fees,
costs, or expenses that were already included in Invested Capital.

               1.5.13 Preliminary Cost Basis and Allocation. On or before December 31,
2004, Playa shall deliver to EA a “Preliminary Cost Basis and Allocation
Statement” which shall itemize all Invested Capital Items as of a date no
earlier than July 31, 2003 (the “Current Basis Date”) and shall state Playa’s
determination of the Phase I/Phase II Allocation as of the Current Basis Date,
and shall meet the requirements of the “Accounting,” as that term is defined in
Section 2.3.1 of this Agreement. At any time within one hundred eighty (180)
days following receipt by EA of the Preliminary Cost Basis and Allocation
Statement, if EA disputes the same, EA shall notify Playa of such dispute and
the parties shall follow the procedures to attempt to resolve the dispute
and/or arbitrate the dispute in the same manner as with respect to the “Final
Accounting” as set forth in Section 2.3 below and the “Dispute Resolution
Period” (defined in Section 2.3 below) shall commence upon delivery of EA’s
dispute notice hereunder. The ruling of the arbitrators in this event,
however, will be limited solely as to the correct amount of the Preliminary
Cost Basis and Allocation Statement and all components thereof, and such ruling
will be deemed the “Interim Arbitration Ruling.” The Interim Arbitration
Ruling shall be binding upon the parties with respect to the period up to the
Current Basis Date in any future dispute regarding the Profit Participation
Allocation or any component thereof. If EA does not timely dispute such
Preliminary Cost Basis and Allocation Statement, then EA shall be deemed to
have conclusively approved of the same.

          1.6 “Net Profits from Sale” shall mean and refer to the amount derived
from the sale of Phase I (other than to Playa or a Playa Affiliate), but
specifically including a sale of Phase I to EA or an EA Affiliate, which amount
shall be calculated as follows: Allocated Gross Sales Price for Phase I minus
(i) Closing Costs for Phase I, (ii) Invested Capital for Phase I, and (iii)
“Required IRR” (as defined below) for Phase I. In the event of a Joint Sale,
the Net Profits

	 	 	 
	 	

-4-
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

from Sale shall be determined as a result of the allocation of
the Gross Sales Price, Closing Costs, Invested Capital, and Required IRR
provided in Sections 1.4 and 1.5, above, and Section 1.9 below.

          1.7 “Playa Affiliate” shall mean (A) (i) CA-Playa Vista Water’s Edge
Limited Partnership, a Delaware limited partnership, (ii) McGuire Partners SCS,
Inc., a Delaware corporation, and (iii) McGuire Partners-PV Investor
Partnership, L.P., California limited partnership, (iv) McGuire Properties
Inc., a Maryland corporation, (v) Equity Office Properties Trust, and (vi)
McGuire Partners Ltd., a California limited partnership (each of (i)-(vi), a
“Playa Member”), or (B) an entity which is controlled by, controls or is under
common control with Playa or any Playa Member, or (C) an entity which merges
with or acquires or is acquired by Playa or Playa Member or a parent,
subsidiary or member of Playa or any Playa Member, provided that if any entity
acquires or merges with Playa (and such entity is not otherwise a Playa
Affiliate under items (A) or (B) of this Section 1.7), such acquiring entity
after the acquisition or merger shall not be deemed a Playa Affiliate if the
acquiring entity, or any of its affiliates, in connection with such
acquisition, or merger does not acquire any other material assets of any Playa
Members, or (D) a transferee of substantially all of the assets of Playa or any
Playa Member, provided that if any entity acquires Playa, (and such entity is
not otherwise a Playa Affiliate under items (A) or (B) of this Section 1.7)
such acquiring entity after the acquisition shall not be deemed a Playa
Affiliate if the acquiring entity or any of its affiliates, in connection with
such acquisition does not acquire any other material assets of any Playa
Members.

          1.8 “Profit Participation Allocation” shall mean the amount, if any, due
and payable to EA pursuant to the terms of this Agreement, which amount shall
be equal to twenty-five percent (25%) of the Net Profits from Sale.

          1.9 “Required IRR” shall mean an amount equal to a twelve percent (12%)
per annum return on Invested Capital (as allocated to Phase I pursuant to
Section 1.5, above) from the time of the applicable investment of each
component of Invested Capital, which amount shall be reduced by (and at the
time that) (i) any “Base Rent” is actually received from EA under the Lease or
any other net income is received as to Phase I, or (ii) that any other fees,
costs or expenses are reimbursed to Playa or a Playa Affiliate by EA under the
Lease or any other reimbursements are received by Playa or a Playa Affiliate as
to Phase I.

          1.10 “Unaffiliated Third Party” shall mean any party other than Playa, a
Playa Affiliate, or a “Foreclosure Owner” (defined below).

     2.     Payment of Profit Participation Allocation. Playa hereby agrees to pay
the Profit Participation Allocation to EA, at the time and in the manner
specified below.

          2.1 Transactions Excluded. The requirement that Playa pay to EA
(including any EA Affiliate possessing the lessee’s interest under the Lease)
the Profit Participation Allocation pursuant to this Agreement shall expressly
not apply in the event that Playa transfers the Phase I to a Playa Affiliate or
a Foreclosure Owner (“Excluded Transaction”), provided that any Playa Affiliate
who acquires title to Phase I shall be obligated to pay the Profit
Participation Allocation to EA in accordance with the terms of this Agreement
if

	 	 	 
	 	

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such Playa Affiliate subsequently sells, conveys or transfers Phase I, to an
Unaffiliated Third Party, specifically including a sale of Phase I, to EA or an
EA Affiliate.

          2.2 Termination of Right. Notwithstanding anything to the contrary in
this Agreement, EA’s right to receive the Profit Participation pursuant to this
Agreement shall terminate upon the occurrence of either of the following: (i)
in the event that the Lease is terminated for any reason; other than as a
result of a default by Playa or a Playa Affiliate, or (ii) upon a transfer to a
“Foreclosure Owner.” For purposes of this Agreement, a “Foreclosure Owner”
shall be an entity or person, other than Playa or a Playa Affiliate, which
becomes the owner of Phase I through a foreclosure by trustee’s power of sale,
judicially or otherwise, or as a purchaser at a foreclosure sale or by deed in
lieu (collectively, a “Foreclosure Event”).

          2.3 Payment.

               2.3.1 The Accounting. Not less than fifteen (15) business days prior to
the close of escrow for the sale of Phase I, except in connection with any
Excluded Transaction, Playa shall complete and submit to EA, Playa’s best
estimate of the Profit Participation in a detailed “Accounting” (defined
below). As used herein, an “Accounting” shall mean a report prepared by Playa
showing in reasonable detail (including reasonable back-up documentation) the
calculation of the Profit Participation Allocation, including Invested Capital
Items (and the dates incurred), Closing Costs, and Net Profits from Sale of
Phase I (or in the event of a Joint Sale, both Phase I and Phase II), the
required IRR , the Phase I/Phase II Allocation, if applicable, the Joint Sale
Allocation, any Preliminary Cost Basis and Allocation Statement (or the Interim
Arbitration Ruling, if any) and the Phase I/Phase II Allocation given with such
Preliminary Cost Basis and Allocation Statement (or the Interim Arbitration
Ruling, if any) (“Playa’s PPA”).

               2.3.2 Resolution of Disputes; Escrowing of Funds. If EA objects to
Playa’s PPA, including, if applicable, Playa’s Joint Sale Allocation, EA shall
have ten (10) business days from the receipt of the Accounting within which to
provide written notice to Playa of EA’s objection, together with EA’s proposed
Profit Participation Allocation amount (“EA’s PPA”) and, if applicable, EA’s
proposed Joint Sale Allocation. In such event, to the extent the parties are
unable to agree as to the Profit Participation Allocation amount, including, if
applicable, the Joint Sale Allocation, prior to any scheduled closing, the
average of Playa’s PPA and EA’s PPA shall be held in escrow (and shall accrue
interest) until the final agreement by EA and Playa, or determination as
provided below, as to the amount of the Profit Participation
Allocation. If EA does not timely object to Playa’s PPA, an amount equal
to Playa’s PPA shall be held in escrow (and shall accrue interest) until the
final agreement by EA and Playa, or determination as provided below, as to the
amount of the Profit Participation Allocation. Upon the agreement of or
determination as provided below, as to the amount of the Profit Participation
Allocation, such amount held in escrow (plus or minus any adjustments necessary
based on such final agreement or determination) shall be released from escrow
to EA upon the mutual instructions of EA and Playa to the escrow agent. If
required, Playa shall, within ten (10) business days following any such
agreement or determination, deposit any additional funds required to equal the
final amount of the Profit Participation Allocation. Any overage above the
final Profit Participation Allocation, if any, shall be returned by the escrow
agent to Playa. In no event shall the final agreement or determination as to
the amount of the Profit Participation Allocation delay the closing of any
sale.

	 	 	 
	 	

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               2.3.3 Resolution of Disputes. Not later than fifteen (15) business days
after the close of escrow, Playa shall give EA an accurate and final Accounting
(the “Final Accounting”). EA may, within thirty (30) days thereafter (the
“Dispute Resolution Period”), dispute the Final Accounting, and the final
amount of the Profit Participation Allocation, including the Phase I/Phase II
Allocation and, if applicable, the Joint Sale Allocation, and any components of
either. If EA does not timely dispute the same, the final Accounting shall be
binding on both parties. If EA does dispute the same, EA shall, within thirty
(30) days following the receipt by EA of Playa’s Final Accounting (the “Dispute
Resolution Period”), submit its final proposed Profit Participation Allocation
(the “EA’s PPA”) unless EA has already submitted the EA’s PPA as provided
above. Thereafter, EA’s PPA and Playa’s PPA shall each be known as a “Final
PPA”. Each Final PPA shall meet the requirements of the “Accounting” as set
forth above; provided that, if EA shall have accepted, or be deemed to have
accepted, a Preliminary Cost Basis and Allocation Statement, or an Interim
Arbitration Ruling has been obtained prior to the applicable sale, calculations
relating to Invested Capital Items expended, and the allocation thereof
pursuant to the Phase I/Phase II Allocation, may only be disputed with respect
to the period following the Current Basis Date and the arbitrators shall be
required to rely on the accepted Preliminary Cost Basis and Allocation
Statement or the Interim Arbitration Ruling with respect thereto. Immediately,
thereafter, Playa and EA shall proceed as follows.

               2.3.4 Playa and EA shall each appoint one arbitrator who shall be a
certified public accountant from a nationally recognized accounting firm and
shall have recognized experience of not less than ten (10) years in the
financial analysis and real estate accounting principals with respect to real
estate construction and development for major first class office projects of
the nature of the Playa Project. The determination of the arbitrators shall be
limited solely to the issue of whether EA’s Final PPA or Playa’s Final PPA,
including, if applicable each party’s determination of the Joint Sale
Allocation, is closest to the Profit Participation Allocation determined by the
Arbitrators, taking into consideration all of the factors of this Agreement.
Each such arbitrator shall be appointed within ten (10) business days after the
expiration of the Dispute Resolution Period.

               2.3.5 The two arbitrators so appointed shall within ten (10) days of the
date of the appointment of the last appointed arbitrator agree upon and appoint
a third arbitrator who shall have the same qualification as set forth in
Section 2.3.1 above.

               2.3.6 In the event of a dispute regarding the Joint Sale Allocation, as
timely raised by EA, the three arbitrators by majority vote shall select an
appraiser (the “Appraiser”) who shall be certified as an MAI appraiser or as an
ASA appraiser and shall have had at least ten (10) years experience within the
previous fifteen (15) years as a real estate appraiser of office buildings in
the County of Los Angeles area, with working knowledge of current market
conditions and practices. For purposes hereof, an “MAI” appraiser means an
individual who holds an MAI designation conferred by, and is an independent
member of, the American Institute of Real Estate Appraisers (or its successor
organization, or in the event there is no successor organization, the
organization and designation most similar), and an “ASA” appraiser means an
individual who holds the Senior Member designation conferred by, and is an
independent member of, the American Society of Appraisers (or its successor
organization, or, in the event there is no successor organization, the
organization and designation most similar). The determination of the Appraiser
shall be limited solely to the issue area of whether EA’s Joint Sale

	 	 	 
	 	

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Allocation
or Playa’s Joint Sale Allocation, is closest to the actual Joint Sale
Allocation determined by the Appraiser, taking into consideration the factors
set forth in Section 1.4, above. The Appraiser shall, within forty-five (45)
days following its appointment reach a decision and deliver a ruling as to the
actual Joint Sale Allocation. The ruling of the Appraiser shall be binding,
and the Joint Sale Allocation of the party that is the closest to the actual
Joint Sale Allocation as determined by the Appraiser shall then be the Joint
Sale Allocation for all purposes hereunder.

               2.3.7 The three arbitrators shall (by majority vote) within thirty (30)
days of the appointment of the third arbitrator or, in the event of a dispute
involving the Joint Sale Allocation, within the later of thirty (30) days of
the appointment of the third arbitrator or ten (10) business days after
delivery of the ruling of the Appraiser, reach a decision (by majority vote)
and publish a ruling (the “Ruling”) indicating whether Playa’s Final PPA or
EA’s Final PPA, adjusted, if applicable, to take into account the Joint Sale
Allocation as determined by the Appraiser in accordance with Section 2.3.3
above, is closest to the actual Profit Participation Allocation as determined
by the Arbitrators. Following the Ruling, the stated Profit Participation
Allocation as determined by the arbitrators shall be deemed the Profit
Participation Allocation under this Agreement, and if necessary, adjustments
shall be made in accordance with Section 2.3 above.

               2.3.8 The decision of the majority of the three arbitrators shall be
binding upon Playa and EA.

               2.3.9 If either Playa or EA fails to appoint an arbitrator within ten (10)
business days following the expiration of the Dispute Resolution Period, the
arbitrator appointed by one of them shall reach a decision, notify Playa and EA
thereof, and such arbitrator’s decision shall be binding upon Playa and EA.

               2.3.10 If the two arbitrators fail to agree upon and appoint a third
arbitrator, or both parties fail to appoint an arbitrator, then the appointment
of the third arbitrator or any arbitrator shall be dismissed and the parties
shall submit a request to the American Arbitration Association to provide a
single arbitrator that is qualified in accordance with the terms of this
Agreement, and such arbitrator’s decision shall be binding upon Playa and EA.

               2.3.11 In the event of a dispute with respect to the Joint Sale
Allocation, if the arbitrators fail to agree upon and appoint an appraiser,
then the arbitrators shall submit a request to the American Institute of Real
Estate Appraisers, or successor organization, to provide an appraiser qualified
in accordance with the terms of this Agreement, and such appraiser’s decision
shall be binding on the parties.

               2.3.12 The cost of the third arbitrator and the appraiser shall be paid by
Playa and EA equally. Otherwise, each party shall bear its own costs including
the cost of the arbitrator elected by such party.

     3.     Financial
Records and Statements of Playa. Playa shall keep and maintain, or cause to be kept and maintained, accurate financial books and
records with respect to the acquisition of the Real Property and the
development and ownership of the Playa Project. Such

	 	 	 
	 	

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financial books and
records shall include all supporting documentation relative to Capital
Investment Items, and shall be maintained by Playa for two (2) years after the
date on which the Project, or last portion thereof, if later, is sold in an
event triggering Playa’s obligation to pay the Profit Participation Allocation
to EA.

     4.     Sale
of Portion of Phase I. Playa shall not sell only a portion of
Phase I to any party other than to a Playa Affiliate or a Foreclosure Owner.

     5.     Default and Remedies.

          5.1
Default. Each of the terms, conditions, covenants and provisions of
this Agreement is a material consideration for this Agreement, the breach of
which shall be deemed a default hereunder. Said default shall be deemed to
have occurred if the defaulting party has not effected a cure within ten (10)
days after a written notice from the other party specifying the default.

          5.2
Default Interest. In the event of a default by Playa in the payment
of any funds required to be paid by Playa hereunder, all amounts which remain
unpaid for a period of ten (10) days from the date such payment is due
hereunder, shall bear interest from the initial due date through the date
actual payment is received by EA at a rate equal to the lesser of (i) the
“Interest Rate” under the Lease or (ii) the maximum rate permitted under
applicable law. The imposition or payment of such default interest shall not
excuse any default.

          5.3
Remedies. In the event of a default by either party hereunder, either
party shall have all rights and remedies available to it at law or in equity.
To the maximum extent permitted by law, all rights, options and remedies of EA
contained in this Agreement, or under law, shall be cumulative, and no one
remedy shall be exclusive of any other remedy, and EA shall have the right to
pursue any one or all such remedies.

          5.4
No Continuing Waiver. No waiver by a party of a breach of any of the
terms, covenants or conditions of this Agreement by the other party shall be
construed or held to be a waiver of any succeeding or preceding breach of the
same or any other term, covenant or condition herein contained. No waiver of
any default by a party hereunder shall be implied from any omission by the
other party to take any action on account of such default if such default
persists or is repeated, and no express waiver shall affect default other than
as specified in such
waiver. The consent or approval by a party to or of any act by the other
party requiring consent or approval, shall not be deemed to waive or render
unnecessary the such party’s consent or approval to or of any subsequent
similar acts by the first party.

     6.     Miscellaneous.

          6.1
Notices. All notices or other communications required or permitted
hereunder shall be in writing and personally delivered (including by means of
professional messenger service) by nationally recognized overnight courier
service, messenger service or registered or certified mail, postage prepaid,
return receipt requested. All written communications in accordance with the
foregoing shall be deemed given (i) three (3) days after the date it is posted
if sent by mail, or (ii) the date the overnight courier or personal delivery is
made, or refused by the addressee, at the address set forth below, if delivered
by 5:00 P.M., Los

	 	 	 
	 	

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Angeles Time on a business day, the next business day if
delivered after 5:00 P.M. of a business day or non-business day. Notice of
change of address shall be given by written notice as described in Section 6.1.

	 	 	 	 	 
	 	 	
EA:	 	 
	 	 	 	 	 
	 	 	 	 	at EA’s location at the project

Attention: Head of Facilities and COO EALA
	 	 	 	 	 
	 	 	 	 	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
	 	 	 	 	 
	 	 	
Playa:	 	 
	 	 	 	 	 
	 	 	 	 	Playa Vista – Water’s Edge, LLC

c/o Equity Office Properties

550 South Hope Street, Suite 2200

Los Angeles, California 90071

Attention: Regional Vice President
	 	 	 	 	 
	 	 	 	 	and
	 	 	 	 	 
	 	 	 	 	c/o Maguire Partners

555 West Fifth Street, Suite 500

Los Angeles, California 90013

Attention: Partner – Leasing
	 
	 	 	
With copies to:	 	 
	 	 	 	 	 
	 	 	 	 	Equity Office

2 North Riverside Plaza

Suite 2100

Chicago, Illinois 60606

Attention: Chief Legal Counsel

	 	 	 
	 	

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And to:	 	 
	 	 	 	 	 
	 	 	 	 	Allen Matkins Leck Gamble & Mallory LLP

1901 Avenue of the Stars

Suite 1800

Los Angeles, California 90067

Attention: Anton N. Natsis, Esq.

          6.2
Subordination/Recognition Agreement. Subject to EA’s receipt of an
appropriate recognition agreement (which recognition shall not recognize this
Agreement as surviving a Foreclosure Event) as set forth below, this Agreement
shall be subject and subordinate to the lien of any mortgages or trust deeds in
favor of any Unaffiliated Third Party, now or hereafter in force against Phase
I, if any, and/or 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, provided that the loan evidenced by
the mortgage or trust deed is only made with respect to and is only secured by,
a trust deed on the Playa Project. EA shall, within fifteen (15) business days
following receipt of the request of Playa, execute a commercially reasonable
subordination in favor of mortgage holders or lienholders of Playa who are
Unaffiliated Third Parties (“Permitted Mortgage/Lien
Holders”) who later come
into existence at any time prior to the expiration of earlier termination of
this Agreement, provided that the loan evidenced by the mortgage or trust deed
is only made with respect to and is only secured by, a trust deed on the Playa
Project, and provided further, that such subordination agreement is in
accordance with the provisions of this Section 6.2. Playa acknowledges and
agrees that EA’s receipt of a commercially reasonable non-disturbance agreement
(“Non-Disturbance Agreement”) in favor of EA from any Permitted Mortgage/Lien
Holder who later comes into existence at any time prior to the expiration or
termination of this Agreement shall be in consideration of, and a condition
precedent to, EA’s agreement to be bound by the provisions of this Section 6.2
and any other provisions hereunder for the benefit of a Foreclosure Owner.
Playa agrees to use commercially reasonable efforts to obtain the agreement of
any Permitted Mortgage/Lien Holders to provide notice to EA of any monetary
default by Playa and to permit EA to make
payments directly to any such Permitted Mortgage/Lien Holder, in the event
of Playa’s failure to make required payments, and provided EA shall first
notify Playa prior to making any such payment and provide Playa with not less
than the greater of (i) ten (10) business days following Playa’s receipt of
EA’s notice, and (ii) the cure period permitted under the applicable mortgage
or lien to cure such default.

          6.3
Estoppel. Within ten (10) business days following a request in
writing by Playa, EA shall execute, acknowledge and deliver to Playa an
estoppel certificate indicating therein to what extent EA’s right to receive
the Profit Participation Allocation may exist at that time or that such right
has been waived or terminated, as applicable, and shall also contain any other
information reasonably requested by Playa or any mortgagee or transferee of
Playa’s interest in Phase I. Any such certificate may be relied upon by any
prospective mortgagee or transferee of all or any portion of Phase I. EA shall
execute and deliver whatever other commercially reasonable instruments may be
reasonably required for such purposes. Failure of EA to timely execute,
acknowledge and deliver such estoppel certificate or other instruments

	 	 	 
	 	

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within
five (5) business days after Playa’s second request (which shall in no event be
deemed delivered prior to the expiration of the initial 10 business day period)
shall constitute an acknowledgment by EA that statements included in the
estoppel certificate are true and correct, without exception.

          6.4
Time of the Essence. Time is of the essence of this Agreement and
each and every term and provision hereof.

          6.5
Interpretation; Governing Law. This Agreement shall be construed as
if prepared by both parties. Accordingly, any rule of law (including
California Civil Code Section 1654) or legal decision that would require
interpretation of any ambiguities in this Agreement against the party that has
drafted it is not applicable and is waived. This Agreement shall be construed,
interpreted and governed by the laws of the State of California.

          6.6
Severability. If any provision of this Agreement, or the application
thereof, shall for any reason and to any extent be invalid or unenforceable, by
a court or arbitrator of competent jurisdiction, the remainder of this
Agreement and application of such provision to other circumstances, shall be
interpreted so as best to reasonably effect the intent of the parties hereto.

          6.7
Performance of Acts on Business Days. Unless specifically stated to
the contrary, all references to days herein shall be deemed to refer to
calendar days. In the event that the final date for payment of any amount or
performance of any act hereunder falls on a Saturday, Sunday or holiday, such
payment may be made or act performed on the next succeeding business day.

          6.8
Attorneys’ Fees. If either party files any action or brings any
proceeding against the other arising out of this Agreement, whether or not such
action or proceeding is prosecuted to judgment (“Action”), then (1) the
unsuccessful party therein shall pay all costs incurred by the prevailing party
therein, including reasonable attorneys’ fees and costs, court costs and
reimbursements for any other expenses incurred in connection therewith, and (2)
as a separate right, severable from any other rights set forth in this
Agreement, the
prevailing party therein shall be entitled to recover its reasonable
attorneys’ fees and costs incurred in enforcing any judgment against the
unsuccessful party therein, which right to recover post-judgment attorneys’
fees and costs shall be included in any such judgment. The right to recover
post-judgment attorneys’ fees and costs shall (i) not be deemed waived if not
included in any judgment, (ii) survive the final judgment in any Action, and
(iii) not be deemed merged into such judgment. The rights and obligations of
this Section 6.8 shall survive the termination of this Agreement.

          6.9
Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHT
TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, COUNTERCLAIM OR CROSS-COMPLAINT
IN ANY ACTION, PROCEEDING OR HEARING BROUGHT BY A PARTY HERETO OR ITS
SUCCESSORS AND ASSIGNS ON ANY MATTER WHATSOEVER ARISING OUT OF, OR IN ANY WAY
CONNECTED WITH, THIS AGREEMENT, THE RELATIONSHIP OF THE PARTIES WITH RESPECT TO
THIS AGREEMENT, OR THE ENFORCEMENT OF ANY REMEDY PROVIDED BY THIS

	 	 	 
	 	

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AGREEMENT
UNDER ANY LAW, STATUTE, OR REGULATION, EMERGENCY OR OTHERWISE, NOW OR HEREAFTER
IN EFFECT.

          6.10
Jurisdiction. The parties agree that any action or proceeding to
enforce or relating to this Agreement, including any arbitration, shall be
brought exclusively in the federal or state courts located in Los Angeles
County, California, and the parties hereto consent to the exercise of personal
jurisdiction over them by any such courts for purposes of any such action or
proceeding.

          6.11
Entire Agreement; Amendments. This Agreement, together with the
attached exhibits, is intended by the parties to be the final expression of
their agreement with respect to EA’s right to share in any profits from the
sale of Phase I, and is intended as the complete and exclusive statement of the
terms of the agreement with respect thereto between the parties. As such, this
Agreement supersedes any prior understandings between the parties regarding the
subject matter hereof, whether oral or written. Any amendments to this
Agreement shall be in writing and shall be signed by all parties hereto.

          6.12
No Waiver. No delay on the part of any party hereto in exercising
any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any party hereto of any right, power or
privilege hereunder operate as a waiver of any other right, power or privilege
hereunder, nor shall any single or partial exercise of any right, power or
privilege hereunder, preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder.

          6.13
Assignment. EA shall not have the right to assign its rights and
obligations hereunder without the prior written consent of Playa, except that
EA may assign its rights hereunder to an EA Affiliate without the consent of
Playa (but EA shall give notice of such assignment to Playa).

          6.14
Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, representatives,
successors and permitted assigns.

          6.15
Headings; Cross-References; Exhibits. The headings and captions used
in this Agreement are for convenience and ease of reference only and shall not
be used to construe, interpret, expand or limit the terms of this Agreement.

          6.16
Survival of Certain Covenants. Playa’s obligation to pay the Profit
Participation Allocation shall survive, and not merge into, the conveyance of
Phase I, or any portion thereof, or any interest therein, by Playa, including
without limitation, with respect to a conveyance to a Playa Affiliate.

          6.17
No Partnership. EA shall not be liable to any contractor,
subcontractor, supplier, laborer, architect, engineer, purchaser, or any other
party for services performed or materials supplied or for any causes of action
arising out of or in connection with construction or sale of improvements on
Phase I. EA shall not be liable for any debts or claims accruing in favor of
any such parties against Playa or others or against Phase I. Playa is not and
shall not be considered an agent of EA for any purposes whatsoever. EA is not
a venture partner with Playa

	 	 	 
	 	

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or with the owners of Playa in any manner
whatsoever and EA shall have no duties of any kind to Playa, including without
limitation, any fiduciary duties as to Playa or the owners of Playa or to any
other person, except as expressly set forth herein. Playa is not a venture
partner with EA or with the owners of EA in any manner whatsoever and Playa
shall have no duties of any kind to EA, including without limitation, any
fiduciary duties as to EA or the owners of EA or to any other person, except as
expressly set forth herein. EA shall not be deemed to be in privity of
contract with any contractor or provider of services on Phase I or any
purchaser of Phase I or any portion thereof, nor shall any payment of funds
directly to a contractor, subcontractor or provider of services be deemed to
create any third party beneficiary status, whether intended or incidental, or
recognition of same by EA. Approvals granted by EA or Playa for any matters
covered under this Agreement shall be construed to be solely for the benefit of
the party granting the approval and no other person shall be considered a third
party beneficiary hereof.

          6.18 Counterparts. This Agreement may be executed in several original
counterparts, each of which and all together will constitute this Agreement in
its entirety.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.

[SIGNATURES FOLLOW, EACH ON A SEPARATE PAGE]

	 	 	 
	 	

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SIGNATURES TO THAT CERTAIN PROFIT PARTICIPATION AGREEMENT BY AND
BETWEEN PLAYA VISTA – WATER’S EDGE, LLC, A DELAWARE LIMITED LIABILITY
COMPANY, AND ELECTRONIC ARTS INC., A DELAWARE CORPORATION, DATED JULY
31, 2003

	 	 	 	 	 
	 	 	PLAYA:
	 	 	 	 	 
	 	 	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
	 	 	 	 	

	 	 	
Its:
	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
	 	 	 	 	

ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

SIGNATURES TO THAT CERTAIN PROFIT
PARTICIPATION AGREEMENT BY AND
BETWEEN PLAYA VISTA – WATER’S
EDGE, LLC, A DELAWARE LIMITED
LIABILITY COMPANY, AND ELECTRONIC
ARTS INC., A DELAWARE CORPORATION,
DATED JULY 31, 2003

	 	 	 	 	 
	 	 	“EA”
	 	 	 	 	 
	 	 	ELECTRONIC ARTS INC.,

a Delaware corporation
	 	 	 	 	 
	 	 	
By:
	 	/s/ Lawrence F. Probst III
	 	 	
	 	

	 	 	
Its:
	 	CHIEF EXECUTIVE OFFICER
	 	 	
	 	

	 	 	
By:
	 	

	 	 	
Its:
	 	

	 	 	 
	 	
 
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

EXHIBIT “A”

LEGAL DESCRIPTION OF THE REAL
PROPERTY

The land referred to in this policy is
situated in the county of Los Angeles,
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 STATES OF AMERICA, AND ITS
ASSIGNS, BY DECREE ENTERED FEBRUARY 5, 1952, IN UNITED STATES DISTRICT COURT,
SOUTHERN DISTRICT OF CALIFORNIA,

	 	 	 
	 	
EXHIBIT “A”

-1-
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

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”

-2-
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

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”

-3-
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

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”

-4-
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

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”

-5-
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

 

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” 
 -6-
	ELECTRONIC ARTS INC.

[Profit Participation Agreement]

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