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HomeMy WebLinkAboutAdden 04 LAG-84-006 Addendum #4-94 INTERIM SUBLEASE This Interim Sublease, dated3,01\*... 2.1 , 1994, is by and among Plane Space Investments, Inc., a Washington corporation ("Plane Space"); Paul W. Brendle, II and JoAnne Brendle, husband and wife (the "Brendles"), and Puget Sound Industries, Inc., a Washington corporation ("Industries"), jointly and severally, (collectively, "Tenants"). Recitals A. Plane Space is the lessee under Lease Agreement No. LAG 006-84 (the "Lease") dated as of September 1, 1984, between Plane Space and the City of Renton, Washington (the "City"), as lessor, affecting the real property (the "Leasehold Property") described in the Lease, a copy of which is attached as Exhibit A. B. Plane Space and Tenants have entered into a Business Assets Purchase and Sale Agreement (the "Agreement") dated as of 300-- 21 , 1994,by which Plane Space has agreed to assign to Tenants all Plane Space's rights under the Lease and to sell to Tenants the improvements, including trade fixtures, which are owned by Plane Space and which are annexed to the Leasehold Property and the personal property which is subject to the Bill of Sale attached as Exhibit B (collectively, the "Property"). C. The closing for the transaction contemplated in the Agreement has not yet occurred. D. Plane Space has agreed to grant Tenants possession of the Property on the terms of this Interim Lease. -1- ORIG/I Agreement 1. Leased Property. Plane Space hereby subleases the Leasehold Property and leases the Property to Tenants on the terms of this Interim Sublease. Tenants have inspected the Property and accept it in its present condition. 2. Term. (a) The term of this Lease shall be for the period commencing June 15, 1994, and ending on December 31, 1994, unless sooner terminated pursuant to this Interim Sublease or extended in writing by Plane space and Tenants. (b) Notwithstanding any provision to the contrary in this Interim Sublease, this Interim Sublease shall terminate upon the closing of the transaction contemplated in the Agreement, and Tenants shall at such closing remain in possession of the Property under the terms of the Agreement. 3. Rent. (a) As rent for Tenants' use of the Property, Tenants shall reimburse Plane Space during the term of this Interim Lease for the following direct expenses incurred by Plane Space in connection with the Property: (1) all rent payable by Plane Space to the City under the Lease; (2) expenses for utilities provided to the Property; and (3) a pro rata share of taxes and insurance expenses which are obligations of the lessee under the Lease. (b) The City and Plane Space are involved in an arbitration process to determine the rent due under the Lease for the period after June 30, 1993; Tenants' rental obligation under this Interim Lease shall include the obligation to pay the rent due under the Lease for the period of Tenant's possession of the Property which is determined to be due in the arbitration, or in any settlement of the arbitration which is acceptable to the City and Plane Space. Until the arbitration between the City and Plane Space is resolved, Tenants shall reimburse Plane Space -2- LIc Nor Noe for the rent which Plane Space is now paying under the Lease. Upon the resolution of the arbitration, Tenants shall, within thirty days of their written notification of the resolution, pay Plane Space any unpaid rent which is due for the period of Tenants' possession of the Property. No offsets or deductions from rent shall be permitted except where otherwise provided by this Lease. (c) Plane Space shall provide Tenants monthly, and as of the termination date of this Interim Lease, with a written statement setting forth the rent due under this Interim Lease. Tenants shall make payment to Plane Space of the rent due within thirty (30) days of Tenants' receipt of Plane Space's invoice. 4. Possession. Plane Space shall provide Tenants with possession of the Property on the first day of the Lease term. Tenants shall have no rental obligation until such possession is provided. If Tenants are not provided possession within ten (10) days after the first day of the Lease term, Tenants may terminate this Lease, whereupon the parties shall have no further rights or obligations to each other. 5. Lease Provisions Incorporated. Except for the lease term and the rental due under this Interim Sublease, the terms of the Lease are incorporated by this reference, and Tenants shall be bound by the terms of the Lease governing the rights and obligations of the Lessee under the Lease. Tenants shall during the term of this Interim Lease perform all obligations of the Lessee under the Lease, including, but not limited to, the obligations to occupy, maintain and insure the Leasehold Property. 6. Acceptance of Premises. Tenants' taking of possession shall be deemed Tenants' agreement that the Property is then in a rentable and good condition based upon their own inspection and not upon any representation by Plane Space. Plane Space makes no warranty as to the condition of the Property or its adequacy for Tenants' intended use. Plane Space has no obligation to alter, remodel, improve, repair, decorate, or paint any part of the Property �l '1rr► 7. Permitted Use. (a) Without the obtaining prior written consent of Plane Space and the City, Tenants shall use and occupy the Property only for the purposes of installing Tenants' equipment and readying the Property for use by Tenants for the operation of their aviation-related business. Tenants have determined to Tenants' satisfaction that the Property can be used for the purpose for which Tenants have leased it. Plane Space has made no representation regarding the suitability of the Property for any particular use by Tenants. (b) Tenants shall not use the Property in any manner inconsistent with the terms of the Lease or for any unlawful or hazardous act, and shall not commit waste or create any public or private nuisance on the Property. (c) In using the Property, Tenants shall, at all times and at Tenants' sole cost and expense, comply with all applicable federal, state, and local laws and ordinances and with all applicable directions, rules and regulations of state and local health officers, fire marshals, building inspectors or other government authorities. 8. Maintenance. Tenants shall keep the Property in good condition and repair, shall not permit any waste to the Property, and shall promptly restore any component of the Property which may be damaged or destroyed. 9. Insurance. (a) Tenants shall continuously insure all structures and improvements located at the Leasehold Property against loss by fire or other hazards in an amount not less than the fair market value of the structures and improvements, shall name Seller as an additional insured under all liability insurance policies which the lessee is required to maintain under the Lease and under this Agreement, and shall provide Seller with evidence of such insurance. (b) Each insurance policy required under the Lease and this Interim Lease shall provide that both Tenants and Plane Space shall receive a minimum of ten days' prior, written notice of cancellation, termination, modification, or lapse of coverage and shall not contain any provision relieving the insurer of liability for any loss by reason of the existence of other insurance policies covering the Property against the perils involved, regardless of collectibility. 10. Taxes, Assessments, Utilities, and Other Charges. All taxes, assessments, utilities, and other charges applicable to the Property which are the obligation of the Lessee under the Lease shall be prorated between Plane Space and Tenants as of the date of Tenants' taking possession of the Property under this Interim Lease. 11. Entry and Inspection. Tenants shall permit Plane Space to enter upon the Property at all reasonable times for the purposes of inspecting the Property to determine Tenants' compliance with the Lease and making necessary repairs. Plane Space shall also have the right, at any time during the last three months of the Lease term, to showing the Property to a prospective tenant or purchaser and to place and maintain on the Property notices for the leasing or selling of the Property. 12. Assignment and Subletting. Tenants shall not assign, sublease, or mortgage this Interim Sublease, nor any interest in it, without Plane Space's prior written consent and without the prior written consent of the City. Plane Space may in its sole discretion refuse such consent, whether such refusal is reasonable or not. This Interim Sublease shall not be assignable by operation of law and any transfer of this Interim Sublease from Tenants by corporate merger, consolidation, or liquidation, or by any change in the ownership of or power to vote the majority of Tenants' outstanding voting stock shall constitute an assignment for the err v.ro purposes of this paragraph. Any assignment of this Interim Sublease shall not extinguish or diminish Tenants' liability under it. 13. Liens and Insolvency. Tenants shall keep the Property and the improvements thereon free from any liens arising out of any work performed, materials ordered, or obligations incurred by Tenants. If Tenants becomes insolvent, voluntarily or involuntarily bankrupt, or if a receiver, assignee or other liquidating officer is appointed for Tenants' business, Plane Space may, at its option, terminate this Interim Sublease without notice. 14. Default and Re-Entry. (a) If Tenants fail to pay the rent or default in the performance of its obligations under this Interim Sublease, Plane Space shall give written notice of such default. If Tenant fails to cure the default within thirty (30) days, Plane Space may immediately terminate this Lease without further notice to Tenants. Upon termination, Tenants shall surrender the Property to Plane Space and remove all of Tenants' personal property. After termination, Plane Space may remove Tenants from the Property by any lawful means. (b) Upon Tenants' default in the performance of any obligation under this Interim Sublease or the Lease involving the payment of a tax, assessment, or other charge to a government authority or other third party or involving the performance of repairs or maintenance to the Property, Plane Space, on reasonable notice or without notice in the event of an emergency, shall cure the default at Tenants' expense. The amount of that expense, including the related charges and fees, shall be additional rent to be paid on demand. 15. Notices Any notice under this Lease shall be in writing and shall be effective when actually delivered to Tenants, or if mailed, on the third day following deposit of the notice in certified United States Mail, postage prepaid, return receipt requested, directed to the addresses for the parties set forth adjacent -6ORONA - Nov to their signatures below, or to such other addresses for which notice has been provided to the party giving the notice. 16. Successors. All terms, covenants and conditions contained in this Interim Lease shall bind and benefit both Plane Space and Tenants and their respective successors and assigns. 17. Entire Agreement. This Lease constitutes the entire agreement of the parties. This Lease may not be modified or amended except by means of a written document signed by Tenants and Plane Space. 18. General Provisions. (a) Waiver by either party of strict performance of any Lease provision shall not waive or prejudice the party's right otherwise to require strict performance of the same provision or of any other provision. (b) Interest shall accrue at the annual rate of eighteen percent (18%) on all rent and other charges or payments required of Tenants under this Lease which is not paid within thirty (30) days of the due date. (c) Upon expiration or termination of the Lease, Tenants shall promptly surrender the Property and all keys for the Property to Plane Space. IN WITNESS WHEREOF, the parties have signed this Interim Lease: PLANE SPACE INVESTMENTS, INC. ADDRESS: t o3 a. MN2U\riAL u L 50 By: , , .5E7rc-t I= Lk ( \-4 G$t b Its: i ADDRESS: Paul W. Brendle, II 148I,-1 SF 421-,c1 St . lssc dual\ wi:: 98n2rl oQmmQ.q)nemc J nne Brendle PUGET SOUND INDUSTRIES, INC. ' n ADDRESS: COQftV ' &, l 8ILI SF 92nd St . t,y: : i e, • • e isSaupA LOA gZ027 Its: resici er,"l The City of Renton, Washington, hereby consents to the foregoing Interim Lease. CITY OF RENTON, WASHINGTON ADDRESS: By: Earl C ymer 200 Mill Avenue South Its: Ma or Renton, WA 98055 ATTEST Mgrgilir.c—,- , Marilyn J. ' - ersen, City Clerk STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that /e w,e J A'. A0.4 is the individual who personally appeared before me, and said individual acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the trr;cie+..f of Plane Space Investments, ORIG/Nt'J *4100 *SW Inc., to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. seo,,4asoeutIe,., Dated: Z...# . 1 /99Y. •Ss\2'.A; �C44N :�o4 NOTARY a Ado: *.... ed Name: ?o.Ke% riic � .l0 N ARY PUBLIC in and for to 51••• Washington, residing at /h r.e,.'•,t441;s P My appointment expires: .�t/V 96 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that Paul W. Brendle, II, is the individual who personally appeared before me, and said individual acknowledged that he/she signed this instrument as his/her free and voluntary act for the uses and purposes mentioned in the instrument. Dated: -NtV,: - 2\ \Gtcki. , \ C ' ') ri i, \\,/ ,A'c t‘\ 'I, 1447 ------ Printed Name: V--q-Ac-- =q , - NOTARY PUBLIC in and for the State of Washington, residing at ` kVI My appointment expires: Tsai?\("1 _ STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that JoAnne Brendle is the individual who personally appeared before me, and said individual acknowledged -9- Uhitillit: if L that he/she signed this instrument as his/her free and voluntary act for the uses and purposes mentioned in the instrument. Dated: 1 k k '\, � . k\*\. . \ -- Prikted ame: *iN. ` - \k.6" ',5"4i.....d NOTARY PUBLIC in and for the State of Washington, residing at c .(k,,\ My appointment expires: t i�2� .1 STATE OF WASHINGTON ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that ti C.Czis the individual who personally appeared before me, and said individual acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the e' CsNC of Puget Sound Industries, Inc., to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: ;) . c.\ ,\A(1-1. l 1, 46(6) V "4.(-1,___ a Printed Name: \ki c-- \C- ° NOTARY PUBLIC in and for the State of Washington, residing at =; `mN-\ /° �.,,k My appointment expires: 1A ,.,) STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) I certifythat I know or have satisfactory evidence that awl Clymer & Mavllyn I P€4erseh islhe individua who personally appeared before me, and said individuals acknowledged that l e signed this instrument, on oath stated that } `�" authorized to execute the instrument and acknowledged it as the Mayor & GTI Ci.ERx of the city of Renton, -10- 4_ r Mbi , ,>. Nure Ng" Washington, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: juM 21 1994 . co a� P Printed Name. A STE HENS NOTARY PUBLIC in and for the State of Washington, residing at Renr A My appointment expires: /0-19— 97 -11- u; a rrr►' 11110, LAG006-84 LEASE AGREEMENT (CITY OF RENTON TO PLANE SPACE INVESTMENTS, INC. ) THIS INDENTURE OF LEASE executed in triplicate, effective as of September I , 1984 , by and between the CITY OF RENTON, a municipal corporation , hereinafter referred to as Lessor; and PLANE SPACE INVESTMENTS , INC. , A Washington Corporation, hereinafter referred to as Lessee: WITNESSETH: WHEREAS Lessee has negotiated with AERO DYNE Corporation to purchase certain assets and to operate an Aircraft Repair and Maintenance Facility at Renton Municipal Airport (Operator to be BENAIR Aviation , Inc . ) ; and , WHEREAS Lessor has agreed to the transfer of that certain ground lease area related to the Repair and Maintenance Facility from AERO DYNE Corporation to Lessee; and , WHEREAS a ground-space rental rate has been negotiated and approved for a three (3 ) year term, NOW THEREFORE; I . In consideration of the covenants and agreements of the Lessee hereinafter set forth , Lessor does hereby lease and demise unto Lessee the following described unimproved parcels of real estate accepted by the Lessee in their "as is" condition , being located within the confines of the Renton Airport, Renton , King County, Washington, to-wit: See Exhibit "A" Legal Description and Exhibit "B" Lease Map attached hereto and made a part hereof as if fully set forth herein SUBJECT to restrictions and reservations of record and as further set forth herein; TOGETHER with the privilege of Lessee to use the public portion of the airport, including runway and other public facilities provided thereon , on a non-exclusive basis, and subject to such rules and regulations as now exist or may hereafter be promulgated by the Lessor from time to time, and further subject to all such non-discriminatory charges and fees for such use as may be established from time to time by Lessor; on the terms and conditions hereinafter set forth for a period of twenty-two (22) years commencing on the 1st day of SEPTEMBER 1984 and terminating on the 31st day of AUGUST 2006 , subject to the conditions , however , specified in paragraphs 17 and 18 hereinbelow. 2. As rental for the above-described premises during said initial lease term, Lessee shall and will pay unto Lessor a monthly rental of $ 751 .99 computed at the annual rate of $0 . 11 per square -1 - EXHIBIT. A LAG006-84 foot, payable promptly in advance on the first day of each and every month , and as further set forth in paragraph 18 hereinbelow. All such payments shall be made to the Director of Finance, Municipal Building , Renton , Washington 3 . Above-described premises and the structures located thereon are leased to the Lessee for the purpose of construction and operation of aircraft repair, maintenance and storage facilities . Lessee covenants that the premises shall be continuously used for those purposes - during the term of the lease, shall not be allowed to stand vacant or idle, and shall not be used for any other purpose without Lessor 's written consent first having been obtained . Consent of Lessor to other types of activities will not be unreasonably withheld . No advertising matter or signs shall be at any time displayed on the leased premises or the structures thereat without the written approval of Lessor . 4 . The leased premises and all the improvements or structures thereon shall be used and maintained by Lessee in a neat, orderly and sanitary manner; and shall be kept well painted by Lessee in such prevailing color scheme as may be from time to time established and required by Lessor for such Airport so that the leased premises and structures located thereon shall be kept and operated in a reasonable harmony with other structures and color schemes on said Airport. Lessee further covenants to keep and operate the leased premises and all structures , improvements , and activities in conformity with all rules , regulations and laws now or hereafter adopted by Lessor City or the Civil Aeronautics Authority or State Aeronautics Commission , or other duly constituted governmental authority , all at Lessee 's cost and expense. 5 . As further consideration for this Lease, it is stipulated and agreed that at the expiration of the renewed term of this Lease as provided in paragraph 1 herein contained or at any other termination of this Lease , all structures and any and all improvements of any character whatever installed on the leased premises shall be and become the property of the Lessor City and title thereto shall pass and revert to Lessor City at such termination , and none of such improvements now or hereafter placed on the leased premises shall be removed therefrom at any time without Lessor 's written consent . The Lessor shall have the alternative, at its option , to require Lessee to remove any and all improvements and structures from the demised premises and repair any damage caused thereby, at Lessee 's expense . 6 . Lessor shall not be called upon to make any improvements . alteration or repair of any kind upon said premises and Lessee covenants that he will not permit any waste , damage or injury to the premises or improvements , nor to allow the maintenance of any nuisance thereon , nor the use thereof for any illegal purposes or activities , nor for any purpose or operation preventing the maintenance of fire insurance on the said improvements or activities . 7 . Lessee further agrees to pay, in addition to the rentals hereinabove specified and other charges hereinabove defined, all fees and -2- vie �.r LAG006-84 charges now in effect or hereafter levied or established by Lessor City, 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 Lessee 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 or services rendered to said premises . Lessee hereby agrees and covenants to pay unto Lessor that certain Leasehold Excise Tax as established by Chapter 61 , Laws of 1765-76, 2nd EX Session (44th Legislative Session ) which said tax shall be in addition to the stipulated monthly rental and be paid separately to the Director of Finance, City of Renton , at the same time the monthly rental is due. 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 this Lease or the leasehold estate then Lessee agrees and covenants to pay said tax or charge, when due. Such tax or charge shall be in addition to the regular monthly rentals . 8 . Lessee covenants to indemnify and save harmless Lessor City against any and all claims arising from the conduct and management of, or from any work or thing whatsoever done in or about, the demised premises or the improvements or equipment thereof during said Lease term, or arising from any act or negligence of the Lessee or any of its agents , contractors , patrons , customers or employees , or arising from any accident, injury or damage whatsoever, however caused , to any person or persons , or to the property or any person , persons or corporation occurring during said term on , in or about the leased 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 be brought against the Lessor City by reason of any such claim, Lessee, on notice from Lessor , shall resist or defend such action or proceeding forthwith . 9 . It is further agreed that all personal property in said demised premises shall be at the risk of Lessee only and that Lessor or Lessor 's agents shall not be liable for any damage either to personal property, sustained by Lessee or other persons, due to the buildings or said demised premises or any part or appurtenance thereof becoming out of repair . 10 . Lessee covenants and agrees to hold harmless and indemnify the Lessor and its agents against any liability, loss claim or damage from any cause directly or indirectly resulting from Lessee's use or occupancy of the demised premises or of any structures , activities or business placed on or conducted thereat, by Lessee, its agents, assigns , licenses or invitees and Lessee shall keep in full force and effect at all times during this Lease term adequate public liability and property damage insurance , written by a company authorized to do business in the State of Washington , with limits of not less than $300,000/$500,000 and $ 100,000 respectively , and Lessee shall promptly furnish unto Lessor evidence of such insurance by furnishing unto Lessor a copy of each policy of insurance or a certificate thereof evidencing such coverage . Since the Lessee functions as the Financial Backer of its assigned Airport Fixed Base Operator , viz : BENAIR AVIATION, INC . , the Lessor agrees that the required insurance defined in this section of the lease -3- ``""e `_ LAG006-84 shall be provided by BENAIR AVIATION , INC . II . This lease or any part hereof shall not be assigned by Lessee, or by operation of law, or otherwise, nor said premises or any part thereof sublet without the written consent of Lessor endorsed thereon; and in the event such written consent shall be so given , no other subsequent assignment , assignments or subletting, shall be made by such assignee or assignees , or sublessee , without previous consent of Lessor endorsed thereon; and in the event such written consent shall be so given , no other subsequent assignment, assignments or subletting , shall be made by such assignee or assignees , or sublessee, without previous consent of Lessor first had and obtained in writing . It is expressly agreed that if consent is once given by the Lessor to the assignment of this Lease or any interest therein or to the subletting of the whole or any part of said leased premises, then Lessor shall not be barred from afterwards refusing to consent to any further assignment of said Lease or subletting of said leased premises . The Lessor shall not unreasonably withhold its consent . 12. 11 is expressly understood and agreed that Lessor holds andoperates said Airport and the demised premises under and subject to a grant and conveyance thereof to Lessor City 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 County Auditor of said King County , Washington , and recorded in Volume 2668 of Deeds , Page 386; and further that Lessor 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 stipulated and agreed that the Lessee also accepts and will hold and use this Lease and the respective demised premises subject thereto and to all contingencies , risks and eventualities of or arising out of the foregoing , and if this Lease or the period thereof or any terms or provisions thereof be 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 Lease affected thereby, all without any liability on the part of or recourse against the Lessor in favor of Lessee . Nothing in this Lease contained shall operate or be construed to prevent or hinder the future development, improvements or operation of said Renton Airport by Lessor , 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 said Renton Airport . 13 . It is expressly understood and agreed that in case the demised premises shall be deserted or vacated, or if default be made in the payment of the rent or any part thereof as herein specified or if, -4- Noe LAG006-84 without consent of the Lessor, the Lessee shall sell , assign or mortgage this Lease, or if default be made in the performance of any of the covenants and agreements in this Lease contained on the part of the Lessee to be kept and performed , or if Lessee shall fail to comply with any of the statutes , ordinances, rules, orders, regulations and requirements of the Federal , State and City Government, or if Lessee -shall file a - petition for bankruptcy or be adjudicated a bankrupt, or make assignment for the benefit of creditors or take advantage of any insolvency act , the Lessor may, if it so elects, at any time thereafter terminate this Lease and the term hereof , on giving to the Lessee ten ( 10) days notice in writing of the Lessor 's intention so to do. Upon the expiration of said ten ( 10 ) day notice, this Lease and the term hereof together with any and all other rights and options of Lessee herein specified , shall expire and come to an end on the day fixed in such notice, except that Lessee 's obligation and liability for any unpaid rentals or other charges heretofore accrued shall remain unabated . Lessor may thereupon re-enter said premises with or without due process of law, using such force as may be necessary to remove all persons or chattels therefrom, and Lessor shall not be liable for damages by reason of such re-entry or forfeiture . 14 . All terms , conditions and provision of this lease agreement shall be binding upon Lessee , his successors and assigns , if any . 15 . If the whole or any substantial part of the premises hereby leased shall be condemned or taken by any County, State or Federal authority for any purpose, then the term of this Lease shall cease on the part so taken from the day the possession of that part shall be required for any purpose and the rent shall be paid up to that date, and from that day the Lessee or Lessor shall have the right to either cancel this Lease and declare the same null and void , or to continue in the possession of the remainder of the same under the terms herein provided, except that the rent shall be reduced in proportion to the amount of the premises taken for such public purposes . All damages awarded for such taking for any public purpose shall belong to and be the property of the Lessor, 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 . 16 . Any notice required to be given or served in accordance with the provisions of this Lease shall be sufficiently given and served if delivered in writing to a party, or if sent by registered mail , postage prepaid , to the other party 's last known mailing address . 17 . Said rental payments as specified in paragraph 2 hereof shall continue until the first day of SEPTEMBER 1987 . Effective as of said date, and every three (3) years or such greater period of time as may be agreed upon between the parties thereafter , said rental rate as hereinabove specified shall be readjusted by and between the parties to be effective for each three (3 ) year period . Minimum base rental for any -5- err LAG006-84 extended period, that is after SEPTEMBER I , 1987, shall not be less than the aforespecified rental of $751 .99 per month . If, however, the parties are unable to agree upon such adjusted rental for the ensuing three (3) year period , within thirty (30) days prior to the commencement of each such three (3 ) year period, then the parties shall submit the matter of rentals for such ensuing three (3) year period to arbitration . _Lessee shall select one arbitrator and Lessor likewise select one and the two so chosen , if unable to agree within a period of thirty (30) days after such appointment, shall select a third one and the decision of the majority of such arbitrators shall be final and binding upon the parties hereto. The arbitrators shall be experienced real estate appraisers and be knowledgeable in the field of comparable rentals and use charges in King County and shall likewise give due consideration to any change in economic conditions from the preceding rental period . Each party shall pay for and be responsible for the fees and costs charged by the arbitrator selected by him and the fee of the third arbitrator, if any, shall be shared equally between them . Leasehold improvements made by the Lessee shall not be considered as part of the leased premises for the purpose of future adjustments or readjustments of the aforesaid rental rates . The arbitrator shall make the decision in writing, within sixty (60) days after their appointment , unless the time is extended by the agreement of both parties : The readjusted rental in each case, whether determined by arbitration or by agreement of the parties themselves , -hall be effective as of the commencement of such three (3) year rental erms . 18 . Lessee shall quit and surrender the premises at the end of the term in as good a condition as the reasonable use thereof would permit and shall not make any alterations, additions or improvements to the premises without the prior written consent of the Lessor; all 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 Lessee, shall be and remain the property of the Lessor 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 . 19 . Lessee further agrees in addition to the insurance requirements herein set forth , to take out and keep in full force and effect during the full term of this Lease, or any extension or renewal thereof , a policy or policies of fire insurance, together with extended coverage, in standard form, in a company or companies acceptable to and approved by Lessor and in an amount at least equal to the replacement cost of such improvements; such policy or policies shall name the Lessor as an additional insured as its interest may appear , and true copies of such policy or policies or a certificate of insurance evidencing such coverage shall be promptly furnished unto Lessor at all times . Such policy shall not be canceled or voided unless at least ten ( 10) days ' written notice prior thereto has been furnished unto Lessor . -6- lripe • LAG006-84 • 20 . If , without execution of any extension or renewal , Lessee should remain in possession of the premises after expiration or termination of the terms of this Lease, then Lessee shall be deemed to be occupying said premises as a tenant from month to month . All the conditions , terms and provisions of this Lease, insofar as applicable to a month-to-month tenancy, shall likewise be applicable during such period . 21 . It is further covenanted and agreed between the parties hereto that no waiver by Lessor of a breach by Lessee of any covenant, agreement, stipulation or condition of this Lease shall be construed to bea waiver of any succeeding breach of the same covenant, agreement , stipulation or condition or a breach of any other covenant, agreement, stipulation , or condition; also that all covenants, conditions, and agreements herein contained shall extend to and be binding on the heirs, executors, administrators , successors and assigns of the parties hereto. The acceptance by the Lessor of rent after any breach by the Lessee of any covenant or condition by Lessee to be performed or observed shall be construed to be payment for the use and occupation of the demised premises and shall not waive any such breach or any right of forfeiture arising therefrom. _ 22. All notices under this Lease shall be in writing and delivered in person or sent by certified or registered mail unto Lessor at the following address , to-wit: Airport Director Renton Municipal Building Renton , Washington 98055 and in case of any notice unto Lessee, then to the premises leased hereunder , or such address as may hereafter be designated by either party in writing . 23 . In the event that Lessee has fully and faithfully complied with all the terms and conditions of this Lease Agreement, then in such event Lessor grants unto Lessee the right and option to renew or extend this Lease for a further term of ten ( 10) years . The rental for each five ( 5) year period shall be ascertained as set forth in paragraph 17 . Notice of the exercise of such option shall be given by Lessee unto Lessor at least ninety days prior to the expiration of the original term of this Lease , which notice must be in writing; and it is expressly agreed by and between the parties hereto that time is of the essence in the giving of said notice . 24 . Lessee covenants and agrees to not discriminate against any person or class of persons by reason of race, color, creed or national origin in the use of any of its facilities provided for the -7- LAG006-84 public in the Airport . Lessee further agrees to furnish services on a fair, equal and not unjustly discriminatory basis to all users thereof , and to charge fair, reasonable and not unjustly discriminatory basis for each unit of service , provided that Lessee may make reasonable and non-discriminatory discounts , rebates or other similar types of price reductions to volume purchasers . CITY OF RENTON, a Municipal - (2 ' Corporation Lt) jittAV3 Y. capt_Lpt:E-s) y "Mayor S2Ctc / By / City Clerk LESSEE LESSOR Approved as to legal form: .(2?1-44-0-'4""-`? City Attorney • • • Now Niro STATE OF WASHINGTON ) ) ss COUNTY OF KING ) This is to certify that on this 22ND day of OcrooE►2 q 89 before me, the undersigned Notary Public, personally appeared I (bQ24AQA '( S {+►NV0ci4 and /'SAX ,NE. E /40ro•c to me _ known _ to be the duly qualified and acting Mayor and City Clerk respectively, of the City of Renton , Washington , and acknowledged that the executed the above and foregoing instrument for the City of Renton as the free. and voluntary act and deed of said City for the uses and purposes therein set forth , and upon oath stated that such execution of said instrument by them is duly and regularly authorized and that the seal attached thereto is the corporate seal of the City of Renton. Given under my hand and official seal this 2.2.H0 day of Oc-t-oi3ek. 1984 • Q,444Y-)ox,__O Notary Public in and for the State of Washington, residing at Renton • LAG006-84 STATE OF WASHINGTON) ) ss COUNTY OF RING ) THIS is to certify that on this 8th day of October 1984 before me , the undersigned Notary Public , personally appeared Thomas R. Bailey and to me known to be the President of Plane Space Investments, Inc. and he acknowledged to me that he executed the foregoing instrument for said Plane Space Investments, Inc. as -its free and voluntary act and deed , for uses and purposes therein stated , and upon oath stated that such execution of said instrument by him is duly and regularly authorized . GIVEN under my hand an official seal the date last above stated . Notary Public in and for the State of Washington, residing G" 4710 Beach Drive S.W. Seattle, WA 98116 STATE OF WASHINGTON ) ss. COUNTY OF RING ) This is to certify that on this / Z day of October, 1984, before me,_ the undersigned notary public, personally appeared C. Carey Donworth, to me known to be the Secretary of Plane Space Investments, Inc. , and he acknowledged to me that he executed the foregoing instrument for said Plane Space Investments, Inc. , as its free and . voluntary act and deed, for uses and purposes therein stated, and upon oath stated that such execution of said instrument by him is duly and regularly authorized. GIVEN under my hand and official seal the date last above stated. Ca . Notary Public in a for the State f Washington, residing at Ione vow EXHIBIT "A" LAG 1006-84 PLANE SPACE INVESTMENT, INC. BEGINNING at the intersection of the centerline of Shattuck Avenue North with the centerline of Airport Way said point of intersection lying N . 87030 ' 17" W . a distance of 862.23 feet from the centerline intersection of _ Logan AvenueNorthand Airport Way Thence N . 02029143" E . along the northerly extension of the centerline of Shattuck Avenue North a distance of 275 .00 feet; Thence N . 87030 ' 17" W . a distance of 61 .45 feet; Thence N . 02029 ' 43" W . a distance of 25 . 17 feet to the True Point of Beginning ; Thence N . 43048 '05" W . a distance of 84 .35 feet to the P.C. of a tangent curve to the right; Thence northeasterly along a tangent curve to the right, having a radius of 55 .00 feet an arc distance of 76 . 12 feet through a central angle of 79018 '03" to a point of tangency; Thence N . 35029 ' 58" E . a distance of 83 .99 feet; Thence N . 04049 ' 43" W. a distance of 281 .00 feet; Thence N . 85012 ► 15" E . a distance of 19 .00 feet; Thence S . 04049 '43" E . a distance of 22.95 feet; Thence S . 87005 '36" E . a distance of 37 .68 feet; Thence N . 85012 ' 15" E . a distance of 72.92 feet; Thence S . 04041 '30" E . a distance of 79 .71 feet; Thence N . 85018 '30" E . a distance of 32.47 feet; Thence N . 83003124" E . a distance of 29 . 16 feet; Thence S . 02029 '43" W . a distance of 144.59 feet; Thence N . 87030 ' 17" W. a distance of 175 .81 feet to the True Point of Beginning . (Containing an area of 42,936 S .F . TOGETHER WITH: BEGINNING at the intersection of the centerline of Shattuck Ave . North with -1 - 1ar 140 the centerline of Airport Way, said point of intersection lying North 87°30 ' 17" W. a distance of 862.23 feet from the centerline intersection of Logan Avenue North and Airport Way; Thence N . 02029 '43" E . along the northerly extension of the centerline of Shattuck Avenue North a distance of 195.00 feet; Thence N . 87030 ' 17" W . a distance of 30 .00 feet; Thence N . 02029 ' 43" E . a distance of 19.00 feet to the True Point of Beginning ; Thence continuing N . 02°29 '43" E . a distance of 20.00 feet; Thence S . 87°30 ' 17" E . a distance of 78.37 feet; Thence S . 56°54'50" E . a distance of 27 .51 feet; Thence S . 87030 ' 17" E . a distance of 42.32 feet; Thence S . 42011 '53" E . a distance of 158.66 feet; Thence S . 02°29 ' 43" W . a distance of 32.23 feet; Thence N . 87°30 ' 17" W. a distance of 39.89 feet; Thence N . 02°29 '43" E . a distance of 0.59 feet; Thence N . 87°30 ' 17" W . a distance of 10.00 feet; Thence N . 34°47 ' 58" W . a distance of 139.01 feet; Thence N . 56°54 '50" W . a distance of 54.71 feet; THENCE N . 87°30 ' 17" W . a distance of 74.74 feet to the True Point of Beginning . Containing an area of 11 .093 sq . ft . Together with Parking Area "A" containing an area of 10,427 s .f . (Area to be verified by survey) TOTAL LEASED AREA 64,456 S .F . -2-