Document:

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                                                                   EXHIBIT 10.33

                           NETWORKS ASSOCIATES, INC.

                      GEORGE SAMENUK EMPLOYMENT AGREEMENT

     This Agreement is made by and between Networks Associates, Inc. (the
"Company"), and George Samenuk  ("Executive") as of January 2, 2001.

     1.   Duties and Scope of Employment.

          (a)  Positions; Employment Commencement Date; Duties.  Executive's
employment with the Company pursuant to this Agreement shall commence upon
January 3, 2001 (the "Employment Commencement Date"). As of the Employment
Commencement Date, the Company shall employ the Executive as the President and
Chief Executive Officer of the Company reporting directly to the Board of
Directors of the Company (the "Board"). The period of Executive's employment
hereunder is referred to herein as the "Employment Term." During the Employment
Term, Executive shall render such business and professional services in the
performance of his duties, consistent with Executive's position within the
Company, as shall reasonably be assigned to him by the Board.

          (b)  Board Position and Duties.  Upon the Employment Commencement
Date, Executive shall be appointed to the Board. The Board agrees to work with
Executive to effect his transition to the position of Chairman of the Board no
later than six (6) months following the Employment Commencement Date.

          (c)  Obligations.  During the Employment Term, Executive shall devote
his full business efforts and time to the Company. Executive agrees, during
the Employment Term not to actively engage in any other employment, occupation
or consulting activity for any direct or indirect remuneration without the
prior approval of the Board; provided, however, that Executive may serve in any
capacity with any civic, educational or charitable organization, or as a member
of corporate Boards of Directors or committees thereof without obtaining such
prior approval, so long as such corporation does not compete with the Company.

     2.   Employee Benefits.  During the Employment Term, Executive shall be
eligible to participate in the employee and fringe benefit plans maintained by
the Company that are applicable to other senior management to the full extent
provided for under those plans; provided, however, that Executive shall be
allowed to maintain his coverage under the $10 million term life insurance
policy and the long-term disability insurance policy previously paid for by his
prior employer (the "Prior Life and LTD Coverage"), and the Company, during the
Employment Term, shall either pay the premiums for such coverage directly to
the applicable insurance carriers or shall reimburse Executive for such
coverage directly to the applicable insurance carriers or shall reimburse
Executive for the premiums that he pays to maintain such coverage. During the
period of any such Company-paid Prior Life and LTD Coverage, Executive shall not
be covered by the life insurance and long-term disability programs of the
Company. In the event that, upon or at any time during the Employment Term,
Executive ceases to be covered pursuant to the Prior Life and LTD Coverage,
Executive shall become covered under the life insurance and long-term
disability plans of the Company to the full extent provided for under those
plans. In addition, during the Employment Term, the Company shall pay the cost
of any COBRA payments to insure continuing medical

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coverage for Executive, his spouse, and his dependent children until their
transfer to the Company's medical insurance plan is effected.

     3.   Vacation. During the Employment Term, Executive shall be eligible for
paid vacation in accordance with the Company's standard policy for senior
management employees, as it may be amended from time to time; provided,
however, that Executive will receive at least fifteen (15) days of paid
vacation per year.

     4.   Business Expense Reimbursements. During the Employment Term,
Executive shall be authorized to incur necessary and reasonable travel,
entertainment and other business expenses in connection with his duties
hereunder. The Company shall reimburse Executive for such expenses upon
presentation of an itemized account and appropriate supporting documentation,
all in accordance with the Company's generally applicable policies.

     5.   Relocation and Temporary Living Expenses.

          (a)  Relocation Assistance. In connection with Executive's relocation
to the San Francisco Bay Area, the Company will reimburse Executive for the
following reasonable costs:

               (i)   Transaction costs associated with Executive buying a new
residence in the San Francisco Bay Area (including, but not limited to, closing
costs, inspection costs, title insurance costs, brokerage fees and related
fees, etc.).

               (ii)  Transaction costs associated with Executive selling his
existing residence (including, but not limited to, closing costs, inspection
costs, title insurance costs, brokerage fees and related fees, etc.).

               (iii) Costs associated with moving vehicles, household
furnishings and personal effects (including packing and unpacking of household
goods) of Executive and his family to the San Francisco Bay Area.

               (iv)  Costs associated with two house-hunting trips by Executive
and his family to the San Francisco Bay Area (including, but not limited to,
airfare, travel transportation, lodging and meals).

               (v)   Transportation costs associated with Executive and his
family moving to the San Francisco Bay Area.

          (b)  Gross Up Payment. To the extent that the Company's payment or
reimbursement of the relocation costs in Section 5(a) above is taxable to
Executive, the Company will make a tax gross up payment to Executive which,
after the deduction of all applicable taxes, will leave a net amount equal to
the tax payments due.

          (c)  Temporary Living Expenses. The Company will pay for Executive's
temporary living costs until the earlier of October 3, 2001 or such time as
Executive, his spouse, and dependent children permanently relocate to the San
Francisco Bay Area and have moved into a permanent residence in the Bay Area.
The Company and Executive agree that such costs cannot be fully anticipated at
this time, and may include, but are not limited to the following: (i) a monthly

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housing allowance, subject to a maximum monthly payment which, once any
applicable taxes are withheld, will leave a net monthly housing allowance to
Executive of $12,000; Executive may use this monthly allowance for the rental of
temporary housing in the Bay Area comparable to his current residence; and (ii)
reimbursement for weekly weekend airfares for Executive to return home on
commercial airlines. It is expected that Executive will make reasonable efforts
to coordinate these weekend trips home with regular business trips. In the event
that there are additional unanticipated temporary living expenses, the Company
will evaluate in good faith payment of such expenses with the intent to make
Executive whole. To the extent that the Company's payment or reimbursement of
the weekly weekend airfares provided by this Section 5(c) is taxable to
Executive, the Company will make a tax gross up payment to Executive which after
the deduction of all applicable taxes, will leave a net amount equal to the tax
payments due.

     6.   At-Will Employment. Executive and the Company understand and
acknowledge that Executive's employment with the Company constitutes "at-will"
employment. Subject to the Company's obligation to provide severance benefits as
specified herein, Executive and the Company acknowledge that this employment
relationship may be terminated at any time, upon written notice to the other
party, with or without good cause or for any or no reason, at the option either
of the Company or Executive.

     7.   Compensation.

          (a)  Base Salary. During the Employment Term, the Company shall pay
the Executive as compensation for his services a base salary at the annualized
rate of seven hundred and twenty thousand dollars ($720,000). Such base salary
shall be paid periodically in accordance with normal Company payroll practices
and subject to the usual, required withholding. Executive's annualized base
salary shall be reviewed annually by the Compensation Committee of the Board for
possible adjustments in light of Executive's performance and competitive data
and, if appropriate, Executive's annualized base salary shall be increased. (The
annualized base salary to be paid to Executive pursuant to this Section 7(a),
together with any subsequent increases thereto, shall be referred to in this
Agreement as the "Base Salary.")

          (b)  Bonuses. Executive shall be eligible to earn an annual target
bonus equal to one hundred percent (100%) of Base Salary based upon achievement
of goals mutually agreed upon by the Company and the Executive for each calendar
year starting the year commencing January 1, 2001. (Executive's annual target
bonus opportunity provided by this Section 7(b), together with any subsequent
increases thereto, shall be referred to in this Agreement as the "Target
Bonus.")

          (c)  Loan. The Company shall grant to Executive an interest-free loan
of up to the lesser of (i) six million dollars ($6,000,000) or (ii) 80% of the
new home's sale price to Executive, to purchase a primary residence in the San
Francisco Bay Area (the "Relocation Loan"). The Relocation Loan shall be
fully-recourse and additionally secured by the primary residence. The Relocation
Loan will be due and payable on the earlier of (i) four years following the
Employment Commencement Date; or (ii) nine months following any termination of
Executive's employment with the Company. The Company will work with Executive to
determine the most tax-effective manner to structure the Relocation Loan.

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          (d)  Sign-On Bonus. Subject to accelerated payment as provided in
Sections 7(g)(ii) and 7(g)(iii) below, the Company will pay Executive two
hundred thousand dollars ($200,000) within one week of the Employment
Commencement Date and fifty thousand dollars ($50,000) on each of the first
twelve monthly anniversaries of the Employment Commencement Date for a total
sign-on bonus of eight hundred thousand dollars ($800,000) (the "Sign-On
Bonus"), subject to Executive being employed by the Company as of each payment
date.

          (e)  Stock Option.

               (i)  Grant. As of the Employment Commencement Date, Executive
shall be granted an immediately exercisable stock option (the "Stock Option")
to purchase a total of one million and two hundred thousand (1,200,000) shares
of Company common stock subject to the 2000 Nonstatutory Stock Option Plan, as
amended, with a per share exercise price equal to the fair market value of the
shares on the date of grant. Subject to accelerated vesting provisions of this
Agreement, if Executive exercises the Stock Option early, then the Company
shall have the right to repurchase unvested shares subject to the Stock Option
at the original purchase price, in the event of the termination of Executive's
employment prior to vesting. The Stock Option shall be for a term of ten (10)
years (or shorter upon termination of employment relationship with the Company)
and, subject to accelerated vesting as set forth elsewhere herein, shall vest
as follows: (1) twenty-five percent (25%) of the shares subject to the Stock
Option shall vest, and if applicable the Company's right to repurchase the same
such 25% of the shares subject to the Stock Option will lapse, twelve (12)
months after the Employment Commencement Date and (2) one forty-eighth (1/48th)
of the shares subject to the Stock Option shall vest, and if applicable the
Company's right to repurchase the same such portion of shares subject to the
Stock Option shall lapse, each month thereafter on the third (3rd) day of each
month, so as to be one hundred percent (100%) vested on the four (4) year
anniversary of the Employment Commencement Date, conditioned upon Executive's
continued employment with the Company as of each vesting date. Except as
specified otherwise herein, these option grants are in all respects subject to
the terms, definitions and provisions of the Company's 2000 Nonstatutory Stock
Option Plan and the standard form of stock option agreement thereunder (the
"Option Agreement") (as necessarily modified so as not to conflict with the
provisions of this Agreement), which documents are incorporated herein by
reference.

          (f)  Restricted Stock.

               (i)  Grant. On the Employment Commencement Date, Executive shall
purchase four hundred thousand (400,000) shares of the Company's Common Stock
(the "Restricted Stock"), subject to the 2000 Nonstatutory Stock Option Plan, at
a price of $0.01 per share, which is equal to the par value of the stock.
Subject to accelerated vesting as provided elsewhere in this Agreement, the
Restricted Stock shall vest and the Company's right to repurchase the Restricted
Stock shall lapse, with respect to one-eighth (1/8) of the Restricted Stock on
each of the first four quarterly anniversaries of the Employment Commencement
Date. The Company's right to repurchase the Restricted Stock shall lapse as to
the remaining fifty percent (50%) of the Restricted Stock and the Restricted
Stock shall vest on the second (2nd) year anniversary of the Employment
Commencement Date, so as to be one hundred percent (100%) vested on the second
(2nd) year anniversary of the Employment Commencement Date. All vesting provided
for in this Section 7(f)(i) is subject to Executive's continued employment with
the Company as of each vesting date. This purchase is subject to Executive
entering into the Company's form of Restricted Stock Purchase

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Agreement, as necessarily modified so as not to conflict with the provisions of
this Agreement, which provides the Company with the right to repurchase
unvested shares at the original purchase price in the event of Executive's
termination of employment prior to vesting and other standard terms and
conditions.

                  (ii)  Loan for Tax Payments. If Executive so requests, the
Company will loan to Executive such amounts as are necessary to pay all taxes
due upon the vesting of the Restricted Stock. The loans will be made subject to
Executive executing a full recourse promissory note and will be at the lowest
interest rates permissible to avoid imputed income and will be secured by those
shares of stock equal to the amount of the particular loan. The loans will be
due two years after the date of the loans.

            (g)   Severance.

                  (i)   Termination For Any Reason. Notwithstanding Executive's
entitlement to severance benefits under certain circumstances discussed below
in this Section 7(g), upon the termination of Executive's employment for any
reason, the Company shall pay Executive all Base Salary, bonus, and accrued but
unpaid vacation earned through the date of termination, reimburse Executive for
all necessary and reasonable expenses in accordance with Section 4 and for any
other expenses pursuant to this Agreement for which reimbursement is still due,
and continue Executive's benefits under the Company's then-existing benefit
plans and policies for so long as provided under the terms of such plans and
policies and as required by applicable law.

                  (ii)  Upon Termination Other Than for Cause or Resignation
for Good Reason Prior to Change of Control. If, prior to a Change of Control,
Executive resigns his employment with the Company for Good Reason or
Executive's employment is terminated by the Company other than for (x) Cause,
(y) Executive's death, or (z) Executive's Total Disability, then, subject to
Executive executing, and not revoking, the Mutual Release of Claims attached
hereto as Exhibit A with the Company and not materially breaching the
provisions of Section 17 hereof, (1) Executive's Stock Option and Executive's
Restricted Stock each shall have their vesting accelerated to receive an
additional twelve (12) months of vesting, and, if applicable, the right of
repurchase applicable to the shares subject to the Stock Option and/or the
Restricted Stock shall lapse as if Executive had worked for the Company for an
additional twelve (12) months, (2) Executive shall receive 24 monthly payments,
each equal to 1/24 of the sum of twice Executive's Base Salary plus twice his
Target Bonus, less applicable withholding, and otherwise in accordance with the
Company's standard payroll practices, (3) the Company shall pay the group
health, dental and vision plan continuation coverage premiums for Executive and
his covered dependents under Title X of the Consolidated Budget Reconciliation
Act of 1985, as amended ("COBRA") through the lesser of (x) eighteen (18)
months from the date of Executive's termination of employment, or (y) the date
upon which Executive and his covered dependents are covered by similar plans of
Executive's new employer, (4) the Company shall pay Executive a lump sum
payment of any remaining portion of the Full Sign-On Bonus that had not already
been paid to Executive, and (5) the Company shall provide Executive with all
other Company welfare plan and fringe benefits, and continued life insurance
and long-term disability coverage (including the Prior Life and LTD coverage),
in which Executive participated prior to his termination through the lesser of
(x) eighteen (18) months from the date of Executive's termination of
employment, or (y) the date upon which Executive and his covered dependents are
covered by similar plans of Executive's new employer,

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and if Executive is ineligible to continue participating in one or more of such
benefit plans or programs of the Company, the Company shall provide Executive
with such benefits on an equivalent basis, including a full Tax Gross-Up to
Executive (which, after deduction of all applicable taxes, will leave a net
amount equal to the tax payments due) to the extent such benefits constitute
taxable income to the Executive but were provided to Executive on a non-taxable
basis while Executive was employed by the Company.

               (iii) Upon Termination Other Than for Cause of Resignation for
Good Reason On or At Any Time Following Change of Control. If, on or at any
time following a Change of Control, Executive resigns his employment with the
Company for Good Reason, or Executive's employment with the Company is
terminated by the Company other than for (x) Cause, (y) Executive's death, or
(z) Executive's Total Disability, then, subject to Executive executing, and not
revoking, the Mutual Release of Claims attached hereto as Exhibit A with the
Company and not materially breaching the provisions of Section 17 hereof, the
Company shall provide Executive with all of the severance benefits listed in
Section 7(g)(ii), except that all of the remaining unvested shares subject to
Executive's Stock Option and all of the remaining unvested shares subject to
Executive's Restricted Stock immediately shall have their vesting accelerated
in full, and if applicable the Company's right to repurchase all of the same
such shares immediately shall lapse.

               (iv) Upon Termination Due to Death. In the event that
Executive's employment terminates due to his death, then an additional amount
of shares equal to fifty percent (50%) of the unvested shares subject to
Executive's Stock Option and Restricted Stock (but not more than the total
number of shares subject to each) immediately shall have their vesting
accelerated in full, and if applicable the Company's right to repurchase the
same such fifty percent (50%) of the unvested shares immediately shall lapse.

               (v) Resignation Other Than For Good Reason or Termination for
Cause. Except as otherwise specified in herein, in the event Executive
terminates his employment other than for Good Reason or Executive's employment
is terminated by the Company for Cause or due to Executive's Total Disability,
then all vesting of the Stock Option, Restricted Stock and any other equity
compensation shall terminate immediately and all payments of compensation by
the Company to Executive hereunder shall immediately terminate (except as to
amounts already earned, as specified in Section 7(g)(i) above).

               (vi) Definitions.

                    (1) Termination for Cause. For the purposes of this
Agreement, a termination of Executive's employment for "Cause" means a
termination of Executive's employment by the Company based upon a good faith
determination by the Board that one or more of the following has occurred: a)
Executive's commission of a material act of fraud with respect to the Company in
connection with Executive carrying out his responsibilities as an employee, b)
Executive's conviction of, or plea of nolo contendere to, a felony, c)
Executive's gross misconduct in connection with the performance of his duties
hereunder, or d) Executive's material breach of his obligations under this
Agreement; provided, however, that with respect to clauses c) and d), the
Company must first give Executive a written notice and explanation specifying
the basis for the Board's determination of the existence of "Cause" for
termination and then provide Executive with at least thirty (30) days after
delivery of such written notice and explanation to cure

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the alleged basis for the Board's determination. A termination of Executive's
employment by the Company for any other reason or under any other
circumstances, except Executive's death or Total Disability, will be a
termination other than for Cause.

               (2)  Change of Control. For the purposes of this Agreement,
"Change of Control" is defined as:

                    a)   Any "person" (as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the
"beneficial owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or
more of the total voting power represented by the Company's then outstanding
voting securities; or

                    b)   A change in the composition of the Board occurring
within a two-year period, as a result of which fewer than a majority of the
directors are Incumbent Directors. "Incumbent Directors" shall mean directors
who either i) are directors of the Company as of the date hereof, or ii) are
elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of the Incumbent Directors at the time of such election or
nomination (but shall not include an individual whose election or nomination is
in connection with an actual or threatened proxy contest relating to the
election of directors to the Company); or

                    c)   The consummation of a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining out-standing or by
being converted into voting securities of the surviving entity) at least fifty
percent (50%) of the total voting power represented by the voting securities of
the Company or such surviving entity outstanding immediately after such merger
or consolidation; or

                    d)   The consummation of the sale by the Company of all or
substantially all of the Company's assets.

               (3)  Resignation for Good Reason. For the purposes of this
Agreement, a resignation for "Good Reason" means the resignation by Executive of
his employment within ninety (90) days of the occurrence of any one or more the
following events without Executive's written consent, which consent may be
withheld in Executive's sole discretion: a) a reduction by the Company or a
successor in Executive's Base Salary and/or Target Bonus, b) a material
reduction by the Company or a successor in Executive's benefits, c) a reduction
by the Company or a successor in Executive's title and/or a material reduction
in Executive's authority and/or duties, d) a change in Executive's reporting
relationship such that he no longer reports directly to the Board or the Board
of Directors of the Company's successor; e) the requirement that Executive
relocate more than thirty-five (35) miles from his then-current office location;
f) the failure of the Company to make Executive Chairman of the Board by on or
before July 3, 2001; or g) the failure of any successor to the Company to assume
this Agreement pursuant to Section 8 below; provided, however, that Executive
shall first provide the Board with a written notice and explanation specifying
the basis for his determination of the existence of Good Reason for his
resignation and then provide the Board with at least thirty (30) days after
delivery of such written notice and explanation in which to cure such basis, and
further provided that Good Reason will not

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exist for resignation if Executive voted in favor of a Change of Control and
following that Change of Control Executive is not made Chief Executive Officer
of the successor company, but rather, is made the head of a division,
subsidiary, or other business unit with duties, responsibilities and title
comparable to those he possessed prior to the Change of Control.

          (4) Total Disability. For the purposes of this Agreement, "Total
Disability" shall mean Executive's mental or physical impairment which prevents
Executive from performing the responsibilities and duties of his position for
180 consecutive days or six (6) months in the aggregate during any twelve (12)
month period. Any question as to the existence or extent of Executive's mental
or physical impairment upon which Executive and the Company cannot agree shall
be resolved by a qualified independent physician who is an acknowledged expert
in the area of the mental or physical impairment, selected in good faith by the
Board and approved by Executive, which approval shall not unreasonably be
withheld. Upon the existence and required duration of such Total Disability, the
Company may then terminate Executive's employment for such reason by giving
Executive written notice of termination for such reason.

     8. Assignment. This Agreement shall be binding upon and inure to the
benefit of (a) the heirs, beneficiaries, executors and legal representatives of
Executive upon Executive's death and (b) any successor of the Company. Any such
successor of the Company shall be deemed substituted for the Company under the
terms of this Agreement for all purposes. As used herein, "successor" shall
include any person, firm, corporation or other business entity which at any
time, whether by purchase, merger or otherwise, directly or indirectly acquires
all or substantially all of the assets or business of the Company. None of the
rights of Executive to receive any form of compensation payable pursuant to this
Agreement shall be assignable or transferable except through a testamentary
disposition or by the laws of descent and distribution upon the death of
Executive. Any attempted assignment, transfer, conveyance or other disposition
(other than as aforesaid) of any interest in the rights of Executive to receive
any form of compensation hereunder shall be null and void.

     9. Notices. All notices, requests, demands and other communications called
for hereunder shall be in writing and shall be deemed given if (a) delivered
personally or by facsimile, (b) one (1) day after being sent by Federal Express
or a similar commercial overnight service, or (c) three (3) days after being
mailed by registered or certified mail, return receipt requested, prepaid and
addressed to the parties or their successors in interest at the following
addresses, or at such other addresses as the parties may designate by written
notice in the manner aforesaid:

          If to the Company:  Networks Associates, Inc.
                              4099 McEwen Road
                              Dallas, TX 75244
                              Attn: General Counsel

          If to Executive:    George Samenuk
                              at the last residential address known by the
                              Company.

     10. Severability. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision.

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     11.  Indemnification. The Company and Executive agree to enter into the
Company's standard Indemnification Agreement, attached hereto as Exhibit B, upon
Executive commencing employment hereunder.

     12.  Proprietary Information Agreement. Executive agrees to enter into the
Company's standard Employment, Confidential Information and Invention Assignment
Agreement (the "Proprietary Information Agreement") upon commencing employment
hereunder, as modified so as not to conflict with the provisions of this
Agreement.

     13.  Entire Agreement. This Agreement, the Stock Plan, the Restricted Stock
Purchase Agreement, the Option Agreements, the employee and fringe benefit
referred to in Section 2, the Indemnification Agreement, and the Proprietary
Information Agreement represent the entire agreement and understanding between
the Company and Executive concerning Executive's employment relationship with
the Company, and supersede and replace any and all prior agreements and
understandings concerning Executive's employment relationship with the Company.

     14.  Non-Binding Mediation, Arbitration and Equitable Relief.

          (a)  The parties agree to make a good faith attempt to resolve any
dispute or claim arising out of or related to this Agreement through
negotiation.

          (b)  In the event that any dispute or claim arising out of or related
to this Agreement is not settled by the parties hereto, the parties will attempt
in good faith to resolve such dispute or claim by non-binding mediation in Santa
Clara County, California to be conducted by one mediator belonging to either the
American Arbitration Association or JAMS. The mediation shall be held within
thirty (30) days of the request therefor, unless the parties agree to a later
deadline. The costs of the mediation shall be borne equally by the parties to
the mediation.

          (c)  Executive and the Company each agree, to the extent permitted by
law, to arbitrate before a single neutral arbitrator, in accordance with the
National Rules for the Resolution of Employment Disputes of the American
Arbitration Association and California Code of Civil Procedure section 1283.05
regarding discovery, any dispute or controversy arising out of, relating to, or
in connection with this Agreement, or the interpretation, validity,
construction, performance, breach, or termination thereof, which has not been
resolved by negotiation or mediation as set forth in Sections 14(a) and 14(b),
except that any dispute or claim for workers' compensation benefits or
unemployment insurance benefits, shall be excluded from this agreement to
arbitrate.

          (d)  The Company shall pay the cost of the arbitration filing and
hearing fees and the cost of the arbitrator, and any other expense or cost that
is unique to arbitration or that Executive would not be required to bear if he
were free to bring the dispute or claim in court. Each party shall bear its own
attorney fees, unless otherwise determined by the arbitrator. The arbitration
shall take place in Santa Clara County, California. The arbitrator shall apply
California law, without reference to rules of conflicts of law, to the
resolution of any dispute. The arbitrator shall issue a written award that sets
forth the essential findings and conclusions on which the award is based.
Judgment on the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof. The award shall be subject to correction,
confirmation, or vacation, as provided by California Code of Civil Procedure
section 1285 et seq. and any applicable California case law setting forth the
standard

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of judicial review of arbitration awards. Notwithstanding the foregoing, the
parties may apply to any court of competent jurisdiction for preliminary or
interim equitable relief, or to compel arbitration in accordance with this
Section 14, without breach of this Section 14.

            (e)   EXECUTIVE AND THE COMPANY EACH UNDERSTAND AND AGREE THAT THE
ARBITRATION OF ANY DISPUTE OR CONTROVERSY LISTED IN SECTION 14(c) SHALL BE
INSTEAD OF A HEARING OR TRIAL BEFORE A COURT OR JURY. EXECUTIVE AND THE COMPANY
EACH UNDERSTAND THAT EXECUTIVE AND THE COMPANY ARE EXPRESSLY WAIVING ANY AND
ALL RIGHTS TO A HEARING OR TRIAL BEFORE A COURT OR JURY REGARDING ANY DISPUTE
OR CONTROVERSY LISTED IN SECTION 14(c) WHICH THEY NOW HAVE OR WHICH THEY MAY
HAVE IN THE FUTURE. Nothing in this Agreement shall be interpreted as
restricting or prohibiting Executive from filing a charge or complaint with a
federal, state or local administrative agency charged with investigating and/or
prosecuting such charges or complaints under any applicable federal, state, or
municipal law or regulation.

      15.   No Mitigation. Executive shall not be required to mitigate the
value of any severance benefits contemplated by this Agreement, nor shall any
such benefits be reduced by any earnings or benefits that Executive may receive
from any other source.

      16.   Advisor & Legal Fee Reimbursement. The Company agrees to directly
pay Executive's reasonable advisor and legal fees associated with negotiating
and entering into this Agreement and related documents up to $20,000 upon
receiving general invoices for such services.

      17.   Covenants Not to Compete and Not to Solicit.

            (a)   Covenant Not to Compete. In consideration solely for the
severance benefits that Executive would receive pursuant to Section 7(g)(ii) or
7(g)(iii) after termination of his employment, and contingent upon Executive's
actual receipt of such severance benefits, Executive agrees that, until the
earliest of (i) the end of the twenty-four (24) month period following the date
of the termination of his employment, (ii) the date on which Executive resigns
his employment other than for Good Reason or notifies the Company that he has
voluntarily elected to cease receiving severance benefits, or (iii) the date on
which the Company terminates Executive's employment for Cause or due to Total
Disability or notifies Executive that he is not entitled to any severance
benefits, Executive will not directly engage in (whether as an employee,
consultant, proprietor, partner, director or otherwise), or have any ownership
interest in, or participate in the financing, operation, management or control
of, any person, firm, corporation, business, or segment of any business that is
engaged in the design, development, marketing, distribution, or sale of
anti-virus network security software anywhere in the world; provided, however,
that nothing herein will prevent Executive from being employed by, or providing
services to, any division or business unit of any company, when that division or
business unit is not involved in the design, development, marketing,
distribution, or sale of anti-virus network security software, as long as
Executive has no responsibilities or duties for any division or business unit of
such company that is involved in the design, development, marketing,
distribution or sale of anti-virus network security software. Ownership of less
than 3% of the outstanding voting stock of a corporation or other entity will
not constitute a violation of this Section 17(a).

            (b)   Covenant Not to Solicit. In consideration for the benefits
Executive is to receive herein Executive agrees that he will not, at any time
during the twenty-four (24) months

                                      -10-
<PAGE>   11

following his termination date, directly or indirectly solicit any individuals
to leave the Company's employ for any reason or interfere in any other manner
with the employment relationships at the time existing between the Company and
its current employees.

          (c)  Representations. The parties intend that the covenants contained
in Sections 17(a) and 17(b) shall be construed as a series of separate
covenants, one for each county, city and state (or analogous entity) and
country of the world. If, in any judicial proceeding, a court shall refuse to
enforce any of the separate covenants, or any part thereof, then such
unenforceable covenant, or such part thereof, shall be deemed eliminated from
this Agreement for the purpose of those proceedings to the extent necessary to
permit the remaining separate covenants, or portions thereof, to be enforced.

          (d)  Reformation. In the event that the provisions of this Section 17
should ever be deemed to exceed the time or geographic limitations, or scope of
this covenant, permitted by applicable law, then such provisions shall be
reformed to the maximum time or geographic limitations, as the case may be,
permitted by applicable laws.

          (e)  Reasonableness of Covenants. Executive represents that he (i) is
familiar with the covenants in this Section 17, and (ii) is fully aware of his
obligations hereunder, including, without limitation, the reasonableness of the
length of time, scope and geographic coverage of these covenants; provided
however, that Executive only represents that the covenant not to compete in
Section 17(a) is reasonable to the extent that Executive actually would be
receiving severance benefits from the Company during the time period when such
covenant would be in effect.

     18.  No Oral Modification, Cancellation or Discharge. This Agreement may
only be amended, canceled or discharged in writing signed by Executive and an
authorized member of the Board.

     19.  Withholding. The Company shall be entitled to withhold, or cause to
be withheld, from payment any amount of withholding taxes required by law with
respect to payments made to Executive in connection with his employment
hereunder.

     20.  Governing Law. This Agreement shall be governed by the laws of the
State of California without reference to rules relating to conflict of law.

     21.  Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     22.  Acknowledgment. Executive acknowledges that he has had the
opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully
understands all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement.

                                      -11-
<PAGE>   12
     IN WITNESS WHEREOF, the undersigned have executed this Agreement, in the
case of the Company by its duly authorized officer, as of the day and year
first written above:

NETWORKS ASSOCIATES, INC.

By: /s/ KENT H. ROBERTS
    -------------------------
        Kent H. Roberts

Title: Vice President
       ----------------------

EXECUTIVE

/s/ GEORGE SAMENUK
-----------------------------
George Samenuk

Attachments:

Exhibit A: Mutual Release of Claims

Exhibit B: Indemnification Agreement

                                      -12-<PAGE>   1
                                                                   EXHIBIT 10.34

                                   AGREEMENT

        This Agreement is made by and between Networks Associates, Inc. ("the
Company"), and you, William L. Larson, as of January 2, 2001 (the "Effective
Date").

        1. You will serve as Special Advisor to the Company from the Effective
Date until one year after the Effective Date (the "Employment Term"). As of the
Effective Date, you resign as Chief Executive Officer and Chairman of the Board
of the Company and although you will remain an employee of the Company, you
relinquish all other officer and director positions with the Company and its
affiliates. You will render such business and professional services in the
performance of your duties, consistent with your position within the Company, as
shall reasonably be assigned to you by the Company's Board of Directors (the
"Board") or its Chief Executive Officer ("CEO"). You will devote your business
efforts and time to the Company and such of its subsidiaries as the Board or CEO
may designate. Your employment with the Company will end one year after the
Effective Date (the "End Date").

        2. At-Will Employment. Your employment with the Company constitutes
"at-will" employment. You and the Company acknowledge that this employment
relationship may be terminated at any time, upon written notice to the other
party, with or without good cause or for any or no cause, at the option of
either you or the Company.

        3.     Employee Benefits and Office.

               (a) Employee Benefits. During the Employment Term, you will be
eligible to participate in accordance with the terms of all Company employee
benefit plans that are applicable to other employees of the Company, as such
plans and terms may exist from time to time, provided you are determined to be
an employee of the Company according to the terms of such plans. However, you
will not accrue any additional vacation under Company's vacation policy after
the Effective Date and you shall not be permitted to participate in the
Company's 401(k) plan. In the event you are determined to be ineligible to
participate in the Company's employee benefit plans and subject to compliance
with Sections 5, 10, 11, 12 and 15 and Exhibit A, the Company shall provide you
with the same level of Company subsidized health (i.e., medical, vision and
dental) coverage and executive benefits as in effect for you on the day of such
determination through the End Date.

               (b) Office. From the Effective Date until your termination of
service to the Company, you will be entitled to the use of an office and support
staff as reasonably necessary to carry out your duties under this Agreement.

        4.     Compensation.

               (a) Base Salary. During the Employment Term, the Company will pay
you as compensation for your services a base salary at the annualized rate of
$420,000 (the "Base Salary"). The Base Salary will be paid through payroll
periods that are consistent with the Company's normal payroll practices,
assuming that you are in compliance with all of your obligations under this
Agreement, including (without limitation) Sections 5, 10, 11, 12 and 15 and
Exhibit A.

<PAGE>   2

               (b) Bonus. The Company will pay you 100% of your target bonus of
$580,000 in equal monthly tranches, assuming that you are in compliance with all
of your obligations under this Agreement, including (without limitation)
Sections 5, 10, 11, 12 and 15 and Exhibit A.

               (c) Stock Options. During the Employment Term, your unexpired
stock options will continue to vest and become exercisable pursuant to the terms
and conditions of the stock option plans and the applicable stock option
agreements by and between you and the Company (or its related applicable
entity), assuming in each case that you are providing services to the Company on
each vesting date and that you are in compliance with all of your obligations
under this Agreement, including (without limitation) Sections 5, 10, 11, 12 and
15 and Exhibit A. For purposes of clarification, the post-termination
exercisability period with respect to your McAfee.com stock options will not
begin while you are providing services to the Company pursuant to this
Agreement. During the Employment Term, only your unexpired stock options to
purchase Company Common Stock will continue to be subject to the terms and
conditions of the prior employment agreement entered into between you and the
Company (the "Change of Control Agreement").

               (d) Indemnification and D&O Insurance. The parties agree that you
will continue to be covered by the terms and conditions of the Indemnity
Agreement entered into between you and the Company on September 7, 1993 (the
"Indemnity Agreement") and that the parties' rights and obligations thereunder
are unaffected by this Agreement.

        5. Settlement Agreement and Release. On the date you sign this
Agreement, you will sign and deliver to the Company a Settlement Agreement and
Release in the form attached as Exhibit A.

        6.     Severance.

               (a) Termination other than for Cause. If the Company terminates
your service to the Company for any reason other than Cause, or you resign as
described in Section 6(c), then, subject to your compliance with Sections 5, 10,
11, 12 and 15 and Exhibit A, you will receive (i) all of the compensation
described in Section 4, including the continued payment of your annual Base
Salary ($420,000) and annual target bonus ($580,000) through the End Date, (ii)
continued vesting of your unexpired stock options to purchase Company Common
Stock through the End Date and ninety (90) days following such period to
exercise such vested options, (iii) continued coverage under the Change of
Control Agreement during such period, ignoring the requirement that you remain a
Company employee, and (iv) the same level of Company subsidized health (i.e.,
medical, vision and dental) coverage and executive benefits as in effect for you
on the day of your termination through the End Date. You will not receive any
other compensation or benefits from the Company except as may required by law in
accordance with established Company plans and policies.

               (b) Voluntary Termination or Termination for Cause. If you
voluntarily terminate your service to the Company for a reason other than as
described in Section 6(c) or the Company terminates your employment for Cause,
then (i) you will receive the Base Salary through the date of termination, and
(ii) you shall not receive any other compensation or benefits from the Company
except as may required by law in accordance with established Company plans and
policies. For example (but not by way of limitation), you will not receive any
of the other compensation described in Section 4.

                                      -2-
<PAGE>   3

               (c) Definition of Cause. Termination of your employment for
"Cause" means termination due to your willful misconduct or gross negligence
which is materially injurious to the Company and its subsidiaries taken as a
whole and/or your failure to satisfy any of your obligations under this
Agreement, including (but not limited to) your obligations under Sections 5, 10,
11, 12 and 15 and Exhibit A; provided, however, that the determination that you
have failed to satisfy your obligations under this Agreement must be made in
good faith by the Board and you will be given written notice by the Board
detailing the specific facts of such breach, and a reasonable opportunity (of
least thirty (30) days) to cure same. You will also receive the above-described
severance if you resign from your employment as a result of a material reduction
in your compensation or benefits, a request to move your primary work location
to a place more than twenty-five (25) miles from your work location at the time
this Agreement is executed without your written consent, or if there is a
change, without your written consent, such that you no longer directly report to
the Board.

               (d) Removal of Files. Following your termination of employment,
you may remove your personal files from the Company's premises. Any file
containing "Employment Information" (as defined in Section 10) may not be
removed from the Company's premises without the written consent of the Board.

               (e) Excise Tax. If any payment or benefit you would receive
pursuant to a Change in Control from the Company or otherwise ("Payment") would
(i) constitute a "parachute payment" within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the "Code"), and (ii) but for this
sentence, be subject to the excise tax imposed by Section 4999 of the Code (the
"Excise Tax"), then such Payment shall be reduced to the Reduced Amount. The
"Reduced Amount" shall be either (x) the largest portion of the Payment that
would result in no portion of the Payment being subject to the Excise Tax or (y)
the largest portion, up to and including the total, of the Payment, whichever
amount, after taking into account all applicable federal, state and local
employment taxes, income taxes, and the Excise Tax (all computed at the highest
applicable marginal rate), results in your receipt, on an after-tax basis, of
the greater amount of the Payment notwithstanding that all or some portion of
the Payment may be subject to the Excise Tax. If a reduction in payments or
benefits constituting "parachute payments" is necessary so that the Payment
equals the Reduced Amount, reduction shall occur in the following order unless
you elect in writing within three (3) business days of the Change in Control a
different order: reduction of cash payments; cancellation of accelerated vesting
of stock awards; reduction of employee benefits. In the event that acceleration
of vesting of stock award compensation is to be reduced, such acceleration of
vesting shall be cancelled in the reverse order of the date of grant of your
stock awards unless you elect in writing a different order for cancellation.

                      (i) The accounting firm engaged by the Company for general
audit purposes as of the day prior to the effective date of the Change in
Control shall perform the foregoing calculations. The Company and you shall
equally share all expenses with respect to the determinations by such accounting
firm required to be made hereunder.

                      (ii) The accounting firm engaged to make the
determinations hereunder shall provide its calculations, together with detailed
supporting documentation, to the Company and you within thirty (30) calendar
days after the date on which your right to a Payment is triggered (if requested
at that time by the Company or you) or such other time as requested by the
Company or

                                      -3-
<PAGE>   4

you. Any good faith determination of the accounting firm made hereunder shall be
final, binding and conclusive upon the Company and you.

                      (iii) If the accounting firm determines that no Excise Tax
is payable with respect to a Payment, either before or after the application of
the reduction set forth in this Section 6(e), it shall furnish the Company and
you with an opinion reasonably acceptable to you that no Excise Tax will be
imposed with respect to such Payment.

        7. Assignment. This Agreement will be binding upon and inure to the
benefit of (a) your heirs, executors and legal representatives upon your death
and (b) any successor of the Company. Any such successor of the Company will be
deemed substituted for the Company under the terms of this Agreement for all
purposes. For this purpose, "successor" means any person, firm, corporation or
other business entity which at any time, whether by purchase, merger or
otherwise, directly or indirectly acquires all or substantially all of the
assets or business of the Company. None of your rights to receive any form of
compensation payable pursuant to this Agreement may be assigned or transferred
except by will or the laws of descent and distribution. Any other attempted
assignment, transfer, conveyance or other disposition of your right to
compensation or other benefits will be null and void.

        8. Notices. All notices, requests, demands and other communications
called for hereunder shall be in writing and will be deemed given (a) on the
date of delivery if delivered personally, (b) one (1) day after being sent by a
well established commercial overnight service, or (c) four (4) days after being
mailed by registered or certified mail, return receipt requested, prepaid and
addressed to the parties or their successors at the following addresses, or at
such other addresses as the parties may later designate in writing:

               If to the Company:

               Networks Associates, Inc.
               3965 Freedom Circle
               Santa Clara, CA  95054

               Attn: General Counsel

               If to you:

               at the last residential address known by the Company.

        9. Severability. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement will continue in full force and effect without said
provision.

        10. Confidentiality. During the Employment Term and thereafter, you
agree to use your best efforts to maintain in confidence the existence of this
Agreement, the contents and terms of this Agreement, including any documents
incorporated by reference, the consideration for this Agreement, any Company
proprietary information, technical data, trade secrets or know-how, including,
but not limited to, research, product plans, products, services, customer lists
and customers (including, but not limited to, customers of the Company on whom
you called or with

                                      -4-
<PAGE>   5

whom you became acquainted during the term of your employment), markets,
software, developments, inventions, processes, formulas, technology, designs,
drawings, engineering, hardware configuration information, marketing, finances
or other business information disclosed to you by the Company either directly or
indirectly in writing or orally (hereinafter collectively referred to as
"Employment Information"). You agree to take every reasonable precaution to
prevent disclosure of any Employment Information to third parties, and agree
that there will be no publicity, directly or indirectly, concerning any
Employment Information. You agree to take every precaution to disclose
Employment Information only to those attorneys, accountants, governmental
entities and family members who have a reasonable need to know of such
Employment Information.

        11. Non-Competition and Non-Solicitation. With respect to the businesses
of the Company or any of its subsidiaries on either the Effective Date or the
date of your termination of employment from the Company and all of it
subsidiaries (collectively, the "Businesses"), you agree that during the period
beginning on the Effective Date and ending on the date on which your employment
with the Company terminates, you, directly or indirectly, whether as employee,
owner, sole proprietor, partner, director, member, consultant, agent, founder,
co-venturer or otherwise, will not engage, participate or invest in (except for
any indirect investments as a result of your investments in venture funds or
mutual funds) any business activity anywhere in the world that is directly
competitive with the principal products or services of the Businesses; and that
during period beginning on the Effective Date and ending one year after the date
on which you terminate employment, you, directly or indirectly, whether as
employee, owner, sole proprietor, partner, director, member, consultant, agent,
founder, co-venturer or otherwise, will (a) not hire or attempt to employ,
recruit or otherwise solicit, induce or influence any person to leave employment
with the Businesses; and (b) not directly or indirectly solicit business from
any of the Businesses' customers and users on behalf of any business that
directly competes with the Businesses.

        12. Non-Disparagement. You and the Company agree to refrain from making
any negative comments about the other concerning their respective business,
products or services, officers, employees and directors and to refrain from any,
defamation, libel or slander of the other and their respective officers,
directors, employees, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, predecessor and successor corporations, and assigns or
tortious interference with the contracts and relationships of the other and
their respective officers, directors, employees, investors, shareholders,
administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns.

        13. Entire Agreement. This Agreement (including Exhibit A), together
with the Change in Control Agreement, the Indemnity Agreement and your stock
option agreements, represents the entire agreement and understanding between the
Company and you concerning your employment relationship with the Company or any
of its subsidiaries, and supersedes and replaces any and all prior agreements
and understandings concerning your employment relationship with the Company.

        14.    Arbitration and Equitable Relief.

               (a) Except as provided in Section 14(d) below, you and the
Company agree that to the extent permitted by law, any dispute or controversy
arising out of, relating to, or in connection with this Agreement, or the
interpretation, validity, construction, performance, breach, or termination
thereof will be settled by arbitration to be held in the County of San
Francisco,

                                      -5-
<PAGE>   6

California, in accordance with the National Rules for the Resolution of
Employment Disputes then in effect of the American Arbitration Association (the
"Rules"). The arbitrator may grant injunctions or other relief in such dispute
or controversy. The decision of the arbitrator will be final, conclusive and
binding on the parties to the arbitration. Judgment may be entered on the
arbitrator's decision in any court having jurisdiction.

               (b) The arbitrator will apply California law to the merits of any
dispute or claim (with the exception of its conflict of laws provisions). You
hereby expressly consent to the personal jurisdiction of the state and federal
courts located in California for any action or proceeding arising from or
relating to this Agreement and/or relating to any arbitration in which the
parties are participants.

               (c) The Company will pay the direct costs and expenses of the
arbitration. The Company and you each will pay your own counsel fees and
expenses.

               (d) The Company or you may apply to any court of competent
jurisdiction for a temporary restraining order, preliminary injunction, or other
interim or conservatory relief, as necessary to enforce the provisions of this
Agreement, without breach of this arbitration agreement and without abridgement
of the powers of the arbitrator.

               (e) You understand that nothing in this Section 14 modifies your
at-will status. Either the Company or you can terminate the employment
relationship at any time, with or without cause.

               (f) YOU HAVE READ AND UNDERSTAND THIS SECTION 14, WHICH DISCUSSES
ARBITRATION. YOU UNDERSTAND THAT BY SIGNING THIS AGREEMENT, YOU AGREE TO THE
EXTENT PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS ARISING OUT OF, RELATING
TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY,
CONSTRUCTION, PERFORMANCE, BREACH, OR TERMINATION THEREOF TO BINDING
ARBITRATION, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF YOUR RIGHT
TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL
ASPECTS OF THE EMPLOYER/EXECUTIVE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO,
THE FOLLOWING CLAIMS:

                      (i) ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF
EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT
OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR
INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL
MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR
PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION;

                      (ii) ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE
OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, THE AMERICANS WITH
DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, AND ANY LAW OF ANY
STATE; AND

                                      -6-
<PAGE>   7

                      (iii) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND
REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.

        15. Cooperation with Company. During and after the Employment Term, you
will cooperate fully with the Company, including, but not limited to, responding
to the reasonable requests of the Company's Board or General Counsel, in
connection with any and all existing or future litigation, arbitrations,
mediations or investigations brought by or against the Company or any of its
affiliates, agents, officers, directors or employees, whether administrative,
civil or criminal in nature, in which the Company reasonably deems your
cooperation necessary or desirable. You agree to provide reasonable advice,
assistance and information, including offering and explaining evidence,
providing sworn statements, participating in discovery and trial preparation and
testimony as may reasonably be deemed necessary or desirable by the Company
relating to its position in any such legal proceedings. You also agree to
promptly send the Company copies of all correspondence (for example, but not
limited to, subpoenas) received by you in connection with any such legal
proceedings, unless you are expressly prohibited by law from so doing. You will
act in good faith to furnish the information and cooperation required by this
Section 15 and the Company will act in good faith so that the requirement to
furnish such information and cooperation does not create an undue hardship for
you. The Company will reimburse you for reasonable out-of-pocket expenses
incurred by you as a result of your cooperation, within ten (10) days of the
presentation of appropriate documentation thereof, in accordance with the
Company's standard reimbursement policies and procedures. The failure by you to
cooperate fully with the Company in accordance with this Section 15 will be a
material breach of the terms of this Agreement which will result in all
commitments of the Company to make additional payments to you becoming null and
void. Notwithstanding anything in this Section, it is agreed that if possible
the Company will provide you with reasonable advance notice regarding these
activities, and that any requests made hereunder by the Company will be made in
good faith and reasonable.

        16. No Oral Modification, Cancellation or Discharge. This Agreement may
be changed or terminated only in writing (signed by you and the Board).

        17. Withholding. The Company is authorized to withhold, or cause to be
withheld, from any payment or benefit under this Agreement the full amount of
any applicable withholding taxes.

        18. Governing Law. This Agreement will be governed by the laws of the
State of California (with the exception of its conflict of laws provisions).

        19. Authority. The Company represents and warrants that the person
signing this Agreement on its behalf has full authority to act for the Company.

        20. Acknowledgment. You acknowledge that you (i) have read this
Agreement, (ii) have been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of your own choice or that you
voluntarily have declined to seek counsel, (iii) understand the terms and
consequences of this Agreement, and (iv) are fully aware of the legal and
binding effect of this Agreement.

                                      -7-
<PAGE>   8

        IN WITNESS WHEREOF, the undersigned have executed this Agreement on the
respective dates set forth above.

                                        WILLIAM L. LARSON

                                        /s/ WILLIAM L. LARSON
                                        ----------------------------------------
                                        William L. Larson

                                        NETWORKS ASSOCIATES, INC.

                                        By: /s/ KENT H. ROBERTS
                                           -------------------------------------

                                        Title: Vice President, Legal Affairs
                                              ----------------------------------

                                      -8-
<PAGE>   9
                                   EXHIBIT A

                        SETTLEMENT AGREEMENT AND RELEASE

     This Settlement Agreement and Release ("Agreement") is made by and between
Networks Associates, Inc. (the "Company"), and William L. Larson ("Employee") as
of January 2, 2001.

     WHEREAS, Employee was employed by the Company as its Chief Executive
Officer and Chairman of the Board; and

     WHEREAS, the Company and Employee have entered into an Agreement dated
January 2, 2001 (the "Initial Agreement"), whereby Employee will resign as
Chief Executive Officer and Chairman of the Board and will thereafter serve as
Special Advisor to the Company;

     NOW THEREFORE, in consideration of the mutual promises made herein, the
Company and Employee (collectively referred to as "the Parties") hereby agree
as follows:

     1.   Termination. Employee's position with the Company as Chief Executive
Officer and Chairman of the Board terminated on January 2, 2001.

     2.   Consideration. As consideration for this Agreement, the Company has
entered into the Initial Agreement and will pay the compensation described in
Section 4 of the Initial Agreement.

     3.   Confidential Information. Employee shall continue to maintain the
confidentiality of all confidential and proprietary information of the Company
and shall continue to comply with the terms and conditions of any
confidentiality agreement between Employee and the Company.

     4.   Employee Release of Claims. Employee, on behalf of himself, and his
respective heirs, family members, executors and assigns, hereby fully and
forever releases the Company and its past, present and future officers, agents,
directors, employees, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, parents, predecessor and successor corporations, and
assigns, from, and agrees not to sue or otherwise institute or cause to be
instituted any legal or administrative proceedings concerning any claim, duty,
obligation or cause of action relating to any matters of any kind, whether
presently known or unknown, suspected or unsuspected, that he may possess
arising from any omissions, acts or facts that have occurred up until and
including the Effective Date of this Agreement including, without limitation.

          (a)  any and all claims relating to or arising from Employee's
employment relationship with the Company and the termination of that
relationship;

          (b)  any and all claims for wrongful discharge of employment;
termination in violation of public policy; discrimination; breach of contract,
both express and implied; breach of a covenant of good faith and fair dealing,
both express and implied; promissory estoppel; negligent or intentional
infliction of emotional distress; negligent or intentional misrepresentation;
negligent or

<PAGE>   10

intentional interference with contract or prospective economic advantage;
unfair business practices; defamation; libel; slander; negligence; personal
injury; assault; battery; invasion of privacy; false imprisonment; and
conversion;

          (c)  any and all claims for violation of any federal, state or
municipal statute, including, but not limited to, Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment
Act of 1967, the Americans with Disabilities Act of 1990, the Fair Labor
Standards Act, the Employee Retirement Income Security Act of 1974, The Worker
Adjustment and Retraining Notification Act, the California Fair Employment and
Housing Act, and Labor Code Section 201, et seq. and Section 970, et. seq. and
all amendments to each such Act as well as the regulations issued thereunder.

          (d)  any and all claims for violation of the federal, or any state,
constitution;

          (e)  any and all claims arising out of any other laws and regulations
relating to employment or employment discrimination; and

          (f)  any and all claims for attorneys' fees and costs.

     Employee agrees that the release set forth in this section shall be and
remain in effect in all respects as a complete general release as to the
matters released. Notwithstanding the foregoing, this release does not extend
to (i) any obligations incurred under this Agreement, (ii) any claims for
compensation or severance earned by or due to the Employee (including salary,
bonus, vesting and benefits) under the terms of the Initial Agreement, the
Change in Control Agreement and the Indemnity Agreement, and (iii) any of the
Employee's vested benefits, including his 401(k) benefits.

     Employee acknowledges and agrees that any breach of this paragraph shall
constitute a material breach of the Agreement and of the Initial Agreement.
Employee shall also be responsible to the Company for all costs, attorneys'
fees and any and all damages incurred by the Company in defending against a
claim or suit brought or pursued by Employee in violation of this provision.

     5.   Acknowledgement of Waiver of Claims under ADEA. Employee acknowledges
that he is waiving and releasing any rights he may have under the Age
Discrimination in Employment Act of 1967 ("ADEA") and that this waiver and
release is knowing and voluntary. Employee and the Company agree that this
waiver and release does not apply to any rights or claims that may arise under
the ADEA after the Effective Date of this Agreement. Employee acknowledges that
the consideration given for this waiver and release Agreement is in addition to
anything of value to which Employee was already entitled. Employee further
acknowledges that he has been advised by this writing that (a) he should
consult with an attorney prior to executing this Agreement; (b) he has at least
twenty-one (21) days within which to consider this Agreement; (c) he has seven
(7) days following the execution of this Agreement by the parties to revoke the
Agreement; and (d) this Agreement shall not be effective until the revocation
period has expired. Any revocation should be in writing and delivered to the
Company's General Counsel at Networks Associates, Inc., 3965 Freedom Circle,
Santa Clara, California 95054, by close of business on the seventh day from the
date that Employee signs this Agreement.

                                      -2-
<PAGE>   11
      6.    Civil Code Section 1542. Employee represents that he is not aware
of any claims against the Company other than the claims that are released by
this Agreement. Employee acknowledges that he has been advised by legal counsel
and is familiar with the provisions of California Civil Code Section 1542,
which provides as follows:

            A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
            CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
            THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
            MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
            DEBTOR.

      Employee, being aware of said code section, agrees to expressly waive any
rights he may have thereunder, as well as under any other statute or common law
principles of similar effect.

      7.    No Pending or Future Lawsuits. Employee represents that he has no
lawsuits, claims, or actions pending in his name, or on behalf of any other
person or entity, against the Company or any other person or entity referred to
herein. Employee also represents that he does not intend to bring any claims on
his own behalf or on behalf of any other person or entity against the Company
or any other person or entity referred to herein.

      8.    Application for Employment. Employee understands and agrees that,
as a condition of this Agreement and the Initial Agreement, he shall not be
entitled to any employment with the Company, its subsidiaries, or any
successor, and he hereby waives any right, or alleged right, of employment or
re-employment with the Company. Employee further agrees that he will not apply
for employment with the Company, its subsidiaries, its parents, or related
companies, or any successor and will not apply to work as an independent
contractor for the Company, its parents, its subsidiaries or any successor.

      9.    Confidentiality. Employee and the Company agree to use their best
efforts to maintain in confidence the existence of this Agreement, the contents
and terms of this Agreement, including any documents incorporated by reference,
the consideration for this Agreement, any applicable proprietary information,
technical data, trade secrets or know-how, including, but not limited to,
research, product plans, products, services, customer lists and customers
(including, but not limited to, customers of the Company on whom Employee
called or with whom Employee became acquainted during the term of his
employment), markets, software, developments, inventions, processes, formulas,
technology, designs, drawings, engineering, hardware configuration information,
marketing, finances or other business information disclosed to Employee by the
Company either directly or indirectly in writing or orally (hereinafter
collectively referred to as "Employment Information"). Employee and the Company
agree to take every reasonable precaution to prevent disclosure of any
Employment Information to third parties, and agree that there will be no
publicity, directly or indirectly, concerning any Employment Information.
Employee and the Company agree to take every precaution to disclose Employment
Information only to those attorneys, accountants, governmental entities and
family members who have a reasonable need to know of such Employment
Information.

                                      -3-
<PAGE>   12

      10.   No Cooperation. Employee and the Company agree they will not act in
any manner that might damage the business of the other. Employee and the
Company agree that they will not counsel or assist any attorneys or their
clients in the presentation or prosecution of any disputes, differences,
grievances, claims, charges, or complaints by any third party against the other
and/or any officer, director, employee, agent, representative, shareholder or
attorney of the other, unless under a subpoena or other court order to do so.

      11.   Non-Disparagement. Employee and the Company agree to refrain from
making any negative comments concerning the other's business, products or
services, officers, employees and directors and to refrain from any,
defamation, libel or slander of the other and their respective officers,
directors, employees, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, predecessor and successor corporations, and assigns or
tortious interference with the contracts and relationships of the other and
their respective officers, directors, employees, investors, shareholders,
administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns.

      12.   No Admission of Liability. Employee and the Company understand and
acknowledge that this Agreement constitutes a compromise and settlement of
disputed claims. No action taken by Employee or the Company, either previously
or in connection with this Agreement shall be deemed or construed to be (a) an
admission of the truth or falsify of any claims heretofore made or (b) an
acknowledgement or admission by Employee or the Company of any fault or
liability whatsoever to the other or to any third party.

      13.   Costs. The Parties shall each bear their own costs, expert fees,
attorneys' fees and other fees incurred in connection with this Agreement.

      14.   Arbitration. The Parties agree that any and all disputes arising
out of the terms of this Agreement, their interpretation, and any of the
matters herein released, shall be subject to binding arbitration as described
in the Initial Agreement.

      15.   Authority. Employee represents and warrants that he has the
capacity to act on his own behalf and on behalf of all who might claim through
him to bind them to the terms and conditions of this Agreement.

      16.   No Representations. Employee represents that he has had the
opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement. Neither party has
relied upon any representations or statements made by the other party hereto
which are not specifically set forth in this Agreement.

      17.   Severability. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision.

      18.   Entire Agreement. This Agreement, the Initial Agreement and any
confidentiality agreement represent the entire agreement and understanding
between the Company and Employee concerning these matters.

                                      -4-
<PAGE>   13

     19.  No Oral Modification. This Agreement may only be amended in writing
signed by Employee and an authorized officer of the Company.

     20.  Governing Law. This Agreement shall be governed by the internal
substantive laws, but not the choice of law rules, of the State of California.

     21.  Effective Date. This Agreement is effective eight (8) days after it
has been signed by both Parties.

     22.  Counterparts. This Agreement may be executed in counterparts, and
each counterpart shall have the same force and effect as an original and shall
constitute an effective, binding agreement on the part of each of the
undersigned.

     23.  Voluntary Execution of Agreement. This Agreement is executed
voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims. The Parties
acknowledge that:

          (a)  They have read this Agreement;

          (b)  They have been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of their own choice or that they
have voluntarily declined to seek such counsel;

          (c)  They understand the terms and consequences of this Agreement and
of the releases it contains;

          (d)  They are fully aware of the legal and binding effect of this
Agreement.

                                      -5-

<PAGE>   14
     IN WITNESS WHEREOF, the Parties have executed this Agreement on the
respective dates set forth above.

                                      NETWORKS ASSOCIATES, INC.

                                      By: /s/ KENT H. ROBERTS
                                         ---------------------------------
                                      Title: Vice President, Legal Affairs

                                      WILLIAM L. LARSON, an individual

                                      /s/ WILLIAM L. LARSON
                                      -------------------------------------
                                      William L. Larson

                                      -6-

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