eTrade 2000 Annual Report Download - page 165

January 18, 1999
VIA FACSIMILE
E*Trade Group, Inc.
2400 Geng Road
Palo Alto, CA 94303
Attn: Mr.Robert Clegg
Re: Lease of 4200 Bohannon Drive, Menlo Park, California
Dear Robert:
Reference is made to that certain Menlo Oaks Corporate Center Standard Business Lease (4200 Bohannon Drive) (the “Lease”) dated
as of August 18, 1998, by and between Menlo Oaks Partner’ s, L.P., a Delaware limited partnership (“Landlord”), and E*Trade Group,
Inc., a Delaware corporation (“Tenant”). Capitalized terms used herein and not defined herein shall have the meanings set forth in the
Lease.
This letter (this “Letter Agreement”) shall evidence Landlord’ s and Tenant’ s amendment of the Lease as follows:
1. Preliminary Plans . Landlord hereby approves Tenant’ s Preliminary Plans described in Exhibit 1 , attached hereto.
2. Restoration/Modification Obligation . Tenant shall deliver to Landlord for Landlord’ s review and approval Tenant’ s proposed plans
and specifications (the “Modification Work Plans”) for the restoration and modification work described in Exhibit 2 , attached hereto
(hereinafter referred to as the “Modification Work”), not later than one hundred twenty (120) days prior to the expiration of the Term;
provided, however, if the Lease is terminated prior to the expiration of the Term, then Tenant shall deliver to Landlord for Landlord’ s
review and approval the Modification Work Plans within ninety (90) days after the termination of the Lease. Landlord shall not
unreasonably withhold its approval of the Modification Work Plans. Tenant shall complete the Modification Work by the expiration of
the Term; provided, however, if the Lease is terminated prior to th e expiration of the Term, Tenant shall commence the Modification
Work within ten (10) days after Landlord approves the Modification Work Plans and complete the Modification Work within ninety
(90) days after the termination of the Lease.
3. Additional Deposit . Within ten (10) days after the execution of this Letter Agreement, Tenant shall deliver to Landlord an
additional deposit (the “Additional Deposit”) in the amount of Two Hundred Thousand Dollars ($200,000.00). The Additional
Deposit shall secure the performance of all of Tenant’ s obligations under this Letter Agreement, including Tenant’ s obligation to
perform the Modification Work.
a. Delivery of Letter of Credit . In lieu of depositing the Additional Deposit in cash, Tenant may deliver to Landlord a clean,
irrevocable and unconditional letter of credit (the “LC”) in compliance with the terms, provisions and requirements of this Section 3,
in the amount of the Additional Deposit and issued by a major California financial institution reasonably acceptable to Landlord.
b. Term and Renewal of Letter of Credit . The LC shall be for a term of one (1) year and shall be automatically renewed each year for
an additional twelve (12) months from the date of expiration of the LC through the ninetieth (90th) day after the expiration or earlier
termination of the Lease. Tenant shall renew, extend or replace the LC as necessary and deliver written evidence thereof to Landlord at
least thirty (30) days prior to the expiration date of the LC so that a valid LC which complies with each requirement of this Section 3 is
in effect during the entire period required hereby. If Tenant fails to so renew, extend or replace the LC and deliver such written
evidence to Landlord, and such failure continues for a period of five (5) days after the date such evidence is due to Landlord, Landlord
shall be entitled to immediately draw the entire am ount of the LC, and hold such sum as security deposit for Tenant’ s faithful
performance of its obligations under this Letter Agreement. If Landlord draws down on the LC pursuant to this Section 3.b as a result
of Tenant’ s failure to renew, extend or replace the LC and deliver such written notice to Landlord, then Tenant shall have the option of
delivering to Landlord a substitute LC which meets all of the requirements set forth in this Section 3 in exchange for Landlord
returning to Tenant the portion of the Additional Deposit held by Landlord in cash.
E*Trade Group, Inc. January 18, 1999
Attn: Mr. Robert Clegg Page 2
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