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California, term of option commencing February 1, 1968 and con­tinuing in effect until January 31, 1969; consideration being payment by Purchaser of general and special taxes, including any special district levies, plus any assessments for public im­provements not chargeable to Capital Account; Purchaser may exercise option by giving written notice of its intention to do so and upon payment of purchase price of $161,273.00, and shall have entered into an agreement for construction on the option parcel of a warehouse building containing not less than eighty thousand (80,000) square feet, plans for warehouse having been submitted to the Land Company for its approval; and as a further condition upon the right of purchaser exercising said option, Purchaser shall have entered into an agreement to lease fifteen thousand (15,000) square feet of said improvement to Arkla Air Conditioning Co„, a division of Arkla Industries, Inc. for a term of fifteen (15) years, and shall furnish Land Company with certi­fied copy of said agreement in addition to giving written notice of such facts to Land Company at the time of exercising said option; Land Company, at its expense, shall furnish standard Policy of Title Insurance and will deliver deed conveying title subject to: (a) Taxes and any assessments for public improve­ments which are a lien upon the property at the time of the conveyance. -5-