EXHIBIT 10.18

AMENDMENT NO. 2 TO

LEASE AGREEMENT

 

BY AND BETWEEN

DESTA FIVE PARTNERSHIP, LTD.

AS LANDLORD,

 

AND

 

CIRRUS LOGIC, INC.

AS TENANT

 

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SECOND AMENDMENT TO LEASE AGREEMENT

     This is the Second Amendment to the Lease Agreement by and between Desta
Five Partnership, Ltd., as Landlord, and Cirrus Logic, Inc., as Tenant,
effective November 10, 2000, as amended by the First Amendment to Lease
Agreement, covering all of the rentable area in the Terrace V Building (the
“Lease”).

     Landlord has completed the Building and Landlord and Tenant hereby agree to
make certain amendments to the Lease to confirm the Commencement Date, the Base
Rent, as well as other matters as follows:

     1.     Basic Lease Provisions. Landlord and Tenant agree to adopt the First
Restated Basic Lease Provisions to the Lease which are attached hereto in lieu
of the Basic Lease Provisions to the Lease, which shall have no further force or
effect.

     2.     Lease Term. The provisions of Section 2.01 are hereby deleted and
the following is substituted in lieu thereof:

      “The primary term of this Lease shall commence on the Commencement Date
and shall expire on August 31, 2012 (the “Expiration Date”). The “Lease Term” of
this Lease shall be primary term specified in this Section 2.01, as renewed or
otherwise extended or earlier terminated pursuant to the terms and provisions
set forth herein.”

     3.     Base Rent. The provisions of Section 3.01 are hereby amended and
revised in their entirety as follows:

     3.01 Base Rent. Landlord and Tenant agree the annual Base Rent shall be
$4,632,685.32. Tenant shall pay the Base Rent

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      to Landlord in monthly installments of $386,057.11 in advance on or before
the first day of each calendar month during the Lease Term. If the Lease Term is
extended for a partial month, then the Base Rent for any partial calendar month
will be prorated on a per diem basis.

Notwithstanding the foregoing amendment of Section 3.01, Landlord and Tenant
agree that the mechanism for determining “Project Costs”, as set out in Section
3.01 prior to this Second Amendment, will continue to be utilized for the
purpose of determining the Base Rent applicable to Building VI under the
provisions set out in Paragraph I.C.2. of Exhibit “I” attached to the Lease.

     4. Ratification of Lease. Except as amended herein, the Lease is ratified
and confirmed by Landlord and Tenant.

     Executed and effective this 20th day of December, 2002.

      LANDLORD:   TENANT:             DESTA FIVE PARTNERSHIP, LTD.   CIRRUS
LOGIC, INC.       BY: Desta Five Development Corp.,   BY: /s/ Steven D. Overly
        its general partner  

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    Name: Steven D. Overly    

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     By: /s/ L. Paul Latham   Title: SVP, CFO & GC

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          L. Paul Latham,               President    

Approved as to Form and Content:

BANK ONE, NA,
as Administrative Agent and Co-Lender

By:____________________________________
      Jeffrey A. Etter,
      First Vice President

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FIRST RESTATED
BASIC LEASE PROVISIONS

      Landlord:   Desta Five Partnership, Ltd., a Texas limited partnership    
  Landlord’s Address:   6 Desta Drive, Suite 6500     Midland, Texas 79705    
Attn: Mr. L. Paul Latham     Telephone No. (915) 688-3212     Fax No.
(915) 688-3247           with copy to:     Desta Five Partnership, Ltd.     2700
Via Fortuna, Suite 140     Austin, Texas 78746     Attn: Mr. Rod Arend    
Telephone No. (512) 306-9093     Fax No. (512) 306-9112       Tenant:   Cirrus
Logic, Inc.       Tenant’s Address:   2901 Via Fortuna, Suite 100     Austin,
Texas 78746     Attention: General Counsel     Telephone No. (512) 851-4234    
Fax No. (512) 851-4136           with copy to:     2901 Via Fortuna, Suite 100  
  Austin, Texas 78746     Attention: Treasurer     Telephone No. (512) 851-4002
    Fax No. (512) 851-4136       Building:   The land described on Exhibit A
attached hereto (the “Land”), together with all improvements to be constructed
thereon, including all building systems which are included within and/or serve
the Building and the related parking garage located on the Land (the “Garage”) .
The floor plans of the Building are generally depicted on Exhibit B attached
hereto. The Building will be known as, 2901 Via Fortuna, Austin, Texas 78746.

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            Leased Premises:   All of the Building and the Land.       Total
Building Area:   196,717 square feet of Rentable Area, subject to adjustment as
provided in Section 1.01(a).             Base Rent:   Beginning on the
commencement Date, Base Rent under
this Lease will be payable as set forth below:

          Lease       Monthly Months   Annual Rate   Installments

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1-120   $23.55   $386,057.11

      Rent:   The Base Rent, Additional Rent (hereinafter defined), and all
other amounts payable by Tenant to Landlord under this Lease.       Tenant’s
Percentage:   One Hundred percent (100%);       Effective Date:   November 10,
2000       Commencement Date:   September 1, 2002       Lease Term:   One
Hundred Twenty (120) months, commencing on the Commencement Date and subject to
the option to extend set forth on Exhibit H.       Building
Standard Hours:   7:00 a.m. to 7:00 p.m. on each Monday through Friday
(excluding Building Holidays) and 8:00 a.m. to 5:00 p.m. on each Saturday
(excluding Building Holidays), subject to the modifications set forth in Section
4.01(b). Notwithstanding the foregoing recitation of Building Standard Hours or
any other provision in this Lease to the contrary; it is agreed and understood
that Tenant and Tenant’s authorized employees shall have free and uninterrupted
access to the Leased Premises at all times (24 hours per day, 7 days per week).
      Building Holidays:   New Years Day, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day and Christmas Day.

 

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            Tenant’s Broker:   NAI Commercial Industrial Properties Company    
7320 N. Mopac Expressway, Suite 100     Austin, Texas 78731       Landlord’s
Broker:   Colliers Oxford Commercial, Inc.     2700 Via Fortuna Drive, Suite 100
    Austin, Texas 78748       Security:   A cash deposit of $540,160 plus a
$9,000,000 Letter of Credit, as may be adjusted pursuant to Section 3.05.      
Parking:   Tenant shall be entitled to utilize all of the parking spaces in the
Garage (which will be at least 768 parking spaces) and all of the surface
parking spaces which are located upon the Land, all at no cost to Tenant.      
Permitted Use   General office uses, uses related to integrated circuit design,
and uses which are ancillary or appurtenant to the foregoing, including, but not
limited to training centers, cafeterias, computer rooms, data and word
processing centers, and research services use including research laboratories in
which testing and verification of electrical products occurs in accordance with
applicable city zoning ordinances.

The Basic Lease Provisions set forth hereinabove are hereby incorporated into
and made a part of the Lease Agreement which is attached hereto (the “Lease”).
Each reference in the Lease to any of the provisions or definitions set forth in
these Basic Lease Provisions shall mean and refer to the provisions and
definitions hereinabove set forth and shall be used in conjunction with the
provisions of the Lease. In the event of any direct conflict between these Basic
Lease Provision and the Lease, these Basic Lease Provisions shall control;
provided, however, that those provisions in the Lease (including all exhibits
and attachments thereto) which expressly require an adjustment or modification
to any of the matters set forth in these Basic Lease Provisions shall supersede
the adjusted or modified provisions of these Basic Lease Provisions.