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HomeMy WebLinkAboutLease RENTON MUNICIP.AT, AIRPORT LEASE (�� INDEX - OUTLINE Subject Page Access, by LeSSee to nonleased area 7 Acquisition, from U.S. 6 Deed, Conditions, Limitations 7 Acts of God 10 Additional Area (Witters lease - Building 5-35) 3 Administration Action to be taken upon nonperformance 15 Invoices 15 Notice 16 Administration Building (5-02) Use of not specific 3 Airport Director Airport closure for major repairs, notice to 10 Alterations, improvements may be authorized by 8 Lessee to comply with rules, regulations of for moving, operating aircraft 6 Airport Perimeter 2 Alterations, improvements - written approval of Director 8 Area, land, leased to Boeing Ex. B Additional (Witters Lease) 3 Changes between Exhibits "A" and "B" 2 Total Ex. B Arbitration, upon nonagreement of rent adjustment 4 Assignment 15 Assigns 15 Buildings Butler type, portable, right to remove 7, 13, 14 Electronics - see Electronics Building Leased Ex. B Removal upon expiration, termination 13,14 Effect of failure to 14 Extension of period for 14 Lessee not responsible for loss by fire, even if negligent 10 Cash Rental Amount, annual, monthly Ex. B Arbitration upon nonagreement for adjustment 4 Readjustment 4 Facilities, Improvements by Lessee not considered in 5 Damage or Destruction Repair or replace 11 Election by Lessee 11 Election by Lessor 11 Election by Lessor not to 11 Rent abatement 11 Deed, from U. S. 6, 7 Default Lessor right to terminate 12 Lessor right to repossess 12 Time within which to remedy 12 Description, legal, of Airport Conflict with Exhibit "A" 4 Electronics Building (5-14) 7 Reservation of title 7 Right to construct 3 Right to remove 7 Exhibits, title, date, purpose Differences between "A" and "B" 2 Facilities Installed by Lessee Not considered in rental readjustment 4 Right to remove 13, 14 Under Lease Ex. B Fees 5 Fire, loss of leased buildings - not recover- able from Lessee 10 Force Majeure 10 Government (Federal) Requirements Exception to Boeing compliance, runways, et al 91 10 Hold Harmless Claims by third parties Lessee in violation of deed from Government 6 Damage or injuries on leased premises 14 For an act or omission to act by Lessee 14 Not for negligence of Lessor 14 -2- t Insurance Damage or destruction 11 Lessee may insure against 11 Payment as interests appear 11 Lessee may require Lessor to restore 11 Use and maintenance not to increase cost of to Lessor 14 Invoices, manner and time of making 15 Land Areas leased by Boeing Ex. B Maintenance, exceptions 9 Law, co.-apliance with G Lease, former terminated 1 Legal description of Airport 2 Licenses, fees, taxes, permits 5 Loss of leased buildings by fire Lessee not responsible 10 Maintenance As consideration additional to cash 8 Closure of Airport for major 10 Laid 9 Exceptions 9 Land, )uildings and facilities Exceptions 110 Loss or damage, unavoidable 10 Exception, fire 10 Methods of to be determined by Lessee 10 Structures 8 Exceptions 8 U. S. Government requirements, 8 Runways, aprons, taxiways, exception 10 Utilities and facilities 8 Exceptions 8 M e t es and Bounds, legal description 2 Nonperformance of Obligation 15 Notice, addresses 16 Perimeter, Airport 2 Permits 5 Building Department, general application 5 -3- f Public Areas and Facilities Maintenance 9 Use by Boeing 2 Use in common Rates, Cash Rental Ex. B Arbitration 4 Readjustment 4 Termination, partial 4 Recapture, repossession by Government 7 Regulations of Lessor - Airport Director 6 Removal of buildings, facilities 13,14 Effect of failure to 14 Extension of period for 14 Rental, cash, annual Ex. B Security for Lessee, Tower area 6 Sublease, upon consent only 15 Successors _ 15 Structures, maintenance, exceptions g Surrender of Premises Condition of premises 13 Exceptions 13 Peaceable 13 Removal of structures 14 Tanks, storage, capacity, cash rental Ex. B Taxes 5 Term 1 Termination ' Lessor right to Area V 13 Lessee retention of right-of-way 13 Ndtice to Lessee i3 Maintenance obligation retained 12 Rates (back-out) , cash rental Ex. B Right to remove buildings and facilities 13,14 Effect of ronremoval 14 Extension of period for 14 Right to terminate, notice 12 of prior Lease 1 Title, reserved in Electronics Building (5-14) 7 -4- t j United States, deed from 6 Use of leased premises, in general l Additional 2,3 Limited 2,6 i Public areas 2 Restrictive 6 Use and maintenance, insurance rates 14 Utilities and Facilities Maintenance, replacement, exceptions g Utilities, services, use in common 5 Witters' Hangar Area Lessee right to 3 Notice 4 Rent to be negotiated 4 i -5- �R77-lo5 L E A S E THE CITY Or RENTON ALvD THE BOEING COMPANY RENTON MtiNICIPAL AIRPORT June It 1965 Renton, Washington RENTON MUNICIPAL AIRPORT LEASE CONTENTS Clause Title Page 1. Term, Use 1 1.1 Term, Use 1 1.2 Public Areas - Use in Common 2 1.3 Specific Use of Land Areas - 2 Additional and Restrictive 12 . Option to Lease Additional Area 3 (Witters Lease) 3. Cash Rental and Termination Rates 4 3.1 Cash Rental and Termination Rates 4 3.2 Rental Rate Readjustment 4 3.3 Arbitration 4 4. Utilities, Services 5 5. Licenses, Fees, Taxes, Permits 5 6. Law, Regulations - Compliance 6 7. Security for Lessee 6 B. Reservations by Lessor 6 9. Reservations by Lessee - Title 7 10. Lessee Access 7 11. Alterations, Improvements 8 12. Maintenance 8 12.1 Structures 8 12 .2 Utilities and Facilities 8 12.3 Land 9 12.4 Force Majeure 10 12.5 Exceptions 10 13. Damage, Destruction 11 14. Default, Repossession 12 15. Termination. Partial, Entire-Rates 12 15.1 Lessee Right to Terminate, in Whole 12 or Part 15.2 Maintenance Obligation Retained 12 15.3 Lessor Right to Terminate Part of Area V.13 15.4 Surrender, Condition - Removal of 13 Structures 16. Hold Harmless 14 17. Assignment, Sublease 15 18. Successors, Assigns 15 19. Administration 15 19.1 Failure to Perform Obligation 15 19.2 Invoices 15 2&6 Notice 16 Y � X, 1 L E A S E Between THE CITY OF RENTON and THE BOEING COMPANY RENTON MUNICIPAL AIRPORT LEASE executed the 1st day of June, 1965, by and between THE CITY OF REIV`TON, a municipal corporation, act- ing by and tizrough the Renton Aviation Board, and at the request of said Board, the City being hereinafter referred to as "Lessor", and THE BOEING COMPANY, a Delaware corpor- ation, hereinafter referred to as "Lessee". 1. TERM, USE 1. 1 Term; Use. In consideration of the covenants and agreements of -"--he Lessee hereinafter set forth and the rentals hereinafter provided to be paid, the Lessor does hereby lease, let and demise unto Lessee, for a period and teem of forty-rive (45) years commencing June 1, 1965, and terminating May 31, 2010, the land areas, buildings and facilities hereinafter described in this clause (and sometimes in this Lease called the "Leased Property") , for the purpose of conducting thereat, in a lawful manner, storage, repair, assembly, modification, testing and main- tenance of airplanes, including the storage, maintenance and use of tools and equipment necessary thereto, and storage and movement of other products of Lessee ' s design and/or manufacture. It is understood that the uses and purposes of the land areas, buildings and facilities leased hereunder, and the use of the Renton Airport air navigation facilities granted to Lessee in clause 1.2, shall include the operation of jet engines and jet aircraft. It is ex- pressly understood and agreed that all land areas, build- ings and facilities demised under this Lease shall, except as specified in clause 1.3, be used by Lessee only for the aforesaid purposes. It is agreed that the Indenture of Page 1 of 17 f Lease entered into by the parties hereto as of the lst day of June 1955, as amended by First, Second, Third, Fourth, Fifth, and Sixth Supplemental Agreements thereto, dated October 1, 1955, August 13 , 1956, February 5, 1957, April 1, 1957, February 1, 1960, and May 15, 1962, respectively, relating to various property, rights and interests now covered by this Lease, is terminated as of the date of commencement of the term of this Lease. The land areas, buildings and facilities leased hereunder , being portions of the Renton Airport situated in the City of Renton, County of King, State of Washington, the various leasehold interests, areas of maintenance re- sponsibility, and the cash rental rates applicable thereto under this Lease are designated on a map marked Exhibit "A" , titled "Renton Municipal Airport", dated June 1, 1965, and a schedule marked Exhibit "B", dated June 1, 1965, both attached to this Lease and by this reference incorporated in this Lease (hereinafter "Exhibit A" and "Exhibit B" ) . The perimeter of the Renton Airport is described by metes and bounds on Exhibit "A", and a typewritten legal descrip- tion of the Renton Airport is set forth on Exhibit "A". In the event of any conflict between this typewritten legal description and the perimeter of Renton Airport described by metes and bounds on Exhibit "A", the latter description shall prevail-. 1.2 Public Areas - Use in Common. In connection with this Lease of specific land areas, buildings and facilities, Lessee shall also have the right to use, in a lawful manner appropriate to the Renton Airport and in common with the public and other users thereof, the air navigation facilities of said Renton Airport, includ- ing landing areas, runways, aprons and taxiways, for the purpose of conducting flights and movements of airplanes and tests in readying airplanes for flight. 1. 3 Specific Use of Land Areas - Additional and Re- strictive. Notwithstanding the stated uses of land areas and buildings leased hereunder in clause 1. 1, it is agreed that use of the following land areas and buildings shall be enlarged or restricted by the following conditions : Page 2 of 17 low Lease Area Item Designation Use 5. Area V For vehicle parking only 6. Area VI and Lessee may construct a build- "Old Road" ing thereon as an additional use 8. Area VIII Western terminus of a Cedar River bridge permitted as an additional use 8. Area VIII No storage permitted without prior consent of Airport Director 10. Area X Lessee may construct an oil storage house as an additional use 21. Oil House Area Lessee may construct an oil storage house as an additional use 23. West Perimeter Lessee may construct a build- Rd. & adjoining ing thereon as an additional areas of Lease use items 18 and 22 24. Administration Use of rooms is not limited Building to purposes specified in clause 1. 1 2. OPTION TO LEASE ADDITIONAL AREA (WITTERS LEASE) Lessee is hereby granted the option and privilege of adding to the land areas, buildings and facilities leased hereunder, that area of approximately 23 , 000 square feet (including a hangar thereon of approximately 10, 000 square feet) presently leased by Lessor to Max J. Witters under lease expiring June 30, 1967, but subject to the following conditions: Page 3 of 17 tape t 2.1 That on or before June 30, 1967, or, in the event of earlier termination of the lease to Max J. Witters the thirtieth (30th) day after Lessor shall have given no- tice to Lessee of such earlier termination, Lessee shall give notice to Lessor of its election to exercise the fore- going option; and 2.2 That such additional area (including the hangar) shall come under this Lease effective as of the date of exercise of such option, at a rental rate then to be agreed upon by the parties. 3. CASH RENTAL AND TERMINATION FATES 3.1 Cash Rental and Termination Rates. The leased land areas, buildings and facilities, cash rental rates applicable thereto, and termination rates for land are in- dicated on Exhibits "A" and "B". In the event of any con- flict between Exhibits "A" and "B", Exhibit "A" shall control. Annual cash rentals payable by Lessee pursuant to Exhibit "B" are payable monthly in advance in twelve (12) equal installments, as provided in clause 19.2 of this Lease. 3.2 Rental Rate Read,ustment. On the first day of June of the years 1970, 1975, 1980, 1985, 1990, 1995, 2000 and 2005, the cash rental rates applicable to the leased land creast buildings and facilities shall be readjusted for application to the ensuing" five (5) year period, if written request for such readjustment is given by. either party to the other at least thirty (30) days before the commencement of such period. 3.3 Arbitration. If the parties cannot agree upon the cash rental rates for such period, they shall submit to have the disputed rental rate for such period adjusted by arbitration. The Lessee shall pick one arbitrator and the Renton Aviation Board one, and the two so chosen shall select a third, and such board of arbitrators, after a Page 4 of 17 Y w *490 1 review of all pertinent facts, may increase or decrease such cash rental rate or continue the previous cash rental rate. Property, buildings, installations, improvements or equipment hereafter constructed, installed or owned by Lessee (except such as have been constructed or installed by Lessee pursuant to its obligations under clause 12 hereof) shall not be considered as part of the Leased Property in the event of any future readjustment of cash rental rates. 4. UTILITIES, SERVICES All utilities, services and charges for the same, such as heat, electricity, water, garbage collection, gas and sewer service furnished to the Leased Property or in- curred in the performance of maintenance, repair or replace- ment activities of Lessee, shall be at the expense of and be the responsibility of Lessee; provided, that where such services are furnished or measured through common meters, such as electricity and water, Lessee' s portion of charges for the same shall be that portion of the actual cost of the total of such services to Lessor which Lessee ' s use thereof bears to the total use, such as may be reasonably calculated or estimated; all such charges to be paid monthly as incurred. 5. LICENSES, TEES, TAXES, PERMITS In addition to rentals and charges provided for in this Lease, it is covenanted and agreed that Lessee shall pay any and all other lawful fees, licenses or charges generally applicable to business operations in the City of Renton now or hereafter in effect, levied or established by Lessor or its Renton Aviation Board or by any govern- mental agency, department or authority, which may become charges against the business, operations or activities at any time conducted on the Leased Property by Lessee. Pro- vided, however, that no fees or permit charges shall be required by Lessor or its Aviation Board for work to be Page 5 of 17 r performed in the discharge of Lessee' s obligation with respect to repair and maintenance under this Lease; and provided, further, that Lessee shall not be obligated to pay any license, fee or tax (other than Renton Business and Occupation license fees and taxes) to the City of Renton or its Renton Aviation Board where such licenser fee or tax is measured or based solely on the exercise of Lessee' s rights of use and occupancy granted or acquired by Lessee under this Lease. 6. LZW, REGULATIONS — COMPLIANCE It is specifically stipulated and agreed that Lessee assumes all burdens of compliance with Ordinances and Reg— ulations of the City of Renton and its Building Department cf general application. All movements and operations of aircraft by Lessee to, on, and from the Leased Property and the Airport shall conform to rules and regulations established by Lessor' s Airport Director. Lessee in its use of the demised premises shall at all times comply with all applicable laws and regulations of all duly constituted governmental authorities. 7. - SECURITY FOR LESSEE Lessor shall provide appropriate signs and police measures to assure adequate security for Lessee' s opera— tions on areas of Apron Extension F and West Compass Rose and Area XII adjoining the Airport Tower Areas shown on Exhibit "A". 8. RESERVATIONS BY LESSOR It is understood and agreed that Lessor holds the Renton Airport under a Deed from the United States of America (hereinafter in this clause 8 "Government") ; reference being had to said Deed as recorded in the Office of the Auditor of King County, Washington, and Page 6 of 17 A that said Deed contains certain conditions, restrictions, limitations of use and reservations of right to the Govern- ment and to the public. Lessee takes this Lease and the Leased Property subject to said conditions, restrictions, limita- tions and rights contained in said Deed or arising -there- from, and shall hold the Lessor harmless from liability or loss by reason of any claim by third parties arising from any alleged violation thereof in the giving of this Lease or in Lessee' s use of the Airport premises, provided Lessee shall be given notice of such claims and opportun- ity to defend such actions at its expense. In the event o any recapture, repossession, or taking of the Renton Airport or any portion thereof by the Government, or any agency thereof, pursuant to its reserved rights or in any ocher manner, or the termination or abridgement in any manner of Lessor' s interest or rights in the Renton Airport premises by the Government or its agency, thereupon this Lease shall automatically terminate without notice as of the time any such recapture, repossession, taking, termin- ation or abridgement of Lessor' s interest or rights by the Government or its agency becomes effective and all rents and other charges paid or payable hereunder shall be ad- justed and prorated between the parties as of such time, and the balance in favor of one party shall be promptly paid to it by the other party. 9. RESERVATIONS BY LESSEE - TITLE The building constructed by Lessee upon the land areas designated as West Perimeter Road together with adjoining areas designated as Apron C and/or Area West of Apron C, shall be deemed to be personal property not affixed to the realty and may be removed by Lessee at the expiration or termination of the Lease to the same extent, and under the same terms and conditions as are specified in clause 15.4 hereof with respect to Butler type structures and portable buildings. 10. LESSEE ACCESS Lessee is hereby granted access for inspection and maintenance purposes to the utilities in the Airport Tower Page 7 of 17 Area, which include, but are not limited to, one pressure- reducing valve station (175 psi to 80 psi) and one air filter and drain pit, such station and pit being approxi- mately 100 feet south of the north boundary, and about 10 feet east of the west boundary of the Airport Tower Area. 11. ALTERATIONS, IMIPROVEMENTS Subject to first obtaining written approval of Lessor 's Airport Director, alterations or improvements of the Leased Property as so mutually agreed upon may be made by Lessee at its own expense. 12. MAINTENANCE As further consideration for this Lease and for the use of Renton Airport granted in clause 1.2 (being in addi- tion to cash rentals stipulated in clause 3) , Lessee shall at its own cost and expense be responsible for and perform maintenance, repair and/or replacement' of, or make improve- ments to, the following portions of the Renton Airport, (which responsibilities Lessee likewise assumes for the period June 1, 1955 to May 31, 1965) , with the limitations and exceptions set forth below, to-wit: 12. 1 Structures. Lessee shall perform maintenance, repair and upkeep on the buildings, structures, and rooms therein, which are leased by it under this Lease, so that same are- at all times in good condition substantially equal to their condition as at June 1, 1955, except for ordinary wear ; excepting, however, the roof, exterior walls, foundations, and structural portions thereof. Lessee shall not be re- sponsible for maintenance, repair or upkeep of buildings or rooms therein which are not leased by it under this Lease. 12.2 Utilities and Facilities. Lessee shall perform maintenance, upkeep, repair and replacement of utilities and facilities such as exist upon and in all land areas of the Renton Airport in its entirety within the perimeter thereof described in Exhibit "A", excepting those areas at any time held under lease by other tenants and excepting other Page 8 of 17 areas designated on Exhibit "A" as "areas leased and/or maintained by others" ; also Lessee shall perform such maintenance, repair and replacement of utilities and facil- ities within the buildings leased by it, but not within other buildings, rooms, or gasoline facilities which are not leased by it under this Lease; ail to such extent that the same are maintained and kept at all times in as good and efficient operating condition, as at June 1, 1955, except for ordinary wear ; such work to be performed in accordance with applicable requirements of any cogni- zant U. S. Governmental agency (hereinafter in this clause i2 "Agency") . Included in such utilities and facil- ities, without limitation hereby, are electric power lines, lights, conduits, transformers with appurtenances, runway markers, obstruction lights, rotating beacon with its controls, water and sewer systems and drainage systems; also, any communication systems, i. e. , radio, electronics gear and equipment installed by Lessee, but excluding _ communication systems of Lessor. Known utilities which Lessee is obligated to maintain under this clause 12. 2 are identified on Exhibits "A-i", "A-2 ", and "A-3 ", drawn 4-26-65 which by this reference are incorporated within this '.,ease and are made a part hereof. 12. 3 Lane. Lessee shall perform maintenance, upkeep, _ repair and/or replacement of all land areas of the Renton Airport in its entirety within the perimeter thereof de- scribed in Exhibit "A" ; excepting such areas as are at any time held under lease by other tenants and excepting the seaplane ramp and adjacent park area, which excepted areas are designated on Exhibit "A" as "areas leased and/or maintained by others ". In respect to field areas, parking areas, lawns, decorative areas, and roadways, the mainte- nance and upkeep thereof shall include cutting of grass and weeds, watering and maintaining drainage and surfaces , so as to keep same in normal, clean, sanitary and serviceable condition as heretofore maintained and used. In respect to airplane runways, taxiways and aprons, the maintenance, upkeep, repair and/or replacement or reconstruction thereof hereunder shall be such that the same are at all times kept in good and serviceable operating condition as required for use thereof by heavy aircraft of the types placed, moved or operated on said Airport by Lessee, and so that the same at all times conform to any applicable requirements of the cognizant Agency, other than such Agency requirements Page 9 of 17 a as to increasing length, width and thickness of existing runways, taxiways and aprons. she methods of accomplish- ing such repairs and/or -replacements hereunder shall be determined by Lessee, subject to compliance with any applicable specifications and requirements of such Agency and with the end-result requirements hereof. Any major repair or replacement of a runway or taxiway which will necessitate closing down of the airfield or of such runway or taxiway shall not be commenced by Lessee without first giving notice to Lessor ' s Airport Director (which notice except in immediate emergency shall be ten (10) days' written notice of the date when such work will be commenced) and making mutually satisfactory arrangements with such Airport Director (and through him with such Agency when required) as to the period and extent of such closure of the Airport or portions thereof. 12.4 Force Naie ure. Lessee shall not be responsible for repair or replacement in the case of damage resulting from act of God or of the public enemy, fires, f]cnds, or other unavoidable casualties beyond control of Lessee. In respect to buildings occupied in whole or in part by Lessee, Lessee shall not be responsible for loss or damage to such buildings from fire even though the fire results from the negligence of Lessee, its agents or employees. 12.5 Exceptions. Notwithstanding any other provisions of this Lease, Lessee shall be relieved of all responsibil- ity for maintenance, upkeep, repair and replacement of the following: 12.5.1 That portion of the West Perimeter Road lying between the north end of the Oil House Area and the north end of Area XII. 12.5.2 The Airport Tower Area shown on Exhibit ..A 12.5.3 That portion of the Renton Airport lying west of the southerly ten (10) feet of Area XII. 12.5.4 The Discontinued Control Tower. Page 10 of 17 13. DAMAGE., DESTRliCTION In the event of damage to or destruction of the Teased Property or structures, or of other essential facilities or portions of the Renton Airport, rendering the Leased Property untenantable or unsuitable for use for Lessee ' s purposes, occurring from a cause by reason of which Lessee is not obligated to repair or replace the same, then: 13.1 Lessor may elect to repair or replace -the same, in which event the. work shall be prosecuted with reasonable diligence. 13.2 Lessor may elect not to repair or replace the same, in which event Lessee at its election may exercise its rights of partial or entire termination of this Lease as provided in clause 15, as of date of such damage or destruction; or Lessee may at its election and at its own cost and expense accomplish the repairs and/or re- placements; provided, that Lessee may at its expense insure any of the Leased Property or structures, or such other essential facilities or portions of the Renton Air- port, against such risks ani; in such amounts as Lessee shall determine, with loss payable to Lessor and Lessee as their respective interests may appear; provided, fur- ther, that Lessee, upon written notice to Lessor, may require that any and all amounts paid to Lessor pursuant to such insurance be turned over to Lessee to be used for the purpose of repairing, restoring, or otherwise improv- ing the :,eased Property, structures, or other essential facilities or portions of the Renton Airport so damaged or destroyed. 13:3 If either Lessor or Lessee elects to repair or replace the same and if such damaged or destroyed property or structures are subject to rental charge under clause 3 of this Lease, then the rental payable thereunder shall abate proportionately to the area thus rendered untenant- able, for such period as the same is untenantable. Page '11 of 17 14. DEFAULT, REPOSSESSION Time is of the essence of this Agreement. If Lessee defaults in the making of any payments falling due here- under promptly when duet or in the timely performance of any covenant, condition or undertaking to be performed by Lessee hereunder, then in addition to any other rights and remedies available to Lessor, and without prejudice thereto, Lessor may give Lessee written notice sent by registered mail of its intention to terminate this Lease, together with the reason therefor and if the default be not remedied prior to the expiration of twenty (20) days, or if the de- fault requires more than twenty (20) days to remedy, upon the expiration of the reasonable time required to cure such default Lessor may promptly thereupon enter and repossess the Leased Property and remove all persons and things there- from. 15. TERMINATION. PARTIAL, ENTIRE-RA^1ES 15.1 Lessee Right to Terminate, in Whole or Part. Lessee shall have the right to terminate this Lease in its entirety, or as to any building or portion of the land areas, as of the end of any month by giving Lessor thirty (30) days' written notice of such termination. 15 .2 Maintenance Obligation Retained. Ia the event of any partial termination releasing any leased land area from this Leaser the total rental stipulated in clause 3 of this Lease for land areas shall be reduced in an amount determined by multiplying the square feet of area released by the per square foot termination rate applicable to the area released. In the event of any partial termination re- leasing any building, or a portion of the Administration Building, from this Lease, the rentals thereof shall be reduced proportionately on the basis of the rental -rates stipulated in clause 3 . of this Lease for such buildings, respectively; provided, however, that any partial termin- ation of this Leaser or the release of any land areas, building or facility from this Lease, shall not in any Page 12 of 17 manner or respect or to any extent affect, modify or re- lease the provisions and obligations of clause 12 of this Lease for maintenance, repair and/or replacement by Lessee of portions of the Renton Airport as therein stipulated; but all the provisions and obligations of said clause 12 of this Lease shall nevertheless remain in full force and effect notwithstanding any such partial termination ar release of areas from this Lease, other than full termin- ation of this entire Lease; the provisions and obligations of said clause 12 remaining effective also in respect to any land areas, embraced therein, even though such land areas or portions thereof be released from this Lease by such partial termination, except when same be held under lease by another tenant. 15.3 Lessor Right to Terminate Part of Area V. In the evert that Lessor shall desire to construct buildings, or have buildings constructed, on that part of the land area designated Area V having a depth of 90 feet northerly from Airport Way, Lessor may terminate this Lease as to such part effective upon the lst day of January or July of ' any year of the term„ of this Lease upon giving notice thereof to Lessee not less than, six (6) months prior to the intended termination date; provided, that in the event of such termination as to suQh part, Lessee shall have a non-exclusive right-of-way over and upon the north- erly thirty (30) feet of such part for access to the park- ing area in the part of Area V not so terminated, such right-of-way to continue so long as any such part of Area V shall remain under this Lease. 15.4 Surrender Condition — Removal of Structures. At the expiration or termination of this i,easo, or upon the termination and release of any land area, bailding, rooms or facility 'from the operation of this Lease, Lessee shall peaceably surrender the Leased Property in as good state or condition as the same were in at the commencement of Lessee's possession thereof, except for ordinary wear and damage by fire or other unavoidable casualties beyond Lessee's control; and the other portions of the Renton Airport to which Lessee's responsibilities for maintenance, Page 13 of 17 repair and/or replacement under clause 12 of this Lease are applicable shall at the expiration or termination of this Lease be in, or shall then be placed by Lessee in, such state or condition of maintenance and repair as is required of the Lessee by the provisions of said clause 12 of this Lease, excepting however damage resulting from act of God or of the public enemy, fires, floods, or other unavoidable casualties beyond the control of Lessee, and excepting ordinary wear and tear that is not incumbent upon Lessee to repair or replace under the provisions of said clause 12 of this Lease. Lessee shall not be respon- sible to Lessor for loss or damage to buildings and facil- ities of which the Leased Property constitute a part nor for loss or damage to other property of Lessor situated in said buildings and facilities, where such loss or damage results from fire, whether caused by the negligence of the Lessee, its agents or employees, or otherwise; however, Lessee agrees that its use and maintenance of such build- ings and facilities will be- such as not to increase the present rate of insurance thereon. Lessee shall, upon expiration or termination of this Lease, have the right but not the obligation to remove any and all Butler type structuress portable buildings, trade fixtures, or equip- ment placed on the property by it; and in event of such -removal Lessee shall restore the Leased Property to sub- stantially the same condition it was in at the time Lessee took possession thereof. Any of such structures, buildings, fixtures and equipment, or parts thereof, which shall not have been removed from the Leased Property within ninety (90) days after such termination or expiration shall become the property 'of Lessor; provided, however, that Lessee, by written notice given by it to Lessor before expiration of such ninety-day period, may extend such period for an additional ninety days. 16. HOLD HARMLESS It is further understood and agreed as part of this Lease that Lessee will save Lessor harmless from any damage or injury caused to the person or property of any person on Page 14 of 17 1 •- J the Leased Property or by any act or omission to act of any agent, employee or customer of Lessee on or about the Renton Airport on which the property herein covered by this Lease is located; provided, however, that Lessee shall not, under any circumstances, indemnify or hold harmless Lessor if said damage or injury is caused in whole or in part by the negligence of Lessor, its officers, agents or employees. 17. ASSIGN.NMNT, SUBLEASE This Lease shall not be assigned, nor any portion of the demised premises be sublet, by the Lessee nor by oper- ation of law in any manner, without Lessor ' s written con- sent first obtained. 18. SUCCESSORS, ASSIGNS All the terms, conditions and provisions of this Agree- ment shall be binding upon the parties, their successors and assigns, if any. 19. ADMINISTRATION 19.1 Failure to Perform Obligation. Whenever one party, being of the opinion that the other party has failed properly to perform one of its obligations-with respect to the maintenance, repair and/or replacement of any property leased hereunder, shall so advise such other party in writ- ing, submitting therewith a summary of the evidence, if any, supporting such opinion, such other party shall within sixty days thereafter reply in writing setting forth its position with respect thereto, together with a summary of the evidence, if any, supporting such position. 19.2 Invoices. Lessor shall, on or before the first day of each month prepare and furnish to Lessee aninvoice setting forth the monthly rent due for (1) land, (2) build- ings, and (3) facilities, with the total cash rental due Page 15 of 17 for the month, together with a statement of proper charges for utilities, if any, for the preceding month. Lessee will pay the rent due and proper charges for utilities, if any, within ten (10) days of the receipt of such invoice. 20. NOTICE Any notice for which provision is made in this Lease shall be deemed delivered if deposited in the United States mail, postage prepaid, addressed to Lessor c/o City Clerk, City Hall, Renton, Washington, or to Lessee at its offices at 7755 East Marginal Way, Seattle, Washington. IN WITNESS WHLREOF, the parties hereto have caused this Lease to be executed in duplicate originals as of and effective June 1, 1965. LESSOR: CITY OF RENTON, a Municipal Corporation of Washington ATTEST: By ri MAYOR LESSEE: THE BOEING COMPANY, a Delaware Corporation r ATTEST: By It6 Director of-Vi ities Page 16 of 17 STATE OF WASHINGTON ) ss COUN'T'Y OF K I N G ) On this Z � day of 196®,r before met the undersigned, a Notary Paalic in and for the State of Wash- ington, duly commissioned and sworn, personally appeared 7/ and to me known to be the Mayor and City Clerk, respectively, o the CITY OF R NTONt the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corpora- tion, for the uses and purposes therein mentioned, and on oath stated that they were authorized to execute the said instrument, and that the seal affixed is the corporate seal of said corporation. GIVE�� UNDER MY HAND AND OFFICIAL SEAL the day and year first above written. Nvftary Public in and for the State of Washington, residing STAT: OF WASHINGTON ) ss COUNTY 02 N I N G ) On this c.2/ Stday of 196tr, before me, the undersigned, a Notary Public in and for the State of Wash- ington dul20 co missioned and sw , ersonally appeared and ._ r to me nown to e the and respective " of THE BOEING COMPANY, the corpor tion that executed the foregoing instrument, and acknowledged the said instrument to be the free and volun- tary act and deed of said corporation, for the uses and pur- poses therein mentioned, and on oath stated that they were authorized to execute the said instrument, and that the seal affixed is the corporate seal of said corporation. GIVEN UNDER MY HAND AND OFFICIAL SEAL the day and year first above written. Notary Publ ' in and for t e of W 't-to Washing nt residing a _ Page 17 of 17 w' EXHIBIT "B" Lease between the City of Renton and The Boeing Compal Renton Municipal Airport A. Land Termination Complete Size in Rate Per Termination Item Area Designation Sq. Ft. Sq. Ft. Amount $ 1 • I 16,914 .003787 $ 64.05 2. II 5,428 .003737 20.56 3. III 17,530 .003787 66.39 4. IV 55,812 .003787 211 .35 Old Road 31 ,U-83 .003787 120.74 5. V 75,689 .019671 1 ,488.87 6. VI 57,794 .019671 1 , 136.86 7. VII 30,646 .003787 116.06 3. VIII 21 ,O63 .003737 79.77 I 9. No Area 10. X (unimproved portion) 5, 103 .019671 100.38 X (improved portion) 7,253 .029507 214,00 11 . XI 11 ,458 .019671 . 225.39 12. XII 22,0.56 .0119671 433.85 XII "G" 25,374 .029507 748.70 XII "H" 15,932 .029507 470. 10 13. Fuel Truck Parking Apron 22,326 .021117 471 ,45 Including Misc. Bldg. & Structures (improved portion) Including Misc. Bldg. and 30,544 .003787 115.67 Structures (unimproved portion) • 14. Apron "A" including Compass Rose 227,941 .021117 4,813.42 and Approach (improved portion) Compass Rose (unsurfaced portion)' 207,969 .003787 787.57 15. Apron Extension "D" 7,983 .003787 30.23 16. Apron "B" 98,449 .021117 2,078.94 17. Apron Extension "E" 36,416 .021117 769.00 18. Apron "C" (improved portion) 139,262 .021117 2,940.80 Apron "C" (unimproved portion) 86, 195 .003787 326.42 Page 1 of 2 Termination Complete Size in Rate Per Termination Item Area Designation Sq• Ft• Sq. Ft, Amount $ 19, Apron Extension "F" (improved portion) 23,600 .021117 498.35 Apron Extension "F" (unimproved) 55,902 .003787 211 .70 20. West Compass Rose (improved) 45,718 .0,21117 965.42 West Compass Rose (unimproved) 71 , 121 .003787 269.34 21 . Oil House Area 4,789 .019671 94.20 22. Area West of Apron "C" 45,867 .003787 173,70 23. West Perimeter Road 8,600 .029507 253.76 TOTAL LAND AREA 1 ,512,617 TOTAL ANNUAL CASH RENT FOR LAND $20,297•.04 i 1/12 ANNUAL CASH RENT (MONTHLY INSTALLMENT) $ 1 ,691 .42 B. Buildinqs 24. Administration 6,203.08 25. Triple "X" Hangar on Area West of Apron "C" 933.24 C. Facilities 26. Two 12,000 Gallon Underground Fuel . 690.00 Storage Tanks TOTAL ANNUAL CASH RENT FOR BUILDINGS AND FACILITIES 7,876.32 1/12 ANNUAL CASH RENT (MONTHLY INSTALLMENT) 656.36 TOTAL ANNUAL CASH RENT LAND, BUILDINGS AND FACILITIES 28, 173.36 1/12 TOTAL ANNUAL CASH RENT (MONTHLY INSTALLMENT) 2,347.78 DATED: June 1 , 1965 Page 2of2