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GROUNDLEASEbyandbetweenRENTONSCHOOL DISTRICTNO.403,aWashington municipalcorporation“Landlord”andCITYOFRENTON,aWashingtonmunicipalcorporation“Tenant”____________________,201459925567September 3020 TABLEOFCONTENTSPageARTICLEILEASEOFPREMISES ANDTERMOFLEASEISection1.01AgreementtoLeaseSection1.02TermofLeaseSection1.03ExtensionOptions2Section1.04DeliveryofPossession2Section1.05ConditionsPrecedent2ARTICLE2RENTANDDUEDILIGENCE3Section2.01RentandConsideration3Section2.02DueDiligence3ARTICLE3USEOFPREMISES4Section3.01PermittedUse4Section3.02CompliancewithLaws4ARTICLE4UTILITIES4Section4.01Utilities4ARTICLE5TAXESANDASSESSMENTS4Section5.01Impositions4Section5.02ProofofPayment5Section5.03CooperationastoExemptions5Section5.04SpecialUseCategory5ARTICLE6CONSTRUCTIONBYTENANT6Section6.01DutytoConstruct6Section6.02AllWorkonWrittenContract;PrevailingWages7Section6.03ConstructionCosts7Section6.04Liens8Section6.05ShortPlatandEasements$Section6.06NecessaryPlansandAgreements9Section6.07PermitsandAuthorizations9Section6.08SubsequentImprovements10Section6.09OwnershipoftheProject10Section6.10ArchaeologicalDiscovery10145992556.7 TABLEOFCONTENTS(continued)PageSection6.11ImpactstoSchool;Coordination11ARTICLE7OPERATIONANDRESTORATION;SURRENDER12Section7.01OperatingAgreement12Section7.02RepairandMaintenance12Section7.03LandscapingRestoration13Section7.04SurrenderofPremises13ARTICLE8PARKINGANDTRANSPORTATION13Section8.01Parking13Section8.02ExistingTrafficPatterns13Section8.03OverflowParking14Section8.04ParkingLicense14ARTICLE9INDEMNITYANDINSURANCE14Section9.01Tenant’sIndemnity14Section9.02GeneralLiabilityInsurance15Section9.03PropertyCasualtyInsurance15Section9.04ProfessionalLiability,ErrorsandOmissionsCoverage15Section9.05AutomobileLiabilitytnsurance16Section9.06Workers’Compensation16Section9.07StopGap/EmployersLiabilityCoverage16Section9.08WaiverofSubrogation16ARTICLE10CONDEMNATION16Section10.01TotalCondemnation16Section10.02PartialTaking17Section10.03CondemnationAward17Section10.04VoluntaryConveyanceinLieuofEminentDomain18Section10.05RightsUponTemporaryTaking18ARTICLE11ASSIGNMENTANDSUBLEASING18Section11.01NoAssignmentWithoutLandlord’sConsent18SectionII.02Tenant’sRighttoEnterIntoSubteasesandOccupancyAgreements181159925567—ii— TABLEOFCONTENTS(continued)PageARTICLE12DEFAULTANDREMEDIES19Section12.01Termination19Section12.02BreachandDefaultbyTenant19Section12.03NoticeasaPreconditiontoLandlord’sRemedies20Section12.04WaiverofBreach20Section12.05Landlord’sDefault20ARTICLE13SPECIALPROVISIONS20Section13.01QuietEnjoyment20Section13.02Title20Section13.03HazardousSubstances20Section13.04AccessRights22Section13.05RecaptureRights22Section13.06HoldingOver23ARTICLE14MISCELLANEOUS24Section14.01ForceMajeure24Section14.02NoticestoLandlord24Section14.03NoticestoTenant24Section14.04GoverningLaw25Section14.05BindingonHeirsandSuccessors25Section14.06TimeofEssence25Section14.07Severability25Section14.02Counterparts25Section14.09Inspection25Section14.10Litigation25Section14.11Subordination26Section14.12EstoppelCertificate26Section14.13NoPartnershiporJointVenture26Section14.14MemorandumofGroundLease26145992556.7—iii— GROUNDLEASETHISGROUNDLEASE(“Lease”)isenteredintoasof______________,20,byandbetweenRENTONSCHOOLDISTRICTNO.403,aWashingtonmunicipalcorporationC’Landlord”)andtheCtTYOFRENTON,aWashingtonmunicipalcorporation(“Tenant”).LandlordandTenantmayindividuallybereferredtoasa“Partyandmaybecollectivelyreferredtoasthe“Parties.”RECITALSA.LandlordisthefeesimpleownerofanassemblageofrealpropertylocatedintheCityofRenton,KingCounty,Washingtonandcommonlyknownas16022116thAveSE(the“SchoolDistrict Property”).TheSchoolDistrictPropertycurrentlyincludesanelementaryschool(“School”)building,parkingfacilities,recreationalfields,andvacantland.Landlord’srealpropertyincludestaxparcelnumber 2823059034.B.Landlord,Tenant,theFamilyFirstCommunityCenterFoundation,aWashingtonnon-profitcorporation(“FFCCF”).andHealthPoint,aWashingtonptiblicbenefitnonprofitcorporation(HealthPoint”)cooperativelypreparedaConstructionDesignMasterPlan(“MasterPIan’).depictedonExhibitA,attachedheretoandincorporatedherein,forthedevelopmentofanewcommunitycenter,tobeknownastheFamilyfirstCommunityCenter(the“Project”).TheProjectisintendedtoprovidecriticalhealth,recreational,andeducationalopportunitiesandservicesforunderservedyouthandfamiliesinthearea.C.TenantdesirestoleaseaportionoftheSchoolDistrictPropertyforthepurposeofconstructingandoperatingtheProject.PriortooccupancyoftheProjectaseparateOperatingAgreementwillbeexecutedbyLandlordandTenant(“OperatingAgreement”).TheportionoftheSchoolDistrictPropertyTenantdesirestoleasefromLandlordandLandlorddesirestoleasetoTenantisdepictedonExhibitB-IasParcelA,andislegallydescribedonExhibitB-2(the“Premises”),attachedheretoandincorporatedherein. TheportionoftheSchoolDistrictPropertyretainedbyLandlordisdepictedonExhibitB-IasParcelB(“AdjacentSchoolProperty”).NOW,THEREFORE,itisagreedbythepartiesasfollows:ARTICLE1LEASEOFPREMISESANDTERMOF LEASESection1.01AgreementtoLease.ForandinconsiderationoftherentstobepaidandcovenantstobeperformedbyTenantunderthisLease,LandlordagreestoleasethePremisestoTenant,andTenantagreestoleasethePremisesfromLandlord,onthetermsandconditionssetforthinthisLeaseandsubjecttoalltitle mattersreflectedintheleaseholdtitlepolicyissuedtoTenantasoftheCommencementDateofthis Lease.Section1.02TermofLease.ThetermofthisLease(the“Term”)shallcommenceonthe laterofDecember1,2020,orthe dateofsatisfactionoftheconditionsprecedentdescribed145992556.7—1—September 3020 inSection1.05(the“CommencementDate”),andshallexpirefifty(50)yearsthereafter(theExpirationDate”).Section1.03ExtensionOptions.SubjecttoLandlord’sapproval,initssolediscretion,andexecutionofaseparateagreementonthesame,Tenantshallhavethree(3)optionsoften(10)yearseach(eachsuchadditionaltermbeingreferredtoasan“ExtensionTerm,”andeachsuchoptionbeingreferredtoasan“ExtensionOption”)wherebyTenantmay(butshallnotbeobligatedto)extendtheTerm.EachExtensionOptionmaybeexercisedbyTenantprovidingLandlordwrittennotice(an“ExtensionNotice”)atleastsixty(60)months,andnotmorethanseventy-two(72)months,priortotheendoftheLeaseTermortheapplicableExtensionTerm,providedthatasaconditionprecedenttothecommencementofeachExtensionTerm,Tenantshallprovideaprofessionalpropertyconditionassessmentpreparedbyalicensedprofessional,acceptabletoLandlordinitsreasonablediscretion,thatdemonstratestoLandlord’ssatisfaction,initsreasonablediscretion,thattheProjectisinawellmaintainedandrepairedconditionwithoutaforeseenneedforcapitalexpendituresinorder(I)toextendtheusefullifeoftheProjectforthedurationoftheapplicableExtensionTerm,or(ii)forthePremisestosupporttheoperationoftheProjectpursuanttothetermsofthisLeaseforthedurationoftheapplicableExtensionTerm.Alternatively,iftheexistingconditionoftheProjectcannotbereasonablydemonstratedtosatisfytheconditionsinSection1.03(i)-(ii)above,thePartiesshallagreetoacapitalinvestmentplanbywhichTenantwillcommittomakingcapitalexpenditureinvestmentsintheProjectonanagreedtimescheduletoreasonablyassure,toLandlord’ssatisfaction.thattheusefullifeoftheProjectwillextendforthedurationofsuchExtensionTerm.SatisfactionoftheconditionprecedentforeachExtensionTermshallbeaccomplishedbynolaterthanthree(3)yearspriortothecommencementoftheapplicableExtensionTerm.TIMEISOFTHEESSENCEWITHRESPECTTOTHEGIVFNGOFTHEEXTENSIONNOTICE.Tenant’sexerciseofanyExtensionOptionshallbevoidifonthedatetheExtensionOptionisexercised.TenantisindefaultofitsobligationsunderthisLease,unlesssuchdefaultiscuredwithintheapplicablecureperiod.Section1.04DeliveryofPossession.PossessionofthePremisesshallbedeliveredbyLandlordtoTenantupontheCommencementDate.TenantagreesandacknowledgesthatthePremisesaretobedeliveredtoTenantinan“ASIS”,“WHEREIS”,“WITHALLFAULTS”condition,withnoobligationforLandlordtoimproveoralterthePremises,andwithLandlordmakingnorepresentationsorwarrantiesastothePremises,exceptasotherwiseexpresslysetforthinthisLease.Section1.05ConditionsPrecedent.TherightsandobligationsthePartiesestablishedinthisLeasearesubjecttoandcontingentuponthesatisfactionofeachandallofthefollowingconditions:(a)RecordingashortplatandEasements(definedbelow)asdescribedinSection6.05:(b)Tenant’sdeliveryofanoticeofsatisfactionwithintheduediligenceperiod,asdescribedinSection2.02;(c)ApprovaloftheLeasebytheLandlord’sSchoolBoard.andcompletionofanyrelatedpublicnoticeandhearingrequirementsasmayberequiredbylaw;1459925567—2— (d)ApprovaloftheLeasebyTenant’sCityCouncil;and(e)MutualagreementandexecutionoftheOperatingAgreement(definedbelow)bytheLandlordandTenant.ThePartyprimarilyresponsibleforthecompletionofeachoftheforegoingconditionsprecedentwillprovidewrittennoticetotheotherPartyuponcompletionoftheconditionprecedent,togetherwithevidenceofthecompletion(‘CompletionNotice”).UponreceiptofthelastCompletionNotice,theconditionsprecedentshallbedeemedsatisfiedandanoticeofcommencementoftheLeaseshallbeaddedandrecordedasanaddendumtothisLease.ARTICLE2RENTANDDUEDILIGENCESection2.01RentandConsideration.OntheCommencementDateandeachanniversarythereafter,TenantagreestopaytoLandlord,withoutnoticeordemand,offset,abatementordeduction,inlawfulmoneyoftheUnitedStatesofAmerica,anannualrentpaymentofonedollar($1.00).AsadditionalconsiderationforthisLease,LandlordshallhavetherighttousecertainProjectfacilitiesforLandlord-andSchool-relatedusesasmoreparticularlydescribedintheOperatingAgreement(definedinSection7.01).Section2.02DueDiligence.Tenantwillhaveaperiodofsixty(60)daysfollowingdeliveryoftheitemslistedbelowtoconductduediligenceofthePremises.TheduediligenceperiodmaybeextendedbywrittenagreementoftheParties.Priortotheendoftheduediligenceperiod,TenantmayprovidetoLandlordasatisfactionnoticestatingthatTenanthasperformeditsduediligenceofthePremisesandissatisfiedastoitscondition.IfTenantdoesnotprovidesuchsatisfactionnoticewithintheduediligenceperiod,therightsandobligationsunderthisLeaseautomaticallyterminateexceptthosethatexpresslysurvivetermination.LandlordshallprovideTenantwiththefollowingdocumentsnolaterthanfive(5)businessdaysaftertheexecutionofthisLease:(a)AllenvironmentalreportsrelatingtothePremisescurrentlyinLandlord’spossession;and(b)Apreliminarytitlecommitmentwithstandardpoliciesandendorsements,togetherwithcopiesoftheunderlyingdocumentsforallspecialexceptionslistedinScheduleB.PartII.(c)Landlordmakesnorepresentationorwarranty,express,written,oral,statutory,orimplied,astosuchmaterials,andallsuchrepresentationsandwarrantiesareherebyexpresslyexcludedanddisclaimed.AllsuchmaterialsareprovidedforinformationalpurposesandasanaccommodationonlyandshallbereturnedbyTenanttoLandlord(orthedestructionthereofshallbeconfirmedinwritingbyTenanttoLandlordsubjecttoTenant’scustomarydocumentretentionpolicies)ifthisLeaseisterminatedforanyreason.RecognizingthatanymaterialsdeliveredormadeavailablebyLandlordmaynotbecompleteorconstituteallofsuchdocumentsthatarereadilyandreasonablyavailabletoLandlord,Tenantshallnotinanywaybeentitledtorelyuponthecompletenessoraccuracyofsuchmaterialsandwillinsteadinallinstancesrelyexclusively1459925567—3— onitsowninspectionsandconsultantswithrespecttoallmatterswhichitdeemsrelevanttoitsdecisiontoleasethePremises.ARTICLE3USEOFPREMISESSection3.01PermittedUse.TenantshallusethePremisesforthepurposeofconstructing,operating,andmaintainingtheProject(the“PermittedUses”),asfurtherdescribedinanddefinedbytheOperatingAgreement.TenantshallnotchangetheuseofthePremisestoauseotherthanthePermittedUseswithoutfirstobtainingthewrittenconsentofLandlord,whichconsentwillnotbeunreasonablywithheld.Withoutlimitingtheforegoing,itshallnotbeunreasonableforLandlordtowithholdconsentforanyusethatisinconsistentwiththeeducationalmissionofLandlordorwouldviolateanypolicyofLandlord.Section3.02CompliancewithLaws.Tenantshall,atTenant’sowncostandexpense,complywithallapplicablelaws,statutes,ordinances,regulations,ordersandrequirementsnoworhereaftermadeorissuedbyanygovernmentalentitiesandcourtshavingjurisdiction,whetherfederalorstateorcountyormunicipal(“ApplicableLaws”).Ifanylicense,permit,orothergovernmentalauthorizationisrequiredforthelawfuluseoroccupancyofthePremisesorProjectoranyportionofthePremisesorProject,Tenantshallprocureandmaintainsuchlicense,permit,orgovernmentalapprovalthroughouttheTermofthisLease.Thejudgmentofanycourtofcompetentjurisdiction,ortheadmissionbyTenantinaproceedingbroughtagainstTenantbyanygovernmententity,thatTenanthasviolatedanyApplicableLawsshallbeconclusiveasbetweenLandlordandTenantandshallconstituteaTenantdefaultwithinthemeaningofSection12.02.ARTICLE4UTILITIESSection4.01Utilities.Tenantshallpayorcausetobepaidpriortothedelinquencydatetherefor,andholdLandlordfreeandharmlessfrom,allchargesforthefurnishingofgas,water,electricity,telephoneservice,andotherpublicutilitiestothePremisesduringtheTermandfortheremovalofgarbageandrubbishfromthePremisesduringtheTermofthisLease.Withoutlimitingthegeneralityoftheforegoing,Tenantshallbesolelyresponsibleforallutilityhook-up,connection,impact,meteringandotherfeesinconnectionwithutilityserviceforthePremises.ThePremisesshallbemeteredandbilledseparatelyfromtheAdjacentSchoolProperty.ARTICLE5TAXESANDASSESSMENTSSection5.01Impositions.CommencingontheCommencementDate,Tenantshallpayasandwhendueeachandeveryoneofthefollowing(collectively,the“Impositions”):(a)AllrealpropertytaxesorpaymentsinlieuthereofthatareduewithrespecttothePremisesoranyportionthereof1159925567—4— (b)TaxesdueorwhichmaybedueuponorwithrespecttotheleaseholdestatecreatedbythisLeaseoranysublease(including,butnotlimitedto,theleaseholdexcisetaxpayablepursuanttoRCWCli.$2.29A,asnowineffectorashereafteramendedorsuperseded),ortheRentpayableorpaidbyTenanttoLandlord,includinganybusinessandoccupationtaxes,butexcludinganytaxmeasuredbythenetincomeofLandlord;(c)AlltaxesimposedonorwithrespecttopersonalpropertyandintangibleslocatedinorusedinconnectionwiththePremises:(d)AllassessmentsforpublicimprovementsorbenefitswhichareassessedduringtheTermofthisLeasewithrespecttothePremises,andallsimilarassessmentsandcharges;(e)Allimpactfees,usefees,orothersimilarfees,costs,orchargesimposedbyanygovernmentalauthoritybasedonTenant’suseand/ordevelopmentofthePremises;and(0Allotherrents,ratesandcharges,excises,levies,licensefees,permitfees,inspectionfeesandotherauthorizationfeesandothercharges,ineachcasewhethergeneralorspecial,ordinaryorextraordinary,foreseenorunforeseen.ofeverycharacter(includinginterestandpenaltiesthereon),whichatanytimeduringorinrespectoftheTermmaybeassessed,levied,confirmedorimposedonorinrespectoforbealienuponthePremisesoranypartthereof,oranyestate,rightorinteresttherein,oranyoccupancy.useorpossessionoforactivityconductedonthePremisesoranypartthereof.LandlordshallpromptlysendtoTenantanystatementsLandlordreceiveswithrespecttothepaymentoforexemptionfromanyImpositions.Section5.02ProofofPayment.TenantwillfurnishtoLandlord,uponrequest,withinthirty(30)daysafterthedateanyImpositionwouldbecomedelinquent,officialreceiptsoftheappropriatetaxingauthorityorotherproofsatisfactorytoLandlordevidencingthepaymentoftheImposition.Ifanexemptionapplies,TenantwillfurnishtoLandlordwrittenconfirmationoftheexemptionfromtheauthorityimposingtherents,ratesandcharges,excises,levies,licensefees,permitfees,inspectionfeesandotherauthorizationfeesorothercharges.Section5.03CooperationastoExemptions.LandlordandTenantagreetocooperateandworkingoodfaithtopursue,atTenant’sexpense,anyapplicableexemptionsfromanyImposition;provided,however,thatTenantshallnotsubmitanyapplicationsforImpositionexemptionswithoutLandlord’spriorreviewandwrittenconsent,whichshallnotbeunreasonablywithheld.Section5.04SpecialUseCategory.IfTenantcausesorallowsthePremisestobetaxedbasedonanyspecialusecategorywhichresultsinthedeferralofanyportionofthetaxespayablewithrespecttothePremisesatanytimeduringtheTerm,thenfollowingtheexpirationorsoonerterminationofthisLeaseanyliabilitywhichmayariseasaconsequenceoftherecaptLtreorotherpaymentofanyportionofthedeferredtaxesshallbetheobligationoftheTenant,l459925567—5— includinganypaymentwhichmayariseduetoachangeinusebyLandlordoritssuccessor.ThiscovenantshallsurvivetheexpirationorsoonerterminationofthisLease.Tenantshallindemnify,defendandholdharmlessLandlordandthePremisesfromanyImpositionLien,orliabilitywithrespecttoanyImposition,includingallcostsandexpensesrelatedthereto.ThisindemnificationobligationshallsurvivetheexpirationorearlierterminationofthisLease.ARTICLE6CONSTRUCTIONBYTENANTSection6.01DutytoConstruct.(a)DutytoConstruct.Tenantshall,atTenant’ssolecostandexpense,inagoodandworkmanlikemanner,infullcompliancewithallapplicablelaws,legalrequirements,permitsandallapplicableprovisionsoftheEasements,promptlycommenceanddiligentlypursuethedemolitionofanyexistingimprovementslocatedatthePremises,including,butnotlimitedtoaretainagepondandstormwatersewerfacility(the“StormwaterSystem”andcollectivelywithanyotherexistingimprovementslocatedatthePremises,the“ExistingImprovements”),andconstructionoftheProjectonthePremises(“InitialImprovements”)inaccordancewiththeMasterPlanandthedevelopmentapprovalsandentitlementsissuedtoorobtainedbyTenantfromtheCityofRentonandothergovernmentalagenciesfortheProject(the“FinalApprovals”).Notwithstandinganythingtothecontraryinthissubsection,Landlordshallberesponsibleforthereasonablecostsandexpensesoffixtures,furnishings,andequipment(Ff&E)customizedforLandlord’suseandlocatedintheportionoftheProjectusedexclusivelybyLandlord,asmoreparticularlydescribedintheOperatingAgreement.(b)FinalApprovals.TenantshalldiligentlypursuetheFinalApprovals.TenantmustfirstobtainthewrittenconsentandapprovalofLandlord,nottobeunreasonablywithheld,regardingfinalbuildingplansorschematics(“FinalPlans”)andpriortobeginningconstructionofanyInitialImprovements.AnyMaterialChangestotheFinalPlanssubsequenttoLandlord’sinitialapprovalofthesameshallbesubjecttoLandlord’spriorwrittenconsent,inLandlord’ssoleandabsolutediscretion.“MaterialChanges”include,withoutlimitation,changesthatimpactpedestrianorvehicularingress/egress;placement,size,andlayoutoftheProject;functionalityofexteriorlighting;visuallyobviousorfunctionallyinferiorreplacementstobuildingmaterials;andlandscaping.(c)DutytoComplete.Uponawardingaconstructionbid,tenantshalldiligentlypursueconstructionofandcompletetheProjectinaccordancewiththeFinalPlans.If(a)construction-relatedworkand/orconstructionoftheProjectisabandonedforoveronehundredeighty(180)days,or(b)TenantfailstoachieveSubstantialCompletionoftheProjectasprovidedinthisSection6.01bythedatethatisthethree(3)yearanniversaryoftheCommencementDate(the“CompletionDate”),Landlordmayelectto(i)terminatethisLease,inwhichcaseTenantshallsurrenderthePremisesinitsthen-existingcondition,andotherwisepursuanttothetermsoftheLease,and,atLandlord’selection,TenantshalldemolishtheProjectandremovealldebrisandsecurethePremisessuchthatitshallnot,afterdemolishment,constituteahazardornuisance(and1459925567—6— otherwiseinamannerreasonablyacceptabletoLandlord),priortosurrenderingthePremisestoLandlord,or(ii)extendtheCompletionDate,inwhichcaseTenantshalldiligentlypursueconstructionoftheProjectandshallachieveSubstantialCompletionbytheCompletionDate,asextended.ForpurposesofthisSection,theProjectwillnotbeconsideredabandonedduringtimesoftemporaryprojectdelaycausedbyconditionsbeyondTenant’scontrol,includingbutnotlimitedtogovernmentordersrestrictingconstruction,ongoingmaterialunavailability,oremergencycircumstancessuchasanaturaldisasterorpublichealthemergency.IfTenanthasfailedtoachieveSubstantialCompletionoftheProjectwithintwo(2)yearsoftheCommencementDate,thePartiesshallmeetandconferregardingTenant’splannedconstructionschedule.anduponwrittenrequestfromTenant,LandlordshallconsiderarequesttoextendtheCompletionDate.ForthepurposesofthisLease,“SubstantialCompletion”shallmeanthestageintheprogressoftheconstructionoftheInitialImprovementswhentheInitialImprovementsaresufficientlycompleteinaccordancewiththeMasterPlan,andTenanthasobtainedaTemporaryCertificateofOccupancyasrequiredbylaw,sothattheTenantcanfullyoccupyorutilizetheProjectforitsintendeduse.(d)ReplacementStormwaterSystem.Tenantshall,atTenant’ssolecostandexpensedesignandconstructorcausetobeconstructedastormwatersystemcapableofreplacingthecapacityandfunctionalityoftheStormwaterSystem(the“ReplacementStormwaterSystem”).provided,however,thatTenantmustfirstobtainthewrittenconsentandapprovalofLandlord,nottobeunreasonablywithheld,regardingthefinalplansorschematicsfortheReplacementStormwaterSystem,priortobeginningconstructionoftheReplacementStormwaterSystem.Section6.02AllWorkonWrittenContract;PrevailingWages.(a)AllworkrequiredinthedemolitionoftheExistingImprovementsandconstructionoftheProject,including,butnotlimitedtoconstructionoftheInitialImprovements,theReplacementStormwaterSystem,anysitepreparationwork,landscapingwork,andutilityinstallationwork,aswellasactualconstructionwork,shallbeperformedonlybycompetentcontractorslicensedunderthelawsoftheStateofWashingtonandreasonablyexperiencedinperformanceofcomparablework,andshallbeperformedinaccordancewithwrittencontractswiththosecontractorsthatareassignabletoLandlordintheeventthisLeaseterminatespriortocompletion.(b)Tenantshallpay,andshallrequireallofitscontractorsandsubcontractorstopay,prevailingwagesandshallotherwisecomplywiththerequirementsofRCW39.04.260andChapter39.12RCW.Section6.03ConstructionCosts.TenantshallpaywhendueallConstructionCostsassociatedwiththeProject.Theterm“ConstructionCosts”meansallhardandsoftcostsofconstructionoftheProject,togetherwithallcompensatorydamages(excludingconseqciential,specialandpunitivedamagesofanykind),latecharges,interest,actualout-of-pocketcostsorfees,l459925567—7— reasonableattorneys’feesandactualout-of-pocketexpensesincurredorsufferedbyLandlordasaresultofTenant’snon-paymentoftheConstructionCosts.Section6.04Liens.(a)AtalltimesduringtheTermofthisLease,TenantshallkeepthePremises,theProjectandallSubsequentImprovements(definedbelow)noworhereafterlocatedonthePremisesfreeandclearofanyencumbrances,covenants,easements,leases,andlicenses,exceptasotherwiseapprovedofinwritingbyLandlord(“Encumbrances”),andofanyliensofanynature(exceptinchoateliens)inconnectionwiththeuse,development,constructionoroccupancyofthePremises,including,withoutlimitation,liensforlabor,services,materials,supplies,orequipmentperformedonorfurnishedtothePremises,(collectively,“Liens”).exceptforliensforreleaseofretainageasdescribedinChapter60.28RCW(“RetainageLiens”).ShouldTenantfailtopayanddischargeorcausethePremisestobereleasedfromanysuchEncumbrance.Lien,orclaimoflienwithinthirty(30)daysafterserviceonTenantofwrittenrequestfromLandlordtodoso,Landlordmaypay,adjust,compromise,anddischargeanysuchEncumbrance,Lien,orclaimoflienonanytermsandinanymannerthatLandlordmaydeemappropriate;provided,however,thatTenantshalldischargeanyRetainageLiensonlyafteritreceivesreleasesfromtheDepartmentofRevenue,LaborandIndustries,andEmploymentSecurity(allasrequiredbyapplicablelaw)andshallotherwisedischargeanyRetainageLiensinaccordancewithWashingtonstatutes.TenantshallreimburseLandlordforthefullamountpaidbyLandlordinpaying,adjusting,compromising,anddischarginganyEncumbrance,Lien,orclaimoflien.(b)NotwithstandinganythingtothecontrarycontainedinthisLease,TenantandHealthPointshalleachhavetheright,subjecttoLandlord’spriorwrittenconsent,toexecuteanddeliveraleaseholddeedoftrust(each,aLeaseholdDeedofTrust”)encumberingTenant’sorHealthPointsleaseholdinterestinthePremises(asapplicabletoTenantorHeatthPoint,the“LeaseholdEstate”)atanytimeprovidedthat(i)therightssecuredbysuchLeaseholdDeedofTrustshallbelimitedtothoserightsofTenantorHealthPointspecifictotheLeaseholdEstate,andthatnosuchLeaseholdDeedofTrustshallencumberLandlord’sfeeinterestinthePremisesandtheProjectthereon(the“FeeEstate”),(ii)theproceedsfromthedebtsecuredbysuchLeaseholdDeedofTrustwillnotbeusedforpurposesotherthanthedesign,development,construction,financing,management,maintenance,repair,replacement,leasing,oroperationoftheProject,andcustomarycosts,feesandexpensesincurredinconnectionwiththeforegoing,and(iii)eachLeaseholdDeedofTrustmustbeinfavoroftheWashingtonStateDepartmentofCommerce(Commerce”).Landlordshallnotberequiredto,nordoesLandlordhereby,joininorsubordinatetheFeeEstatetoanyLeaseholdDeedofTrust.andnosuchLeaseholdDeedofTrustshallextendtooraffecttheFeeEstate.EachLeaseholdDeedofTrustshallprovidethatCommerceshallsendtoLandlordcopiesofallnoticesofdefaultsenttoTenantinconnectionwiththeLeaseholdDeedofTrustorthedebtsecuredthereby,providedthatthefailuretoprovideanysuchnoticeshallnotaffectthevalidityofthenoticeasagainstTenant.Section6.05ShortPlatandEasements.(a)ThePartiesagreethatashortplatwillberequiredtofacilitatetheProject.LandlordandTenantwillcooperateingoodfaithtodeterminethenewboundariesoftaxparcelnumber2823059034.Whendeterminingthenewboundaries,thePartieswillconsiderthefuturesitingof1459925567—8— thecommunitycenterplannedforconstructionbyLandlordaswellasthecontinuedfunctioningofschoolusesontheAdjacentSchoolPropertytothenorth.UponagreementofthePartiesofthelocationofthenewparcellines,Tenantwillprepareandfiletheapplicationforashortplat,atnocostorexpensetoLandlord.LandlordagreestocooperatewithTenant’sapplicationforsameandtoprovidesuchfurthersupportingdocumentsasmayberequiredtosubdividethePremisesfromtheAdjacentSchoolProperty.(b)ThePartiesagreetoexecuteavehicularandpedestrianaccesseasement,afireaccesseasement,awatereasement,andothereasements,asmaybereasonablyrequired,(collectively,the‘Easements”),toberecordedinKingCounty,pertainingtotheParties’responsibilitiesforandjointuseofcertainfacilitiesontheSchoolDistrictPropertyandAdjacentSchoolProperty.Section6.06NecessaryPlansandAgreements.Landlord,initscapacityasapropertyowner,agreestotakethefollowingactions,withinareasonabletimeafterTenant’swrittenrequest,ifandtotheextentrequiredtoimplementand/orfinalizetheFinalApprovalsfortheProjectortofacilitatetheconstructionoroperationoftheProject:(a)Joininthegrantsofeasementstopublicand/orprivateutilitycompaniesrequiredtoprovideutilityservicestotheProjectorwithintheright-of-wayofanystreetsshownonarecordedfinalmaporparcelmap;(b)Executeconsentstoorjoininanyreciprocaleasementagreementorcovenants,conditions,easementsand/orrestrictionsenteredintobyTenantwithownersortenantsofadjoiningproperty,inconnectionwiththecreation,improvement,useandmaintenanceofanyneworexistingappurtenanteasementsrequiredtoconstructandoperatetheProject;and(c)Executesuchotherdocuments,includingmaps,easements,covenants,consents.agreements,conditions,easements,restrictions,instrumentsandotherdocumentsasTenantmayreasonablydeterminearenecessaryordesirabletofacilitatetheconstructionoroperationoftheProject;provided,however,thatLandlord,initscapacityasapropertyowner,shallhavetherighttoreviewandapproveofanysuchmap,easement,consent,grant,agreement,covenant,condition,easement,restriction,instrumentand/orotherdocumenttobesoexecutedorjoinedinbyLandlordthatdoesormaysurvivetheexpirationorearlierterminationofthisLease,whichapprovalshallnotbeunreasonablywithheld.ItisacknowledgedbythePartiesthatitisreasonableforLandlordtowithholdconsentforproposedgrants,easements,covenants,andthelikethatwouldhaveamaterialadverseimpactonLandlord’suseoftheAdjacentSchoolProperty.Section6.07PermitsandAuthorizations.ShouldTenantdeemitnecessaryorappropriatetoobtainanyzoningorlandusepermittoconstructoroperatetheProjectoranysubsequentimprovementsforthePermittedUsesorotherusesconsentedtobyLandlordunderSection3.01above.Landlordagreestoexecuteanydocuments,petitions,applications,utilityeasementsandauthorizations,thatmaybenecessaryorappropriate:provided.however,thatanysuchpermits,variances,orrezoningshallbeobtainedatthesolecostandexpenseofTenant.Landlordshallhavetherighttoreviewandapproveofanysuchdocuments,petitions,applications.1459925567—9— utilityeasements,authorizationsand/orotherinstrumenttobesoexecutedorjoinedinbyLandlord,whichapprovalshallnotbeunreasonablywithheld,conditionedordelayed.ItisacknowledgedbythePartiesthatitisreasonableforLandlordtowithholdconsentiftheproposeddocument,application,orotherinstrumentwouldhaveamaterialadverseimpactonLandlord’suseoftheAdjacentSchoolProperty.UponLandlord’srequestfromtimetotime,TenantshaltprovidetoLandlordstatusreportsrelatedtoTenant’spursuitofthefinalApprovals.Inaddition,TenantshallprovideLandlordwithascheduleofallongoingconstructionmeetingsandwithreasonableadvancenoticeandtheopportunityforarepresentativetoattendanymeetingsinwhichanagentoftheCityofRentonorothergovernmentalbodywithjurisdictionisexpectedtoattend;Landlordwillusereasonableeffortstosendarepresentativetoanysuchmeeting.NotwithstandinganyprovisionofthisLeasetothecontrary,TenantshallnottakenorpermittobetakenanyactionpermanentlybindingupontheSchoolDistrictPropertyofPremiseswithouttheexpresswrittenconsentofLandlord,inLandlord’ssoleandabsolutediscretion.Tenantshallindemnify,defendandholdharmlessLandlordagainstallcostandliabilityassociatedwithTenant’seffortstoobtainpermits.ThisindemnificationobligationshallsurvivetheexpirationorearlierterminationofthisLease.Section6.08SubsequentImprovements.AfterthecompletionofconstructionoftheProject,TenantmaydesiretoredevelopanyportionoftheProjectorPremisesconsistentwiththeMasterPlan,ormakemodificationsoralterationstotheProjectthatmateriallyalterthesizeorcharacteroftheProjectsuchthatanewcertificateofoccupancyorpermitislegallyrequiredfortheredeveloped,modifiedoralteredimprovementstobeusedoroccupiedforthePermittedUses(the“SubsequentImprovements”andtogetherwiththeInitialImprovements,the“Improvements”).AllsuchSubsequentImprovementsshallbesubjecttoLandlord’spriorwrittenapprovalpursuanttoSection14.09.Thefollowingarenotincludedwithinthemeaningof“SubsequentImprovements”:(a)ordinaryrepairs,replacementsandmaintenancethatdonotmateriallyaltertheexteriorappearanceoftheProject;and(b)demolitionorinstallationofinteriorimprovementsthatdonotmateriallyadverselyaffectthefunctionalityoftheProjectforthePermittedUse.Oncecomplete,SubsequentImprovementsshallbedeemedpartoftheProject.Section6.09OwnershipoftheProject.TitletotheImprovementsshallbeheldbyTenantuntiltheExpirationDateortheearlierterminationofthisLease.TheImprovementsshall,upontheExpirationDateorearlierterminationofthisLease,automaticallyandwithoutanyactofTenantoranythirdpartybecomeLandlord’sproperty.UpontheExpirationDateorearlierterminationofthisLease,TenantshallsurrendertheImprovementstoLandlord,freeandclearofallliensandencumbrances,otherthanthose,ifany,expresslypermittedunderthisLeasetosurvivetheExpirationDateorearlierterminationofthisLease,orotherwisecreatedorconsentedtobyLandlord,andTenantagreestoexecute,acknowledge,anddelivertoLandlordanyinstrumentrequestedbyLandlordasnecessaryinLandlord’sopiniontoperfectLandlord’sexclusiveright,title,andinteresttotheImprovementsandthePremises.ForthepurposesofthisSection6.09,theterm“Improvements”shallnotincludefixtures,furnishings,orequipmentinstalledbyTenant,whichshallremainthepropertyofTenantandshallberemovableatanytimeduringtheTermatnocostorexpensetoLandlord.Section6.10ArchaeologicalDiscovery.IfanyobjectsofctilturalorarchaeologicalsignificancearediscoveredonthePremises(aDiscovery”).Tenantwillcomplywithall1459925567—10— ApplicableLawsgoverningdiscoveryandpreservationofsuchitemsandshallbearthecostsofsuchcompliance.Section6.11ImpactstoSchool;Coordination.(a)UnlessotherwisemutuallyagreeduponbyLandlordandTenantinwriting,neitherconstructionnoroperationoftheProjectshallreducethenumberofparkingstallsorotherwisemateriallyimpactLandlordsparkingfacilitiesontheAdjacentSchoolProperty.eitherduringconstructionoftheProject.oruponcompletionofconstructionoftheInitialImprovementsortheProject.(b)TenantwillmaintaintheSchool’saccesstothefirelaneconnecting116thAveSEtotheplaygroundareaeastoftheSchool(“fireLane”)andthefirehydrantlocatedalongtheFireLane(“Hydrant”)duringconstruction.If,duringconstructionoftheProject,accesstotheFireLaneisrenderedfunctionallyunusableortheHydrantisinaccessible,thenTenantwill(I)providetheSchoolwithalternativeaccesssufficienttomeettheneedsoftheSchoolandasrequiredbylaw,and(ii)obtainapprovalfromtheFireMarshaloftheRentonFireAuthorityregardinganyclosureoftheFireLaneandanytemporaryorpermanentreplacementfacilities.(c)TenantwiltensurethatduringtheSchoolYear,allpersonnelrelatedtoconstructionoftheProjectshallparkoff-site,andshallnotparkinthewestparkinglot,identifiedonExhibitC,attachedheretoandincorporatedherein(“WestLot”),orthenorthparkinglot,identifiedonExhibitC,(“NorthLot”).(d)Tenantwillensurethat(i)allconstruction-relatedworkoccurringonorotherwiseimpactingtheWestLotoccursonlywhentheSchoolisnotinsession,generallyduringthemonthsofJulyandAugust,butsubjecttochangedependingonLandlord’sacademiccalendar(“Summer,”withtheremainderoftheyearidentifiedasthe“SchoolYear”),andonweekendsduringtheSchoolYear,provided,however,thatanysuchSchoolYearweekendworkshallrequirefourteen(14)dayswrittennoticefromTenanttoLandlord,andshallbesubjectLandlord’sreasonableapproval,andfurtherprovidedthatfollowinganysuchSchoolYearweekendwork,TenantshallensureitscontractorsandsubcontractorsshallhaveremovedallProject-relatedvehiclesfromtheWestLot,andshallusecommerciallyreasonableeffortstoremoveallProject-relateddirtanddebrisfromtheWestLot,includingby,asappropriate,theuseofwheelwashequipment,and/orvacuumandwatersprayingdevices,priorto7:59pm,PacificTime,onSundayofsaidweekend,and(ii)anyconstruction-relatedworkoccurringadjacenttotheWestLot,theNorthLot,andtheSchooloccurringduringtheSchoolYearhasminimal,ifany,impactonSchoolpick-upanddrop-offactivitiesatthebeginningandendofeachschoolday,byensuring,amongotherthings,that(a)drivewaysleadingintotheWestLotandNorthLotareneverfullyorpartiallyblockedbyconstruction-relatedvehiclesormaterials,(b)noconstruction-relatedvehiclesormaterialsarelocatedorstoredwithintheWestLotortheNorthLot,and(c)construction-relatedactivityinnowayimpactstheabilityofSchoolbusestoenterandexittheNorthLot.Tenantmayrequestreasonableexceptionstothelimitationsprovidedherein,tobegrantedinLandlord’ssotediscretion,andprovidedthatanyrequestedexceptionsmustbecapableofbeingaccomplishedsafelyandwithminimalimpacttotheLandlord’soperations.1459925567—11— (e)IfLandlord,initssole.reasonablediscretion,determinesthatactivitiesrelatedtotheconstructionoftheImprovementshaveamaterialimpactonExistingTrafficPatterns(asdefinedbelow),thePartiesshallmeetwithintwenty-four(24)hours’ofnoticefromLandlordandresolveingoodfaithtoagreetopoliciesandregulationstomitigateallsuchimpacts,providedthatifthePartiesareunabletoagreetopoliciesandregulationstomitigateallsuchimpacts,orif,inLandlord’ssole.reasonablediscretion,withinseventy-two(72)hoursoftheaforementionedmeeting,theagreeduponpoliciesandregulationsareunsuccessfulinmitigatingallsuchimpacts,TenantshallimmediatelyceaseallsuchconstructionactivitiesuntilthePartiesareabletoagreetoadditionalpoliciesandregulationstoresolveallsuchimpacts.(1)TenantwillprepareaConstructionImpactMitigationPlan,withinputfromLandlordandTenant,whichisintendedtoreduceoreliminatecertainanticipatedimpacts,totheextentreasonablyfeasible,totheSchoolarisingfromtheconstructionoftheProject,includingwithrespecttotransportation,noise,anddustcontrol.TenantwiltdirectitscontractortomakereasonableeffortstocontaindustandodoronsiteandtoscheduleitsworkinamannerdesignedtominimizetheimpactstotheSchool.(g)TenantshallmeetregularlywiththeDistrictinordertodiscussandaddressimpactsoftheconstructionoftheProjectandmethodsforeliminatingorminimizingadverseimpactstotheSchool.ARTICLE7OPERATIONANDRESTORATION;SURRENDERSection7.01OperatingAgreement.ThePartiesagreetoenterintotheOperatingAgreement,describingandallocatingresponsibilitiesrelatedtotheoperationoftheProject.TheOperatingAgreementwillinclude,butnotbelimitedto,termsdescribingthe(I)sitemaintenance,repairs,andutilities,(ii)shareduseofparking,(iii)signage,(iv)shareduseofimprovements,(v)programmingcoordination,includingLandlord’suseoftheProjectforSchool-relatedprogrammingandactivities,(vi)allocationofresponsibilitiesassociatedwithshareduses,and(vii)coordinationofconstruction,financing,development,andcompletionoftheProject.TheParties,inconsultationwithanticipatedsubtenants,including,withoutlimitation,HealthPoint,shallcometomutualagreementastotheinitialformoftheOperatingAgreementpriortotheCityawardingaconstructioncontractfortheProject.TheinitialformoftheOperatingAgreementshallsatisfythecontingencyinSection1.05(e)ofthisLease.ThePartiescontemplateadditionaloperatingdetailstobeaddedtotheOperatingAgreementbyaddendaoramendmentspriortoissuanceofthecertificateofoccupancyfortheProject.TenantanditsinitialsubtenantsanticipateenteringintoaseparateoperatingagreementallocatingresponsibilitiesamongstthemselvesrelatingtotheoperationoftheProject.TenantanditsinitialsubtenantsshaltconsultwithLandlordregardingsuchoperatingagreement.Landlordsapprovalshallnotberequiredforexecutionofsuchoperatingagreement.providedthatanysuchoperatingagreementandanyotheroperatingagreementbetweenTenantanditssubtenantsareconsistentwithTenantsobligationsundertheOperatingAgreement.Section7.02RepairandMaintenance.AtalltimesduringtheTerm,Tenantshall,atitssolecostandexpense,keepandmaintainthePremisesandallImprovementsnoworhereafter1459925567—12— constructedonthePremisesingoodconditionandrepair,(reasonablewearandtearexcepted),asfurtherdescribedintheOperatingAgreement.AnyundevelopedareasofthePremisesshallbekeptinaclean,safe,andsightlyconditionatalltimes.Tenantshallpromptlyperformaltrepairs,renovations,replacementsandmaintenancereasonablyneededtoensurethatthePremisesandImprovementsareatalltimesuntiltheExpirationDateconsistentwiththestandardsetforthinthisSection7.02.Allsuchrepairsandmaintenanceshallbeconductedinagoodandworkmanlikemannerinfullcompliancewithapplicablebuilding,environmentalandsafetylawsandallotherApplicableLaw,includingthetermsandconditionsofapplicablepermits,licenses,authorizationsandapprovals.Landlordshallhavenomaintenance,repair,orrenovationresponsibility,andLandlordshallnotbecalledupontomakeanyexpenditurerelatedtosame,provided,however,thatLandlordshall,atitscostandexpense,repairanydamagecausedsolelybyLandlordintheportionoftheProjectusedexclusivelybyLandlord,asmoreparticularlydescribedintheOperatingAgreement.Additionally,TenantshallcomplywiththetermsandconditionsoftheEasementsandperformanyobligationsapplicabletothePremisesthereunder.Section7.03LandscapingRestoration.Tenant’sconstructionoftheProjectmaydisruptthelandscapingofthePremisesortheAdjacentSchoolProperty,includingremovaloftreesandvegetation.TenantwillprovidereplacementlandscapingandtreesconsistentwiththeRentonMunicipalCode.SuchlandscapingwillbereviewedandapprovedaspartofTenant’sbuildingplans.Section7.04SurrenderofPremises.OnexpirationoftheTermorearlierterminationofthisLease,TenantshallsurrenderthePremisesandtheProjecttoLandlordinagood,safe.andcleancondition,subjecttoreasonablewearandtear,incompliancewiththisLeaseandallApplicableLaws.ARTICLE8PARKINGANDTRANSPORTATIONSection8.01Parking.Tenantwilldesign,construct,andpayforsufficientparkingstallsonthePremisestomeettheparkingrequirementsofApplicableLawsfortheProject,primarilylocatedontheeasternparkinglot(“EastLot”),tobeconstructedaspartoftheProject,andasdepictedonpage2ofExhibitC.Obligationsregardingtheoperation,use,andmaintenanceofparkingstallswillbedescribedintheOperatingAgreement.Tenantshallusebesteffortstocauseitsemployees,subtenants,licensees,members,managers,agents,guestsandinviteestoexclusivelyparkintheEastLotandtopreventTenantPartiesfromparkingintheNorthLotortheWestLot,exceptasprovidedinSection8.04below.Landlordshallusebesteffortstocauseitsemployees,subtenants.licensees,members,managers,agents,guestsandinviteestonotparkintheEastLotwiththeexceptionofauthorizedusersoftheProject.orasotherwiseagreedtobytheParties.Section8.02ExistingTrafficPatterns.TenantshallusebesteffortstominimizetheimpactsoftheuseandoperationoftheProjectonexistingtrafficpatternsintheWestLotandNorthLot.including,butnotlimitedto,studentpick-upanddrop-offactivitiesintheWestLotandschoolbuspick-up,drop-off,andturnaroundactivitiesintheNorthLot(collectively,‘ExistingTrafficPatterns”).IfTenant’suseandoperationoftheProjecthasamaterialimpact1459925567—13— onExistingTrafficPatterns,asdeterminedbyLandlordinitssolediscretion,thePartiesshallmeetwithinforty-eight(48)hours’ofnoticefromLandlordandresolveingoodfaithtoagreetopoliciesandregulationstoresolveallsuchimpacts.AdditionalresolutionproceduresmaybeprovidedforintheOperatingAgreement.Section8.03OverflowParking.IntheeventthatTenantanticipatestheneedforoverflowparkingbeyondthecapacityoftheEastLot(“OverflowParking”).Tenantshall,uponLandlord’spriorwrittenapprovalgiveninitssole,reasonablediscretion,havetherighttouseoftheWestLotand/ortheNorthLotfortheOverflowParking,subjecttoproceduresandrestrictionsmoreparticularlydescribedintheOperatingAgreement.Section8.04ParkingLicense.LandlordshallgranttoTenantand,subjecttoLandlord’sapproval,Tenant’ssubtenant(s)(collectively,“Licensee”),anon-exclusive,temporarylicense(“ParkingLicense”)touseeight(8)parkingstalls(“LicensedParkingArea”)locatedintheWestLot,asdepictedinExhibitC,attachedheretoandincorporatedherein,forthesolepurposeofparkingbyLicensee,andLicensee’sguestsandinvitees.TheParkingLicenseshallbeeffectiveduringtheTermandshallexpireontheExpirationDate,orearlieruponLandlord’sdetermination,initssolediscretion,thattheLicensedParkingAreaisrequiredforschoolpurposes.SuchLicenseshallbepersonaltoLicenseeandshallnotbeassignedortransferredinanymanner(includingbyoperationoflaw).withoutLandlord’spriorwrittenconsentwhichmaybegivenorwithheldinLandlord’ssolediscretion.UndernocircumstancesmayLicenseeusetheLicensedParkingAreaforpayparkingorforanyusenotexpresslypermittedunderthisLease.TheParkingLicenseshallbeexecutedasapartof,orconcurrentlywith,theOperatingAgreement.ARTICLE9INDEMNITYANDINSURANCESection9.01Tenant’sIndemnity.ExceptasotherwiseprovidedintheOperatingAgreement,Tenantshallholdharmless,indemnify,anddefendLandlord,itselectedandappointedofficials,officers,employeesandagents,fromanyandallclaims,actions,suits,liability,loss,damages,orexpenses(collectively,“Claims”)resultingfrom:(a)Tenant’sconstructionoftheInitialImprovementsand/oranySubsequentImprovements;(b)anyaccidents,damagesorinjuriestopersonsorpropertyoccurringonthePremisesduringtheTerm(excepttotheextentthesameareduetoLandlord’swillfulmisconduct,grossnegligence,orsolenegligence);(c)anyaccidents,damagesorinjuriestopersonsorpropertyoccurringontheSchoolDistrictPropertyandarisingfromthenegligentactsoromissionsofTenantorTenant’ssubtenantsrelatingtotheirrespectiveuseofthePremisesduringtheTerm;(d)anybreachordefaultofTenantunderthisLease;(e)theenforcementofLandlord’srightsunderthisLease;(0anyProject-construction-relatedwork,orsubsequentimprovementsormaintenancedoneduringtheTerminortothePremises,exceptifdonebyLandlord,itselectedandappointedofficials,officers.employeesoragents;or(g)intheeventofanyholdoverbyTenantorTenant’ssubtenantspursuanttoSection13.06below,Claimsarising(i)aftertheExpirationDateresultingfromanyaccidents,damagesorinjuriestopersonsorpropertyonthePremisesorontheSchoolDistrictProperty.and(ii)fromthenegligentactsoromissionsofTenantorTenant’ssubtenantsrelatingtotheirrespectiveuseofthePremises.Withoutlimitingthegeneralityoftheforegoing,TenantherebyexpresslyreleasesLandlordanditsofficers,agents,directors,electedandappointedofficials,employees,attorneys,insurersand1459925563—14— lendersfromandwaivesaltclaimsagainstsuchpartiesforTenant’sfees,costs,tossesandliabilities,includingwithoutlimitationdevelopmentcostincreases,duetotheremovalorremediationofanycontaminants,HazardousSubstances,wastesormaterialsonthePropertyasoftheCommencementDate.Tenantshallindemnify,defend(withcounselreasonablyacceptabletoLandlord)andholdLandlordharmlessfromallclaims,liability,losses,costsorfees,includingwithoLitlimitationreasonableattorneyfeesandcostsincurredpriortothedateTenantundertakesLandlord’sdefense,arisingoutoforpertainingtoTenant’suse,removalorremediationofHazardousSubstancesin,onatoremanatingfromtheProperty.TenantshallretaintherighttoobtainindemnityorrecoveryforanyliabilityorcostsTenantincursrelatingtocontaminants,HazardousSubstances,wastesormaterialsonthePropertyfromanyotherpotentiallyresponsiblepartyunderappropriatestateorfederalenvironmentallaws.TheforegoingindemnitiesandthissectionshallstirvivetheexpirationorearlierterminationofthisLease.Section9.02GeneralLiabilityInsurance.Tenantshall,atTenant’ssolecostandexpense.procureandmaintainduringtheentireTermofthisLeasecommercialgeneralliabilityinsuranceorequivalentself-insuredliabilityprogramwrittenonanoccurrence(andnot“claimsmade”)basis,insuringagainstallliabilityofTenantwithrespecttothePremises,includingcontractualliabilitycoveragerecognizingtheliabilityassumedbyTenantinSection9.01aboveprovidingcoverageatleastasbroadasISOpolicyformCG0001.SuchinsuranceshallnameTenantasnamedinsuredandLandlordasadditionalinsuredthereunderandshallbeprimaryandnon-contributingwithrespecttoanyinsurancemaintainedbyLandlord.SuchinsuranceshallbeissuedbyaninsurancecompanylicensedbytheStateofWashingtoninsuringTenantandLandlordagainsttossorliabilitycausedbyorconnectedwithoperation,occupationanduseofthePremisesbyTenantunderthisLeaseinamountsnotlessthanthefollowing:(a)$2.000,000.00combinedsinglelimitperoccurrencebybodilyinjury,personalinjury,deathandpropertydamage:andforthosepolicieswithaggregatelimits,a$5,000,000aggregatelimit:and(b)$5,000,000.00fordamagetoordestructionofanyproperty.Section9.03PropertyCasualtyInsurance.Tenantshall,atTenant’sowncostandexpense,atalltimesduringtheTermofthisLease,maintainpropertycasualtyinsuranceforthefullreplacementvalueofallImprovementsagainstlossordestructionbyfireandtheperilscommonlycoveredunderthestandardextendedcoverageendorsementtofireinsurancepoliciesinthecountywherethePremisesarelocated,providingcoverageatleastasbroadasISOpolicyformsCP1030andCP0010.Section9.04ProfessionalLiability,ErrorsandOmissionsCoverage.IntheeventthatservicesdeliveredpursuanttothisLeaseeitherdirectlyorindirectlyinvolveorrequireProfessionalServices,ProfessionalLiability.ErrorsandOmissionscoverageshallbeprovided.“ProfessionalServices”,forthepurposeofthisLeasesection,shallmeananyservicesprovidedbyalicensedprofessionalorthoseservicesthatrequireaprofessionalstandardofcare.ProfessionalLiability,Errors,andOmissions:$2,000,000,PerClaimandintheAggregate.Notwithstandingtheforegoing,ifsuchservicesareprovidedbyorthroughafederallyqualifiedhealthcenterdeemedbytheHealthResourcesandServicesAdministrationtobecoveredbytheFederalTortClaimsAct(“FTCA”)pursuantto2$U.S.C.1346(b),2401(b),and2679-811459925567—15— (a“DeemedEntity”),theDeemedEntitywillnotberequiredtocomplywiththeinsurancerequirementsofthisSection9.04since,undertheFTCA,theDeemedEntityisdeemedtobeanagentofthefederalgovernmentandtheUnitedStatesconsentstobesuedinplaceoftheDeemedEntity’semployeesforanydamagestopropertyorforpersonalinjuryordeathcausedbythenegligenceorwrongfulactoromissionoftheDeemedEntitysemployeesactingwithinthescopeoftheiremployment.See2$U.S.C.Sections2671-2680.AnyDeemedEntityprovidingprofessionalmedical,dental,orotherserviceswithinthescopeoftheFTCAandaspermittedbytheOperatingAgreementshallnotberequiredtoacquireinsuranceforitsprofessionalnegligencethatiscoveredbytheFTCA.Section9.05AutomobileLiabilityInsurance.ServicesOfficeformnumber(CA0001)coveringBUSINESSAUTOCOVERAGE,symbol1“anyauto;ortheappropriatecoverageprovidedbysymbols2,7,8,and9.Tenantshallcarryinsurancecoveragefor$5,000,000.00forbodilyinjuryandpropertydamageunderapolicyofAutomobileLiabilityforuseof“anyauto.”Section9.06Workers’Compensation.Tenantshall,atTenant’sowncostandexpense,atalltimesduringtheTermofthisLease,maintainWorkers’Compensationcoverage,asrequiredbytheIndustrialInsuranceActoftheStateofWashington,aswellasanysimilarcoveragerequiredforthisworkbyapplicablefederalor‘OtherStates”statelaw.TenantwiltcarryWorkers’Compensationperthestatutoryrequirementsofthestateofresidency.Section9.07StopGap/EmployersLiabilityCoverage.CoverageshallbeatleastasbroadastheprotectionprovidedbytheWorkers’CompensationpolicyPart2(EmployersLiability)or,instateswithmonopolisticstatefunds.theprotectionprovidedbythe‘StopGap”endorsementtothegeneralliabilitypolicy.Section9.08WaiverofSubrogation.AnyinsurancecarriedbyeitherpartyasrequiredbythisLeaseshallincludeaclauseorendorsementdenyingtotheinsurerarightofsubrogationagainsttheotherpartytotheextentrightshavebeenwaivedbytheinsuredpriortooccurrenceofaninjuryorloss.Eachparty,notwithstandinganyprovisionsofthisLeasetothecontrary,herebywaivesanyrightsofrecoveryagainsttheotherforinjuryorlossduetohazardscoveredbyinsurancecontainingsuchaclauseorendorsement.ARTICLE10CONDEMNATIONSection10.01TotalCondemnation.LandlordwarrantsandrepresentsthatithasnoknowledgeofacontemplatedorplannedcondemnationofanyportionofthePremises.If.duringtheTermofthisLease,feetitletoallofthePremises,alloftheProject,andtheentireleaseholdestateofTenantistakenunderthepowerofeminentdomainorshouldsomuchofthePremisesbetakenunderthepowerofeminentdomainaswill,inTenant’sreasonabledetermination,preventorsubstantiallyimpairtheuseofthePremisesfortheuseandpurposespermittedhereunder,byanypublicorquasi-publicagencyorentity(a“TotalTaking”).thisLeaseshallterminateasof12:01A.M.onwhicheverofthefollowingoccursfirst:(1)thedatelegaltitlebecomesvestedintheagencyorentityexercisingthepowerofeminentdomain,or(2)thedateactualphysicalpossessionistakenbytheagencyorentityexercisingthepowerofeminentdomain.Thereafter,459925563—16— bothLandlordandTenantshallbereleasedfromallobligationsunderthisLease.Fortheavoidanceofdoubt,ifthisLeaseterminatespursuanttothisSection10.01priortocompletion,thenTenant’sobligationstocompletetheProjectshallautomaticallyterminateandbeofnofurtherforceoreffect.Section10.02PartialTaking.IfatanytimeduringtheTermofthisLeaseatakingoccursthatislessthanaTotalTakingandaffectstheProject,includingareductioninthenumberofparkingspaces,allcompensationanddamagespayableforthattakingshallbeusedtorebuildtheProjectortorestoreremainingportionsoftheProject,providedthatsuchreplacementand/orrestorationisthenpermittedbyexistinglawwithonlysuchmodificationsaswillnotmateriallyreducethevalueoftherestoredProject.ascomparedtothedamagedportionoftheProject.Plansandspecificationsforsuchreplacementsandrestorationmustbecompatible,intermsofarchitectureandqualityofconstruction,withtheportionoftheProjectnottaken.AnymaterialchangestothesiteplanorelevationsoftheremainingorreplacementtheProject.andtheplansandspecificationsforsuchconstruction,mustbefirstapprovedinwritingbyLandlord,whichapprovalwillnotbeunreasonablywithheld,conditionedordelayed.NotwithstandingtheprovisionsofSection14ofthisLease.Landlordagrees,uponTenant’swrittenrequest.toprovidewrittenconfirmationofthefollowing:(a)thateither(i)theplansandspecificationsforthereplacementsandrestorationoftheProjectdonotrequireLandlord’sapproval;or(ii)iftherearematerialchangestothesiteplanorelevationsoftheremainingorreplacementtheProjectthatrequireLandlord’sapprovalthatLandlordapprovestheplansandspecificationsprovidedbyTenanttoLandlordforsuchmaterialchangesor,iftheplansandspecificationsforsuchmaterialchangesarereasonablydisapprovedbyLandlord,adescriptionofthosechangestotheplansandspecificationsrequiredbyLandlordforitsapproval;and(b)thatnootherapprovalsarerequiredofLandlordforTenanttoreplaceand/orrestoretheProjectontheremainingPremises.Section10.03CondemnationAward.AnycompensationordamagesawardedorpayablebecauseofthetakingofalloranyportionofthePremisesbyeminentdomainshallbeallocatedamongLandlordandTenantasfollows:(a)Allcompensationordamages,otherthananyportionofanawarddescribedinSection10.03(b)below,thatareawardedorpayableforthetakingbyeminentdomainofanyportionofthePremises(the“Award”)shallbeallocatedandpaid(i)toLandlordforthevalueofLandlord’sreversionaryinterestinthetakenportionofthePremisesandtheProject,(ii)toTenantinthesameproportionthattheappraisedvalueofTenant’sinterestsintheportionofthePremisesandtheLeasesubjecttothetakingatthetimeoftakingbearstothetotalvalueattributedtotheportionofthePremisessubjecttothetaking,atthetimeoftaking,lesstheamountspaidtoLandlordpursuanttosubsection(1)above;and(iii)toLandlord,thebalanceoftheAward,ifany.Theterm“timeoftaking”asusedinthissubparagraphshallmean12:01A.M.ofwhicheverofthefollowingshallfirstoccur:thedatethattitle,orthedatethatphysicalpossessionoftheportionofthePremisesonwhichtheProjectarelocated,istakenbytheagencyorentityexercisingtheeminentdomainpower.(b)AnyseverancedamagestotheProject,relocationcosts,orreimbursementforpersonalpropertyawardedorpayableifonlyaportionofthePremisesistakenbyeminentdomainshallbedeliveredtoTenantinaccordancewithSection10.02above.1459925567—17— (c)LandlordandTenantshalleachbeentitledtoappearandparticipateinanyproceedingwhichdeterminestheAward.LandlordagreestonotsettleorcompromiseanyAwardwithouttheconsentofTenant.Section10.04VoluntaryConveyanceinLieuofEminentDomain.AvoluntaryconveyancebyLandlordoftitletoalloraportionofitsinterestinthePremisestoapublicorquasi-publicagencyorentityinlieuofandunderthreatbythatagencyorentitytotakeitbyeminentdomainproceedingsshallbeconsideredatakingoftitletoalloraportionofthePremisesunderthepowerofeminentdomain.Section10.05RightsUponTemporaryTaking.If,atanytimeduringtheTerm,thewholeoranypartofthePremises,orofTenant’sleaseholdestatecreatedbythisLease,oroftheProjectistakenincondemnationproceedingsorbyanyrightofeminentdomainfortemporaryuseoroccupancy(a“TemporaryTaking”)theforegoingprovisionsofthisArticle9shallnotapplyandTenantshallcontinuetopay,inthemanneratthetimesspecifiedinthisLease,thefullamountsoftheRentandallotherchargespayablebyTenantunderthisLease,and,excepttotheextentthatTenantmaybepreventedorinhibitedfromsodoingpursuanttothetermsoftheorderofthecondemningauthority,Tenantshallperformandobservealloftheotherterms,covenants.conditionsandobligationsofthisLeaseuponthepartofTenanttobeperformedandobserved,asthoughsuchTemporaryTakinghadnotoccurred.ARTICLE11ASSIGNMENTANDSUBLEASINGSection11.01NoAssignmentWithoutLandlord’sConsent.ExceptasotherwiseprovidedinSectionII.02,TenantmaynotassignthisLeaseoranyinterestinthisLeasewithoutthepriorwrittenconsentofLandlord,whichconsentshallnotbeunreasonablywithheld.SectionII.02Tenant’sRighttoEnterIntoSubleasesandOccupancyAgreements.Exceptasexpresslyprovidedherein,Tenantshallhavenorighttoassign,sublease,orotherwisetransferitsinterestinthePremises.Subjecttotheconditionsbelow,Tenantshallhavetherighttoenterinto,enforcerightsunder,andterminatecertain(1)subleasesofanyportionofthePremises,exceptasspecificallyreservedforLandlord’suseasmoreparticularlydescribedintheOperatingAgreement,(collectively,“Subleases”),and(ii)concessionagreements,licenseagreements,andotheroccupancyagreements(collectively,“OccupancyAgreements”),providedthatanysuchSubleaseorOccupancyAgreementmayonlybeenteredintowithFFCCF,HealthPoint,orothersubtenantswithsimilarpurposeandfunction,andprovidedfurtherthatthefollowingconditionsaremet:(a)AnySubleaseorOccupancyAgreementissubjecttoLandlord’sconsentandwrittenapproval,whichwillnotbeunreasonablywithheld,provided,however,thatitshallnotbeunreasonableforLandlordtowithholdconsentforanyproposedSubleaseorOccupancyAgreementthatisinconsistentwiththeeducationalmissionofLandlordorwouldviolateanypolicyofLandlord:1459925567—18— (b)AnySubleaseorOccupancyAgreementmustbeconsistentwiththePermittedUses;(c)ThetermofanySubleaseorOccupancyAgreementshallnotextendbeyondtheTermofthisLease;and(d)AnyandallSubleasesandOccupancyAgreementsshall(i)beexpresslymadesubjecttoalloftheterms,covenants,andconditionsofthisLeaseandoftheEasements.and(ii)expresslyrequirethatthesubtenantunderthesublease(“Subtenant”)orotherpartyundertheOccupancyAgreement(Occupant”)attorntoandacceptLandlordasthesubtessororotherpartyundertheSublease(s)orOccupancyAgreement(s),asapplicable,intheeventthisLeaseisterminatedandLandlordrequestssuchattornment,inwriting.ARTICLE12DEFAULTANDREMEDIESSection12.01Termination.ShouldanEventofDefaultexist,asdefinedinSection12.02below.Landlordmay,unlessotherwiseprovidedinthisLease,terminatetheLease.NotwithstandinganythingtothecontrarycontainedinthisLease,ifLandlordelectstoterminatethisLeaseinaccordancewiththisSection12.01,TenantshallhavenoliabilityforanyobligationsunderthisLeasewhicharisefromandafterthedateofterminationofthisLease,including,butnotlimitedto,anycontinuingobligationtocompleteconstructionoftheimprovements.Section12.02BreachandDefaultbyTenant.Eachofthefollowingeventsshallbean“EventofDefault”byTenantanda“breach”ofthislease:(a)Failuretoperformanyterm,condition,covenant,orrequirementofthisLeaseoroftheEasements;(b)TheappointmentofareceivertotakepossessionofthePremisesortheProject,orofTenant’sinterestin,to,andunderthisLease,theleaseholdestateorofTenant’soperationsonthePremisesforanyreason,including,withoutlimitation,assignmentforbenefitofcreditorsorvoluntaryorinvoluntarybankruptcyproceedings,whennotreleasedwithinninety(90)days;(c)AnassignmentbyTenantforthebenefitofcreditors;orthevoluntaryfilingbyTenantortheinvoluntaryfilingagainstTenantofapetition.othercourtaction.orsuitunderanylawforthepurposeof(I)adjudicatingTenantabankrupt,(2)extendingtimeforpayment,(3)satisfactionofTenant’sliabilities,or(4)reorganization,dissolution.oraiTangementonaccountof.ortoprevent,bankruptcyorinsolvency;provided,however,thatinthecaseofaninvoluntaryproceeding,ifallconsequentorders,adjudications,custodies,andsupervisionsaredismissed,vacated,orotherwisepermanentlystayedorterminatedwithinninety(90)daysafterthefilingorotherinitialevent,thenTenantshallnotbeindefaultunderthisSection;and(d)ThesubjectionofanyrightorinterestofTenanttoorunderthisLeasetoattachment.execution,orotherlevy,ortoseizureunderlegalprocesswhentheclaimagainstTenantisnotreleasedwithinninety(90)days.1459925567—19— Section12.03NoticeasaPreconditiontoLandlord’sRemedies.AsapreconditiontopursuinganyremedyforanEventofDefaultbyTenant,Landlordshall,beforepursuinganyremedy,(a)wheretheallegeddefaultisafailuretopayanyinstallmentofRentorothersumwhenduepursuanttothisLease,giveTenantaten(10)daywrittennoticeofdefaultandopportunitytocure,specifyinginreasonabledetailtheamountofmoneynotpaidandthenatureandcalculationofeachsuchpayment,or(b)wheretheallegeddefaultisthefailuretoperformorobserveanycovenant,condition,oragreementtobeperformedbyTenantunderthisLease,otherthanafailuretopayrentoranyothersumwhendue.giveTenantathirty(30)daywrittennoticeofdefault,providingdetailsofthedefault,andprovideTenantareasonableopportunitytocure.WheresuchdefaultotherthanthefailuretopayanyinstallmentofRentorothersumcannot,withreasonablediligence,becuredwithinsuchthirty(30)dayperiod,Landlordshallnotpursueanyremedyprovidedcurativeactioniscommencedwithinsuchthirty(30)dayperiodandthereafterpursuedwithduediligencetocompletion.Section12.04WaiverofBreach.ThewaiverbyLandlordofanybreachbyTenantofanyoftheprovisionsofthisLeaseshallnotconstituteacontinuingwaiverorawaiverofanysubsequentbreachbyTenantofeitherthesameoradifferentprovisionofthisLease.Section12.05Landlord’sDefault.LandlordshaltbeindefaultunderthisLeaseifLandlordfailstocureanybreachofitsobligationsunderthisLeasewithinsixty(60)daysafterreceiptofwrittennoticefromTenantspecifyinginreasonabledetailthenatureofLandlord’sbreach;provided,however,thatifthenatureofLandlord’sbreachissuchthatmorethansixty(60)daysarerequiredforperformance.thenLandlordshallnotbeindefaultifLandlordcommencesthecureofsuchbreachwithinsixty(60)daysofthereceiptofsuchnoticefromTenant.ARTICLE13SPECIALPROVISIONSSection13.01QuietEnjoyment.LandlordcovenantsthatTenantshallpeaceablyandquietlyhave,holdandenjoythefullpossessionanduseofthePremisesandtheeasements,rights-of-way,rights,privileges,benefitsandappurtenancesbelongingtheretothroughouttheTerm.Section13.02Title.NotwithstandinganythingtothecontraryinthisLease,theProject,moveablefurniture,furnishings,equipmentandotherpersonalpropertyofTenantoranyoneclaimingthroughTenantlocatedin,onoratthePremisesshall,duringtheTerm,beownedbyandbelongtoTenantorthoseclaimingthroughTenant.Altbenefitsandburdensofownershipoftheforegoing,includingtitle.depreciation.taxcreditsandallothertaxitemsshallbeandremaininTenantorthoseclaimingthroughTenantduringtheTerm.Section13.03HazardousSubstances.(a)Theterm“HazardousSubstance”,asusedinthisLease,meansandincludesall(a)asbestos,radongas,electromagneticwaves.ureaformaldehydefoaminsulationandtransformersorotherequipmentthatcontainsdielectricfluidcontainingpolychiorinatedbiphenyls(“PCBs”)of50ppmorgreater;(b)anysolid,liquid,orgaseouscontaminant,includingacids,alkalis,chemicals,waste,petroleumproductsorbyproducts,asbestos,PCBs,phosphates,leador1459925567—20— otherheavymetals,chlorine,orradongas;(c)anysolidorliquidwastes(includinghazardouswastes),hazardousairpollutants,hazardoussubstances,hazardouschemicalsubstancesandmixtures,toxicsubstances,pollutantsandcontaminants,assuchtermsaredefinedinanyEnvironmentalLaw,andanyandallrulesandregulationspromulgatedunderanyoftheabove;and(d)anyotherchemical,materialorsubstance,theuseorpresenceofwhich,orexposuretotheuseorpresenceofwhich.isprohibitedorregulatedbyanyEnvironmentalLaw.ThetermEnvironmenta1Law,”asusedinthisLease,meansandincludesallexistingandfuturefederal,stateandlocalenvironmentallaws,ordinances,rules,statutes,andregulationsissuedbyanygovernmentalauthoritieswithrespectto,thatotherwisepertainto,orwhichaffectanyportionofthePremisesortheuse,ownership,occupancyoroperationofanyportionofthePremises,including,theModelToxicsControlAct(RCW70.105D,etseq.)anditsimplementingregulations;theNationalEnvironmentalPolicyAct(42U.S.C.§4321,etseq.);theComprehensiveEnvironmentalResponse,CompensationandLiabilityActof1980(42U.S.C.§9601,etseq.).asamendedbytheSuperfundAmendmentsandReauthorizationActof1986(42U.S.C.§9601,etseq.);theHazardousSubstancesTransportationAct(49U.S.C.§1802,etseq.);theResourceConservationandRecoveryAct(42U.S.C.§6901,etseq.);theWaterPollutionControlAct(33U.S.C.§1251,etseq.);theSafeDrinkingWaterAct(42U.S.C.§300f,etseq.);theCleanAirAct(42U.S.C.§7401,etseq.);theCleanWaterAct(33U.S.C.§1321,etseq.);theSolidWasteDisposalAct(42U.S.C.§6901,etseq.);theToxicSubstancesControlAct(15U.S.C.§2601,etseq.):theEmergencyPlanningandCommunityRight-to-KnowActof1986(42U.S.C.§11,001,etseq.);theRadonandIndoorAirQualityResearchAct(42U.S.C.§7401note,etseq.);andtheOccupationalSafetyandHealthAct(29U.S.C.§651,etseq.),assuchlawshavebeenamended,modifiedand/orsupplementedfromtimetotimeaftertheCommencementDate.(b)LANDLORDMAKESNOREPRESENTATIONSORWARRANTIESWITHRESPECTTOTHECONDITIONOFTHEPREMISESORWITHRESPECTTOCOMPLIANCEWITHANYENVIRONMENTALLAW.TENANTACKNOWLEDGESTHATTENANTHASFULLYINSPECTEDTHEPREMISESANDISNOTRELYINGONANYSTATEMENTORREPRESENTATIONMADEBYLANDLORDORLANDLORD’SAGENTSWITHRESPECTTOTHECONDITIONOFTHEPREMISES.(c)Tenantshallnotbringonto,createordisposeof,inoraboutthePremises,anyHazardousSubstancesotherthanasisrequiredfordemolitionoftheExistingImprovementsand/orcustomaryforconstructionandoperationofacomparableprojectanddoneincompliancewithApplicableLaw,andTenantshallnotengageinanyactivitythatviolatesanyEnvironmentalLaws.Tenant,atTenant’ssoleexpense,shallpromptlytakeallinvestigatoryand/orremedialactionreasonablyrequiredororderedbygovernmentalauthoritiesorrequestedbyLandlordforthecleanupofanyHazardousSubstancesin,on,oraboutthePremisesincludingHazardousSubstancescreated,causedormateriallycontributedtobyTenant.Tenantshallprovideallnoticesand/orreportsrequiredpursuanttoanyEnvironmentLawrequiringnoticesand/orreportsbyTenant.TenantshallprovidepromptwrittennoticetoLandlordoftheexistenceand/orreleaseofHazardousSubstancesonthePremisesandallnoticesofviolationofEnvironmentalLawsreceivedbyTenant.(d)NotwithstandinganythingtothecontraryinthisLease,thisLeaseshallnotprohibituse,storageordisposalofdrugs,medicalwasteorequipment.chemicalsorsubstancesusedinconnectionwiththeprovisionofLandlordapprovedmedical,dental,orotherprofessionalservices1459925567—21— solongassuchsubstancesareused,sold,transported,treated,stored,managedanddisposedofbyTenantincompliancewithapplicablelaw,including,butnotlimitedto,applicableEnvironmentalLawandalllaws,regulations,ordinancesandotherbindingauthorityrelatingtotheuse,storage,management,treatment,and/ordisposalofsuchdrugs,medicalwasteorequipment,chemicalsorsubstances.Section13.04AccessRights.InadditiontoallaccessrightsgrantedtoLandlordandLandlord’sagents,representatives,licensees,guests,andinviteesbytheOperatingAgreement,LandlordandLandlord’sagentsandrepresentativesshallbeentitled,fromtimetotime,uponatleasttwo(2)businessdaysadvancewrittennoticetoTenant,togouponandintothePremises(oranyportionthereof)forthepurposesofinspectingthePremises,verifyingtheperformancebyTenantofthetermsandconditionsofthisLeaseand/orshowingthePremisestoprospectivepurchasersorrnortgagees.provided,thatLandlordshallcomplywithandobservepatientandparticipantprivacyrightsandconfidentialityprotectionsasrequiredbylaw.LandlordshallassumenodutyorliabilitywithrespecttothePremisesortheirmaintenancebyreasonofanysuchentryontothePremises.InexercisingitsrightofaccesspursuanttothisSection13.04,LandlordanditsagentsandrepresentativesshallmakereasonableeffortstoavoiddisruptingtheactivitiesofTenantanditssubtenantsonthePremises.Exceptintheeventofanemergency,entryintoanySubtenantoccupiedspaceshallbesubjecttothereasonabletermsandconditionsoftheapplicablesubleaseregardingaccessrights.Inaddition,LandlordwillexercisereasonableprecautionstoaccommodatereasonablerequestsofSubtenantswithrespecttoaccesstoSubtenantsecureareasandtheprotectionofSubtenantconfidentialorproprietyinformation.Section13.05RecaptureRights.(a)AsrequiredbyRCW28A.335.040(1),Landlordshallhavetheright,atanytimeduringtheTerm.toterminatethisLeaseandrecapturethePremisesifLandlordsSchoolBoarddeterminesthatthePremisesisthenrequiredforschoolpurposes(the“Recapture”).Ensuchevent,LandlordshallgiveTenantnotlessthantwenty-four(24)monthsadvancewrittennoticeofthedateonwhichLandlordshallRecapturethePremises(the“RecaptureDate”).Uponone(I)month’swrittenrequestpriortotheRecaptureDatefromTenant,onorbeforetheRecaptureDate,Landlordshallpaya“RecaptureFee”(hereinsocalled)toTenantwhichshallbeequaltoeither(i)iftheRecaptureDateoccttrspriortothetenth(10th)anniversaryoftheCommencementDate,Tenant’sTotalProjectCosts(definedbelow),or(ii)iftheRecaptureDateoccursafterthetenth(10th)anniversaryoftheCommencementDate,thefairmarketvalueoftheleaseholdestatefortheremainderoftheTermatthetimeoftheRecaptureDate,asdeterminedpursuanttotheprocedureoutlinedinSection13.05(b)below.(b)Todeterminethefairmarketvalueoftheleaseholdestate,LandlordandTenantshalleachsimultaneouslysubmittotheother,inasealedenvelope,itsgoodfaithestimateofthefairmarketvalueoftheleaseholdestatefortheremainderoftheTerm(collectivelyreferredtoasthe“Estimates”).IfthehigherofsuchEstimatesisnotmorethan105%ofthelowerofsuchEstimates,thenthefairmarketvalueoftheleaseholdestaterateshallbetheaverageofthetwoEstimates.tfthefairmarketvalueoftheleaseholdestateisnotresolvedbytheexchangeofEstimates,then,withinseven(7)daysaftertheexchangeofEstimates,LandlordandTenantshalleachselectanappraisertodeterminewhichofthetwoEstimatesmostcloselyreflectsthefairmarketvalueoftheleaseholdestateforthefortheremainderoftheTerm.Eachappraiserso145992556.7—22— selectedshallbecertifiedasanMA!appraiserorasanASAappraiserandshallhavehadatleastfive(5)years’experiencewithintheprevious10yearsasarealestateappraiserworkinginKingCounty,Washington,withworkingknowledgeofcurrentratesandpractices.Forpurposeshereof,an“MAI”appraisermeansanindividualwhoholdsanMAIdesignationconferredby,andisanindependentmemberof.theAmericanInstituteofRealEstateAppraisers(oritssuccessororganization,orintheeventthereisnosuccessororganization.theorganizationanddesignationmostsimilar),andan‘ASA”appraisermeansanindividualwhoholdstheSeniorMemberdesignationconferredby,andisanindependentmemberof,theAmericanSocietyofAppraisers(oritssuccessororganization,or,intheeventthereisnosuccessororganization,theorganizationanddesignationmostsimilar).Uponselection,Landlord’sandTenant’sappraisersshallworktogetheringoodfaithtoagreeuponwhichofthetwoEstimatesmostcloselyreflectsthefairmarketvalueoftheleaseholdestatefortheremainderoftheTerm.TheEstimatechosenbysuchappraisersshallbebindingonbothLandlordandTenantastheRecapturefeeasapplicablepursuanttoSection13.05(a)ofthisLease.tfeitherLandlordorTenantfailstoappointanappraiserwithinthe7dayperiodreferredtoabove,theappraiserappointedbytheotherpartyshallbethesoleappraiserforthepurposeshereof.IfthetwoappraiserscannotagreeuponwhichofthetwoEstimatesmostcloselyreflectsthefairmarketvalueoftheleaseholdestatewithin20daysaftertheirappointment,then,within10daysaftertheexpirationofsuch20dayperiod,thetwoappraisersshallselectathirdappraisermeetingtheaforementionedcriteria.Oncethethirdappraiser(i.e.,arbitrator)hasbeenselectedasprovidedforabove,then.assoonthereafteraspracticablebutinanycasewithinfourteen(14)days,thearbitratorshallmaketheirdeterminationofwhichofthetwoEstimatesmostcloselyreflectsthefairmarketvalueoftheleaseholdestateandsuchEstimateshallbebindingonbothLandlordandTenantastheRecaptureFeeasapplicablepursuanttoSection13.05(a)ofthisLease.Ifthearbitratorbelievesthatexpertadvicewouldmateriallyassisthim.thearbitratormayretainoneormorequalifiedpersonstoprovidesuchexpertadvice.ThePartiesshallshareequallyinthecostsofthearbitratorandofanyexpertsretainedbythearbitrator.Anyfeesofanyappraiser,counselorexpertsengageddirectlybyLandlordorTenant,however,shallbebornebythepartyretainingsuchappraiser,counselorexpert.(c)OnorbeforetheRecaptureDate,TenantshallterminateallSubleasesandTenant,allSubtenantsandallSub-SubtenantsshallsurrenderthePremisestoLandlordinaccordancewiththesurrenderprovisioncontainedinSection7.04above,andthisLeaseshallterminate.Asusedherein,theterm“TotalProjectCosts”shallmeantheaggregateall-inclusivesoftandhardcostsandexpensesofanykindandnatureincurredinconnectionwiththedevelopmentofthePremisesandtheconstructionofanyandallimprovementsthereon.Notwithstandinganythingtothecontraryherein,LandlordherebywaivesitsrightofcondemnationoreminentdomaintotheextentpermittedbylawinlieuofitsRecapturerightsasprovidedinthisSection13.05.Section13.06HoldingOver.TenantshallhavenorighttoremaininpossessionofthePremisesaftertheexpirationorearlierterminationofthisLease.IfTenantremainsinpossessionofalloranypartofthePremisesaftertheendoftheTerm,then(i)Tenant’soccupancyofthePremisesshallbedeemedamonth-to-monthtenancy(notarenewalorextensionoftheTerm).terminablebyeitherpartyupon30days’writtennoticetotheother;and(iii)Tenant’soccupancyofthePremisesotherwiseshallbesubjecttoaltapplicabletermsandconditionsofthisLeaseasiftheTermhadnotexpiredorthisLeasehadnotbeenterminated,asthecasemaybe.145992556.7—23— NothinginthisparagraphshallbedeemedorconstruedasaconsentbyLandlordtoanyholdingoverbyTenant.ARTICLE14MISCELLANEOUSSection14.01ForceMajeure.ExceptasotherwiseexpresslyprovidedinthisLease,iftheperformanceofanyactrequiredbythisLeasetobeperformedbyeitherLandlordorTenantispreventedordelayedbyreasonofanyactofGod,strike,lockout,labortrouble,discoveryofunexpectedsubsurfaceconditionsorartifacts,inabilitytosecurematerials,restrictivegovernmentallawsorregulationsoranyothercause(exceptfinancialinability),thetimeforperformanceoftheactwillbeextendedforareasonableperiodequivalenttotheperiodofdelayandperformanceoftheactduringtheperiodofdelaywillbeexcused,providedthat(a)suchconditionisnotthefaultofthePartyrequiredtoperformtheact,and(b)thePartyrequiredtoperformshall,assoonasreasonablypracticableaftertheoccurrenceofsuchevent(i)providenoticetotheotherPartyofthenatureandextentofanysuchForceMajeurecondition,and(ii)usecommerciallyreasonablyeffortstoremoveanysuchcausesandresumeperformanceunderthisAgreementassoonasreasonablypracticable.However,nothingcontainedinthissectionshallexcusetheperformanceofanyactrendereddifficultorimpossiblesolelybecauseofthefinancialconditionofthePartyrequiredtoperformtheact.Section14.02NoticestoLandlord.Exceptasotherwiseexpresslyprovidedbylaw,anyandallnoticesorothercommunicationsrequiredorpermittedbythisLeaseorbylawtobeservedonorgiventoLandlordbyTenantshallbeinwritingandshallbedeemeddulyservedandgivenwhenpersonallydeliveredtoLandlord,or,inlieuofpersonalservice,whensentbyexpressmailorexpeditedcourierthatallowsfortracking,addressedtoLandlordatRentonSchoolDistrict,300SW7thStreet.Renton,Washington98057,directedtotheattentionoftheChiefFinancialOfficer.LandlordmaychangeLandlord’saddressforthepurposeofthissectionbygivingwrittennoticeofthatchangetoTenant.Section14.03NoticestoTenant.Exceptasotherwiseexpresslyprovidedbylaw,anyandallnoticesorothercommunicationsrequiredorpermittedbythisLeaseorbylawtobeservedonorgiventoTenantbyLandlordshallbeinwritingandshallbedeemeddulyservedandgivenwhenpersonallydeliveredtoTenant,or,inlieuofpersonalservice,whensentbyexpressmailthatallowsfortracking,addressedtoTenantatCommunityServicesAdministrator,CityofRenton,1459925567—24— 1055S.GradyWay,Renton,WA,98057.TenantmaychangeitsaddressforthepurposeofthissectionbygivingwrittennoticeofthatchangetoLandlord.Section14.04GoverningLaw.ThisLease,andallmattersrelatingtothisLease,shallbegovernedbythelawsofthestateofWashingtoninforceatthetimeanyneedforinterpretationofthisLeaseoranydecisionorholdingconcerningthisLeasearises.Section14.05BindingonHeirsandSuccessors.ThisLeaseshallbebindingonandshallinuretothebenefitoftheheirs,executors,administrators,successors,andassignsofthepartieshereto.Section14.06TimeofEssence.TimeisexpresslydeclaredtobeoftheessenceofthisLease.Section14.07Severability.Ifanyterm,provisionorcovenantofthisLeaseortheapplicationthereoftoanypartyorcircumstancesshall,toanyextent,beheldinvalidorunenforceable,remainderofthisLease,ortheapplicationofsuchterm,provisionorcovenanttopersonsorcircumstancesotherthanthoseastowhomorwhichitisheldinvalidorunenforceable,shallnotbeaffectedthereby,andeachtermandprovisionofthisLeaseshallbevalidandenforceabletothefullestextentpermittedbylaw;provided,however,thatthePartiesagreetomeetandconfer,ingoodfaith,tonegotiateareplacementprovisionthatisconsistentwiththeintentofthePartiesandtheremainderoftheLease.IfthePartiesfailtoagreeonareplacementprovisionwithinthirty(30)daysoftheprovisionbeingheldinvalidorunenforceable,thisLeaseshallterminate.Section14.08Counterparts.ThisLeasemaybeexecutedinmultiplecounterparts,eachofwhichshallbedeemedtobeanoriginalandallofwhichtogethershallconstituteonedocument.Section14.09Inspection.Landlordherebyreservestheright,atallreasonabletimesandfollowingreasonableadvancenoticetoTenantandcoordinationwithTenant,toenterandtopermitgovernmentalentities,publicorprivateutilitiesandLandlord’sagentstoenteruponthePremisesforthepurposesofthefollowing:(i)inspectingthesame;(ii)inspectingtheperformancebyTenantoftheterms,covenants,agreementsandconditionsofthisLease;(iii)postingandkeepingpostedthereonnoticesofnon-responsibilityforanyconstruction,alterationorrepair;(iv)testing,monitoring,sampling,orotherwork,requiredbyApplicableLawstobeperformedatsuchtime(orpermittingthirdpartiestoperformthesame);(v)performinganyobligationsofTenantthatTenanthasfailedtoperform;and(vi)anyotherreasonpermittedunderthisLease.Section14.10Litigation.ThepartieswillfirstattempttomediateanycontroversyorclaimarisingoutoforrelatingtothisLeasepriortoinitiatinglitigation.Thepartiesshallfirstattempttomutuallyagreeuponamediator.Ifthepartiesareunabletoagree,theneitherpartymaysubmitademandformediationwithJAMS,andthemediatorshallthenbeselectedaccordingtoJAMSsprocedures.Ifthepartiesareunabletoresolvesuchdisputebymediation,theninthatcaseanycontroversyorclaimarisingoutoforrelatingtothisLease,orthebreachthereof.shallbesettledbylitigationinKingCountySuperiorCourt.AllsettlementnegotiationspursuanttothisSection14.11shallremainconfidentialandshallbetreatedascompromiseandsettlement1459925567—25— discussionsforpurposesoftheapplicablerulesofevidence,includingRuleofEvidence40$.Thecourtshallhavethepowertoawardfees,costsandexpenses,aswellasreasonableattorneys’feesandwitnessfees,againstthepartythatlosesonsubstantiallyaltofitsclaim(s)butonlyifthecourtdeterminesthattheproceedingwascommencedoropposedinbadfaithorrecklesslyorwithintenttohinderordelaytheotherpartyfromreceivingthebenefitstowhichitisentitledhereunder.Thepartiesshallotherwisebeartheirownattorneys’fees,witnessfees,costs,andexpenses.Section14.11Subordination.ThisLeaseshallautomaticallybesubjectandsubordinatetoanyfeemortgagenowexistingorhereafterplacedonthePremises.ShouldanyfeelenderrequestthatTenantexecuteanddeliverasubordinationagreement,Tenantshallcomplywiththatrequestwithintwenty(20)daysafterreceivingthesame,solongasthestibordinationagreementprovidesthatsolongasnoEventofDefaultexistsunderthisLease,intheeventofaforeclosureofthefeemortgageorthefeelender’sexerciseofthepowerofsaleundersame,thefeelender(andanysuccessorininteresttothefeelender)shallrecognizeandbeboundbythetermsandconditionsofthisLease,thisLeaseshallcontinueinfullforceandeffect,andTenantshallattorntothefeelenderand/orthepurchaseratanyforeclosuresale,asapplicable.Section14.12EstoppetCertificate.Tenantshall,fromtimetotime,uponwrittenrequestofLandlord,execute,acknowledgeanddelivertoLandlordoritsdesigneeawrittenstatementspecifyingthefollowing,subjecttoanymodificationsnecessarytomakesuchstatementstrueandcomplete:(a)theCommencementDateandExpirationDate;(b)thecurrentRentrate;(c)thatthisLeaseisinfullforceandeffectandhasnotbeenassigned,modified,supplementedoramendedinanyway;(d)thatallconditionsunderthisLeasetobeperformedbyLandlordhavebeensatisfied:(e)thattherearenoexistingclaims,defensesoroffsetsthatTenanthasagainsttheenforcementofthisLeasebyLandlord;and(f)suchotherfactsconcerningthestatusofthisLeaseasLandlordmayreasonablyrequest.AnystatementdeliveredpursuanttothisSection14.13mayberelieduponbyaprospectivepurchaserofLandlord’sinterestinthePremisesorLandlord’sresidualinterestintheImprovements,aprospectivemortgageeofLandlord’sfeeinterestinthePremisesoraprospectiveassigneeofanystichexistingmortgagee.IfTenantfailstorespondwithintwenty(20)daysafterLandlorddeliversitswrittenrequesttoTenantpursuanttothisSection14.13,TenantshallbedeemedtohavegivensuchcertificateasaboveprovidedwithoutmodificationandshaltbedeemedtohaveadmittedtheaccuracyofanyinformationsuppliedbyLandlordtoaprospectivepurchaserormortgagee.Section14.13NoPartnershiporJointVenture.NothinginthisLeaseshallbeconstruedtorenderLandlordinanywayorforanypurposeapartner,jointventurer,orassociateinanyrelationshipwithTenantotherthanthatofLandlordandTenant,norshallthisLeasebeconstruedtoauthorizeeithertoactasagentfortheother.Section14.14MemorandumofGroundLease.AttherequestofeitherParty,thePartiesshallpromptlyexecuteandrecord.atthecostoftherequestingParty,ashortformmemorandumdescribingthePremisesandstatingtheTermofthisLeaseandsuchotherinformationthePartiesagreetoinclude,andsuchotherinformationasnecessarytosatisfytheWashingtonnoticeofleasestatute.LANDLORD’SINITIALS:______TENANT’SINITIALS:115992556.7—26— [NWITNESSWHEREOF,thepartieshaveexecutedthisLeaseasofthedatefirstwrittenabove.RENTONSCHOOLDISTRICTNO.403By:___________________________Name:_______________________________________Its:_________________________________________________‘Landlord”CITYOFRENTONBy:4QName:PcLt!C,-Its:______________________“Tenant”1459925567—27— STATEOFWASHINGTON))ss.COUNTYOFKING)Thisrecordwasacknowledged_________________________asWashingtonmunicipalcorporation.beforemeon___________________,2020,byofthekentonSchoolDistrictNo.403,a(Usethisspacefornotarialstamp/seal)(Signatureofnotarypublic)(Titleofoffice)Mycommissionexpires:—STATEOFWASHINGTON))ss.COUNTYOFKING)ThisrecordwasacknowledgedbeforemeonZ,2020.basyj4j./oftheCityofkenton,apoliticalsubdivisionofWashington.I(Sigureo’fi9rypublic)1,1/(?S’e/e(Titleofoffice)Mycommissionexpires:7(‘12((Usethisspacefornotarialstamp/seal)1459925567-28- EXH[BITACONSTRUCTIONDESIGNMASTERPLAN[is1TAVEr____BIDSETFMLYFIRSTcOMMut1rnCENTERENTONW___0311&20145992556.7—29— ______BIDSEFAMILYFIRSTCOMMUNITYIliNTDWA________fl(182G383/030572-000I103106101alI/23/161459925567—30—IiI’1 383O3O52-OOOI10310610Iall2316EXHIBITB-iDEPICTIONOFPREMISES(ParcelA)1459925567-31- EXHIBITB-2LEGALDESCRIPTIONOFPREMISESALLTHATREALPROPERTYSITUATEDINTHECITYOFSEATTLE,COUNTYOfKING,STATEOFWASHINGTON,DESCRIBEDASFOLLOWS:LOT1OFCITYOFRENTONSHORTFLATFILENO.LUA2O-0U0024,ACCORDINGTOTHEFLATTHEPEOFRECORDEDUNDERKINGCOUNTYRECORDINGNO._____________,KINGCOUNTY,WASHINGTON.1159925567—32— 383/030572-000t03L06l0.aOO28120EXHIBITCNORTHANDWESTPARKINGLOTS1459925567-33- 383030572-00010310610IaO92820EXHIBITCEASTPARKINGLOTANDLICENSEDPARKINGAREA1459925567-34-