LEASE
THIS LEASE, (hereinafter referred to as "Lease"), is made as of this 1st day of April, 1999, by and between LOUISVILLE COMMERCE REALTY CORPORATION, a Delaware corporation, or assigns (hereinafter referred to as "Landlord") and ELECTRONIC ARTS, INC., a Delaware corporation (hereinafter referred to as "Tenant").
WITNESSETH:
WHEREAS, Landlord and Tenant desire to create a leasehold estate in favor of Tenant in the Premises (as hereinafter defined).
NOW, THEREFORE, in consideration of the premises, and of the covenants and agreements herein contained, the parties hereto agree as follows:
1. PREMISES. Effective as of the Commencement Date, Landlord shall lease unto Tenant and Tenant shall lease from Landlord approximately 250,000rentable square feet as outlined in Exhibit A ("Premises"), on the east side of a building of approximately 400,000 square feet ("Building"), which Building is located on a parcel of land ("Property") as shown on Exhibit A, and that machinery and equipment installed in and upon the Premises by Landlord, together with all additions and accessions thereto, substitutions therefor and replacements thereof permitted by this Lease (collectively, the "Equipment"). The exact square footage of the Premises shall be determined by the Landlord's architect.
Landlord shall be responsible for constructing, at its expense, the "Building Shell" as described in Exhibit B hereto, and Tenant shall, at Tenant's sole expense (subject to Paragraph 8 (b) below), and upon the terms set forth herein, make improvements to the Premises (the "Tenant Improvements") specified by Tenant as generally depicted in a preliminary space plan (the "Preliminary Space Plan") to be submitted to Landlord.
2. COMMENCEMENT DATE AND LEASE TERM. The initial term of this Leases hall be for a period of five (5) years (hereafter referred to as "Term"), commencing on the "Commencement Date." The Commencement Date shall be the earlier of (i) June 15, 1999, or (ii) the date Tenant commences beneficial use of the Premises, determined as set forth herein below. Any use of the Premises by Tenant prior to the Commencement Date shall be subject to the terms and conditions of this Lease (except the payment of Rent). Tenant shall be deemed to have commenced beneficial use of the Premises when Tenant begins to move furniture, furnishings, or inventory into the Premises or any portion thereof. In no event shall Landlord be liable for Tenant's failure to complete construction by June 15, 1999. Tenant shall use reasonable efforts to keep Landlord informed of the progress of construction. The initial twelve (12) month period after the Commencement Date and each successive twelve (12) month period thereafter during the initial Term and any renewal periods shall be hereinafter referred to as a "Lease Year." If the Commencement Date is not the first day of a month, then the Term shall be the period set forth above plus the partial month in which the Commencement Date occurs.
3. RENT. As rent for the Premises (all of which is hereinafter referred to collectively as "Rent"), Tenant shall pay to Landlord all of the following:
(a) Base Rent. Tenant shall pay, without offset, demand or counterclaim, as base rent (hereafter referred to as the "Base Rent") for each Lease Year the sums identified on the attached Exhibit C, Rent Schedule. The monthly installments shall be payable in advance on the first day of each and every month during the said term at the office of Landlord c/o J. P. Morgan Investment Management, Inc., 522 Fifth Avenue at 44th Street, New York, New York 10036, or at such other place as Landlord may hereafter designate in writing. Rent checks are to be made payable to Landlord, or such other person, firm or corporation as Landlord may hereafter designate in writing, except that the first such installment, in the amount of Twenty-Seven Thousand Dollars ($27,000) shall be due contemporaneously with the execution of this Lease.
(b) Intentionally Omitted.
(c) Intentionally Omitted.
(d) Intentionally Omitted.
(e) Tax on Lease. Tenant's pro rata share (based on the Premises) of any federal, state or local tax (including gross receipts tax) assessment, levy or other charge (other than any income tax or real property tax) (hereinafter collectively referred to as "Tax") if now or hereafter directly or indirectly upon (a) Landlord with respect to this Lease or the value thereof, (b) Tenant's use or occupancy of the Premises, or (c) the Base Rent or any other sum payable under this Lease, shall be paid by Tenant as Additional Rent.
Landlord shall annually notify Tenant of the amount which Landlord estimates will be the Tax for each tax year, and Tenant shall pay such amount in equal monthly installments in advance on or before the first day of each of the twelve (12) months after the date of such notice. Landlord shall annually submit to Tenant a statement showing Tenant's pro rata share of the actual Tax for the current tax year, the amount thereof theretofore paid by Tenant, and the amount of the resulting balance due thereon or overpayment thereof. Such balance due shall be paid by Tenant, without interest, within thirty (30) days after the date of such statement. Official tax bills rendered by the taxing authority shall be presumptive evidence of the actual amount of Tax. Tenant shall have the right to audit Landlord's records pertaining to such Tax in accordance with Paragraph 11 below.
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