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PY <br />ADDENDUM 1 <br />OPTION TO EXTEND THE LEASE <br />This Addendum 1 is incorporated as a part of that certain Lease Agreement dated May 7, 1997 (the "Lease"), by and between City <br />of San Leandro ("Tenant"), and APT IND/APTS Realty, Inc., a Delaware corporation ("Landlord"), for the leasing of those certain <br />premises located at 2952 A-D, Alvarado Street, San Leandro, California, as more particularly described in Exhibit A to the Lease <br />(the "Premises"), Any capitalized terns used herein and not otherwise defined herein shall have the meaning ascribed to such terms <br />as set forth in the Lease. <br />1. Grant of Extension O to ion. Subject to the provisions, limitations and conditions set forth in Paragraph 37 of the Lease to <br />Paragraph 5 below, Tenant shall have an option 1"Option") to extend the term of the Lease for six (6) months (the "Extended Term"). <br />2. Tenant's Option Notice. If Landlord does not receive written notice from Tenant of its exercise of this Option on a date which <br />is not less than one hundred eighty (180) days prior to the end of the initial term of the Lease (the "Option Notice"), all rights under <br />this Option shall automatically terminate and shall be of no further force or effect. <br />3. Establishing the Initial Monthly Base Rent for the Extended Term. The initial monthly Base Rent for the Extended Term shall <br />be eleven thousand five Hundred seventy-one and 00/100dollars 1$11,571.00). If Tenant duly exercises this Option, in strict <br />accordance with the terms outlined above, Landlord and Tenant shall immediately execute, at Landlord's sole option, either the <br />standard lease agreernent then in use by Landlord, or an Amendment to this Lease. Such new lease agreement or amendment, as <br />the case may be, shall set forth among other things, the monthly Base Rent quoted above for the Extended Term and the actual <br />commencement date and expiration date of the Extended Term. Tenant shall have no other right to extend the term of the Lease <br />under this Addendum 1 unless Landlord and Tenant otherwise agree in writing. <br />4. Condition of Premises and Brokerage Commissions for the Extended Term. If Tenant timely and properly exercises this Option, <br />in strict accordance with the terms contained herein: (1) Tenant shall accept the Premises in its then "As -Is" condition and, <br />accordingly, Landlord shall not be required to perform any additional improvements to the Premises; and (2) Tenant hereby agrees <br />that it will be solely responsible for any and all brokerage commissions and finder's fees payable to any broker now or hereafter <br />procured or hired by Tenant or who otherwise claims a commission based on any act or statement of Tenant ("Tenant's Broker") <br />in connection with the Option, and Tenant hereby further agrees that Landlord shall in no event or circumstance be responsible for <br />the payment of any such commissions and fees to Tenant's Broker. <br />5. Limitations On, and Conditions To, Extension Option. This Option is personal to Tenant and may not be assigned, voluntarily <br />or involuntarily, separate from or as part of the Lease. At Landlord's option, all rights of Tenant under this Option shall terminate <br />and be of no force or effect if any of the following individual events occur or any combination thereof occur: (1) Tenant has been <br />in default at any time during the initial term of the Lease, or is currently in default of any provision of the Lease; and/or (2) Tenant <br />has assigned its rights and obligations under all or part of the Lease or Tenant has subleased all or part of the Premises; and/or (3) <br />Tenant's financial condition is unacceptable to Landlord at the time the Option Notice is delivered to Landlord; and/or (4) Tenant <br />has failed to properly exercise this Option in a timely manner in strict accordance with the provisions of this Addendum 1; and/or <br />(5) Tenant no longer has possession of all or any part of the Premises under the Lease, or if the Lease has been terminated earlier, <br />pursuant to the terms of the Lease. <br />6. Time is of the Essence. Time is of the essence with respect to each and every time period set forth in this Addendum. <br />INITIALS: <br />TENANT: <br />LANDLORD: <br />07LUSR1CY LMTGN PVlr <br />