Exhibit 10.20
EXTENSION AND FIFTH AMENDMENT TO LEASE
Whereas, HMT TECHNOLOGY CORPORATION ("Tenant"), by assignment
dated January 5, 1989 assumed the rights and duties of the original
tenant under that certain Lease dated November 12, 1984 (as amended, the
"Lease") of 0000 Xxxx Xxxxxx, Xxxxxxx, Xxxxxxxxxx, from SUN LIFE
ASSURANCE COMPANY OF CANADA ("Landlord"); and
Whereas, pursuant to that Lease, Tenant has the right to four (4),
five (5) year extensions of the Lease, commencing at the end of the
First Extension Term (as defined in Extension and Fourth Amendment to
Lease);
Now Therefore, Xxxxxx and Landlord hereby agree: (i) to amend the Lease,
as follows;
and (ii) to exercise Tenant's right to a second extension term, amended
as set forth herein.
1) Second Extension Term
Tenant has extended the term of the Lease for an additional term (the
"Second Extension Term") commencing at the end of the First Extension
Term ( as defined in the Extension and Fourth Amendment to Lease) and
continuing for sixty (60) months, ending on December 31, 2003. Fixed
Monthly Rent for this Second Extension Term shall be calculated as
follows:
Months Per S.F./Month Fixed Monthly Rent
1-12 $1.03 $51,912
13-24 $1.08 $54,432
25-36 $1.13 $56,952
37-48 $1.18 $59,472
49-60 $1.23 $61,992
Tenant has the right to cancel the Lease at the end of the 18th month
(June 30, 2000) and the end of the 36th (December 31, 2001) with written
notice to the Landlord ("Tenants Written Notice") no later than four (4)
months prior to the end of the 18th and 36th months. Should the Tenant
choose to cancel the Lease, the Tenant shall pay Landlord a cancellation
fee ("Cancellation Fee"). The Cancellation Fee for canceling at the end
of the 18th month shall be $336,000. The Cancellation Fee for canceling
at the end of the 36th month shall be $304,000. It is fully understood
by all -parties that this cancellation provision has not been made a
part of or incorporated into any future Extensions to the Lease that may
in the future be exercised by the Tenant.
It is understood and agreed that the Lease continues to be a so-
called "triple net lease" of the Premises, which comprise approximately
50,400 square feet and that Tenant hereby covenants and agrees to pay
Fixed Monthly Rent to Landlord without deduction, offset, notice or
demand during said Second Extension Ten-n, in advance of the first day
of each calendar month, with each monthly rental payment being:
Months
1-12
13-24
25-36
37-48
49-60
Fixed Monthly Rent
$51,912 $54,432 $56,952 $59,472 $61,992
Except as amended hereby, the Lease (as amended) continues in full
force and effect and shall be binding upon the parties hereto and their
respective successors and assigns. Executed this 10 day of KI@ -, 1998.
SUN ASSURANCE COMPANY OF CANADA
By
For Secretary
CORPORATION
