EXHIBIT 10.40
LEASE AMENDMENT
This document amends the Lease Agreement dated November 14, 1996 and amended
November 24, 1997, March 27, 1998, June 4, 1998, July 21, 1998 November 20, 1998
and March 18, 1999 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, 660, 700, 850 and 800, and
4101 XxXxxx, Suites 100, 270 and 300 Xxxxxx, Xxxxx 00000 as follows:
BASIC LEASE PROVISION NO. 2 "PREMISES"
Effective August 1, 1999, Tenant shall lease Suite #800 in the 4101 XxXxxx
Building containing 15,669 rentable square feet, and effective February 1, 2000,
lease Suite #700 in the 4101 XxXxxx Building containing 15,949 rentable square
feet hereinafter "Expansion Spaces" (for a total expansion of 31,618 rentable
square feet) within The Centre office complex while maintaining all its then
current space at 4099 and 4101 XxXxxx. Tenant's amended square footage will
total 112,130 rentable square feet for both Buildings. The Expansion Spaces
(4101 XxXxxx, Suites 700 and 800) are further defined and delineated on the
attached Exhibits "A-9" and "A-10" respectively.
BASIC LEASE PROVISION NO. 3 "BASIC RENT"
Effective August 1, 1999, Tenant's Basic Monthly Rent shall adjust as follows:
Term Monthly Rent
---- ------------
August 1, 1999 thru January 31, 2000 $144,425.00
February 1, 2000 thru January 31, 2002 $173,000.00
Feb. 1, 2002 thru Feb. 17, 2003 $177,628.00
BASIC LEASE PROVISION NO. 4 "TENANT'S PRO RATE SHARE"
Effective August 1, 1999, Tenant's proportionate share of the 4099 XxXxxx
Building shall be unchanged at 46.16% for all purposes under this Lease.
Tenant's proportionate share of the 4101 XxXxxx Building shall be amended to
31.40% for all purposes under this Lease. Effective February 1, 2000,
contemporaneously with the expansion into Suite 700, Tenant's proportionate
share for 4101 XxXxxx shall be amended to 44.23%. Notwithstanding "Tenant's
Pro Rata Share", at the option of Tenant, shall be amended subsequently pursuant
to the Reduction Option set forth herein.
BASIC LEASE PROVISION NO.'S 5&6 "OPERATING EXPENSE STOP"
Effective August 1, 1999, the Expense Stop for the Expansion Spaces shall be set
at an amount equal to the sum of the actual grossed up operating expenses for
1999, expressed as a function of 124,326 rentable square feet for the 4101
XxXxxx Building.
1
BASIC LEASE PROVISION NO. 7 "TERM"
Effective August 1, 1999, the Lease Term for the expansion space at 0000 XxXxxx,
Xxxxx #000 shall be forty-two and one-half (42 1/2) months and the Lease Term
for 0000 XxXxxx, Xxxxx #000 shall be thirty-six and one-half (36 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.
REDUCTION OPTION
Upon full occupancy of the seventh (7th) floor of 4101 XxXxxx, Tenant shall have
sixty (60) days to notify Landlord in writing that it elects to vacate Suite 270
at 4101 XxXxxx (3,663/RSF) and Suite 660 at 4099 XxXxxx (1,775/RSF). If such
notice is received within the period stipulated herein, the Base Rent and
Tenant's Pro Rata Share shall be adjusted downward based on the rate per square
foot of such space at its initial leasing and shall become effective 30 days
after Tenant's notice to Landlord and Tenant's vacating such suite(s).
Additionally, an amendment shall be submitted to Tenant which addresses the
economic terms of the Lease affected in the vacating of either suite and the
termination of same. Failure of Tenant to submit notice within the sixty (60)
day period shall be deemed an acceptance by Tenant of such space for the
remainder of the Lease Term.
RIGHT OF FIRST REFUSAL
Notwithstanding herein to the contrary, Tenant shall have a Right of First
Refusal on the 5th floor of 4101 XxXxxx on the same terms and conditions
specified in Rider No. 3.
OTHER SPACE
The Expansion Spaces are currently under lease to Unisource Worldwide. In the
event Landlord is unable to successfully terminate the lease with Unisource
Worldwide for such Expansion Spaces and the Condition Precedent has been
exercised, then Tenant, may upon written notice to Landlord, lease any available
space on the 5th floor of 4101 XxXxxx at the same terms and conditions set for
the herein above except as may be adjusted based on the actual size of the
available space and a pro-ration of the Finish Allowance. Additionally, in such
event, Landlord shall provide Tenant a Right of First Refusal on the 7th and 8th
floors of 4101 XxXxxx.
TEMPORARY SPACE
In the event there is any delay in delivering possession to Tenant Suite 800 of
the Expansion Space beyond August 1, 1999, Tenant may utilize available space on
the 5th floor under the terms of a temporary agreement. The agreement will be
similar to that used for Suite 200 at 4099 XxXxxx.
CONDITION PRECEDENT
If Landlord is unable to provide Tenant possession of Suite 700 or Suite 800 at
4101 XxXxxx on or before August 1, 1999 and February 1, 2000 respectively, the
Lease and the rental obligation for each should be delayed accordingly. If
delivery is not made within 120 days of the full execution of this Amendment,
Tenant has the right to terminate leasing of the specific space which is
unavailable.
2
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 $79,745 for Suite
700 and $76,151 for Suite 800 at 4101 XxXxxx (The "Finish Allowance"). 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, except for the
Suite 800 at 4099 XxXxxx. Tenant Improvements shall be constructed in accordance
with Exhibit X.
XXXXX NO. 2 "RENEWAL OPTION"
This Expansion Space (0000 XxXxxx, Xxxxx #000 and #800) 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 3rd day of June, 1999.
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 XXXXX
--------------------------------
Xxxxxxx Xxxxx, CFO
3
EXHIBIT "A-7"
[GRAPHIC]
3
EXHIBIT "A-8"
[GRAPHIC]
4
