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HomeMy WebLinkAboutP - Fully ExecutedI KITTITAS COUNTY PORT.BOWERS FIELD Lease Amendment THIS AMENDMENT TO LEASE is made and dated this 2026,by and between KITTITAS COUNTY, a municipal corporation in the State of Washington, hereinafter referred to as the LESSOR, and RBR INVESTMENTS AVIATION LLC, and hereinafter referred to as the LESSEE. WITNESSETH: WHEREAS, by a"ssignment of lease, LESSOR and LESSEE entered into a Lease on May 13, 2024 forLotH-24 of the Kittitas County Amended Binding Site Plan, a copy of said assignment of lease is attached hereto and by this reference incorporated herein; and WHEREAS, assignment of lease was between Mark and Linda Menill (Assignor) and RBR Investments Aviation LLC (Assignee) and Kittitas County; and WHEREAS, Assignee assumed and agreed to perform and fulfii all terms, covenants, conditions, and obligations as LESSEE under the lease; and WHEREAS, assigned Lease entered into on October 1,2022 identified athirty-year (30) lease term with an identified end year of 2032; and WHEREAS, LESSOR and LESSEE desire to amend said lease to reflect the full thirty- year (30) term, to identify an end year of 2052. NOW, THEREFORE,IT IS HEREBY AGREED by and between the parties to correct Scrivenor's error in the Lease Term as follows: l) "Recitals" The first paragraph of fhe.ASSIGNMENT OF'LEASE will reads as follows: Mark and Linda Menill entered into a Lease on the ist day of October 2022, with Kittitas County for the lease of LotH-24 of the Bowers Field Airport Binding Site Plan 2nd Amendment BS-21-00001 through December 3lst,2052. A copy of said Lease is attached hereto as Exhibit A and is hereinafter referred to as the "Lease". 2) "Term" Section 2.lrBffective Date and Initial Term, of HANGAR GROUND LEASE -- will read as follows: The Lease shall be effective as of the Lease Date. 'I'he term of this Lease shall be for a period of thirty (30) years commencing on the Lease Date as provided in Exhibit C, if attached, and ending on December 31, 2052, such period being the "Initial Term" rrr "Tlerul" and including any extensions as provided in Section 2.2. A "Lease Year" meatis the twelve calendar months 7t^day of,W-rt-, Lease Amendment (1) - RBR Investments LLC "I commencing with the month of the Lease Date or Commencement Date, as the case maybe, each year of the Term. FURTHER, all other terms and conditions of the said lease and lease assignment remain in effect and are not altered by this Amendment. IN WITNESS WHEREOF, the LESSOR and LESSEE have signed their names and affixed their seals the day and year first above written. LESSOR: BOARD OF COTINTY COMMISSIONERS KITTIT LI-NTY, WASHINGTON Chairman Board- Julie Kjorsvik n Deputy Chrk of the Bo..d- Mandy Buchholz LESSEE: Vice-Chairman Commissioner 0" RBR Investments LLC Lease Amendment (1) - RBR Investments LLC K I'rTl't'AS CO t i N'r'Y .{ I tt t'( } ttL: B()wEIts l.'I EI,t) rl.Ssl( ;Nl\lIiNT 0F l,l,lASli 'l'his Assigrrnent of l-casc (i\ssigrrnr€'rt) is errtcrr:d into rhis Gt!- drrl ot -y'g-y- -. 2021, bcl$'ccrr i\4AItK AND l.lNDA t'{l1l(Rll.l. (r\ssignor). Il}JIt lNVl ,S'l i\ll:N'l'S ,,\VlAfi'l( )N t,l.C (.4ssigrree). arrd Kittitas Colltrlt, a Washittgtt-rn i\,funicipal ('urTorntion. l{l.Cl'li\Ls lr4ulk lnrl I.indl lVlcrrill cntned intu u l.cirsc on thc l" da1' ol'Octobc-r 2t122, x,ith Kitlitls Counll'tirrthc lease of l,ot lJ-24 ol'thr.'llorvcrs IrirldAirport Birrdirrg Site l'ltn 2"'1.,\rrrendnrcnl llS-21-0{)00 I through Dse crrllcr :i I't, f 032. A cop1,' <rl-saitl LcasEr is attachcd heleto as tixhibit r\ antl is lrcrcinalier rclbred to as thc "l,casc", Orr AprilS, 2{}24, Kittitrs ('ountl,reccived ir l}u*,crs l'iclil l.cusc r\ssignnrerrt llcquest li'onr IVlark alrd Linda tvlerrill, r'ct1r.rc.,;ting thc rcrn*inder of'thc lcasc lcrnr bc assigncd to ItIJI{ Investruents r\viation, l.l-C duc to lhe sale ol'tltc harigar trr said cntitl'. Scctiou l0 -- Assignrrrcnt. Sutrlcasiltg and I{enting: Suhparagraplt l(). I Assignrltcnt ol-[.ease; allorvs lirr this aclion. 'f 'hc Kittitas Clounty tloard of'('ounty ( l()nlnris.rioncrs tleterurine tlrat it is in thc lrst intcrcst ol' the Courttl.' to aulhrlrizc tltc As.siilnnrcnt nt" l-.else. us e xlr:nrlerl. to [tlJR hrvcslnrenls Aviatiort, l.l .(i. t. ASSIGNIVl[N't' ln corrsidcratiort of'the rrrrttual prrlrlisrs ilrrrl cover!arrls sct lirrllr lrcrcirr. r\ssignor assigns. trarrsll'rs nnd r.:ontcys {o;\ssigrrci: all riglrt. litle.;rrrd irrtercsl in thc l.cise. anrl A.ssignce accepts l}om Assignerr illl light, title. and intclr"'st sub.icct to tlic tcrnrs alrd conditiuns sct filrth in this Assignntent. II. ASST i\IP'I'ION OF OITLTCATIONS Assignt:c lrcretry accepts tlris assigrrrrrcnt and. firr lhc bcnctit ol r\ssigrror arrd Countv. cxprcssll'assunlcs and agrccs kt;:crlil'rn and lilllill nll tlrc terllls. covcn:rnts, corrclilion.s. and olrligatiorrs ol'Assigrtrtr as Lc-,(sce turclcr tlrc l-eilsc. irrcluding thc rnaking o1'nll pnl,nlgnts due ttl or paynblr: un lrchall'trf'C'ount!' urrclcr tltr: l.citsc as tlrcy hccorttc iJue alttl p;ryalrlc" III. INI)III\{NIT}' As.rignor irttJcntnilics Assigrree li'om lrrd againsl lnY loss. cost. ol'cx[)ensr'. irrclrtcling illl{ttrlc}' lccs;tttrl ct!tllt ('(}sl\ rcl;tlirtgltr llrc lirilttre rtl .'\s..irlltrr to lirllill Arsigrtor''.s t'rbliglliotts rrrrrlcl lhr: I r';rrc lecrtrirrrt pti'r r,,13\?i,,r* r'l ;rrsi.!:rrtnc nt l4r t ltUY .. ,\.rrig,,.'" I indcrnnilics Assic.rtor liorn rrrd rglirtst an1, kr.ss. c()st, r)r cxpcnsc. inclucling attolncy ibes and coul'l c(Ists rclirtilrg ttr tltc litilurc ol'Assigltce to litllill ohligations undcr tlrc l..case lccruingolF s u hsc. l l r L' n l t o $il n t c r r l' it s s i gtr ru c " t,fiTJgU"_ . IV. CONI'IN(;I.:N(IY Notrvithslandilrg anything lo tlrc c()ntrflry lrcrcirr, this Assignnrent shall be corrtingcrrt upon tlte rcceipt ollhc conscnt of lhc County as eviderrced by its executir)n of thc Cortscnt ol'[-andlorrJ sct lilrlh lrelorv. \T. SU('CRIiSOR!| ANI) ASSI(;NS 1-lris assignruer)t shall bc binding on and inure tlre trenclit ol'thc partics hcrcto, antlthcir l'cspcctivr: lrcirs, .sttcccssors. and assigtts. Vl. COUNTIIRP,{I{IS 'l'hisAgrccnlcntnlny bc e.recuted in rtrultiplc c()untsrllflrts. crtclt ot'n,hich shall bedeented an original. \TII. GOVERNI:iG I,AW 'l'his A.ssignnicnt shall be governcd by and constnlcd in accordance with larvs of the Statc of Washilrgton. vilt. AI"r'IilORITY Fiach pcrson .sigrring hcreunder rvilrriurls that thcy hilr's tlrc cnpacity and the authorir)' (o sign this Assigurnent on helralIof'thc rcspcctivc person or errtitv rvlriclt is lrcirrg rcprcscntcd. IX. M(}DIFICAI'ION This Assignnrcnt nla)' lrc rrrodilied trnly Lr1' r rvrittcn ag,rccrlrctnt sigrrcd b1' all panies. x. \1'^{IVER lf'any pal11, rvaives any lerrtr nr prr:vision of this r\s.signmcnt rl atty tinre. that tvaiver will on11,bc cll'cctive I'or the s;;ccilic instiurcc irnd spccilic purpc.se lirr rt'ith thc rvaivcr rvls givcrr. IF ilny parly lails to cxerci"sc or delays cxcrcisirrg any ol'its riglrts or rentedies under this Assignnrclrt, tltat paft-v retaitts thc riglrt lo crrlbrce tlrrrt tcrttt orprr.rvisir,lr a( a latertilrtc. xt. sEvF:ltA$tLrl'Y If'arr1,r,:rrurt clcterrrtirres lhal utty pnl'ision ol'Assign,ltenl is irrv:rlid or unenlirrceablc, ilry invnlitlity rrr urrcrrfirrctabilitv u'illall'ect orrlv thtr{ provision and rvill not tnnke any olher I proviriion <lf this A.ssignment invalid or unenlbrceable and shall not be moditied, amended or limited only to the extent ncce$ssry to rcnder it valid and enforccable. Exccuted as of the date first atrove written. ASSIGNOR:r- Mark Linda Menill IGNEE: 141 ,l4o*r.cf Matt Berry, RBR Inv6trn*,1* Aviatio$ LLC CONSENT OF LANDLORI} Kittitas County, as l.andlord under this Lease, hereby consents to thc rvithin and tbregoing Assignnrcnt pursuant to the tenn.s and conditions therein set forth, KTTTITAS C(}UNTV: Frcdrickson, Public Works Dircctor Datc: I EXHIBIT A COPY OF LEASE OF LOT H-24 Amended Lease Date: April412023 Original Lease Date: October 1r2022 BOARD OF COUNTY COMMISSIONERS COUNTY OF KITTTTAS STATE OF WASHINGTON Resolution No. 2023 - C 5,\ A RESOLUTION AUTHORIZING AN AMENDMENT OF THE MERRILL LEASE EXECUTED DECEMBER 2I, 2O2ITO REFLECT THE CORRECT LEGAL DESCRIPTION AND ANNUAL LEASE PRICE OF THE REAL PROPERTY LEASED AT THE BOWERS FIELD AIRPORT WHEREAS: Kittitas County Code (KCC) 2.81.060(4) requires that all leases of real property be approved by the Board of County Commissioners (Board); and WHEREAS: The Board of County Commissioners and Malk and Linda Memill previously executed a lease on December 27,2021, for the lease or real property located at the Bowers Field Airporl; and WHEREAS: The legal description of the real property listed in the lease was incorrect; and WIIEREAS: The Parties desire to amend the lease to reflect the correct legally identified piece of real property at the Bowers Field Airport; and WHEREAS: The amendment correctly reflects this legal description of the property as lot H- 24:' and WHEREAS: the size of lot H-158 is 6,960 square feet and the size of lot H-24 7,480 square feet; and WHEREAS: the annual rent for the lease will change from $ I , I I 3.60 to $1,254 per year based on the increased space leased; and WTIEREAS: the parties wish to correct that eror such that the Tenant's lease is for lot H-24 for the annual rent of $1,254.00. NOW, THEREFORE, BE IT RESOLVED: The Board of County Commissioners hereby authorizes the execution of the lease amendment attached hereto and incorporated herein by this reference. ADoP'f'riD rtri* 4ft day frPtri'lrurr. BOARD OF COUNTY COMMISSIONERS KITTIT INGTON li I ABSENT Commissioner oft Clerk of the Board I<ITTITAS 'C'OIJ[T.FYAIRPORT DEPARTMENT David Ohl, Airport Director 04t0412023 AIRPORT HANGAR GROUND LEASE AMENDMENT WHEREAS: on December 1,2021, Kittitas County ("County") and Linda and Mark Merrill (hereinafter "Tenant") entered into an "Airport Hangar Ground Lease" (hereinafter 'lease') for real property at the Bowers Field Airpoft, as authorized by Resolution 2021-195; and WHEREAS: the legal description erroneously set forth lot H-158 rather than lot H-24; and WHEREAS: the size of lot H-15B is 6,960 square feet and the size of lotH-24 is 7,480 square feet; and WHEREAS: the annual rent for the lease will change from $1 ,113.60 to $1 ,254 per year based on the increased space leased; and WHEREAS: the parties wish to correct that error such that the Tenant's lease is for lot H-24 for the annual rent of $1,254.00. NOW, THEREFORE, BE IT RESOLVED: The Tenant and County agree to amend said lease by (1) correcting the legal description to reference lot H-24, which is 7,480 square feet, (rather than lot H-158 that is 6,960 square feet) and (2) specifying that the annual rent is $1 ,254.00 (rather than $1 ,1 13.00), All other tenns and conditions of the lease slrall remain iu ftlll force and effect IN WITNESS WHE , County and Tenant have signed their names and affixed their 2023.seals the 4l'. day or GOUNTY:tttllllltllrr/ llilil 1'L-lL/, BOARD OF COUNTY COMMISSIONERS , WASHINGTON Approved as to form: ABSENT 3110 Airport Rd, Ste, #'l Ellensburg, WA 98926 TEL (5os) e33-821e Airport Page2 Deputy Prosecuting Attomey Commissioner TENANT: Linda and Mark Menill 3110 Alrport Rd. Ste. #1 Ellensbury, WA 98926 TEL (509) 962-8219 BOARD OF COUNTY COMMISSIONERS COUNTY OF KITTITAS STATE OF WASHINGTON RESOLUTION No.: z0zr- | 0!{ Authorization to Execute a Lcasc for Pronerty at Borvers Field WHEREAS, Kittitas County owns and rents out property at its Bowers Field Airporl; and, WHEREAS, llaving such leases maximizes the benefit to the county taxpayers; and, WHEREAS' l,inda and Mark Merill desires to rent such property, and after notice and hearing, the BOCC tinds that execution of such a leasc is in thc public's best intcrcst. NOW, THEREFORE BE IT RESOLVED: The Board of County Commissioners authorizes the execution of the attached lease for property at the Bowers Field Airport with Fred Benson. ADoPTED thi, ?jt aryoMr. BOARD OF COUNTY IONERS AS Commissioner APPROVED AS TO FORM:A .HE BOARD ,lilt ll til lie A. Kjorsvik Neil A. Caulkins, Deputy Prosecuting Attorney I r^(/A t,\vL efP *\an (f gh [-AC' L,\.5., r/'l- OPPO { P(| TIANGAR GROUND LEASE tnVvttr+*, 'l'hisr\iulolt I lryrgar'(inlund l.ease (herrinaf te r "|,EASE") is madc and entered into as of thc ls day ol'ffi&:fr;y and between KIT'II'IAS COIJNTY, a Washington MunicipatCoryoration (hereinafter *I,ESSOR') and Linda and Mark Merrill (hereinafter "l,FISSEE'), WITNESSETH: WHEREAS, LDSSOR owns the Kittitas County Regiorral Airport-Bowers Field (ELN) (hereinafter "AIRPORT") which is operated by thc Airport Depadrnent, WHEREAS, LESSOR has approved property available fbr lease as provided by this l,EASFIand I,ESSEE dcsires to occupy and use such property in accordance with this l,F.ASFI, NOW THEREFORE. in consideration of the mutual promises herein and the bcnefit to be derived hy each party, the parties agree as tbllows: I. PREMISES: I.ESSOR hereby leases to I.ESSEE and LESSEE hereby lcases from L.ESSOR that portion of'the AIRPOR'I described in Exhibit A attached hercto and incorporated herein by this rcference. (hereinafter "PREMISES") tbr thc puryoses set forth in this LEASE. I,F.SSEE agrees to accept the PREMISES "As ls," and I,FISSOR makes no wananty as to the condition of the PREMISES or their suilability for any particular purpose. 2, TERM: Term. 2.1 Effectivc Date and Initial Term. I'he Lease shall be eftbctive as oflthe Lease Date. 'fhe tenn of this Lcase shall be for a period of thirty (30) years commencing on the Lease Date as pncvided in Exhibit C, ifattached, and ending on Decernber 3 |e,2032, such period be ing the "lnitial Tcm" or "Term" and including any extensions as provided in Section 2.2. A "l,ease Year" rncans the twelve calendar months commcncing with thc month olthc Lcase Date orCommcncement Date. as the case maybe, each year of the Term, 2.2 Options to Extend. l.essei shall have the option to extend this Lea.se for'l'wo (2) additional period(s) olTen (10) years each ilLessee is not then in default of this Lease and delivers a written notice of the exercise olthe then current option to extend to l,essor at lcast nincty (90) days prior lo lhe expiration of the lnitial Term or prior option period, as the case maybe. lrissnn /H, r4AW\ I LnssoRFJ 2.3 Expiration Date. The date on which this l.ease expires under the telnrs of Sections 2.1 or2.2 shall be the "Expimtion Date.t' 3. RENT: lnitial rent fbr thc LEAST') will bc $00. l6 per square foot (6.960 sq, ft.) per year lor an annual total of $ l,l 13.60 to be paid annually. Due Date: Annual rent payments shall be payablc in advance and due on ol betbrc LEASE anniversary date of l*tof January each year during the T'ERM of this LEASI. Monthly payments can be made, but there will bc an additional ten (10%) percent rnonthly administration fee charged for this servicc. 3.1 Payment: Any amount duc in connection with this l.ease shall be due without prior notice or demand. cxccpt when notice is necessary to make Lessee awarc of an amount due, and shall be paid without offset, abatement, or deduction. Lessor shall first apply any sum paid to past due rent (beginning the most recent amount due), including latc fces and intercst as provided herein. No statement on any check or elsewhcrc shall be deemed to create an accord and satisfaction. l.essor may accept any payment (including but not limited to, past due amounts and related charges) without prejudice to Lessor's rights to any default under this Lease. [f any check paid on behalfof lrssee is dishonortd by a bank, Lcssee shall pay all charges that the bank may &ssess to Lessor plus a service charge of Fifty Dollars ($50.00) per occurence. Lessee shall make payments to Lcssor at the address set forlh in Section 13.7 (or such other address as l,essor may designate in writing from time to time. 3.2 Dcposit: ln addition to initial rent and upon cxccution ofthis LEASE by both parties, I,ESSEE shall deposit with LESSOR the amount of one year's renl plus leasehold tax as a guaranlee of LESSEE's performance of this LEASE and the tirnely payment of the rental provided tbr herein; and in the event I-ESSEE shall fail to pay the rental as provided herein, or otherwisc breach this LEASE, then the Airpoft Director rnay apply such deposit, or any part thereof as rnay bc necessary, to the payment of rental or to the payment oldamages for such brcach or pursue any other remedies provided herein. In the event that such dcposit is used by the county for payment related lo an incidcnt oflbrcach, the LESSEE shall replenish the deposit after each and every expenditure so as to retain the amount of one year's rent and lcaschold tax in the deposit account. LnssEE:frp- tffi\,\4 2 r,nssonfi3)-- I J.3 Past Due Amounts: 3,3.1 Annuul Rental Payments: lfl Lessee fails to pay the annual rent when due under this l,ease, such unpaid amount shall bcar interest at the rate oltwelvc percent (12%) per annum lrom the due date olsLrch amount to thc datc of payment in full, with intercst. 3.3.2 Monthly Rental Payments: If Lessce fails to pay the monthly rental payment when due under this Lease, such unpaid amount shall bea' interest at the rate oftwelve percent ( l2%) f-rom thc due date olsuch amount to the date olpayment in full, with interest. 3.4 Rental Adjustments: Effbctive this date: Iamary l.2A22.the yearly LEASE rate shall be increased by eight percent (8%) every five years as a set LEASE rate increase, 3.5 Leasehold Tax ln addition to any rental herein provided, the LESSEE shall pay to the LF.SSOR the leasehold tax as set forth by thc State of Washington R.C.W, 82.294.030 or as amended. The tax shall be due and payable at the same time the rcntal chargcd hcrein is due and payable. Curently, the Leaschold Tax rate is at twelve-point eighty-four percent (12.84o/o). 4. USE: Lessee agrees that it shall use the Premises for the following purposes and for no other purposes: construction, operation and maintenance of an aircraft hangar consistent with Federal Aviation Administration standards, stateand County standards, to include the Kittitas County Airport Minirnum Standards, Airport Master Plan, Bowers Field Rules and Regulations, and Local z.oning. Any object, equipment or vehicle that prevents an aircraft from being storcd in a hangar is not allowed. An "aircraft" shall be any aircraft that LESSEE owns or leases (or that is subject to an authorized subleasc) whcn approved in writing in advance by I.ESSOR, LESSEE shall provide proof of thc ownership or lease of any Aircraft upon LESSOR's rcquest. Thc Aircraft identificd at Exhibit C are the Aircraft approved by LESSOR upon entering this [,EASE, and LESSEE shall provide the same informatiori to LESSOR in writing when requesting approval for any subsequent Aircntft. LESSEE rnay store additional aircraft not owned or leased by I,ESSEE upon approval by thc LESSOR and providing Hangar-Keeper's liability insurance with the County as additional insured as defined in Exhibit F. LEssEEdtr.,3 U^AM LESSOREJ 4.1 No Unauthorized Usc: l,flssI'lE and LESSEI's associates, (lessee's employees, otficers, directors, contractors, subcontractors, suppliet..s, agcnts, invitccs and othcr rcprcsentatives) shall use the l'Rl-.MlSES and the Airport only for purposcs that are expressly authorized by this LEASE and not prohibited by statc, tbderal and local laws and rcgulations. LESSEE AND LESST'IF.'S associates shall not cngage in any unauthorized uses, including, but not limited to: cngaging in or knowingly allowing any unsale or hazaldous activily, practice or condition to exist on or about the PREMISES; damaging, interlering with. or altering any airport improvement; rcstricting acccss on any rcad or other airport area that LESSEE does not lease; any use that would constitutc a public or private nuisance or a disturbancc or annoyancc to other airport users; any commercial activity without LDSSOR's rcasonable consent; driving a motor vehicle in a prohibited airport location; the usc clf automobile parking areas in a manner not authorized by LESSOR; any use that would intcdbre with any authorized operation at the airport; and any use that would be proh ibited by or would impair covcragc under cithcr pafty's insurance policies. 4.2 Comply with All Laws: LESSEII and I,ESSEE's associates shall comply at all times, at LESSEE's sole cost, with any and all laws and regulations (as amcnded or otherwise modified From time to time) that are applicable to LESSEE's use, occupancy, or operations at the PRIMISIS or the airport (the "Laws and Regulations"), which include. but are not limited to, all laws, statutcs, ordinances, rcgulations, codes, and other pronouncements of any kind having the effect of law including, but not limited to, thc Airport Rulcs and Regulations and Airport Minimurn Standards as adopted from time to time, airport master plans and zoning codes, and all Laws and Regulations pertaining to the environment (the "Environmental [,awsn'); any and all plans pnd programs developed in compliance with such requirements (including, but not limited to, any Airport Security Plan); and all lawful, reasonable, and nondiscriminatory airport policies and other requirements. 4.3 Pcrrnits and Licenses: LESSEE shall obtain and maintain in current status all permits and licenses that arc rcquired under any Laws and Regulations in conncction with LESSEE's usen occr.lpancy, or operations at the PREMISES or the airpoft. 4.4 Taxcs and Liens: L,ESSEE shall pay, or cause to be paid, betbre delinquency, any and all taxes levied, assessed and/or which becomc payablc during the t.EASE term hereol'upon all or any part of the imprcvements, aircraft, equipment flumiture, fixturcs and other peruonal property located in or on the PREMISES or that relate to LESSEE's use, occupancy, or operations at the PREMISES or the airport, together with all othcr obligations for which a licn may be created relating thereto, including, but not limited to, utility chargcs and work for or on any lmprovements. "Iv 4LESSE Mt^4 LtrSS()OFJ 4.5 Signage and Advertising LESSI-rH is not autholized to install or operate any signage outside ol'enclosed structurcs otr thc PREMISFIS, other than the property address and hangar number, or at the airporq except with the prior written approval of I.ESSOR. Any approved signage shall be at LESSEE's expense and shall cornply wiih Laws and Regulations. 4.6 Security LESSEE and LESSEE's associaLes shall at all times whcn on or about the airport comply with all securily measures that LESSOR, Federal Aviation Administration, state. c<lunty or any othcr governmcntal entity having jurisdiction may rcquire in connection with users of the airport, including, but not limited to, any access crcdential requirements. I,ESSEFI agrees that airport access credentials are the property of LESSOR and may bc suspcnded or revoked by l.liSSOR in its solc discretion at any time. I,ESSEE shall pay alt fecs associated with such credentials, and LESSEH, shall immcdiately report to the Airport Management any lost credentials or o'edentials that LESSEE rcmovcs from any employee or any of I,ESSFIE's associatcs. 4.7 Rcmoval of Disabled Aircraft: LESSEE shall promptly remove or cause to be removed from any portion of the airport not leased by LESSEE the aircraft or any other aircraft that LESSEE owns or controls if it becomcs disabled. t.ESSF.FI may store such aircraft within LESStiE's enclosed improvements or, with LESSOR's prior written consent, elsewhere at the airport on terms and conditions established by LESSOR. lf LESSEE thlls to comply with this requirement after a written request by LESSOR to comply (unless the location of the airplane requires immediate rcmoval from active runways or taxiways prccluding ability flor written notification), !,ESSOR may, but is not required to, cause the removal of any such aircraft at LESSEE's sole expense by any means that LESSOR rcasonably determines. lf l.ESSOR is required to movc an aircraft finm an active runway or taxiway, for failure of LESSHH to do so, those costs will also be borne by LESSEE. Any such costs incurred by LESSOR shall become due and owing imrnediately t'rom LESSEE, and subject to late fees, penalties and interest as set forth lor late monthly paym€nts. 4.8 Maintcnancc, Repair, Utilities, and Storagc: I..ESSEE's use, occupancy, and operations at the PREMISES shall bc without cost or expense to LESSOR. LESSEE shall be solely responsible to design and construct all lmptovements and to maintain, repair, reconstruct, and operate thc PREMISES and all improvements at LESSEE's sole cost and expense, including, but not limited to, all charges tbr utility services and their extension, installation and maintcnance, janitorial services, waste disposal, weed control, and on-premises ramp repair and snow removal. LtsSSEE 5t,trss rrufru-LEssoR E ) shall at all tirnes maintain the PREMISFIS and all improvements in a condition that is clean, fiee of debris, safb, sanitary, and in good repair, Allstructural componcnts and fixtures shall be maintained, repaired, and reconstructcd so that thcir functional and economic useful Iifc rcasonably extends to thc end of the lease term, including all extensions and including such itcms as structural components, rootl cxterior of structures, slabs and paving, plumbing, hcating and clsctrical. LESSEE shall pcrfbrm all work in accordancc with federal, state, and local laws and rcgulations and in a good and rvorkmanlike manner. LESSEI shall prornptly remedy any condirion that lails [o meet this standard. Wil.hout limiting the foregoing, t,tiSSEE shall not stole on the PRFIMISES any inoperable vehicles or equipment, discanled or unsightly materials. or materials likely to create a hazard; shall not use areas outside of enclosed buildings for storage; and shall store tmsh in covered metal receptacles. Any substanceormaterialthat is regulated by any Environmental Law shall be governcd by Section 7. lf LESSEE fails to comply with this requirement after a written request by LESSOR to comply, LESSOR may, but is not required to, cause the removal of any such material or to eliminate any such defect, at LESSEE's sole expense by any means that LESSOR reasonably determines. Any such costs incurred by l,essorshall become due and owing immediately from LESSOR, and subject to late fees, penaltics and interest as set fofih for late rnonthly payments. 4.9 Access: t.ESSOR agrees that, if LESSEE is not in breach of this LEASE, LESSEE and LESSEE's Associates(including, but not limited to agents/employeeVinvitees) are authorized for non- exclusive ingress and sgress aoross the common areas of the airport in the areas designated by LESSOR and for the purposes for which they were designed, all as permitted by applicablc Laws and Regulations as defined in Section 4.2, to the extent reasonably necessary l'or LESSEE's use, occupancy, and aircraft operations at the PREMISES. LESSEE is at all times responsible fbr the actions of any and all Associates, both financially and otherwisc. 5. LESSOR'S AUTHORITY: 5.1 Nature ofLessor: LESSOR is a govemmental entity and the owner ofthc AIRPOR'|, and LESSOR has all lawfut rights, powers? and privileges to act in those capacities. LEssEE dLrP lUuq 6 LESSoR K*.} 5.2 Acccss to Premiscs: I,ESSOR fbr itsclf and its commissioncrs, cmployccs, agents, contractors. subcontraclors, and other represenlatives ("LESSOR's Associates") rcserves the right to enter tlte Pretnises upon the givirrg of not less than twenty-foul hours actual prior notice to LESSEE'S authorized reprcsentativc(s) to conduct inspections to determinc compliance with this l.case; providcd, that only reasonable prior notice. as circunrstances reasonably dictate. shall be required in the event of an emergency or security or safety concern. lor non-emclgent issues related to health and salety issues, and to undertake work required by LESSEE. but not completed after written notil'ication, I.ESSOR shall provide 24-hours prior notice of intent to complete such work, For emergency work required to be perfurmed by LESSOR because LESSEE has not completed such work or cannot be located, notice shall be reasonable under the circumstances. 5.3 Applicuble Lnw: This I.,EASE is made pursuant to Chaptcr 2.tl I KCC and is subjcct to the pnrvision.s of Chapter 59. l2 RCW, each as now or hercafter amended, provided, however, that no such amendment shall modily any of the substantive terms hercof. 6. IMPROVEMENTS: 6.1 Authorizedlmprovements: Lessee has the right to construct or maintain a private ailcraft hangar and other aviation- rclated improvements on the premises as specified in Exhibit C. All buildings, trade fixtures and other improvements to the leased property by LESSEE shall confonn to applicable rules, regulations, building and fire codes, and will comply with the Minimum Standards for private hangars at the Kittitas County Airport (Kiltitas County Code f itle l9 as cunently existing or as modified). LISSEE shall procure all building and other permits required by law prior to cornmcnccmcnt of building. All buildings trade fixtures and other improvements shall be designed with a view toward aesthetic considerations and installation shall not commence until plans and specifications therefire have been submitted to and approved in writing by the County, which approval shall not be unrcasonably withheld. 6.2 LIISSOR'S Reprcsentations/requirements related to ground: LESSOR makes no representation or guarantee as to the suitability of the leased arca for constlnction of buildings, roads, ramps, etc., and is not responsible for the costs of cxcavation and/or removal ofany object found either above or below ground level except for hazardous materials and archaeological artilacts existing prior to tenancy. LEssnrdf&*- (A tL\ 7 I LEssoR l5,rt) 6,3 Titlc to Improvcments: During the term of this Lease, provided t,ESSEE is not in delhult, all portions of the lmprovements shall be and remain thc property ot'the LESSEE regardless of its status for tax purposes as being real or personal propcrty. 6.4 Disposition of Improvements upon Termination: Upon tcrmination of this lease, except as stated in sections 6.4.1,6.4.2, all improvements rcmaining upon the lcased premises become the property of LESSOR, lree and clear, without any liability of LESSOR to LESSEE. The lollowing disposition is at thc option of Kittitas County. 6,4.1 Lessec's Ability to Sell Improvements A Lessee who has constructcd improvements upon the leased premises and has at lcast one ( l) ycar of the lease term remaining before the termination of his/her lease, may, after giving notice to the Airport Director of his/her desire to sell, hirc and pay for the services ofan appraiser ofmutual acceptance. The appraiser shall determine the remaining useful life of the improvemcnt, and the County may, if the potential new leasc and tenant appear to be in the County's best interest, lease the premises (land) to this ncw Lessee (improvement purchaser) for fifty (50%) perccnt olthe remaining uselul life of the improvement. This provision is additional to the tenant's ability to simply sell thc improvement and assign or sublet the lease for the remainder of the lease tenn. 6.4,2 Lessee's first right to relense: ln the event the county elects to release, tenant has first right to lease the pnDperty and improvements. For expiring leases with no options to extend the tenant should have the first right to relet the property and improvernents under a new lease at the then current rent, terms, and conditions. 6.43 Removal of Improvements: Should LESSOR desire the removal of I,ESSEE's improvements upon the date of LEASFI termination, LESSOR shall give LESSEE wriften notice to remove all improvements and return the premises to its state as bcfore the LEASE at least thitty (30) days prior to the termination date for the LEASE. Upon rcmoval, the premises shall be left in a neat and orderly condition, without debris and shall be graded level. 6,4,4 Failure to Remove Improvcments as requested: Should the premises not be left in such conclition, after LESSEE received such notice, LESSOR may rcmove improvements and repair the premises and seek reimbursement frum LESSEE in any mannerallowed by law. LEssEE tJ'-I 'U/t4M LEssoRF^L 6.4.5 Intergovernmental and Public Purpose Lease lmprovements: Wherc Lessec is a governmental cntity that would otherwise qrralify fbr an Intergovernme ntal 'l'ransaction undcr KCC 2.81 .090(2), or a bona fidc non-profit organizalion that would otherwise qualify tbr a Public Purposc Lease undcr KCC 2.[t1.090(9), and that [,essee, after termination of the initial lease term (and applicable extensions), during which time improvements were madc to the Lessor's real estate, enters into a second lease tenn, the improvelnents will remain property of such a l,essee lor the initial ten (10) years olthat second leasc tcrm, after which they will revert to the l,essor and the Lessee shall also enter into a building leasc with the [.essor for the remainder of the term fbr the underlying sccond ground lcasc tcrm. 6.4.6 Surrender of Premises [Jpon the expiration o[this l,ease and in the event of the acquisition of the lmprovements by Lessor, Lessee, at l,essee's sole cost, shall (i) prornptly and peaceably surrender to Lessor the Premises anel Improvements clean and free of debris and in good order and condition; (ii) repair in a good and workrnanlike manner any damage to the Premises, reasonable wear and tear excepted, or the Airport by the removal of l,essee's personal propctly; (iii) dclivct to Lcssor all keys and other items integral for access and operation of the Improvements; (iv) perform Lessee's environmental obligations as provided in Section 7; and (v) rernove all movable personal property and trade fixtures and signage that are not owned by Lessor; provided that Lessee must obtain Lessor's prior written consent to rcmove any such property if such removal may impairthe structure of any building. Upon any expiration or termination of this l.ease, including, but not lirnited to, termination for abandonment of the Premises, all propeny that Lessee leaves on the Premises shall conclusively be deemed to havc been abandoncd and may be appropriatcd, sold, slored, destroyed, or otherwise disposed of by L,essor without notice. and without any obligation to account, to Lessee or any other person, provided that the disposition of lmprovcmcnts shall be as provided in Scction 6.4, l,essee shall pay to Lessor all expenses incurred in conneotion with the disposition of such property in excess of any amount received by Lessor from such disposition. 6.5 Fuilure to construct Improvements: LISSEE agrees that, should LESSEE fail to construct the structurc(s) described in Exhibit "[)" as outlined in the negotiated construction schedule and in confbrmity with airport standards (also part of Exhibit D), thi$ lease shall automatically terminate, and LF,SSEE forfeits any and all interest ln the premises. Proposed improvements must have a negotiated construction schedule and be determined in conformity with applicable airport standatds prior to making application for a building permit. Gcneral construction requirements arc attached hereto as Exhibit E and incorporated herein by this retbrence, l,essor approval is rrquircd lor all such buildine permit applications. LtissEnfu- v4 tU^ 9 LEsson$s/__ 6.6 Du$ of LESSEE to prevent or remove encumbrances to improvcmcnts: LISSEE shall, as additional consideration for the grant ofthis l,EASE, insure that all liens, security interest and other encumbrances against said improvements and structures except those creatcd or suffbred by I.HSSOR, whether conscnsual or involuntary, shall be paid, discharged or sarisfied prior to the time for revcrsion thereolto LESSOR; and, in any cvent, thc partics acknowledge that LESSOR shall not, by virtue of termination of the leasehold interest nor reversion of the structures or other improvements. be liable for any debt or encumbrance associated therewith, whether now cxisting or hereafter incurred, levied or attached. 7. HAZARDOUSSUBSTANCES: Except as provided in this Section 4 and otherwise allowed by law, LESSEE shall not, without I,HSSOR's prior wlitten consent, keep on or at'ound the PREMISES for use, handling, transport, disposal, treatment, generation, storage or sale, any substances designated as, or containing components designated as hazardous, dangcrous, toxic, harmful, medical or infectious (collectively refened to as "HAZARDOUS SUBS'|'ANCE-), and/or is subject to regulation by any federal, state or local law, regulation, statute, ordinance or management plan. With nspect to any such HAZ.ARDOUS SUBSTANCE, LESSEE shall: A. Maintain on the PREMISES only reasonable quantities ofsuch HAZARDOUS SUBSTANCEs as are rcasonably necessary, usual and appropriate for the rouline maintenance and operation of the Ailcraft and the lrnprovcments; B. Within five (5) days of LESSOR's request, provide infbnnation to LESSOR regard ing LESSEE's use, hand ling, storage, trcatment, ftansportation, generation, or disposal of HAZARDOUS SUBSl'ANCh,s and provide evidence satisfactory to LESSOR of LESSEE's compliance with the applicable govemment regulations; C. Allow LESSOR or LESSOR's agent, representative or consultant to come on the PREMISES as allowed in Section 5.2 to inspect LESSEE's compliancc with all applicable govemmental regulations regarding HAZARDOUS SUBSTANCES and to assess the envircnmenlal condition ofthe PREMISES, including, but not limited to, the imposition of an environmental audit; D. Comply with all applicable govemmenlal statutes, ordinances, rules, rcgulationg management plans and requircments regarding the properand lawful use, handling, disposition, transpofiation, generation, tneatment, and disposal of HAZARDOUS SUBST'ANCES. Ln$lsEE /Yt- V"l,$/\ 10 LESSOR 7.1 Cleanup Costs, Default anel Indemnilication: LESSEE shall be hrlly and completely liable to LESSOR and shall indcrnnifr, defcnd and save LESSOR hannlcss from any and all cleanup costs, and any and all other chargcs, fces, penalties (civil and criminal) irnposed by any governmental authority with respect to l-ESSEE's unauthorized, negtigent or illegal use, handling, disposal, transportation, gcneration and/or disposal of HAZARDOUS SLJBSTANCF.S, in or ahout the PRF.MISF.S. tJpon I.ESSF)H's delault untler this Section 7, in addition tc) the rights and remedies set lorth elsewhe6 in this I-EASE, LESSOR shall be entitled to the following rights and remedies: A. n t LESSOR's option, to exercise the remedies under the procedures set forth in Section t2; and B. To recover any attd all damages associatcd with thc dcfault, including, but not limited to cleanup costs and chargesn civil and criminal penalties and fbes, loss of AIRPORT revenue by LESSOR, any and all darnages and claims asserted by third parties and LESSOR's attomeys' and consultants' fees and costs. 7.2 Survival: The purvisions of Section 7 shall survive the expiration or earlier termination of this LEASE. 8. INDEMNITY AND INSURANCE: 8.1 Indemnity by LESSEE: Subject to the provisions of Section 8.4 below, LESSEE will save and hold LESSOR, and LESSOR's Associates harmless frum and against all loss, damage, liability or expense, includlng reasonable attorneys' fees, resulting from, claimed by or against or incuned by I,ESSOR or arising from any injury to any penion or loss ofor damage to any pnoperty caused by or resulting from any negligent acl, or otnission or willful misconduct of LESSEE or LESSEE's Associates in, on orabout the PREMISES or AIRPORT or arising from or incuned by reason of any breach or default in thc perflormance of any obligation on LESSEE's part to be performed under the terms of this LEASE and lrom and against all costs, reasonable attomeys' fees, expenses and liabilitics incurred in or about such claim or any action or proceeding brought thercon. Neither I.ESSOR nor LESSOR's Associates shall be liable for any loss or damage to persons or property sustaincd by LESSEE, or other persons, which may be caused by the PREMISES, or any appurtenances thereto, being out olrepair, or by theft or by any act of neglect or omission of LESSEE or I,ESSEE's Associates, or of any other person, or by any other cause ofwhatsoever nature, unless caused by the negligence ofLESSOR or LESS0R's Associates. LEssEE t* t1ntt{ ll LEssoR RJ I 8.2 lndemnity by LESS0R: Subject to the pnrvisions of Section 8.4 below, I,HSSOR willsave and hold LESSEE, and LESSIIE's Associates hannless ftrrtn and against all loss, damage, liability or expense, including reasonable attorneys' f'ees, resulting finnr, clainted by or against or incured by LESSIiF)or arising from any injury to any person or loss of ol damage to any propcrty caused by or rcsulting from any negligcnt act or omission or willlitl misconduct of LESSOR or ot'LESSOR's Associates in or about the PREMISES or AIRPORT or arising fiom or incuned by reason of any breach or default in the perlormance of any obligati<.rn on LESSOR's part to be performed under the terrns of this I,EASE and fiotn and against all cctsts, reasonablc attorneys' fbes, expenses and liabilities incurred in or about such claim or any action or procecding brought thereon. Ncither l.t'lSSt':H nor LblSStrl','s Associates shall be liable flor any loss or damagc to persons or prcpeny sustained by L,ESSOR. orother persons. which lnay be causcd by the AIRPORT, or any appurtenances thereto, being out of repair, or by theft or by any act of neglect or omission of I,FISSOR or I-ESSOR's Associates, or <lf any other person, or by any other cause ofwhatsocver nature, unless caused by the negligence ofLESSEE or LESSEE's Associates. 8.3 LESSEE'S Use: LESSEE shall indemnis and hold hannless I,ESSOR and LESSOR's Associates against and from any and all claims, liability, obligation, cost or expense, including attorneys' fees, incurred or arising flom or by reason of the use ol'the PREMISES by LESSEE or LESSEE's Associates from any activify, work, orthing done, pennitted or suflbred by the I,ESSEE or I,ESSEE's Associates in or about the PREMISES, and shall fufiher indcmnify and hold harmless LESSOR and I-ESSOR's Associates against and from any and all claims, liabilities, costs, obligations and expenses, including uttomeys' fees. arising from or incuned by reason of any breach or default in the pcrformance ol' any obligation on LESSEE's part to bc performcd undcr thc terms ofthis LEASE and from and against all costs, atlorneys' f'ees, expenses and liabilities incuned in or about such claim or any action or proceeding btought thereon. 8.4 Concurrent Negligence: Notwithstanding the provisions of Sections 8.1 or 8.2 above, in the event of the concurrcnt negligence of the LESSEE and LESSEE's Associates on the one hand and that of LESSOR and LESSOR's Associatcs on thc othcr hand. which concuntnt negl igence resu lts in injury or damage to persons or property and relates to the use, occupation, construction, alteration, rcpair, addition to, subtraction fiom, improvement to or maintenance of the PREMISES, thcn: LBSSBE n4M t2 LESSOR A. I.ESSEE's obligation to indernnily I.F.SSOR as set fo(h in this Section shallbc limited to the extent of LESSEE's negligence, and that of LF.SSFIE's Associates, including LESSEE,'s proporlional share of costs, attonteys' t'ecs, and Expenscs incurred in connection with any claim, action or procccding brought with rcspecl to such injury or damage; and B. LF;SSOR's obligation t<l indemniff LESSEE as set tbrth in this Scction shall be limited to the extent of LESSOR's negligence, and that of LISSOR's Associates. including LESSOR's propofiional sharc of costs, attomcys' f'ees, and cxpenses incurred in connection with any claim, action tlr pr<lceeding brought with respect to such injury or damagc. ,THE LESSO R AN D LESSEE SP EC I F'ICA I.I,Y AG R EE T'HAT THE P ROV ISIONS O I.' ?'HIS SECTION B ALSO APPLY TO ANY CLAIM OF INJURY OR DAM.4GE']'O T'HE PERS2NS OR PROPERT'Y OF THE LESS2R AND LESSEE'S RESPE(:TIVE EMPT.OYEES, AND LESSOR AND 1,A-.'SE4 AND E^CH OF THEM, SEPARATELY ACKNOWLEDGI\S ANI) AGRT:b:S THAT, AS TO SUC H CLAIMS, EACH AS TO T'I.IE OTITER DOES HEREBY WAIVEANY RIGHT OF IMMUNN'Y WilCIITHEY MAY HAVE UNDER INDUSTRUL INSUMNCE (TITIE 5I RCW AS AMENDED AND UNDER AI'IY SUBSTITUTE OR REP LAC E MENT STAT WEL 7-H I S I4.AI VE R A N D AG REEM ENT' WA S S P EC I F IC A LLY NEGOTIATED BY LESSOR AND LESSEE AND IS SOI.EI.Y FORTHE BENEFIT OI,' LESSOR AND LESSEE AND THEIRSUCCESSOR.S AND ASSIGNS AND IS NOT INTENDED AS A WAIVER OF EITIIER'S NGHTS OF IMMUNITY UNDER SAID INDUST'RUL INSUMNCE F'ORANY OTHER PURPOSE. 8.5 fnsurance: 'lhe LESSEE shall obtain and maintain in force during the brm of this agreement a liabitity insurance policy, which provides protcction for bodily injury (including death) and property damage. Said insurance shall provide coverage by the LESSEE to any employees or permittees ofthe LESSEE and shall name the LESSOR as coinsured. All policies (cxcept any policies required fbr workers' cornpensation or errors and ornissions) and the certificates evidencing coverage shall name Lessor and l.essor's Associates as additional insurcds. Lcssee shall provide for a renewal of all insurance coverage on a timely basis to prevcnt any lapse in coverage. Allcertifications of meeting the insurance requirements ofthis lease are attached hereto as Exhibit F and incorporated herein by this reflerencc. The I.ESSEE shall provide the LESSOR with a copy of said insurance policy. LESSBE#-.tF- WilA l3 8.5.1 Aviation liability insurancc that includes premises liability, and, if applicable, mobile equipment coverage with a combined single limit for bodily injury and propcrty damage of not less than <lnc million dollars ($1,000.000) per occurrcncc, including, but not limited to, contractrral liability coverage For Lcsses's perfumancc of the indernnity l.ease set forth in Section 8,1. lf any such coveragc is not available to lessee in the fonn of an aircraft liabiliry Policy, Lessee shall obtain substantially sirnilar coverage through a commcrcial general liability policy, 8.5.2 If l,essee drives any vehicle within any aircmft movement area, comprchensive automobile liability coverage for claims and damage due to bodily injury or death of any person or prupsrty damage arising out olLessee's owncrship, rnaintenance, or use ol'any motor vehicles, whcther owned, hired, or non-owned, oI not less than fivc hundred thousand dollars ($500,000) single cornbined limit "per accident" lor bodily injury and property damage. 8.5.3 Any pollution legal liability insurance obtained by Lessee shall comply with thc requirements for insurance that are stated in this Lease. [f Lcssee cngages in self-lueling, Lessee shall comply with Lessor's selfifueling requirements, including, but not limited to, any pollution legal liability insurancc rcquircments. 8.5.4 Lessee shall obtain insurance coverage for the Aircraft as l.essee may determine. 8.5.5 Lcsscc is responsible for all costs of business or other interruption of activities on or about the Premises and Airport, however incuned, and Lessee may purthase business interuption insurance as Lessee may determine. 8.6 Survival: The obligations olthe partie$ under this Section arising by reason ofany occunence taking place during the term ofthis l,ease shall survive the expiration or earlier termination of this Lcase. 9. NON-DISCRIMINATION: 'lb the cxtcnt required by law, LESSEE, for itselI its personal representative! successors in interest and assigns, as a part of the consideration hereot, does hereby covenant and agrcc as follows: No person, on the grounds of race, color, religion, sex, agc, marital status, handicap or national origin, shall bc unreasonably excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in LESSEE's personnel policies and practices or in the use or operation of LESSEE's services or facilities. LESSEE /Y= t AiIA l4 LDSSOR LESSEH agrees that in the construction of any improvements on, ovcr or utrdcr AIRPORT land and thc furnishing ol' services thereon, no pcrsolr, on thc grounds of race, colol'. religion, sex, nralital status, handicap, age or nalional origin. shall bc unrcasonably excludcd from participation in, denied thc bcnefrts ol; or otherwise be subjected to discrimination. LESSEE shall use the I,REMISES in compliance with all other rcquirernents imposed by or pursuant to Titlc 49. Code of F'ederal Regulations, Departtnent ol'l'tanspoflation, Subtitlc A, Otfice of thc Secretary. Part 21, Non-discrimination in F'ederally Assisted Progrums of thc Department of 'l'ransportation-Effcr:tuation of Titlc Vl of the Civil Rights Act of 1964, and as said Regulations may be amended. It is the policy of the Departrnent olTransportation that minority busincss enterprise as defined in 49 CF'R Paft 46, i.c., firms owncd and controlled by minorities; firms owned and controlled by women and firms owncd and controlled by financially disadvantagcd persons; shall have the maximum opportunity to participate in the perfonnance of Agreements as dctined in 49 CFR Section 23.-5. Consequently, this Agreement is subject to 49 CFR Parl23 as applicable. L,ESSEE hereby assures that no person shall be excluded fnrm participation in, dcnied the benefits of or otherwise discriminatcd against in connection with the award and performance of any contract, including leases and agreements, covered by 49 CFR Par|23 on the grounds of race, color, national origin or sex. LIISSEE hereby assures that it will include the above clauses in all sub-leases and cause sub-tenants to similarly include clauses in further sub-leases or partial assignments. 10. Assignment, Subleasing and Renting. Except as provided in this Section 10, l,essee shall not scll, assign, sublct, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, nor rent or sublet the whole or any part of the Premises, nor shall this t,ease or any interest he re under be assignable or transferable by operation of law or by any process or proceeding of any coutt, or otherwise, without the prior written consent of Lessor, which consent shall not be unreasonably withheld or delayed. Month- to-Month leases arc not assignablc. l0.t Assignment by Lessee . Upon receipt of Lessor's prior written consent and as otherwise provided in this Section 10, Lessee shall havc thc right to fully or partially assign its rights under the Lease. Lessor reserves the right to rcf'use to give such consent if, in l,essor's reasonable business judgment the proposed assignee is not financially or otherwise reasonably capable of fully performing thc obligations of l.essee under this [,ease; or that the proposed assignee's use of the Premises Would result in the Premises or lmprovements bcing used in contravention of the terms of this [,ease. 'lhe proposed assignee/purchasEr must meet alI county requirements then existing for a new tenant and assume the existing lease as tenant. ln the event an assignee is approved by Lessor in writing and upon such assignee's written acccptance of all tcrms and conditions of the LESSE Btw fi^M l5 LEssoR 7) Lcase, [.essee shall bc relcased lrorn any fLfthcr<lbligation underthe l.ease. Provided, in the evcnt of a partial assignment. thc Lessee and the assignec shall rcrnain and be jointly and sevemlly liablc fbr all Lessee obligations undcr thc Lease, and all referenccs to Lcsscc in the Lcase shall then and thereaftcr be deemed to includc any and all parlialassignees. 10.2 Assignment by Lessor. Lessol shall have the right, in Lessor's sole discretion, to assign anyof its rights underthis Lease (and in connection thcrewith, shall bedeemed to have rlelegated its duties), and upon any such assignment, Lcsscc agrees that l,essee shall perform its obligations underthis Leasc in flavor of such assignee. 10.3 Transfer Fee. Each time the right to occupy a hangar unit is transfened by an assignment, sublcase or sale, the Lessce shall pay the l.essor a surn of $525.00, as an adnrinistration fbe. 10.4 RBETI. Kittitas County reserves the right to impose the RFIH'I' I tax on all sales of leasehold irnprovements per RCW 82.46,010). Any city, town, or county may impose a 0)5% real estate excise tax - known as REET I or the "ftrst quartcr pcrccnt". lf a county imposcs this tax, it is applied within the unincorporated areas only' 10.3 Encumbrances. Lessee shall not sncumber or permit the encumbrance of any real property at the Airport but not including the Prernises. Lessee shall not encumber or pcrmit the encumbrance of any of Lessee's rights under this Lease without Lessor's prior written consento which consent shall not be unreasonably withheld or delayed. Any purported encumbrance of rights in violation of this Section l0 shall be void. ln connection with Lessor's conscnt to any encurnbrance, at a minimum the following shall apply: (i) such encumbmnce shall only encumber Lessee's leasehold interest for the purpose of securing financing for Lessee 's authorized improvements and no other encumbrance shall be permitted; (ii) such encumbrance shall bc subordinate to Lessor's interests; (iii) the lienholder must agree to maintain current contact information with Lessor and provide Lcssor with concurrent copies of any notices or communications regarding a default; (iv) any defaulf relating to such encumbrance shall be a default of this Lease; (v) such encumbrance shall terminate on or before the Expiration Datc and the lienholder must agree to promptly remove such encumbrance when the obligation that it securcs has been satislled; and (vi) Lessor shall have no financial or other obligations to lienholder except as providcd in this Section 10.3. lf, while such encumbrance is in effect, Lessee defaults under such encurnbrance or this Lease and. if such licnholdcr is in compliance with thc provisions set forth in this Section l0 and cures Lessee 's defaults of this Lease within thirty (30) days after the first such default, Lessor will permit such lienholder to provide a substitute [,essee, which substitute Lessec must be acceptable to Lessor in its sole discretionundertheprovisionsofsection 10.[,solongassuchlienholderftrllyperlbrrns this Leasc. lf such lienholder fhils to comply with any of the foregoing requirements, such failurc shatl be a default of this l,ease and Lcssor rnay at any time and subject to the terms of Scction l2 terminate this Lease and exercisc any rights hereunder, including, but not Iimited to, those sct tbrth at Sections 12 and 6,4, l,essor shall have no obligation to provide any other notices to any lienholder, and Lessor shall have no liability of any kind to any lienholdcr. SSEE#Fv-LD M rAA l6 L EssoR-E)- 10.4 Subleasing and Renting. Upon obtaining Lessor's prior writtcn consent and as othcrwise ptovided in this Section, Lessee shall have the right to sublease or rcnt portions of the Prcrnises lbr the storage of'Aircraft. Lessor reserves the Light to refuse to give such consent if,, in Lcssor's rsasonable business.iudgnrent the proposed renter's or sub-lessee's usc of the Prcmises would result in the Prernises being used in contravention of the terms of this Lease. l.essee shall impose on all approvcd renters and sub-lessees the same tcrms set lorth in this l.case to provide for the rights and protections afforded to l-essor hereurrdcr. All such rentals antl subleases shall be consistent with and subordinate to this l,ease as it is arnended from timc to tirne. Such rentals and subleascs shall include the requirement that thc renters and sublcssees will attorn to and pay rent to Lcssor if l,essee ceases to he a pany to this l.ease or is in dcfbult, Lessee shall provide to Lessor a copy of every sublease or rental agleement exccuted by Lessee. No rental or subleasc shall rclicvc l,cssee of any obligations under this Leasc. I l. Damage, Destruction, and Condcmnation. It.l Damage or Destruction of Premises. If any portion of the Premises or the lmprovements is damaged in any manner, Lessee shall promptly remove from the Airport all damages and debris and timely cause repairs to be made to restore the Premiscs and Improvements to an ordcrly and safe condition; provided the Lessec shall not be required to restore the lmprovements. ln the event new lmprovements are undertaken by Lessee, all work shall be perfbrmed in accordance with the ternrs of this Lease, and Lessee shall not receive any abatement of Lessee's rent obligations. lL.2 Condemnation. ln the event of any condemnation proceeding in which allor any part of thc Premises or lrnprovements is taken, l,essee may pursue a claitn against the condemner for the value of the lmprovcmcnts and Lcssce's leasehold interest condemned. and any sub-Lessees may pursue a clairn against the condemner for the value of theirsub tenancy interests. ln the event of a partial taking. I-essor shall rcducc thc ground rent payablc by Lessee on a pro rata basis for portions of, the Premises so taken. If Lessor determines in its sole discretion that all or a material portion of the Premises will be, or has been rendered, not reasonably subject to lease as a result of such taking, Lessor may terminate this Lcase by giving Lessee a writtcn notice of termination, and this Lease shall terminate under the provisions of Section 12.2 at the time specified in the notice, which shall not be less than thirty (30) days after the date ofsuch notice. 12. Default. l2.l Lcssee's Default.'l'he occurrencc of any of the following events shallconstitute a default by Lessee under this Leasc unless cured within thirty (30) days following written notice of such violation from Lessor:(i) L,essee lailsto timely payany installmcntolrent or any additional rent; (ii) Lessce violates any requirement under this Lease, includ ing, but not limited to, abandonrnent ofthe Premises; (iii) Lessee assigns or enoumbers any right in this Lease, delegates any performance hereunder, or sublcascs or rents any part ofthe l)rcnrises, cK$opt as cxprcssly purnilted in this t,casel (iv) l,csscc filcs a pctition in r,nssrinftz-- tl l,llssoR frr*L ttu[ 0\A bankruptcy or has a petition filed against l,esscc in bankruptcy, insolvency, or fbr reorganization or appointmcnt of a rcce iver or trustee which is not distnissed within sixty (60) days; (v) or Lesscc petitions lor or enters into an arrangernent tbr the benctit of creditors, or suflfers this Lcasc to bccomc sub.iect to a writ of cxecution and such writ is not released within thifty (30) days. lf the nature of l.essee's obligation is such that ntore than thirty (30) days are reasonably required fur porftirrnance or cul'e or a diffcrcnt time flor perlormancc is specified, Lessee shall not be in default if Lesscc comrnences performance within such thirty (30) day or specified period and thereaflcr diligcntly prosecutes the same to completion. 12.2 Rcmedies. Upon any de{ault by Lcsscc urrder this Lease and subject to Section 12, Lessor may al any time pursue any orall remedies available to Lessor, including, but not limited to, the following: (i) perfonn in Lesssc's stcad any obligation that Lessee has failed to pcrforrn, and l.essec shall prornptly pay to Lessor all costs incumed by Lessor fbr such perforrnance, together with interest and service fees for any past due amounts (as provided in Section 3.2) and an administrative charge equal to twclvc pcrccnt (l2o/o) of the cost incurred by l.essor which the parties agrec is a reasonable estimate of ancl liquidated damagcs for Lessor's overhead expenses associated with such performance; (ii) tcrminatc Lessee's rights under this Leasc upon delivering awritten notice of termination; and (iii) re-enter and take possession of the Premiscs by any lawFul rneans with or without terminatirrg this Lease. l-cssee shall pay all costs and damages arising out of Lessee's dcfault, including, but not limited to, the cost of recovering possession of thc Premises, the cost of irnproving and leletting thc Premises, including, but not limited to, any real estatc bruker fees or rnarketing costs, and attorneys' fces and costs regardless of whether Formal action is commenced or conctuded. No action by Lessor or Lessor's Associates shall be construed as an election by Lessor to t€rminate this Lease or accept any surrender of the Prcmises unless Lessor provides Lessee with a written notice expressly stating that l.essor has terminated this Lease or accepted a surrender of the Premises. Following a default by l.essee under this Lease, Lcssor shall exercise commercially reasonable, good faith etfofts to mitigate its damagcs as required by applicable law. 12.3 Default by Lessor. Lessor shall not be in defhult under this Lease unless Lessor fails to perform an obligation required of Lessor under this Lcase within thirty (30) days after written notice by l,essee to Lessor, lf the nature of Lessor's obligation is such that morc than thirty (30) days are reasonably required for pcrforrnancc ot cure, Lessor shall not be in dcfault if Lessor commences performance within such thirty (30) day period and thereafter diligently prosecutcs the same to completion, 12.4 Survival.'fhe prcvisions of this Section 12and the remedies and rights pr<lvided in Section 7 shall survive any expiration or termination of this l,ease. 12.5 Holding Ovcr. If Lessee remains in possession of the Prernises and Improvements after any expiration or tcrmination of this Lcasc, it shall be deemed that the Lessee has entcrcd inlo such occupancy without the pcrmission ol'Lessor, Such occupancy shall not waive any default undcr this l,ease and Lessor may terminate such occupancy as a tenancy at sufferance. During such occupancy, Lessee shall comply with all provisions ofthis l,ease L tAA rA,\ l8 nsson-F:J- along with those that are applicablc to a tcnancy at suFferanceo and reasonable rcnt lor thc Prcmiscs shall be deemed to be the highest ratc then charged al the Airport for ground rent plus rent fbr the hnprovemcnts at its thcn fair market value based on [,essor's survey of rent lor sirnilarly situated facilities al the Airport and al olher sirnilat totiaty airports in the Westcrn United Statcs, which l.essor shall dcterrninc in its reasonablc discrction. 13. Ceneral Provisions. l3.l No Exclusivc Rights, Nothing in this l,ease shall bc construed to grant to l,esscc any exclusivc right or privilege for the conduct of any activity on the Airport, except to lease the Premises for l.essee's exclusivc use as provided herein. 13.2 Leasc Preserves Authority's Compliance. This l.ease shall be interpreted to prcserve Lessor's rights and powers to cornply with Lessor's F'ederal and other governmental obligations. 13.3 Subordination to Authority's Government Commitments. This Lease is subordinate to the provisions of any Lease between Lessor and the United Statcs or other governmenlal authority (regardless of when made) that affects the Airporl, including, but not limited to, leases governing the expenditure of Federal funds for Airport improvetnents. ln the event that the F'ederal Aviation Administration or other governmental authority requires any modification to this Lease as a condition of Lessor cntcring any lease or participating in any program applicable to the Airport, including, but nol limited to, those providing hrnding, Lessee agreesto consent to any such modification. If a governmental authority determines that any act or omission of Lessee or l,essce's Associates has caused or will cause Lessorto be noncompliant with any of Lcssor's government commitmcnts, including, but not lirnited to, any assurances or covenants required of Lessor or obligations imposed by law, Lessee shall immediately takc all actions that may be necessary to prcserve Lessor's compliance with the same. Lessor shall have the right to terminate this Lease and reenter and repossess any porlion of the Premises if the tJ.S. Departrnent of Transportation or other governmental authority having jurisdiction expressly requires any such action, subject to any revicw that may bc aflbdcd to l.essee by such authority. I-essee's remedy shall be against the U,S. Depaftment of Transportation or othcr governmentalauthority having jurisdiction that required such action in the same means as an event of condemnation as provided above in section I 1.2. 13.6 Subordination to Financing and Matters of Record. This [.ease is subordinate to the provisions of any leases or indentures entered by Lessor (regardless of when cntcred) in connection with any dcbt financing applicable to the Airport and is subordinate to any matter of record aflecting the real property ofthe Airport. 13.7 Notices. Any notice, demand, written consent, or other communication required to be in writing under this Lease shall be given in writing by personal delivcry, cxpress mail (postage prepaid), nationally recognized ovcrnight courier with all fces prepaid (such as Federal Express or UPS), or certified mail (return receipt requested and postage prepaid) when atJdressed to the respcctive parties as fbllows: LEssEE fi* ll,A dA t9 l,ess<lr:Airport Dircctor Bowers Field -j I l0 Airport Rd Dllensburg WA 98926 Lcsscc:l-inda and Mark Merrill 4221 Fairview Rd Ellensburg, WA 98926 509-968-3 I 32 Either [.essor or Lessee may change its notice address by giving writtcn noticc (as provided hcrcin) oI such changc to the other party. Any notice, demand, or written consent or communication shall be deemed io have been given, and shall be effcctivc, upon compliancc with this Section 13.7 and delivery to the notice address then in etTect fbr the party to which the notice is directed; provided, however, that such delivery shall not be defeated or delayed by any relusal to accept dclivery or an inability to eflbct delivery because of an address change that was not propcrly communicated, 13.8 Force Majeure. No act or event, whethel tbreseen or unfbrcsecn, shall operate to excuse Lessee from the prompt payment of rent or any other atnounts required to bc paid under this Lcasc. If Lessor, or Lessee in connection with obligations other than payment obligations, is de layed or hindered in any perfbnnance under this Lease by a fbrce majettre event, such performance shall be excused to the extent so delaycd or hindered during the time when such force majcure event is in effect, and such performance shall promptly occur or resume thereafter at thc cxpense of the pafty so delayed or hindered. A "force majeure event" is an act or event, whether foreseen or unforeseen, that prevents a pafty in wholc or in part frorn performing as provided in this Lease, that is beyond the reasonable control of and not the fault of such party, and that such party has been unable to avoid or ovcrcome by exercising duc diligence, and may include, but is not lirnited to, acls of naturen war, riots, pandemics. strikes, accidents, fire, and changes in law. 13.9 Rights and Remedies. Except as expressly set tbrth in this Lease, the rights and remedies set forth in this l,ease are not intended to be exhaustive and the exercise by eithcr party of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently exist. 13.10 Attorneys Fees. lfeither party is required to bring or maintain any action (including assefiion of any counterclaim or cross-claim, or claim in a proceedings in arbitratiott, bankruptcy, receivership or any other proceeding institutcd by a party hereto or by others), or otherwisc refers this Lease to an attorney for the enforcement of any olthe covenants, terms or conditions of this Lease, the prevailing party in such action shall, in addition to all other payments requirtd herein. receive t'rom the other, all the costs incurred by the prevailing party including reasonable attorneys' fees and such costs and reasonable attorncys' fees which the prcvailing pady incurred in, and in prcparation for, suoh action, arbitration, trial, appeal, rcview and/or procccding in bankruptcy court. The provisions of this Section I 3.10 shall survive any expiration or termination of this Lease, Ltisstif -frt' -t- \A^(A 20 l3.l I Governing Law, Vcnue, and Waiver of .Iury Trial. This l.ease and thc rcspective rights and obligations of the parties shall be governed by, intcrprcted, and enlbrced in accordance with the laws of thc Statc of Washington. Venue for any action arising out of or related to this Lease r:r actions contemplated hereby shall be laid in Kittitas County, Washington, and each of tlrc parties hereby irrevocably conscnts to the jurisdiction of the sarnc. LFiSSOR AND LESSEE DACH KNOWINCLY, VOLUNTARILY, ANt) INT'F]N'I'IONALLY WAIVES I'IS RIGITf 'I'O T'RINL BY JTJRY IN ANY AC'I'ION, PROCHEDING, OR COUNTERCI,AIM I]ROUGHI'BY EITHER OF TIIEM ACAINSl- THE O1'IIER FOIT NLt, MAI"I'F]RS ARISlNC OU't'OF OR RELAT'ING 'I'O 'I'IIIS LEASIT OR ANY USE, OCCUPANCY, OR OPFIRA'|IONS AT THE PREMfSF.S OR THE AIRPORT. The provisions of this Section l3.ll shall survive any expilation or tcrmination of this [.eass. 13.12 Amendments and Waivers. No amendrncnt to this l-ease shall be binding on Lessor or Lcsscc unlcss reduced to writing and signed by both parties. No provision of this Lease may be waived, except pursuant to a writing executed by thc party against whom the waiver is sought to be enforced. 13.13 Scverability. If any provision of this [,ease is determincd to be invalid, illegal, or unenforceable, the remaining provisions of this LeasE shall remain in full force and effect if both the economic and legalsubstance of the transactions that this t,ease contemplatos are not affected in any manner materially adverse to any party. lf any provision of this Lease is held invalid, illegal, or unenforceable. thc parties shall negotiate in good faith to modiry this Lease to fulfill as closely as possible the original intents and purposes of this l-easc. l3.l4 Merger. This Lcase constitutes the final, complete, and exclusive Lease between the partics on the matters contained in this Lease. All prior and contentporaneous negotiations and Lcascs between the parties on the matters contained in this Lease are expressly merged into and superseded by this l.ease. ln entering into this Lease, neither party has relicd on any statement, representation, warrantyn nor Lease of the other party except for thosc expressly contained in this Leasc. 13.15 Confidentiality. Lessee acknowledges that Lcssor is subject to legal requirements regarding the public disclosure of records. Lessec shall comply with such laws in connection with rnaking any request that Lcssor maintain a record confidentially, and if l,essee complies with the sarne Lessee shall have the right to defend any such request for confidentiality at Lessee's expense. 13.16 Relationship of Parties. This Lease docs not create any partnership, joint vcnture, ernployment, or agency relationship betwecn the partiss. Nothing in this Lease shall confer upon any other person or entity any right, benefit, or remedy ofany nature. 13.17 Further Assurances. Each party shall execute any document or take any action that rnay be necessary or desirable to consummate and make effectivc a pcrformance that is required under this [,ease, LESSE r,(A ,(A 2t Lrt$so oF\ 13.18 Miscellaneous. The headings in this Lease are provided for convenience only and do not affect this Lease's construction or interpretation. All references to Sections are to Sections in this t,ease. Each provision to be performed by Lessee shall be construed as both a covenant and a condition, This Lcase shall be construed without regard to any presumption or rule requiring construction or interprctation against the drafting party. If l,essee consists of more than one individual or cntity, the obligations of all such individuals and entities shall bejoint and several. References in this Lease to any period ofdays shall mean calendar days unless specifically stated otherwise. 13.19 Binding Obligation. l.essee warranls and represents that it has the right, power, and legal capacity to enter into and perform its obligations under this Lease as a legal, valid, and binding obligation of Lessee. All leases involving maried tenants shall bc executed by both spouses. All entity tenants shall execute the lease by authorized or rcquired penions as established by appropriate documentation which shall be attached hereto as Exhibit G and incorporatcd hcrcin by this reference. Any guarantors shall execute a separate lease guaranty which shall be general in nature unless a limitation is agreed to by the Lessor and shall also be attached hereto as part of Exhibit C. 13.20 Time of Essence. Time is ofthe essence of this Lease. rA^r/t^ 22 LESSOR /3J ntrl!l lN WITNFISS WHEREOF, the LFISSOR and L,ESSEE havc signcd their names and affixed their scals the day and year first abovc writtcn. LESSOR: BOARD OF' COUNTY COMMISSION IjRS KITTITAS COLINTY, WASIIING]ON Commissioner Approved as to Form: Prosecuting Attorney tss *tt"*finr-, otvil/ ' (Signature) Address: 1?Zl Fau^JV*til AD 1ffi>L LEssEE *v MU"\ 23 LESSOR B) Desmiption of the Premises: EXIIIBIT A PREMISES BOWERS FIELD AIRPORT BINDING SITE PLAN AMENDMENT, LOT H.I58 Consisting of6,960 Sq, Ft LESSE EIYau"M 24 LESSOR Ie) EXHIBIT C RENT SCHEDULE (Supersedes Scction 3.1) Rates are based on 6,960 Sq. F't. with an 8olo inclease every 5 years. Term t/t/2022- 12t3U2027 t/v2023- 12t3v2,023 vt/2024- t2/31/2024 ln/2025- l2l3t/2025 vl12026- t2/3112026 1v2027- t213U2027 Syr 9oh fncrease lil/2028- t2t3U2028 Ult2032- t2l3t/2031 Syr 8o/o lncrease Pqerious ${e N/A N/A N/A N/A Rental Rate l.easehold Tax Total Per Ycar $.16 persq. ft.$1,256.59 $.1 6 per sq. ft,$ 1,256.59 $ t,256.59 $1,256.59 LESSET,',il'* t^^UA t2.84% 12.84o/o 12.84o/o 12.84% N/A 12.84% 12.84% $ 1,256.59 $ 1,256.59N/A $1,I 13.60 $.16 persq. ft. $.16 persq. ft, $.16 persq. ft. $.16 per sq. ft. $.16 per sq. ft. $.16 persq. ft. $1,256.59 $ t,357. l2 $1,357.12$.16 per sq. ft. 12.84o/o 12.84o/o 12.840/otlv2029- t2l3tna29 $ I,202.69 $1,202,69 $.16 persq, ft. $.16 per sq. ft. $ t,357. l2 $1,357.12 s t,357. l2$.16 per sq. ft.l2-84o/o 12.84o/o 12.84o/o $ 1,202.69 $1,202.69 $1,202,69 vt/2030- t2l3v2Q30 vtn$t- t2l3U203l 26 t,nssoR EXHIBIT B APPROVED AIRCRAFT Lessee hercby certifies that the Aircraft described in this Exhibit B will be located on the Premises and Lessee will notify the Lessor of any change in the status of the Aircraft. AIRCRAFT TailNo N Maker $t^A7nSr;j,.Si Address: tt>)t (wrvie*t ?A Telephone:KW-q 4$> Kittitas County Airport Airport Model: Year: NIA >flo? LESSEE w\ 25 LnssoR /trJ BXHIBIT I) REQUIRED LESSEN IMPROVEMENTS D-1. On or before -WUb*t_ _, 20Q, Lessec shatl submit to Lessor plans, specifications, engineering and cxterior design lbr the lmprovements, plus such additional information as l,essor may reasonably require (collectively the "Plans") to ensurc compliance with thc Airport building and dcsign standards. D-2. A Lease shall be written and exccuted prior to issuance of a Kittitas County building permit. If for any reason thc building permit is denied by Kittitas County witltout rcrncdy from the lessee within ninety (90) days, thc lcasc will automatically terminate, and thc initial deposit will bc refunded along with the prorated balance olthc initial lease payment, D-3. Lessee shall havc acccss to the Premises from and after Lease Date solely flor the purpose ol'collecting information for the preparation of the Plans and shall perfortn no other wol'k on or about the Premises or the AirPort. D-4 tJpon Lessor's approval of the Plans, Lcssee shall submit for any required building or other permits within thirty (30) days frorn such approval datc. ln the event l,essor and Lessee cannot agree on the Plans within ninety (90) days from the date of original submittal, the Lease shallterminate unless it is continued in force by a writing executed by both parties. D-5. Lessee shall construct the lmprovements specified in accord with Exhibits C and D. The Lessec is responsible for securing the Premises to assure that it is safe for Lessee's and visitors and does not obstruct or interfere with business or aviation activities at the Airport. Lessee shall remove all construction waste, debris, earth, or rocks from the construction site and the adjacent taxiway or aircraft movement area on a daily basis during construction and ttpon cornpletion of construction. Lessee shall asphalt or concrete all surfaces from the existing Airport taxiway to the front of Lcssee's hangar and all adjoining improvements, as well as area required for vehicle parking, if any. All improvemcnts must obtain required approvals from Lessor and the City of Ellensburg prior to commencing construction. lmprovements shall bc rrtially completed, and a cemificate of occupancy issued D-7. Lessee shall cause the construction ofthe lmprovements according to thc Plans, which may bc summarizcd as fbllows: D-6. .fhe on or before LESSEE \/^$\ 27 LfssoR 6) ..)1 EXHIBIT E LESSEE CONSTRUCTION REQUIREMENTS E.l Authorization. l,essee shall not cotnmcncc any construction on the Premiscs without Lcssor's prior written consent and applicable permits lor all work to bc conducted. l,essee shall submit plans and schedule to Lessor when making any request to construct improvements. l,essor rnay requcst any inlbrrnation, request rnodifications, consent to, or deny l,essee's request in Lcssor's reasonablc discretion. For any authorized project, Lcssee shall provide Lcssor with copies of all plans, specifications, and construction docurnents during the progress of thc work, and the matters containcd thcrcin shall be subiect to Lessor's consent. Lessee shall rnake no material changes to thc work without l.essor's prior written consent. 8,2 Requircd Construction Standards and Pcrmits. All work shall be performed in a good and workmanlikc manner and shall be equal to or greater than the quality of the original materials. workmanship, and appearance of similar work performed by Lessor elsewhere at the Airport. Work shall be perlorrned by qualified and properly licensed personnel. All work shall confonn to Laws and Regulotions, including, but not limited to, thc Unifbrm Building Code, Uniform Fire Code, and other codes, standards, permits, and plan check requirements as the satne may be adopted by the City of Ellcnsburg and Kittitas County, as well as any applicable federalor state laws or published Airport standards relating to airport improvements. Lessee shall not commence construction for a hangar or other authorized improvemcnt without first obtaining a Kittitas County building permit and an FAA determination pursuant to FAA Form 7460-l that is acceptable to FAA and Lessor. Work shall be performed in a safe manner, and Lessor shall have the right, but not the duty, to stop any work until safety conditions can be investigated and implemented. The work site shall be secured consistent with industry standards at Airports during the perfonnance of the work. 8.3 Coordination. Lesscc shall coordinate all work with Airport activities, and shall minimize any disruption to Airport activities, Lessees, and other Airport users, Lessor shall have the right, but not the duty, to direct that l,essee and Lessee's Assooiates cease activities or revise work plans to avoid disruption. Lessee and Lessee's Associates shall meet with Lessor as requested by Lessor as the work progresses and provide Lessor with infbrrnation as Lessor may require. Lessor may require l,essee to comply with other measures that are in Lessor's interests in conncction with any conskuction activities. 8.4 Indemnification, Insurance, and Bonds. l-cssee shall cause Lessec's Associates who are perforrning any work relating to constructing improvements to provide the following: 8.4.1 Indemnify. Lessec shall require such associates to indemnify Lessor in connection with Lessor's interests consistent with the indemnity obligation of Section 7.1 , LnssEEJr/ iAArA 28 -.r \ LESSoR D^) 8.4.2 Insurance. Lesscc shall provide or shall require Lessec's Associates to providc buildcr's risk coverage to insure the improvements constructed on the Pretnises to the extent olnot lcss than one hundred percent (100%) of such improvements' tirll insurable value using the all-risk forrn of protectiorr. as well as gencral liability, auto, and workers cornpensation insurancc covcragc as set florth in Section 7 to cover such work. Lessee shall also require design prolessionals to provids errcrs and omissions coverage in an amount not less than one million dollars ($ 1,000,000). All such insurance shall comply with and be subjcct to Lcssor's insurance requirements including, but not limited l<1, thosc sct forth at Exhibit F. 8.4.3 Bonds. If required by Lessor; [,essee shall provide or shall require Lessee Associates, as appropriale, to provide construction payment and performance bonds in atnounts covering not lcss than onc hundred ten percent ( I l0olo) of the contract pricc of such improvements and in a ftrrm acceptable to Lessor. All such bonds shall name Lessor as a co-obligee. 8.5 Lcase Applicable to Work. The provisions of this Leasc shall apply to all work pursued by Lessee to construct improvcmcnts, rcgardless of whether such work cornrnences or concludes before thc Lease Date or after any expiration or termination of this Lease, including, but not limited to, Lessee's indemnity, waiver, and insurance obligations under Section 7 and repair obligations under Section 5.8, provisions prohibiting liens, and provisions requiring compliance with all Laws and Regulations. Lcssec shallprovide I'orcompliance with this Lease's requirements by Lessee's Associates who are perforrning any work rclating to constructing improvements. 8.6 Default for Failure to Complete. Lessee shall comply with the construction schedule approved by Lessor. lf such construction is not completed materially within any times required by Lessee's approved schedule, or if for any reason Lessee fails to complete construction within qA days of Lessee's approved date lbr substantial completion, Lessee shall be in default under this Lease and Lessor shall have all of the rights set forth in Section l2 regarding a forfeiture of lmprovements in addition to all other remedies. Upon any default, L,essee shall turn over to Lessor copies olall records associated with the work and shall work cooperatively with l,essor. 8,7 Final Submittals, Lessee shall subrnit the lollowing to Lessor wil.hin nincty (90) days of bcncficial occupancy: 8.7 .l Free of Liens. Lessee shall subm it a state rnent that the Prem ises and hnprovements are free and clear of all liens, claims. or cncumbranccs, cxccpt when specifically authorized in the rnanner perrnitted under this l,ease. 8.7.2 As-Built Drawings. Lessee shall submit at its expcnsc a complete set of accurate "as-built" plans and specifications for the Improvements. Such plans and speoifications shall include one set of bond paper "record" drawings and electronic drawings that conform to a lormat and to standards spccified by Lessor. frfu--LESSE tfultt^ 29 LEssoR-,[g.l- 8.8 tnltial Lessee Improvements. l,essor has authorized and Lessee shall construct the initial imprcvements that are summarized in Exhibit D, and such obligation includes, but is not limited to, the plans, sohedule, and date for access to fte Premiseg in connection with such improvements. ln"\/"\ 30 R) 1 BXHIBIT F INSURANCE REQUIREMENTS F.l General Require ments. At all tirnes when this Lcase is in e ffect l.essee shall rnaintain in forcc all required insurancc coverage and shall have on file with the Lessor Certificates of lnsurancc evidencing thc same. All certit'icates shall be signed by a person authorized by the insurer and licensed by thc State of Washington. All policies, except any policies required lbr workers' compensation or errors and omissions, and the cerlificates evidencing coverage shall namc l-essor and Lessor's Associatcs as additional insureds. Lessec shall provide for a renewal of all insurance covcrage on a tirnely basis to prevent any lapsc in coverage. l,essor retains the right to approve any deductibles, and l.essee shall notiff l.essor of any material erosion of the aggregate limits of any policy. Lessee's policies shall be primary. F.2 Minimum Requirements. Lessor's insurance requirements are minimum requirements as statcd in the Bowcrs Field Minimum Standards, and Lessee is responsible to obtain adequate insurancc coverage as Lessee may determine. Exceptas otherwise expressly sct forth in this l,easc, Lessee assumes all risk under this Lease (including, but not limited to, busincss interruption claims) whether or not insured. F'.3 Waiver of Subrogation. Notwithstanding any other provision contained in this Lease, each of the parties hereby waives any rights of subrogation it may have against the other pafty for loss or damage from any risk that is covered by insurance (including, but not limited to, claims for business interruption), Each of the parties shall obtain a clause or endorsement providing for such waivcr of subrogation in any policies ol insurance required under this Lease. F.4 Terms Subject to Change. Lessor, in its sole and absolute discretion, teseryes the right to review and adjust at any time Lessee's required insurance limits, types of coverage, and any other terms applicable to insurance to insure against any risk associated with this Lease or Lessee's use, occupancy, ol operations at the Airport. Among other things, Lessor may review any or all insumnce coverage on a periodic basis and in connection with any specific activity or event associated with the Airport or proposed by Lessee. F.5 Reimbursement for Increased Costs to Lessor. If any insurance carricr providing coverage to Lessor increases its charge ofany policy of insurance carried by Lessor as a result of this Lcase or Lessee's use, occupancyo or operations at the Airport, Lessce shall pay the amount of such incrcase within ten (10) days alter Lessor delivers to Lcssce a certified statement from Lessor's insurance carricr stating the amount ofthe increase attributable to Lessee, J' tAAtt^ 3l a( LESSOR I') EXHTBIT G LEASE GUARANTY lN CONSIDERATION OF, and as an inducemcnt tbr the granting, execution and delivery of that certain Lease, covering thr;. Prernises dcscribed therein at -Bqvf Sf-S -Fi<\d -,, and datcd O(;foB€P l,'?<r'LL llrereafter called the "Lease"), betwecn 1/,'4.1-(o t &ruv{.v A-rp" ,+ .. the l.essol therein named (hereafter callcd thc "l,cssor"), and ffutgt+ ' ^4<rrlll utird,e ltrurn1 the l.essee therein namecl (hereallcr called the "Lessce"), the undersigned, (hereafter called the "()uaranlor"), hereby guarantees lo tlre l,essor, its successon and assigns, the tirll and prompt payrnent of Rent as def'ined in the l,ease and any and all other sums and charges payable by thc Lessee. its successors and assigns under the Lease; and the full performancc and observance ofall the covenants, terlrs, conditions and agrecrncnts thcrein provided to be perlormed and observed by the Lessee, its successors and a^ssigns; and the Guarantor hercby covenants and agrces to and with the l,essor, its successors and assigns, in the payrnent of any such sums, or in the performance of any of tlre tenns, covernnts, provisions orconditions contained in said Lease, the Cuarantor will tbrthwith pay Rent to tlrc l,essor, ils successors and assigns, and any arrcars theleof, and will fottltwith t?rithfully perform and fulfill all of such terms, covenants, conditions and provisions and will forthwith pay to the l,cssor all darnages that may arisc in consequence olany default by the Lessee, its suicessors and assigns under said l,case, including, wilhout lirnitation, all reasonable attorney.s' tbes incuncd by the [.essor or caused by any such default and by the entbrcenrent ofthis Guaranty. THIS GUARANTY IS AN ABSOLUTE AND UNCONDITIONAL GUARANTY OF PAYMENT AND OF PERFORMANCE. lt shall be enforceable against the Grnrantor, its successors and assigns, without the necessity fbr any suit or proceedings on the Lessor's part of any kind or nalure whatsoever against the l-cssee, its successors and assigns, and without the necessity of any notice of non-payment, non-performance or non-obseryance, or ofany notice ofacceptance of this Guaranty, or ofany other notice or demand to which the Cuarantor rnight otherwise be entilled, all of which the Guarantor hereby exprcssly waives; and the Cuarantor hereby expressly agrees tlrat the validity of this Guaranty and thc obligations of the Guarantor hereunder shall not in any way be terminated or dirninished, affected or impaired by reason of the asseftion or the failure to assert by the Lessor against lhe Lcssecs, or the Lessee's successors and assigns, ofany ofthe righls or renredies rcscrvcd to the Lessor pursuant to the provisions oftlrc said Lease; providcd, however, that in tlre event and to the extent that l,essee is rcleased from any or all obligations under the Lcase, (juaranlor shall be released from this Guaranty and such obligations to thc same extent, THE C UARANTV SHALL BE a continuing Cuaranly, and the liability of the Cuarantor hereunder shall in no way be affected, rnodified or diminished by reason of any assignrnent, renewal, modification or extension of the Lease or by reason of any modificatiorr or waiver of or changc in any of the terms, covenants, conditions or provisions ofsaid Lease, ol by reason ofany extension oftitne that may be granted by the Lessor to the [,essce, its successors or assigns, or by reason ofany dealings or transactions or matters or things occurling belween the I.essor and Lessee, ils successors or assigns, whether or not notice thereof is given to thc Cuarantor, LEssEE#r- u4rr4 32 rnsson-B-L ALL OF THE LESSOR|S rights and remedies under this Guaranty are intended to be distinct, joint and several, and separate and cumulative and no such right and remedy therein or herein mentioned is intended to be in exclusion of or a waiver of any of the others. GUARANTOR: {,"ILrntutiL(, BUSINESS ADDRESS: BUSINESS HOME ADDRESS: *!dtt- &+rvt"e-'^'-H- S"lBtrts bvuc, h/A 1t1z 1-v HOME TELEPHONENO,: ffi-ltoti3r3_l-,_ LESSEE rl4e\ 33 r,nsson-EcJ KITTITAS COUNTY NOTTCE OF NOTARY BOWERS FIELD AIRPORT LESSEE; DATE:5-!1-7> onro. S{ (_:z-Z_ STATE OF WASHINGTON COLJNTY OF KITTITAS ,2022 before me personally u and fwrL lr-ttrrt'llwho executed the within and foregoing instrument and acknowledged said instrument to be their free and voluntary act, Given under my hand and official seal the day and year last above written. dd" khJ+ S Noi'ary f{iUtic in and for the State of Washington Residing ar Ztlhsbu.f - My Appbintment Expires' 01fJ5/lO*l', LESS WlA 34 LESSOR: 'I] IE KI'I'1'I'I-AS COUN'I'Y uoARr)coil KITTITAS COUNTY NOTICE OF'NOTARY BOWERS I'IELD AIRPORT MI NERS COMMISSIONER STATE OF'WASHINCTON COUNTY OI? KIT'I'ITNS On this $t of me pcrsonally to me to d elected, qualified and acting County County, Washington, who executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and dc'cd of said County, tbr the uses and purposes therein mentioned, and each on oath stated that they were authorized to execute said instrument by rcsolution of the Board of County Commissioners of said county, and that the seal alfixed is the official seal of said County. Given unrler my hand and official seal the day and year last above written. h Op ry Puttl and the State of Washington at My Appointment Expircs J- lq-e a LESSE r^\ 35 -\LESSOR f\^ J