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5. OPTION TO EXTEND: Lessee is hereby given the option to extend the term of <br />this Lease in accordance with all of the provisions contained in this Lease except rental, for six <br />(6) one (1) year terms (the "Option Term(s)"), by giving written notice of exercise of the option <br />("Option Notice") to Lessor sixty (60) days or more prior to expiration of each Term or Option <br />Term, as applicable. Failure to provide the required Option Notice for the first Option Term <br />shall result in the termination of this Lease upon the expiration date of this initial term or in the <br />case of failure to provide the Option Notice for a later Option Term, then this Lease shall <br />terminate at the end of the then current Option. In order to be effective, an Option Notice must, <br />unless waived in writing by the City's Real Property Manager or designee, be accompanied by an <br />updated Certificate of Insurance showing that the coverages required under this Lease will be in <br />force for the duration of the Option Term exercised by the Option Notice. <br />The Rental fee during each Option Term shall be negotiated between the parties and <br />evidenced in an addendum to this Lease. If the parties are unable to agree on the monthly rent for <br />the extended term within thirty (30) days of the Option Notice date, then within thirty (30) days <br />after giving of the Option Notice, Lessee shall retain an MAI appraiser who shall render a written <br />appraisal of the fair market rental of the leased premises. A copy of Lessee's appraisal shall be <br />given to Lessor within sixty (60) days after giving of the Option Notice. Lessor and Lessee shall <br />then negotiate regarding the fair market rental of the leased Site. If Lessor and Lessee are unable <br />to reach an agreement as to the fair market rental of the leased Site within thirty (30) days of the <br />receipt of Lessee's appraisal by Lessor, Lessor shall retain an MAI appraiser who shall render a <br />written appraisal of the fair market rental of the leased premises as of the date of such appraisal. <br />A copy of the appraisal made by Lessor's MAI appraiser shall be given to Lessee within one <br />hundred twenty (120) days of the receipt of Lessee's appraisal by Lessor. If Lessor and Lessee <br />are unable to reach an agreement as to the fair market value of the leased Site within thirty (30) <br />days of the receipt of Lessor's appraisal by Lessee, the MAI appraisers previously retained by <br />Lessor and Lessee shall choose a third MAI appraiser with knowledge of properties in <br />Snohomish County, Washington. If the appraisers chosen by Lessor and Lessee cannot agree <br />upon the selection of the third MAI appraiser within twenty (20) days after being requested to do <br />so, the third appraiser shall be designated by the Presiding Judge of the Snohomish County <br />Superior Court on application of either party upon ten (10) days notice to the other. The three (3) <br />MAI appraisers shall fix and determine by majority vote the fair market rental of the leased <br />premises as of the date of their appraisal. The decision of the appraisers shall be final and <br />binding on the parties. Under no circumstance, however, shall the base monthly rent for any <br />Option Term be less than the monthly rental rate existing at the end of the preceding term. In the <br />event either Lessor or Lessee does not agree with the decision of the appraisers regarding the fair <br />market rental, either party may terminate this Lease upon thirty (30) days written notice. <br />Notwithstanding the foregoing, during the period of this MAI appraisal process where the Rental <br />fee is not yet agreed upon by the parties but the applicable Option Term has begun, Lessee shall <br />continue to pay the monthly rental rate existing at the end of the preceding term, and shall then <br />promptly "true up" any additionally required rental fees at the conclusion of the appraisal <br />process. <br />Page 4 of 22 <br />