Continuing Option. Landlord grants Tenant an option to lease the remaining space in the South wing of the building (approximately 54,585 square feet currently occupied by Kalpana Inc. under sublease from Philips Semiconductors). This option to lease shall be for a lease with terms and condition identical to this lease with the following exception: 1) Base monthly rent shall be $.7765/square foot/month to be paid monthly; 2) The $10.00/square foot tenant improvement allowance and Landlord's maximum contribution to rectification of Code non-conformities ($.3394/square foot) specified in Paragraph 47 shall be decreased to amounts which are proportionate to the number of months of the term for the additional space compared to sixty-six months. Example: if the term for the additional space is fifty months, the amount for tenant improvements shall be $7.576/square foot ($10.00 x 50/66) and Landlord's maximum contribution to rectification of Code non-conformities shall be $.2571/square foot ($.3394 x 50/66); 3) The additional $5.00 per square foot specified in Paragraph 47 for tenant improvements shall be available to Tenant for the same purpose under the same terms and conditions; 4) If the optioned space is vacant at the time of the exercise of the option, early occupancy shall commence immediately and rental and occupancy shall commence 90 days after option exercise. If the space is occupied at the time of exercise of the option, early occupancy shall commence immediately on surrender of the premises by the existing tenant, and rental and occupancy shall commence 60 days thereafter. No rental shall be charged by Landlord during early occupancy periods. 5) The space subject to the option shall be solidly contiguous to the premises under this lease and shall not be less than 18,415 square feet at each option exercise with a natural break with the remaining space considering HVAC, electrical, other utilities, and layout. The remaining space also must be reasonably leasable by Lessor. This continuing option is subject to any right of Diamond Computer Systems, Inc. under its lease with Landlord. This continuing option shall be for the period ending December 31,1996, and shall not be exercisable if the space is under lease or subject to a fully executed letter of intent between Landlord and a third party. It is exercisable by Tenant by written notice to Landlord to be received by Landlord only during the first seven days of each month of the period ending December 31, 1996. To exercise this continuing option, Tenant must have performed all the covenants and obligations of Tenant and Tenant's financial condition must be at least equal to that at the time of execution of this lease. If Tenant has not exercised said option by April 7, 1995, Kalpana (lessee of adjoining space) may exercise its option to extend its option to extend its lease of the adjoining 54,585 square feet for a lease term expiring February 29, 1996. In such event, the period in which Tenant's option may be exercised is extended to June 30, 1997. The term of the expanded lease, which the exercise of the option shall implement, shall commence as set forth in sub-paragraph 4 above, and end on the termination date of the base lease. However, the said term shall be extended if the option to extend under the base lease has been exercised, to coincide with the extended termination date of the base lease. The rental and other provisions applicable to the extended option period of the base lease, including arbitration, shall be applicable to the premises added under the continuing option and in effect such added premises shall be part of the base lease.
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Continuing Option. Landlord grants Tenant an option to lease the remaining space in the South wing of the building (approximately 54,585 square feet currently occupied by Kalpana Inc. under sublease from Philips Semiconductors). This option to lease shall be for a lease with terms and condition conditions identical to this lease with the following exception:
1) Base monthly rent shall be $.7765/square foot/month to be paid monthly;
2) The $10.00/square foot tenant improvement allowance and Landlord's maximum contribution to rectification of Code non-conformities ($.3394/square foot) specified in Paragraph 47 shall be decreased to amounts which are proportionate to the number of months of the term for the additional space compared to sixty-six months. Example: if the term for the additional space is fifty months, the amount for tenant improvements shall be $7.576/square foot ($10.00 x 50/66) and Landlord's maximum contribution to rectification of Code non-conformities shall be $.2571/square foot ($.3394 x 50/66);):
3) The additional $5.00 per square foot specified in Paragraph 47 for tenant improvements shall be available to Tenant for the same purpose under the same terms and conditions;
4) If the optioned space is vacant at the time of the exercise of the option, early occupancy shall commence immediately and rental and occupancy shall commence 90 days after option exercise. If the space is occupied at the time of exercise of the option, early occupancy shall commence immediately on surrender of the premises by the existing tenant, and rental and occupancy shall commence 60 days thereafter. No rental shall be charged by Landlord during early occupancy periods.
5) The space subject to the option shall be solidly contiguous to the premises under this lease and shall not be less than 18,415 square feet at each option exercise with a natural break with the remaining space considering HVAC, electrical, other utilities, and layout. The remaining space also must be reasonably leasable by Lessor. This continuing option is subject to any right of Diamond Computer Systems, Inc. under its lease with Landlord. This continuing option shall be for the period ending December 31,199631, 1996, and shall not be exercisable if the space is under lease or subject to a fully executed letter of intent between Landlord and a third party. It is exercisable by Tenant by written notice to Landlord to be received by Landlord only during the first seven days of each month of the period ending December 31, 1996. To exercise this continuing option, Tenant must have performed all the covenants and obligations of Tenant and Tenant's financial condition must be at least equal to that at the time of execution of this lease. If Tenant has not exercised said option by April 7, 1995, Kalpana (lessee of adjoining space) may exercise its option to extend its option to extend its lease of the adjoining 54,585 square feet for a lease term expiring February 29, 1996. In such event, the period in which Tenant's option may be exercised is extended to June 30, 1997. The term of the expanded lease, which the exercise of the option shall implement, shall commence as set forth in sub-paragraph 4 above, and end on the termination date of the base lease. However, the said term shall be extended if the option to extend under the base lease has been exercised, to coincide with the extended termination date of the base lease. The rental and other provisions applicable to the extended option period of the base lease, including arbitration, shall be applicable to the premises added under the continuing option and in effect such added premises shall be part of the base lease.
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