HomeMy WebLinkAboutPocketiNet Communications Inc - Office - Land LeaseAIRPORT LEASE AGREEMENT WITH
•OCKETINET COMMUNICATIONS, IN4
THIS LEASE, executed this 1st day of September, 2012, between the YAKIMA AIR
TERMINAL — McALLISTER FIELD, an agency of the City of Yakima and County of
Yakima, Washington, hereinafter referred to as "LESSOR," and PocketiNet
Communications, Inc., hereinafter referred to as "LESSEE."
W I T N E S S E T H:
WHEREAS, LESSOR operates the Yakima Air Terminal (YAT) - McAllister Field, under
the authority granted by the Joint Operations Agreement (JOA) signed by the City and
County of Yakima, Washington on July 1, 1982; and,
WHEREAS, LESSOR has approved property available for lease as provided by this
Lease and LESSEE desires to occupy and use such property in accordance with this
Lease,
NOW THEREFORE, in consideration of the mutual promises contained herein and the
benefit to be derived by each party, the parties agree as follows:
LESSOR does hereby lease and let unto LESSEE, and LESSEE does hereby
lease and take from LESSOR, approximately 4,350 square feet of covered space
(3,214 sq ft "garage" and 1,136 sq ft "office) and the property on which this
building is located including the vehicle parking lot on the south side of the
building land in the City of Yakima, Yakima County, Washington, as that property
is depicted on the drawing marked Exhibit "A" and furthermore known as 2400
West Washington Avenue, Yakima, Washington 98903, attached hereto and by
this reference made a part hereof, together with the right of ingress to and egress
from the leased premises and the public use areas/facilities used in connection
therewith, over designated Airport property and roadways, subject to rules and
regulations governing the use of the Airport and as the same may be
promulgated by LESSOR from time to time.
2. TERM: The tenancy created by this Agreement shall commence September 1,
2012, and terminate August 31, 2015, unless otherwise terminated as provided
for herein.
LESSEE shall have the option to extend the term by three (3) one (1) year
periods, to wit, September 1, 2015, through August 31, 2016, and so forth
provided LESSEE delivers to LESSOR not less than ninety calendar days (90
days) before the expiration of the original term or previously executed option
written notification of its intent to extend the term.
3. RENT: q-1-1 3 .t 1X
A. September 1 2012 through, August 31 2013: LESSEE promises and
agrees to pay rent to LESSOR at the rate of One Thousand Five Hundred Dollars
and No Cents per month for the leased premises, made on or before the 10th
day of each month in which such payment is due. Payments shall be made to the
Yakima Air Terminal - McAllister Field in care of the Airport Manager's office.
Any rental payment past due shall accrue a delinquency charge of eighteen
percent (18 %) per annum, levied monthly.
B. September 1 2013: Effective this date, the monthly lease payment shall
be increased by three percent (3.0 %) as a set lease rate increase. The lease rate
shall increase by 3% each year thereafter, i.e. September 1, 2014 and
2015/241612017 if so executed.
C. All rates set above are rental rates of property only and do not include any
taxes of any sort. All applicable taxes shall be paid by LESSEE and will be
computed on the lease rate in effect at that time. (See paragraph 6. below)
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Upon execution of this lease by both parties, LESSEE shall deposit with
LESSOR the amount of one month's rent plus leasehold tax as a guarantee of
LESSEE's performance of this Lease and the timely payment of the rental
provided for herein, and in the event LESSEE shall fail to pay the rental as
provided herein, or otherwise breach this Lease, then the Airport Manager may
apply such deposit, or any part thereof as may be necessary, to the payment of
rental or to the payment of damages for such breach or pursue any other
remedies provided herein. If the deposit funds are applied to care a default,
those applied funds must be replenished within three (3) days regardless of the
reason for the default. The deposit amount required may be adjusted from time to
time to reflect adjustments in the rent and /or leasehold tax.
5. TAXES AND LIENS:
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In addition to the rent payable above, LESSEE promises and agrees to pay, as
the same become due and payable, all licenses, fees and taxes, including but not
limited to the leasehold excise, required to be paid by LESSEE by reason of this
Lease and by reason of LESSEE's use and occupancy of the leased premises
and by reason of LESSEE's construction or ownership of improvements to the
leased premises. LESSEE shall neither suffer nor permit the attachment of any
lien or other encumbrance on the leased premises by reason of LESSEE's
occupancy thereof. LESSEE agrees to indemnify LESSOR and shall hold
LESSOR harmless from any such taxes and liens.
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LESSEE agrees to use the leased premises only for its business activity only or
for any other use that is approved by the LESSOR and is allowed by the Master
Plan and the zoning of the property by the appropriate jurisdiction.
7. UTILITIES:
LESSEE shall be responsible for all utility services including, but not limited to,
power, natural gas, sewer, and garbage. All communications, i.e. telephone,
computer network support, etc remains the responsibility of Lessee, and Lessee
is free to install any system and/or type of service it desires in the furtherance of
its business.
LESSEE agrees to keep and maintain the premises in a condition at least as
good as the condition of the premises at the beginning of LESSEE's occupancy,
normal wear and tear excluded. LESSEE further agrees that LESSEE shall be
responsible to maintain all leased areas, buildings, trade fixtures and other
improvements, existing and future, in an attractive and usable manner as
determined by the Airport Manager and consistent with other properties at the
Airport. Maintenance shall include, but not be limited to garbage and debris
removal, and snow removal. Outside landscaping maintenance shall be
appropriately and regularly accomplished by the Lessor on Lessor's schedule.
PocketiNet is responsible for the "ordinary and customary maintenance" to keep
the property essentially "in present condition". Replacement of major
components, such as roof, water pump, electric garage door and/or motor,
HVAC, etc will be at airport's expense. However, if airport does not want to take
on a one-time expense greater than $1,500 for such replacement of components,
the agreement may be terminated by either party upon 60-days notice to the
other. "Ordinary and customary maintenance" is further defined to include
painting, carpet replacement, minor repairs, HVAC and roof repairs not
exceeding $250/occurrence or $1,500 per year,
9. SIGNS:
LESSEE, at LESSEE's own expense, may erect sign(s) of a type, number and
location suitable to LESSOR. No signs or other advertising matter or devices
shall be used or displayed in or about the leased premises or upon any portion of
the Airport without the prior written approval of the Airport Manager, which
approval shall not be unreasonably withheld.
10. IMPROVEMENTS:
All buildings, trade fixtures and other improvements to the leased property by
LESSEE shall conform to applicable rules, regulations and codes, and LESSEE
shall procure all building and other permits therefore. All buildings, trade fixtures
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and other improvements shall be designed with a view toward aesthetic
considerations and installation shall not commence until plans and specifications
therefore have been submitted to and approved in writing by the Airport
Manager, which approval shall not be unreasonably withheld. LESSOR makes
no representation or guarantee as to the suitability of the [eased area for
construction of buildings, roads, ramps, etc., and is not responsible for the costs
of excavation and/or removal of any object found either above or below ground
level except for hazardous materials and archaeological artifacts existing prior to
tenancy.
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Ninety (90) days prior to the expiration of this Lease, including any renewals,
LESSEE shall provide written notice to the Airport Manager of one of the
following intents of the LESSEE:
A. Revert the improvements constructed or installed on the Premises to the
LESSOR at no cost or encumbrance to the Airport, City or County;
B. Negotiate a new land lease agreement with the approval of the LESSOR;
12. REGULATIONS:
LESSEE agrees to comply with all applicable laws, ordinances, rules, regulations
and policies of all governmental authorities having jurisdiction over the Airport,
including policies adopted by LESSOR, as such laws, ordinances, rules,
regulations and policies apply to the use and operation of Airport property,
facilities and operations as those laws, ordinances, rules, regulations and policies
now exist or may hereafter become effective.
13. SUBLETTING:
LESSEE shall not sublet any part of the premises without the prior written
approval of LESSOR, such approval not to be unreasonably withheld. Subleases
shall comply with all laws, ordinances, rules, regulations and policies applicable
to the use and operation of Airport property, facilities and operations as those
laws, ordinances, rules, regulations and policies now exist or may hereafter
become effective. A consent to sub-lease by LESSOR shall not be construed to
be a consent to any subsequent sub-lease.
14. ASSIGNMENT:
LESSEE shall not assign this Lease without the prior written approval of
LESSOR. Such assignment shall be in conformance with all applicable Airport
Board, local, state and federal laws, ordinances, rules, regulations and policies.
All assignees shall comply with all laws, ordinances, rules, regulations and
policies applicable to the use and operation of Airport property, facilities and
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operations as those laws, ordinances, rules, regulations and policies now exist or
may hereafter become effective. A consent to assignment by LESSOR shall not
be construed to be a consent to any subsequent assignment-.
15. MISCELLANEOUS PROVISIONS:
A. The parties agree that LESSOR, through its Airport Manager or other
person authorized by the Airport Manager, may enter upon the leased premises
at any reasonable time to make such inspections as LESSOR may deem
necessary to the proper enforcement of any term, provision or condition of this
Lease. No such entry or inspection by LESSOR is required by this provision,
and the failure of LESSOR to enter and make inspection shall not alter the
relationship of the parties and their respective rights and duties provided by this
Lease. LESSEE shall be granted the right of quiet enjoyment upon performance
of all terms of this Lease.
B. LESSOR may further develop or improve Airport property and facilities,
regardless of the desire or views of LESSEE regarding any such development or
improvement, and without interference or hindrance on the part of LESSEE and
without liability to LESSEE, provided the operations of the LESSEE are not
unreasonably interrupted.
C. LESSOR reserves the right, but shall not be obligated to LESSEE, to
maintain and keep in repair the landing area of the Airport and all publicly owned
facilities of the Airport, together with the right to direct and control all activities of
LESSEE in that regard.
D. LESSOR reserves the right to take any action necessary or desirable by
LESSOR to protect the operations of the Airport against obstruction, or any other
activity interfering with the efficient operation of the Airport, together with the right
to prevent LESSEE from erecting, or permitting to be erected, any building or
other structure on the Airport which, in the opinion of the Airport Manager, would
limit the usefulness of the Airport or constitute a hazard to aircraft. LESSEE shall
limit the building area to that portion of the property which is outside of the
building restriction line as defined by the Airport Layout Plan and to a height not
to exceed thirty five (35) feet.
E. During time of war or national emergency, LESSOR shall have the right to
lease the landing area or any part thereof to the United States of America for
military use, and, if any such lease is executed, the provisions of this Lease shall
be suspended insofar as they are inconsistent with the provisions of the lease
agreement with the United States of America.
F. This Lease shall be subordinate to the provisions of any existing or future
agreement between LESSOR and the United States of America relative to the
operation or maintenance of the Airport, the execution of which has been or
may be required as a condition to the expenditure of federal funds for the
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development of the Airport.
G. If the leased premises or any interest therein is taken as a result of the
exercise of the right of eminent domain, this Lease shall terminate as to such
portion as may be taken. If the portion taken does not feasibly permit the
continuation of the LESSEE's operations, LESSEE shall have the right to
terminate this Lease. Such termination shall be effective as of the date LESSEE's
operations cease. LESSEE shall be entitled to a portion of the award
representing its interest in the premises. LESSOR shall be entitled to the
remainder of the award.
A. At no expense to LESSOR, LESSEE shall defend against and indemnify
fully and save harmless the Board of the Yakima Air Terminal - McAllister
Field, the Yakima Air Terminal - McAllister Field and its employees, the City of
Yakima and Yakima County and their elected and appointed officials, employees
and agents, from any and all liability, damages, suits, claims, actions, judgments
or decrees, made against the Board of the Yakima Air Terminal - McAllister Field,
the Yakima Air Terminal - McAllister Field or its employees, the City of Yakima or
Yakima County or their elected and appointed officials, employees and agents,
including all expenses incidental to the investigation and defense thereof,
including reasonable attorney fees, based on or arising from the occupancy or
use of the leased premises by LESSEE or as a result of LESSEE'S operations at
the Airport or from any other act or omission of LESSEE, its servants,
employees, agents, invitees, independent contractors or any other entity, person,
firm or corporation acting on behalf of LESSEE or under its direction, whether
such claim shall be by LESSEE or a third party; provided, however, that LESSEE
shall not be liable or any injury, damage or loss occasioned solely by the
negligence of LESSOR, its agents or employees. LESSOR shall give to LESSEE
prompt and reasonable notice of any such claims or actions and LESSEE shall
Dave the right to investigate, compromise and defend the same to the extent of
its interest.
B. LESSOR agrees to defend, indemnify and hold LESSEE harmless against
and from any claim or liability arising from or alleged to arise from the presence
of hazardous material or toxic waste on the subject leased premises at the
inception of this Lease and the introduction to the premises of such materials due
to LESSOR'S activities or under its control. The provisions of this Sub-section
shall survive the termination of this Lease.
C. LESSEE shall keep and hold the Board of the Yakima Air Terminal -
McAllister Field, the Yakima Air Terminal - McAllister Field and its employees, the
City of Yakima and County of Yakima, their elected and appointed officials,
agents and employees, free and harmless from any and all claims and actions,
loss, damage, expense or cost, including reasonable attorneys fees, incidental to
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the investigation and defense thereof, resulting from, arising out of, or caused
by LESSEE resulting in any liability under the Federal Comprehensive
Environmental Response Compensation Liability Act of 1980, as amended, 42
U.S.C. 9601 et seq.; Hazardous Materials Transportation Act, 49 U.S.C. 1801 et
seq.; Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq.; the
Clean Water Act, 42 U.S.C. 1251 et seq.; the Washington Environmental Policy
Act, RCW Ch. 43.21 C; the Washington Water Pollution Control Act, RCW Ch.
90.48; the Washington Hazardous Waste Management Act, RCW Ch. 70.105;
the Washington Model Toxic Control Act, RCW Ch. 70.105D, and the regulations
promulgated thereunder, or under any applicable local or state environmental
ordinance, statute, law, rule or regulation. The provisions of this Sub-section shall
survive the termination of this Lease.
17. INSURANCE:
LESSEE shall provide LESSOR a certificate of insurance or other proof of
insurance acceptable to LESSOR, evidencing an insurance policy naming the
Board of the Yakima Air Terminal - McAllister Field; Yakima Air Terminal -
McAllister Field; the City of Yakima and County of Yakima as additional insureds.
Limits of Comprehensive General Liability insurance coverage not less than
$1,000,000 per occurrence for bodily injury and property damage covering
LESSEE's occupancy of and activities pertaining to the leased premises.
LESSEE specifically agrees that insurance limits shall be reviewed at least every
five (5) years and that LESSOR may make reasonable adjustments to the
required limits.
Not less than 30 days written notice, or other such time period as may be
acceptable to LESSOR, must be supplied to LESSOR in the event of
cancellation, material change to the policy or non-renewal of any or all policies.
Certificate shall be issued by carrier(s) with a minimum A.M. BEST rating of A-VII
which is admitted in the State of Washington or other such carriers as shall be
acceptable to LESSOR.
A. TENANT IMPROVEMENTS: In the event the construction in accordance
with SECTION 12-IMPROVEMENTS herein, or improvements thereto, are
partially or totally damaged by fire or other casualty, the LESSEE shall repair or
replace the same at its own expense with due diligence. The new improvements
shall be at least the same size, design and quality as that which existed prior to
any damage or destruction. Both parties agree, however, that any insurance
proceeds shall be first applied to the cost of repair or replacement of
improvements.
LESSEE may elect not to repair or replace said construction or improvements.
LESSEE shall advise LESSOR of its intent within thirty (30) days of the damage
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or destruction. If LESSEE elects not to repair or replace the improvements, this
Lease shall be terminated. In such event, LESSEE shall restore the Premises to
substantially the same condition as existed prior to LESSEE constructing its
improvements on the property.
B. OTHER AIRPORT PROPERTY: In the event of damage or destruction of
Airport property caused by the LESSEE, its agents, employees, aircraft or other
equipment, LESSEE agrees to repair, reconstruct, or replace the affected
property to the condition which existed prior to such damage or destruction, to
the extent that same is not covered by insurance required under this Lease.
LESSEE further agrees to cause such repair, reconstruction or replacement or
affected property with due diligence. In such case, LESSEE shall be entitled to
retain the insurance proceeds.
A. The failure by LESSEE to pay rent in the amounts and at the times
specified herein, or the failure by LESSEE to otherwise comply with any term,
provision or condition of this Lease, shall constitute grounds for termination of
this Lease and forfeiture of all rent paid by LESSEE to the time of termination.
This Lease and tenancy shall terminate and rent paid shall be forfeited for cause
as specified above on written notice by LESSOR to LESSEE stating the amount
of rent in default or otherwise stating accurately the manner in which LESSEE
fails or has failed to comply with this Lease. LESSEE shall make full payment
or otherwise comply with this Lease in the manner specified in the notice within
thirty (30) days (except ten calendar (10) days for payment of rent) from
LESSEE's receipt of such notice, otherwise this Lease and tenancy shall be
terminated and rent forfeited. Such notice shall be given in writing and served on
LESSEE by personal delivery or mailed by certified mail with return receipt
requested addressed to LESSEE at its address stated below LESSEE's
signature to this Lease or such other address as the parties may advise each
other in writing. It is further agreed that after receipt of notices and as an
additional condition to avoid forfeiture, LESSEE shall pay LESSOR's costs and
expenses, including attorney's fees, for the preparation and service of such
notice. Nothing contained herein shall release or diminish LESSEE's obligation
to pay rent for the full term of this Lease save such amount as LESSOR recovers
as rent from any subsequent lessee during the term of this Lease. Notices shall
be deemed received three (3) days after mailing to LESSEE at the address
below LESSEE's signature to this Lease or such other address as the parties
may advise each other in writing,
B. As additional and not alternative remedy, optional with LESSOR and upon
thirty (30) days written notice to LESSEE, should LESSEE be in default
hereunder other than default in the payment of rent, LESSOR may cure or
correct the same and the cost of such action by LESSOR shall immediately
become due and payable from LESSEE, together with late fees on said sum at a
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rate of eighteen percent (18%) per annum, and the non-payment of said sum by
LESSEE shall be adequate grounds for LESSOR to invoke the other remedies as
provided in this Lease.
C. Upon termination of this Lease for any reason, LESSEE shall immediately
surrender the premises to the LESSOR in good condition and repair, ordinary
wear and usage excepted; and LESSEE shall remove all of LESSEE'S personal
property, trade fixtures, equipment or improvements removable by prior
agreement with LESSOR from the premises and shall repair any damage to the
premises caused by such removal. Any personal property of LESSEE, or
anyone claiming under LESSEE, which shall remain upon the premises at the
expiration or termination of this Lease shall be deemed to have been abandoned
and may be retained by LESSOR as LESSOR's property or disposed of by
LESSOR in such manner as LESSOR sees fit without compensation to any
party.
20. INSOLVENCY:
In the event LESSEE is declared bankrupt by a court of competent jurisdiction or
in the event LESSEE makes an assignment for the benefit of creditors, or if a
receiver otherwise is appointed for LESSEE, or in the event LESSEE's leasehold
estate is subjected to execution to satisfy any judgment against LESSEE, then in
that event LESSOR may immediately or at any time thereafter without notice or
demand enter into and upon the premises or any part thereof and repossess the
same and expel LESSEE or any person upon the premises and remove their
effects, and thereupon this Lease and the tenancy hereby created shall
absolutely terminate, without prejudice to any remedies which might otherwise be
available to LESSOR for collection of past due or future rent.
It is understood and agreed that the mortgagee (ref. SECTION 3) shall have the
option to cure any default under this Section.
21. VENUE, ATTORNEY FEES:
In the event of litigation to enforce the rights and obligations hereunder, venue
shall lie in Yakima County Superior Court, and the prevailing party shall be
entitled to its reasonable attorney fees in addition to court costs.
22. NON-DISCRIMINATION CLAUSE:
To the extent required by law, LESSEE, for itself, its personal representative,
successors in interest and assigns, as a part of the consideration hereof, does
hereby covenant and agree as follows:
A. No person, on the grounds of race, color, religion, sex, age, marital status,
handicap or national origin, shall be unreasonably excluded from participation in,
denied the benefits of, or be otherwise subjected to discrimination in LESSEE's
personnel policies and practices or in the use or operation of LESSEE's services
9
or facilities.
B. LESSEE agrees that in the construction of any improvements on, over or
under Airport land and the furnishing of services thereon, no person, on the
grounds of race, color, religion, sex, marital status, handicap, age or national
origin, shall be unreasonably excluded from participation in, denied the benefits
of, or otherwise be subjected to discrimination.
C. LESSEE shall use the Premises in compliance with all other requirements
imposed by or pursuant to Title 49. Code of Federal Regulations, Department of
Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in
Federally Assisted Programs of the Department of Transportation-Effectuation of
Title VI of the Civil Rights Act of 1964, and as said Regulations may be
amended.
D. It is the policy of the Department of Transportation that minority business
enterprise as defined in 49 CFR Part 23, i.e., firms owned and controlled by
minorities; firms owned and controlled by women and firms owned and controlled
by financially disadvantaged persons; shall have the maximum opportunity to
participate in the performance of leases as defined in 49 CFR Section 23.5.
Consequently, this Lease is subject to 49 CFR Part 23 as applicable.
LESSEE hereby assures that no person shall be excluded from participation in,
denied the benefits of or otherwise discriminated against in connection with the
award and performance of any contract, including leases, covered by 49 CFR
Part 23 on the grounds of race, color, national origin or sex.
LESSEE hereby assures that it will include the above clauses in all sub-leases
and cause sub-LESSEEs to similarly include clauses in further sub-leases.
23. AIRPORT SECURITY AND ACCESS CONTROL. Access to movement/non-
movement area/ingress and egress is not permitted under any circumstances.
24. ACCESS ACROSS LEASED PROPERTY. Lessee acknowledges and permits
the customers and employees of Budget Rent A Truck to pass on and off of the
dirt truck storage lot immediately adjacent to and west of the garage across the
paved parking lot leased to the Lessee. Budget Rent A Truck vehicles will not be
allowed to parked on the asphalt parking lot. Violations of this policy will be
reported to airport administration who will request the moving of a parked truck
by Budget as soon as possible. Lessee shall not have rental trucks towed from
the parking lot without the prior knowledge of approval by airport management.
If/when the leased parking lot is adequately signed and marked by Lessee as a
`no parking/tow zone', Lessee is permitted to have any other vehicle towed at
owner's expense.
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25. OFFICIAL NOTIFICATIONS: For formal purposes of notification concerning
anything having to do with this lease, the compliance with specific provision of
the leases, the property, and/or use of the facilities and property, the notification
address will be:
PocketiNet Communications, Inc.
11 1
Walla Walla, Washington 99362
The failure by one party to require performance of any provision of this
Agreement shall not affect that party's right to require performance at any time
thereafter, nor shall a waiver of any breach or default of this Agreement
constitute a waiver of any subsequent breach or default or a waiver of the
provision itself.
This document embodies the entire Agreement between the parties with respect
to the subject matter herein contained. No amendments or modifications hereof
shall be enforceable unless in writing, signed by the party to be charged.
28. Time is of the essence of this entire Lease.
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TAKIthA AIR TERMINAL - McALLISTER FIELD
2400 W. Washington Avenue
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(509) 575-6149 - phone
(50• ) 575-6185
William A. Wheeler, Chairman
STATE OF WASHINGTON
County of Yakima
I certify that I know or have satisfactory evidence that William A. Wheeler and Don
Baumbach signed this instrument, on oath stated that they were authorized to execute
the instrument and acknowledged it as the Chairman and the Secretary respectively of
the Board of the Yakima Air Terminal - McAllister Field to be the free and voluntary act
of such party for the uses and purposes mentioned in the instrument.
Date -1 2
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BY:
Notary Public
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Marshall Keymer
VP of Operations
PocketiNet Communications, Inc.
45 Terminal Loop Road, Suite 210
Walla Walla, Washington 99362
(509) 526-5026 - phone
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STATE OF WASHINGTON IE?
County of
I certify that I know or have satisfactory evidence that Mr. Marshall Keymer signed this
instrument, on oath stated that they were authorized to execute the instrument and
acknowledged it as the Vice President of Operation for PocketiNet Communications,
Inc., to be the free and voluntary act of such party for the uses and purposes mentioned
in the instrument. I M#liii,
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Exhibit "A!* lease agreement
between Yakima Air Terminal
and PecketiNet
Effective Date:
September 1, 2012
Lease Area:
Office 1,136 sq ft
Garage 3,214 sq ft
TOTAL 4,350 SQ FT
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