HomeMy WebLinkAboutPermit PAG-13-003
OPERATING PERMIT AND AGREEMENT
between the City of Renton and Mobile Experience Solutions LLC
THIS IS A PERMIT TO OPERATE AN AVIATION RELATED ACTIVITY UPON THE RENTON
MUNICIPAL AIRPORT AND AN AGREEMENT (hereinafter "Operating Permit") between THE CITY
OF RENTON, a Washington municipal corporation (hereinafter "Permittor"), and Mobile
Experience Solutions LLC, a limited liability company (hereinafter "Permittee").
IN CONSIDERATION of the covenants and agreements hereinafter set forth, the parties
agree as follows:
1. ACKNOWLEDGEMENT OF SUB-LEASE:
1.1. Pursuant to lease agreement LAG 84-006 executed on September 1, 1984, the City
of Renton (Landlord) granted a lease of the subject premises to Plane Space Investments, Inc.,
as Lessee, for the purpose of operating a Fixed Based Operation, which includes/included
aircraft repair, maintenance and storage facilities. On June 21, 1994, the entire ground lease
(LAG 84-006) was assigned from Plane Space Investments, Inc. to Puget Sound Industries, Inc.
On March 25, 1997, the entire ground lease (LAG 84-006) was assigned from Puget Sound
Industries, Inc., to Cliff Howard Aviation and Bahr Aero, aka Sky Harbor Aviation. On April 29,
1999, the entire ground lease (LAG 84-006) was assigned from Cliff Howard Aviation and Bahr
Aero, aka Sky Harbor Aviation LLC, to South Cove Ventures LLC, dba Aerodyne LLC (hereinafter
"Lessee").
1.2. Thereafter, Aerodyne LLC (Lessee) sublet a portion of the subject premises to
Mobile Experience Solutions LLC, (Permittee) by sublease agreement, executed on December 1,
2011, for the purpose/purposes of operating an avionics maintenance and aircraft maintenance
business located at 300 Airport Way.
2. GRANT OF OPERATING PERMIT:
2.1. Description of Premises: The Premises subleased by Mobile Experience
Solutions LLC, the Permittee, is described in the sublease as the office space located at 300
Airport Way and addressed as Suite 201 and Suite 202, and attached hereto and incorporated
by this reference.
2.2. Common Areas: Permittee, and its authorized representatives, subtenants,
assignees, agents, invitees, and licensees, shall have the right to use, in common with others,
on a non-exclusive basis and subject to the Airport Regulations and Minimum Standards (as
they may be amended from time to time) pursuant to Section 8.5 below, and subject to the
terms of its sublease, the public portion of the Renton Municipal Airport (aka Clayton Scott
Field, hereinafter referred to as "Airport"), including the runway and other public facilities
provided thereon.
OPERATING PERMIT ORIGINAL
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2.2.1. Notwithstanding anything in this Operating Permit to the contrary, Permittor
acknowledges that direct access to the taxiways and runway from the Premises is essential to
the conduct of Permittee's business on the Premises and, except during construction activities
occurring on the taxiways, runway or weather-related events, Permittor shall not do anything
that would interfere with direct access to the taxiways and runway by the Permittee and its
representatives, subtenants, assignees, agents, invitees, and licensees during the Term of this
Operating Permit, PROVIDED that if Permittor plans any construction activity on the taxiways
or runway, Permittor will schedule such activity so as not to interfere with Permittee's use of
the Premises, the taxiways, or the runway, will notify Permittee of any plans for such activity
not less than six months in advance of the commencement of such activity, and will consult
and coordinate with Permittee to ensure that such activity does not interfere with Permittee's
use of the Premises, the taxiways, or runway, except that in the case of an emergency
Permittor may proceed with such activity without notice to the Lessee and will use its best
reasonable efforts not to interfere with Permittee's use of the Premises, taxiway, or runway in
addressing such emergency. For purposes of this provision, an "emergency' is a condition that
presents an imminent threat of bodily injury to or death of any person or loss of or significant
damage to any property.
3. CONDITIONS:
3.1. Specific Conditions: This Operating Permit, and Permittee's rights and
permitted uses under this Operating Permit, are subject to the following:
3.1.1. Easements, restrictions and reservations of record;
3.1.2. The Airport Regulations and Minimum Standards pursuant to Section 8.5
below, including Permittor's standards concerning operation of aviation activities from
the Airport; and
3.1.3. All such non-discriminatory charges and fees for use of the Airport as
may be established from time to time by Permittor as set out in Section 5.3. of this
Operating Permit.
3.2. No Conveyance of Airport: This Operating Permit shall in no way be deemed to be
a conveyance of the Airport, and shall not be construed as providing any special privilege for
any public portion of the Airport except as described herein. The Permittor reserves the
absolute right to lease or permit the use of any portion of the Airport for any purpose deemed
suitable for the Airport, except that portion that is permitted hereby.
3.3. Nature of Permittor's Interest: It is expressly understood and agreed that
Permittor holds and operates the Airport, and the Premises under and subject to a grant and
conveyance thereof to Permittor from the United States of America, acting through its
Reconstruction Finance Corporation, and subject to all the reservations, restrictions, rights,
conditions, and exceptions of the United States therein and thereunder, which grant and
conveyance has been filed for record in the office of the Recorder of King County, Washington,
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and recorded in Volume 2668 of Deeds, Page 386; and further that Permittor holds and
operates said Airport and Premises under and subject to the State Aeronautics Acts of the
State of Washington (chapter 165, laws of 1947), and any subsequent amendments thereof or
subsequent legislation of said state and all rules and regulations lawfully promulgated under
any act or legislation adopted by the State of Washington or by the United States or the
Federal Aviation Administration. It is expressly agreed that the Permittee also accepts and will
hold and use this Operating Permit and the Premises subject thereto and to all contingencies,
risks, and eventualities of or arising out of the foregoing, and if this Operating Permit, its Term,
or any conditions or provisions of this Operating Permit are or become in conflict with or
impaired or defeated by any such legislation, rules, regulations, contingencies or risks, the
latter shall control and, if necessary, modify or supersede any provision of this Operating
Permit affected thereby, all without any liability on the part of, or recourse against, Permittor
in favor of Permittee, provided that Permittor does not exceed its authority under the
foregoing legislation, rules and regulations.
3.4. Future Development/Funding: Subject always to Permittee's rights under Section
2.2.1 of this Operating Permit, nothing contained in this Operating Permit shall operate or be
construed to prevent or hinder the future development, improvements, or operation of Airport
by Permittor, its agents, successors or assigns, or any department or agency of the State of
Washington or of the United States, or the consummation of any loan or grant of federal or
state funds in aid of the development, improvement, or operation of the Renton Municipal
Airport. But Permittor's exercise of such rights shall not unreasonably interfere with
Permittee's rights under this Operating Permit.
4. TERM OF LEASE, SUBLEASE AND OPERATING PERMIT:'
4.1. Initial Term: The term of the sublease to Mobile Experience Solutions LLC is on a
month-to-month basis commencing on January 1, 2013 and terminating on December 31,
2013.
4.3. Permit Term: The term of this Operating Permit is month-to-month and may be
extended to include any Extended Term as may be in effect between Aerodyne LLC (Lessee)
and Mobile Experience Solutions LLC (Sublessee/Permittee). This Operating Permit may be
extended on a month-to-month basis by operation of any extension of the sublease, with all
other terms and conditions of this Operating Permit remaining in full force and effect. In no
event will the term of the Operating Permit and Agreement be extended beyond August 31,
2016.
5. RENTAL:
5.1. Rent on lease: As rental for the premises described in LAG 84-006 and addenda
thereto, Lessee has agreed to pay Permittor a ground lease rate of$0.62/sq ft/year on 77,710
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square feet or forty-eight thousand one hundred eighty dollars and twenty cents ($48,180.20)
per year or a monthly rental in the sum of four thousand fifteen dollars and two cents
($4,015.02) throughout the twelve (12) month period commencing on September 1, 2011
which does not include leasehold excise tax. Lessee has agreed to pay Permittor a reduced
ground lease rate of$0.41/sq ft/year on 5,984 square feet or two thousand four hundred fifty-
three dollars and forty-four cents ($2,453.44) per year or a monthly rental in the sum of two
hundred four dollars and forty-six cents ($204.46)throughout the twelve (12) month period
commencing on September 1, 2011 which does not include leasehold excise tax for a vehicle
parking lot. The Rental amount set out herein is subject to Periodic Rental Adjustments as set
out in lease LAG 84-006.
5.2. Rent on sublease: As rental for the premises described in Section 2, above, during
the term of this permit, Permittee has agreed to pay Lessee a monthly rental in the sum of
seven hundred fifty dollars ($750.00) which does not include leasehold excise tax. In the event
Lessee fails to pay the rent identified in Section 5.1., and any future rental rate increases, then
Permittee may, whether Permittee subleases all or part of Lessee's Airport leasehold interest
as described in LAG 84-006 and addenda thereto, pay said rent, when due. In the event
neither Lessee nor Permittee pay said rent, then the Permittor may terminate this permit with
ten (10) days' notice.
5.3. Other Charges: Permittee further agrees to pay, in addition to the rental specified
and other charges hereinabove defined, all fees and charges now in effect or hereafter levied
or established by Permittor, or its successors, or by any other governmental agency or
authority, being or becoming levied or charged against the premises, structures, business
operations, or activities conducted by or use made by Permittee of, on, and from the leased
premises which shall include, but not be limited to, all charges for light, heat, gas, power,
garbage, water and other utilities, Aircraft Rescue and Fire Fighting services or services
rendered to said premises. In the event Lessee fails to pay the other charges identified in this
Section 5.3, then Permittee may, whether Permittee subleases all or part of Lessee's Airport
leasehold interest as described in lease LAG 84-006 and addenda thereto, pay said other
charges, when due. In the event neither the Lessee nor the Permittee pay said other charges,
then the Permittor may terminate this permit with ten (10) days' notice.
5.4. Leasehold Excise Tax: In the event that the State of Washington or any other
governmental authority having jurisdiction thereover shall hereafter levy or impose any similar
tax or charge on the leasehold estate described herein, and Lessee fails to pay said tax or
charge, then Permittee may, whether Permittee subleases all or part of Lessee's Airport
leasehold interest as described in LAG 84-006 and addenda thereto, pay said tax or charge,
when due. Such tax or charge shall be in addition to the regular monthly rentals. In the event
neither Lessee nor Permittee pay said tax or charge, then the Permittor may terminate this
permit with ten (10) days' notice.
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6. PAYMENT OF UTILITIES AND RELATED SERVICES:
6.1. Whether Permittee subleases all or part of Lessee's Airport leasehold interest as
described in LAG 84-006 and addenda thereto, if Lessee fails to pay such utilities and service
charges, then Permittee may pay all light, heat, gas, power, garbage, water, sewer and
janitorial service used in or on the Premises when due. In the event neither Lessee nor the
Permittee pay said utility or service charges, then the Permittor may terminate this permit with
ten (10) days' notice.
6.2. Permittor shall not be liable for any loss or damage caused by or resulting from any
variation, interruption, or failure of said utility services due to any cause whatsoever; and no
temporary interruption or failure of such services incident to the making of repairs, alterations
or improvements, or due to accident, strike, act of God, or conditions or events not under
Permittor's control, shall be deemed a breach of the Permit or as an eviction of Permittee, or
relieve Permittee from any of its obligations hereunder.
7. PERMITTEE'S ACCEPTANCE OF PREMISES:
7.1. Acceptance of Premises: By occupying the Premises, Permittee formally accepts
the same in AS IS condition, and acknowledges that the Permittor has complied with all the
requirements imposed upon it under the terms of this Permit with respect to the condition of
the Premises at the commencement of this term. Permittee hereby accepts the Premises
subject to all applicable zoning, municipal, county and state laws, ordinances and regulations
governing and regulating the use of the Premises, and accepts this Permit subject thereto and
to all matters disclosed thereby and by any exhibits attached hereto. Permittee acknowledges
that neither Permittor nor Permittor's agent has made any representation or warranty as to
the suitability of the Premises for the conduct of Permittee's business or use. Except as
otherwise provided herein, Permittor warrants Permittee's right to peaceably and quietly enjoy
the premises without any disturbance from Permittor, or others claiming by or through
Permittor.
8. PURPOSE AND USE:
8.1. Use of Premises: The Premises are leased to the Permittee for the purpose of
operating an avionics and aircraft maintenance business in accordance with the Airport
Regulations and Minimum Standards pursuant to Section 8.5 below.
8.2. Continuous Use: Permittee covenants that the Premises shall be continuously
used for those purposes during the term of this Operating Permit, shall not be allowed to stand
vacant or idle, and shall not be used for any other purpose without Permittor's written consent
first having been obtained. Consent of Permittor to other types of activities will not be
unreasonably withheld.
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8.3. Non-Aviation Uses Prohibited: Permittee agrees that, except as expressly provided
above, the Premises may not be used for uses or activities that are not related, directly or
indirectly, to aviation.
8.4. Si ns: No advertising matter or signs shall be at any time displayed on the
subleased premises or structures without the written approval of Permittor, which will not be
unreasonably withheld. One sign, of the type and dimensions specified by the Airport
Manager, shall be permitted to be displayed on the Rainier and Airport Way entrance fences
through the termination date of this Operating Permit.
8.5. Conformity with Rules: Permittee further covenants to keep and operate the
Premises and all structures, improvements, and activities in conformity with all rules,
regulations and laws now existing or hereafter adopted by Permittor, including the Airport
Regulations and Minimum Standards which are incorporated herein by this reference, the
Federal Aviation Administration, the State Aeronautics Commission, or other duly constituted
governmental authority, all at Permittee's cost and expense.
8.6. Waste, Nuisance, Illegal Activities: Permittee shall not permit any waste, damage,
or injury to the Premises or improvements thereon, nor allow the maintenance of any nuisance
thereon, nor the use thereof for any illegal purposes or activities.
8.7. Increased Insurance Risk: Permittee shall not do or permit to be done in or about
the Premises anything which will be dangerous to life or limb, or which will increase any
insurance rates upon the Premises or other buildings and improvements at the Airport.
8.8. Aircraft Registration Compliance: The Permittee is hereby notified of the
Washington State law concerning aircraft registration and the requirement that the Lessee
comply therewith. See Title 47.68.250 RCW: Public Highways and Transportation.
9. HAZARDOUS SUBSTANCE USE:
9.1. Permittee's Representation and Warranty: Permittee shall not dispose of or
otherwise allow the release of any Hazardous Substances in, on or under the Premises, or the
Property, or in any Permittee improvements or alterations placed on the Premises by
Permittee. Permittee represents and warrants to the Permittor that Permittee's intended use
of the Premises does not and will not involve the use, production, disposal or bringing on to
the Premises of any hazardous substance, hazardous material, waste, pollutant, or
contaminant, as those terms are defined in any federal, state, county, or city law or regulation
(collectively, "Hazardous Substances") other than fuels, lubricants and other products which
are customary and necessary for use in Permittee's ordinary course of business, provided that
such products are used, stored and disposed of in accordance with applicable laws and
manufacturer's and supplier's guidelines. Permittee shall promptly comply with all laws and
with all orders, decrees or judgments of governmental authorities or courts having jurisdiction,
relating to the use, collection,treatment, disposal, storage, control, removal or cleanup by
Permittee of Hazardous Substances, in, on or under the Premises, or incorporated in any
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improvements or alterations made by Permittee to the Premises, at Permittee's sole cost and
expense.
9.2. Standard of Care: Permittee agrees to use a high degree of care to be certain that
no Hazardous Substances are improperly used, released or disposed in, on or under the
Premises during the Term by Permittee, or its authorized representatives or assigns, or are
improperly used, released or disposed on the Premises by the act of any third party.
9.3. Compliance Notification: In the event of non-compliance by Permittee, after
notice to Permittee and a reasonable opportunity for Permittee to effect such compliance,
Permittor may, but is not obligated to, enter upon the Premises and take such actions and
incur such costs and expenses to effect such compliance with laws as it deems advisable to
protect its interest in the Premises, provided, however that the Permittor shall not be
obligated to give Permittee notice and an opportunity to effect such compliance if (i) such
delay might result in material adverse harm to the Premises or the Airport, or (ii) an emergency
exists. Permittee shall reimburse Permittor for the full amount of all costs and expenses
incurred by Permittor in connection with such compliance activities and such obligation shall
continue even after expiration or termination of the Term. Permittee shall notify Permittor
immediately of any release of any Hazardous Substances in, on or under the Premises.
9.4. Indemnity:
9.4.1. Permittor shall have no responsibility to the Permittee, or any other third party,
for remedial action under R.C.W. Chapter 70.105D, or other federal, state, county or municipal
laws, in the event of a release of or disposition of any Hazardous Substances in, on or under
the Premises during the Term that were caused by Permittee. Permittee shall defend,
indemnify and hold harmless Permittor, its officials, employees, agents, and contractors
(hereinafter "City Indemnitees") from any claims (including without limitation third party
claims for personal injury or real or personal property damage), actions, administrative
proceedings,judgments, penalties, fines, liability, loss, damage, obligation or expense,
including, but not limited to, fees incurred by the Permittor or City Indemnitees for attorneys,
consultants, engineers, damages, environmental resource damages, and remedial action under
RCW Chapter 70.105D or other remediation, arising by reason of the release or disposition of
any Hazardous Substances in, on or under the Premises during the Term that are caused by
Permittee.
9.4.2. Permittee shall have no responsibility to the Permittor, or any other third party,
for remedial action under RCW Chapter 70.105D, or other federal, state, county or municipal
laws, nor shall Permittee have any other liability or responsibility of any kind, in the event of
the presence, release, or disposition of any Hazardous Substance on, in or under the Premises
unless such presence, release, or disposition of any Hazardous Substance was caused by
Permittee. Permittor shall defend, indemnify and hold harmless Permittee, and their directors,
officers, agents, employees, and contractors (collectively, "Indemnitees") from any claims
(including without limitation third party claims for personal injury or real or personal property
damage), actions, administrative proceedings,judgments, penalties, fines, liability, loss,
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damage, obligation or expense, including, but not limited to, fees incurred by Permittee or any
Indemnitee for attorneys, consultants, engineers, damages, environmental resource damages,
and remedial action under RCW Chapter 70.105D or other Remediation, arising from or in
connection with the presence, suspected presence, release or suspected release of any
Hazardous Substances in, on or under the Premises that is not caused, in whole or in part, by
Permittee or the Indemnitees.
9.4.3. The provisions of this Subsection 9.4 shall survive the expiration or sooner
termination of the Term. No subsequent modification or termination of this Operating Permit
by agreement of the parties or otherwise shall be construed to waive or to modify any
provisions of this Section unless the termination or modification agreement or other document
expressly so states in writing.
9.5. Dispute Resolution: In the event of any dispute between the parties concerning
whether any Hazardous Substances were brought onto the Premises by Permittee, or whether
any release of or disposition of any Hazardous Substance was caused by Permittee, the parties
agree to submit the dispute for resolution by arbitration upon demand by either party. Each
party shall select one (1) arbitrator. The two (2) selected arbitrators, if unable to agree within
a period of thirty (30) days after such appointment, as that term is defined in Section 9.5.1 of
this Operating Permit, shall select a third arbitrator. The arbitrators shall be environmental
consultants with experience in the identification and remediation of Hazardous Substances.
The arbitrators shall make their decision in writing within sixty (60) days after their
appointment, unless the time is extended by the agreement of the parties. The decision of a
majority of the arbitrators shall be final and binding upon the parties. Each party shall bear the
cost of the arbitrator named by it. The expenses of the third arbitrator shall be borne by the
parties equally.
9.5.1. Appointed Arbitrators: The two appointed arbitrators shall meet, and shall make
their decision in writing within thirty (30) days after the date of their appointment. If the
appointment date for either arbitrator is later than the other, the latter date shall be the
appointment date for purposes of the thirty (30) day deadline. If the two arbitrators are
unable to agree within a period of thirty (30) days after such appointment, they shall, within a
period of thirty (30) days after the first thirty (30) day period, select a third arbitrator. If such
third arbitrator has not been selected or if such third arbitrator has not accepted such
appointment within such thirty (30) day period, either Permittor or Permittee may apply to the
head of the Seattle office of the American Arbitration Association to appoint said third
arbitrator.
The three arbitrators shall have thirty (30) days from the date of selection of the third
arbitrator to reach a majority decision unless the time is extended by agreement of both
parties. The decision of the majority of such arbitrators shall be final and binding upon the
parties hereto.
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10. MAINTENANCE:
10.1. Maintenance of Premises: The Premises and all of the improvements or
structures thereon and authorized by the Permittor for use by the Permittee, shall be used and
maintained by Permittee in an operable, neat, orderly, and sanitary manner. Permittor shall
not be called upon to make any improvements, alteration, or repair of any kind upon the
Premises. Permittee is responsible for the clean-up and proper disposal at reasonable and
regular intervals of rubbish, trash, waste and leaves around the Premises, including that blown
against fences bordering the Premises, whether as a result of the Permittee's activities or
having been deposited upon the Premises from other areas.
10.2. Removal of Snow/Floodwater/Mud: Permittee shall be responsible for removal
of snow and/or floodwaters or mud deposited there from the Premises and those areas of the
sublease utilized by the Permittee, with the disposition thereof to be accomplished in such a
manner so as to not interfere with or increase the maintenance activities of Permittor upon
the public areas of the Airport.
10.3. Permittor May Perform Maintenance: If Permittee fails to perform Permittee's
obligations under this section, Permittor may at its option (but shall not be required to) enter
the Premises, after thirty (30) days' prior written notice to Permittee, and put the same in good
order, condition and repair, and the cost thereof together with interest thereon at the rate of
twelve (12%) percent per annum shall become due within thirty (30) days of the date of the
Permittor's invoice to the Permittee.
11. ALTERATIONS:
11.1. Protection from Liens: Before commencing any work relating to alterations,
additions and improvements affecting the Premises ("Work"), Permittee shall notify Permittor
in writing of the expected date of commencement of the Work. Permittee shall pay, or cause
to be paid, all costs of labor, services and/or materials supplied in connection with any Work.
Permittee shall keep the Premises free and clear of all mechanics' and materialmen's liens and
other liens resulting from any Work. Permittee shall have the right to contest the correctness
or validity of any such lien if, immediately on demand by Permittor, it procures and records a
lien release bond issued by a responsible corporate surety in an amount sufficient to satisfy
statutory requirements therefor in the State of Washington. Permittee shall promptly pay or
cause to be paid all sums awarded to the claimant on its suit, and, in any event, before any
execution is issued with respect to any judgment obtained by the claimant in its suit or before
such judgment becomes a lien on the Premises, whichever is earlier. If Permittee shall be in
default under this Section, by failing to provide security for or satisfaction of any mechanic's or
other liens, then Permittor may, at its option, in addition to any other rights or remedies it may
have, discharge said lien by (i) paying the claimant an amount sufficient to settle and discharge
the claim, (ii) procuring and recording a lien release bond, or (iii) taking such other action as
Permittor shall deem necessary or advisable, and, in any such event, Permittee shall pay, on
Permittor's demand, all reasonable costs (including reasonable attorney fees) incurred by
Permittor in settling and discharging such lien together with interest thereon at the rate of
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twelve (12%) percent per year from the date of Permittor's payment of said costs. Permittor's
payment of such costs shall not waive any default of Permittee under this Section.
11.2. Bond: At any time Permittee either desires to or is required to make any repairs,
alterations, additions, improvements or utility installation thereon, or otherwise, Permittor
may at its sole option require Permittee, at Permittee's sole cost and expense, to obtain and
provide to Permittor a lien and completion bond in an amount equal to one and one-half(1-
1/2) times the estimated cost of such improvements, to insure Permittor against liability for
mechanics and materialmen's liens and to insure completion of the work.
11.3. Permittor May Make Improvements: Permittee agrees that Permittor may, at its
option and at its expense, make repairs, alterations or improvements which Permittor may
deem necessary or advisable for the preservation, safety, or improvement of utilities or Airport
infrastructure on the Premises, if any. Permittor shall provide ten (10) days' advance notice of
any such work and use reasonable efforts to not interfere with Permittee's use of the Premises
during any such work.
11.4 Improvements: As further consideration for this Operating Permit, it is agreed
that upon the expiration or sooner termination of the Term, all structures and any and all
improvements of any character whatsoever installed on the Premises by Permittee, shall be
and become the property of the Permittor, and title thereto shall automatically pass to
Permittor at such time, and none of such improvements now or hereafter placed on the
Premises shall be removed therefrom at any time without Permittor's prior written consent.
During the Term, Permittee shall hold title to all improvements placed by Permittee on the
Premises. Permittee covenants and agrees that Permittee will pay and satisfy in full all
outstanding liens, or other debts, affecting or encumbering such improvements before transfer
of ownership of such improvements to Permittor. Permittor may, at its option, require
Permittee, upon the expiration or sooner termination of the Term, if any, to remove any and
all improvements and structures installed by Permittee from the Premises and repair any
damage caused thereby, at Permittee's expense.
12. ASSIGNMENT:
12.1. Assignment/Subletting: Any assignment, encumbrance or sublease, whether by
operation of law or otherwise, without Permittor's consent shall be void and shall constitute a
default by Permittee under this Operating Permit. No consent to any assignment or sublease
shall constitute a waiver of the provisions of this Section and no other or subsequent
assignment or sublease shall be made without Permittor's prior written consent. Before an
assignment or sub-lease will be approved, the proposed assignee or sub-Permittee must
comply with provisions of the then current Airport Leasing Policies, including, but not limited to
the "Analysis of Tenant's Financial Capacity," independent of Permittee's compliance or
Financial Capacity. Consent shall not be unreasonably withheld, conditioned, or delayed.
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In the case of an assignment of the full leasehold interest and/or complete sale of the stock or
other interests in the entity constituting Permittee and concomitant transfer of ownership of
said entity, (a) in the case of an assignment, the proposed assignee shall deliver to Permittor a
written instrument duly executed by the proposed assignee stating that it has examined this
Operating Permit and agrees to assume, be bound by and perform all of Tenant's obligations
under this Operating Permit accruing after the date of such assignment, to the same extent as
if it were the original Tenant, and (b) in the case of a stock transfer, Transferee shall deliver a
written acknowledgment that it shall continue to be bound by all the provisions of this
Operating Permit after the transfer. Except in the case of an assignment of the full leasehold
interest, any assignment permitted herein will not relieve Tenant of its duty to perform all the
obligations set out in this Operating Permit or addenda hereto. In no event will the assignment
of the full leasehold interest or the complete sale of the stock or other interests in the entity
constituting Tenant and concomitant transfer of ownership of said entity cause an extension of
the Term of this Operating Permit.
12.2. Conditions to Assignment or Sublease: Permittee agrees that any instrument by
which Permittee assigns or sublets all or any portion of the Premises shall (i) incorporate this
Operating Permit by reference, (ii) expressly provide that the assignee or subtenant may not
further assign or sublet the assigned or sublet space without Permittor's prior written consent
(which consent shall not be unreasonably withheld, conditioned, or delayed), (iii) acknowledge
that the assignee or subtenant will not violate the provisions of this Operating Permit, and (iv)
in the case of any assignment, acknowledge that Permittor may enforce the provisions of this
Operating Permit directly against such assignee.
12.3. Documentation: No permitted subletting by Permittee shall be effective until
there has been delivered to Permittor a copy of the sublease and an executed Operating
Permit and Agreement in which the subtenant agrees not to violate and to act in conformity
with the terms and provisions of this Operating Permit; provided that no Operating Permit shall
be required for the subletting of hangar or tie-down space for aircraft storage purposes. No
permitted assignment shall be effective unless and until there has been delivered to Permittor
a counterpart of the assignment in which the assignee assumes all of Tenant's obligations
under this Operating Permit arising on or after the date of the assignment.
12.4 No Release of Permittee's Liability: Neither an assignment nor subletting shall be
deemed a waiver of any of the provisions of this Section or release Permittee from its
obligation to comply with the terms and provisions of this Operating Permit and Permittee
shall remain fully and primarily liable for all of Permittee's obligations under this Operating
Permit, unless Permittor otherwise agrees in writing. Notwithstanding the foregoing, in the
event that Permittor's consent to assignment is obtained for a complete assignment and
Assignee agrees in writing to assume all of the obligations and liabilities of this Operating
Permit accruing after such assignment, Permittee shall be relieved of all liability arising from
this Operating Permit and arising out of any act, occurrence or omission occurring after
Permittor's consent is obtained. To the extent that any claim for which indemnification of the
OPERATING PERMIT 11
City of Renton to Mobile Experience Solutions LLC
`we
Permittor (including with respect to any Hazardous Substance) arises after Permitte's complete
assignment for conduct predating said assignment, the Permittee shall not be relieved of
obligations or liability arising from this Operating Permit.
12.5. No Merger: Without limiting any of the provisions of this Section, if Permittee
has entered into any subleases of any portion of the Premises, the voluntary or other
surrender of this Operating Permit, or a mutual cancellation by Permittor and Permittee, shall
not work a merger and shall terminate all or any existing subleases or subtenancies.
13. DEFAULT:
13.1. Default: The occurrence of any of the following shall constitute a default by
Permittee under this Operating Permit:
13.1.1. Failure to Comply with Airport Regulations and Minimum Standards: Failure to
comply with the Airport Regulations and Minimum Standards, if the failure continues for a
period of twenty-four (24) hours after notice of such default is given by Permittor to Permittee.
If the failure to comply cannot reasonably be cured within twenty-four (24) hours, then
Permittee shall not be in default under this Operating Permit if Permittee commences to cure
the failure to comply within twenty-four (24) hours and diligently and in good faith continues
to cure the failure to comply. However, said inability to cure within twenty-four (24) hours,
diligence and good faith notwithstanding, cannot be based on financial incapacity.
13.1.2. Failure To Perform or Cure: Failure to perform any other provision of this
Operating Permit, if the failure to perform is not cured within thirty (30) days after notice of
such default has been given by Permittor to Permittee. If the default cannot reasonably be
cured within thirty (30) days, then Permittee shall not be in default under this Operating
Permit if Permittee commences to cure the default within thirty (30) days of the Permittor's
notice and diligently and in good faith continues to cure the default.
13.1.3. Appointment of Trustee or Receiver: The appointment of a trustee or receiver
to take possession of substantially all of the Permittee's assets located at the Premises or of
Permittee's interest in this Operating Permit, where possession is not restored to Permittee
within sixty (60) days; or the attachment, execution or other judicial seizure of substantially all
of Permittee's assets located at the Premises or of Permittee's interest in this Operating
Permit, where such seizure is not discharged within sixty (60) days.
13.1.4. Failure to Comply With Laws: It shall be a default of this Permit if the Permittee
fails to comply with any of the statutes, ordinances, rules, orders, regulations, and
requirements of the federal, state, and/or city governments, any terms of this Permit and/or
the underlying lease.
13.2 Additional Security: If Permittee is in default under this Operating Permit, and
such default remains uncured for more than three (3) business days after Permittor gives
Permittee notice of such default, then Permittor, at Permittor's option, may in addition to
OPERATING PERMIT 12
City of Renton to Mobile Experience Solutions LLC
'aw
other remedies, require Permittee to provide adequate assurance of future performance of all
of Permittee's obligations under this Operating Permit in the form of a deposit in escrow, a
guarantee by a third party acceptable to Permittor, a surety bond, a letter of credit or other
security acceptable to, and approved by, Permittor. If Permittee fails to provide such adequate
assurance within twenty (20) days of receipt of a request by Permittor for such adequate
assurance, such failure shall constitute a material breach of this Operating Permit and
Permittor may, at its option, terminate this Operating Permit.
13.3. Remedies: If Permittee commits a default, then following the expiration of the
notice and cure periods set forth in Section 13.1 above, Permittor shall have the following
alternative remedies, which are in addition to any remedies now or later allowed by law, and
Permittor shall use reasonable efforts to mitigate its damages:
13.3.1. Maintain Operating Permit in Force: To maintain this Operating Permit in full
force and effect and recover any monetary charges as they become due, without terminating
Permittee's right to possession, irrespective of whether Permittee shall have abandoned the
Premises. If Permittor elects to not terminate the Operating Permit, Permittor shall have the
right to perform all acts necessary to maintain or preserve the Premises as Permittor deems
reasonable and necessary, without being deemed to have elected to terminate the Operating
Permit, including removal of all persons and property from the Premises; such property may be
removed and stored in a public warehouse or elsewhere at the cost of and on the account of
Permittee. Notwithstanding that Permittor fails to elect to terminate the Operating Permit
initially, Permittor at any time during the Term may elect to terminate this Operating Permit by
virtue of such previous default of Permittee so long as Permittee remains in default under this
Operating Permit.
13.3.2. Terminate Operating Permit: To terminate Permittee's right to possession by
any lawful means, in which case this Operating Permit shall terminate and Permittee shall
immediately surrender possession of the Premises to Permittor. In such event Permittor shall
be entitled to recover from Permittee all damages incurred by Permittor by reason of
Permittee's default including without limitation thereto, the following: (i) any amount
necessary to compensate Permittor for all the detriment proximately caused by Permittee's
failure to perform its obligations under this Operating Permit or which in the ordinary course of
business would be likely to result therefrom, including without limitation, (A) any costs or
expenses incurred by Permittor including reasonable attorney fees, and (B) such other amounts
in addition to or in lieu of the foregoing as may be permitted from time to time by applicable
state law. The amounts referenced in this Section shall accrue interest at 12% per annum.
14. BINDING AGREEMENT: Subject to the restriction upon assignment or subletting as
set forth herein, all of the terms, conditions, and provisions of this Permit shall be binding upon
the parties, their successors and assigns, and in the case of a Permittee who is a natural
person, his or her personal representative and heirs.
OPERATING PERMIT 13
City of Renton to Mobile Experience Solutions LLC
15. CONDEMNATION: If the whole or any substantial part of the Premises shall be
condemned or taken by Permittor or any county, state, or federal authority for any purpose,
then the Term shall cease as to the part so taken from the day the possession of that part shall
be required for any purpose. From that day the Permittee shall have the right to either cancel
this Operating Permit and declare the same null and void, or to continue in the possession of
the remainder of the same under the terms herein provided. All damages awarded for such
taking for any public purpose shall belong to and be the property of the Permittor, whether
such damage shall be awarded as compensation for the diminution in value to the leasehold,
or to the fee of the Premises herein leased. Damages awarded for the taking of Permittee's
improvements located on the Premises shall belong to and be awarded to Permittee.
16. RIGHT OF INSPECTION: Permittee will allow Permittor, or Permittor's agent, free
access to the Premises at all reasonable times for the purpose of inspection, or for making
repairs, additions or alterations to the Premises, or any property owned by or under the
control of Permittor.
17. SURRENDER OF PREMISES: Permittee shall quit and surrender the premises at the
end of the term in a condition as good as the reasonable use thereof would permit, normal
wear and tear excepted. Alterations, additions or improvements which may be made by either
of the parties hereto on the Premises, except movable office furniture or trade fixtures put in
at the expense of Permittee, shall be and remain the property of the Permittor and shall
remain on and be surrendered with the Premises as a part thereof at the termination of this
lease without hindrance, molestation, or injury. Permittee shall repair at its sole expense any
damage to the Premises occasioned by its use thereof, or by the removal of Permittee's trade
fixtures, furnishings and equipment which repair shall include the patching and filling of holes
and repair of structural damage.
18. INSURANCE:
18.1. Personal Property: It is agreed that Permittor shall not be held liable in any
manner for, or on account of, any loss or damage to personal property of the Permittee,
Permittee's invitees or other persons, which may be sustained by fire or water or other peril, or
for the loss of any articles by burglary, theft or any other cause from or upon the Premises. It is
acknowledged that Permittor does not cover any of the personal property of Permittee,
Permittee's invitees or other persons upon the Premises through its insurance. Permittee, its
invitees and other persons upon the Premises are solely responsible to obtain suitable personal
property insurance.
18.2. Liability Insurance. The Permittee agrees to maintain in force during the term of
this Permit commercial general liability insurance written by an admitted company authorized
to do business in the State of Washington against any liability arising out of the ownership, use,
occupancy or maintenance of the Premises and all areas appurtenant thereto. The limits of
liability shall be in an amount of not less than $1,000,000.00 per occurrence, $2,000,000
aggregate. The limits of said insurance shall not, however, limit the liability of Permittee
OPERATING PERMIT 14
City of Renton to Mobile Experience Solutions LLC
i..r 1_.
hereunder. The insurance policy shall include a Landlord's Protective Liability endorsement
attached thereto.
18.3. Insurance Policies: Insurance required hereunder shall be written by a company
or companies acceptable to Permittor. Permittor reserves the right to establish and, from
time-to-time, to increase minimum insurance coverage amounts. Notice of increased
insurance requirements shall be sent to the Permittee at least forty-five (45) days prior to the
annual renewal date of the Permittee's insurance. Prior to possession, the Permittee shall
deliver to Permittor copies of policies of such insurance acquired by Permittee, or certificates
evidencing the existence and amounts of such insurance, with loss payable clauses satisfactory
to Permittor. The City of Renton shall be named as an additional insured with that coverage
being primary and non-contributory to any other insurance coverage available to the City. The
Permittee shall provide the City with written notice of any policy cancellation, within two
business days of their receipt of such notice.
18.4. Insurance Maintained Throughout Term: Permittee shall not do or permit to be
done anything which shall invalidate the insurance policies referred to above. Permittee shall
forthwith, upon Permittor's demand, reimburse Permittor for any additional premiums
attributable to any act or omission or operation of Permittee causing such increase in the cost
of insurance. If the Permittee shall fail to procure and maintain said insurance the Permittor
may, but shall not be required to, procure and maintain the same, but at the expense of
Permittee.
18.5. Waiver of Subrogation: Permittee and Permittor each waives any and all rights
of recovery against the other, or against the officers, employees, agents and representatives of
the other, for loss of or damage to such waiving party or its property or the property of others
under its control, where such loss or damage is insured against under any insurance policy in
force at the time of such loss or damage. Permittee shall, upon obtaining the policies of
insurance required hereunder, give notice to the insurance carriers that the foregoing mutual
waiver of subrogation is contained in this Operating Permit.
19. LIMITATION UPON PERMITTOR'S LIABILITY. Permittor shall not be liable for any
damage to property or persons caused by, or arising out of (a) any defect in or the
maintenance or use of the Premises, or the improvements, fixtures and appurtenances of
which the premises constitute a part; or (b) water coming from the roof, water pipes, flooding
of the Cedar River or other body of water, or from any other source whatsoever, whether
within or without the Premises; or (c) any act or omission of any Permittee or other occupants
of the building, or their agents, servants, employees or invitees thereof.
20. INDEMNITY: Permittee covenants to defend, indemnify and save harmless
Permittor against any and all claims arising from (a) the conduct and management of or from
any work or thing whatsoever done in or about the Premises or the improvements or
equipment thereon during the Operating Permit term, or (b) arising from any act or negligence
of the Permittee or any of its agents, contractors, patrons, customers, or employees, or
invitees, or (c) arising from any accident, injury, or damage whatsoever, however caused, to
OPERATING PERMIT 15
City of Renton to Mobile Experience Solutions LLC
any person or persons, or to the property of any person, persons, corporation or other entity
occurring during the Operating Permit term on, in, or about the Premises, and from and
against all costs, attorney's fees, expenses, and liabilities incurred in or from any such claims or
any action or proceeding brought against the Permittor by reason of any such claim, except
such claims arising directly or indirectly out of Permittor's sole act or omission. Permittee, on
notice from Permittor, shall resist or defend such action or proceeding forthwith with counsel
reasonably satisfactory to, and approval by Permittor.
21. HOLDING OVER: Permittee understands that upon expiration of the term of this
permit, Permittee must execute a new permit with the Permittor as a condition to remaining
on the premises. Permittee further understands that if, without execution of any extension or
renewal of this permit, Permittee should remain in possession of the premises after expiration
or termination of the term of this permit, notwithstanding any extension of its sublease with
Lessee, then the Lessee shall be in default of its lease, LAG 84-006 and Permittor may evict the
Lessee and the Permittee. All the conditions, terms and provisions of this permit shall be
applicable during such holding over.
22. NO WAIVER: It is further covenanted and agreed between the parties hereto that
no waiver by Permittor of a breach by Permittee of any covenant, agreement, stipulation, or
condition of this Operating Permit shall be construed to be a waiver of any succeeding breach
of the same covenant, agreement, stipulation, or condition, or a breach of any other covenant
agreement, stipulation, or condition.
23. NOTICES: All notices or requests required or permitted under this Operating Permit
shall be in writing; shall be personally delivered, delivered by a reputable express delivery
service such as Federal Express or DHL, or sent by certified mail, return receipt requested,
postage prepaid, and shall be deemed delivered on receipt or refusal. All notices or requests
to Permittor shall be sent to Permittor at Permittor's address set forth below and all notices or
requests to Permittee shall be sent to Permittee at Permittee's address set forth below.
Permittor's Address: Airport Manager
616 West Perimeter Road, Unit A
Renton, Washington 98057
Permittee's Address: Mobile Experience Solutions LLC
300 Airport Way, Suite 201
Renton, WA 98057
24. DISCRIMINATION PROHIBITED:
24.1. Discrimination Prohibited: Permittee covenants and agrees not to discriminate
against any person or class of persons by reason of race, color, creed, sex, national origin, or
any other class of person protected by Federal or State law or the Renton City Code, in the use
of any of its facilities provided for the public in the Airport. Permittee further agrees to furnish
services on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge
OPERATING PERMIT 16
City of Renton to Mobile Experience Solutions LLC
*MW1 *"e
on a fair, reasonable and not unjustly discriminatory basis for each unit of service; provided
that Permittee may make reasonable and non-discriminatory discounts, rebates, or other
similar types of price reductions to volume purchasers.
24.2. Minority Business Enterprise Policy: It is the policy of the Department of
Transportation that minority business enterprises as defined in 49 C.F.R. Part 23 shall have the
maximum opportunity to participate in the performance of leases as defined in 49 C.F.R. 23.5.
Consequently, this Operating Permit is subject to 49 C.F.R. Part 23, as applicable. No person
shall be excluded from participation in, denied the benefits of or otherwise discriminated
against in connection with the award and performance of any contract, including Operating
Permits covered by 49 C.F.R. Part 23, on the grounds of race, color, national origin or sex.
24.3. Application to Sub-leases: Subject to the provisions of Section 12 of this Permit,
Permittee agrees that it will include the above clause in all assignments of this Operating
Permit or sub-leases, and cause its assignee(s) and sub-lessee(s) to similarly include the above
clause in further assignments or sub-leases.
25. FORCE MAJEURE: In the event that either party hereto shall be delayed or
hindered in or prevented from the performance of any act required hereunder by reason of
strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive
governmental laws or regulations, riots, insurrections, war, or other reason of like nature not
the fault of the party delayed in performing work or doing acts required under the terms of this
Operating Permit, then performance of such act shall be extended for a period equivalent to
the period of such delay. The provisions of this Section shall not, however, operate to excuse
Permittee from the prompt payment of any payment required by the terms of this Operating
Permit, to be made by Permittee.
26. TRANSFER OF PREMISES BY PERMITTOR: In the event of any sale, conveyance,
transfer or assignment by Permittor of its interest in the Premises, Permittor shall be relieved
of all liability arising from this Operating Permit and arising out of any act, occurrence or
omission occurring after the consummation of such sale, conveyance, transfer or assignment.
The Permittor's transferee shall be deemed to have assumed and agreed to carry out all of the
obligations of the Permittor under this Operating Permit.
27. ATTORNEYS' FEES AND COSTS; COLLECTION COSTS: If either party brings any action
for relief against the other party, declaratory or otherwise, arising out of this Operating Permit,
including any action by Permittor for the recovery of Rent or possession of the Premises, the
prevailing party shall be entitled to reasonable attorneys' fees and costs of litigation as
established by the court. If the matter is not litigated or resolved through a lawsuit, then any
attorneys' fees for collection of past-due rent or enforcement of any right of Permittor or duty
of Permittee hereunder shall entitle Permittor to recover, in addition to any late payment
charge, any costs of collection or enforcement, including reasonable attorney's fees. For the
purposes of this Section 27, attorney's fees shall include a reasonable rate for attorney's
employed by the City.
OPERATING PERMIT 17
City of Renton to Mobile Experience Solutions LLC
WWW NNW'
28. EMERGENCY RESPONSE: Permittee must provide to the Airport Manager
reasonable access and response in times of emergency or urgency. The Permittee is wholly
responsible to keep an up-to-date listing of aircraft types, identification, and owners on file and
at the Airport Manager's office.
29. DEFINITIONS: As used in this Operating Permit, the following words and phrases,
whether or not capitalized, shall have the following meanings:
"Additional Rent" means any charges or monetary sums to be paid by Permittee to
Permittor under the provisions of this Operating Permit other than Minimum Monthly Rent.
"Authorized representatives" means any officer, agent, employee, independent
contractor or invitee of either party.
"Environmental Laws and Requirements" means any and all federal, state, local laws,
statutes, ordinances, rules, regulations and/or common law relating to environmental
protection, contamination, the release, generation, production, transport, treatment,
processing, use, disposal, or storage of Hazardous Substances, worker health or safety or
industrial hygiene, and the regulations promulgated by regulatory agencies pursuant to these
laws, and any applicable federal, state, and/or local regulatory agency-initiated orders,
requirements, obligations, directives, notices, approvals, licenses, or permits.
"Expiration" means the coming to an end of the time specified in the Operating Permit
as its duration, including any extension of the Term.
"Hazardous Substances" means any and all material, waste, chemical, compound,
substance, mixture or byproduct that is identified, defined, designated, listed, restricted or
otherwise regulated under any Environmental Laws and Requirements as a "hazardous
constituent," "hazardous substance," "hazardous material," "extremely hazardous material,"
"hazardous waste," "acutely hazardous waste," "hazardous waste constituent," "infectious
waste," "medical waste," "biohazardous waste," "extremely hazardous waste," "pollutant,"
"toxic pollutant" or "contaminant." The term "Hazardous Substances" includes, without
limitation, any material or substance which is (i) hexavalent chromium; (ii) pentachlorophenol;
(iii) volatile organic compounds; (iv) petroleum; (v) asbestos; (vi) designated as a "hazardous
substance" pursuant to Section 311 of the Federal Water Pollution Control Act, 33 U.S.C. §
1251 et seq. (33 U.S.C. § 1321); (vii) defined as a "hazardous waste" pursuant to Section 1004
of the Federal Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. §
6903); (viii) defined as a "hazardous substance" pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §
9601 et seq. (42 U.S.C. § 9601); or (ix) designated as a "hazardous substance" pursuant to the
Washington Model Toxics Control Act, RCW 70.105D.010 et seq.
"Parties" means Permittor and Permittee.
OPERATING PERMIT 18
City of Renton to Mobile Experience Solutions LLC
V#MW `ape
"Person" means one or more human beings, or legal entities or other artificial persons,
including without limitation, partnerships, corporations, trusts, estates, associations and any
combination of human beings and legal entities.
"Rent" means Minimum Monthly Rent, as adjusted from time to time under a Lease,
and Additional Rent.
30. GENERAL PROVISIONS:
30.1. Entire Agreement: This Operating Permit sets forth the entire agreement of the
parties as to the subject matter hereof and supersedes all prior discussions and understandings
between them. This Operating Permit may not be amended or rescinded in any manner except
by an instrument in writing signed by a duly authorized officer or representative of each party
hereto. In the event of a conflict between the terms of this Permit and the sublease
agreement between Permittee and Lessee, the terms of this Permit supersede.
30.2. EXEMPTION OF PERMITTOR FROM LIABILITY: Permittor or Permittor's agents
shall not be liable for injury to persons or to Permittee's business or loss of income therefrom
or for damage which may be sustained by the person, goods, wares, merchandise or property
of Permittee, its authorized representatives, or any other person in or about the Premises,
caused by or resulting from (a) fire, electricity, gas, water or rain which may leak or flow from
or into any part of the Premises, (b) any defect in or the maintenance or use of the Premises,
or any improvements, fixtures and appurtenances thereon, (c) the Premises or any
improvements, fixtures and appurtenances thereon becoming out of repair, (d) the breakage,
leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing,
heating, ventilating or air conditioning or lighting fixtures of the Premises, (e) flooding of the
Cedar River or other body of water, or from any other source whatsoever, whether within or
without the Premises; or (f) any act or omission of any other tenant or occupant of the building
in which the Premises are located, or their agents, servants, employees, or invitees, provided,
that the foregoing exemption shall not apply to losses to the extent caused by Permittor's or its
agents', contractors', or employees' negligence or willful misconduct.
30.3. Governing Law: This Operating Permit shall be governed by, and construed and
enforced in accordance with, the laws of the State of Washington.
30.4. Severability: Should any of the provisions of this Operating Permit be found to be
invalid, illegal or unenforceable by any court of competent jurisdiction, such provision shall be
stricken and the remainder of this Operating Permit shall nonetheless remain in full force and
effect unless striking such provision shall materially alter the intention of the parties.
30.5. Jurisdiction and Venue: In the event any action is brought to enforce any of the
provisions of this Operating Permit, the parties agree to be subject to exclusive in personam
OPERATING PERMIT 19
City of Renton to Mobile Experience Solutions LLC
jurisdiction in the Superior Court of the State of Washington in and for the County of King or in
the United States District Court for the Western District of Washington.
30.6. Waiver: No waiver of any right under this Operating Permit shall be effective
unless contained in a writing signed by a duly authorized officer or representative of the party
sought to be charged with the waiver and no waiver of any right arising from any breach or
failure to perform shall be deemed to be a waiver of any future right or of any other right
arising under this Operating Permit.
30.7. Captions: Section captions contained in this Operating Permit are included for
convenience only and form no part of the agreement between the parties.
30.8. Assignee as Permittee: The term "Permittee" shall be deemed to include the
assignee where there is a full assignment of the Operating Permit.
30.9. Effectiveness: This Operating Permit shall not be binding or effective until
properly executed and delivered by Permittor and Permittee.
30.10. Gender and Number: As used in this Operating Permit, the masculine shall
include the feminine and neuter, the feminine shall include the masculine and neuter, the
neuter shall include the masculine and feminine, the singular shall include the plural and the
plural shall include the singular, as the context may require.
30.11. Time of the Essence: Time is of the essence in the performance of all covenants
and conditions in this Operating Permit for which time is a factor.
30.12. Joint and Several Liability: If Permittee is composed of more than one person or
entity, then the obligations of all such persons and entities under this Operating Permit shall be
joint and several.
30.13. No Recordation Without Consent of Permittor: Permittee shall not record this
Operating Permit or any memorandum of this Operating Permit without Permittor's prior
written consent.
30.14. Cumulative Remedies: No remedy or election hereunder shall be deemed
exclusive, but shall, wherever possible, be cumulative with all other remedies at law or in
equity.
30.15. Corporate Authority: If Permittee is a corporation or limited liability company,
each individual executing this Operating Permit on behalf of said corporation or limited liability
company represents and warrants that he is duly authorized to execute and deliver this
Operating Permit on behalf of said corporation or limited liability company pursuant to duly
enacted resolutions or other action of such corporation or limited liability company and that
OPERATING PERMIT 20
City of Renton to Mobile Experience Solutions LLC
'4..r
this Operating Permit is binding upon said corporation or limited liability company in
accordance with its terms.
30.16. Addenda: The provisions of this Operating Permit shall be subject to those of
any Addenda and Exhibits attached hereto.
PERMITTEE: PERMITTOR:
Mobile Experience Solutions LLC THE CITY OF RENTON
a Limited Liability Company a Washington municipal
corpon
"'2� ti
By \-),qkZ Q2r-) Denis Law
its: Owner/Presient Mayor
Date: ��1��Z�t3 Date: 1
ATTEST:
By
Bonnie Walton, City Clerk
Date:
Ap ed as to legal ffoor�m:?
Larry Warren, City Attorney
w
OPERATING PERMIT 21
City of Renton to Mobile Experience Solutions LLC
,w.r+ `r✓
STATE OF WASHINGTON )
��
ss.
COUNTY OF V-� )
I certify that I know or have satisfactory evidence that is the
person who appeared before me, and s/he acknowledged that s/he signed this instrument, on oath
stated that s/he was authorized to execute the instrument and acknowledged it as the
?re51 Xw,�-- of Ce�S tAV-tW a j AKJjl .to be the free
and voluntary act of such w, �,(�for the uses and purposes mentioned in the
instrument. n A
Dated this day of 2011
[Sign f Notary]
I�oUryPubik [Print Narh4 of tart']
8tol of wasmalm
NANCY ft
My Appointment Expires Feb 14.2015 Notary Public in and fort a State of
Washington, residing at KtAkiry
My commission expires:
OPERATING PERMIT 22
City of Renton to Mobile Experience Solutions LLC
A. ,woN► +aAkdr.M�t.,
a x :
EXHIBIT A
Sublease Agreement
OPERATING PERMIT 23
City of Renton to Mobile Experience Solutions LLC
NOW
Aerodyne LLC
HANGAR RENTAL AGREEMENT
EFFECTIVE DATE: December 1, 2011
TENANT: ME Solutions
LANDLORD: Aerodyne LLC
OFFICE SPACE: Suite 201 and Suite 202
Tenant does hereby rent from Landlord that Office space described as Suites 201 and Suite 202
(the "Space"), at 300 Airport Way, Renton, WA 98057 adjacent to the Renton Municipal Airport(the
"Field")for the operations of Tenant, upon all of the terms, covenants, and conditions herein contained.
The parties hereto agree as follows:
1. RENT:
1.1. Rent shall be Seven Hundred Fifty Dollars ($750.00)per month,plus WA State
Leasehold Excise Tax (currently 12.84%of monthly rental amount). Upon execution of this
Agreement, Tenant shall deliver the first month's installment of rent to Landlord. Beginning
on the first day of the second month after the Effective Date, and on the first day of each
successive month of the term, Tenant shall pay to Landlord the rent set forth above. All rent
shall be delivered to Landlord's address set forth below, or at such other place as may be
designated in writing from time to time by Landlord, in lawful money of the United States
without any prior demand and without deduction or offset for any cause whatsoever. A rent
payment not paid within 5 (five) days of its due date shall be subject to a late charge equal to
One Hundred Dollars ($100.00). In the event that Tenant's check is not honored for any
reason, Tenant shall pay to Landlord a fee, herein called an"N.S.F. Charge", of Fifty Dollars
($50.00). This is in addition to the Late Charge above provided for.
1.2. In addition to the full amount described above, Tenant shall simultaneously pay to
Landlord a Security Deposit equal to one full month's rent. Landlord may apply all or part of
the deposit to any unpaid rent or other charges due from Tenant or to cure any other defaults
of Tenant. If Landlord uses any part of the Security Deposit, Tenant shall restore the deposit
to its full amount within ten(10) days after Landlord's written request. Tenant's failure to
do so shall be a material default. No interest shall be paid on the deposit and Landlord shall
not be required to keep the deposit separate from its other accounts and no trust relationship
is created with respect to the deposit. Landlord agrees to apply the remaining portion of this
deposit to rent for the last month of the term if, and only if(i)Landlord is given advance
written notice of Tenant's termination of this Agreement as described in Section 1.3 below
and(ii) Tenant has not breached any of the terms and conditions of this Agreement as of the
termination date. Otherwise,the deposit shall be forfeited in full and not applied in payment
of any rent for this Agreement.
1.3. TERM: This is a month to month rental agreement. Tenant will surrender the Space to
Landlord in as good condition as received by Tenant at commencement of this Agreement,
reasonable wear and tear excepted. Either Tenant or Landlord may terminate this Agreement
with thirty(30) days written notice. Without prejudice to any of Landlord's other legal rights,
Tenant agrees to pay an amount equal to 200%of the rate of monthly rental last payable
under this Agreement monthly rent during any continued occupancy by Tenant after the
effective Termination Date of this Agreement.
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2. USE:
Tenant shall have exclusive use of the Space and Tenant shall use the Space only for use as
defined by this Agreement, and for parking personal vehicles as described in Section 4 below.
Tenant shall comply with all laws,rules, ordinances and regulations established by federal, state
or local government agencies, including the City of Renton. Tenant shall make no
modifications or improvements to the Space or place any exterior signs on the Space without
prior written approval of Landlord. Landlord may require a bond to ensure proper restoration of
the Space as a condition to any such consent.
3. TENANT IMPROVEMENTS:
Tenant Improvements will be the responsibility of Tenant, and may only be performed after
receipt of written approval by Landlord. All Tenant Improvements permanently attached to the
building, including floor, wall and ceiling coverings, cabinets, doors, electrical outlets,
plumbing fixtures, switches and light fixtures and subsidiary plumbing,heating and air
conditioning pipes, ducts and grills made or added by Tenant or Landlord shall become the
property of Landlord upon installation. Upon termination of this Lease Tenant may remove any
Tenant Improvements not permanently attached provided that any damage resulting from said
removal is repaired by Tenant. In the event Tenant does not remove said improvements within
10 days after termination of lease,title to the same will vest in Landlord and Tenant will have
no interest therein.
4. PARKING:
Landlord will permit Tenant's employees,contractors, and invitees to use the visitors'parking
area provided by Landlord at the Field in the vicinity of the Space at no additional cost to
Tenant or its employees, agents, contractors, and invitees. Tenant's employees may park
personal vehicles in the parking area while using the Space as defined in this Agreement.
5. INDEMNIFICATION:
Tenant shall indemnify against and hold Landlord harmless from any and all costs, claims or
liability, including attorneys' fees,arising from Tenant's use of the Space and Field; the conduct
of Tenant or anything else done or permitted by Tenant, its agents,employees or invitees to be
done in or about the Space or Field, including any contamination of the Space or Field or any
other property resulting from the presence or use of hazardous substance caused or permitted by
Tenant; any breach or default in the performance of Tenant's obligations under this Agreement;
other acts or omissions of Tenant, its agents, employees or invitees; or any equipment or
supplies stored or used by Tenant in or about the Space or Field. As a material part of the
consideration to Landlord, Tenant assumes all risk of damage to property or injury to persons in
or about the Field arising from any cause, and Tenant hereby waives all claims in respect
thereof against Landlord. Tenant hereby waives the exclusive remedies under the workers'
compensation statutes, including immunity under Washington industrial insurance laws, Title
51 RCW, for any injury to Tenant's employees or independent contractors. As used in this
Section,the term "Tenant" shall include Tenant's employees, agents, contractors, and invitees if
applicable. Tenant's indemnification obligation shall survive termination of this Agreement.
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6. HAZARDOUS SUBSTANCES:
Tenant shall not generate,transport, transfer or store any hazardous substances in, on, above,to
or from the Space or the Field, including but not limited to state and federally defined or
regulated hazardous substances. In the event of a leak, spill or release of a hazardous
substances in, on or about the Space or Field, Tenant will immediately notify Landlord and will
undertake all emergency response necessary to contain, clean up and remove the hazardous
substance and within a reasonable time investigate,remediate and/or take action necessary or
appropriate to insure that any contamination by the hazardous substance is eliminated. Tenant
shall provide certification acceptable to Landlord that all such contamination has been
eliminated.
7. TENANT:
The term Tenant includes the party signing this Agreement and all employees, agents,
contractors,representatives and invitees of Tenant.
8. INSURANCE:
During the term of this Agreement Tenant shall procure and maintain in full force and effect
and at Tenant's sole cost and expense the following insurance coverage for aircraft using
Landlord tie-down or hangar space as negotiated for on an as needed basis:
a. Insurance against loss or damage by fire with extended coverage endorsements
upon all of Tenant's furnishings, fixtures, equipment and personal property located in,
on, or about the Space to the full amount of the replacement value thereto;
b. Aircraft liability insurance, including premises, at a limit of no less than
$1,000,000 per person and per occurrence;
C. Hull insurance to cover the full value of Tenant's aircraft.
9. EVIDENCE OF INSURANCE:
Upon execution hereof, Tenant shall deliver certificates of insurance from insurance companies
acceptable to Landlord,evidencing the coverage's herein required and naming Landlord as an
additional insured and containing cross-liability endorsements. Each insurance policy required
herein shall provide a waiver of subrogation against Landlord in connection with any claim or
damage covered by such policy and shall further provide a minimum of thirty(30)days'prior
written notice to Landlord of any cancellation,expiration or material modifications in the
policy.
Landlord reserves the right to require Tenant to increase the amount of insurance coverage if
Landlord reasonably determines that Tenant's existing coverage is inadequate in light of
Tenant's activities or operations.
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10. DEFAULT:
Tenant shall be in default without further notice if it does not pay any rent within five(5) days
after the day it is due. In addition, Tenant shall be in default for non-monetary breaches if, after
Landlord gives Tenant written notice of such breach or violation, such breach or violation
continues to exist for seven (7)days or more. If,however, such default cannot be completely
cured within a seven(7) day period, Tenant shall be in default if Tenant does not commence to
cure such default within such seven(7)day period and thereafter continue with reasonable
diligence to completely cure such default. In the event of any such default, Landlord may
terminate this Agreement by giving written notice to Tenant and on the date specified in such
notice,the term of this Agreement shall end and Tenant shall surrender the Space to Landlord.
Upon such termination any liability of Tenant to Landlord shall continue, including without
limitation liability for all past due rent and rent for the period through and including the
Termination Date. Alternatively, Landlord may continue to collect rent due under this
Agreement through and including the Termination Date without terminating this Agreement,
but in such event Landlord shall deduct from the amount of rent owing each month any
amounts received from reletting the Space, less expenses of reletting, including without
limitation advertising costs, attorney's and broker's fees. If Landlord re-enters the Space after
Tenant's default, Landlord may at any time thereafter enter the Space by any lawful means and
remove Tenant and its effects, including Tenant's aircraft or may dispose of such property in
any commercially reasonable manner,with Tenant liable for all expenses of such disposal
including storage and sale. In addition to the remedies herein described, Landlord shall have all
other remedies available to it under applicable law.
11. NOTICE:
Any notice to be given under this Agreement from one party to the other shall be deemed given
if it is sent by overnight mail (Fedex or equivalent)addressed to the other party at the address
first appearing below, or such other address of which either party notifies the other in writing
from time to time.
12. LEGAL FEES:
In the event Landlord incurs any legal expense in the enforcement of this Agreement, including
the collection of any amounts due, whether or not a lawsuit or legal proceeding is initiated,
Tenant agrees to pay Landlord's reasonable costs, expenses, and attorney fees, including
expenses of appeal.
13. ASSIGNMENT OR SUBLETTING:
Tenant will not assign any of its rights under this Lease or sublet any or all of the Space or
permit use of any of the Space for any purpose other than operations of Tenant without the prior
written permission of Landlord in Landlord's sole discretion.
14. SUCCESSORS & ASSIGNS:
The provisions of this Agreement shall inure to the benefit of and be binding upon any
successors or assigns of the parry hereto.
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15. ENTIRE AGREEMENT:
This Agreement contains all of the terms, covenants and conditions between parties concerning
the Space(s), and shall supersede all prior correspondence, agreements, and understandings
concerning the Space(s),both oral and written. No addition or modification of any term or
provision of this Agreement shall be effective unless set forth in writing and signed by both
Tenant and Landlord.
16. GOVERNING LAW:
This Agreement shall be construed in accordance with the laws of the State of Washington.
Executed as of the Effective Date first written above.
TENANT: LANDLORD:
t
By: i By:
Title:e z Title: Hangar Manager
Signed: Signed: /2 — /)- -7-v %/
Address: 3c1 /1 =,az -� •� - �t/� Address: 300 Airport Renton, WA 98055
Phone: zaG• �/ - U'3� ( `� Phone: 425-255-7648 Fax: 425-255-7614
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