EXHIBIT 10.38
LEASE AMENDMENT
This document amends the Lease Agreement dated November 14, 1996 and amended
November 24, 1997, March 27, 1998, June 4, 1998, and July 21, 1998 by and
between Blue Lake Partners, Ltd. ("Landlord"), and McAfee Software, Inc., a
Delaware Corporation ("Tenant"), for the Premises located at 4099 XxXxxx, Suites
405, 500, 620, & 700, and 4101 XxXxxx, Sites 270 and 300, Xxxxxx, Xxxxx 00000 as
follows:
Basic Lease Provision No. 2 "Premises"
Effective December 1, 1998, Tenant shall expand into Suite #660 in the 4099
XxXxxx Building containing 1,775 rentable square feet within The Centre office
complex while maintaining all its present space at 4099 and 4101 XxXxxx.
Additionally, effective January 1, 1999, Tenant shall expand into Suite #850 in
the 4099 XxXxxx Building containing 10,777 rentable square feet within The
Centre office complex while maintaining all its then current space at 4099 and
4101 XxXxxx. Tenant's new, combined square footage will total 71,919 rentable
square feet for both Buildings. The expansion spaces (0000 XxXxxx, Xxxxx #000
and Suite #850) are further defined and delineated on the attached Exhibits
"A-5" and "A-6," respectively. If Landlord is unable to provide delivery of such
spaces on the respective dates, the rental obligation for each should be delayed
accordingly. If delivery is not made within 120 days, Tenant has right to
terminate leasing of the specific space.
Basic Lease Provision No. 3 "Basic Rent"
Effective December 1, 1998, Tenant's Basic Monthly Rent shall adjust as follows:
Term Monthly Rent
---- ------------
Dec. 1, 1998 thru Dec. 31, 1998 $85,373.41
Jan. 1, 1999 thru Jan. 31, 2002 $103,335.08
Feb. 1, 2002 thru Feb. 17, 2003 $107,962.98
Basic Lease Provision No. 4 "Tenant's Pro Rate Share"
Effective January 1, 1999, Tenant's proportionate share of the 4099 XxXxxx
Building shall be set at 42.33 % for all purposes under this Lease. Tenant's
proportionate share of the 4101 XxXxxx Building shall remain 15.71% for all
purposes under this Lease.
Basic Lease Provision No.'s 5&6 "Operating Expense Stop"
Effective December 1, 1998, the Expense Stop for the expansion spaces (0000
XxXxxx, Xxxxx #000 and Suite #850) shall be set at an amount equal to the sum of
the actual grossed up operating expenses for 1998, expressed as a function of
123,770 rentable square feet for the building.
Basic Lease Provision No. 7 "Term"
Effective December 1, 1998, Tenant's Lease Term for the expansion space at 0000
XxXxxx, Xxxxx #000 containing 1,775 rsf shall be fifty and one half (50 1/2)
months for an expiration date coterminous with Tenant's existing space of
February 17, 2003. Effective January 1, 1999, Tenant's Lease Term for the
expansion space at 0000 XxXxxx, Xxxxx #000 containing 10,777 rsf shall be forty
nine and one half (49 1/2) months for an expiration date coterminous with
Tenant's
existing space of February 17, 2003. Additionally, Tenant's existing lease space
located at 0000 XxXxxx, Xxxxx #000 containing 3,663 rsf shall be extended by
forty two and one half (42 1/2) months for an expiration date coterminous with
Tenant's existing space of February 17, 2003.
Basic Lease Provision No. 11 "Tenant's Broker"
Tenant represents and warrants that it has dealt with no Broker or Agent in
connection with the execution of this Lease Amendment and Tenant agrees to
indemnify and hold harmless Landlord against all liabilities and costs arising
from a breach of such warranty including without limitation attorney's fees in
connection therewith.
Exhibit "D"
Exhibit D, Work Letter, Plans Agreed Upon/Finish Allowance, paragraph 2.1, shall
be amended such that Landlord shall provide an allowance up to $72,174.00 (The
"Finish Allowance") on the expansion spaces only (4099 XxXxxx, Suites #660 and
#850). Tenant acknowledges that Landlord has satisfactorily completed all of
Landlord's work and all tenant improvements called for by or under all prior
Exhibit "D" construction plans and specifications to the Lease and any
Amendments, and the only work to be performed by Landlord is under this
Amendment. Tenant Improvements shall be constructed in accordance with Exhibit
D. Tenant agrees to execute an Acceptance of Premises Memorandum upon
Substantial Completion as defined in Exhibit D. Tenant accepts the space located
at 0000 XxXxxx, Xxxxx #000 containing 3,663 rsf in its current "as is" condition
and agrees that the Landlord has no leasehold improvement obligations.
Rider No. 2 "Renewal Option"
This expansion areas (0000 XxXxxx, Xxxxx #000 and Suite #850) shall be subject
to the same renewal option as the existing premises.
Submission of this instrument for examination or signature by Tenant is not
effective until execution by and delivery to both Landlord and Tenant.
All other terms and conditions shall remain the same and in full force and
effect.
EXECUTED the 20th day of November, 1998.
LANDLORD: Blue Lake Partners, Ltd.
By: SF Realty, Inc. Its General Partner
By: /s/ XXXX XXXXXXXX
--------------------------------
Xxxx Xxxxxxxx, Leasing Manager
TENANT: McAfee Software, Inc.
(a Delaware Corporation)
By: /s/ XXXXXXX X. XXXXX
--------------------------------
Xxxxxxx Xxxxx, CFO
Exhibit "A-5"
[GRAPHIC]
Exhibit "A-6"
[GRAPHIC]