Electronic Arts, Inc. and Subsidiaries - Page 15




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          video game basis with respect to the fees for the lease employees           
          and other services.                                                         
               Under the Agreement, which sets forth a nonexclusive list of           
          10 “Services”, PPI agreed to provide “Day to day management of              
          employees leased by EAPR pursuant to Section 2 [of the                      
          Agreement].”  Section 2 of the Agreement, entitled “Lease of                
          Employees”, provides in pertinent part as follows:                          
               All employees leased by PPI hereunder shall be located                 
               in the Premises leased by EAPR from PPI and shall be                   
               under the general supervision of EAPR.  EAPR shall also                
               supervise and control all technical and product-related                
               training required by such employees.  EAPR shall have                  
               the right to locate its own employees in the building                  
               space leased by it from PPI for the purpose of                         
               overseeing and directing the work of the employees                     
               leased to it by PPI subject to the requirements of the                 
               Lease attached hereto as Exhibit A.  [The Lease is not                 
               attached to the stipulated copy of the Agreement, but                  
               the Lease is in the record in the instant cases as a                   
               separately stipulated exhibit.]                                        
               The Lease provides in pertinent part as follows:                       
                    3.  USE:  The Premises are to be used as a                        
               manufacturing facility for the manufacture of videogame                
               cartridges and shall be used solely by those employees                 
               leased from Lessor [PPI] by Lessee [EAPR] pursuant to a                
               manufacturing services agreement and by one additional                 
               employee of Lessee, unless Lessor consents to use by                   
               other employees, and for no other purpose, without the                 
               prior written consent of Lessor.                                       
               PPI invoiced EAPR for all labor costs as specified under the           
          Agreement on the basis of the number of completed video games.              
          This invoice charge included the amount of any taxes and                    
          unemployment contributions paid with respect to lease employees.            
          The amount invoiced was determined based on labor costs, taxes,             





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Last modified: May 25, 2011