CarreraHangars_LeaseAmendment_Bowers Field

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KITTITAS COUNTY AIRPORT 3. INTENT OF AGREEMENT: The intent of this agreement is to allow Lessee to develop what is now bare land into an upscale aircraft hangar complex. The hangars include the addition of all necessary infrastructure (access roads, taxiways, water, sewer, gas, telephone, etc.), but only to the extent required for such development, at the sole expense of Lessee. Failure to commence the construction of the infrastructure required for development within TEN (10) months from the effective date of this lease, or to complete the same within three (3) years from the effective date of this lease, shall be grounds for termination of this Lease at the sole discretion of the Lessor. Lessee may develop all or any portion of the Agreement Property as provided in the plat map attached hereto as Exhibit A, subject to the terms and conditions set forth elsewhere herein. 4. ADJUSTMENT OF RENTAL: Pursuant to RCW 36.34.180 the rental for every five year period thereafter, or part thereof, at the commencement of such period, shall be readjusted and fixed by the Board of County Commissioners; (a) After the fifth year, the Lessor shall have the right to readjust the rent on or before March 1 sc of the fifth, tenth, fifteenth, twentieth, twenty- fifth, thirtieth, and thirty-fifth years of this lease for each following five year period; and the increase shall BE THE CUMULATIVE EFFECT OF THE CPI INDEX OVER THE PREVIOUS FIVE YEARS. It is agreed between LESSOR and LESSEE that the following CPI Index will be used for future rental increases: "CPI — All Cities All Items Size Class D Under 50,000." (b) If there is a mathematical dispute and the Lessee does not agree that the CPI index, above listed, yields the rental rates for one of the subsequent five year terms, the Lessee may request arbitration. If the Lessee elects to arbitrate, the Lessee shall select one arbitrator and the Lessor shall select one arbitrator and the two so chosen shall select a third arbitrator. The arbitrators shall have the authority to calculate the rental rate for the next five years based upon the above -listed CPI index, and both parties shall be bound by the decision of the arbitrators. The cost of arbitration shall be bome by the Lessee. 5. 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. Lessee shall neither suffer nor permit the attachment of any lien or other encumbrance on the Property. ASSOCIATION LEASE PAGE 2