Document:

exv10w1

 

Exhibit 10.1

FIRST AMENDMENT TO LEASE

     THIS FIRST AMENDMENT TO LEASE (the “Amendment”) is made this 13th day of December, 2005, by
and between LIBERTY PROPERTY LIMITED PARTNERSHIP, a Pennsylvania limited partnership (“Landlord”)
and ELECTRONIC ARTS-TIBURON, a Florida corporation f/k/a Tiburon Entertainment, Inc. (“Tenant”).

BACKGROUND:

     A.      Landlord’s predecessor in title, ASP WT, L.L.C., and Tenant entered into a Lease dated June
15, 2004 (the “Lease”), with a Lease Commencement Date of January 1, 2005, and an expiration date
of June 30, 2010, for 117,201 square feet (the “Original Premises”) in the office building known as
Maitland Summit Park I located at 1950 Summit Park Drive, Orlando, Florida 32810 (“Building I”).

     B.      Landlord also is the owner of the office building known as Maitland Summit Park II located
at 1958 Summit Park Drive, Orlando, Florida 32810 (“Building II”).

     C.      Tenant desires to lease 23,163 square feet on the 6th floor of Building II (the “Expansion
Premises”), which Expansion Premises are more particularly described and depicted on Exhibit “A”
attached hereto.

     D.      Both parties desire to amend the Lease to incorporate the Expansion Premises and to provide
for certain other matters related thereto.

     NOW, THEREFORE, the parties hereto, in consideration of the mutual promises and covenants
contained herein and in the Lease, and intending to be legally bound hereby, hereby agree as
follows:

     1.       Recitals. The foregoing recitals and all exhibits attached hereto are true and
correct and are incorporated herein by this reference.

     2.       Definitions and Schedules. Sections 1.1 and 1.2 of the Lease are hereby deleted in
their entirety and the following new Sections 1.1 and 1.2 are inserted in place and in lieu
thereof:

	 	1.1	 	DEFINITIONS:

	 	a.	 	Leased Premises shall mean those suites/floors within both the
Original Premises (defined in Section 1.1(b) below) and the Expansion Premises
as described in Schedule 1.
	 
	 	b.	 	Original Premises shall mean those suites/floors within
Building I as described in Schedule 1.
	 
	 	c.	 	Expansion Premises shall mean those suites/floors in Building
II as described in Schedule 1.

 

 

	 	d.	 	Building shall mean both Building I and Building II.
	 	e.	 	Building I shall mean Maitland Summit Park I located at 1950
Summit Park Drive, Orlando, Florida 32810.
	 
	 	f.	 	Building II shall mean Maitland Summit Park II located at 1958
Summit Park Drive, Orlando, Florida 32810.
	 
	 	g.	 	Project shall mean both Building I and Building II, and the
parking facilities and the lots on which the said buildings are located.
	 
	 	h.	 	Tenant’s Building I Square Footage shall mean 117,201 rentable
square feet; Total Building I Square Footage of Building I shall mean 128,240
rentable square feet.
	 
	 	i.	 	Tenant’s Building II Square Footage shall mean 23,163 rentable
square feet; Total Building II Square Footage of Building II shall mean 128,934
rentable square feet.
	 
	 	j.	 	Lease Commencement Date shall mean January 1, 2005, which may
be adjusted pursuant to Section 4.2 of this Lease; Lease Expiration Date shall
mean June 30, 2010, which may be adjusted pursuant to Section 4.2 of this
Lease; Lease Term shall mean the period between Lease Commencement Date and
Lease Expiration Date. The term “Lease Commencement Date” shall mean the
Expansion Commencement Date (as defined in Section 3 below) wherever in this
Lease the context shall require.
	 
	 	k.	 	Building I Base Rent shall mean those amounts as set forth in
Section 12 hereof, plus applicable sales tax, if any; unless the options
described under Sections 12.3 or 12.4 are exercised.
	 
	 	l.	 	Building II Base Rent shall mean those amounts as set forth in
Section 12 hereof, plus applicable sales tax, if any, unless the options
described under Sections 12.4 or 12.5 are exercised. In addition to the
amounts owed under Section 12, Tenant shall pay to Landlord the cost of
electric power serving the Expansion Premises (which shall include but not be
limited to the electric power operating the HVAC system serving the Expansion
Premises).
	 
	 	m.	 	Base Rent shall mean Building I Base Rent and Building II Base
Rent combined.
	 
	 	n.	 	Tenant’s Building I Pro Rata Share shall mean 91.4%.
	 
	 	o.	 	Tenant’s Building II Pro Rata Share shall mean 17.97%.

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	 	p.	 	Tenant’s Pro Rata Share shall mean Tenant’s Building I Pro Rata
Share and Tenant’s Building II Pro Rata Share combined.
	 
	 	q.	 	Base Year shall mean: (i) the calendar year 2005 with respect
to the Original Premises, and (ii) the calendar year 2006 with respect to the
Expansion Premises.
	 
	 	r.	 	Deposit shall mean $-0-; Prepaid Rent shall mean $-0-, of which
$-0- represents the first monthly installment of Base Rent, and $-0- represents
the last monthly installment of Base Rent.
	 
	 	s.	 	Permitted Purpose shall mean general office use.
	 
	 	t.	 	Authorized Number of Parking Spaces shall mean: (i) with
respect to Building I and the Original Premises, a minimum of 484 unreserved
spaces at a rate of $-0- per space per month, and (ii) with respect to Building
II and the Expansion Premises, 4.5 parking spaces per 1,000 rentable square
feet unreserved parking spaces in the Building II parking structure (i.e., 103
spaces), at a rate of $-0- per space per month, provided however, of the 103
Building II parking spaces, Landlord shall provide 4 reserved parking spaces,
at no charge, at locations to be determined by Landlord in the Building II
parking structure. In addition, Tenant may use additional parking spaces in the
Building II parking structure in excess of the foregoing ratio without any
additional consideration, provided that Tenant’s use of the same does not
interfere with the use of such parking by other tenants of Building II. Once
Landlord substantially completes construction of its next phase of development
at Maitland Summit Park, the foregoing right of the Tenant to use additional
parking within the Building II parking structure beyond the 4.5 parking spaces
per 1,000 rentable square feet shall terminate and expire (provided,
however, that during the construction period, Landlord may reduce such
additional parking, if necessary, to accommodate the construction).
	 
	 	u.	 	Managing Agent shall mean the Landlord.
	 
	 	v.	 	Broker of Record shall mean Liberty Property Trust, for
Landlord.
	 
	 	w.	 	Cooperating Broker shall mean Advantis Real Estate Services,
for Tenant.
	 
	 	x.	 	Landlord’s Mailing Address: 500 Chesterfield Parkway, Malvern,
PA 19355
	 
	 	 	 	Copy to: 2400 Lake Orange Drive, Suite 110, Orlando, Florida 32738,
telephone: 407-447-1776, and fax: 407-888-3242.
	 
	 	y.	 	Tenant’s Mailing Address: 1950 Summit Park Drive, Orlando,
Florida 32810, telephone: 407-386-4000, and fax: 407-386-4555, with copy to 209

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	 	 	 	Redwood Shores Parkway, Redwood City, CA 94065, attn: Senior Director of
Facilities.

	 
	 	z.	 	Market Base Rent: shall mean market rents, Tenant
improvements, rent concessions for renewing tenants in similar Class A office
space in Maitland, Florida

	 	1.2	 	SCHEDULES AND ADDENDA: The schedules and addenda listed below are
incorporated into this Lease by reference unless lined out. The terms of schedules,
exhibits and typewritten addenda, if any, attached or added hereto shall control over
any inconsistent provisions in the paragraphs of this Lease.

	 	a.	 	Schedule 1: Description of Leased Premises and/or Floor Plans
	 
	 	b.	 	Schedule 2: Rules and Regulations
	 
	 	c.	 	Schedule 3: Utility Services
	 
	 	d.	 	Schedule 4: Maintenance Services
	 
	 	e.	 	Schedule 5: Parking for Building I and Original Premises
	 
	 	f.	 	Schedule 6: Work Letter Agreement for Original Premises
	 
	 	g.	 	Schedule 7: Certificate of Acceptance
	 
	 	h.	 	Schedule 8: Guaranty
	 
	 	i.	 	Schedule 9: Approved Tenant’s General Contract, Architect and Engineer

     3.      Expansion Premises Commencement Date; Expansion Premises Termination Date. The
commencement date for Tenant’s occupancy of the Expansion Premises and for the payment of Building
II Base Rent shall be that date which is the earlier of (i) the issuance of the certificate of
occupancy by the applicable governmental authority for the Tenant’s Work described in Section 5
below, or (ii) subject to Section 5(a) below, 120 days after the Effective Date hereof (the
“Expansion Commencement Date”). The Expansion Premises termination date (“Expansion Termination
Date”) shall be fifty-four (54) full calendar months following the Expansion Commencement Date.

     4.      Operating Costs. Landlord and Tenant hereby acknowledge and agree that the term
“Operating Costs” as used in this Lease shall mean those defined Operating Costs for Building I and
Building II, respectively. For purposes of calculating Tenant’s Pro Rata Share of any Excess
Operating Costs for each of Building I and Building II, the defined Operating Costs for Building I
and the defined Operating Costs for Building II shall be calculated, treated, allocated and
assessed separately, such that Tenant is obligated to pay Tenant’s Building I Pro Rata Share of any
Excess Operating Costs for Building I and Tenant’s Building II Pro Rata Share of any Excess
Operating Costs for Building II. For the purposes of the calculation, assessment and payment of
any Excess Operating Costs pursuant to Section 3.3 of the Lease, the term “Building” as used
therein shall mean either Building I or Building II, as the case may be.

     5.      Construction and Commencement of Possession for Expansion Premises. The parties
acknowledge and agree that Sections 4.1 and 4.2 of the Lease relate to and apply to the Original
Premises only. The following terms and conditions relate to the construction of improvements and
commencement of possession for the Expansion Premises:

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          (a)      Within fourteen (14) days of the Effective Date hereof, Landlord shall deliver full
control of the Expansion Premises to Tenant, to enable Tenant to perform the Tenant’s Work (as
hereinafter defined). For each day later than fourteen (14) days after the Effective Date until
the delivery of full control of the Expansion Premises to Tenant as provided above, the 120 day
time period referenced in Section 3(ii) above shall be extended on a day-for-day basis.
Subject to the provisions hereof, Tenant shall cause the construction and installation of all
improvements to the Expansion Premises in accordance with the Plans and Specifications, as
hereinafter defined, and as necessary to permit Tenant to occupy same and conduct normal business
operations (such improvements being referred to herein as “Tenant’s Work”). In connection with
Tenant’s Work, Tenant will have a construction manager (the “Construction Manager”) who will serve
as Tenant’s representative in communicating and dealing with Landlord in the implementation,
progress and completion of Tenant’s Work. Landlord agrees to work cooperatively with the
Construction Manager, and all rights and obligations of the Tenant under this Section 5 may be
performed, exercised and/or satisfied by or on behalf of Tenant by the Construction Manager.

          (b)      Within five (5) days of the Effective Date of this Amendment, the parties shall have
mutually approved a space plan for the Expansion Premises. The space plan shall be acknowledged by
the parties in writing. Tenant shall then prepare detailed set of plans and specifications (the
“Plans and Specifications”), which shall be based on the mutually approved space plan. The Plans
and Specifications shall be prepared by Tenant’s architect and
engineer. Attached hereto
as Schedule 9 and by this reference made a part hereof are the names of Tenant’s general
contractor, architect and engineer for the Tenant’s Work; Landlord hereby approves the general
contractor, architect and engineer described on Schedule 9 attached hereto.

          (c)      Landlord has made no representations or warranties relating to the Expansion Premises;
Tenant accepts the Expansion Premises in its “as is” condition. Landlord assumes no responsibility
whatsoever, and shall not be liable, for the manufacturer’s, architect’s, or engineer’s design or
performance of any structural, mechanical, electrical, or plumbing systems or equipment or any
other matter set forth in the Plans and Specifications or otherwise.

          (d)      The Plans and Specifications shall be subject to Landlord’s review and approval. Landlord
shall accept or notify Tenant of its objections to the Plans and Specifications within five (5)
business days after receipt thereof. In the event Landlord fails to either accept the Plans and
Specifications or notify Tenant of its objections to such Plans and Specifications within the
forgoing five (5) business days, then the Plans and Specifications shall be deemed approved by
Landlord. If the Plans and Specifications are not acceptable, Landlord shall notify Tenant in
writing of the reasons for such disapproval and required revisions and amendments thereto, and
Tenant shall have five (5) days after receipt of Landlord’s notice thereafter to correct and revise
and submit amended Plans and Specifications to Landlord for consideration. In the event Landlord
and Tenant are unable, after discussing and negotiating in good faith, to agree on the Plans and
Specifications within thirty (30) days after the Effective Date hereof, then this Amendment shall
terminate and neither Landlord nor Tenant shall have any further obligations hereunder whatsoever.
Once Landlord approves the Plans and Specifications, Tenant shall, within five (5) days, provide
Landlord with one (1) set of the Plans and Specifications which shall be signed and dated by both
parties (and any changes to the Plans and Specifications shall be made only by written addendum
signed by both parties).

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          (e)      All inspections and approvals necessary and appropriate to complete Tenant’s Work in
accordance with the Plans and Specifications and as necessary to obtain a certificate of use and
occupancy as hereinafter provided are the responsibility of Tenant and its general contractor.
Tenant shall arrange a meeting prior to the commencement of construction between Landlord, Tenant
and Tenant’s contractors for the purpose of organizing and coordinating the completion of Tenant’s
Work.

          (f)      All of Tenant’s Work shall be completed in a good and workmanlike manner and shall be in
conformity with the applicable building codes. Upon substantial completion of Tenant’s Work,
Tenant shall furnish to Landlord:

                    (i)       a certificate of use and/or occupancy issued by the appropriate governmental authority and
other evidence satisfactory to Landlord that Tenant has obtained the governmental approvals
necessary to permit occupancy; and

                   (ii)       a notarized affidavit from Tenant’s contractor(s) listing the amounts paid and stating
that all amounts due for work done and materials furnished in completing Tenant’s Work have been
paid; and

                   (iii)      releases of lien from any subcontractor or material supplier that has given Landlord a
Notice to Owner pursuant to Florida law; and

                   (iv)      “as built” drawings of the Expansion Premises, with a list and description of all work
performed by the contractors, subcontractors, and material suppliers.

          (g)     Subject to Tenant’s compliance with Section 5 above, Landlord will provide Tenant with an
allowance (the “Tenant Improvement Allowance”) against the cost of the improvements to the
Expansion Premises and against the fees and costs incurred by Tenant with respect to preparation of
the Plans and Specifications for the Expansion Premises and all permit fees. The Tenant
Improvement Allowance shall be Thirteen Dollars ($13.00) per rentable square foot of the
Expansion Premises (i.e., a total of $301,119.00). Tenant shall be obligated to pay, when due, the
cost of Tenant’s Work to the extent that the same exceeds the Tenant Improvement Allowance
Landlord shall pay and reimburse the Tenant the Tenant Improvement Allowance within thirty (30)
days of Tenant’s satisfaction of and compliance with Section 5(f) above.

          (h)     In connection with the Tenant’s Work, Tenant hereby specifically acknowledges and agrees
that any improvements or modifications to the Expansion Premises and/or Building II required to
bring the same into compliance with current applicable laws, rules, regulations and building codes,
shall be at the sole cost of the Tenant and shall be included within the costs described in Section
5(g) above or in the approved budget for Tenant’s Work constituting part of the Plans and
Specifications. For example, but not by way of limitation of the foregoing, Tenant shall be solely
responsible at its cost for: any alterations or improvements required to bring the Expansion
Premises into compliance with the Americans with Disabilities Act (ADA) or other laws, rules and
regulations relating to accessibility; updating the electrical infrastructure configuration; all
demolition above existing ceilings within the Expansion Premises; correcting deficiencies in core
walls and above the existing ceiling within the

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Expansion Premises; modifying egress lighting and adding battery pack lights; and additional
wire supports for existing light fixtures.

     6.       Project Services. Landlord shall install a separate submeter for the electric
power serving the Expansion Premises (including but not limited to the HVAC system serving the
Expansion Premises). Landlord shall initially pay for the electricity used as shown on the
submeter(s) and Tenant shall thereafter reimburse Landlord on a monthly basis for said costs
pursuant to invoice.

     7.       Casualty and Untenantability. Section 8.1 of the Lease is hereby deleted in its
entirety, and the following new Section 8.1 is hereby inserted in place and in lieu thereof:

	 	8.1	 	CASUALTY AND UNTENANTABILITY: If either Building I or Building II is
made substantially untenable or if Tenant’s use and occupancy of either the Original
Premises or the Expansion Premises are substantially interfered with due to damage to
the common areas of either Building I or Building II or if either the Original Premises
or the Expansion Premises is made wholly or partially untenable by fire or other
casualty, Landlord may, by notice to within 45 days after the damage, terminate this
Lease with respect to the space/building so damaged (e.g., if Building II and/or the
Expansion Premises is so damaged, Landlord may terminate this Lease with respect to the
Expansion Premises). Such termination shall become effective as of the date of such
casualty.
	 
	 	 	 	If either the Original Premises or the Expansion Premises is made partially or
wholly untenable by fire or other casualty and this Lease is not terminated as
provided above, Landlord shall restore the Original Premises or the Expansion
Premises, as applicable, to the condition they were in on the Lease Commencement
Date, not including any personal property of Tenant or alterations performed by
Tenant.
	 
	 	 	 	If the Landlord does not terminate this Lease as provided above, and Landlord fails
within 120 days from the date of such casualty to restore the damaged common areas
thereby eliminating substantial interference with Tenant’s use and occupancy of
either the Original Premises or the Expansion Premises, or fails to restore the
Leased Premises to the condition they were in on the Lease Commencement Date, not
including any personal property or alterations performed by Tenant, Tenant may
terminate this Lease as of the end of such 120 day period.
	 
	 	 	 	In the event of termination of this Lease pursuant to this paragraph, Rent shall be
prorated on a per diem basis and paid to the date of the casualty, unless either the
Original Premises or the Expansion Premises shall be tenantable, in which case Rent
shall be payable to the date of the lease termination. If either the Original
Premises or the Expansion Premises are untenable and this Lease is not terminated,
Rent shall abate on a per diem basis from the date of the casualty until either the
Original Premises or the Expansion Premises are ready for occupancy by Tenant. If
part of either the Original Premises or the Expansion Premises is

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	 	 	 	untenable, Rent shall be prorated on a per diem basis and apportioned in accordance
with the part of either the Original Premises or the Expansion Premises which is
usable by Tenant until the damaged part is ready for Tenant’s occupancy.
Notwithstanding the foregoing, if any damage was proximately caused by an act or
omission of Tenant, its employees, agents, contractors, licensees or invitees, then,
in such event, Tenant agrees that Rent shall not abate or be diminished during the
term of this Lease.

     8.       Condemnation. Section 9.1 of the Lease is hereby deleted in its entirety and the
following new Section 9.1 is hereby inserted in place and in lieu thereof:

	 	9.1	 	CONDEMNATION: If all or any part of the Original Premises shall be
taken under power of eminent domain or sold under imminent threat to any public
authority or private entity having such power, this Lease shall terminate as to the
part of the Original Premises so taken or sold, effective as of the date possession is
required to be delivered to such authority. In such event, Building I Base Rent shall
abate in the ratio that the portion of Tenant’s Building I Square Footage taken or sold
bears to Tenant’s Building I Square Footage. If a partial taking or sale of the
Original Premises, Building I or the Project (i) substantially reduces Tenant’s Square
Footage resulting in a substantial inability of Tenant to use the Original Premises for
the Permitted Purpose, or (ii) renders Building I or the Project not commercially
viable to Landlord in Landlord’s sole opinion, either Tenant in the case of (i), or
Landlord in the case of (ii), may terminate this Lease by notice to the other party
within 30 days after the terminating party receives written notice of the portion to be
taken or sold. Such termination shall be effective 180 days after notice thereof, or
when the portion is taken or sold, whichever is sooner. All condemnation awards and
similar payments shall be paid and belong to Landlord, except any amounts awarded or
paid specifically to Tenant for removal and reinstallation of Tenant’s trade fixtures,
personal property or Tenant’s moving costs. To the extent permitted by law, Tenant
shall, however, be entitled to seek business damages from any condemning authority.
	 
	 	 	 	If all or any part of the Expansion Premises shall be taken under power of eminent
domain or sold under imminent threat to any public authority or private entity
having such power, this Lease shall terminate as to the part of the Expansion
Premises so taken or sold, effective as of the date possession is required to be
delivered to such authority. In such event, Building II Base Rent shall abate in
the ratio that the portion of Tenant’s Building II Square Footage taken or sold
bears to Tenant’s Building II Square Footage. If a partial taking or sale of the
Expansion Premises, Building II or the Project (i) substantially reduces Tenant’s
Building II Square Footage resulting in a substantial inability of Tenant to use the
Expansion Premises for the Permitted Purpose, or (ii) renders Building II or the
Project not commercially viable to Landlord in Landlord’s sole opinion, either
Tenant in the case of (i), or Landlord in the case of (ii), may terminate this Lease
by notice to the other party within 30 days after the terminating party receives
written notice of the portion to be taken or sold. Such termination shall be
effective 180 days after notice thereof, or when the portion is taken or sold,

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	 	 	 	whichever is sooner. All condemnation awards and similar payments shall be paid and
belong to Landlord, except any amounts awarded or paid specifically to Tenant for
removal and reinstallation of Tenant’s trade fixtures, personal property or Tenant’s
moving costs. To the extent permitted by law, Tenant shall, however, be entitled to
seek business damages from any condemning authority.

     9.       Termination Option. Section 12.3 of the Lease is hereby deleted in its entirety
and the following new Section 12.3 is hereby inserted in lieu and in place thereof:

	 	12.3	 	DOWNSIZING OPTION (Building I): Tenant shall have a one-time option to
terminate a portion of the Original Premises only in the event that Tenant intends to
expand its office facilities to a premises in excess of the available space in Building
I, and Tenant is moving into a building in which it will occupy no less than 130,000
Rentable Square Feet (“RSF”). By written notice to Landlord, Tenant may elect to
vacate up to 47,067 RSF of contiguous space within Building I, the location of which
Landlord and Tenant shall mutually agree upon in writing. This option only remains
open for partial termination of the respective portion of the Original Premises between
the end of the FORTY-EIGHTH (48th) month and FIFTY-SEVENTH (57th) month of the Lease
Term, and Tenant shall provide no less than TWELVE (12) months prior written notice to
Landlord. In the event that Tenant elects to vacate a portion of the Original Premises
as provided in this paragraph, Tenant shall pay to Landlord an early termination fee of
SIXTY THOUSAND and NO/100 dollars ($60,000.00). Further, in the event that Tenant
exercises the downsizing option set forth in this paragraph, Tenant agrees to give
Landlord an opportunity to submit a proposal to provide Tenant’s new occupancy need in
another building owned or managed by Landlord, or to be constructed by Landlord.
	 
	 	 	 	TERMINATION OPTION (Building II): Provided that there then exists no event
of default by Tenant under this Lease nor any event that with the giving of notice
and/or the passage of time would constitute a default, and that Tenant is the sole
occupant of the Expansion Premises, Tenant shall have a one-time option to terminate
this Lease with respect to the Expansion Premises only, effective on any date that
is between the thirty-sixth (36th ) month and the forty-fifth (45th ) month after
the Expansion Commencement Date, by providing not less than nine (9) months’ prior
written notice to the Landlord and paying to Landlord a termination fee equal to one
(1) month’s Building II Base Rent as of the effective date of such termination,
together with the unamortized costs of the tenant improvements within the Expansion
Premises and all leasing commissions paid by Landlord in connection with the lease
of the Expansion Premises hereunder. This right of termination is a one-time right,
is personal to Tenant and its Affiliates (defined below), and is non-transferable to
any assignee or sublessee (regardless of whether any such assignment or sublease was
made with or without Landlord’s consent) or other party. Notwithstanding the
foregoing, however, in the event Tenant exercises the termination option for the
Expansion Premises pursuant to this paragraph as part of entering into an agreement
with Landlord to expand and consolidate Tenant’s space and facilities into any other
project owned by the

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	 	 	 	Landlord, then the foregoing termination fee applicable to the Expansion Premises
shall not be due and payable by Tenant. “Affiliate” means (i) any entity
controlling, controlled by, or under common control of, Tenant, (ii) any successor
to Tenant by merger, consolidation or reorganization, and (iii) any purchaser of all
or substantially all of the assets of Tenant as a going concern.

     10.    Right of First Offer. Subject to the rights of Charles Schwab & Co., Inc.
(“Schwab”), in the event that all or any portion of the 25,000 rentable square feet of space which
are contiguous to the Expansion Premises (in each case, the “Additional Space”) first becomes
available for rental during the term of this Lease and provided that Landlord has not given Tenant
notice of default more than two (2) times during the immediately preceding twelve (12) months, that
there then exists no event of default by Tenant under this Lease nor any event that with the giving
of notice and/or the passage of time would constitute a default, and that Tenant is the sole
occupant of the Expansion Premises, Tenant shall have the right of first offer to lease all of the
Additional Space, subject to the following:

               (a)      Landlord shall notify Tenant when the Additional Space first becomes available for rental
and Tenant shall have seven (7) days following receipt of such notice within which to notify
Landlord in writing that Tenant is interested in negotiating terms for leasing such Additional
Space and to have its offer considered by Landlord prior to the leasing by Landlord of the
Additional Space to a third party. If Tenant notifies Landlord within such time period that Tenant
is so interested, then Landlord and Tenant shall have thirty (30) days following Landlord’s receipt
of such notice from Tenant within which to negotiate, in good faith, mutually satisfactory terms
for the leasing of the Additional Space by Tenant and to execute an amendment to this Lease
incorporating such terms or a new lease for the Additional Space.

               (b)      If Tenant does not notify Landlord within such 7 days of its interest in leasing the
Additional Space, or if Tenant does not execute such Lease amendment within such 30 days, if
applicable, then this right of first offer to lease the Additional Space will lapse and be of no
further force or effect and Landlord shall have the right to lease the Additional Space to any
other party on any terms and conditions acceptable to Landlord.

               (c)      This right of first offer to lease the Additional Space is a one-time right if and when
each Additional Space first becomes available, is personal to Tenant and is non-transferable to any
assignee or sublessee (regardless of whether any such assignment or sublease was made with or
without Landlord’s consent) or other party.

     11.    Lobby/Courtyard Use. Section 13.14 of the Lease is hereby deleted in its entirety
and the following new Section 13.14 is hereby inserted in place and in lieu thereof:

	 	13.14	 	LOBBY/COURTYARD USE: Tenant shall, upon Landlord’s prior written
authority, have the right to use the Building I lobby for display purposes including
plasma screens and kiosks, provided such use and display is deemed by Landlord to be in
good taste, at Landlord’s discretion, and such use or displays do not interfere with
any other tenant’s rights and does not constitute a nuisance. As long as Tenant
occupies the entire FIRST (1st) Floor of Building I, Tenant will have the exclusive use
of (at no additional cost) the courtyard area on the east side

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	 	 	 	of Building I and may make improvements to suit its needs subject to Landlord’s
reasonable approval. Tenant shall install and maintain any such items at Tenant’s
sole cost and expense, and Tenant shall, at Tenant’s sole cost and expense, remove
any such items and restore the Building I lobby to its original condition.

     12.    Base Rent Adjustment. Section 13.17 of the Lease is hereby deleted in its
entirety, and the following new Section 13.17 is hereby inserted in place and in lieu thereof:

	 	13.17	 	BASE RENT ADJUSTMENT: Building I Base Rent shall be adjusted on the
following dates (with Month 1 being January 1, 2005):

	 	 	 	 	 	 	 	 	 
	 	 	Monthly	 	Total Base Rent
	Period	 	Base Rent	 	For Period
	Months 1-6.5

	 	$ free -
	 	$ free -

	Months 6.5-12

	 	$	195,335.00	 	 	$	1,074,342.50	 
	Months 13-24

	 	$	214,868.50	 	 	$	2,578,422.00	 
	Months 25-36

	 	$	220,240.21	 	 	$	2,642,882.55	 
	Months 37-48

	 	$	225,709.59	 	 	$	2,708,515.11	 
	Months 49-60

	 	$	231,374.31	 	 	$	2,776,491.69	 
	Months 61-66

	 	$	237,136.70	 	 	$	1,422,820.14	 

	 		 	Building II Base Rent shall be adjusted on the following dates (with Month 1 below being the month of the Expansion Commencement Date):

	 	 	 	 	 	 	 	 	 
	 	 	Monthly	 	Total Base Rent
	Period	 	Base Rent	 	For Period
	Months 1-12

	 	$	30,401.44	 	 	$	364,817.25	 
	Months 13-24

	 	$	41,548.63	 	 	$	498,583.56	 
	Months 25-36

	 	$	42,587.35	 	 	$	511,048.20	 
	Months 37-48

	 	$	43,652.03	 	 	$	523,824.36	 
	Months 49-54

	 	$	44,743.33	 	 	$	268,459.98	 

If the Expansion Commencement Date is not the first day of the month, the Base Rent,
Operating Costs and other amounts due under the Lease for that partial month shall be
apportioned on a per diem basis and shall be paid on or before the Expansion Commencement
Date.

     13.    Signage. Section 13.19 of the Lease is hereby deleted in its entirety and the
following new Section 13.19 is hereby inserted in place and in lieu thereof:

	 	13.19	 	SIGNAGE: Landlord will allow Tenant, at Tenant’s expense, to display
its company name on the Building I facia. Specifications for any such signage must be
approved by Landlord in writing prior to Tenant’s seeking applicable permits

-11-

 

	 	 	 	from governmental authorities and installation. Landlord reserves the right in its
sole discretion, to specify details of such signage. In the event that Tenant
elects to exercise its downsizing option pursuant to Section 12.3, Landlord shall
have the right to require Tenant, at Tenant’s sole cost, to remove its sign from the
Building I facia and restore the Building I facia to its original condition,
original wear and tear excepted. Tenant, at Tenant’s sole cost and expense, shall
be required to remove all Building I signage and restore the Building I facia to its
original condition, original wear and tear excepted, upon expiration of the Lease.
	 
	 	 	 	Landlord will allow Tenant, at Tenant’s expense, to display its company name on the
Landlord’s illuminated monument sign at the entrance of Summit Park on Summit
Boulevard, which monument sign serves both Building I and Building II, and such
company name shall be similar and comparable in size, copy area, quality and
visibility as the signage/logo for Schwab currently located on such monument sign.
Such monument signage shall be installed by Tenant no later than December 31, 2005.
	 
	 	 	 	All signage will conform to applicable governing authority requirements and Tenant
shall obtain any permits or authorizations necessary for signage it installs
hereunder.
	 
	 	 	 	Landlord shall arrange for Tenant’s suite identification sign(s) and lobby directory
strip(s) at Tenant’s expense. Tenant may incorporate its logo graphics, without
color, on the suite identification sign(s).

     14.    Right of First Refusal. Landlord hereby specifically acknowledges and agrees that
the addition of the Expansion Premises to the Lease, and the Tenant’s use and occupancy thereof as
provided herein, shall not constitute or qualify as the one-time Right of First Refusal with
respect to space that becomes available in the Project as provided in Section 13.20 of the Lease.
Tenant’s ROFR as provided in Section 13.20 shall not be affected by the execution of this Amendment
or the Tenant’s lease and occupancy of the Expansion Premises.

     15.    Tenant Improvement Allowance. Section 10 of Schedule 6 of the Lease is hereby
deleted in its entirety and the following new Section 10 is hereby inserted in place and in lieu
thereof:

(10)   Landlord will provide Tenant with an allowance (the “Tenant Improvement Allowance”)
against the cost of the improvements to the Premises and against the fees and costs incurred
with respect to preparation of the Plans and Specifications for the Premises and all permit
fees. The Tenant Improvement Allowance shall be One Million Five Hundred Sixty-Five
Thousand Five Hundred Ten Dollars and Ninety-Seven Cents ($1,565,510.97). Upon expiration
or written waiver of the Downsizing Option, Landlord shall pay an additional $4.09 per
square foot of Tenant Improvement Allowance for the space not vacated up to 47,067 RSF
($192,504.03). In the event that Tenant retains possession of the Premises subject to the
Downsizing Option after the FORTY-EIGHTH (48) month, but exercises the Downsizing Option
before the FIFTY-SEVENTH (57th) month, Tenant shall receive a proportionate share
of the additional Tenant Improvement

-12-

 

Allowance which shall be determined as follows: The total of this retained RSF multiplied
by $4.09. plus the total RSF to be vacated (but retained during Downsizing Option Period)
multiplied by that number of months Tenant remains in possession divided by that proportion
of the remaining Lease Term that the total number of months after the FORTY EIGHTH
(48th) month that Tenant remains in possession of the portion of the Premises
subject to the Downsizing Option of the remaining months of the Lease Term (18 months).
[Example: If Tenant vacates the 10,000 RSF on the 50th month of the Lease, Tenant
shall receive $151,604.03 [37,067 RSF x $4.09=$151,604.03] plus $4,544.44 [(10,000 x $4.09)
x (2÷18) = $4,544.44]. The Tenant Improvement Allowance shall be paid by Landlord by joint
check to Tenant or Tenant’s designated agent and its general contractor in monthly
installments, based upon requests for payment submitted by Tenant and its general contractor
not more than monthly. Additionally, TWENTY FIVE percent (25%) of the additional Tenant
Improvement Allowance may be applied, at Tenant’s request, toward Rent. Each
request for payment shall be accompanied by a certification by the architect that all work
up to the date of the request for payment has been substantially completed, along with the
items required under subsection (7), above (except for a certificate of occupancy), for work
done or materials furnished up to the date of Tenant’s request for payment. Upon receipt
thereof, Landlord shall pay to Tenant and its general contractor (by joint check), within
TWENTY (20) days after submission of such items to Landlord, an amount equal to Landlord’s
pro-rata share of such request for payment. Landlord’s pro-rata share shall mean the
percentage that the Tenant Improvement Allowance bears to the total cost of the Tenant’s
Work (plus the architectural and engineering fees incurred with respect to the Plans and
Specifications and permit fees) (less TEN percent (10%) of each payment to be retained by
Landlord pending final completion). Upon final completion of the Tenant’s Work and receipt
by Landlord of the items required under subsection (7), above, plus reasonable evidence
indicating that all of Tenant’s Costs have been paid, Landlord shall pay to Tenant and its
general contractor (by joint check) within THIRTY (30) days the remaining Tenant Improvement
Allowance, plus the retainage (provided, however, that the retainage will not be released by
Landlord until all punchlist items have been completed). Any and all costs for the
construction of the Premises above the Tenant Improvement Allowance (“Tenant’s Costs”) shall
be paid by Tenant to the applicable contractors, subcontractors, and material suppliers.
Tenant shall receive no credit or payment for any unused portion of the Tenant Improvement
Allowance. Tenant shall be able to recapture up to TWENTY-FIVE percent (25%) of any Tenant
Improvement dollars via an offset in base rental.

     16.    Relocating Suite 300 Tenant. Landlord and Tenant acknowledge and agree that the
relocation terms and conditions contained in Section 13.21 of the Lease apply and relate to Suite
300 of Building I.

     17.    Effect of Termination of Lease for Original Premises. If this Lease is terminated
with respect to the Original Premises due to condemnation or casualty of the Original Premises, or
due to the default of Landlord with respect to the Lease and the Original Premises to the extent
that the Lease and Tenant’s obligations thereunder is terminated by a court of law and Tenant has
vacated the Original Premises, then notwithstanding any other terms and conditions of the Lease to
the contrary, Tenant shall have the right to terminate this Lease with respect to the

-13-

 

Expansion Premises simultaneously with the termination of this Lease with respect to the
Original Premises. In the event Tenant elects to exercise its right to terminate the Lease with
respect to the Expansion Premises as provided in this Section 16, Tenant shall notify Landlord of
such election in writing and such termination shall be effective simultaneously with the
termination of the Lease with respect to the Original Premises.

     18.    Effect of Amendment; Conflicts; Capitalized Terms. Except as expressly modified
or amended herein, the Lease remains unchanged and in full force and effect in accordance with its
terms. In the event of a conflict between the terms and provisions of this Amendment and the
Lease, the terms and provisions of this Amendment shall control and be given effect. All
capitalized terms not otherwise defined herein shall have the meanings and definitions ascribed to
such terms in the Lease. This Amendment shall be binding upon and inure to the benefit of the
Landlord and the Tenant and their respective successors and assigns.

     19.    Counterparts; Facsimile Copies. This Amendment may be executed simultaneously in
two or more counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument. To facilitate execution, the parties agree that this
Amendment may be executed and telecopied to the other party and that an executed telecopy shall be
as binding and enforceable as an original.

     20.    Effective Date. The “Effective Date” of this Amendment shall be date on which the
last of the Landlord or the Tenant executes this Amendment.

[Signatures appear on following page]

-14-

 

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the day and year
first above written.

	 	 	 	 	 
	 	LANDLORD:

LIBERTY PROPERTY LIMITED PARTNERSHIP

By:     Liberty Property Trust, Sole General Partner

 	 
	 	By:  	/s/ Robert Goldschmidt
 	 
	 	 	Name:  	Robert Goldschmidt 	 
	 	 	Title:  	Sr. Vice President 	 
	 

	 	 	 	 	 
	Witness:

	 	/s/ Stephanie Garcia
	 	 
	 

	 	 	 	 
	Name:

	 	Stephanie Garcia	 	 
	 
	 	 	 	 
	Witness:

	 	/s/ Xiomara Santos	 	 
	 

	 	 	 	 
	Name:

	 	Xiomara Santos	 	 

	 	 	 	 	 
	 	TENANT:

ELECTRONIC ARTS-TIBURON, a Florida corporation

 	 
	 	By:  	/s/ Bryan Neider
 	 
	 	 	Name:  	Bryan Neider 	 
	 	 	Title:  	CFO, WW Studios 	 
	 

	 	 	 	 	 
	Witness:
	 	 	 	 
	Name:

	 	 

	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Witness:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 

-15-

 

 

 

 

Schedule 1

Description of Leased Premises and/or Floor Plans

Original Premises (All within Building I)

First Floor (excluding commons areas)

Second Floor

Third Floor (excluding Suite 300, existing of 11,039 RSF)

Fourth Floor

Fifth Floor

Sixth Floor

Expansion Premises (All within Building II)

Sixth Floor

 

 

Schedule 9

Approved Tenant’s General Contractor, Architect and Engineer

General Contractor: Brasfield and Gorrie, LLC

Architect: Baker Barrios Architects

Engineer: Sims Wilkerson Engineering, Inc.exv10w2

 

Exhibit 10.2

7 February 2006

THE STANDARD LIFE ASSURANCE COMPANY

and

ELECTRONIC ARTS LIMITED

and

ELECTRONIC ARTS INC

 

AGREEMENT FOR UNDERLEASE

relating to

Onslow House, Guildford, Surrey

 

Herbert Smith LLP

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Clause	 	Headings	 	Page	 
	 
	 	 	 	 	 	 
	1.
	 	DEFINITIONS AND INTERPRETATION	 	 	1	 
	1.1
	 	Definitions	 	 	1	 
	1.2
	 	Interpretation	 	 	4	 
	 
	 	 	 	 	 	 
	2.
	 	THE LANDLORD’S WORKS	 	 	4	 
	 
	 	 	 	 	 	 
	2.1
	 	Execution of Works	 	 	4	 
	2.2
	 	Delays to the Programme	 	 	5	 
	2.3
	 	Extent of Landlord’s Obligations	 	 	5	 
	2.4
	 	Requisite Permissions	 	 	6	 
	 
	 	 	 	 	 	 
	3.
	 	MEASUREMENT OF THE PREMISES AND THE CALCULATION OF THE INITIAL RENT	 	 	6	 
	 
	 	 	 	 	 	 
	4.
	 	SITE VISITS AND MEETINGS AND SUPPLY OF INFORMATION	 	 	7	 
	 
	 	 	 	 	 	 
	4.1
	 	Entry onto the Premises to view Works	 	 	7	 
	4.2
	 	Progress meetings	 	 	7	 
	4.3
	 	Representations by Tenant	 	 	7	 
	4.4
	 	Liability	 	 	7	 
	4.5
	 	Provision of Documents	 	 	8	 
	4.6
	 	Copyright	 	 	8	 
	 
	 	 	 	 	 	 
	5.
	 	WARRANTIES	 	 	8	 
	 
	 	 	 	 	 	 
	6.
	 	PRACTICAL COMPLETION	 	 	9	 
	 
	 	 	 	 	 	 
	7.
	 	DEFECTS	 	 	10	 
	 
	 	 	 	 	 	 
	7.1
	 	Making good defects at Practical Completion	 	 	10	 
	7.2
	 	Making good defects during the Defects Period	 	 	10	 
	7.3
	 	Making good defects at final completion	 	 	10	 
	7.4
	 	Access by Landlord to make good defects	 	 	11	 
	 
	 	 	 	 	 	 
	8.
	 	HEALTH & SAFETY AND AS BUILT INFORMATION	 	 	11	 
	 
	 	 	 	 	 	 
	9.
	 	TENANT’S WORKS	 	 	12	 
	 
	 	 	 	 	 	 
	9.1
	 	Approval of Detailed Works and Method Statement	 	 	12	 
	9.2
	 	Access	 	 	12	 
	9.3
	 	Carrying out of Tenant’s Works	 	 	12	 
	9.4
	 	Co-ordination with the External Works	 	 	12	 
	9.5
	 	CDM Regulations	 	 	13	 
	9.6
	 	Health and Safety File	 	 	13	 
	9.7
	 	Link Road	 	 	13	 
	9.8
	 	Mezzanine Floor	 	 	13	 
	9.9
	 	Licence to Carry-Out Works	 	 	14	 
	9.10
	 	Co-Ordination with the Security Package works	 	 	14	 
	 
	 	 	 	 	 	 
	10.
	 	LANDLORD’S CONTRIBUTIONS	 	 	15	 
	 
	 	 	 	 	 	 
	11.
	 	CAR PARKING	 	 	15	 

 

 

	 	 	 	 	 	 	 
	Clause	 	Headings	 	Page	 
	12.
	 	SECTION 106 AGREEMENT	 	 	16	 
	 
	 	 	 	 	 	 
	13.
	 	GREEN TRAVEL PLAN	 	 	17	 
	 
	 	 	 	 	 	 
	14.
	 	OCCUPATION	 	 	17	 
	 
	 	 	 	 	 	 
	15.
	 	LEASE GRANT	 	 	17	 
	 
	 	 	 	 	 	 
	16.
	 	LOCAL LAND CHARGES ETC.	 	 	18	 
	 
	 	 	 	 	 	 
	17.
	 	TITLE	 	 	19	 
	 
	 	 	 	 	 	 
	18.
	 	DETERMINATION	 	 	19	 
	 
	 	 	 	 	 	 
	19.
	 	REPRESENTATIONS	 	 	20	 
	 
	 	 	 	 	 	 
	20.
	 	ALIENATION	 	 	20	 
	 
	 	 	 	 	 	 
	21.
	 	INSURANCE	 	 	20	 
	 
	 	 	 	 	 	 
	22.
	 	CONFIDENTIALITY	 	 	21	 
	 
	 	 	 	 	 	 
	23.
	 	CAPITAL ALLOWANCES	 	 	21	 
	 
	 	 	 	 	 	 
	24.
	 	NOTICES	 	 	22	 
	 
	 	 	 	 	 	 
	25.
	 	VALUE ADDED TAX (“VAT”)	 	 	22	 
	 
	 	 	 	 	 	 
	26.
	 	NON-MERGER	 	 	23	 
	 
	 	 	 	 	 	 
	27.
	 	GUARANTEE	 	 	23	 
	 
	 	 	 	 	 	 
	28.
	 	JURISDICTION	 	 	23	 
	 
	 	 	 	 	 	 
	29.
	 	EXCLUSION OF THIRD PARTY RIGHTS	 	 	23	 
	 
	 	 	 	 	 	 
	30.
	 	PROTECTING AGREEMENT AGAINST
LANDLORD’S TITLE	 	 	24	 

	 	 	 	 	 
	ANNEXURES:

	 	Annexure A :
	 	Lease
	 
	 	 	 	 
	 

	 	Annexure B :
	 	Landlord’s Works
	 
	 	 	 	 
	 

	 	Annexure C :
	 	Snagging Works
	 
	 	 	 	 
	 

	 	Annexure D :
	 	Programme
	 
	 	 	 	 
	 

	 	Annexure E :
	 	External Works — Derek Lovejoy London Limited drawing number 4258-002
and the CID Specification dated December 2005
	 
	 	 	 	 
	 

	 	Annexure F :
	 	Form of letter from Measurement Surveyors to Tenant
	 
	 	 	 	 
	 

	 	Annexure G :
	 	Form of Landlord’s Cladding Deed
	 
	 	 	 	 
	 

	 	Annexure H :
	 	Contractor’s Warranty
	 
	 	 	 	 
	 

	 	Annexure I :
	 	Licence to carry out Works

 

 

	 	 	 	 	 
	 

	 	Annexure J :
	 	Landlord’s cladding works
	 
	 	 	 	 
	 

	 	Annexure K :
	 	Outstanding documents
	 
	 	 	 	 
	 

	 	Annexure L :
	 	Form of Opinion Letter
	 
	 	 	 	 
	 

	 	Annexure M :
	 	Forms of warranties from the professional advisors and subcontractors
described in Annexure N
	 
	 	 	 	 
	 

	 	Annexure N :
	 	List of professional advisors and subcontractors to give warranties
to the Tenant
	 
	 	 	 	 
	 

	 	Annexure O:
	 	External Works Contractor’s Warranty
	 
	 	 	 	 
	 

	 	Annexure P:
	 	Outstanding Works
	 
	 	 	 	 
	 

	 	Annexure Q:
	 	Security Package
	 
	 	 	 	 
	 

	 	Annexure R:
	 	Brise Soleil Method Statement

 

 

THIS
AGREEMENT is made on
the
7th day of
February 2006

BETWEEN:

	(1)	 	THE STANDARD LIFE ASSURANCE COMPANY whose head office is at 30 Lothian Road, Edinburgh EH1
2PH (Co. Regn. No: SZ000004) (the “Landlord”) and

	(2)	 	ELECTRONIC ARTS LIMITED whose registered office is at 2000 Hillswood Drive, Chertsey, Surrey
KT16 0EV (Co. Regn. No: 02057591) (the “Tenant”) and

	(3)	 	ELECTRONIC ARTS INC whose registered office is at 209 Redwood Shares Parkway, Redwood City,
California 94065 (a corporation incorporated in the State of Delaware) (the “Guarantor”)

WHEREBY IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this agreement the following words and expressions have the following meanings unless
the context otherwise requires:
	 
	 	 	“Brise Soleil Method Statement” means the method statement set out at Annexure R;
	 
	 	 	“Building Contract” means the building contract dated 27th April 2001 made
between Tilebox Limited (1) and the Contractor (2) as amended and varied;
	 
	 	 	“CDM Regulations” means the Construction (Design and Management) Regulations 1994 together
with the current Approved Code of Practice relating to the same;
	 
	 	 	“Contractor” means Alfred McAlpine Capital Projects Limited (which changed its name from
Alfred McAlpine Construction Limited on 7th October 2003) (Co. Regn. No.
00247624);
	 
	 	 	“Contractor’s Warranty” means a warranty in favour of the Tenant in the form of the agreed
draft at Annexure H;
	 
	 	 	“Date of Permitted Entry” means the date defined in clause 14.1;
	 
	 	 	“Default Event” means any or all of the following to occur:

	 	(a)	 	the Tenant or the Guarantor shall have an order made or resolution passed for
its winding-up which is not removed within a period of fourteen days thereafter;
	 
	 	(b)	 	the Tenant or the Guarantor enters into voluntary winding-up other than for
the purposes of re-organisation whilst solvent;
	 
	 	(c)	 	the appointment of a provisional liquidator to the Tenant or the Guarantor;
	 
	 	(d)	 	presentation of a petition in respect of the Tenant or the Guarantor which is
not contested within fourteen days of presentation or a meeting is convened for the
purpose of considering a resolution for winding-up;
	 
	 	(e)	 	dissolution of the Tenant or the Guarantor (whether or not after winding-up);

1

 

	 	(f)	 	if in respect of the Tenant or of the Guarantor a resolution is passed or any
other step is taken by the company or its directors for the appointment of an
administrator, or an administrator is appointed, or a petition or application for an
administration order is presented in relation to the company;
	 
	 	(g)	 	if a receiver (which expression shall without prejudice to the generality
thereof include an administrative receiver) is appointed over all or any of the assets
or of the income arising from all or any of the assets of the Tenant or of the
Guarantor;
	 
	 	(h)	 	the Tenant or the Guarantor is unable to pay its debts within the meaning of
Section 123 of the Insolvency Act 1986; or
	 
	 	(i)	 	if any meeting of the Tenant or the Guarantor is convened pursuant to Section
123 of the Insolvency Act 1986 to consider a proposal for a voluntary arrangement
under Part 1 of such Act;

“Defects Period” means the period of 12 months from Practical Completion;

“Documents” means the plans elevations sections and drawings and outline specification in
respect of the Landlord’s Works and Security Package works including mechanical electrical
lift and other services and drainage and engineers drawings and manuals of all materials
and supplies used in and all other technical data necessary for the carrying out and
completion of the Landlord’s Works and, in relation to the Landlord’s Works only, and in
respect of which copyright is vested in Tilebox Limited or Tilebox Limited has the benefit
of a copyright licence capable of grant of sub-licences;

“Employer’s Agent” means Mercer and Miller of 39 Praed Street, London W2 1NR;

“External Works” means the works to the area surrounding the Podium to include the
landscaping for the South and West elevations (particularly for the elevation fronting the
pedestrian bridge link) and the residential square all as further detailed at Annexure E as
amended and/or enhanced at the Tenant’s suggestion provided there are no cost or programme
implications;

“External Works Contract” means the contract with the External Works Contractor for
carrying out the External Works;

“External Works Contractor” means the contractor employed to carry out the External Works;

“External Works Contractor’s Warranty” means a warranty from the External Works Contractor
in respect of the External Works in favour of the Tenant in the form set out at Annexure O
mutatis mutandis;

“Head Lease” means the lease under which the Landlord holds the Premises dated 16 March
2001 made between The Council of the Borough of Guildford (1) and the Landlord (2);

“Health and Safety File” means the health and safety file required to be maintained in
relation to the Premises including without limitation the Landlord’s Works, the Snagging
Works, the External Works and/or any component of them or in relation to the Tenant’s Works
or any component of them, as the context requires, pursuant to the CDM Regulations;

2

 

“Landlord’s Cladding Deed” means a deed in the form of the agreed draft at Annexure G;

“Landlord’s Works” means the works briefly described in Annexure B being the works carried
out and/or to be carried out pursuant to the Building Contract (together with the works
described in Annexure J);

“Lease” means an underlease of the Premises in the form of the agreed draft at Annexure A;

“Licence to Carry Out Works” means a Licence to carry out the Tenant’s Works in the form of
the agreed draft at Annexure I

“Measurement Surveyors” means On Centre Surveys Ltd;

“Method Statement” means a statement prepared by or on behalf of the Tenant setting out the
methods by which the Tenant intends to commence and execute the Tenant’s Works;

“Net Internal Area” means Net Internal Area as defined in the Royal Institution of
Chartered Surveyors Code of Measuring Practice 5th edition (2001);

“Opinion Letter” means a letter in respect of the Guarantor in the form of the agreed draft
at Annexure L;

“Outstanding Works” means the works described in Annexure P;

“Planning Permission” means the planning permission dated 8th September 2000
issued by Guildford Borough Council under reference 99/P/01052;

“Practical Completion” means, in relation to the Landlord’s Works and the External Works,
practical completion in accordance with the Building Contract or External Works Contract,
as the context requires, and with this agreement;

“Premises” means the premises known as Onslow House, Guildford and more particularly
described in the Lease;

“Programme” means the Landlord’s programme for the carrying out of the Landlord’s Works,
the Snagging Works and the External Works a copy of which is at Annexure D (as revised from
time to time by the Landlord);

“Rent Commencement Date” means the later of 1st June 2008 and 24 months after
the Date of Permitted Entry;

“Requisite Permissions” means the Planning Permission and all requisite building regulation
requirements, relevant British Standards and Codes of Practice, approvals, consents,
licences, permissions and certificates required from any person and all other statutory
consents necessary to commence carry out and complete the Landlord’s Works, the Snagging
Works, the Outstanding Works, the Security Package works and the External Works or, as
appropriate, the Tenant’s Works (including the works described in clause 9.8 but excluding
any consent of the superior landlord required pursuant to the Head Lease);

“Section 106 Agreement” means an agreement dated 8th September 2000 and made
between (1) The Council of the Borough of Guildford (2) Tilebox Limited (3) The Council of
the Borough of Guildford and (4) Surrey County Council;

3

 

“Security Package” means the works described in Annexure Q;

“Snagging Works” the works described in Annexure C;

“Target Date” means 1 June 2006;

“Tenant’s Representative” means Buro Four Project Services Limited of 300 St John
Street, London EC1V 4PP or such other firm or company as may be appointed by the Tenant as
such for the purposes of this agreement and notified in writing to the Landlord;

“Tenant’s Mortgagee” means a mortgagee or chargee to whom the Tenant may have charged the
benefit of this agreement with the Landlord’s consent pursuant to Clause 20.2;

“Tenant’s Works” means the works to be carried out by the Tenant for the purpose of the
initial fitting out of the Premises;

“working day” means any day from Monday to Friday (inclusive) other than Christmas Day Good
Friday and any statutory bank holiday in England.

	1.2	 	Interpretation

	 	1.2.1	 	Any expressions common to this agreement and the Lease shall have the same
meaning ascribed to them in the Lease unless this agreement otherwise prescribes.
	 
	 	1.2.2	 	Words in the singular shall include the plural and vice versa and words of
one gender shall include the other two genders.
	 
	 	1.2.3	 	If a party comprises two or more persons their obligations and liabilities
are joint and several.
	 
	 	1.2.4	 	Reference to a party agreeing not to do or omit any act or thing shall
include references to that party not permitting or suffering it to be done or omitted.
	 
	 	1.2.5	 	Any reference to a Clause or Schedule is a reference to a Clause or Schedule
of this agreement and any heading in this agreement shall not affect the construction
of this agreement or any document referred to in it.
	 
	 	1.2.6	 	In Clauses 2, 3, 4, 5, 6, 7, 10, 11, 12 and 13 “Landlord” shall only mean
the party of the first part of this agreement and the obligations on the part of the
Landlord contained in these Clauses shall be personal to the Landlord.
	 
	 	1.2.7	 	Any reference to any statute or section of a statute shall include all
subordinate legislation deriving validity from that statute or section of a statute
and shall extend to any statutory amendment modification consolidation and
re-enactment of it or such subordinate legislation for the time being in force.

	2.	 	THE LANDLORD’S WORKS
	 
	2.1	 	Execution of Works

The Landlord has procured and shall procure the design, execution and completion of the
Landlord’s Works, the External Works, the Outstanding Works, the Security Package works and
the Snagging Works:

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	 	2.1.1	 	at its own expense;
	 
	 	2.1.2	 	with due diligence and expedition;
	 
	 	2.1.3	 	in compliance with all Requisite Permissions;
	 
	 	2.1.4	 	in a good and workmanlike manner using sound materials of good quality;
	 
	 	2.1.5	 	in accordance with all statutes, statutory orders and regulations made under
or deriving validity from them and which affect such works and any enforceable codes
of practice of the local authority which shall affect the execution and completion of
the Landlord’s Works, the Snagging Works and/or the External Works, once completed;
	 
	 	2.1.6	 	in accordance with the Programme, the Brise Soleil Method Statement and this
Agreement.

	2.2	 	Delays to the Programme

	 	2.2.1	 	The Landlord shall procure that the Landlord’s Works have achieved Practical
Completion by the Target Date. The Landlord shall use all reasonable endeavours to
procure that the External Works have achieved Practical Completion and the Snagging
Works and the Outstanding Works are complete by the Target Date.
	 
	 	2.2.2	 	The Landlord shall forthwith advise the Tenant in the event that the
Landlord’s Works and/or the External Works and/or the Snagging Works are not
proceeding substantially in accordance with the Programme.
	 
	 	2.2.3	 	Without prejudice to clauses 2.1.2, 2.2.1, 15.4 and 15.5 if the Landlord is
of the opinion that the Landlord’s Works and/or the External Works and/or the Snagging
Works will not be completed or are not likely to be completed by the anticipated dates
as specified in the Programme then the Landlord shall prepare a revised Programme
identifying the new anticipated dates and shall supply the Tenant with a copy of the
revised Programme.
	 
	 	2.2.4	 	For the purposes of clause 2.2 the Target Date shall be extended by
reference to any impediment, prevention or default, whether by act or omission, by the
Tenant or any person for whom the Tenant is responsible except to the extent that it
was caused or contributed to by any default, whether by act or omission, of the
Landlord or any person for whom it is responsible.
	 
	 	2.2.5	 	The Landlord shall start the Security Package works immediately following
Practical Completion and will use all reasonable endeavours to complete them prior to
the Target Date.

	2.3	 	Extent of Landlord’s Obligations

	 	2.3.1	 	Subject to clause 2.3.2 to the extent permitted by law the Landlord’s
liability pursuant to this agreement in respect of the Landlord’s Works the External
Works and the Snagging Works shall following the later of the date of Practical
Completion, completion of the Snagging Works, the Target Date and provision of the
Contractor’s Warranty and the Landlord’s Cladding Deed pursuant to clause 5 of this
agreement, be confined to the obligations expressly set out in clause 7 of

5

 

	 	 	 	this agreement and in clause 5.4 of the Lease and in the Landlord’s Cladding Deed.
	 
	 	2.3.2	 	The Landlord shall not be relieved of its obligations pursuant to clause 6.2
of this agreement unless and until the collateral warranty from the Employer’s Agent
to be provided pursuant to clause 5 has been delivered to the Tenant.

	2.4	 	Requisite Permissions
	 
	 	 	The Landlord shall obtain all of the Requisite Permissions so as to enable the Landlord’s
Works, the External Works, the Outstanding Works, the Security Package works and the
Snagging Works to be designed, carried out and completed as expeditiously as possible and
in any event by the Target Date.
	 
	3.	 	MEASUREMENT OF THE PREMISES AND THE CALCULATION OF THE INITIAL RENT
	 
	3.1	 	The Net Internal Area of the Premises has been measured by the Measurement Surveyors as
follows:-

	 	 	 	 	 
	Floor	Measured Area (square feet)
	Fourth Floor Offices

	 	 	6,615	 
	Third Floor Offices

	 	 	17,714	 
	Second Floor Offices

	 	 	20,446	 
	Second Floor Terrace

	 	 	789	 
	First Floor Offices

	 	 	21,313	 
	First Floor Terrace

	 	 	687	 
	Podium Offices

	 	 	20,725	 
	Ground Floor Offices

	 	 	2,181	 
	Podium Reception

	 	 	3,307	 
	Ground Floor Entrance Hall

	 	 	1,005	 
	 
	 	 	 	 
	Total

	 	 	94,782	 
	 
	 	 	 	 

	3.2	 	On or before grant of the Lease, the Landlord will procure that the Measurement Surveyors
issue to the Tenant a letter in the form annexed (Annexure F).

	3.3	 	The Measurement Surveyors have acted as experts and their determination as to the Net
Internal Area of the Premises is (except in the case of obvious error) final and binding upon
the Parties.

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	4.	 	SITE VISITS AND MEETINGS AND SUPPLY OF INFORMATION
	 
	4.1	 	Entry onto the Premises to view Works
	 
	 	 	The Landlord shall permit the Tenant, the Tenant’s Representative and their respective
advisers at all reasonable times to enter onto the Premises (accompanied by a
representative of the Landlord if the Landlord shall so require) to inspect and record the
progress of the Landlord’s Works and/or the External Works and/or the Snagging Works and/or
the Outstanding Works and/or the Security Package works and to prepare plans drawings
specifications and tenders for the Tenant’s Works subject nevertheless to:

	 	4.1.1	 	reasonable prior notice being given to the Landlord;
	 
	 	4.1.2	 	compliance with the proper and reasonable safety requirements imposed by the
Landlord or the Contractor from time to time for the Premises and notified (insofar as
practicable in writing) to the Tenant; and
	 
	 	4.1.3	 	the Tenant, the Tenant’s Representative and their respective advisers not
materially impeding the progress of the Landlord’s Works and/or the External Works
and/or the Snagging Works and/or the Outstanding Works and/or the Security Package
works (as the case may be)

and the Landlord shall provide personal protective equipment for the use of the Tenant, the
Tenant’s Representative and their advisors during such visits.

	4.2	 	Progress meetings
	 
	 	 	The Tenant, the Tenant’s Representative and their advisers shall be entitled to attend
progress meetings with the Landlord, the Contractor and the External Works Contractor which
the Landlord shall procure shall take place no less frequently than monthly. The Landlord
shall provide the Tenant with reasonable prior written notice of the date, time and place
of each such meeting together with a copy of any proposed agenda.
	 
	4.3	 	Representations by Tenant
	 
	 	 	The Landlord shall take proper account of (but shall not be bound by) any representations
made by or on behalf of the Tenant in connection with the Landlord’s Works and/or the
External Works and/or the Snagging Works and/or the Outstanding Works and/or the Security
Package works and the progress thereof Provided that:

	 	4.3.1	 	nothing in this Clause shall interfere in any way with the rights of the
Landlord under the Building Contract or the External Works Contract; and
	 
	 	4.3.2	 	any representations made by or on behalf of the Tenant shall be made at progress
meetings pursuant to clause 4.2 and/or confirmed or made in writing direct to the
Landlord and shall not be made to any other party involved in the carrying out or
construction of the Landlord’s Works or the External Works or the Snagging Works or
the Outstanding Works or the Security Package works.

	4.4	 	Liability
	 
	 	 	The liability of the Landlord under this Agreement shall not be reduced or excluded by any
approval, comment, representation, consent, enquiry or inspection into any relevant matter

7

 

	 	 	which may be made or carried out by or on behalf of the Tenant or by any failure to make or
give any such approval, comment, representation, consent, enquiry or inspection.
	4.5	 	Provision of Documents
	 
	 	 	The Landlord shall provide the Tenant with [a copy of the outstanding documents listed in
Annexure K prior to 31 January 2006 and] the following documents as and when the same are
prepared, executed or issued (insofar as they have not previously been provided):

	 	4.5.1	 	The Programme;
	 
	 	4.5.2	 	Instructions issued to the Contractor and the External Works Contractor
after the date of this agreement;
	 
	 	4.5.3	 	Minutes of site meetings which take place after the date of this agreement;
	 
	 	4.5.4	 	Any Requisite Permissions;
	 
	 	4.5.5	 	Test certificates and commissioning reports.

	4.6	 	Copyright

	 	4.6.1	 	The Landlord will, as soon as reasonably practicable, procure a copyright
licence from Tilebox Limited in favour of the Landlord in relation to the Documents in
such form which will enable it to grant to the Tenant the copyright sub-licence in
clause 4.6.2 and shall provide a copy of such copyright licence to the Tenant within 2
working days of its receipt.
	 
	 	4.6.2	 	With effect from the date of the licence referred to in clause 4.6.1, the
Landlord hereby grants to the Tenant with full title guarantee an irrevocable,
royalty-free and non-exclusive licence to copy reissue and use the Documents for any
and all purposes connected with the Premises. Such licence shall carry the right to
grant sub-licences and shall be transferable to third parties. The Landlord will not
be liable for any use of the Documents which is not permitted by the terms of this
licence.

	5.	 	WARRANTIES

	5.1	 	On or before grant of the Lease the Landlord shall procure the proper execution and
unconditional delivery to the Tenant of the Contractor’s Warranty and the External Works
Contractor’s Warranty.

	5.2	 	The Landlord shall use all reasonable endeavours to procure the proper execution (as deeds)
and unconditional delivery to the Tenant, before the grant of the Lease, of deeds of warranty:

	 	5.2.1	 	from each of the professional advisers named at Annexure N in the form of
the relevant draft at Annexure M; and
	 
	 	5.2.2	 	from each of the sub-contractors named at Annexure N substantially in the
form of the relevant draft at Annexure M.

	5.3	 	Contemporaneously with the grant of the Lease the Landlord and the Tenant shall properly
execute and unconditionally deliver the Landlord’s Cladding Deed and the Tenant shall not

8

 

	 	 	   be obliged to complete the Lease unless the Landlord so executes and delivers the
Landlord’s Cladding Deed.

	5.4	 	The Landlord agrees that the Tenant may waive its right not to complete the Lease in the
circumstances described in clauses 5.1 and 5.3 in whole or in part and at any time by written
notice to that effect.

	5.5	 	During the period from the date five (5) years after the Date of Permitted Entry to the date
ten (10) years thereafter (or the earlier determination of the Lease) and if reasonably
requested to do so by the Tenant or any lawful assignee of the Lease, the Landlord shall
enforce the benefit of any obligation to the Landlord or the occupier of the Premises in
connection with any and all guarantees from suppliers and sub-contractors in relation to the
Premises, the Landlord’s Works, the Snagging Works, the Outstanding Works, the Security
Package works and the External Works and pay the proceeds of such enforcement (if any) to the
Tenant on receipt.

	6.	 	PRACTICAL COMPLETION

	6.1	 	The Landlord shall procure that the Tenant and the Tenant’s Representative are given not less
than ten working days’ written notice of any inspection and as much notice as reasonably
practicable of any re-inspection of the Landlord’s Works and/or External Works with a view to
the issue of any certificate or statement of practical completion pursuant to the Building
Contract or the External Works Contract and the Tenant and/or any of the Tenant’s advisers
shall be entitled to inspect the Landlord’s Works and the External Works and shall be entitled
prior to the actual issue of such certificates or statements (as the case may be) to make
representations to the Landlord. The Landlord shall ensure that the Employer’s Agent has due
regard to such representations but the Employer’s Agent’s independent discretion in the issue
of the certificate or statement of practical completion shall not be fettered by such
representations.

	6.2	 	Without prejudice to clause 6.1, the Landlord shall procure that no certificate or statement
of Practical Completion is issued until

	 	6.2.1	 	The Landlord’s Works or the External Works as the case may be have achieved
Practical Completion;
	 
	 	6.2.2	 	(in respect of the Landlord’s Works) the external envelope and weathershield
of the Premises including all glazing is completed;
	 
	 	6.2.3	 	(in respect of the Landlord’s Works) the lifts (if any) serving the Premises
are fully operational, in accordance with the Building Contract and the Requisite
Permissions and all testing and commissioning has been carried out and all necessary
keys have been provided to the Tenant;
	 
	 	6.2.4	 	the Premises are clean and free of all rubbish and any presence of the
Contractor and the External Works Contractor as the case may be, their
representatives, materials and equipment;
	 
	 	6.2.5	 	all Requisite Permissions have been obtained and all testing and
commissioning in relation to the Premises has been carried out, witnessed and
completed.

9

 

	6.3	 	The Landlord shall forthwith following the issue of any certificate or statement of practical
completion pursuant to the Building Contract or the External Works Contract serve a copy on
the Tenant.

	6.4	 	Not later than ten working days’ prior to the anticipated completion of the Snagging Works,
the Outstanding Works and/or the Security Package works (as the case may be) the Landlord
shall procure that the Tenant and the Tenant’s Representative are given written notice of the
anticipated date of completion of the relevant works.

	6.5	 	On or before such anticipated date of completion notified pursuant to clause 6.4, the Tenant
and/or any of the Tenant’s advisers shall be entitled to inspect the Snagging Works, the
Outstanding Works and/or the Security Package works, as the case may be. The Tenant and the
Tenant’s advisers shall be entitled to make representations in relation to such Snagging
Works, Outstanding Works and/or the Security Package works to which the Landlord shall ensure
the person responsible for accepting completion of such works has due regard (but shall not be
bound by).
	 
	6.6	 	Following Practical Completion of the Landlord’s Works the Landlord will:

	 	   6.6.1	 	perform and observe clause 5.4 of the Lease as if it were set out in full in
this agreement (mutatis mutandis); and
	 
	 	   6.6.2	 	allow Guildford Borough Council access to the Premises to carry out the
works described in the notices by letter served on the Landlord and dated the
6th and 14th September 2005.

	7.	 	DEFECTS
	 
	7.1	 	Making good defects at Practical Completion
	 
	 	 	Following the date of Practical Completion, the Landlord shall procure the completion or
remedying of any defects, omissions and snagging items identified in any snagging list
attached to or issued with the certificate or statement of Practical Completion. The
Landlord shall use all reasonable endeavours to procure that such completion or remedying
is completed as soon as reasonably practicable following the date of Practical Completion.
	 
	7.2	 	Making good defects during the Defects Period
	 
	 	 	Without prejudice to any other obligation of the Landlord (whether under this Agreement or
otherwise) the Landlord shall procure that any defects, shrinkages or other faults
appearing in the Landlord’s Works, the Snagging Works, the Outstanding Works, the Security
Package works and/or the External Works within the Defects Period and which are notified by
the Tenant to the Landlord not less than 5 working days prior to the expiry of the Defects
Period are made good at no cost to the Tenant and as soon as reasonably practicable in
accordance with this Agreement and to the Tenant’s reasonable satisfaction.
	 
	7.3	 	Making good defects at final completion
	 
	 	 	The Landlord shall procure that the Employer’s Agent prepares a schedule listing any
omissions defects shrinkages or other faults (save for any caused by any act neglect or
default on the part of the Tenant) appearing in the Landlord’s Works, the Snagging Works,
the Outstanding Works, the Security Package works and the External Works and any part
thereof (“the Defects List”) and supply a copy thereof to the Tenant’s Representative not

10

 

	 	 	later than twenty working days before the expiry of the relevant Defects Period and the
Tenant shall procure that not later than ten working days after the receipt of such
schedule the Tenant’s Representative makes representations to the Employer’s Agent or the
Landlord by listing any omissions defects shrinkages or other faults which they have
observed and the Landlord shall procure that the Employer’s Agent shall have due regard to
such list in finalising its Defects List. The Landlord shall procure that all items
included in the Defects List are completed or made good to the reasonable satisfaction of
the Tenant.
	 
	7.4	 	Access by Landlord to make good defects

	 	7.4.1	 	The Tenant shall permit the Landlord, the Employer’s Agent and the
Contractor and/or the External Works Contractor (as the case may be) and all persons
reasonably authorised by them on giving reasonable prior written notice and at
reasonable times to have access to such parts of the Premises as are necessary in
order to remedy any such defects pursuant to clause 7.
	 
	 	7.4.2	 	Such access will be in accordance with a programme submitted by the Landlord
and approved by the Tenant (such approval not to be unreasonably withheld or delayed).
	 
	 	7.4.3	 	The Landlord shall procure that all persons given access to the Premises in
order to comply with its obligations pursuant to clause 7:

	 	   (A)	 	are supervised by a representative of the Contractor at all
times;
	 
	 	   (B)	 	comply with the proper and reasonable safety requirements
imposed by the Tenant or the Tenant’s contractor from time to time for the
Premises and notified to the Landlord in writing;
	 
	 	   (C)	 	comply with the programme agreed by the Tenant pursuant to
clause 7.4.2 so as to cause the minimum disruption to the Tenant’s business;
and
	 
	 	   (D)	 	do not materially impede the progress of the Tenant’s Works
and/ or the Tenant’s use and enjoyment of the Premises.

	 	7.4.4	 	Without prejudice to clause 7.4.3(D), for so long as the Contractor shall
require access to the Premises to make good defects during the execution of the
Tenant’s Works the Landlord and the Tenant shall co-ordinate the execution of the
Tenant’s Works and the remedying of defects and shall procure that there shall be full
liaison between each other’s respective contractors and workmen so as to minimise the
length of any delays and the possibility of interference with each other’s works.
	 
	 	7.4.5	 	The Landlord shall procure that any damage caused in complying with its
obligations under clause 7 is made good forthwith and to the reasonable satisfaction
of the Tenant.

	8.	 	HEALTH & SAFETY AND AS BUILT INFORMATION
	 
	 	 	As soon as reasonably practicable after Practical Completion the Landlord shall at its own
cost supply the Tenant with a complete set of the “As-Built” scale drawings and the Health
and Safety File (in the format specified in the Building Contract) which the Landlord shall
procure is prepared in accordance with the CDM Regulations.

11

 

	9.	 	TENANT’S WORKS
	 
	9.1	 	Approval of Detailed Works and Method Statement

	 	9.1.1	 	The Tenant shall as soon as reasonably practicable (and in any event before
1st May 2006) submit to the Landlord in writing for its written approval
(such approval not to be unreasonably withheld or delayed) full particulars of its
proposals for the Tenant’s Works and which shall be deemed granted if no response to
the Tenant’s application is received by the Tenant within 10 working days of receipt
of the application by the Landlord.
	 
	 	9.1.2	 	Prior to commencement of the Tenant’s Works, the Tenant shall provide a copy
of its Method Statement to the Landlord. The Method Statement shall include the
details of contact names for the consultants and contractors proposed for the design
and carrying out of the Tenant’s Works.

	9.2	 	Access
	 
	 	 	From the later of:

	 	9.2.1	 	the Landlord’s approval of the Tenant’s Works in accordance with clause
9.1.1;
	 
	 	9.2.2	 	Practical Completion of the Landlord’s Works; and
	 
	 	9.2.3	 	the Target Date,

(“the Access Date”) the Tenant shall be permitted access to the Premises in accordance with
clause 14 of this agreement for the purpose of carrying out of the Tenant’s Works.

	9.3	 	Carrying out of Tenant’s Works
	 
	 	 	The Tenant’s Works shall be carried out and completed:

	 	9.3.1	 	at its own expense;
	 
	 	9.3.2	 	without avoidable delay;

	 
	 	9.3.3	 	in a good and workmanlike manner using sound materials of good quality;
	 
	 	9.3.4	 	by reputable contractors;
	 
	 	9.3.5	 	in accordance with all Requisite Permissions relating to the Tenant’s Works;
and
	 
	 	9.3.6	 	in accordance with the Method Statement.

	9.4	 	Co-ordination with the External Works
	 
	 	 	The Tenant shall during the carrying out of the Tenant’s Works:

	 	9.4.1	 	take such precautions at all times and at its own cost as the Landlord and
its insurers or either of them may reasonably require for the protection of the
Premises and the External Works from the effect of the Tenant’s Works;
	 
	 	9.4.2	 	procure, at no cost to the Landlord, that its fitting-out contractors shall
maintain public liability insurance;

12

 

	 	9.4.3	 	not cause any material delay to or interference with the External Works nor
give any instruction to the contractors engaged on them and shall make good all or any
damage to the Landlord and its property caused by the carrying out of the Tenant’s
Works

provided always that the Landlord shall ensure that those carrying out the External Works
during the carrying out of the Tenant’s Works shall be properly supervised and do not cause
any material delay or interference with the Tenant’s Works nor give any instructions to the
contractors engaged on the Tenant’s Works and shall make good all and any damage to the
Tenant, its property and the Tenant’s Works caused by the carrying out of the External
Works.

	9.5	 	CDM Regulations
	 
	 	 	In so far as the Tenant’s Works and/or any works carried out under clause 9.8 are works to
which the Regulations apply the Tenant shall:

	 	   9.5.1	 	act as the client in relation to such works for the purposes of the CDM
Regulations and shall issue a declaration to that effect under regulation 4 of the CDM
Regulations and send a copy forthwith to the Landlord and the Tenant warrants that it
will not derogate in any manner from such declaration or its acceptance of
responsibilities as a client under the CDM Regulations;
	 
	 	   9.5.2	 	comply in all respects with the CDM Regulations and require that any person
involved in carrying out such works complies with the CDM Regulations.

	9.6	 	Health and Safety File
	 
	 	 	Subject to clause 9.9.1, following completion of the Tenant’s Works the Tenant shall liaise
with the planning supervisor (if any) employed by the Landlord for inter alia the Tenant’s
Works as to any necessary updating of the Health and Safety File and supply to such
planning supervisor all information, drawings and details of the Tenant’s Works as
reasonably required by such planning supervisor and use all reasonable endeavours to ensure
that such updating is completed within four weeks of completion of the Tenant’s Works.
	 
	9.7	 	Link Road
	 
	 	 	The Landlord will use reasonable endeavours to ensure that the link road passing beneath
the building between the main entrance and ground floor areas remains closed to public
traffic during the carrying out of the Tenant’s Works.
	 
	9.8	 	Mezzanine Floor
	 
	 	 	The Landlord consents in principle (but subject to the following provisions of this clause)
to the construction by the Tenant of a mezzanine floor or part floor above the ground floor
office (“the mezzanine works”) and, if required under the terms of the Head Lease, will use
all reasonable endeavours to procure consent of the superior landlord thereto:-

	 	   9.8.1	 	the Tenant shall provide detailed drawings and specifications of the
mezzanine works for the approval of the Landlord (such approval not to be unreasonably
withheld) and, if required under the terms of the Head Lease, the superior landlord;

13

 

	 	9.8.2	 	the Tenant shall following such approval obtain all Requisite Permissions
for the mezzanine works;
	 
	 	9.8.3	 	the Tenant shall not commence the mezzanine works until clauses 9.8.1 and
9.8.2 (in so far as such Requisite Permissions are capable of being obtained and/or
complied with prior to carrying out the mezzanine works) have been complied with;
	 
	 	9.8.4	 	the Tenant shall carry out and complete the work in accordance with clause
9.3 (mutatis mutandis);
	 
	 	9.8.5	 	the Tenant shall procure a collateral warranty in favour of the Landlord
from each of the building contractor and structural engineer engaged by the Tenant in
relation to the mezzanine works. Such collateral warranties shall be in a form no
less onerous that those published by the Joint Contracts Tribunal and Construction
Industry Council at the time of engagement, subject to such amendments as may be
required by the professional indemnity insurers of the contractor and/or the
structural engineer, as the case may be and shall be executed as a deed.

9.9 Licence to Carry-Out Works

	 	9.9.1	 	No later than 20 working days after the completion of the Tenant’s Works and
(if applicable) the mezzanine works the Tenant shall at its own cost supply the
Landlord with a complete set of the “As-Built” drawings relating to the Tenant’s Works
and (if applicable) the mezzanine works;
	 
	 	9.9.2	 	The Landlord will grant and the Tenant will take up and execute the Licence
to Carry Out Works as soon as reasonably practicable and in any event within three
weeks of the date of delivery of the “As-Built” drawings pursuant to clause 9.9.1.

	9.10	 	Co-Ordination with the Security Package works
	 
	     The Landlord shall during the carrying out of the Security Package works:

	 	9.10.1	 	take such precautions at all times and at its own cost as the Tenant and its
insurers or either of them may reasonably require for the protection of the Premises
and the Tenant’s Works from the effect of the Security Package works;
	 
	 	9.10.2	 	procure, at no cost to the Tenant, that the contractors engaged in relation to the
Security Package works shall maintain public liability insurance;
	 
	 	9.10.3	 	not cause any material delay to or interference with the Tenant’s Works nor give any
instruction to the contractors engaged on them and shall make good all or any damage
to the Tenant, its property and the Premises caused by the carrying out of the
Security Package works

provided always that the Tenant shall ensure that those carrying out the Tenant’s Works
during the carrying out of the Security Package works shall be properly supervised and do
not cause any material delay or interference with the Security Package works nor give any
instructions to the contractors engaged on the Security Package works and shall make good
all and any damage to the Landlord, its property and the Security Package works caused by
the carrying out of the Tenant’s Works.

14

 

	10.	 	LANDLORD’S CONTRIBUTIONS
	 
	10.1	 	The Landlord shall on the grant of the Lease pay to the Tenant in cleared funds (subject to
the receipt of invoices addressed to the Landlord):-

	 	10.1.1	 	the amount of £75,000 (exclusive of VAT) as a contribution to the cost of purchasing
and installing floor boxes provided that the Tenant may use this sum as a contribution
to their overall cabling of the Premises and possible installation of grommets rather
than floor boxes;
	 
	 	10.1.2	 	the amount of £210,125 (exclusive of VAT) as a contribution to the cost of the
Tenant of removing and disposing of the existing carpet tiles and purchasing and
laying new carpet tiles;
	 
	 	10.1.3	 	the amount of £82,540 (exclusive of VAT) as a contribution to the cost of fitting
out the ground floor office area to Category A Standard;
	 
	 	10.1.4	 	the amount of £43,000 (exclusive of VAT) as a contribution to the additional cost of
fitting out and in lieu of the provision of an external hoist and removal and
replacement of glazing panels for the purpose of carrying out the Tenant’s Works.

	10.2	 	The Landlord shall on the Date of Permitted Entry pay to the Tenant in cleared funds the
amount of £5,000 towards the cost of insuring the Tenant’s Works.

	11.	 	CAR PARKING
	 
	11.1	 	The Landlord will co-operate with the Tenant in making reasonable representations to
Guildford Borough Council to seek agreement that the 100 car spaces which, under the terms of
the Head Lease, are to be available for public use at weekends and public holidays may be
exclusively used by the Tenant (here meaning Electronic Arts Limited and/or any Group Company
(as defined in the Lease) of Electronic Arts Limited in occupation of the Premises or any part
of them in accordance with the Lease) during the term of the Lease or any renewal of it.
	 
	11.2	 	The Landlord and Tenant shall act in good faith and use all reasonable endeavours to obtain
the Council’s agreement PROVIDED THAT neither the making of such representations nor their
outcome (successful or otherwise) shall be a pre-condition to completion of the Lease.
	 
	11.3	 	Subject only to the Council’s agreement, if so requested by the Tenant, the Landlord will,
without delay, enter in to a deed of variation of or supplemental to the Head Lease to give
effect to the change described in clause 11.1.
	 
	11.4	 	The Landlord and Tenant will be equally responsible for the Council’s reasonable and proper
costs, disbursements and VAT in relation to such deed and will otherwise each be responsible
for their own costs.

15

 

	11.5	 	The Landlord agrees not to serve notice pursuant to paragraph 1.3 of Schedule D of the Head
Lease before the date immediately prior to the expiry of three months from and including the
date of Practical Completion of the Landlord’s Works without the Tenant’s prior consent (such
consent not to be unreasonably withheld or delayed).
	 
	12.	 	SECTION 106 AGREEMENT
	 
	12.1	 	In this clause 12 and clause 15 of this Agreement the following words and expressions have
the following meanings unless the context otherwise requires:
	 
	 	 	“Art Works” means the ornamental features and/or works of art as defined in the Section 106
Agreement; and
	 
	 	 	“Staircase Works” means the refurbishment and improvement of the south western car park
staircase leading to Guildford Railway Station.
	 
	12.2	 	In relation to the Art Works:

	 	12.2.1	 	the Tenant will observe and perform paragraph 1 of the First Schedule to the Section
106 Agreement and on the date of completion of the Lease the Landlord will reimburse
the Tenant (in cleared funds) in respect of the proper cost thereof up to a maximum of
forty thousand pounds (£40,000); and
	 
	 	12.2.2	 	if reasonably required by the Tenant, the Landlord will use all reasonable
endeavours to procure that The Council of the Borough of Guildford complies with its
obligations in paragraph 1 of the First Schedule to the Section 106 Agreement.

	12.3	 	In relation to the Staircase Works, the Landlord will:

	 	12.3.1	 	observe and perform paragraph 3 of the First Schedule to the Section 106 Agreement;
or
	 
	 	12.3.2	 	secure The Council of the Borough of Guildford’s agreement by:

	 	(A)	 	formal deed of variation to the Section 106 Agreement (if
required by The Council of the Borough of Guildford); or
	 
	 	(B)	 	otherwise (and evidenced in a manner acceptable to the
Tenant acting reasonably)

to carry out the Staircase Works at the Landlord’s cost

and in either case by the Target Date.

	12.4	 	The Landlord will forthwith make any payments under the Section 106 Agreement that have not
been made (in particular the balance of twenty five thousand pounds (£25,000) due to The
Council of the Borough of Guildford pursuant to paragraph 2.3 of the First Schedule) and
indemnify the Tenant against all actions, claims, demands and proceedings made against the
Tenant and all costs, expenses, liabilities and losses incurred directly or indirectly by the
Tenant as a result of any breach of the Section 106 Agreement (other than any breach due to
the non observance or non performance of paragraph 1 of the First Schedule to the Section 106
Agreement and/or the provisions relating to green travel plan

16

 

	 	 	referred to in clause 13) and/or the Section 278 Agreement dated the 3rd
November 2000 between Surrey County Council (1) and Tilebox Limited (2).
	 
	13.	 	GREEN TRAVEL PLAN

	13.1	 	The Landlord shall (to the extent it has not already done so) supply full details of the
draft Green Travel Plan which it has caused to be prepared and will afford all reasonable
assistance to the Tenant (including providing details of contributions made to highway
improvements) in this regard to facilitate the agreement of the plan in accordance with
paragraph (a) of the third schedule to the Section 106 Agreement.

	13.2	 	Subject to clause 13.1, the Tenant shall agree and implement a Green Travel Plan prior to the
Date of Permitted Entry in accordance with paragraph (a) of the third schedule to the Section
106 Agreement.
	 
	14.	 	OCCUPATION

	14.1	 	With effect from the later of:

	 	14.1.1	 	the Target Date; and
	 
	 	14.1.2	 	Practical Completion of the Landlord’s Works;

  (the
“Date of Permitted Entry”) and until the grant of the Lease the Tenant may occupy the
Premises.

	14.2	 	The Tenant’s occupation of the Premises shall be as licensee and (whether or not it is in
occupation of the Premises) the Tenant shall pay the Landlord immediately after and with
effect from the Date of Permitted Entry a licence fee equivalent in all respects (relating to
amount and the timing manner method and apportionment of payment) to the several rents
expressed to be payable from time to time in the Lease together with Value Added Tax thereon
as if the Lease had actually been granted for a term commencing on the Date of Permitted Entry
PROVIDED ALWAYS THAT the Tenant shall not be obliged to pay a licence fee equivalent to the
rent first reserved by the Lease for any period prior to the Rent Commencement Date.

	14.3	 	The parties shall otherwise perform and observe all the covenants and conditions on their
respective parts to be contained in the Lease.

	14.4	 	This agreement shall not operate as a demise nor confer any proprietary right in the Premises
(other than one to occupy as licensee) on the Tenant.

	14.5	 	Prior to the Date of Permitted Entry the Landlord will procure that Elite Security’s contract
is determined insofar as it relates to the Premises.

	15.	 	LEASE GRANT
	 
	15.1	 	Engrossment of the Lease
	 
	 	 	The Landlord’s solicitors shall prepare the engrossments of the Lease and a counterpart of
it.

17

 

	15.2	 	Completion of the Lease
	 
	 	 	The Tenant and (in consideration of the Landlord having entered into this agreement at the
Guarantor’s request) the Guarantor shall execute and deliver the counterpart and the
Landlord shall execute and grant the Lease on the tenth working day next after the later
of:

	 	15.2.1	 	the Date of Permitted Entry; and
	 
	 	15.2.2	 	completion of the Snagging Works;

(whether or not the Tenant shall take access under this agreement).

	15.3	 	Terms of the Lease
	 
	 	 	The following provisions shall apply in relation to the grant of the Lease:

	 	15.3.1	 	the Term shall be computed from the Date of Permitted Entry;
	 
	 	15.3.2	 	the rent first reserved under the Lease shall be due and commence to be payable on
the Rent Commencement Date;
	 
	 	15.3.3	 	the Insurance Rent under the Lease shall be payable from the Date of Permitted Entry

provided that credit shall be given for all payments made by the Tenant pursuant to clause
14 in relation to the same period(s) of time.

	15.4	 	Determination
	 
	 	 	If Practical Completion of the Landlord’s Works has not occurred on or before the
1st September 2006 the Tenant may determine this agreement by written notice to
the Landlord to that effect at any time thereafter and if Practical Completion of the
Landlord’s Works has not occurred by 31st December 2006 either the Landlord or
the Tenant may determine this agreement by written notice to the other to that effect and
clause 18.2 and 18.3 of this agreement shall apply.

	15.5	 	Compensation for delay
	 
	 	 	If Practical Completion of the Landlord’s Works occurs after the Target Date as extended
pursuant to clause 2.2.4 the Landlord will pay the Tenant liquidated damages in the sum of
£8,219 (exclusive of VAT) per day for each day from and including the 2nd June
2006 to and excluding the later of the Access Date and the date on which this agreement is
determined in accordance with clause 15.4 of this agreement.
	 
	15.6	 	Opinion Letter
	 
	 	 	The Guarantor shall deliver the duly signed Opinion Letter to the Landlord on exchange of
this agreement.
	 
	16.	 	LOCAL LAND CHARGES ETC.
	 
	 	 	The Lease will be granted subject to:

	16.1	 	all local land charges whether registered or not before or after the date hereof and all
matters capable of registration as local land charges whether or not actually so registered;

18

 

	16.2	 	all notices orders resolutions restrictions agreements directions and proposals therefor made
by any local or other competent authority before or after the date hereof;

16.3

	 	   16.3.1	 	any matters which are unregistered interests which override registered dispositions
under Schedule 3 to the Land Registration Act 2002;
	 
	 	   16.3.2	 	such unregistered interests as may affect the Premises to the extent and so long as
they are preserved by the transitional provisions of Schedule 12 of the Land
Registration Act 2002; and

	16.4	 	all matters contained in or referred to in schedule 2 to the Lease.
	 
	17.	 	TITLE
	 
	 	 	The Landlord’s title to grant the Lease having been deduced the Tenant shall not raise any
objection to that title and the Landlord shall not be required to reply to any requisitions
on that title except in relation to any matters not previously disclosed which are revealed
by the Tenant’s solicitors pre-completion searches at HM Land Registry.
	 
	18.	 	DETERMINATION
	 
	18.1	 	Prior Notice
	 
	 	 	The Landlord or the Tenant may determine this agreement by written notice to the other to
that effect in the event that:-

	 	   18.1.1	 	there shall be any material breach of their obligations to the other under this
agreement and such breach (if capable of remedy) shall continue for and not be
remedied to the reasonable satisfaction of the party not in breach within twenty
working days after service of a notice specifying the breach; or
	 
	 	   18.1.2	 	a Default Event occurs and within fourteen working days thereof the relevant party
shall not have set aside or rectified the Default Event

and in such event the Landlord shall be entitled to re-enter upon and take possession of
the Premises and this agreement shall cease.

	18.2	 	Saving Clause
	 
	 	 	The determination of this agreement shall be without prejudice to any other rights or
remedies of the parties for the breach non-observance or non-performance of any of the
other’s obligations under this agreement.
	 
	18.3	 	Cancellation of Land Registry Notice
	 
	 	 	In the event of such determination the Tenant shall forthwith cancel or procure the
cancellation of any notice or other entry registered at the Land Registry relating to the
interest of the Tenant in this agreement or the Premises.

19

 

	19.	 	REPRESENTATIONS
	 
	 	 	The Tenant and the Guarantor severally acknowledge that they have not relied on any
representation by or on behalf of the Landlord in entering into this agreement apart from
the Landlord’s solicitors’ written replies to the Tenant’s written enquiries before
contract.
	 
	20.	 	ALIENATION
	 
	20.1	 	The Tenant shall not assign or otherwise deal with the benefit of this agreement in whole or
in part nor prior to the grant of the Lease make any disposition of the Premises save by way
of charge permitted by clause 20.2.
	 
	20.2	 	The Tenant may with the prior consent of the Landlord (such approval not to be unreasonably
withheld or delayed) charge this agreement to secure building finance in respect of the
Tenant’s Works from any institution pension fund bank or similar body.
	 
	20.3	 	The Landlord shall not assign or otherwise deal with the benefit of this agreement in whole
or in part nor prior to the grant of the Lease make any disposition of the Premises save as
permitted by clause 20.4.
	 
	20.4	 	In the event of the demutalisation of the Standard Life Assurance Company the Landlord may
without the consent of the Tenant assign this agreement to the entity which assumes the
assets, liabilities and obligations of the Standard Life Assurance Company.
	 
	21.	 	INSURANCE
	 
	21.1	 	Insurance of Landlord’s Works by Landlord
	 
	 	 	Until Practical Completion the Landlord shall insure or cause to be insured with insurers
of good repute the existing structure of the Premises, the Landlord’s Works, the External
Works, the Outstanding Works and the Snagging Works and all unfixed goods and materials
against all risks usually covered by a contractors comprehensive all risks insurance policy
including but not limited to the risks of fire storm earthquake tempest flood lightning
explosion aircraft and aerial devices and articles dropped therefrom heave subsidence riot
or civil commotion malicious damage impact bursting and overflowing of water tanks
apparatus or pipes in an amount equal to the full cost of reinstating the Premises, the
Landlord’s Works, the External Works, the Outstanding Works and the Snagging Works in the
event of their damage or destruction together with the cost of debris removal demolition
site clearance and architects’ surveyors’ and other professional fees including Value Added
Tax on all such costs goods and materials fees and expenses subject to all exclusions and
limitations reasonably imposed by the insurers or underwriters.
	 
	21.2	 	Insurance of Tenant’s Works by the Tenant
	 
	 	 	From commencement of the Tenant’s Works until practical completion of the Tenant’s Works
the Tenant shall insure or cause to be insured with insurers of good repute the Tenant’s
Works and all unfixed goods and materials against risks required to be covered by the all
risks insurance required by and defined in the Standard Form of Building Contract Private
with Quantities 1998 Edition (for the purposes of clause 21 “JCT98”) in an amount equal to
the full cost of reinstating the Tenant’s Works in the event of their damage or destruction
together with the cost of debris removal demolition site clearance and architects’
surveyors’ and other professional fees including Value Added tax on all such costs goods
and materials fees and expenses subject to all exclusions and limitations
reasonably imposed by the insurers or underwriters.

20

 

	21.3	 	Insurance from Practical Completion
	 
	 	 	With effect from the Date of Practical Completion the Landlord’s insurance obligations
pursuant to Clause 21.1 shall cease and thereafter the Landlord shall comply with its
insurance covenants contained in the Lease and shall notify its insurers that works are
still being carried out by or on behalf of the Landlord and the value of such works,
provided that the Landlord shall procure that such insurance shall cover the Tenant’s
obligation to insure the existing structure of the Premises pursuant to and in accordance
with clause 22C.1 of JCT98 including, without limitation, including the Tenant as joint
insured.
	 
	21.4	 	Waiver of subrogation rights and basic terms of insurance
	 
	 	 	The Landlord in relation to the policy(ies) of insurance to be effected by it pursuant to
respectively Clause 21.1 and 21.3 shall procure that the insurers shall waive all rights of
subrogation against the Tenant.
	 
	21.5	 	Production and inspection of policies
	 
	 	 	The Landlord and the Tenant shall on demand each produce to the other for inspection the
policy or policies of insurance maintained in accordance with the requirements of Clause 21
and the receipt for the last premium due or other sufficient evidence of payment thereof.
	 
	21.6	 	Destruction of Landlord’s Works
	 
	 	 	The Landlord shall notify the Tenant promptly upon the occurrence of any material damage to
or material destruction of the Landlord’s Works (whether or not caused by any of the risks
insured against) occurring before Practical Completion and in any such case (subject to
receipt of all necessary Requisite Permissions and compliance with this agreement) shall
rebuild repair and otherwise reinstate the Landlord’s Works as soon as practicable.
	 
	22.	 	CONFIDENTIALITY
	 
	 	 	None of the parties (including their agents employees or representatives) shall disclose or
permit or suffer to be disclosed any of the contents or the existence of this agreement
except and to the extent that such disclosure may be required by law by its reporting
requirements or by the requirements of the UK Listing Authority or the London Stock
Exchange PLC.
	 
	23.	 	CAPITAL ALLOWANCES
	 
	 	 	The Landlord shall use all reasonable endeavours at the request and reasonable cost of the
Tenant to assist the Tenant in obtaining the benefit of any capital allowances which may be
available to the Tenant in respect of the Tenant’s Works and any qualifying plant and
machinery purchased by the Tenant with the sums described in clause 10 of this agreement
and the Landlord at the request and reasonable cost of the Tenant will execute any election
which may be required to enable the Tenant to claim and receive the benefit of such capital
allowances.

21

 

	24.	 	NOTICES
	 
	24.1	 	Any notice served under this agreement shall be validly served if:

	 	24.1.1	 	it is sent by facsimile transmission or by recorded delivery post or personally
delivered to the registered office of the party being served or to such alternative
address as it shall nominate in writing for that purpose; or
	 
	 	24.1.2	 	it is served in accordance with Section 196 of the Law of Property Act 1925 (as
amended by the Recorded Delivery Act 1962).

	24.2	 	If the Tenant or the Guarantor comprises more than one person it shall be sufficient service
on the Tenant or the Guarantor if notice is served on one of them.
	 
	24.3	 	The Landlord need not serve on the Guarantor a notice which is duly served on the Tenant and
the Guarantor shall not be relieved of any obligation or liability under this agreement
because it has not received any such notice.
	 
	25.	 	VALUE ADDED TAX (“VAT”)
	 
	25.1	 	All sums payable under this agreement by the Tenant to the Landlord or by the Landlord to the
Tenant shall be deemed to be exclusive of VAT.
	 
	25.2	 	Subject to the Landlord having made an election for the purposes of paragraphs 2 and 3 of
Schedule 10 to the Value Added Tax Act 1994 in relation to the Premises and subject to the
Landlord having supplied to the Tenant a copy of such election and subject further to HM
Revenue & Customs not having refused to accept such election where pursuant to the terms of
this agreement the Landlord makes a supply to the Tenant or vice versa and VAT is payable in
respect of such supply the party receiving such supply shall pay to the party making the
supply on delivery of a valid VAT invoice in respect thereof a sum equal to the amount of VAT
so payable and shall make such payment:

	 	25.2.1	 	on the date of such supply; or
	 
	 	25.2.2	 	if later, on the date on which a valid VAT invoice in respect of the relevant amount
addressed to the receiving party is issued to that party if such VAT invoice is
legally required to enable the said party to obtain a credit from H.M. Revenue &
Customs for such amount.

	25.3	 	Where the party receiving the supply fails to pay any such amount in full on the relevant
date specified in Clause 25.2 that receiving party shall also pay to the party making the
supply interest on such amount at the base rate from time to time of Barclays Bank plc from
the date on which the supplier was liable to account to HM Revenue & Customs for the VAT in
respect of such supply until the date payment is made by the recipient of the supply to the
person making the supply PROVIDED THAT where the due date for payment by either party of any
amount in respect of VAT is determined by reference to the issue of a VAT invoice as mentioned
in Clause 25.2 above, that party shall not be liable to make any payment under this Clause
25.3 provided that any amount in respect of VAT payable by it is paid by it within twenty
working days after the issue of such invoice.

22

 

	26.	 	NON-MERGER
	 
	 	 	This Agreement shall continue in full force and effect notwithstanding the grant of the
Lease to the extent that any provisions are still to be observed and performed.
	 
	27.	 	GUARANTEE
	 
	 	 	In consideration of the Landlord having entered into this agreement at the Guarantor’s
request the Guarantor as primary obligor guarantees and agrees with the Landlord that:
	 
	27.1	 	the Tenant will perform its obligations in this agreement; and
	 
	27.2	 	it will make good to and indemnify the Landlord against all losses damages costs and expenses
caused by any default by the Tenant; and
	 
	27.3	 	no time or indulgence granted to the Tenant by the Landlord nor any variation of the terms of
this agreement nor any other thing by virtue of which but for this provision the Guarantor
would have been released will in any way release the obligations of the Guarantor hereunder to
the Landlord under this Clause; and
	 
	27.4	 	it will execute the counterpart Lease as Guarantor for the Tenant when called upon to do so
by the Landlord; and
	 
	27.5	 	if at any time before the completion of the Lease any Default Event occurs in relation to the
Tenant or where the Tenant comprises one or more persons occurs in relation to any one of
those persons then the Landlord may at any time before completion of the Lease invoke the
provisions of Clause 27.6 by written notice served on the Tenant unless a party has previously
served notice pursuant to Clause 18.1 in respect of that or any other event or either party
has served notice pursuant to clause 15.4; and
	 
	27.6	 	immediately on service of a notice pursuant to Clause 27.5 but without prejudice to any
pre-existing right of action of any party in respect of any breach by any other party of its
obligations under this agreement the rights of the Tenant under this agreement shall cease and
determine and this agreement shall have effect from the date of the notice as if the
obligation to accept the Lease and the other obligations of the Tenant contained in this
agreement were the primary obligations of the Guarantor and the Guarantor will when requisite
execute and deliver a counterpart of the Lease in lieu of the Tenant on the terms of this
agreement and will take up the Lease on its grant.
	 
	28.	 	JURISDICTION
	 
	 	 	This agreement shall be governed by and construed in accordance with the law of England and
the Guarantor submits to the exclusive jurisdiction of the English Courts and irrevocably
agrees that any process may be served on it by leaving a copy of the relevant documents at
the Premises and each party undertakes to notify the other of any change from time to time
of such address for service and to maintain an appropriate address at all times.
	 
	29.	 	EXCLUSION OF THIRD PARTY RIGHTS
	 
	 	 	Each party confirms that no term of this agreement is enforceable under the Contracts
(Rights of Third Parties) Act 1999 by a person who is not a party to this agreement.

23

 

	30.	 	PROTECTING AGREEMENT AGAINST LANDLORD’S TITLE
	 
	 	 	The Tenant shall not be entitled to note this Agreement any rights granted in the Lease
against the Landlord’s registered title other than by a unilateral notice.

IN WITNESS whereof the parties have respectively executed this agreement as a deed and delivered it
on the date hereof.

On one part

SIGNED and DELIVERED as a deed by

as the Attorney of THE STANDARD

LIFE ASSURANCE COMPANY

(in exercise of a Power of Attorney

under its Seal dated

in the presence of:

On other part

	 	 	 	 	 	 	 
	EXECUTED as a deed by

	 	 	)	 	 	 
	ELECTRONIC ARTS LIMITED

	 	 	)	 	 	 
	acting by two directors or a

	 	 	)	 	 	 
	director and its secretary

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	EXECUTED as a deed by

	 	 	)	 	 	 
	ELECTRONIC ARTS INC

	 	 	)	 	 	 
	acting by two directors or a

	 	 	)	 	 	 
	director and its secretary

	 	 	)	 	 	 

24

 

Herbert Smith

DATED     2006

THE STANDARD LIFE ASSURANCE COMPANY

and

ELECTRONIC ARTS LIMITED

and

ELECTRONIC ARTS INC.

 

UNDERLEASE

of

Onslow House, Guildford, Surrey

affecting title numbers SY702491 and SY706210

 

Herbert Smith LLP

1

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Clause	 	Headings	 	Page
	1.

	 	DEFINITIONS
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	INTERPRETATION
	 	 	3	 
	 
	 	 	 	 	 	 
	3.

	 	DEMISE AND RENTS
	 	 	4	 
	 
	 	 	 	 	 	 
	4.

	 	TENANT’S OBLIGATIONS
	 	 	4	 
	 
	 	 	 	 	 	 
	4.1

	 	Rent
	 	 	5	 
	4.2

	 	VAT
	 	 	5	 
	4.3

	 	Outgoings
	 	 	5	 
	4.4

	 	Compliance with Enactments
	 	 	5	 
	4.5

	 	Official communications
	 	 	5	 
	4.6

	 	Repair
	 	 	5	 
	4.7

	 	Decoration and general condition
	 	 	6	 
	4.8

	 	Refuse
	 	 	6	 
	4.9

	 	Entry by the Landlord
	 	 	6	 
	4.10

	 	Remedying breaches
	 	 	6	 
	4.11

	 	Preserving rights
	 	 	7	 
	4.12

	 	Alterations and reinstatement
	 	 	7	 
	4.13

	 	Use
	 	 	8	 
	4.14

	 	Signs, aerials etc
	 	 	8	 
	4.15

	 	Dealings with the lease
	 	 	8	 
	4.16

	 	Notifying Landlord of dealings with the lease
	 	 	12	 
	4.17

	 	Payment of cost of notices, consents etc
	 	 	12	 
	4.18

	 	Obstruction/overloading
	 	 	12	 
	4.19

	 	Complying with Planning Law
	 	 	12	 
	4.20

	 	Indemnifying the Landlord
	 	 	13	 
	4.21

	 	Notifying defects in the Premises
	 	 	13	 
	4.22

	 	Insurance and fire fighting equipment
	 	 	13	 
	4.23

	 	Dangerous and contaminative materials
	 	 	14	 
	4.24

	 	Returning the Premises to the Landlord
	 	 	14	 
	4.25

	 	Covenants
	 	 	14	 
	4.26

	 	Land Registry
	 	 	14	 
	4.27

	 	Head Lease
	 	 	14	 
	 
	 	 	 	 	 	 
	5.

	 	LANDLORD’S OBLIGATIONS
	 	 	14	 
	 
	 	 	 	 	 	 
	5.1

	 	Quiet enjoyment
	 	 	14	 
	5.2

	 	Insurance
	 	 	15	 
	5.3

	 	Head Lease
	 	 	15	 
	5.4

	 	Defects
	 	 	16	 
	 
	 	 	 	 	 	 
	6.

	 	OTHER AGREEMENTS AND DECLARATIONS
	 	 	17	 
	 
	 	 	 	 	 	 
	6.1

	 	Forfeiture and re-entry
	 	 	17	 
	6.2

	 	No implied rights
	 	 	18	 
	6.3

	 	Service of notices
	 	 	18	 
	6.4

	 	Relief from liability to pay rent
	 	 	18	 

2

 

	 	 	 	 	 	 	 
	Clause	 	Headings	 	Page
	6.5

	 	Ending of the lease following major damage
	 	 	19	 
	6.6

	 	Arbitration fees
	 	 	20	 
	6.7

	 	No warranty as to use
	 	 	20	 
	6.8

	 	Overriding lease
	 	 	20	 
	6.9

	 	Application of Landlord and Tenant (Covenants) Act 1995
	 	 	20	 
	6.10

	 	Exclusion of Third Party Rights
	 	 	20	 
	6.11

	 	Jurisdiction
	 	 	20	 
	 
	 	 	 	 	 	 
	7.

	 	GUARANTOR’S OBLIGATIONS
	 	 	20	 
	 
	 	 	 	 	 	 
	7.1

	 	Guarantee
	 	 	20	 
	7.2

	 	Preservation of the Guarantee
	 	 	21	 
	7.3

	 	No right to participate in security
	 	 	21	 
	7.4

	 	Disclaimer etc.
	 	 	21	 
	7.5

	 	Transfer of the reversion
	 	 	22	 
	 
	 	 	 	 	 	 
	SCHEDULE 1

	 	PART I (THE PREMISES)
	 	 	23	 
	 

	 	PART II (Exceptions and reservations)
	 	 	23	 
	SCHEDULE 2

	 	(COVENANTS ETC.)
	 	 	24	 

3

 

PARTICULARS

	 	 	 
	DATE	 	2006
	
PART 1
	 
	 	 
	“Landlord”

	 	THE STANDARD LIFE ASSURANCE COMPANY whose head office
is at Standard Life House 30 Lothian Road Edinburgh
EH1 2DH (Co. Regn. No. SZ000004)
	 
	 	 
	“Tenant”

	 	ELECTRONIC ARTS LIMITED whose registered office is at
2000 Hillswood Drive Chertsey Surrey KT16 OEU (Co.
Regn. No. 02057591
	 
	 	 
	“Guarantor”

	 	Any person who, for the time being, guarantees
performance of the Tenant’s obligations that person
currently being ELECTRONIC ARTS INC. whose registered
office is at 209 Redwood Shares Parkway, Redwood City,
California 94065 (a corporation incorporated in the
State of Delaware)
	 
	 	 
	“Premises”

	 	Onslow House Guildford being the premises described in

schedule 1
	 
	 	 
	“Term Commencement Date”

	 	[As per the Agreement for Lease]
	 
	 	 
	“Term”

	 	10 years from and including the Term Commencement Date
	 
	 	 
	“Yearly Rent”

	 	£2,193,252 per annum (and increased as per clause 3.1)
	 
	 	 
	“Rent Commencement Date”

	 	[As per the Agreement for Lease]
	 
	 	 
	“Review Date”

	 	5 years from and including the Term Commencement Date
	 
	 	 
	“Review Rent”

	 	£2,512,211 per annum
	 
	 	 
	“Permitted Use”

	 	Use as good quality offices for any purpose within
Class B1(a) (but not for any other purpose within that
Use Class) of the schedule to the Town and Country
Planning (Use (Class) Order 1987.
	 
	 	 
	
PART 2
	 
	 	 
	Term Expiry Date

	 	10 years from and including the Term Commencement Date
	 
	 	 
	Landlord and Tenant Act
1954

	 	Not excluded
	 
	 	 
	Interest on late payments

	 	3% above base rate

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THIS UNDERLEASE made on the date and between the parties specified in the Particulars

WITNESSES as follows:

	1.	 	DEFINITIONS
	 
	 	 	The following expressions and those defined in Part 1 of the Particulars have the
respective specified meanings:
	 
	 	 	“1954 Act” means the Landlord and Tenant Act 1954 as amended;
	 
	 	 	“Development” has the meaning given by Planning Law;
	 
	 	 	“Enactment” means every Act of Parliament, directive and regulation and all subordinate
legislation which, at any relevant time during the Term, has legal effect in England and
Wales;
	 
	 	 	“Group Company” means any company which is either the holding company of the Tenant or a
wholly-owned subsidiary of the Tenant or of the Tenant’s holding company, as those
expressions are defined in section 736 Companies Act 1985 and, for the purposes of clause
4.15.5(C)(2)(b)(ii), any company which has the same relationship with the relevant
underlessee;
	 
	 	 	“Head Lease” means the lease under which the Landlord holds the Premises dated 16 March
2001 made between The Council of the Borough of Guildford (1) and the Landlord (2) and
“Superior Landlord” means the person for the time being entitled to the reversion
immediately expectant on the term granted by the Head Lease and every other person having
an interest in reversion to that term;
	 
	 	 	“Insurance Cost” means all the money which the Landlord properly spends on:

	 	(A)	 	effecting and maintaining insurance against the Insured Risks in relation to
the Premises for whatever amount the Landlord reasonably considers represents the
Premises’ full replacement cost with such allowance as the Landlord reasonably
considers appropriate for related liabilities and expenses (including, without
limitation, liability to pay proper fees or charges on the submission of an
application for planning permission and proper costs which might be incurred in
complying with any Enactment, in carrying out any replacement work and sums for proper
professional fees and incidental expenses which might be incurred on any debris
removal and replacement, and all VAT);
	 
	 	(B)	 	effecting and maintaining any insurance relating to the Landlord’s property
owner’s and employer’s liability in relation to the Premises and anything done in
them; and
	 
	 	(C)	 	reasonable and proper professional fees relating to insurance, including fees
for insurance valuations carried out at reasonable intervals not more frequently than
once in every three years from the last valuation;

	 	 	“Insurance Rent” means, for any relevant period, all of:

	 	(A)	 	the Insurance Cost for the relevant period;

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	 	(B)	 	the amount which the Landlord properly spends on effecting and maintaining
insurance against not less than five years’ loss of the rent first reserved by this
lease and with any addition to the amount insured as the Landlord may reasonably
decide in respect of VAT;
	 
	 	(C)	 	(without prejudice to all other provisions of this lease relating to the use
of the Premises and the vitiation of any policy of insurance) any amount which the
Landlord properly spends on all additional premiums and loadings on any policy of
insurance required as a result of anything done or omitted by the Tenant; and
	 
	 	(D)	 	an amount equal to the total of all excess sums which the insurers are not
liable to pay out on any insurance claim in respect of the Premises and which the
Landlord has paid in replacing the damaged or destroyed parts of the Premises;

	 	 	“Insured Risks” means any loss caused by fire, lightning, explosion, riot, civil commotion,
strikes, labour and political disturbances and malicious damage, aircraft and aerial
devices, (other than hostile aircraft and devices) and articles accidentally dropped from
them, storm, tempest, flood, bursting or overflowing of water tanks and pipes, impact,
earthquake and accidental damage to underground water, oil and gas pipes, or electricity
wires and cables, subsidence, ground slip and heave, breakdown and sudden and unforeseen
damage to engineering plant and equipment, damage caused to the Premises by theft and
terrorism if cover is available at reasonable cost and such other risks or perils against
which the Landlord may insure, subject to such exclusions and limitations as are imposed by
the insurers;
	 
	 	 	“Order” means the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003;
	 
	 	 	“Particulars” means the particulars set out at the beginning of this lease;
	 
	 	 	“Permitted Part” means any part of the Premises comprising the whole of one or more
complete floor levels or the whole of one or more wings which are shown hatched red, blue
and yellow on the Plans, excluding the ground floor entrance lobby area shown cross hatched
black on the Plans, all load bearing parts and all circulation areas and plant equipment
which are common to that part of the Premises and the remainder of them;
	 
	 	 	“Planning Law” means every Enactment and, to the extent they relate to the Premises, every
planning permission, statutory consent and agreement, made pursuant to any Enactment
relating to the use, development and occupation of land and buildings;
	 
	 	 	“Plans” means the plans annexed to this lease;
	 
	 	 	“Public Authority” means any government department, public, local, regulatory, fire and any
other authority, any institution having functions which extend to the Premises or their use
or occupation, any court of law, any company or authority responsible for the supply of
utilities, and any of their duly authorised officers;
	 
	 	 	“Section 106 Agreement” means an agreement dated 8th September 2000 and made between (1)
The Council of the Borough of Guildford (2) Tilebox Limited (3) The Council of the Borough
of Guildford and (4) Surrey County Council;

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	 	 	“Stipulated Rate” means a yearly rate of interest, calculated on a daily basis, three per
cent above the base rate of the Bank of Scotland or of such other U.K. bank as the Landlord
may reasonably nominate at any time; and
	 
	 	 	“VAT” means Value Added Tax as referred to in the Value Added Tax Act 1994 (or any tax of a
similar nature which may be substituted for, or levied in addition to, it).
	 
	2.	 	INTERPRETATION
	 
	2.1	 	Where a party is more than one person, their obligations are joint and several.
	 
	2.2	 	A Tenant’s obligation not to do or omit anything also operates as an obligation not to permit
or suffer it to be done or omitted by any person deriving title from the Tenant or by their
respective servants or agents and to prevent or, as the case may be, to require it being done.
	 
	2.3	 	References to:

	 	(A)	 	any clause or schedule are references to the relevant clause or schedule of
this lease and any reference to a sub-clause or paragraph is a reference to that
sub-clause or paragraph of the clause or schedule in which the reference appears;
	 
	 	(B)	 	any right of or obligation to permit the Landlord to enter the Premises shall
also be construed, subject as provided in clause 4.9, as entitling the Landlord to
remain on the Premises with or without equipment and permitting such right to be
exercised by all persons authorised by the Landlord;
	 
	 	(C)	 	any consent of the Landlord, or words to similar effect including references
to approvals, mean a written consent signed by or on behalf of the Landlord and given
before the act requiring consent and any such reference which states that the consent
will not be unreasonably withheld also means that it will not be unreasonably delayed;
	 
	 	(D)	 	the Premises (except in the definition of Premises and of Permitted Part and
in clauses 4.15 and 6.5) extend, where the context permits, to any part of the
Premises;
	 
	 	(E)	 	a specific Enactment include every modification, consolidation and
re-enactment and extension of it for the time being in force, except in relation to
the Town and Country Planning (Use Classes) Order 1987, which shall be interpreted
exclusively by reference to the original provisions of Statutory Instrument 1987 No
764 whether or not it may have been revoked or modified;
	 
	 	(F)	 	the expiry of this lease mean the date when the tenancy constituted by it
terminates either at the end or sooner determination of the Term or pursuant to any
applicable Enactment and references to the last year of this lease mean the year
ending on the expiry of this lease;
	 
	 	(G)	 	rents or other sums being due from the Tenant to the Landlord mean that they
are exclusive of any VAT;
	 
	 	(H)	 	the Tenant’s obligations mean the Tenant’s obligations under this lease and
under every agreement which is supplemental or collateral to it; and

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	 	(I)	 	The Royal Institution of Chartered Surveyors extend to its President or
acting President for the time being.

	2.4	 	Clause and paragraph headings shall not affect the construction of this lease.

	2.5	(A) 	 	When the Landlord’s consent is required under this lease, the
relevant provision shall be construed as also requiring (and any
consent by the Landlord shall be deemed to be given subject to the
need for) any necessary consent of the Superior Landlord, for which
the Landlord shall apply at the Tenant’s reasonable and proper cost,
and nothing in this lease, or in any consent by the Landlord, shall
imply that the Superior Landlord’s consent will not be unreasonably
withheld or delayed;
	 
	 	(B)	 	references to any right of (or obligation to permit) the Landlord
to enter the Premises extend to the Superior Landlord and to all
persons authorised by it and shall be construed in the manner required
by clause 2.3(B); and
	 
	 	(C)	 	this lease takes effect subject to the rights which are reserved
out of the Head Lease.

	3.	 	DEMISE AND RENTS
	 
	 	 	The Landlord at the request of the Guarantor DEMISES the Premises to the Tenant TOGETHER
WITH for the benefit of the Tenant, and others authorised by it at any time during the Term
or otherwise entitled to exercise them, the rights specified in Part II of Schedule 1
EXCEPT and RESERVED to the Landlord, and other persons authorised by it at any time during
the Term or otherwise entitled to exercise them, the rights specified in Part III of
schedule 1 TO HOLD the Premises to the Tenant for the Term SUBJECT to all existing rights,
obligations and other matters affecting them,
	 
	 	 	THE TENANT PAYING TO THE LANDLORD:
	 
	3.1	 	Yearly and proportionately for any part of a year, until the Rent Commencement Date a
peppercorn (if demanded) and thereafter until the Review Date the Yearly Rent and thereafter
the Review Rent, by equal quarterly payments in advance on the usual quarter days in every
year, the first payment of the Yearly Rent or a proportionate part of it (being a proportion
from and including the Rent Commencement Date to and excluding the first quarter day
thereafter) to be made on the Rent Commencement Date;
	 
	3.2	 	The Insurance Rent, payable on demand;
	 
	3.3	 	Interest payable on demand, at the Stipulated Rate on any sum owed to the Landlord pursuant
to the Tenant’s obligations, whether or not as rent, which is not received by the Landlord on
the due date (or, in the case of money due only on demand, within fourteen days after the date
of demand), calculated for the period commencing on the due payment date and ending on the
date the sum (and the interest) is received by the Landlord; and
	 
	3.4	 	All VAT for which the Landlord is or may become liable on the supply by the Landlord to the
Tenant in connection with this lease or the interest created by it and of any other supplies,
whether of goods or services, such VAT to be paid at the same time as the other rents or sums
to which it relates.
	 
	4.	 	TENANT’S OBLIGATIONS
	 
	 	 	The Tenant agrees with the Landlord:

4

 

	4.1	 	Rent
	 
	 	 	To pay the rents reserved by this lease on the days and in the manner set out in clause 3
without deduction or set off and (unless the Landlord agrees otherwise) to pay the Yearly
Rent (together with any VAT on it) by banker’s standing order to such bank as the Landlord
may nominate at any time.
	 
	4.2	 	VAT
	 
	 	 	To pay the Landlord an amount equal to any VAT incurred by it on any amount which the
Tenant is required to reimburse or indemnify the Landlord against pursuant to the Tenant’s
obligations, except to the extent the Landlord obtains credit for such VAT pursuant to
sections 24, 25 and 26 Value Added Tax Act 1994 or any regulations made under them.
	 
	4.3	 	Outgoings
	 
	4.3.1	 	To pay all rates, taxes and other outgoings assessed on or reasonably attributable to the
Premises or on their owner or occupier during the Term excluding, without prejudice to the
rent reserved in clause 3.4 and to clause 4.2, any tax payable by the Landlord as a direct
result of any actual or implied dealing with the reversion of this lease or of the Landlord’s
receipt of income.
	 
	4.3.2	 	To pay all charges for water, gas and electricity (including meter rents) consumed in the
Premises during the Term.
	 
	4.4	 	Compliance with Enactments
	 
	 	 	(Without prejudice to the provisions of clause 5.4) to comply with all Enactments and with
the requirements of any Public Authority affecting the Premises, their use, occupation,
employment of people in them and any work being carried out to them (whether the
requirements are imposed upon the owner, lessee or occupier) and not to do or omit anything
by which the Landlord may incur any liability under any Enactment or requirement of a
Public Authority.
	 
	4.5	 	Official communications
	 
	 	 	Without delay, to supply the Landlord with a true copy of any official communication
received from, or proposal made by, any Public Authority and to comply fully with its
provisions at the Tenant’s cost, except that (if requested by the Landlord and at its cost)
the Tenant shall make such representations as the Landlord may reasonably require against
any communication or proposal, so long as the representations do not conflict with the
Tenant’s rights under this lease.
	 
	4.6	 	Repair
	 
	4.6.1	 	(Without prejudice to the provisions of clause 5.4), well and substantially to repair the
Premises and maintain and keep them in good and substantial repair and condition (damage by
any of the Insured Risks excepted, to the extent that this lease obliges the Landlord to
insure against them and to the extent that the insurance money is not rendered irrecoverable
or insufficient because of a breach of the Tenant’s obligations) provided that the Tenant’s
obligations under this clause shall not extend to any liability of the Superior Landlord to
repair under clauses 4.3.1 and 4.4 of the Head Lease.

5

 

	4.6.2	 	(Without prejudice to the generality of the foregoing) to keep in a good state of repair and
condition and cleanliness the carpeting and ceiling tiles in the Premises and to replace the
same in the last three months of the Term (howsoever determined) in such colours and patterns
as the Landlord may reasonably require.
	 
	4.7	 	Decoration and general condition
	 
	4.7.1	 	To keep the Premises clean and in the fifth and last years of this lease to redecorate and
treat the Premises with appropriate materials in a good and workmanlike manner (and during the
last year of this lease in a colour scheme and with materials reasonably approved by the
Landlord) but the Tenant shall not be obliged to redecorate or treat the Premises if the need
to do so is caused by any of the Insured Risks, to the extent the insurance money is not
rendered irrecoverable or insufficient because of a breach of the Tenant’s obligations.
	 
	4.7.2	 	To enter into and maintain contracts for the regular inspection maintenance and servicing of
all fixed plant and equipment comprised in the Premises by reputable contractors and to obtain
satisfactory test certificates as may be reasonably required by the insurers and, whenever
reasonably required, to produce copies of such contracts and certificates to the Landlord.
	 
	4.8	 	Refuse
	 
	 	 	To ensure the removal of refuse from the Premises at least once a week.
	 
	4.9	 	Entry by the Landlord
	 
	 	 	To permit the Landlord, at reasonable times on reasonable prior written notice (except in
an emergency), to enter the Premises in order to:

	 	(A)	 	investigate whether the Tenant has complied with its obligations created by
this lease;
	 
	 	(B)	 	take any measurement or valuation of the Premises;
	 
	 	(C)	 	fix and retain on the Premises, without interference but in a position which
does not materially affect their amenity, a notice for their disposal and to allow the
Landlord to show the Premises to prospective purchasers and their agents and, during
the last ten months of the Term, to prospective tenants and their agents; and
	 
	 	(D)	 	to exercise the rights described in Part II of schedule 1,

	 	 	provided the Landlord causes as little interference as reasonably possible to the Tenant’s
use of the Premises for its business (except where it is necessary to do so in order to
comply with any obligation to the Tenant) and, if the Landlord exercises any of the rights
by carrying out work on the Premises, it shall make good any damage caused to them and to
any of the Tenant’s chattels straight away, unless the right has been exercised because of
some material breach of the Tenant’s obligations.
	 
	4.10	 	Remedying breaches
	 
	4.10.1	 	To comply with any notice requiring remedy of any breach of the Tenant’s obligations.

6

 

	4.10.2	 	If the Tenant does not comply with any such notice within a reasonable time, to permit the
Landlord to enter the Premises to remedy the breach, as the Tenant’s agent .
	 
	4.10.3	 	To pay the Landlord, on demand, all the reasonable costs and expenses properly incurred by
the Landlord in exercising its rights under this clause.
	 
	4.11	 	Preserving rights
	 
	4.11.1	 	To preserve all rights of light and other easements belonging to the Premises and not to
give any acknowledgement that they are enjoyed by consent.
	 
	4.11.2	 	Not to do or omit anything which might subject the Premises to any new easement and to
notify the Landlord, without delay, of any encroachment which might have that effect.
	 
	4.12	 	Alterations and reinstatement
	 
	4.12.1	 	Not to carry out:

	 	(A)	 	any Development and not to commit any waste;
	 
	 	(B)	 	any work which adversely affects any load bearing structure of the Premises;
	 
	 	(C)	 	the erection of any structure on the Premises (subject to clause 4.14).

	4.12.2	 	Not to carry out any structural alterations to the Premises or any alterations which affect
the external appearance of the Premises or any alterations to capital plant within the
Premises without the Landlord’s consent which will not be unreasonably withheld or delayed and
which shall be deemed granted if no response to the Tenant’s application is received by the
Tenant within 10 working days of receipt of the application by the Landlord and provided that
the Tenant’s application contains reasonable details and supporting documentation relating to
the proposed alterations.

	4.12.3	 	Subject to the other provisions of this clause, any other alteration or addition to the
Premises will not require the Landlord’s consent.

	4.12.4	 	On making alterations or additions to the Premises for which the Landlord has insurance
obligations, to provide the Landlord without delay with a written, independent, current
insurance (VAT exclusive) valuation of the work, for replacement purposes.

	4.12.5	 	The Tenant shall provide the Landlord within four weeks of completion of any works carried
out under this clause 4.12 with detailed drawings and specifications relating to such works.
	 
	4.12.6	 	At the expiry of this lease to:

	 	(A)	 	remove all alterations and additions made at any time to the Premises, and
anything installed under clause 4.14.2, by the Tenant or by any person deriving title
from it;
	 
	 	(B)	 	remove all work done in connection with the original fitting out of the
Premises by the Tenant pursuant to the agreement for the grant of
this lease dated [   
] and to restore and make good the Premises in a proper and workmanlike manner to
the condition and design which existed before the relevant work was carried out, to
the Landlord’s reasonable satisfaction.

7

 

	 	 	provided that if either include the addition of a mezzanine area between the ground and
first floors, the Tenant shall not be obliged to remove it and instead shall reinstate the
ground and mezzanine areas (which for the avoidance of doubt may not necessarily be a
complete floor) to an office standard with suspended ceiling, raised floor, carpet tiles
and painted plaster to wall surfaces. All finishes shall be to a standard in keeping with
the remainder of the building. The Tenant shall install ceiling mounted air distribution
from existing Landlord’s plant and ducts to the area. For the avoidance of doubt, if the
mezzanine area is less than 70% of the area of the ground floor and is left open to the
ground floor, the air distribution will be provided to only one ceiling of one floor level.
	 
	4.13	 	Use
	 
	 	 	Not to use the Premises:

	 	(A)	 	for any purpose which causes a nuisance, disturbance or obstruction to any
person or property;
	 
	 	(B)	 	for any public auction or public meeting or for any noxious, noisy or immoral
use or one which would cause diplomatic or State immunity from the Tenant’s
obligations or for the business of a government agency which the public visit without
appointment or (except as incidental to the Permitted Use) for the transmission of
telecommunications signals; or
	 
	 	(C)	 	(without prejudice to the preceding paragraphs of this clause) except for the
Permitted Use.

	4.14	 	Signs, aerials etc
	 
	4.14.1	 	Not to erect anything on the outside of the Premises except the Tenant’s usual corporate
signage referred to in clause 4.14.2
	 
	4.14.2	 	(Subject to obtaining all necessary planning consents) to display and maintain on the
exterior of the Premises the Tenant’s usual corporate signage reasonably approved (as to
siting, design and appearance) by the Landlord, showing the name (or trading name) of every
permitted occupier of the Premises.
	 
	4.15	 	Dealings with the lease
	 
	4.15.1	 	In clause 4.15, any reference to a transfer includes an assignment.
	 
	4.15.2	 	Not to transfer, mortgage, charge, hold on trust for another, underlet or otherwise part
with possession of part only of the Premises or agree to do so, except that the Tenant may
underlet the whole of (but not more or less than) any Permitted Part, if it first complies or,
where appropriate, procures compliance with the conditions described in clauses 4.15.5 and
4.15.6.
	 
	4.15.3	 	Not to transfer, hold on trust for another, underlet or otherwise part with possession of
the whole of the Premises or agree to do so, except that the Tenant may transfer or underlet
the whole of the Premises if, before the transfer or underletting is completed, the Tenant
complies or, where appropriate, procures compliance with the conditions described in clause
4.15.4 or clause 4.15.5, as applicable.

8

 

	 	 	(Transfer)
	 
	4.15.4	 	Not to transfer the whole of the Premises without complying with the following conditions
(which are specified for the purposes of section 19(1A) of the Landlord and Tenant Act 1927
and which operate without prejudice to the Landlord’s right to withhold consent on any
reasonable ground):

	 	(A)	 	if the proposed transfer is to a non Group Company:

	 	(1)	 	that the Tenant enters into an authorised guarantee
agreement, as defined in section 16 of the Landlord and Tenant (Covenants) Act
1995, with the Landlord in a form which the Landlord reasonably requires; and
	 
	 	(2)	 	that any Guarantor guarantees to the Landlord that the Tenant
will comply with the authorised guarantee agreement in a form which the
Landlord reasonably requires; and
	 
	 	(3)	 	that if the Landlord reasonably requires, the proposed
transferee procures the following:

	 	(a)	 	covenants with the Landlord by an additional
guarantor or guarantors reasonably approved by the Landlord, in the
terms contained in clause 7; and/or
	 
	 	(b)	 	a deposit with the Landlord of an amount in
cleared funds equal to up to half the Yearly Rent or the Review Rent
(as the case may be) and an amount equal to VAT on that amount, on
terms which the Landlord reasonably requires; or

	 	(B)	 	if the proposed transfer is to a Group Company;

	 	(1)	 	if the Tenant’s obligations, or any of them, are guaranteed
by another Group Company, that such Group Company covenants with the Landlord
in the terms contained in clause 7; or
	 
	 	(2)	 	if the Tenant’s obligations are not guaranteed by another
Group Company and if the transferee is not, in the Landlord’s reasonable
opinion, of equal financial standing to the Tenant, that the proposed
transferee procures covenants by a Group Company other than the Tenant and the
transferee and which is, in the Landlord’s reasonable opinion, of equal
financial standing to the Tenant, in a form which the Landlord reasonably
requires; and
	 
	 	(3)	 	if any of the Tenant’s obligations are secured by a deposit,
the proposed transferee procures a deposit with the Landlord of the same
amount and on the same terms; and

	 	(C)	 	that the Landlord’s consent, which will not be unreasonably withheld, is
obtained to, and within two months before, the transfer (save in respect of a transfer
to a Group Company which shall not require the Landlord’s Consent).

9

 

	 	 	(Underletting)
	 
	4.15.5	 	Not to underlet the whole of the Premises or any Permitted Part (each being referred to in
this paragraph as the premises) except:

	 	(A)	 	to a person who has covenanted with the Landlord:

	 	(1)	 	to observe the Tenant’s obligations to the extent they relate
to the premises (other than the payment of rents);
	 
	 	(2)	 	not to transfer the whole of the premises without the
Landlord’s consent (which will not be unreasonably withheld if the conditions
referred to in clause 4.15.5(C)(2)(b)(ii) are first satisfied); and
	 
	 	(3)	 	not to transfer part of the premises or if the premises
comprise a wing of a floor underlet or otherwise part with possession or share
the occupation of them or any part of them (except that the underlessee may
share occupation with a Group Company of the underlessee on the same terms as
and set out in clause 4.15.8, provided they are contained in the underlease
and require notification upon request to the Landlord of this lease);

	 	(B)	 	by reserving as a yearly rent, without payment of a fine or premium, an
amount equal to:

	 	(1)	 	(in the case of an underletting of the Premises) their then
open market rack rental value;
	 
	 	(2)	 	(in the case of an underletting of a Permitted Part) its then
open market rack rental value,

	 	 	 	such rent to be approved by the Landlord (who will not unreasonably withhold it)
and to be payable by equal quarterly instalments in advance on the usual quarter
days and by reserving, as additional rents, amounts equal to, and payable at the
same times as, the other rents reserved by this lease or, in the case of an
underletting of a Permitted Part, a pro rata proportion of them;
	 
	 	(C)	 	by a form of underlease:

	 	(1)	 	which does not express any sum to be payable by reference to
a proportion of the rent or of any other sum payable under this lease, but
which requires it to be payable and assessed in accordance with the same
principles as are required by this lease;
	 
	 	(2)	 	which requires:
	 
	 	(a)	 	the principal rent reserved by it to be reviewed upwards only
at intervals of not more than five years, in accordance with open market rent
review principles; and
	 
	 	(b)	 	the underlessee to observe the Tenant’s obligations (other
than the obligation to pay rents under this lease) to the extent they relate
to the premises, and containing:

10

 

	 	(i)	 	a condition for re-entry by the underlessor
on breach of obligation by the underlessee;
	 
	 	(ii)	 	a qualified covenant not to transfer the
whole of the premises (subject to prior compliance with conditions as
set out in clause 4.15.4) and an unqualified covenant not to transfer
part of the premises or to underlet or otherwise part with possession
or share the occupation of them or any part of them (except that the
underlessee may share occupation with a Group Company of the
underlessee on the same terms as and set out in clause 4.15.8,
provided they are contained in the underlease and require notification
upon request to the Landlord of this lease); and

	 	(3)	 	which is approved by the Landlord such approval not to be
unreasonably withheld if the other provisions of this paragraph are observed;

	 	(D)	 	(save in the case of an underletting of the whole of the Premises) where
sections 24 to 28 inclusive of the 1954 Act are validly excluded in relation to the
underlease in accordance with the provisions contained and referred to in section 38A
of that Act; and
	 
	 	(E)	 	with the Landlord’s consent, in response to the Tenant’s application which
must disclose all material circumstances relevant to the proposed underletting, issued
within two months before completion of the underletting, which consent (subject to
compliance with the foregoing conditions precedent and if appropriate with clause
4.15.6) will not be unreasonably withheld.

	4.15.6	 	And, further, in relation to an underlease of a Permitted Part:

	 	(A)	 	to reserve a separate service charge in respect of the maintenance, repair
and renewal of any common parts or common facilities; and
	 
	 	(B)	 	not to grant or agree to grant any underlease:

	 	(1)	 	so as to create the possibility of there being more than
eight separate occupations affecting the whole of the Premises (occupations in
right of this lease counting as one occupation);
	 
	 	(2)	 	except where sections 24 to 28 inclusive of the 1954 Act are
validly excluded in relation to the underlease in accordance with the
provisions contained and referred to in section 38A of that Act.

	4.15.7	 	To require every underlessee to observe the provisions of the underlease and not, expressly
or impliedly, to waive any breach of them, nor to vary the terms of any underlease.
	 
	 	 	(Sharing occupation)

	4.15.8	 	Not to share the occupation of the Premises or any part of them except that the Tenant may
share occupation with a company which is, but only for so long as it remains, a Group Company
provided the Tenant does not grant the company sharing occupation exclusive possession nor
create any relationship of landlord and tenant, nor otherwise transfer or create a legal
estate, and the Tenant shall upon request notify the Landlord of the identity of each such
Group Company.

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	4.16	 	Notifying Landlord of dealings with the lease
	 
	4.16.1	 	Within five working days after any disposition or devolution of this lease, or of any estate
or interest in or derived out of it, to give the Landlord notice of the relevant transaction
with a certified copy of the relevant document (and of the notice and declaration relevant to
the exclusion of the 1954 Act from any underlease), and to pay the Landlord a fair and
reasonable fee of not more than fifty pounds for registering each notice.
	 
	4.16.2	 	To register with the Landlord the name, home address and telephone number of at least two
keyholders of the Premises.
	 
	4.17	 	Payment of cost of notices, consents etc
	 
	 	 	To pay the Landlord on demand all reasonable and proper expenses (including bailiffs’ and
consultants’ fees) incurred in connection with:

	 	(A)	 	the preparation and service of a notice under section 146 Law of Property Act
1925, or in contemplation of any proceedings under section 146 or 147 of that Act,
notwithstanding that forfeiture is avoided otherwise than by relief granted by the
court;
	 
	 	(B)	 	every step taken during, or within a reasonable time after, the expiry of
this lease in connection with the enforcement of the Tenant’s obligations, including
the service or proposed service of all notices and schedules of dilapidations and
reasonable consultants’ fees incurred in monitoring any action taken to remedy any
breach of the Tenant’s obligations; and
	 
	 	(C)	 	every application for consent under this lease, even if the application is
withdrawn provided that consent is not unreasonably withheld or subject to an unlawful
condition or conditions.

	4.18	 	Obstruction/overloading
	 
	 	 	Not to obstruct:

	 	(A)	 	or obscure any openings of the Premises;
	 
	 	(B)	 	any notice erected by the Landlord in accordance with its powers under this
lease,

	 	 	nor overload or cause undue strain to the Premises.
	 
	4.19	 	Complying with Planning Law

	4.19.1	 	Not, without the Landlord’s consent (not to be unreasonably withheld), to apply for planning
permission relating to the Premises.

	4.19.2	 	If the Landlord reasonably requires in connection with any relevant proposal by the Tenant,
to apply for a determination under section 192 Town and Country Planning Act 1990.

	4.19.3	 	If the Landlord gives consent under clause 4.19.1, not to implement the planning permission
before the Landlord has acknowledged, acting reasonably, that its terms are acceptable.

12

 

	4.19.4	 	To complete before the end of the Term all works on the Premises required as a condition of
any planning permission implemented by the Tenant or by any person claiming under or through
it.

	4.20	 	Indemnifying the Landlord
	 
	 	 	To indemnify the Landlord against all consequences of any breach of any of the Tenant’s
obligations (including all costs reasonably incurred by the Landlord in an attempt to
mitigate any such breach).
	 
	4.21	 	Notifying defects in the Premises
	 
	 	 	To notify the Landlord, without delay, of any defect in the Premises which becomes known to
the Tenant and which might give rise to:

	 	(A)	 	an obligation on the Landlord to do, or refrain from doing, anything at the
Premises; or
	 
	 	(B)	 	any duty of care, or the need to discharge such duty, imposed by the
Defective Premises Act 1972,

	 	 	and to display such notices as the Landlord may reasonably require to be displayed at the
Premises relating to their state of repair and condition.
	 
	4.22	 	Insurance and fire fighting equipment
	 
	4.22.1	 	Not to do or omit anything by which any insurance policy, of which the Tenant shall have
been provided with written particulars, relating to the Premises becomes void or voidable.
	 
	4.22.2	 	To comply with all requirements and reasonable recommendations of the insurers and to
provide and maintain unobstructed, appropriate operational fire fighting equipment and fire
notices on the Premises.
	 
	4.22.3	 	To notify the Landlord, without delay, of any incidence of an Insured Risk on the Premises
and of any other event which ought reasonably to be brought to the insurers’ attention.
	 
	4.22.4	 	If the Tenant or any person claiming title from it is entitled to the benefit of any
insurance of the Premises, to cause all money paid under such insurance to be applied in
making good the loss or damage for which it was paid.
	 
	4.22.5	 	If any damage is caused to the Premises and any insurance money under the Landlord’s
insurance is irrecoverable because of a breach of the Tenant’s obligations, to pay the
Landlord, without delay, the whole of the irrecoverable insurance money.
	 
	4.22.6	 	If there is any deficiency in any insurance money received by the Landlord in respect of the
replacement of any damage or destruction referred to in clause 5.2.3 because the Tenant has
failed to comply with its obligations under clause 4.12.4, or if any insurance valuation
provided under that clause is shown (even allowing for reasonable inflation) to have been too
low at the time it was given, to pay the Landlord the amount of the deficiency in the
insurance money.

13

 

	4.23	 	Dangerous and contaminative materials
	 
	 	 	Not to keep or use at the Premises any dangerous or contaminative materials which might
cause harm and, if there is any breach of that obligation, to remove all trace of the
material from the affected land and to leave it in a clean and safe condition.
	 
	4.24	 	Returning the Premises to the Landlord
	 
	 	 	At the expiry of this lease:

	 	(A)	 	to return all keys of the Premises to the Landlord;
	 
	 	(B)	 	to remove all chattels and tenant’s fixtures and to vacate the Premises,
reinstated and restored and made good in accordance with clause 4.12.6 and in the
state of repair and condition required pursuant to the Tenant’s obligations;
	 
	 	(C)	 	to make due application to the Land Registry for the cancellation of any
notice of, or relating to, this lease or any document supplemental or collateral to it
and, on request, to supply the Landlord with a copy of the application; and
	 
	 	(D)	 	subject to paragraph (B), to return the documents referred to in that
paragraph to the Landlord.

	4.25	 	Covenants
	 
	 	 	To comply with all obligations affecting the Premises being those contained or referred to
in the documents referred to in schedule 2 and not to interfere with any rights which
benefit them.
	 
	4.26	 	Land Registry
	 
	 	 	To the extent the grant (or any transfer) of this lease and of any right appurtenant to it
requires to be completed by registration pursuant to the Land Registration Act 2002 in
order to operate at law, to comply with the relevant registration requirements and, as soon
as practicable, to provide the Landlord’s solicitors with a copy of an official copy of the
relevant register evidencing compliance with them.
	 
	4.27	 	Head Lease
	 
	4.27.1	 	To comply with the lessee’s obligations contained in the Head Lease so far as they relate to
the Premises, except the obligations to pay rent and, so far as the obligation to insure falls
on the Landlord pursuant to clause 5.2, to insure.
	 
	4.27.2	 	Not to do or omit any act or thing which would or might cause the Landlord to be in breach
of the Head Lease.
	 
	5.	 	LANDLORD’S OBLIGATIONS
	 
	 	 	The Landlord agrees with the Tenant:
	 
	5.1	 	Quiet enjoyment
	 
	 	 	That the Tenant may peaceably hold and enjoy the Premises without any interruption by the
Landlord or any person rightfully claiming from or in trust for it.

14

 

	5.2	 	Insurance
	 
	5.2.1	 	To keep the Premises (except any demountable partitioning, window blinds and wall or floor
surface coverings not installed by or at the cost of the Landlord and fixtures which are
tenant’s trade fixtures) insured against the Insured Risks in a sum which, in the Landlord’s
reasonable opinion, is their full replacement cost (but not necessarily the facsimile
reinstatement cost).
	 
	5.2.2	 	On request to supply the Tenant (but not more frequently than once in any period of twelve
months) with evidence of such insurance.
	 
	5.2.3	 	If, during the Term, the Premises (except as set out in clause 5.2.1) are damaged by an
Insured Risk and to the extent that payment of the insurance money is not refused because of a
breach of the Tenant’s obligations, the Landlord will (subject to clause 6.5) with all
convenient speed take the necessary steps to obtain any requisite planning permissions and
consents and, if they are obtained, to lay out the insurance money received (except sums for
public and employer’s liability and loss of rent) towards replacing, but not necessarily in
facsimile reinstatement, the damaged parts (except as set out in clause 5.2.1) as soon as
reasonably practicable and will make up any deficiencies out of its own resources but:

	 	(A)	 	the Landlord’s obligation to insure and to replace does not extend to any
alteration or addition referred to in clause 4.12.4, if and to the extent the Tenant
has failed to comply with that clause;
	 
	 	(B)	 	the Landlord is not liable to carry out the replacement if it is unable,
having used all reasonable endeavours, to obtain every permission and consent
necessary to execute the relevant work, in which event the Landlord shall, subject to
paragraph (C), be entitled to retain all the insurance money received by it; and
	 
	 	(C)	 	if the Landlord is not liable to carry out the replacement and if the Tenant
has complied with clause 4.12.4, the Landlord shall pay the Tenant that proportion of
any received insurance money which is referable to any damaged alterations or
additions referred to in that clause, such proportion to be agreed between the
Landlord and the Tenant or, if they cannot agree, to be determined by an arbitrator
appointed by The Royal Institution of Chartered Surveyors on the application of the
Landlord or the Tenant in accordance with the Arbitration Act 1996.

5.2.4  Waiver of Subrogation

The Landlord shall use all reasonable endeavours to obtain the insurer’s agreement to waive
all rights of subrogation against the Tenant, its servants and agents in respect of any
claim concerning damage to the Premises during the Term.

5.3     Head Lease

5.3.1  To comply with the lessee’s obligations in the Head Lease to the extent the Tenant is not
liable to do so pursuant to clause 4.27.

5.3.2  On the request of the Tenant and at its reasonable and proper expense, to take all
reasonable steps to enforce the

 Superior Landlord’s obligations in the Head Lease.

5.3.3  Without prejudice to the generality of clause 5.3.2:

15

 

	 	(A)	 	the Landlord shall, without delay, pay to the Tenant the sums it receives
from the Superior Landlord pursuant to paragraph 2 of Schedule C to the Head Lease
save where the Superior Landlord makes such payment direct to the Tenant in respect of
which the Landlord and the Tenant shall use reasonable endeavours to achieve; and
	 
	 	(B)	 	if the Superior Landlord does not provide the Landlord’s Services (as defined
in Schedule D to the Head Lease) to the reasonable satisfaction of the Tenant the
Tenant may serve notice to that effect on the Landlord and the Landlord (acting
reasonably) shall either carry out the appropriate Landlord’s Services (in accordance
with paragraph 5.1 of Schedule D to the Head Lease) or refer the issue to
determination (in accordance with paragraph 5.2 of Schedule D to the Head Lease).

	5.3.4	 	Wherever the Tenant makes application for any consent under this lease and the Landlord is
prepared in principle to give its consent, to take all reasonable steps, at the Tenant’s
reasonable expense, to obtain any necessary consent from the Superior Landlord.
	 
	5.4	 	Defects
	 
	5.4.1	 	In this clause 5.4:
	 
	 	 	“Defect” means a defect in the Landlord’s Works attributable to faulty design and/or faulty
workmanship and/or faulty materials and/or faulty installation;
	 
	 	 	“Landlord’s Works” means the works carried out to the Premises by or on behalf of the
Landlord and/or by or on behalf of Tilebox Limited (company registration number 03600395)
prior to the grant of this lease;
	 
	5.4.2	 	The Landlord covenants with the Tenant within a reasonable time and to the Tenant’s
reasonable satisfaction to make good any Defect or procure that any Defect is made good
provided that the existence of such Defect is notified in writing by the Tenant to the
Landlord prior to [   ] 2011.
	 
	5.4.3	 	The Tenant shall permit the Landlord to have access to such parts of the Premises as are
necessary in order to remedy any Defects.
	 
	5.4.4	 	Such access will be in accordance with a programme submitted by the Landlord and approved by
the Tenant (such approval not to be unreasonably withheld or delayed).
	 
	5.4.5	 	The Landlord shall procure that all persons given access to the Premises in order to comply
with its obligations pursuant to this clause 5.4:

	 	(A)	 	are supervised by a representative of the Landlord’s contractor at all times;
	 
	 	(B)	 	comply with the proper and reasonable safety requirements imposed by the
Tenant from time to time for the Premises and notified to the Landlord in writing;
	 
	 	(C)	 	comply with the programme agreed by the Tenant pursuant to clause 5.4.4 so as
to cause the minimum disruption to the Tenant’s business; and
	 
	 	(D)	 	do not materially impede the Tenant’s use and enjoyment of the Premises.

16

 

	5.4.6	 	The Landlord shall procure that any damage caused in complying with its obligations under
clause 5.4.2 is made good forthwith and to the reasonable satisfaction of the Tenant.

	5.4.7	 	If the Landlord and the Tenant cannot agree on whether the subject matter of a notice given
by the Tenant under paragraph 5.4.2 constitutes a Defect within fourteen days of such notice
the dispute will be determined by an arbitrator in accordance with the Arbitration Act 1996.
The arbitrator shall be appointed by the president or vice president of The Royal Institution
of Chartered Surveyors on the application of the Landlord or the Tenant.

	6.	 	OTHER AGREEMENTS AND DECLARATIONS
	 
	6.1	 	Forfeiture and re-entry
	 
	 	 	If:

	 	(A)	 	any rent is unpaid for twenty-one days after becoming payable (whether the
rent has been demanded or not); or
	 
	 	(B)	 	there is any other breach of the Tenant’s obligations; or
	 
	 	(C)	 	any guarantee of the Tenant’s obligations is or becomes unenforceable for any
reason; or
	 
	 	(D)	 	if the Tenant or any Guarantor (or if more than one person any one of them):

	 	(1)	 	is the subject of a winding up order, bankruptcy order or a
petition is presented, filed or lodged at court for winding up or liquidation
whether voluntarily (except for reconstruction or amalgamation of a solvent
company on terms agreed by the Landlord acting reasonably) or compulsorily;
	 
	 	(2)	 	calls, convenes or summons a meeting of members to consider a
winding-up resolution or is the subject of any such resolution, except for a
voluntary reconstruction as stated in paragraph (1);
	 
	 	(3)	 	is subject to the appointment of any receiver, manager or
administrative receiver or a provisional liquidator or a resolution is passed
or any other step is taken by the Tenant or the Guarantor or its directors for
the appointment of an administrator, or an administrator is appointed, or a
petition or application for an administration order is presented, in relation
to the Tenant or the Guarantor;
	 
	 	(4)	 	enters into any form of compromise of debts, scheme of
arrangement, rescheduling or restructuring with its creditors or any of them,
including but not limited to any scheme of arrangement under the Companies Act
1985 or any voluntary arrangement under the Insolvency Act 1986;
	 
	 	(5)	 	obtains, or takes any steps to obtain, any moratorium or
other form of protection against creditors or a general suspension of the
payment of debts due and payable, including but not limited to any moratorium
available under the Insolvency Act 1986;

17

 

	 	(6)	 	dies or is dissolved or is otherwise struck off any register
of companies in its place of incorporation or any other place where it is
registered or located;
	 
	 	(7)	 	is the subject of any lawful forfeiture, execution,
distraint, repossession in relation to any of its assets; or
	 
	 	(8)	 	is the subject of any analogous procedure, regime, process or
step in any jurisdiction outside England and Wales.

	 	 	 	the Landlord may, notwithstanding the waiver of any previous right of re-entry,
re-enter on any part of the Premises and on such re-entry this lease shall
absolutely determine, but without prejudice to any Landlord’s right of action for
any prior breach of the Tenant’s obligations.

	6.2	 	No implied rights
	 
	6.2.1	 	Neither the Tenant nor the Premises is entitled to any right, including any quasi-easement,
except those expressly granted by this lease.
	 
	6.2.2	 	The Tenant may not enforce, or prevent the release or modification of, any type of right or
obligation attaching to the Landlord’s interest in the Premises or in any other land so as to
prevent or restrict the development or use of any other land.
	 
	6.2.3	 	Any provision of this lease which would, apart from this provision, be in conflict with this
clause takes effect subject to it.
	 
	6.3	 	Service of notices
	 
	6.3.1	 	In addition to any other method of service, any notice which is served under this lease
shall be validly served if it is served in accordance with section 196 Law of Property Act
1925, as amended by the Recorded Delivery Service Act 1962.
	 
	6.3.2	 	If the Tenant or any Guarantor comprises more than one person, it shall be sufficient if
notice is served on one of them, but a notice duly served on the Tenant does not need to be
served on any Guarantor.
	 
	6.4	 	Relief from liability to pay rent
	 
	 	 	If:

	 	(A)	 	the Premises (except as set out in clause 5.2.1) are damaged by an Insured
Risk, so that the Premises are incapable of occupation and use; and
	 
	 	(B)	 	the payment of any insurance money has not been vitiated by a breach of the
Tenant’s obligations,

	 	 	the Yearly Rent, or a fair proportion of it according to the nature and extent of the
damage sustained, shall cease to be payable from the date when the damage occurred until
the date on which the Premises (except as set out in clause 5.2.1) are made fit for
substantial occupation and use and any dispute about such cessation shall be determined by
an arbitrator to be appointed, in default of agreement, on the application of the Landlord
or the Tenant to The Royal Institution of Chartered Surveyors in accordance with the
Arbitration Act 1996.

18

 

	6.5	 	Ending of the lease following major damage
	 
	6.5.1	 	If the Premises are damaged by an Insured Risk so that substantially the whole of them
cannot be occupied for the Permitted Use without substantial work being undertaken under
clause 5.2, this lease may be determined:

	 	(A)	 	by the Tenant, but only if:

	 	(1)	 	the Landlord has not commenced the necessary replacement work
by the expiry of 24 months after the date when the damage occurred; or
	 
	 	(2)	 	the necessary replacement work is not substantially complete
by the expiry of the period for which loss of rent is insured; and, in either
case,
	 
	 	(3)	 	payment of any insurance money has not been vitiated by a
breach of the Tenant’s obligations; and
	 
	 	(4)	 	it does not owe the Landlord any debt under clauses 4.22.5 or
4.22.6; and
	 
	 	(5)	 	it serves the Landlord, by the expiry of 26 months after the
date when the damage occurred (if paragraph (1) applies) or by the expiry of
the period for which loss of rent is insured (if paragraph (2) applies), with
written notice to determine; and

	 	(B)	 	by the Landlord, but only if:

	 	(1)	 	the damage occurs during the last five years of the Term; and
	 
	 	(2)	 	despite having used all reasonable endeavours to achieve a
lawful commencement of the necessary replacement work by the expiry of the
period specified in paragraph (A)(1), the Landlord was unable to do so; and
	 
	 	(3)	 	it serves the Tenant, by the expiry of 28 months after the
date when the damage occurred, with not less than six months prior written
notice to determine.

	6.5.2	 	Once a notice has been served under 6.5.1(A)(5) or (B)(3), it shall be irrevocable and the
Landlord’s obligations under clause 5.2.3 shall cease and, on the expiry of the notice, this
lease shall determine without prejudice to any accrued rights of any party and the Landlord
shall be entitled to retain the insurance money (provided that, if the Tenant has complied
with clause 4.12.4, the Landlord shall pay the Tenant that proportion of any received
insurance money which is referable to any damaged alterations or additions referred to in that
clause, such proportion to be agreed between the Landlord and the Tenant or, if they cannot
agree, to be determined by an arbitrator appointed by The Royal Institution of Chartered
Surveyors on the application of the Landlord or the Tenant in accordance with the Arbitration
Act 1996).
	 
	6.5.3	 	For the purposes of this clause, replacement work:

	 	(A)	 	commences when it would be treated as commencing under Section 56 of the Town
& Country Planning Act 1990 but work of demolition does not, of itself, signify
commencement; and

19

 

	 	(B)	 	is substantially complete when any person, appointed by the Landlord to
certify its completion, properly certifies that it is complete, whether by issue of a
certificate of practical completion or otherwise.

	6.5.4	 	Time is of the essence of the periods referred to in this clause.
	 
	6.6	 	Arbitration fees
	 
	 	 	Any arbitrator’s fees may be paid by the Landlord or the Tenant, notwithstanding any
direction or prior agreement as to liability for payment, and if either party chooses to do
so, it shall be entitled to an appropriate repayment by the other party on demand.
	 
	6.7	 	No warranty as to use
	 
	 	 	The Landlord does not warrant that the Premises are authorised under Planning Law to be
used, or are otherwise fit for, any specific purpose.
	 
	6.8	 	Overriding lease
	 
	 	 	If, during the Term, the Landlord grants a tenancy of the reversion immediately expectant
on the determination of this lease, whether pursuant to section 19 Landlord and Tenant
(Covenants) Act 1995 or otherwise, any obligation of the Tenant to obtain the consent of
the Landlord under this lease to any dealing with it includes an obligation to obtain the
consent of the lessor under such tenancy to that dealing.
	 
	6.9	 	Application of Landlord and Tenant (Covenants) Act 1995
	 
	 	 	This lease is a new tenancy for the purposes of the Landlord and Tenant (Covenants) Act
1995.
	 
	6.10	 	Exclusion of Third Party Rights
	 
	 	 	The parties confirm that no term of this lease is enforceable under the Contracts (Rights
of Third Parties) Act 1999 by a person who is not a party to it.
	 
	6.11	 	Jurisdiction
	 
	 	 	This lease is governed by and construed in accordance with the law of England and the
Tenant and the Guarantor submit to the exclusive jurisdiction of the English courts and
agree that any process may be served on them by leaving a copy of the relevant document at
the Premises and each party to this lease undertakes to notify the other in advance of any
change from time to time of such address for service and to maintain an appropriate address
at all times.
	 
	7.	 	GUARANTOR’S OBLIGATIONS
	 
	 	 	In consideration of the Landlord entering into this lease, the Guarantor as a principal
obligor agrees with the Landlord that:
	 
	7.1	 	Guarantee
	 
	 	 	Until the expiry of this lease or until any earlier date when the Guarantor is released by
virtue of the Landlord and Tenant (Covenants) Act 1995 from its obligations under this
sub-clause:

20

 

	 	(A)	 	the Tenant’s obligations will be performed;
	 
	 	(B)	 	the Tenant will comply with any authorised guarantee agreement which it
enters into on a transfer of this lease; and
	 
	 	(C)	 	to the extent the Tenant’s obligations or any such authorised guarantee
agreement are not complied with, the Guarantor will comply with them and will
indemnify the Landlord against any loss it suffers as a result of any non-compliance.

	7.2	 	Preservation of the Guarantee
	 
	 	 	The Guarantor’s obligations under sub-clause 7.1 are not affected by:

	 	(A)	 	any indulgence, compromise or neglect in enforcing the Tenant’s obligations
or any refusal by the Landlord to accept tendered rent;
	 
	 	(B)	 	any variation or waiver of any of the terms of this lease;
	 
	 	(C)	 	any partial surrender of this lease (and the Guarantor’s liability shall
continue but only in respect of the Tenant’s continuing obligations);
	 
	 	(D)	 	any forfeiture of this lease, whether in whole or in part;
	 
	 	(E)	 	any legal limitation, immunity, incapacity, insolvency or the winding-up of
the Tenant or by the fact that the Tenant otherwise ceases to exist;
	 
	 	(F)	 	any action taken by or on the Landlord’s behalf in contemplation of
re-letting the Premises;
	 
	 	(G)	 	any other act or omission which, but for this provision, would have released
the Guarantor from liability;

	 	 	or any combination of any such matters.
	 
	7.3	 	No right to participate in security

	 	 	The Guarantor may not participate in, or exercise any right of subrogation in respect of,
any security held by the Landlord for the Tenant’s obligations.
	 
	7.4	 	Disclaimer etc.
	 
	 	 	If this lease is disclaimed, forfeited or if the Tenancy ceases to exist:
	 
	7.4.1	 	The Landlord may require the Guarantor at its reasonable and proper cost to accept a new
lease of the Premises on the same terms of, and containing the same agreements as, this lease
(and, where any such term applies as at a particular date or period, as at the same date or
period), as if this lease had not been disclaimed etc. and as the terms have effect
immediately before the disclaimer etc., for the residue of the Term, and with effect, from the
date of disclaimer etc. but the new lease shall omit this clause.
	 
	7.4.2	 	For the purposes of sub-clause 7.4.1:

	 	(A)	 	the Landlord may notify the requirement to the Guarantor only within the
period of three months commencing on the date of disclaimer;

21

 

	 	(B)	 	if there are any matters outstanding under this lease immediately before it
is disclaimed, they shall be determined between the Landlord and the Guarantor and be
reflected, as appropriate, in the new lease;
	 
	 	(C)	 	the new lease shall be completed within 4 weeks after the date when the
Landlord notifies the requirement to the Guarantor.

	7.5	 	Transfer of the reversion
	 
	 	 	The benefit of the Guarantor’s obligations under this clause will pass to a transferee of
the Landlord’s reversion in the Premises without need for an express assignment.

IN WITNESS whereof this deed has been executed by the parties hereto and is intended to be and is
hereby delivered on the date first above written.

22

 

SCHEDULE 1

PART I

(the Premises)

The land and buildings known as Onslow House, Guildford, being the whole of the land comprised in
Title Numbers SY702491 and SY706210

PART II

(Rights)

The rights granted by paragraphs 1 to 9 (inclusive) of Part 3 of Schedule A to the Head Lease

PART III

(Exceptions and reservations)

	1.	 	The rights excepted and reserved by the Head Lease.
	 
	2.	 	The right, at reasonable times on reasonable prior written notice (except in an emergency),
to enter the Premises as often as may be necessary for any purpose for which the Tenant
covenants in this lease to permit entry.
	 
	3.	 	The right to construct, inspect, maintain, repair and renew and to make connections to any
conduit at the Premises at any time during the Term for the benefit of any other land.
	 
	4.	 	All rights of light, air and other easements and rights enjoyed by the Premises from or over
any other land.
	 
	5.	 	The right to erect and maintain scaffolding on or against the Premises so long as reasonable
and sufficient means of access to, egress from and servicing the Premises are maintained,

such rights being reserved for the benefit of the land comprised in title numbers SY702491 and
SY706210 and exercisable provided the Landlord causes as little interference as reasonably possible
to the Tenant’s use of the Premises for its business (except where it is necessary to do so in
order to comply with any obligation to the Tenant) and, if the Landlord exercises any of the rights
by carrying out work on the Premises, it shall make good any damage caused to them and to any of
the Tenant’s chattels straight away, unless the right has been exercised because of some material
breach of the Tenant’s obligations and the Landlord would otherwise be out of pocket.

23

 

SCHEDULE 2

(Covenants etc.)

	1.	 	The Section 106 Agreement.
	 
	2.	 	Section 278 Agreement dated 03.11.2000 and made between (1) Surrey County Council and (2)
Tilebox Limited.
	 
	3.	 	The entries contained or referred to in the registers of title number SY702491.

24

 

	 	 	 
	SIGNED and DELIVERED as a deed
	 	)
	by
	 	)
	as the Attorney of THE STANDARD
	 	)
	LIFE ASSURANCE COMPANY
	 	)
	(in exercise of a Power of Attorney under its
	 	)
	Seal dated 28 April 2005)
	 	)
	in the presence of:
	 	)
	 
	 	 
	Signature of Witness:
	 	 
	 
	 	 
	Name (in BLOCK CAPITALS):
	 	 
	 
	 	 
	Address:
	 	 
	 
	 	 
	EXECTED as a DEED by
	 	)
	ELECTRONIC ARTS LIMITED was
	 	)
	hereunto affixed in the presence of:
	 	)
	 
	 	 
	Director
	 	 
	 
	 	 
	Director/Secretary
	 	 
	 
	 	 
	[THE COMMON SEAL of [
	 	)
	] was hereunto affixed
	 	)
	in the presence of:
	 	)
	 
	 	 
	Director
	 	 
	 
	 	 
	Director/Secretary]
	 	 

25

 

                     2006

THE STANDARD LIFE ASSURANCE COMPANY

and

ELECTRONIC ARTS LIMITED

 

DEED

relating to

Onslow House, Guildford, Surrey

 

Herbert Smith LLP

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	Clause	 	 	Headings	 	Page	 
	1.	 	 	DEFINITIONS AND INTERPRETATION 
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	1.1	 	 	Definitions
	 	 	1	 
	1.2	 	 	Interpretation
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	2.	 	 	CLADDING DEFECTS
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	3.	 	 	DISPUTE RESOLUTION
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	4.	 	 	REIMBURSEMENT OF LOSSES
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	5.	 	 	ASSIGNMENT
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	6.	 	 	DURATION
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	7.	 	 	THIRD PARTY RIGHTS
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	8.	 	 	JURISDICTION
	 	 	4	 

 

 

THIS DEED is made on the     day of               2006

BETWEEN:

	(1)	 	THE STANDARD LIFE ASSURANCE COMPANY whose head office is at 30 Lothian Road, Edinburgh EH1
2PH (Co. Regn. No: SZ000004) (“Standard Life”) and
	 
	(2)	 	ELECTRONIC ARTS LIMITED whose registered office is at 2000 Hillswood Drive, Chertsey, Surrey
KT16 0EV (Co. Regn. No: 02057591) (the “Tenant”)

WITNESSES as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this agreement the following words and expressions have the following meanings unless
the context otherwise requires:
	 
	 	 	“Building Contract” means the building contract dated 27th April 2001 made
between Tilebox Limited (Co. Regn. No. 03600395) (1) and the Contractor (2) as amended and
varied;
	 
	 	 	“Cladding Defect” means a defect in the Cladding System (excluding any snagging matters
identified at or about the date of practical completion of the works which are the subject
of the Building Contract and which the Landlord procures or rectifies within a reasonable
period following practical completion) attributable to the design, workmanship, materials,
or installation of the Cladding System;
	 
	 	 	“Cladding System” means the Spanwall composite cladding system, the double glazed Kawneer
curtain walling system and all brise soleil assemblies and external steel grillage
(including all bracketry and associated fixings) to the Premises;
	 
	 	 	“Contractor” means Alfred McAlpine Capital Projects Limited (Co. Regn. No. 00247624) whose
registered office is at Kinnaird House, 1 Pall Mall East, London SW1Y 5AZ;
	 
	 	 	“Initial Period” means the period commencing on the date of this deed and expiring on [ ]
2011 [i.e. as clause 5.4.2 of Lease];
	 
	 	 	“Landlord” means the person for the time being entitled to the reversion expectant on the
determination of the Lease;
	 
	 	 	“Lease” means an underlease of even date made between Standard Life (1) the Tenant (2) and
Electronic Arts Inc. (3) of the premises shortly known as Onslow House, Guildford, Surrey
(more particularly described in such underlease);
	 
	 	 	“Losses” means the aggregate of (i) the reasonable costs properly incurred by the Tenant in
rectifying a Cladding Defect by way of repair, replacement or renewal as appropriate and
(ii) (where Remedial Works cannot reasonably be carried out unless the Tenant vacates the
Premises in whole or in part) the Tenant’s reasonable temporary relocation costs (to
include without limitation the cost of taking alternative premises, professional costs and
removal expenses to and from such alternative premises);

1

 

	 	 	“Maximum Amount” means £750,000 in aggregate (exclusive of VAT);
	 
	 	 	“Remedial Works” means works undertaken or procured by the Tenant to rectify a Cladding
Defect by way of repair, replacement or renewal, as appropriate.
	 
	1.2	 	Interpretation

	 	1.2.1	 	Any expressions common to this Deed and the Lease shall have the same
meaning ascribed to them in the Lease unless this agreement otherwise prescribes.
	 
	 	1.2.2	 	Words in the singular shall include the plural and vice versa and words of
one gender shall include the other two genders.
	 
	 	1.2.3	 	If a party comprises two or more persons their obligations and liabilities
are joint and several.
	 
	 	1.2.4	 	Reference to a party agreeing not to do or omit any act or thing shall
include references to that party not permitting or suffering it to be done or omitted.
	 
	 	1.2.5	 	Any reference to a Clause is a reference to a Clause of this Deed and any
heading in this Deed shall not affect its construction.
	 
	 	1.2.6	 	The obligations of Standard Life contained in this Deed shall be personal to
Standard Life.
	 
	 	1.2.7	 	Any reference to any statute or section of a statute shall include all
subordinate legislation deriving validity from that statute or section of a statute
and shall extend to any statutory amendment modification consolidation and
re-enactment of it or such subordinate legislation for the time being in force.

	2.	 	CLADDING DEFECTS
	 
	2.1	 	The Tenant shall notify the Landlord of any Cladding Defect which becomes apparent during the
Initial Period.
	 
	2.2	 	In relation to any Cladding Defect notified pursuant to clause 2.1 the Tenant shall allow the
Landlord a reasonable period of time having regard to the nature and extent of the Cladding
Defect within which to rectify the Cladding Defect in accordance with clause 5 of the Lease
before submitting the details of the proposed Remedial Works to Standard Life in accordance
with clause 2.3. Where Standard Life is the Landlord, Standard Life shall keep the Tenant
advised of any remedial works it proposed to undertake to rectify a Cladding Defect and have
due regard to (but not be bound by) any representations which the Tenant or its
representatives may make in relation to the same.
	 
	2.3	 	The Tenant shall submit to Standard Life for its approval (not to be unreasonably withheld or
delayed) full details of any Remedial Works it proposes to undertake and its reasonable
estimate of Losses.
	 
	2.4	 	The Tenant shall have due regard to (but shall not be bound by) any representations which
Standard Life may make in relation to the proposed Remedial Works and/or the need for the
Tenant to vacate the Premises in whole or in part whilst the proposed Remedial Works are
carried out.

2

 

	2.5	 	If Standard Life has not objected to the Tenant’s proposals pursuant to clause 2.3 within 10
working days giving reasonable details of its reasons for such objection, Standard Life’s
consent shall be deemed to be given.
	 
	3.	 	DISPUTE RESOLUTION
	 
	3.1	 	Any dispute or difference between the parties as to any matters referred to in clause 2.2,
2.3 or 2.4 shall be determined by an arbitrator in accordance with the Arbitration Act 1996.
In the absence of agreement, the arbitrator shall be appointed by the President or Vice
President of the Royal Institution of Chartered Surveyors.
	 
	3.2	 	Any dispute or difference between the parties as to what may be a reasonable period of time
pursuant to clause 2.2 shall be determined by expert determination in accordance with clauses
3.3-3.7.
	 
	3.3	 	The expert shall be an independent chartered surveyor who shall be a partner in or director
of a leading firm of surveyors having their main UK office in Central London and who shall
have not less than ten years post qualification experience.
	 
	3.4	 	That expert shall be previously agreed upon between Standard Life and the Tenant or (in the
absence of such agreement) nominated on the application of either Standard Life or the Tenant,
or both of them jointly, by the President for the time being of the Royal Institution of
Chartered Surveyors, or his duly appointed nominee.
	 
	3.5	 	The expert shall:

	 
	 	3.5.1	 	act as an expert;
	 
	 	3.5.2	 	allow the parties a reasonable opportunity of making representations and
counter-representations to him;
	 
	 	3.5.3	 	take those representations and counter-representations into account; and
	 
	 	3.5.4	 	if required by either party give written reasons for his determination.

	3.6	 	The award of the expert shall be binding on the parties, and the costs of the reference to
him and of his determination (including his own fees and expenses and the legal and other
costs of the parties) shall lie in his award.
	 
	3.7	 	If the expert dies or becomes unwilling to act or becomes incapable of acting, the President
may, upon the application of either Standard Life or the Tenant, or both of them jointly,
discharge him and appoint another chartered surveyor to act in his place and this shall be
repeated as many times as the circumstances may require.
	 
	4.	 	REIMBURSEMENT OF LOSSES
	 
	Standard Life shall upon production from time to time of receipted invoices or, in the absence of
such invoices, other evidence satisfactory to Standard Life (acting reasonably) of monies expended
by the Tenant in respect of any matter falling within the definition of Losses pay to the Tenant
the monies so expended within 14 working days after the production to Standard Life of such
receipted invoices or other evidence PROVIDED THAT Standard Life shall not be obliged to make:-
	 
	4.1	 	any such payment or part of such payment to the extent that the amount of it when aggregated
with any previous payments exceeds the Maximum Amount;

3

 

	4.2	 	any such payment in respect of VAT which is recoverable by the Tenant as an input.
	 
	5.	 	ASSIGNMENT

This Deed may be assigned without the consent of Standard Life by the Tenant to another person (T1)
taking an assignment of the Tenant’s interest in the Lease and by T1 to another person (T2) taking
an assignment of T1’s interest in the Lease. Standard Life shall be given written notice of any
assignment, but failure to give such notice shall not affect the validity or effectiveness of such
assignment. No further or other assignment of this Deed will be permitted and in particular T2
shall not be entitled to assign this Deed.

	6.	 	DURATION

The Tenant shall not be permitted to make any claim pursuant to this Deed after the expiry of the
Term or earlier determination of the Lease.

	7.	 	THIRD PARTY RIGHTS

For the avoidance of doubt the parties confirm that this Deed shall not and the parties do not
intend that this Deed shall confer or purport to confer on any third party any right to enforce any
term of this Deed pursuant to The Contracts (Rights of Third Parties) Act 1999.

	8.	 	JURISDICTION

This Deed shall in all respects be governed by the Laws of England and Wales and subject to clause
3 any dispute or difference arising under or in connection with this Deed shall be subject to the
exclusive jurisdiction of the Courts of England and Wales, save for the purposes of enforcing the
decisions of such courts in other jurisdictions.

IN WITNESS whereof this Deed has been executed by the parties hereto and is intended to be and is
hereby delivered on the date first above written

	 	 	 	 	 	 	 
	SIGNED and DELIVERED as a deed

	 	 	)	 	 	 
	by

	 	 	)	 	 	 
	as the Attorney of THE STANDARD LIFE

	 	 	)	 	 	 
	ASSURANCE COMPANY (in exercise

	 	 	)	 	 	 
	of a Power of Attorney under its Seal

	 	 	)	 	 	 
	dated 28 April 2005)

	 	 	)	 	 	 
	In the presence of:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Signature of Witness;
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name (in BLOCK CAPITALS):
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 

4

 

	 	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	 
	ELECTRONIC ARTS LIMITED was

	 	 	)	 	 	 
	hereunto affixed in the presence of

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Director
	 	 	 
	 
	 	 	 	 	 	 
	Director/Secretary
	 	 	 

5

 

                              2006

	 	 	 
	LANDLORD:

	 	THE STANDARD LIFE ASSURANCE COMPANY and
	 
	 	 
	TENANT:

	 	ELECTRONIC ARTS LIMITED and
	 
	 	 
	GUARANTOR:

	 	ELECTRONIC ARTS INC

 

LICENCE TO ALTER

(by tenant within demise)

relating to Lease of

Onslow House, Guildford, Surrey

 

The Landlord’s consent has not been given and is not being given by virtue of this draft being
sent out or until a formal licence executed by the landlord is completed.

Herbert Smith LLP

1

 

LICENCE DATED

	 	 	 	 	 	 	 	 	 
	1.

	 	PARTICULARS	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LANDLORD	 	THE STANDARD LIFE ASSURANCE COMPANY whose registered office
is at Standard Life House, 30 Lothian Road Edinburgh EH1
2DH (Co. Regn. No.SZ000004)
	 
	 	 	 	 	 	 	 	 
	 	 	TENANT	 	ELECTRONIC ARTS LIMITED whose registered office is at 2000
Hillswood Drive Chertsey Surrey KT16 0EU (Co. Regn.
No.02057591)
	 
	 	 	 	 	 	 	 	 
	 	 	GUARANTOR	 	ELECTRONIC ARTS INC whose registered office is at 209
Redwood Shares Parkway, Redwood City California 94065 (a
corporation incorporated in the State of Delaware)
	 
	 	 	 	 	 	 	 	 
	 	 	PREMISES	 	Onslow House, Guildford more particularly described in the
Lease;
	 
	 	 	 	 	 	 	 	 
	 

	 	LEASE
	 	Date:
	 	[
	 	] 2006
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Parties:
	 	(1) the Landlord	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(2) the Tenant	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(3) the Guarantor	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	and includes all documents supplemental to it (whether or
not expressed to be so);
	 
	 	 	 	 	 	 	 	 
	 	 	TERM	 	the term of years granted by the Lease;
	 
	 	 	 	 	 	 	 	 
	 	 	CDM REGULATIONS	 	the Construction (Design and Management) Regulations 1994;
	 
	 	 	 	 	 	 	 	 
	 	 	REQUISITE

CONSENTS	 	all requisite planning permissions, building regulation
requirements, relevant British Standards and Codes of
Practice, Acts of Parliament, byelaws and regulations
necessary to commence carry out and complete the Works;
	 
	 	 	 	 	 	 	 	 
	 	 	WORKS	 	the works to the Premises described in the drawing(s) (and
specification(s)) referred to in the schedule and annexed
to this licence.

1

 

	2.	 	OWNERSHIP
	 
	 	 	The reversion expectant on the determination of the Term is vested in the Landlord and the
residue of the Term is vested in the Tenant.
	 
	3.	 	INTERPRETATION
	 
	 	 	In this licence:
	 
	3.1	 	expressions defined in the particulars and expressions defined in the CDM Regulations have
the same meaning and, unless this licence otherwise prescribes, expressions common to the
licence and the Lease have the meaning given to them in the Lease;
	 
	3.2	 	any obligation of a party which comprises more than one person takes effect as a joint and
several obligation;
	 
	3.3	 	an obligation not to do or omit anything also operates as an obligation not to permit or
suffer it to be done or omitted and to prevent or, as the case may be, to require it being
done; and
	 
	3.4	 	references to any clause, sub-clause, schedule or paragraph are to the corresponding clause,
sub-clause, schedule or paragraph in this licence and any headings do not affect the
construction or interpretation of this licence.
	 
	4.	 	CONSENT
	 
	4.1	 	The Landlord consents to the Tenant carrying out the Works upon the terms of this licence.
	 
	4.2	 	This licence is of no effect unless the Works are commenced within one month from and
including the date of this licence.
	 
	5.	 	THE WORKS
	 
	 	 	The Tenant agrees with the Landlord:
	 
	5.1	 	to obtain and produce all Requisite Consents to the Landlord before the Works are commenced;
	 
	5.2	 	if the Works are commenced, to carry out and complete them:

	 	5.2.1	 	in accordance with the details shown on the drawing(s) (and specification(s)) referred to in the schedule;
	 
	 	5.2.2	 	in a good and workmanlike manner using sound materials of good quality and in accordance with good design practice;
	 
	 	5.2.3	 	to the reasonable satisfaction of the Landlord;
	 
	 	5.2.4	 	in compliance with all Requisite Consents;
	 
	 	5.2.5	 	so that no damage nuisance or disturbance is caused to the Premises or any neighbouring premises or to the owners or occupiers of them;

2

 

	 	5.2.6	 	in compliance with the insurance policy for the Premises and all requirements of the relevant insurance company which have been notified to the Tenant in relation to the Works;
	 
	 	5.2.7	 	with all due diligence and without avoidable delay; and
	 
	 	5.2.8	 	within six months of the date of this licence;

	5.3	 	to ensure that all electrical items forming part of the Works are carried out in accordance
with the edition of the Institution of Electrical Engineers’ Requirements for Electrical
Installations which is current at the relevant time;
	 
	5.4	 	to ensure that any alteration or connection to the installed services or the Landlord’s
System as part of the carrying out of the Works are undertaken by contractors approved by the
Landlord (such approval not to be unreasonably withheld);
	 
	5.5	 	that it will during the carrying out of the Works keep all building equipment materials or
debris inside the Premises; and
	 
	5.6	 	if required by the Landlord, to make good any damage to the Premises during the progress of
the Works to the Landlord’s reasonable satisfaction;
	 
	5.7	 	to pay the Landlord on demand the amount of any increased insurance premium from time to time
payable in respect of the Premises as a result of carrying the Works out and to provide the
Landlord (without any delay) on completion of the Works with a written independent current
insurance (VAT inclusive) valuation of the Works for replacement purposes;
	 
	5.8	 	to keep the Landlord fully indemnified from all expenses, costs, claims, damages, losses,
demands and any other liability whatsoever in respect of the Works or anything done by the
Tenant pursuant to this licence;
	 
	 	 	at the expiry or sooner determination of the Lease (if and to the extent required by the
Landlord) at the Tenant’s own cost to reinstate and make good the Premises in a proper and
workmanlike manner to the same state and condition which existed before the Works were made
and to do so in accordance with drawings and specifications approved in writing by the
Landlord (acting reasonably) and in compliance with the provisions of paragraphs 5.1 to 5.4
inclusive as if reference in those paragraphs to the Works were references to the works of
reinstatement and making good;
	 
	5.9	 	to pay on demand an amount equal to the reasonable costs and disbursements (plus Value Added
Tax) of any surveyors architects and engineers of the Landlord in connection with any
reinstatement and making good referred to in paragraph 0;
	 
	6.	 	CDM REGULATIONS
	 
	6.1	 	In respect of the Works to which the CDM Regulations apply, the Tenant shall:

	 	6.1.1	 	fully comply, and procure full and lawful compliance with the CDM Regulations;
	 
	 	6.1.2	 	act as the only client in respect of the relevant Works and shall serve a declaration to that effect on the Health and Safety Executive pursuant to regulation 4 of the CDM Regulations and give a copy of it to the Landlord; and

3

 

	 	6.1.3	 	not derogate from its obligations under this clause nor from the declaration referred to in paragraph 6.1.2.

	6.2	 	The Tenant shall:

	 	6.2.1	 	maintain and make the Health and Safety file for the Premises and works carried out to them, required by the CDM Regulations (the “File”) available to the Landlord for inspection at all times;
	 
	 	6.2.2	 	on request provide copies of the whole or any part of the File to the Landlord; and
	 
	 	6.2.3	 	deliver the File to the Landlord at the end of the Term.

	7.	 	DECLARATIONS
	 
	 	 	It is agreed that:
	 
	7.1	 	the approval by the Landlord or its agents of the Works does not imply any warranty by or on
the Landlord’s behalf of the suitability or condition of the Premises for the Works and no
liability shall attach to the Landlord or its agents in respect of such approval;
	 
	7.2	 	the condition for re-entry contained in the Lease is exercisable if there is a breach of this
licence as well as in any of the events mentioned in that condition;
	 
	7.3	 	the Tenant’s and the Guarantor’s obligations and the conditions contained in the Lease which
now apply to the Premises shall continue to apply to them when and as altered as permitted by
this licence and shall extend to all additions made to the Premises in the course of the
Works;
	 
	7.4	 	any effect that the Works may have on the open market rent (or as otherwise defined in the
relevant provisions in the Lease) of the Premises will not be disregarded in determining the
revised rent in accordance with the provisions of the Lease;
	 
	8.	 	GUARANTOR’S OBLIGATION
	 
	 	 	The Guarantor agrees with the Landlord that if there is any breach of the Tenant’s
obligations in this licence:
	 
	8.1	 	the Guarantor shall remedy the breach and make good to the Landlord all losses, costs,
damages and expenses occasioned by it; and
	 
	8.2	 	the breach shall entitle the Landlord to enforce the Guarantor’s obligations in the Lease.
	 
	9.	 	EXCLUSION OF THIRD PARTY RIGHTS
	 
	 	 	No term of this licence is enforceable under the Contracts (Rights of Third Parties) Act
1999 by a person who is not a party to this licence.
	 
	10.	 	JURISDICTION
	 
	 	 	This licence is governed by and construed in accordance with English law and the English
courts have exclusive jurisdiction in relation to any dispute arising under or connected
with this licence and the Tenant and Guarantor irrevocably agree that any process may be
served on them by leaving a copy of the relevant document at the Premises and each party

4

 

	 	 	undertakes to notify the other in advance of any change from time to time of such address
for service and to maintain an appropriate address at all times.

IN WITNESS whereof this licence has been executed as a deed by the parties and is intended to be
and is delivered on the date first above written.

5

 

SCHEDULE

(Drawings and Specification)

	 	 	 	 	 
	Drawing Number

	 	Title
	 	Prepared by

	 	 	 	 	 	 	 
	Specifications
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	On Original
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED and DELIVERED as a DEED

	 	 	)	 	 	 
	by

	 	 	)	 	 	 
	as Attorney to THE STANDARD LIFE

	 	 	)	 	 	 
	ASSURANCE COMPANY in exercise of a

	 	 	)	 	 	 
	Power of Attorney under its seal dated

	 	 	)	 	 	 
	28 April 2005 in the presence of:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Witness:
	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	On Counterpart
	 	 	 	 	 	 
	SIGNED as a DEED by ELECTRONIC

	 	 	)	 	 	 
	ARTS LIMITED acting by two of

	 	 	)	 	 	 
	its directors/a director and its secretary

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Director
	 	 
	 
	 	 	 	 	 	 
	Director/Secretary
	 	 

6

 

	 	 	 	 	 	 	 
	SIGNED as a DEED by ELECTRONIC

	 	 	)	 	 	 
	ARTS INC acting by two of

	 	 	)	 	 	 
	its directors/a director and its secretary

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Director
	 	 
	 
	 	 	 	 	 	 
	Director/Secretary
	 	 

7

 

[TO BE TYPED ON THE HEADED NOTEPAPER OF ELECTRONIC ARTS INC]

[                              ] 2006

			
	To:	 	The Standard Life Assurance Company
30 Lothian Road
Edinburgh
EH1 2PH

Dear Sirs

Electronic Arts Inc, 209 Redwood Shares Parkway, Redwood City, California 94065 (“the Company”)

Onslow House, Guildford, Surrey (“the Premises”)

An Agreement for Lease and Lease of the Premises to be made between The Standard Life Assurance
Company (1) Electronic Arts Limited (2) and Electronic Arts Inc (3) (together known as “the
Documents”)

I act as legal counsel to the Company and am licensed to practice law only in the State of
California (the “Jurisdiction”).

	1	 	Request for legal opinion
	 
	 	 	I have been requested to give a legal opinion as to:
	 
	1.1	 	the validity of the intended execution of the Documents by the Company; and
	 
	1.2	 	the enforceability of the Documents under the laws of the Jurisdiction.
	 
	2	 	Examination of documents
	 
	 	 	I have examined the Documents for the purpose of giving this opinion.
	 
	3	 	Opinion re: the Law of the Jurisdiction
	 
	 	 	My opinion is limited to the laws of the Jurisdiction as at the date of this letter.
	 
	4	 	Assumptions made
	 
	 	 	I have assumed without enquiry that:
	 
	4.1	 	the Documents are within the capacity and powers of, and will be duly authorised, executed
and delivered by or on behalf of, each of the parties other than the Company;

 

 

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	4.2	 	the Documents will, when duly executed and delivered, constitute valid, binding and
enforceable obligations of the Company under English Law;
	 
	 	 	unless when executed there is anything apparent to the contrary or on the face of the
documents to displace such assumptions.
	 
	1	 	The Guarantor is duly incorporated and validly existing under the laws of the State of
Delaware and is duly admitted and licensed to do business in the State of California.
	 
	5	 	In my opinion:
	 
	5.1	 	Status
	 
	 	 	The Company is a Corporation, duly incorporated and validly existing under the laws of the
State of Delaware and is duly admitted and licensed to do business in the State of
California.
	 
	5.2	 	Enforceability of Documents

	 	5.2.1	 	The Documents, when duly executed by the Company, will constitute obligations
of the Company enforceable in the courts of the Jurisdiction.
	 
	 	 	 	In relation to due execution of the Documents by the Company, the constitution of
the Company provides that the duly appointed [President] [Vice President] [Senior
Corporate Officers] of the Company from time to time are empowered to execute
documents in the nature of the Documents on its behalf and [name] is such a duly
appointed and authorised corporate officer and the Documents will be duly executed
by the Company if they are signed by [him].
	 
	 	5.2.2	 	The entry into any of the Documents will not violate:

	 	5.2.2.1	 	any present law, regulation or order of or in the Jurisdiction; or
	 
	 	5.2.2.2	 	the constitutional documents of the Company.

	 	5.2.3	 	No authorisations, approvals, consents, licences, exemptions, filings,
registrations, notarisations or other requirements of government, judicial or public
bodies or authorities of or in the Jurisdiction are required or advisable in connection
with the entry into, performance, validity, and enforceability of the Documents.

 

 

 -3-

	 	5.2.4	 	No stamp, registration, documentary or similar tax is payable in respect of
the entry into, performance or enforcements of the Documents or to render them
admissible in evidence in the Jurisdiction.
	 
	 	5.2.5	 	No deduction or withholding, whether on account of tax or otherwise, will be
required from any payment by the Company under the Documents in the Jurisdiction.
	 
	 	5.2.6	 	Neither the Company nor its assets is entitled to immunity from suit,
execution, attachment or other legal process in the Jurisdiction.
	 
	 	5.2.7	 	So far as we are aware, no proceedings have been started or other steps taken
for the winding-up or dissolution of the Company or the appointment of a receiver,
trustee or similar officer of the Company of any of its assets or revenues.
	 
	 	5.2.8	 	The choice of the law of England and Wales as proper law of any of the
Documents will be valid and binding and is recognised and given effect to by the courts
of the Jurisdiction.
	 
	 	5.2.9	 	Any submission to jurisdiction by the Company and appointment of process
agents contained in any of the Documents is valid and binding on the Company and not
subject to revocation.
	 
	 	5.2.10	 	Any address within any part of the United Kingdom as an address for service of
proceedings in respect of any of the Documents is valid and binding on the Company.

	6	 	Qualifications to opinion
	 
	 	 	This opinion is subject to the following qualifications:
	 
	6.1	 	The effect of applicable bankruptcy, insolvency, reorganisation, moratorium or other similar
federal, state or international laws generally affecting the rights of creditors.
	 
	6.2	 	The application of general principles of equity, including, but not limited to, concepts of
reasonableness, good faith and fair dealing, equitable subordination and the possible
unavailability of specific performance or injunctive relief (regardless of whether such remedy
is considered in a proceeding in equity or at law).
	 
	6.3	 	The effect of statutes, common laws and judicial decisions (i) which, under certain
circumstances, exonerate a guarantor, if the creditor materially alters the original
obligation of the principal without the consent of the guarantor, if the landlord exercises
remedies for default that impair the subrogation or other rights of the

 

 

 -4-

	 	 	guarantor against the principal, or otherwise takes
action which materially prejudices the guarantor,
without obtaining consent of the guarantor, (ii)
relating to waivers or subordination by a guarantor
of its subrogation rights against the principal, its
contribution rights, or other common law and
statutory protections of a guarantor or (iii) which
limit the liability of the guarantor to be no greater
than the liability of the principal.
	 
	7	 	Who may rely on this opinion
	 
	 	 	This opinion is addressed to you solely for your benefit and solely for the purpose of the
Documents. It is not to be relied upon by anyone else or for any other purpose without our
express consent.
	 
	 	 	We are licensed to practice law only in the State of Delaware. Accordingly, this Opinion is
limited in all respects to applicable existing laws of the United States and the State of
Delaware and the general corporate law of the State of Delaware and we have made no inquiry
into, and express no opinion as to, the statutes, regulations, treaties or common laws of
any other nation or state, including, without limitation, those of England, if any,
applicable to our Opinions.
	 
	 	 	This Opinion is rendered based on the facts and circumstances, together with applicable law,
existing on the date of this Opinion and we express no opinion as to the effect on the
Documents of any statute, rule, regulation or other law enacted, of any court decision
rendered, or of the conduct of any persons, which occurs after the date of this Opinion.
Moreover, we assume no obligation to advise you or any other person of any change, whether
factual or legal, and whether or not material, that may hereafter arise or be brought to our
attention after the date hereof.

Yours faithfully

[                              ]

Electronic Arts Inc.

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