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KITTITAS COUNTY AIRPORT 4. LEASEHOLD TAX: In addition to any rental herein provided, the Lessee shall pay to the Lessor the leasehold tax as set forth by the State of Washington in Chapter 61, Laws of 1976, Second Executive Session (R.C.W. 82.29A) or as amended. The tax shall be due and payable at the same time the rental charged herein is due and payable. 5. FIRE PROTECTION ASSESSMENT: In addition to any rental herein provided, the Lessee shall pay a fee which shall be in lieu of taxes for fire protection services. The annual rate shall be based upon the annual fire assessment determined by the Kittitas County Assessor and Kittitas Valley Fire & Rescue to be calculated on January 1st of the current year. The assessment shall be pro- rated monthly, due and payable concurrently with the monthly lease payment. 6. UTILITIES: The Lessee shall pay for extension of and all utility services supplied to the premises. Any such extensions shall be subject to the advance review of the Lessor. 7. PURPOSE: It is understood by Lessee that this lease is not for commercial purposes and that the lease rate is for a ground lease for a private Aircraft Hangar. The Lessee shall utilize the premises primarily for an aircraft hangar for non- commercial aircraft storage and maintenance at least seven (7) months out of each calendar year. The land and any improvements are for non-commercial uses only: Lessee shall not conduct any type of commercial activity from said premises. without first obtaining the prior written approval of the Department of Public Works. No planes shall be allowed to be tied -down on the apron area of the leased premises. The leased premises are specifically for the private hangar. 8. RULES AND REGULATIONS: The Lessee agrees to comply with all pertinent rules and regulations of the federal, state and local governments, as well as the rules, regulations, ordinances, and minimum standards of the Kittitas County Airport (Bowers Field), as are presently in effect and may in the future be adopted. The rules, regulations, ordinances and minimum standards of the Kittitas County Airport (Bowers Field) are made a part of this Agreement and shall have the same effect as though written herein. A copy of the Kittitas County Airport Standards is on file in the office of the Kittitas County Department of Public Works. 9. IMPROVEMENTS: Upon termination of this lease, for whatever reason and under whatever circumstances, all improvements remaining upon the leased premises become the property of Lessor, free and clear, without any liability of Lessor to Lessee. Should Lessor desire the removal of Lessee's improvements upon the date of lease termination, Lessor shall give Lessee written notice to remove all improvements and return the premises to its state as before the lease at least thirty (30) days prior to the termination date for the lease. Upon removal, the premises shall be left in a neat and orderly condition, without debris and shall be graded level. Should the premises not be left in such condition, after Lessee received such notice, Lessor may remove improvements and repair the premises and seek reimbursement from Lessee in any manner allowed by law. PAGE 4