Document:

<PAGE>

                                                                   EXHIBIT 10.38

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN PORTIONS OF THIS DOCUMENT
PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT SENT TO THE SECURITIES AND
EXCHANGE COMMISSION. SUCH PORTIONS ARE OMITTED FROM THIS FILING AND ARE FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                      SECOND AMENDMENT TO LOAN AGREEMENT

          THIS SECOND AMENDMENT TO LOAN AGREEMENT dated as of June 27, 2001
(this "Amendment") between LEHMAN BROTHERS BANK FSB, having an address at 921
North Orange Street, Wilmington, Delaware 19801 ("Lender") and EXODUS
COMMUNICATIONS REAL PROPERTY I, LLC, a Delaware limited liability company,
having its address at 2831 Mission College Boulevard, Suite C, Santa Clara,
California 95054-1838, and EXODUS COMMUNICATIONS REAL PROPERTY I, LP, a Texas
limited partnership, having its address at 2831 Mission College Boulevard, Suite
A, Santa Clara, California 95054-1838 (collectively, "Borrower").

                             W I T N E S S E T H:
                             - - - - - - - - - -

          WHEREAS, Lender and Borrower are parties to a loan agreement dated as
of March 30, 2001 (the "Loan Agreement") wherein Lender agreed to make a loan to
Borrower in the maximum principal amount of $105,000,000;

          WHEREAS, Lender and Borrower amended the Loan Agreement pursuant to
that certain Amendment to Loan Agreement dated as of May 4, 2001 wherein, among
other things, Lender and Borrower increased the amount of the loan by an
additional $11,000,000;

          WHEREAS, Lender and Borrower are desirous of further amending the Loan
Agreement in the manner hereinafter provided.

          NOW, THEREFORE, for good and valuable consideration, the parties
hereto hereby agree that the Loan Agreement is hereby amended as follows:

          1.   All capitalized terms not otherwise defined herein shall have the
meanings provided in the Loan Agreement.

          2.   The term "Acceptable Counterparty" is hereby amended to insert
                         -----------------------
the word "and" between "S&P" and "Fitch".

          3.   Any and all references in the Loan Agreement or in any of the
other Loan Documents to the term Agent are hereby deleted and shall be of no
further force or effect.

          4.   The term "Component A" is hereby amended in its entirety to read
                         -----------
as follows: ""Component A" shall mean that certain portion of the Loan in the
              -----------
initial principal amount of * Dollars ($*)."

          5.   The term "Component B" is hereby amended in its entirety to read
                         -----------
as follows: ""Component B" shall mean that certain portion of the Loan in the
              -----------
initial principal amount of * Dollars ($*)."

*    Confidential treatment has been requested for certain portions of this
     document pursuant to an application for confidential treatment sent to the
     Securities and Exchange Commission. Such portions are omitted from this
     filing and are filed separately with the Securities and Exchange
     Commission.
<PAGE>

          6.   The term "Component C" is hereby amended in its entirety to read
                         -----------
as follows: ""Component C" shall mean that certain portion of the Loan in the
              -----------
initial principal amount of * Dollars ($*)."

          7.   The term "Component D" is hereby amended in its entirety to read
                         -----------
as follows: ""Component D" shall mean that certain portion of the Loan in the
              -----------
initial principal amount of * Dollars ($*)."

          8.   The term "Eligible Institution" is hereby amended to add the
                         --------------------
following phrase at the end of such definition: ", provided that such
institution may have such other ratings which, as shall be confirmed in writing
by the Rating Agency, will not result in the downgrade, qualification or
withdrawal of the then current ratings of the certificates".

          9.   The term "LIBOR" is hereby amended in its entirety to read as
                         -----
follows: ""LIBOR" shall mean, with respect to each Interest Period, the rate
           -----
(expressed as a percentage per annum and rounded upward, if necessary, to the
next nearest 1/1000 of 1%) for deposits in U.S. dollars, for a one-month period,
that appears on Telerate Page 3750 (or the successor thereto) as of 11:00 a.m.,
London time, on the related Determination Date. If such rate does not appear on
Telerate Page 3750 as of 11:00 a.m., London time, on such Determination Date,
Lender shall request the principal London Office of any four major reference
banks in the London interbank market reasonably selected by Lender, to provide
such bank's offered quotation (expressed as a percentage per annum) to prime
banks in the London interbank market for deposits in U.S. dollars for a one-
month period as of 11:00 a.m., London time, on such Determination Date for the
then outstanding principal amount of the Loan. If at least two such offered
quotations are so provided, LIBOR shall be the arithmetic mean of such
quotations. If fewer than two such quotations are so provided, Lender shall
request any three major banks in New York City reasonably selected by Lender, to
provide such bank's rate (expressed as a percentage per annum) for loans in U.S.
dollars to leading European banks for a one-month period as of approximately
11:00 a.m., New York City time on the applicable Determination Date for the then
outstanding principal amount of the Loan. If at least two such rates are so
provided, LIBOR shall be the arithmetic mean of such rates. LIBOR shall be
determined by Lender or its agent."

          10.  The term "Monthly Debt Service Payment Amount" is hereby amended
                         -----------------------------------
in its entirety to read as follows: ""Monthly Debt Service Payment Amount" shall
                                      -----------------------------------
mean the applicable monthly installment of principal and interest payable under
the Loan Documents in an amount equal to (i) interest at the Applicable Interest
Rate on each Component computed in accordance with Section 2.2.2 hereof and (ii)
principal sufficient to fully amortize the Loan over the balance of the period
beginning on the first Payment Date following the Closing Date and ending on the
twentieth (20th) anniversary thereof, which monthly principal amounts are more
particularly set forth on the amortization schedule attached as Schedule VI
                                                                -----------
hereof."

          11.  The schedule attached hereto as Schedule VI is hereby added to
                                               -----------
the Loan Agreement as Schedule VI thereof.
                      -----------

*         Confidential treatment has been requested for certain portions of this
          document pursuant to an application for confidential treatment sent to
          the Securities and Exchange Commission. Such portions are omitted from
          this filing and are filed separately with the Securities and Exchange
          Commission.

                                      -2-

<PAGE>

          12.  The term "Permitted Investments" is hereby amended to delete the
                         ---------------------
words "or mutual funds" from the first line of subsection (viii).

          13.  The term "Rating Agencies" is hereby amended to revise the name
                         ---------------
of S&P to "Standard & Poor's Ratings Services, a division of McGraw-Hill, Inc."

          14.  The term "Spread" is hereby amended in its entirety to read as
                         ------
follows: ""Spread" shall mean (a) *% with respect to Component A, (b)
           ------
*% with respect to Component B, (c) *% with respect to Component C, and (d) *%
with respect to Component D."

          15.  Section 2.2.5(b) is hereby amended in its entirety to read as
follows: "(b) Borrower shall pay to Lender on the Maturity Date the outstanding
principal balance, all accrued and unpaid interest and all other amounts due
hereunder and under the Note, each Mortgage and the other Loan Documents."

          16.  Section 2.2.5(c)(ii) is hereby amended in its entirety to read as
follows: "(ii) if an Interest Rate Cap Agreement is then in existence, Borrower
shall obtain and deliver to Lender not later than one (1) Business Day prior to
the first day of the term of the Loan as extended one or more Replacement
Interest Rate Cap Agreements from an Acceptable Counterparty which Replacement
Interest Rate Cap Agreement shall be effective commencing on the date of such
extension and shall have a maturity date not earlier than the first anniversary
thereof."

          17.  Section 2.4(a)(vii) is hereby amended in its entirety to read as
follows: "(vii) Immediately after giving effect to the release, the Debt Service
Coverage Ratio on a trailing twelve (12) month basis with respect to the
remaining Properties shall be no less than the greater of (A) 1.71:1.00 or (b)
the Debt Service Coverage Ratio on a trailing twelve (12) month basis
immediately preceding the release."

          18.  Section 2.4(a) is hereby amended to add a new subsection (viii)
as follows: "(viii) Commencing with the first Payment Date following the Partial
Release Date and continuing thereafter throughout the term of the Loan, the
Monthly Debt Service Payment Amount shall decrease by an amount equal to the
amount of principal which would otherwise have amortized with respect to the
Individual Property as more particularly set forth in Schedule VI hereof."

          19.  The final sentence of Section 2.6.2 is hereby amended in its
entirety to read as follows: "Whenever any payment hereunder or under the Note
shall be stated to be due on a day which is not a Business Day, such payment
shall be made on the first Business Day succeeding such scheduled due date."

          20.  Section 5.1.2(vii) is hereby amended in its entirety to read as
follows: "(vii) Borrower shall furnish such security as may be required in the
proceeding, or as may be requested by Lender, in an amount equal to * percent
(*%) of the amount contested, to insure the payment of any such Taxes or Other
Charges, together with all interest and penalties thereon."

*    Confidential treatment has been requested for certain portions of this
     document pursuant to an application for confidential treatment sent to the
     Securities and Exchange Commission. Such portions are omitted from this
     filing and are filed separately with the Securities and Exchange
     Commission.
                                           -3-
<PAGE>

          21.  The parenthetical clause in subsection (ii) of Section 5.1.20 is
hereby amended in its entirety as follows: "(provided Borrower shall not amend
or modify or consent to an assignment of a Master Lease without the prior
consent of Lender)".

          22.  The following subsection (vii) is added to Section 5.1.20: "(vii)
shall, with respect to a request by a tenant for consent to an assignment, cause
to be delivered to Lender any information with respect to such assignment and
the proposed assignee as shall be reasonably requested by Lender".

          23.  Section 5.2.1 is hereby amended in its entirety to read as
follows: "Neither California Borrower nor Texas Borrower, as the case may be,
shall, without the prior consent of Lender (which consent shall not be
unreasonably withheld), terminate the Management Agreement or otherwise replace
the Manager or enter into any other management agreement with respect to any
Individual Property, provided that if such termination of the Management
Agreement, replacement of the Manager or entering into any other management
agreement is to occur after a Securitization, the Borrower may not take such
action unless the Rating Agencies shall have confirmed that such action shall
not, in itself, result in a downgrade, qualification or withdrawal of the then
current ratings assigned to the Securities."

          24.  The following is hereby added to the end of Section 6.1(a)(ii):
"Notwithstanding the insurance coverage required pursuant to this Section
6.1(a)(ii) to the contrary, Lender hereby agrees and acknowledges that the
liability insurance currently in effect, of which losses up to $* are insured by
an insurance company with a claims paying ability of "A" and the losses
exceeding $* and up to $* are insured by an insurance company with a claims
paying ability of "AA", is acceptable to Lender".

          25.  The following is hereby added to the end of Section 6.1(b):
"Notwithstanding the foregoing, in the event that Borrower's insurers fail to
provide or maintain such claims paying ability rating of "AA" or better in
accordance with the provisions hereof, Borrower may satisfy the ratings
requirement of this Section by providing to Lender a "cut-through" endorsement
in form and substance approved by Lender issued by an insurer with at least an
"AA" rating by at least two (2) of the Rating Agencies, one of which shall be
S&P".

          26.  Section 6.4(b)(i)(F)(1) is hereby amended in its entirety to read
as follows: "(1) six (6) months prior to the Maturity Date."

          27.  As herein amended, the Loan Agreement is hereby ratified and
remains in full force and effect.

                    [THERE IS NO FURTHER TEXT ON THIS PAGE]

*    Confidential treatment has been requested for certain portions of this
     document pursuant to an application for confidential treatment sent to the
     Securities and Exchange Commission. Such portions are omitted from this
     filing and are filed separately with the Securities and Exchange
     Commission.

                                      -4-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their duly authorized representatives, all as of the day and
year first above written.

                                 EXODUS COMMUNICATIONS REAL PROPERTY I, LLC, a
                                   Delaware limited liability company

                                   By: Exodus Communications Real Property
                                       Managers I, LLC, a Delaware limited
                                       liability company, its managing member

                                       By: Exodus Communications, Inc., a
                                           Delaware corporation, its sole member

                                           By: /s/ Adam W. Wegner
                                              ---------------------------------
                                              Name:  Adam W. Wegner
                                              Title: EVP, Legal and Corporate
                                                     Affairs, General Counsel
                                                     and Secretary

                                 EXODUS COMMUNICATIONS REAL PROPERTY I, LP, a
                                   Texas limited partnership

                                   By: Exodus Communications Real Property
                                       Managers I, LLC, a Delaware limited
                                       liability company, its general partner

                                       By: Exodus Communications, Inc., a
                                           Delaware corporation, its sole member

                                           By: /s/ Adam W. Wegner
                                              ---------------------------------
                                              Name:  Adam W. Wegner
                                              Title: EVP, Legal and Corporate
                                                     Affairs, General Counsel
                                                     and Secretary

<PAGE>

                                 LEHMAN BROTHERS BANK FSB

                                 By: /s/ Larry Kravetz
                                    -------------------------------------------
                                 Name:  Larry Kravetz
                                 Title: Senior Vice President

                                      -2-
<PAGE>

                                  Schedule VI
                                  -----------

                             Amortization Schedule
                             ---------------------

                                (see attached)
<PAGE>

Exodus Portfolio
Stipulated Loss Schedule

<TABLE>
<CAPTION>
Portfolio Stipulated Loss Values                        Pro Rata Stipulated Loss Values by Property

    From          Through    Portfolio Stip Loss Value   Santa Clara 4 & 5   4650 Old Ironsides  4700 Old Ironsides       Austin
    ----          -------              *%                        *%                 *%                  *%                  *%
  <S>            <C>         <C>                         <C>                 <C>                 <C>                  <C>
  30-Mar-01      10-May-01             *                  $      *             $    *              $    *             $     *
  11-May-01      10-Jun-01             *                  $      *             $    *              $    *             $     *
  11-Jun-01      10-Jul-01             *                  $      *             $    *              $    *             $     *
  11-Jul-01      10-Aug-01             *                  $      *             $    *              $    *             $     *
  11-Aug-01      10-Sep-01             *                  $      *             $    *              $    *             $     *
  11-Sep-01      10-Oct-01             *                  $      *             $    *              $    *             $     *
  11-Oct-01      10-Nov-01             *                  $      *             $    *              $    *             $     *
  11-Nov-01      10-Dec-01             *                  $      *             $    *              $    *             $     *
  11-Dec-01      10-Jan-02             *                  $      *             $    *              $    *             $     *
  11-Jan-02      10-Feb-02             *                  $      *             $    *              $    *             $     *
  11-Feb-02      10-Mar-02             *                  $      *             $    *              $    *             $     *
  11-Mar-02      10-Apr-02             *                  $      *             $    *              $    *             $     *
  11-Apr-02      10-May-02             *                  $      *             $    *              $    *             $     *
  11-May-02      10-Jun-02             *                  $      *             $    *              $    *             $     *
  11-Jun-02      10-Jul-02             *                  $      *             $    *              $    *             $     *
  11-Jul-02      10-Aug-02             *                  $      *             $    *              $    *             $     *
  11-Aug-02      10-Sep-02             *                  $      *             $    *              $    *             $     *
  11-Sep-02      10-Oct-02             *                  $      *             $    *              $    *             $     *
  11-Oct-02      10-Nov-02             *                  $      *             $    *              $    *             $     *
  11-Nov-02      10-Dec-02             *                  $      *             $    *              $    *             $     *
  11-Dec-02      10-Jan-03             *                  $      *             $    *              $    *             $     *
  11-Jan-03      10-Feb-03             *                  $      *             $    *              $    *             $     *
  11-Feb-03      10-Mar-03             *                  $      *             $    *              $    *             $     *
  11-Mar-03      10-Apr-03             *                  $      *             $    *              $    *             $     *
  11-Apr-03      10-May-03             *                  $      *             $    *              $    *             $     *
  11-May-03      10-Jun-03             *                  $      *             $    *              $    *             $     *
  11-Jun-03      10-Jul-03             *                  $      *             $    *              $    *             $     *
  11-Jul-03      10-Aug-03             *                  $      *             $    *              $    *             $     *
  11-Aug-03      10-Sep-03             *                  $      *             $    *              $    *             $     *
  11-Sep-03      10-Oct-03             *                  $      *             $    *              $    *             $     *
  11-Oct-03      10-Nov-03             *                  $      *             $    *              $    *             $     *
  11-Nov-03      10-Dec-03             *                  $      *             $    *              $    *             $     *
  11-Dec-03      10-Jan-04             *                  $      *             $    *              $    *             $     *
  11-Jan-04      10-Feb-04             *                  $      *             $    *              $    *             $     *
  11-Feb-04      10-Mar-04             *                  $      *             $    *              $    *             $     *
  11-Mar-04      10-Apr-04             *                  $      *             $    *              $    *             $     *
  11-Apr-04      10-May-04             *                  $      *             $    *              $    *             $     *
  11-May-04      10-Jun-04             *                  $      *             $    *              $    *             $     *
  11-Jun-04      10-Jul-04             *                  $      *             $    *              $    *             $     *
  11-Jul-04      10-Aug-04             *                  $      *             $    *              $    *             $     *
  11-Aug-04      10-Sep-04             *                  $      *             $    *              $    *             $     *
  11-Sep-04      10-Oct-04             *                  $      *             $    *              $    *             $     *
  11-Oct-04      10-Nov-04             *                  $      *             $    *              $    *             $     *
  11-Nov-04      10-Dec-04             *                  $      *             $    *              $    *             $     *
  11-Dec-04      10-Jan-05             *                  $      *             $    *              $    *             $     *
  11-Jan-05      10-Feb-05             *                  $      *             $    *              $    *             $     *
  11-Feb-05      10-Mar-05             *                  $      *             $    *              $    *             $     *
  11-Mar-05      10-Apr-05             *                  $      *             $    *              $    *             $     *
</TABLE>

*    Confidential treatment has been requested for certain portions of this
     document pursuant to an application for confidential treatment sent to the
     Securities and Exchange Commission.  Such portions are omitted from this
     filing and are filed separately with the Securities and Exchange
     Commission.

<PAGE>

<TABLE>
  <S>            <C>              <C>                   <C>                  <C>                 <C>                <C>
  11-Apr-05      10-May-05                  *           $          *         $         *         $        *         $     *
  11-May-05      10-Jun-05                  *           $          *         $         *         $        *         $     *
  11-Jun-05      10-Jul-05                  *           $          *         $         *         $        *         $     *
  11-Jul-05      10-Aug-05                  *           $          *         $         *         $        *         $     *
  11-Aug-05      10-Sep-05                  *           $          *         $         *         $        *         $     *
  11-Sep-05      10-Oct-05                  *           $          *         $         *         $        *         $     *
  11-Oct-05      10-Nov-05                  *           $          *         $         *         $        *         $     *
  11-Nov-05      10-Dec-05                  *           $          *         $         *         $        *         $     *
  11-Dec-05      10-Jan-06                  *           $          *         $         *         $        *         $     *
  11-Jan-06      10-Feb-06                  *           $          *         $         *         $        *         $     *
  11-Feb-06      10-Mar-06                  *           $          *         $         *         $        *         $     *
  11-Mar-06      10-Apr-06                  *           $          *         $         *         $        *         $     *
  11-Apr-06      10-May-06                  *           $          *         $         *         $        *         $     *
  11-May-06      10-Jun-06                  *           $          *         $         *         $        *         $     *
  11-Jun-06      10-Jul-06                  *           $          *         $         *         $        *         $     *
  11-Jul-06      10-Aug-06                  *           $          *         $         *         $        *         $     *
  11-Aug-06      10-Sep-06                  *           $          *         $         *         $        *         $     *
  11-Sep-06      10-Oct-06                  *           $          *         $         *         $        *         $     *
  11-Oct-06      10-Nov-06                  *           $          *         $         *         $        *         $     *
  11-Nov-06      10-Dec-06                  *           $          *         $         *         $        *         $     *
  11-Dec-06      10-Jan-07                  *           $          *         $         *         $        *         $     *
  11-Jan-07      10-Feb-07                  *           $          *         $         *         $        *         $     *
  11-Feb-07      10-Mar-07                  *           $          *         $         *         $        *         $     *
  11-Mar-07      10-Apr-07                  *           $          *         $         *         $        *         $     *
  11-Apr-07      10-May-07                  *           $          *         $         *         $        *         $     *
  11-May-07      10-Jun-07                  *           $          *         $         *         $        *         $     *
  11-Jun-07      10-Jul-07                  *           $          *         $         *         $        *         $     *
  11-Jul-07      10-Aug-07                  *           $          *         $         *         $        *         $     *
  11-Aug-07      10-Sep-07                  *           $          *         $         *         $        *         $     *
  11-Sep-07      10-Oct-07                  *           $          *         $         *         $        *         $     *
  11-Oct-07      10-Nov-07                  *           $          *         $         *         $        *         $     *
  11-Nov-07      10-Dec-07                  *           $          *         $         *         $        *         $     *
  11-Dec-07      10-Jan-08                  *           $          *         $         *         $        *         $     *
  11-Jan-08      10-Feb-08                  *           $          *         $         *         $        *         $     *
  11-Feb-08      10-Mar-08                  *           $          *         $         *         $        *         $     *
  11-Mar-08      10-Apr-08                  *           $          *         $         *         $        *         $     *
  11-Apr-08      10-May-08                  *           $          *         $         *         $        *         $     *
  11-May-08      10-Jun-08                  *           $          *         $         *         $        *         $     *
  11-Jun-08      10-Jul-08                  *           $          *         $         *         $        *         $     *
  11-Jul-08      10-Aug-08                  *           $          *         $         *         $        *         $     *
  11-Aug-08      10-Sep-08                  *           $          *         $         *         $        *         $     *
  11-Sep-08      10-Oct-08                  *           $          *         $         *         $        *         $     *
  11-Oct-08      10-Nov-08                  *           $          *         $         *         $        *         $     *
  11-Nov-08      10-Dec-08                  *           $          *         $         *         $        *         $     *
  11-Dec-08      10-Jan-09                  *           $          *         $         *         $        *         $     *
  11-Jan-09      10-Feb-09                  *           $          *         $         *         $        *         $     *
  11-Feb-09      10-Mar-09                  *           $          *         $         *         $        *         $     *
  11-Mar-09      10-Apr-09                  *           $          *         $         *         $        *         $     *
  11-Apr-09      10-May-09                  *           $          *         $         *         $        *         $     *
  11-May-09      10-Jun-09                  *           $          *         $         *         $        *         $     *
  11-Jun-09      10-Jul-09                  *           $          *         $         *         $        *         $     *
  11-Jul-09      10-Aug-09                  *           $          *         $         *         $        *         $     *
  11-Aug-09      10-Sep-09                  *           $          *         $         *         $        *         $     *
  11-Sep-09      10-Oct-09                  *           $          *         $         *         $        *         $     *
  11-Oct-09      10-Nov-09                  *           $          *         $         *         $        *         $     *
  11-Nov-09      10-Dec-09                  *           $          *         $         *         $        *         $     *
  11-Dec-09      10-Jan-10                  *           $          *         $         *         $        *         $     *
  11-Jan-10      10-Feb-10                  *           $          *         $         *         $        *         $     *
</TABLE>

*    Confidential treatment has been requested for certain portions of this
     document pursuant to an application for confidential treatment sent to the
     Securities and Exchange Commission.  Such portions are omitted from this
     filing and are filed separately with the Securities and Exchange
     Commission.
<PAGE>

<TABLE>
  <S>            <C>              <C>                   <C>                  <C>                 <C>                <C>
  11-Feb-10      10-Mar-10           *                  $        *           $        *          $        *         $      *
  11-Mar-10      10-Apr-10           *                  $        *           $        *          $        *         $      *
  11-Apr-10      10-May-10           *                  $        *           $        *          $        *         $      *
  11-May-10      10-Jun-10           *                  $        *           $        *          $        *         $      *
  11-Jun-10      10-Jul-10           *                  $        *           $        *          $        *         $      *
  11-Jul-10      10-Aug-10           *                  $        *           $        *          $        *         $      *
  11-Aug-10      10-Sep-10           *                  $        *           $        *          $        *         $      *
  11-Sep-10      10-Oct-10           *                  $        *           $        *          $        *         $      *
  11-Oct-10      10-Nov-10           *                  $        *           $        *          $        *         $      *
  11-Nov-10      10-Dec-10           *                  $        *           $        *          $        *         $      *
  11-Dec-10      10-Jan-11           *                  $        *           $        *          $        *         $      *
  11-Jan-11      10-Feb-11           *                  $        *           $        *          $        *         $      *
  11-Feb-11      10-Mar-11           *                  $        *           $        *          $        *         $      *
  11-Mar-11      10-Apr-11           *                  $        *           $        *          $        *         $      *
  11-Apr-11      10-May-11           *                  $        *           $        *          $        *         $      *
  11-May-11      10-Jun-11           *                  $        *           $        *          $        *         $      *
  11-Jun-11      10-Jul-11           *                  $        *           $        *          $        *         $      *
  11-Jul-11      10-Aug-11           *                  $        *           $        *          $        *         $      *
  11-Aug-11      10-Sep-11           *                  $        *           $        *          $        *         $      *
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  11-Dec-13      10-Jan-14           *                  $        *           $        *          $        *         $      *
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  11-Nov-14      10-Dec-14           *                  $        *           $        *          $        *         $      *
</TABLE>

*    Confidential treatment has been requested for certain portions of this
     document pursuant to an application for confidential treatment sent to the
     Securities and Exchange Commission.  Such portions are omitted from this
     filing and are filed separately with the Securities and Exchange
     Commission.

<PAGE>

<TABLE>
  <S>            <C>              <C>                   <C>                  <C>                 <C>                <C>
  11-Dec-14      10-Jan-15           *                  $        *           $        *          $        *         $     *
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</TABLE>

*    Confidential treatment has been requested for certain portions of this
     document pursuant to an application for confidential treatment sent to the
     Securities and Exchange Commission. Such portions are omitted from this
     filing and are filed separately with the Securities and Exchange
     Commission.
<PAGE>

<TABLE>
  <S>            <C>              <C>                    <C>                 <C>                  <C>                <C>
  11-Oct-19      10-Nov-19              *                $        *          $        *           $        *         $     *
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  11-Mar-21      10-Apr-21              *                $        *          $        *           $        *         $     *
</TABLE>

*    Confidential treatment has been requested for certain portions of this
     document pursuant to an application for confidential treatment sent to the
     Securities and Exchange Commission. Such portions are omitted from this
     filing and are filed separately with the Securities and Exchange
     Commission.<PAGE>

                                                                   EXHIBIT 10.39

                             EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (this "Agreement") is made by and between Exodus
                                      ---------
Communications, Inc., a Delaware corporation ("Exodus") and Richard S. Stoltz, a
                                               ------
California resident ("Employee").
                      --------

                                  BACKGROUND
                                  ----------

     This Agreement is entered into in connection with the change in Employee's
job duties and responsibilities at Exodus.  From 1995 until January 30, 2000,
Employee served as the Chief Financial Officer and Chief Operating Officer of
Exodus.  Commencing January 31, 2000 (the "Effective Date"), employee ceased to
serve in such capacities and became the Senior Advisor, Strategy and Finance of
Exodus. Exodus desires to retain the services of Employee from and after the
Effective Date, and Employee desires to become and remain employed by Exodus
from and after the Effective Date, on the terms and conditions set forth in this
Agreement.

     NOW, THEREFORE, in consideration of the foregoing and the mutual agreements
of the parties contained herein, Exodus and Employee hereby agree as follows:

     1.   Employment.  Exodus will employ Employee and Employee accepts
          ----------
employment with Exodus during the period commencing on the Effective Date and
ending on April 8, 2002 (the "Applicable Date"), unless Employee's employment is
                              ---------------
sooner terminated in accordance with Section 9 of this Agreement.

     2. Duties. Employee will be an employee of Exodus and will serve as Senior
        ------
Advisor, Strategy and Finance reporting to Ellen M. Hancock. Employee agrees
that, to the best of his ability and experience, he will perform the duties and
obligations to which he and Exodus mutually agree.

     3.   Exclusive Employment.   During Employee's employment hereunder,
          --------------------
Employee will not serve as an employee of any other business.  Nothing in this
Agreement shall be construed as preventing Employee from (i) engaging in
religious, charitable, academic, civic or other community or non-profit
activities or (ii) sitting on the board of directors or advisory board of any
business organization, so long as none of the foregoing activities constitute a
conflict of interest with Exodus.

     4.   Base Salary and Bonus.  Employee's base salary will continue unchanged
          ---------------------
through April 8, 2000. Thereafter, Employee's base salary for the period
commencing April 9, 2000 to and through the Applicable Date will be no less than
$50,000 per year. Employee's salary will be payable on Exodus' regular payroll
dates, less required withholdings. Employee will also be eligible to receive
bonuses under Exodus' bonus programs.

     5.   Stock Options.  Prior to the date of this Agreement, and pursuant to
          -------------
Exodus' Equity Incentive Plans, Employee was granted options by Exodus to
purchase shares of Exodus Common Stock (collectively such options are referred
to herein as the "Options"). The Options shall continue to vest up to and
                  -------
through the Applicable Date. If Employee is terminated by Exodus without Cause
(as defined below) prior to the Applicable Date, the Options shall continue to
vest through the Applicable Date notwithstanding any terms of the Options to the
contrary. If Employee (a) voluntarily terminates his employment with Exodus at
<PAGE>

any time by submitting notice of such resignation pursuant to Section 10 or (b)
is terminated by Exodus for any reason after the Applicable Date, the Options
shall cease vesting in accordance with their terms.

     6. Employee Benefits. Employee will be entitled to and will receive
        -----------------
insurance (including, but not limited to, medical and dental, life, short and
long-term disability insurance), vacation and other benefits commensurate with
those provided to executives of Exodus. Vacation accrued, but not used, by
Employee prior to the Effective Date shall be honored by Exodus.

     7.   Reimbursement of Business Expenses.  Exodus will, in accordance with
          ----------------------------------
Exodus' policies in effect from time to time, reimburse Employee for all
reasonable business expenses incurred by Employee in connection with the
performance of his duties under this Agreement, upon submission of the
documentation required pursuant to such standard policies and record keeping
procedures.

     8.   Invention Assignment and Confidentiality Agreement. Employee reaffirms
          --------------------------------------------------
his obligations under the Employee Invention Assignment and Confidentiality
Agreement, a copy of which is attached to this Agreement as Exhibit A (the
                                                            ---------
"Employee Invention Assignment and Confidentiality Agreement"). Employee agrees
 -----------------------------------------------------------
that he will continue to be bound by the Employee Invention Assignment and
Confidentiality Agreement.

     9.   Termination.
          -----------

          (a) By the Employee.  Employee may terminate his employment at any
              ---------------
time, provided that Employee provides two weeks advance written notice to Exodus
of such termination. Employee shall be entitled to receive all accrued and
unpaid salary, earned bonuses and vacation upon such termination. Upon such
voluntary termination, the Options shall cease to vest in accordance with their
terms.

          (b) By the Employer.  Exodus may terminate Employee's employment at
              ---------------
any time with "Cause" (as defined below) upon written notice to Employee and
upon thirty days advance written notice to Employee if without Cause. If Exodus
terminates Employee for Cause, this Agreement shall terminate and Employee shall
not be entitled to any further benefits hereunder, except for accrued and unpaid
salary, bonus and vacation. If Exodus terminates Employee and such termination
is without Cause, Exodus will pay to Employee his earned but unpaid salary (and
commissions, as applicable), accrued vacation and earned bonuses. In addition,
if Exodus terminates Employee without Cause, Employee shall continue to vest in
the Options through the Applicable Date as set forth in Section 5, above,
regardless of the terms of the Options. In all respects other than vesting, the
terms of the Options shall govern.

               For purposes of this Agreement, "Cause" shall mean:
                                                -----

               (i)  Employee being convicted of a felony;
               (ii) Employee committing a material act of dishonesty or fraud
against, or misappropriating material property belonging to, Exodus, or its
affiliates; or

                                       2
<PAGE>

               (iii)  Any material breach by Employee of the obligations set
forth in the Employee Invention Assignment and Confidentiality Agreement, or any
material violation by the Employee of an employment policy of Exodus, which
results in material liability to Exodus.

          (c)  Upon Death or Disability.  If Employee dies or becomes disabled
               ------------------------
during the term of this Agreement, Exodus will pay his estate, in the case of
his death, or Employee, in the case of his disability, an amount equal to all
salary, bonuses and benefits accrued through the date of termination, and the
period of time in which Employee and/or his estate shall have to exercise vested
Options shall be extended pursuant to the terms of the Options.

     10.  Miscellaneous.
          -------------

          (a)  Notices.  Any and all notices permitted or required to be given
               -------
under this Agreement must be in writing.  Notices will be deemed given (i) when
personally received or when sent by facsimile transmission (to the receiving
party's facsimile number), (ii) on the first business day after having been sent
by commercial overnight courier with written verification of receipt, or (iii)
on the third business day after having been sent by registered or certified mail
from a location on the United States mainland, return receipt requested, postage
prepaid, whichever occurs first, at the address set forth below or at any new
address, notice of which will have been given in accordance with this Section
10(a):

     If to Exodus:       Exodus Communications, Inc.
                         2831 Mission College Blvd.
                         Santa Clara, California 95054
                         Attn: Adam Wegner, General Counsel

     If to Employee:     Richard S. Stoltz
                         112 Frederick Street
                         Santa Cruz, CA 95062

          (b)  Entire Agreement/Amendments.  This Agreement, including the
               ---------------------------
exhibits attached hereto and the Options, contains the entire agreement and
supersedes and replaces all prior agreements between Exodus and Employee,
including but not limited to the Executive Employment Policy, concerning
Employee's employment; provided, however, Section 5 hereof shall apply
notwithstanding the terms of the Options. The express terms hereof control and
supersede any course of performance or usage of trade inconsistant with any of
the terms hereof. This Agreement may not be changed or modified in whole or in
part except by a writing signed by the party against whom enforcement of the
change or modification is sought.

          (c)  Successors and Assigns.  This Agreement will not be assignable by
               ----------------------
either Employee or Exodus, except that the rights and obligations of Exodus
under this Agreement may be assigned to a corporation which becomes the
successor to Exodus as the result of a merger or other corporate reorganization
and which continues the business of Exodus, or any other subsidiary of Exodus,
provided that Exodus guarantees the performance by such assignee of Exodus'
obligations hereunder.

                                       3
<PAGE>

          (d)  Governing Law. This Agreement will be governed by and interpreted
               -------------
according to the substantive laws of the State of California without regard to
such state's conflicts laws.

          (e)  No Waiver.  The failure of either party to insist on strict
               ---------
compliance with any of the terms of this Agreement in any instance or instances
will not be deemed to be a waiver of any term of this Agreement or of that
party's right to require strict compliance with the terms of this Agreement in
any other instance.

          (f)  Severability.  Employee and Exodus recognize that the limitations
               ------------
contained herein are reasonably and properly required for the adequate
protection of the interests of Exodus.  If for any reason a court of competent
jurisdiction or binding arbitration proceeding finds any provision of this
Agreement, or the application thereof, to be unenforceable, the remaining
provisions of this Agreement will be interpreted so as best to reasonably effect
the intent of the parties.  The parties further agree to replace any such
invalid or unenforceable provisions with valid and enforceable provisions
designed to achieve, to the extent possible, the business purposes and intent of
such unenforceable provisions.

          (g)  Counterparts.  This Agreement may be executed in counterparts
               ------------
which when taken together will constitute one instrument.  Any copy of this
Agreement with the original signatures of all parties appended will constitute
an original.

          (h)  Attorneys' Fees.  It is the intent of the parties that neither
               ---------------
the Executive nor the Company shall be required to incur the expenses associated
with the enforcement of their respective rights under this Agreement.
Accordingly, the prevailing party in any litigation, arbitration or other legal
action involving the enforcement of this Agreement is entitled to reimbursement
from the other party for all reasonable attorneys' fees and costs incurred by
the prevailing party.

     IN WITNESS WHEREOF, this Agreement is made and effective as set forth
herein.

EXODUS COMMUNICATIONS, INC.:                     EMPLOYEE:

By /s/ Ellen M. Hancock                          /s/ Richard S. Stoltz
---------------------------------                -------------------------
   Name:                                         Richard S. Stoltz
   Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]