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10.4 REET1. Kittitas County reserves the right to impose the BEET 1 tax on all sales <br />of leasehold improvements per RCW 82.46.010). Any city, town, or county may impose a <br />0.25% real estate excise tax — known as REET 1 or the "first quarter percent". If a county <br />imposes this tax, it is applied within the unincorporated areas only. <br />10.3 Encumbrances. Lessee shall not encumber or permit the encumbrance of any <br />real property at the Airport but not including the Premises. Lessee shall not encumber or <br />permit the encumbrance of any of Lessee's rights under this Lease without Lessor's prior <br />written consent, which consent shall not be unreasonably withheld or delayed. Any <br />purported encumbrance of rights in violation of this Section 10 shall be void. In connection <br />with Lessor's consent to any encumbrance, at a minimum the following shall apply: (i) <br />such encumbrance shall only encumber Lessee's leasehold interest for the purpose of <br />securing financing for Lessee's authorized improvements and no other encumbrance shall <br />be permitted; (ii) such encumbrance shall be subordinate to Lessor's interests; (iii) the <br />lienholder must agree to maintain current contact information with Lessor and provide <br />Lessor with concurrent copies of any notices or communications regarding a default; (iv) <br />any default relating to such encumbrance shall be a default of this Lease; (v) such <br />encumbrance shall terminate on or before the Expiration Date and the lienholder must agree <br />to promptly remove such encumbrance when the obligation that it secures has been <br />satisfied; and (vi) Lessor shall have no financial or other obligations to lienholder except <br />as provided in this Section 10.3. If, while such encumbrance is in effect, Lessee defaults <br />under such encumbrance or this Lease and, if such lienholder is in compliance with the <br />provisions set forth in this Section 10 and cures Lessee's defaults of this Lease within thirty <br />(30) days after the first such default, Lessor will permit such lienholder to provide a <br />substitute Lessee, which substitute Lessee must be acceptable to Lessor in its sole <br />discretion under the provisions of Section 10.1, so long as such lienholder fully performs <br />this Lease. if such lienholder fails to comply with any of the foregoing requirements, such <br />failure shall be a default of this Lease and Lessor may at any time and subject to the terms <br />of Section 12 tenminate this Lease and exercise any rights hereunder, including, but not <br />limited to, those set forth at Sections 12 and 6.4. Lessor shall have no obligation to provide <br />any other notices to any lienholder, and Lessor shall have no liability of any kind to any <br />lienholder. <br />10.4 Subleasing and Renting. Upon obtaining Lessor's prior written consent and as <br />otherwise provided in this Section, Lessee shall have the right to sublease or rent portions <br />of the Premises for the storage of Aircraft. Lessor reserves the right to refuse to give such <br />consent if, in Lessor's reasonable business judgment the proposed renter's or sub -lessee's <br />use of the Premises would result in the Premises being used in contravention of the teems <br />of this Lease. Lessee shall impose on all approved renters and sub -lessees the same terns <br />set forth in this Lease to provide for the rights and protections afforded to Lessor hereunder. <br />All such rentals and subleases shalt be consistent with and subordinate to this Lease as it <br />is amended from time to time. Such rentals and subleases shall include the requirement that <br />the renters and sublessees will attorn to and pay rent to Lessor if Lessee ceases to be a party <br />to this Lease or is in default. Lessee shall provide to Lessor a copy of every sublease or <br />rental agreement executed by Lessee. No rental or sublease shall relieve Lessee of any <br />obligations under this Lease. <br />LESSEE e m 16 LESSOR <br />