Document:

exv10w2

 

Exhibit E
to

Participation Agreement

Exhibit 10.2

GUARANTY

     This GUARANTY, dated as of July 16, 2001 (this “Guaranty”), is made by ELECTRONIC
ARTS, INC., a Delaware corporation (the “Guarantor”) in favor of FLATIRONS FUNDING, LIMITED
PARTNERSHIP, a Delaware limited partnership, Victory Receivables Corporation, a Delaware
corporation, The Bank of Tokyo-Mitsubushi, Ltd., New York Branch, the various Liquidity Banks which
are parties to the Participation Agreement (defined below), the various Tranche B Banks which are
parties to the Participation Agreement and KeyBank National Association, as Agent (collectively,
the “Beneficiaries”).

W I T N E S S E T H:

     WHEREAS, the Guarantor wishes to induce the Beneficiaries to enter into a synthetic lease
arrangement and, in such connection, execute the Participation Agreement, dated the date hereof
(the “Participation Agreement”), by and among Electronic Arts Redwood, Inc., a Delaware
corporation and a wholly owned subsidiary of the Guarantor (the “Lessee”), the Guarantor,
the New Partners, and the Beneficiaries; and

     WHEREAS, in connection with the aforementioned synthetic lease arrangement, the Beneficiaries
will further execute other Operative Documents (as defined in the Participation Agreement);

     WHEREAS, the execution and delivery of this Guaranty is a condition to the Beneficiaries’
execution of the Participation Agreement and other Operative Documents.

     NOW, THEREFORE, in order to induce the Beneficiaries to enter into and execute the
Participation Agreement and other Operative Documents and to consummate the transactions
contemplated thereby, the Guarantor hereby agrees as follows:

          SECTION 1. Definitions. Unless the context shall otherwise require, capitalized terms
used and not defined herein shall have the meanings assigned thereto in Appendix A to the
Participation Agreement for all purposes hereof, and the rules of interpretation set forth in
Appendix A to the Participation Agreement shall apply to this Agreement.

          SECTION 2. Guaranty.

          (a)     The Guarantor hereby irrevocably and unconditionally guarantees, as primary obligor, and
not as a surety, to the Beneficiaries the full, prompt and timely performance by the Lessee (in all
its capacities, including, but not limited to, its being the Lessee, the Indemnitor under the
Environmental Indemnity Agreement and the Administrator under the Administration Agreement) of all
obligations, covenants, warranties, undertakings, indemnities and conditions in or arising under
the Operative Documents. The foregoing guaranty includes
the irrevocable and unconditional guaranty of the full and prompt payments, and performance of
Liabilities (defined below) when due.

 

 

          As used in this Guaranty, “Liabilities” means, all of the following (in each case
howsoever created, arising or evidenced, whether direct or indirect, joint or several, absolute or
contingent, or now or hereafter existing, or due or to become due): all Basic Rent, Supplemental
Rent, Outstanding Lease Balance and all additional amounts and other sums at any time due and
owing, or required to be paid by the Lessee and all other obligations, agreements and covenants
required to be performed by the Lessee, in each case under and subject to the terms of the Master
Lease and the other Operative Documents (without giving effect to any modification, rejection,
termination, restructuring, discharge, characterization or recharacterization of any such document
in any bankruptcy or insolvency proceeding with respect to the Lessee other than as may be agreed
to in writing by all of the Beneficiaries). Further, “Liabilities” shall also include (i)
interest and yield on any such Liabilities as provided in the Operative Documents, whether accruing
before or after any bankruptcy or insolvency case or proceeding involving the Lessee, the Guarantor
or any other Person, and, if interest or yield on any portion of such obligations ceases to accrue
by operation of law by reason of the commencement of such case or proceeding, including such
interest and yield as would have accrued on any such portion of such obligations if such case or
proceeding had not commenced, and (ii) all expenses (including attorneys’ fees and legal expenses)
paid or incurred by any Beneficiary in collecting the Liabilities, or any part thereof, and in
enforcing this Guaranty.

          Each and every claim for Liabilities shall give rise to a separate claim and cause of action
hereunder.

          (b)     This Guaranty shall in all respects be an absolute and unconditional guaranty of payment
and performance of Liabilities when due (but not of the collection thereof) and shall remain in
full force and effect notwithstanding, without limitation, the dissolution of the Guarantor. This
Guaranty is in no way conditioned upon any effort or attempt to collect from the Lessee or upon any
other event or contingency. This Guaranty shall be binding upon and enforceable against the
Guarantor without regard to the validity or enforceability of the Operative Documents or of any
term thereof. If, for any reason, the Lessee shall fail or be unable to duly and punctually pay
any such amount when due under the Operative Documents, the Guarantor will forthwith pay, if not
already paid by the Lessee, the same immediately upon demand.

          (c)     In the event of the dissolution, bankruptcy or insolvency of the Lessee or the Guarantor,
or the inability or failure of the Lessee or the Guarantor to pay debts as they become due, or an
assignment by the Lessee or the Guarantor, for the benefit of creditors, or the commencement of any
case or proceeding in respect of the Lessee or the Guarantor, under any bankruptcy, insolvency or
similar laws, and if such event shall occur at a time when any of the Liabilities may not then be
due and payable, the Guarantor shall pay the Beneficiaries forthwith the full amount due each such
Beneficiary which would be payable hereunder by the Guarantor as if all Liabilities were then due
and payable.

          (d)     Any Beneficiary, may, from time to time at its discretion and without notice to the
Guarantor, take any or all of the following actions (the defenses against any such action are
hereby expressly waived by the Guarantor):

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                    (i)     retain or obtain a lien upon or a
security interest in any property to secure any of the
Liabilities or any obligation hereunder;

                    (ii)     retain or obtain the primary or
secondary obligation of any obligor or obligors, in
addition to the Guarantor, with respect to any of the Liabilities;

                    (iii)     extend or renew for one or more periods
(which may be longer or shorter than the
original period), alter or exchange any of the Liabilities, or release or compromise any obligation
of the Guarantor hereunder or any obligation of any nature of any other obligor (including, without
limitation, the Lessee) with respect to any of the Liabilities;

                    (iv)     release or fail to perfect its lien upon
or security interest in, or impair, surrender,
release or permit any substitution or exchange for, all or part of any property securing any of the
Liabilities or any obligation hereunder, or extend or renew for one or more periods (regardless of
whether longer than the original period) or release, compromise, alter or exchange any obligations
of any nature of any obligor with respect to any such property; and

                    (v)     resort to the Guarantor for payment of
any of the Liabilities, regardless of whether the
Lessor or any other Person shall have resorted to any property securing any of the Liabilities or
any obligation hereunder or shall have proceeded against any other obligor primarily or secondarily
obligated with respect to any of the Liabilities.

          SECTION 3. Guarantor’s Obligations Unconditional.

          (a)     The obligations of the Guarantor set forth herein constitute the full recourse obligations
of the Guarantor enforceable against it to the full extent of all its assets and properties,
notwithstanding any provision in the Participation Agreement or any other agreements limiting the
liability of the Lessee or any other Person, or any agreement by any Beneficiary to look for
payment with respect thereto, solely to collateral.

          (b)     The Guarantor’s obligations hereunder are independent of the obligations of the Lessee or
any other Person. Each Beneficiary may enforce any of its rights hereunder independently of any
other right or remedy that it may hold at any time with respect to the Liabilities or any security
or other guaranty therefor. The Guarantor’s obligations hereunder shall be absolute and
unconditional, shall not be subject to any counterclaim, setoff, deduction, diminution, abatement,
recoupment, suspension, deferment, reduction or defense (other than full and strict compliance by
the Guarantor with its obligations hereunder), whether based upon any claim that the Lessee, the
Guarantor, or any other Person may have against any Beneficiary or any other Person or otherwise,
and shall remain in full force and effect without regard to, and shall not be released, discharged
or in any way affected by, any circumstance or condition whatsoever (whether or not the Guarantor
or the Lessee shall have any knowledge or notice thereof), including without limitation:

                    (i)     any amendment, modification, addition,
deletion, supplement or renewal to or of or other
change in the Liabilities or any Operative Document or any instruments referred to therein, or any
other instrument or agreement applicable to any Operative Document or any party to such
instruments, made in accordance with the terms thereof, or to the Property, or any assignment,
mortgage or transfer thereof or of any interest therein, or any furnishing or

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acceptance of
additional security for, guaranty of or right of offset with respect to, any of the Liabilities; or
the failure of any security or the failure of any Beneficiary to perfect or insure any interest in
any collateral;

                    (ii)     any failure, omission or delay on the
part of the Lessee or any Beneficiary to conform or
comply with any term of any instrument or agreement referred to in clause (i) above;

                    (iii)     any waiver, consent, extension,
indulgence, compromise, release or other action or
inaction under or in respect of any instrument, agreement, guaranty, right of offset or security
referred to in clause (i) above or any obligation or liability of the Lessee or any
Beneficiary, or any exercise or non-exercise by any Beneficiary of any right, remedy, power or
privilege under or in respect of any such instrument, agreement, guaranty, right of offset or
security or any such obligation or liability;

                    (iv)     any bankruptcy, insolvency,
reorganization, arrangement, readjustment, composition,
liquidation or similar proceeding with respect to the Lessee, any Beneficiary or any other Person
or any of their respective properties or creditors, or any action taken by any trustee, receiver or
court in any such proceeding;

                    (v)     any limitation on the liability or
obligations of any Person under any Operative Document,
the Liabilities, any collateral security for the Liabilities, or any other guaranty of the
Liabilities or any discharge, termination, cancellation, frustration, irregularity, invalidity or
unenforceability, in whole or in part, of any of the foregoing or any other agreement, instrument,
guaranty or security referred to in clause (i) above or any term of any thereof;

                    (vi)     any defect in the title, compliance with
specifications, condition, design, operation or
fitness for use of, or any damage to or loss or destruction of, or any interruption or cessation in
the use of the Property by the Lessee or any other Person for any reason whatsoever (including any
governmental prohibition or restriction, condemnation, requisition, seizure or any other act on the
part of any governmental or military authority, or any act of God or of the public enemy)
regardless of the duration thereof (even though such duration would otherwise constitute a
frustration of a lease), whether or not resulting from accident and whether or not without fault on
the part of the Lessee or any other Person;

                    (vii)     any lien, charge or encumbrance on or
affecting the Guarantor’s or the Lessee’s
respective assets and properties;

                    (viii)     any merger or consolidation of the
Lessee or the Guarantor into or with any other
Person or any sale, lease or transfer of any of the assets of the Lessee or the Guarantor to any
other Person;

                    (ix)     any change in the ownership of any
shares of capital stock of the Lessee or the Guarantor
or any corporate change in the Lessee or the Guarantor;

                    (x)     any change in the name of the Guarantor,
the Lessee or any Beneficiary;

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                    (xi)     any claim as a result of other dealings
between any Beneficiary and the Guarantor or the
Lessor;

                    (xii)     the recovery of any judgment against
the Lessee, or by the levy of any writ or process
of execution under any such judgment, or by any action or proceeding taken by any Beneficiary under
any of the Operative Documents for the enforcement thereof, or hereof, or in the exercise of any
right or power given or conferred thereby, or hereby, except to the extent that such recovery, levy
or other action reduces the outstanding amount of the Liabilities;

                    (xiii)     the acceptance of any additional
security or other guaranty, the advance of additional
money to the Lessee or any other Person, the renewal or extension of any amounts guaranteed hereby,
or the sale, release, substitution or exchange of any security for the amounts guaranteed hereby;

                    (xiv)     any defense (other than the full and
indefeasible performance by the Lessee of its
obligations under the Operative Documents) whatsoever that the Lessee or any other Person might
have to the payment of any of the amounts or obligations guaranteed hereby or to the performance or
observance of any of the provisions of any of the Operative Documents, whether through the
satisfaction or purported satisfaction by the Lessee or any other Person of its debts due to any
cause such as bankruptcy, insolvency, receivership, merger, consolidation, reorganization,
dissolution, liquidation, winding-up or otherwise;

                    (xv)     impossibility or illegality of
performance on the part of the Lessee or any other Person
of its obligations under the Operative Documents; or

                    (xvi)     any other occurrence or circumstance
whatsoever, whether similar or dissimilar to the
foregoing, and any other circumstance that might otherwise constitute a legal or equitable defense
or discharge of the liabilities of a guarantor or surety or that might otherwise limit recourse
against the Guarantor.

          (c)     The Guarantor waives any and all notice of the creation, renewal, extension or accrual of
any of the Liabilities and notice of or proof of reliance by any Beneficiary upon this Guaranty or
acceptance of this Guaranty, and the Liabilities, and any of them, shall conclusively be deemed to
have been created, contracted or incurred in reliance upon this Guaranty. The Guarantor
unconditionally waives, to the extent permitted by law:

                    (i)     acceptance of this Guaranty and proof of
reliance by any Beneficiary hereon;

                    (ii)     notice of any of the matters referred to
in Section 3(b), or any right to consent or
assent to any thereof;

                    (iii)     all notices that may be required by
statute, rule of law or otherwise, now or hereafter
in effect, to preserve intact any rights against the Guarantor, including any demand, presentment,
protest, proof or notice of nonpayment under any Operative Document, and notice of default or any
failure on the part of the Lessee to perform and comply with any covenant, agreement, term or
condition of any Operative Document;

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                    (iv)     any right to the enforcement, assertion
or exercise against the Lessee of any right,
power, privilege or remedy conferred in any Operative Document or otherwise;

                    (v)     any requirement of diligence on the part
of any Person;

                    (vi)     any requirement of any Beneficiary to
take any action whatsoever, to exhaust any remedies
or to mitigate the damages resulting from a default by any Person under any Operative Document or
to proceed first against the Lessee;

                    (vii)     any notice of any sale, transfer or
other disposition by any Person of any right under,
title to or interest in any Operative Document or the Property;

                    (viii)     any and all benefits under Applicable
Law;

                    (ix)     presentation, demand for payment, or
protest, of any Liability (except such notices to
the Lessee as may be required under the Operative Documents);

                    (x)     any right to require any Beneficiary to
proceed first against the Lessee or against any
collateral, security or other support provided or to be provided by any Person in respect of any of
the Operative Documents; and

                    (xi)     any other circumstance that might
otherwise constitute a legal or equitable discharge,
release or defense of a guarantor or surety, or that might otherwise limit recourse against the
Guarantor.

          (d)     Without limiting the generality of this Guaranty, if an Event of Default under the Master
Lease shall have occurred and be continuing and any Beneficiary is prevented by applicable law from
exercising its remedies under the Operative Documents, such Beneficiary shall be entitled to
receive hereunder from the Guarantor, upon demand therefor, the sums which would have otherwise
been due from the Lessee had such remedies been exercised.

          (e)     In furtherance and not in limitation of the foregoing, the Guarantor hereby agrees upon
the bankruptcy or insolvency of the Lessee or the Guarantor, the Notes, the Tranche B Loan, the
Equity Investment and all instruments and indebtedness secured by or issued in reliance upon the
assignment to the Agent of the lease payments pursuant to the Master Lease shall be deemed to
constitute Liabilities pursuant to this Guaranty and the holders of any such instruments and
indebtedness shall be entitled to the rights of a Beneficiary hereunder with respect to such
claims.

          (f)     This Guaranty shall be automatically reinstated if, and to the extent that, for any
reason, any payment by or on behalf of the Lessee or otherwise is rescinded or must be
otherwise restored by any Beneficiary, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise.

          SECTION 4. Additional Waivers; Waiver of Subrogation.

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          (a)     Any Beneficiary may, at its election, exercise any right or remedy it may have against the
Lessee or any security held by the Lessor, including, without limitation, the right to foreclose
upon any such security by judicial or nonjudicial sale, without affecting or impairing in any way
the liability of the Guarantor hereunder, except to the extent the Liabilities have been paid, and
the Guarantor waives any defense arising out of the absence, impairment or loss of any right of
reimbursement, contribution or subrogation or any other right or remedy of the Guarantor against
the Lessee or any such security, whether resulting from such election by such Beneficiary or
otherwise. The Guarantor understands that the liability of the Lessee to the Beneficiary for the
Liabilities may be secured by real property and that the Guarantor shall be liable for the full
amount of its liability hereunder notwithstanding foreclosure on such real property by trustee sale
or any other reason impairing the Guarantor’s right to proceed against the Lessee.

          (b)     Guarantor hereby further expressly waives any defense arising by reason of any disability
or other defense of the Lessee or by reason of the cessation from any cause whatsoever of the
liability, either in whole or in part, of the Lessee to any Beneficiary for the Liabilities.

          (c)     The Guarantor hereby irrevocably waives, until all of the Liabilities have been fully and
indefeasibly paid and satisfied in full, any claim or other rights which it may now or hereafter
acquire against the Lessee arising from the existence, payment, performance or enforcement of the
Guarantor’s obligations under this Guaranty or any other Operative Document, including any right of
subrogation, reimbursement, exoneration, or indemnification, any right to participate in any claim
or remedy of any Beneficiary against the Lessee or any property or assets now or hereafter
constituting part of the Collateral, whether or not such claim, remedy or right arises in equity,
or under contract, statute or common law, including the right to take or receive from the Lessee
directly or indirectly, in cash or other property or by set-off or in any manner, payment or
security on account of such claim or other rights. If any amount shall be paid to the Guarantor in
violation of the preceding sentence and the Liabilities shall not have been indefeasibly paid in
cash, such amount shall be deemed to have been paid to the Guarantor for the benefit of, and held
in trust for, each Beneficiary, and shall forthwith be paid by the Guarantor to the Lessor to be
credited and applied pursuant to the terms of the Operative Documents. The Guarantor acknowledges
that it will receive direct and indirect benefits from the financing arrangements contemplated by
the Participation Agreement and that the waiver set forth in this paragraph is knowingly made in
contemplation of such benefits. The Guarantor hereby absolutely, unconditionally and irrevocably
waives and agrees not to assert or take advantage of any defense based upon an election of remedies
by the Beneficiaries, including an election to proceed by non-judicial rather than judicial
foreclosure, which destroys or impairs any right of subrogation of the Guarantor or the right of
the Guarantor to proceed against any Person for reimbursement or both.

          (d)     The Guarantor authorizes each Beneficiary, at its sole option, without notice or demand
and without affecting the liability of the Guarantor hereunder, to release and reconvey (with or
without the receipt of any consideration) any lien against any or all real or personal property
security for the Liabilities, to foreclose any or all deeds of trust, mortgages, security
agreements or other instruments or agreements by judicial or nonjudicial sale, and to exercise any
other remedy against the Lessee, any security or any other guarantor, all without

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affecting the
liability of the Guarantor hereunder. The Guarantor acknowledges that it has, in this Guaranty,
until all of the Liabilities have been fully and indefeasibly paid and satisfied in full, waived
any and all rights of subrogation and additionally expressly waives any defense to the recovery by
the Beneficiaries from the Guarantor of any deficiency after a nonjudicial sale, including any
defense arising as a result of any election of remedies by the Beneficiaries which limits or
destroys the Guarantor’s subrogation rights or the Guarantor’s right to proceed against the Lessee
for reimbursement (including any election by the Beneficiaries to exercise its rights under the
power of sale in any mortgage or deed of trust and any consequential loss by the Guarantor of the
right to recover any deficiency from the Lessee as described above). The Guarantor waives any
defenses or benefits that may be derived under applicable law, and all other suretyship defenses it
would otherwise have under Applicable Law. The Guarantor waives any right to receive notice of any
judicial or nonjudicial sale or foreclosure of any real property, and the failure of the Guarantor
to receive such notice shall not impair or affect the Guarantor’s liability hereunder.

          (e)
   To the extent applicable, the Guarantor hereby also
waives and agrees not to assert or take advantage of:

                    (i)     Any defense based upon any
Beneficiary’s election of any remedy against the Lessee,
including, without limitation, the defense to enforcement of this Guaranty (the “Gradsky” defense
based upon Union Bank v. Gradsky, 265 Cal. App. 2d 40 (1968) or subsequent cases)
which, absent this waiver, Guarantor would have by virtue of an election by Beneficiary to conduct
a non-judicial foreclosure sale of the Property, it being understood by the Guarantor that any such
non-judicial foreclosure sale will destroy, by operation of California Code of Civil Procedure
Section 580d, all rights of any party to a deficiency judgment against the Lessee, and, as a
consequence, will destroy all rights which the Guarantor would otherwise have (including, without
limitation, the right of subrogation, the right of reimbursement, and the right of contribution) to
proceed against the Lessee and to recover any such amount, and that Beneficiary could be otherwise
estopped from pursuing the Guarantor for a deficiency judgment after a non-judicial foreclosure
sale on the theory that a guarantor should be exonerated if a lender elects a remedy that
eliminates the guarantor’s subrogation, reimbursement or contribution rights;

                    (ii)     Any rights under California Code of
Civil Procedure Sections 580a and 726(b), which
provide, among other things: that a creditor must file a complaint for deficiency within three (3)
months of a nonjudicial foreclosure sale or judicial foreclosure sale, as applicable; that a fair
market value hearing must be held; and that the amount of the deficiency judgment shall be limited
to the amount by which the unpaid debt exceeds the fair market value of the security, but not more
than the amount by which the unpaid debt exceeds the sale price of the security; and

                    (iii)     Without limiting the generality of the
foregoing or any other provision hereof, the
Guarantor expressly waives any and all benefits which might otherwise be available to the Guarantor
under California Civil Code Sections 2809, 2810, 2819, 2839, 2845, 2849, 2850, 2899 and 3433 and
California Code of Civil Procedure Sections 580a, 580b, 580d and 726, or any of such sections.

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          (f)     In addition to all the other waivers agreed to and made by the Guarantor as set forth in
this Guaranty, and pursuant to the provisions of California Civil Code Section 2856, the Guarantor
hereby waives all rights and defenses that the Guarantor may have because the debtor’s debt is
secured by real property. This means, among other things:

                    (i)     The creditor may collect from the
Guarantor without first foreclosing on any real or
personal property collateral pledged by the debtor.

                    (ii)     If the creditor forecloses on any real
property collateral pledged by the debtor:

     (A) The amount of the debt may be reduced only by the price for which that collateral
is sold at the foreclosure sale, even if the collateral is worth more than the sale price.

     (B) The creditor may collect from the Guarantor even if the creditor, by foreclosing on
the real property collateral, has destroyed any right the Guarantor may have to collect from
the debtor.

          This is an unconditional and irrevocable waiver of any rights and defenses the Guarantor may
have because the debtor’s debt is secured by real property. These rights and defenses include, but
are not limited to, any rights or defenses based upon Section 580a, 580b, 580d, or 726 of the
California Code of Civil Procedure.

          The Guarantor further hereby waives all rights and defenses arising out of an election of
remedies by the creditor, even though that election of remedies, such as a nonjudicial foreclosure
with respect to security for a guaranteed obligation, has destroyed the Guarantor’s rights of
subrogation and reimbursement against the principal by the operation of Section 580d of the Code of
Civil Procedure or otherwise.

          (g)     The Guarantor assumes the responsibility for being and keeping informed of the financial
condition of the Lessee and of all other circumstances bearing upon the risk of nonpayment of the
Liabilities and agrees that none of the Beneficiaries shall have any duty to advise the Guarantor
of information regarding any condition or circumstance or any change in such condition or
circumstance. The Guarantor acknowledges that none of the Beneficiaries has not made any
representation to the Guarantor concerning the financial condition of the Lessee.

          SECTION 5. Reasonableness and Effect of Waivers. The Guarantor warrants and agrees
that each of the waivers set forth in this Guaranty is made with full knowledge (and with advice of
its counsel) of its significance.

          SECTION 6. Transfers by the Beneficiaries. Each Beneficiary may, from time to time,
whether before or after any discontinuance of this Guaranty, at its sole discretion and without
notice to the Guarantor, assign or transfer in accordance with the terms of the Operative Documents
any or all of the Liabilities or any interest therein; and, notwithstanding any such assignment or
transfer or any subsequent assignment or transfer thereof, such Liabilities shall be and remain
Liabilities for the purposes of this Guaranty, and each and every immediate and successive assignee
or transferee of any of the Liabilities or of any interest therein shall, to the

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extent of such
assignee’s or transferee’s interest in the Liabilities, be entitled to the benefits of this
Guaranty to the same extent as if such assignee or transferee were the original Beneficiary.

          SECTION 7. No Waiver by the Beneficiaries. No delay in the exercise of any right or
remedy shall operate as a waiver thereof, and no single or partial exercise of any right or remedy
shall preclude other or further exercise thereof or the exercise of any other right or remedy; nor
shall any modification or waiver of any of the provisions of this Guaranty be binding upon any
Beneficiary except as expressly set forth in a writing duly signed and delivered on its behalf. No
action permitted hereunder shall in any way affect or impair any Beneficiary’s rights or the
Guarantor’s obligations under this Guaranty. For the purposes of this Guaranty, Liabilities shall
include all of the obligations described in the definition thereof, notwithstanding any right or
power of the Lessee or anyone else to assert any claim or defense as to the invalidity or
unenforceability of any such obligation, and no such claim or defense shall affect or impair the
obligations of the Guarantor hereunder. The Guarantor’s obligations under this Guaranty shall be
absolute and unconditional irrespective of any circumstance whatsoever which might constitute a
legal or equitable discharge or defense of the Guarantor. The Guarantor hereby acknowledges that
there are no conditions to the effectiveness of this Guaranty.

          SECTION 8. Successors and Assigns. This Guaranty shall be binding upon the Guarantor
and upon the Guarantor’s successors and assigns and all references herein to the Guarantor shall be
deemed to include any successor or successors, whether immediate or remote, to such Person. The
Guarantor may not assign its obligations under this Guaranty. This Guaranty shall inure to the
benefit of the Beneficiaries and their respective successors and assigns, whether or not an express
assignment of rights is made hereunder.

          SECTION 9. Severability. Wherever possible, each provision of this Guaranty shall be
interpreted in such manner as to be effective and valid under Applicable Laws, but if any provision
of this Guaranty shall be prohibited by or invalid thereunder, such provision shall be ineffective
only to the extent of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.

          SECTION 10. SUBMISSION TO JURISDICTION; SERVICE OF PROCESS. THE GUARANTOR: (A)
SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTY, OR
FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL
JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA, THE COURTS OF THE UNITED STATES OF AMERICA
FOR THE NORTHERN DISTRICT OF CALIFORNIA, AND APPELLATE COURTS FROM ANY THEREOF; (B) CONSENTS THAT
ANY SUCH ACTION OR PROCEEDINGS MAY BE BROUGHT TO SUCH COURTS, AND WAIVES ANY OBJECTION THAT IT MAY
NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH
ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE
SAME; (C) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY
MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL),
POSTAGE PREPAID, TO IT AT ITS ADDRESS SET FORTH BELOW OR AT SUCH OTHER ADDRESS OF WHICH

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THE OTHER
PARTIES TO THE PARTICIPATION AGREEMENT SHALL HAVE BEEN NOTIFIED PURSUANT TO THE RELEVANT PROVISIONS
OF THE PARTICIPATION AGREEMENT; AND (D) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT
SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE
BENEFICIARIES TO SUE IN ANY OTHER JURISDICTION.

          SECTION 11. Notices. All notices, demands, declarations, consents, directions,
approvals, instructions, requests and other communications required or permitted by this Guaranty
shall be in writing and shall be deemed to have been duly given when addressed to the appropriate
Person and delivered in the manner and to the addresses specified in the Participation Agreement.

          SECTION 12. GOVERNING LAW; WAIVER OF JURY TRIAL. THIS GUARANTY SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO CONFLICT OF
LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH
STATE. THE GUARANTOR HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS GUARANTY OR UNDER ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
ARISING FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS GUARANTY, AND AGREES THAT ANY SUCH
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

[Signature Page Follows]

11

 

          IN WITNESS WHEREOF, the undersigned has caused this Guaranty to be executed and delivered as
of the date first written above.

	 	 	 	 	 
	 	ELECTRONIC ARTS, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	David L. Carbone 	 
	 	 	Title:  	Senior Vice President 	 
	 

12exv10w3

 

Exhibit 10.3

EXECUTION COPY

FIRST AMENDMENT TO PARTICIPATION AGREEMENT

     THIS FIRST AMENDMENT TO PARTICIPATION AGREEMENT (this
“Amendment”), dated as of May 13, 2002, is entered into by and
among:

     (1) ELECTRONIC ARTS REDWOOD, INC., a Delaware corporation (the
“Lessee”) ;

     (2) ELECTRONIC ARTS, INC., a Delaware corporation (the
“Guarantor”); 

     (3) FLATIRONS FUNDING, LIMITED PARTNERSHIP, a Delaware limited
partnership (the “Lessor”);

     (4) VICTORY RECEIVABLES CORPORATION, a Delaware corporation,
(the “Note Purchaser”);

     (5) THE BANK OF TOKYO-MITSUBISHI, LTD., NEW YORK BRANCH, as the
agent for the Note Purchaser and the administrative agent for the
Liquidity Banks (in such capacities, together with its permitted
successors and assigns, the “Conduit Agent” );

     (6) Each of the financial institutions denoted as
“Liquidity Banks” which are parties to the Participation Agreement
(referred to in Recital A below) and the Liquidity Documentation from
time to time (referred to in Recital B below) (such financial
institutions to be referred to collectively as the “Liquidity
Banks”);

     (7) KEYBANK NATIONAL ASSOCIATION, as the Tranche B Bank under
the Participation Agreement (in such capacity, the “Tranche B
Bank”);

     (8) KEYBANK NATIONAL ASSOCIATION, as the agent for the Lessor,
the Note Purchaser, the Conduit Agent, the Liquidity Banks and the
Tranche B Bank (in such capacity, the “Agent”);

     (9) SELCO SERVICE CORPORATION, and SELCO REDWOOD, LLC (the
“New Partners”); and

     (10) THE BANK OF NOVA SCOTIA, as a new liquidity bank
(“Scotia Bank”) and as documentation agent (in such capacity,
the “Documentation Agent”).

RECITALS

     A. The Lessee, the Guarantor, the Lessor, SELCO Service
Corporation, SELCO Redwood, LLC, the Note Purchaser, the Conduit Agent,
the Liquidity Banks, the Tranche B

1

 

Bank and the Agent are parties to that certain Participation
Agreement dated as of July 16, 2001 (the “Participation
Agreement”). 

     B. In connection with the Participation Agreement, (i) the Lessor
executed that certain Promissory Note dated July 16, 2001, payable to
the order of Auer & Co. f/b/o the Note Purchaser (the “Note”),
(ii) the Lessee, the Guarantor, the Lessor, SELCO Service Corporation,
SELCO Redwood, LLC, the Note Purchaser and the Conduit Agent executed
that certain Note Purchase Agreement dated as of July 16, 2001 (the
“Note Purchase Agreement”), (iii) the Note Purchaser, the
Liquidity Banks, Bankers Trust Company, and Conduit Agent executed that
Liquidity Agreement dated as of July 16, 2001 (the “Liquidity
Agreement”), and (iv) Bankers Trust Company, the Note Purchaser and
the Liquidity Banks executed that certain Asset Purchase Agreement dated
as of July 16,2001 (the “Asset Purchase Agreement”) (the
Liquidity Agreement and the Asset Purchase Agreement, collectively, the
“Liquidity Documentation”).

     C. Scotia Bank desires to become a Liquidity Bank and the
Documentation Agent under the Participation Agreement, the Liquidity
Documentation and the other applicable Operative Documents.

     D. The Lessor desires to prepay in full to the Tranche B Bank the
Tranche B Loan funded pursuant to the Participation Agreement and the
other Operative Documents, and all of the parties hereto are willing to
consent to such prepayment of the Tranche B Loan by the Lessor to the
Tranche B Bank.

     E. KeyBank National Association, as a Liquidity Bank, desires to
reduce its Commitment under the Liquidity Documentation and to fund a
new “Residual Risk Tranche” among the Liquidity Banks.

     F. To effectuate such matters, the parties hereto now wish to amend
the Participation Agreement, the Liquidity Documentation, and certain other
Operative Documents.

     G. The parties hereto are willing to so amend the Participation
Agreement, the Liquidity Documentation and certain other Operative
Documents upon the terms and subject to the conditions set forth below.

AGREEMENT

     NOW, THEREFORE, in consideration of the above recitals and for
other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Lessee, the Guarantor, the Lessor, the Note
Purchaser, the Conduit Agent, the Liquidity Banks, the Tranche B Bank, the
Agent, the New Partners, Scotia Bank and the Documentation Agent hereby
agree as follows:

     1. Definitions. Interpretation. All capitalized terms defined
above and elsewhere in this Amendment shall be used herein as so defined.
Unless otherwise defined herein, all other capitalized terms used herein
shall have the respective meanings given to those terms in the
Participation Agreement, as amended by this Amendment. The rules of
construction set forth in Appendix A of the Participation
Agreement shall, to the extent not inconsistent with the terms of this
Amendment, apply to this Amendment and are hereby incorporated by
reference.

2

 

     2. Amendment to Participation Agreement. Subject to
the satisfaction of the conditions set forth in Paragraph 7
below, the Participation Agreement is hereby amended as follows:

     (a) Section 3.1(b) is hereby amended to read in its
entirety as follows:

     (b) The maximum aggregate principal amount outstanding
under the Notes at any time shall not exceed $132,279,411.18
(such amount, the “Aggregate Note Purchase
Commitment”); provided, however, in the event that
additional allocated portions of the “Commitments” (as defined
in the Liquidity Agreement) of the Liquidity Banks are obtained
from time to time in accordance with Section 3.7
hereof, the Aggregate Note Purchase Commitment shall increase
to an amount calculated by dividing the then aggregate
Liquidity Bank “Commitments” by 1.02 (one and two
one-hundredths); and, provided, further, that
in no event shall the Aggregate Note Purchase Commitment exceed
$134,925,000, which shall consist of two portions, one portion
in the amount of$123,891,514.07 (such amount, the
“Non-Residual Risk Tranche”) and the second portion in
the amount of $11,033,485.93 (such amount, the “Residual
Risk Tranche”). In the event that any such increase in the
Liquidity Bank “Commitments” are effected by the inclusion of
an additional Liquidity Bank, each such additional Liquidity
Bank must be an “Eligible Assignee” under, and comply with the
provisions with respect to assignee “Banks” and “Purchasers”
in, both the Liquidity Agreement and the Asset Purchase
Agreement, respectively. Whether or not any such increase in
the Liquidity Bank “Commitments” are effected by an increase in
the allocated portion of the “Commitments” of existing
Liquidity Banks, appropriate amendments to the schedules to the
Liquidity Documentation to reflect the changed percentages of
the Liquidity Banks shall be agreed to by the Liquidity Banks
as one of the conditions to the increase. For accounting
purposes, all funds advanced to the Lessor under the Notes
pursuant to the Note Purchase Agreement shall constitute debt.

     (b) Section 3.7 is hereby amended to read in its
entirety as follows:

     Section 3.7 Commitment of the Liquidity
Banks. Subject to the terms and conditions set forth herein
and in the other Operative Documents, (a) the Liquidity Banks
shall severally, but not jointly, make available Loans (as
defined in the Liquidity Agreement) in an aggregate principal
amount not to exceed (x) as of the Initial Funding Date,
$107,425,000 and (y) at any time during which the allocated
portion of the “Commitment” (as defined in the Liquidity
Agreement) of one or more existing Liquidity Banks shall have
been increased and/or one or additional financial institutions
shall have agreed to become a Liquidity Bank in accordance with
Section 15.5 hereof, $134,925,000 (consisting of the Non
Residual Risk Tranche and the Residual Risk Tranche),
plus all accrued discount on all related Commercial
Paper (as such amount may be adjusted pursuant to the Liquidity
Agreement) less the aggregate principal amount of
outstanding Percentage Interest purchased by the Liquidity
Banks pursuant to the Asset Purchase Agreement, and (b) each of
the Liquidity Banks shall, at the times set

3

 

forth thereby, duly perform their respective obligations
set forth herein and under the applicable Operative Documents
to which such Person is a party.

     (c) Section 11.4 is hereby amended to read in its
entirety as follows:

     Section 11.4 Application of Funds Upon Exercise of
the Remarketing Option. If the Lessee shall have exercised
the Remarketing Option, moneys received by the Lessor (or by
the Agent on behalf of the Lessor) shall be paid to the Person
or Persons entitled thereto after being applied as follows:
first to repay, in full, the Non-Residual Risk Tranche
of the Notes (together with any other amounts payable to the
Note Purchaser or the Liquidity Banks holding such interest,
as applicable, pursuant to the Operative Documents), ratably
in accordance with their respective interests, second,
if any amounts remain, to repay, in full, the Residual Risk
Tranche of the Notes (together with any other amounts payable
to the Note Purchaser or the Liquidity Banks holding such
interest, as applicable, pursuant to the Operative Documents),
ratably in accordance with their respective interests,
third, if any amounts remain, to repay, in full, the
Tranche B Loan (together with any other amounts payable to the
Tranche B Banks pursuant to the Operative Documents), ratably
in accordance with their respective interests, fourth,
if any amounts remain, to redeem, in full, the Equity
Investment (together with any other amounts payable to the
Lessor pursuant to the Operative Documents), and
fifth, if any amounts remain, to the Lessee or any
other Person as the Lessee’s and/or such Person’s interest may
appear.

     (d) The last full paragraph of Section 15.5 is hereby amended
to read in its entirety as follows:

Notwithstanding the foregoing or any other provision to the
contrary contained in this Participation Agreement or the other
Operative Documents, the parties hereto acknowledge and agree
that the aggregate “Commitments” (as defined in the Liquidity
Agreement) of the Liquidity Banks may be increased without the
consent of the Transaction Parties (other than the Note
Purchaser) provided that (a) the Note Purchaser
agrees to such amendments as may be necessary to the Liquidity
Documents in order to allow for such increase, (b) the maximum
aggregate “Commitments” of the Liquidity Banks after giving
effect to any such increase does not exceed $134,925,000
plus all accrued discount on all related Commercial
Paper (as such amount may be adjusted pursuant to the Liquidity
Agreement) less the aggregate principal amount of
outstanding Percentage Interest purchased by the Liquidity Bank
pursuant to the Asset Purchase Agreement and (c) no allocated
portion (restricted to the dollar amount) of the “Commitment”
of any Liquidity Bank may be increased without the prior
express written consent of such Liquidity Bank.

     (e) Appendix A of the Participation Agreement is hereby
amended by adding thereto in alphabetical order the following defined
term:

4

 

     “Documentation Agent” means The Bank of Nova
Scotia, and its permitted successors and assigns.”

     (f) Schedule I of the Participation Agreement is hereby
amended to add the following contact, address and wire account
information for Scotia Bank:

SCOTIA BANK 

Contact information for notices:

For credit related matters:

Ed Kofman

Scotia Capital

580 California Street, Suite 2100

San Francisco, CA 94104

Tel.: (415) 616-4152

Fax: (415) 397-0791

For operational, billing and administrative related matters:

Lily Hsieh

Scotiabanc Inc.

600 Peachtree Street, NE, Suite 2700

Atlanta, GA 30308

Tel.: (404) 877-1523

Fax: (404) 888-8998

Wiring Instructions:

The Bank of Nova Scotia

New York Agency

1 Liberty Plaza

New York, NY

ABA #026002532

Credit Account #0610135

BNS San Francisco -Loan Service

Reference -Victory Receivables Corp. (Electronic Arts) deal 2

     3. Repayment of Tranche B Loan and Issuance of New Promissory
Note. On the Effective Date (as defined below), the Lessee shall pay
any accrued and unpaid interest due under the Tranche B Loan to Lessor,
and Lessor shall use a portion of the proceeds from the issuance of the
New Promissory Note (as defined below) to repay to the Tranche B Bank the
Tranche B Loan in full, such that on the Effective Date, the amount of
the Tranche B Loan shall equal $-0-. Each party to this Amendment shall
evidence its acknowledgement and consent to such repayment of the Tranche
B Loan by its execution of this Amendment. The New Promissory Note shall
constitute a “Note” under the Operative Documents and the outstanding

5

 

Principal amount of the New Promissory Note owing at any time shall
be included in the Outstanding Lease Balance as determined under the
Operative Documents.

     4. Addition of Scotia Bank as a Liquidity Bank. On or before
the Effective Date, Scotia Bank shall be added as a Liquidity Bank and as
Documentation Agent under the Participation Agreement and shall execute
this Amendment, amendments to the Liquidity Documentation and such other
necessary Operative Documents to evidence Scotia Bank’s Commitment (as
defined in the Liquidity Agreement) under the Liquidity Documentation of
Twenty Million Dollars ($20,000,000).

     5. Reduction of KeyBank’s Non-Residual Risk Tranche Commitment
as a Liquidity Bank and Acceptance of Residual Risk Tranche
Commitment. On or before the Effective Date, KeyBank, in its capacity
as a Liquidity Bank, shall execute amendments to the Liquidity
Documentation and such other necessary Operative Documents to evidence
KeyBank’s reduction of its Non-Residual Risk Tranche portion of its
Commitment under the Liquidity Documentation from $17,425,000 down to
$13,891,514.07, and its acceptance of the Residual Risk Tranche portion
of its Commitment under the Liquidity Documentation in the amount of
$11,033,485.93.

     6. Representations and Warranties. The Lessee hereby
represents and warrants to the Lessor Parties that the following are true
and correct on the date of this Amendment and that, after giving effect to
the amendments set forth in Paragraphs 2, 3, 4 and 5 above, the
following will be true and correct on the Effective Date:

     (a) The representations and warranties of the Guarantor and the
Lessee set forth in Section 7.1 of the Participation
Agreement and in the other Operative Documents are true and
correct in all material respects (except for representations and
warranties expressly made as of a specific date, which shall be true
as of such date);

     (b) No Default or Event of Default has occurred and is
continuing; and

     (c) All of the Operative Documents are in full force and effect.

(Without limiting the scope of the term “Operative Documents,” the Lessee
and the Guarantor each expressly acknowledges in making the
representations and warranties set forth in this Paragraph 6 that,
on and after the date hereof, such term includes this Amendment.)

     7. Effective Date. The amendment effected by Paragraph
2 above shall become effective on May 13, 2002 (the “Effective
Date”), subject to receipt by Note Purchaser, Agent, and the Liquidity
Banks on or prior to the Effective Date of the following, each in form and
substance reasonably satisfactory to Note Purchaser, Agent, and the
Liquidity Banks:

     (a) This Amendment duly executed by the Lessee, the Guarantor,
the Lessor, the Note Purchaser, the Conduit Agent, each of the
Liquidity Banks, the Tranche B Bank, the Agent and Scotia Bank;

6

 

     (b) New Promissory Note made by the Lessor and payable to
the Note Purchaser in the principal amount of $132,279,411.18, in
the form attached hereto as Exhibit A (the “New
Promissory Note”);

     (c) First Amendment to Note Purchase Agreement executed by the
Note Purchaser, the Lessee, the Guarantor, the Conduit Agent, SELCO
Service Corporation, SELCO Redwood, LLC, and the Lessor, in the
form attached hereto as Exhibit B (the “First
Amendment to Note Purchase Agreement”);

     (d) Amended and Restated Liquidity Agreement executed by the
Note Purchaser, the Liquidity Banks, Bankers Trust Company, Conduit
Agent, and KeyBank National Association, as the Residual Risk
Tranche Liquidity Provider, in the form attached hereto as
Exhibit C (the “Amended Liquidity Agreement”);

     (e) Amended and Restated Asset Purchase Agreement executed by
Bankers Trust Company, the Note Purchaser, and the Liquidity Banks,
in the form attached hereto as Exhibit D (the “Amended
Asset Purchase Agreement”);

     (f) A letter in the form attached hereto as Exhibit E,
dated the Effective Date and duly executed by the Guarantor;

     (g) Payment by Lessee of all fees and expenses of Lessor’s, Note
Purchaser’s, and Agent’s counsels incurred in connection with the
preparation and negotiation of the documents identified in clauses
(a) through (f) above and the consummation of the transactions
contemplated thereby; and

     (h) Such other evidence as the Note Purchaser, the Conduit
Agent, any of the Liquidity Banks, the Tranche B Bank, and the Agent
may reasonably request to establish the accuracy and completeness of
the representations and warranties and the compliance with the terms
and conditions contained in this Amendment and the other Operative
Documents.

     8. Effect of this Amendment. On and after the Effective
Date, each reference in the Participation Agreement and the other
Operative Documents to the Participation Agreement shall mean the
Participation Agreement as amended hereby. On and after the Effective
Date, the New Promissory Note, the First Amendment to Note Purchase
Agreement, the Amended Liquidity Agreement, and the Amended Asset
Purchase Agreement shall each constitute an Operative Document. Except as
specifically amended above, (a) the Participation Agreement and the other
Operative Documents shall remain in full force and effect and are hereby
ratified and confirmed and (b) the execution, delivery and effectiveness
of this Amendment shall not, except as expressly provided herein, operate
as a waiver of any right, power, or remedy of the Lessor Parties, nor
constitute a waiver of any provision of the Participation Agreement or
any other Operative Document.

     9. Miscellaneous.

7

 

     (a) Counterparts. This Amendment may be executed in
any number of identical counterparts, any set of which signed by all
the parties hereto shall be deemed to constitute a complete,
executed original for all purposes.

     (b) Headings. Headings in this Amendment are for
convenience of reference only and are not part of the substance
hereof.

     (c) Governing Law. This Amendment shall be governed by
and construed in accordance with the laws of the State of California
without reference to conflicts of law rules.

     (d) Return of Original Promissory Note. Promptly
following the Effective Date, the Note Purchaser shall return the
original Promissory Note dated July 16, 2001 made by the Lessor in
the original amount of $105,318,627.45, marked cancelled, to the
Agent.

[signature page follows]

8

 

     IN WITNESS WHEREOF, the Lessee, the Guarantor, the Lessor, the
Note Purchaser, the Conduit Agent, the Liquidity Banks, the Tranche B
Bank, the Agent, the New Partners, Scotia Bank and the Documentation Agent
have caused this Amendment to be executed as of the day and year first
above written.

	 	 	 	 	 
	 	 	ELECTRONIC ARTS REDWOOD, INC.,

as the Lessee
	 
	 	 	 	 
	 

	 	By: 	 	/s/ Khuyen Dang
	 

	 	 	 	 
	 	 	Name:	 	Khuyen Dang
	 	 	Title:	 	Chief Financial Officer

9

 

	 	 	 	 	 
	 	 	ELECTRONIC ARTS, INC.,

as the Guarantor
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David L. Carbone
	 

	 	 	 	 
	 

	 	Name:
	 	David L.Carbone
	 

	 	Title:
	 	Senior Vice President — Finance

10

 

	 	 	 	 	 	 	 	 	 
	 	 	FLATIRONS FUNDING, LIMITED

PARTNERSHIP, as the Lessor
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	SELCO REDWOOD, LLC, its General

Partner
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	SELCO Service Corporation, an

Ohio corporation doing business

in California as Ohio SELCO

Service Corporation, its sole

member
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	/s/ Donald C. Davis
	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Donald C. Davis
	 

	 	 	 	 	 	Title:
	 	Vice President

	 	 	 	 	 
	 	 	SELCO SERVICE CORPORATION, doing

business in California as Ohio

SELCO Service Corporation, as a New

Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Donald Davis
	 

	 	 	 	 
	 	 	Name:	 	Donald Davis
	 	 	Title:	 	Vice President
	 
	 	 	 	 
	 	 	SELCO REDWOOD LLC, as a New

Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Donald David
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

11

 

	 	 	 	 	 
	 	 	VICTORY RECEIVABLES CORPORATION,

as the Note Purchaser
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Karen A. Granquist
	 

	 	 	 	 
	 

	 	Name:
	 	Karen A. Granquist
	 

	 	Title:
	 	Secretary

12

 

	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION,

as the Agent
	 
	 

	 	By:
	 	/s/ Julien Michaels
	 

	 	 	 	 
	 

	 	Name:
	 	Julien Michaels
	 

	 	Title:
	 	Vice President

13

 

	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI, LTD.,

NEW YORK BRANCH, as the Conduit Agent
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Koji Baba
	 

	 	 	 	 
	 	 	Name:	 	Koji Baba
	 	 	Title:	 	Senior Vice President & Group Head

14

 

	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION,

as a Liquidity Bank
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Julien Michaels
	 

	 	 	 	 
	 

	 	Name:
	 	Julien Michaels
	 

	 	Title:
	 	Vice President

15

 

	 	 	 	 	 
	 	 	FLEET NATIONAL BANK,

as a Liquidity Bank
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Greg Roux
	 

	 	 	 	 
	 

	 	Name:
	 	Greg Roux
	 

	 	Title:
	 	Director

16

 

	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL

ASSOCIATION,

as a Liquidity Bank
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Jillian Richardson
	 

	 	 	 	 
	 

	 	Name:
	 	Jillian Richardson
	 

	 	Title:
	 	Vice President

17

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK.

as a Liquidity Bank
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Anne Biancardi
	 

	 	 	 	 
	 

	 	Name:
	 	Anne Biancardi
	 

	 	Title:
	 	Vice President

18

 

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION,

as a Liquidity Bank
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel W. Stevens
	 

	 	 	 	 
	 

	 	Name:
	 	Daniel W. Stevens
	 

	 	Title:
	 	Vice President

19

 

	 	 	 	 	 	 	 
	 	 	BNP PARIBAS,

as a Liquidity Bank	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert Mimaki
	 	/s/ Richard Ong Pho
	 	 	 	 	 
	 

	 	Name:
	 	Robert Mimaki
	 	Richard Ong Pho
	 

	 	Title:
	 	Vice President
	 	Associate

20

 

	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION,

as a Tranche B Bank
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Julien Michaels
	 

	 	 	 	 
	 	 	Name:	 	Julien Michaels
	 	 	Title:	 	Vice President

21

 

	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA,

as a Liquidity Bank and as Documentation Agent
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ed Kofman
	 

	 	 	 	 
	 	 	Name:	 	Ed Kofman
	 	 	Title:	 	Director

22

 

EXHIBIT A

NEW PROMISORY NOTE

[See Attached]

23

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