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Robert and Joyce McCormick - McCormick Air Center - FBO Building LeaseLEASE AGREEMENT #2 ROBERT E. & JOYCE L. McCORMICK THIS LEASE, executed this �� day of Ad �of th, 2004, between the YAKIMA AIR TERMINAL - McALLISTER FIELD, an agency e City of Yakima and County of Yakima, Washington, hereinafter referred to as "LESSOR," and ROBERT E. & JOYCE L. McCORMICK, a married couple, hereinafter referred to as "LESSEE ": WITNESETH: WHEREAS, LESSOR operates the Yakima Air Terminal - McAllister Field, under the authority granted by the Joint Operations Agreement signed by the City and County of Yakima, July 1, 1982, hereinafter referred to as "Airport," 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: 1. PREMISES: LESSOR does hereby lease and let unto LESSEE, and LESSEE does hereby lease and take from LESSOR, approximately 271,010 sq ft of land and at 3202- 3210 W Washington Ave in the City of Yakima, Yakima County, Washington, as that property is depicted on the drawing marked Exhibit "A ", 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. The LESSOR may, at any time hereafter, provide a legal description of the premises and such description shall become a part of this Lease. Filename: Lease/McCo04 2. TERM: The tenancy created by this Lease shall commence on September 1, 2004 and terminate on August 31, 2044, unless otherwise terminated as provided for herein. The term of this Lease shall extend by one Ten (10) year period (to wit, August 31, 2084); unless either party delivers to the other written notification of the intent to terminate prior to August 31, 2044, 3. MORTGAGE: LESSEE and its assigns shall have, and are hereby given, the right to mortgage the leasehold created by this Lease for an amount not to exceed the possessory interest of the LESSEE and for any term not exceeding the lease term, or any renewal thereof. LESSOR shall be given written notice thereof of any such mortgage, including the mortgagee's address and loan number. LESSOR shall have no right to terminate this Lease or retake possession of the premises or expel LESSEE unless 30 days' advance written notice of such default is given by the LESSOR to LESSEE and LESSEE's mortgagee at the last address provided in writing by LESSEE to LESSOR. The mortgagee is hereby given the power and authority, at its option, to cure all such events of default, which may be cured by action of the LESSEE, and in the name, place, and stead of the LESSEE. In the event a mortgage on the leasehold interest, subject to approval by LESSOR of any such assignment and sale may assign, sell, or otherwise dispose of the leasehold interest, subject to approval by LESSOR of any such assignment and sale and subject to approval by LESSOR of the assignee or purchaser; such approval shall not be unreasonably withheld. The assignment or sale of this Lease shall not relieve the assignee or purchaser of any obligation under this Lease nor relieve it from any terms of this Lease, nor from any obligation to meet Airport rules, regulations and standards. 4. RENT: 1-1- +42SF7•613 A. LESSEE promises and agrees to pay rent to LESSOR at the rate of $ 3,,W.78 per month for the leased premises, made in advance on or before the 10th day of each month. 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 twelve percent (12 %) per annum. Filename: Lease/McCo04 2 5. 1 7. B. The lease rental rate as provided for above shall be subject to review and modification on every two year anniversary of this Lease and shall be set at the then current Aviation Rate. 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. This deposit shall be adjusted from time to time to reflect adjustments in the rent and /or leasehold tax. TAKES AND LIENS: 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. USE: LESSEE agrees to use the leased premises only for an aeronautical oriented activity or for any other use allowed by the Master Plan and the zoning of the property by the appropriate jurisdiction as approved by the LESSOR. The use of the property for any other purpose shall be deemed a material breach of this Lease constituting grounds for its termination. This provision shall apply to any assignment of this Lease, whether voluntary or due to mortgage foreclosure or for any other reason. Failure of the assignee to comply with this Section shall be reasonable cause for LESSOR to withhold approval or consent to assignment. Filename: Lease/McCo04 3 8. UTILITIES: LESSEE shall be responsible for all utility services including, but not limited to, power, natural gas, water, sewer, and garbage. 9. PREMISES CONDITION: LESSEE has made a full inspection of the premises, is fully aware of its condition except with respect to environmental conditions and accepts the premises on an "AS -IS" basis. LESSEE agrees to pay for any improvements, repairs and /or modifications necessary to the operation of LESSEE's business. 10. MAINTENANCE: LESSEE agrees to keep and maintain the premises in at least as good a condition as the condition of the premises at the beginning of LESSEE's occupancy, normal wear and tear excepted. 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 weed control, garbage and debris removal, ash removal, painting, snow removal and pavement maintenance. 11. SIGNS: LESSEE, at LESSEE's own expense, may erect a 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. 12. 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 Filename: Lease/WX 04 4 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. Approval of LESSEE's improvements shall be deemed granted twenty (20) days after submission in writing to the Airport Manager if no response has been received by LESSEE. LESSOR makes no representation or guarantee as to the suitability of the leased 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. 13. REVERSION OF IMPROVEMENTS: Upon termination of this lease for any reason Lease, LESSOR may, at its option, either accept ownership of the improvements constructed or installed on the Premises, except for trade fixtures, or require LESSEE to remove such improvements within sixty (60) days of such termination. Such removal shall include removing the foundation, utilities and other land improvements and restoring the land to grade level. LESSOR shall notify LESSEE of its intent within sixty (60) days of the cancellation or expiration. LESSOR shall notify LESSEE of its intent within twenty (20) days of the termination. Prior to the expiration of this Lease, LESSEE shall remove all such trade fixtures and repair any damage to the premises caused by removal of trade fixtures to the reasonable satisfaction of the Airport Manager. Fixtures not removed within sixty (60) days after termination become the property of the LESSOR unless other arrangements have been previously approved in writing by the Airport Manager. LESSEE shall, as additional consideration for grant of this Lease, insure that all liens, security interest and other encumbrances against said improvements and structures except those created or suffered by LESSOR, whether consensual or involuntary, shall be paid, discharged or satisfied prior to time for reversion thereof to LESSOR; and, in any event, the parties acknowledge that LESSOR shall not, by virtue of termination of the leasehold interest nor reversion of the structures or other improvements, be liable for any debt or encumbrance associated therewith, whether now existing or hereafter incurred, levied or attached. Filename: Lease/MX 04 5 14. LESSOR'S OPTION TO PURCHASE: LESSOR shall have the right of first refusal on all improvements or structures on the demised premises as hereinafter set forth. If at any time during the term, LESSEE shall receive a bona fide offer from a third person for the purchase of any or all improvements or structures on the demised premises, which offer LESSEE shall desire to accept, LESSEE shall promptly deliver to LESSOR a copy of such offer and LESSOR may, within thirty (30) days thereafter, elect to purchase the demised premises on the same terms as those set forth in such offer. If LESSOR shall not accept such offer with the time herein specified therefor, said right of refusal shall cease to exist, but this lease shall continue otherwise on all the other terms, covenants, and conditions in this lease set forth. This right of refusal shall be inapplicable to a transfer, by way of sale, gift or device, including a trust, to or for a party related to a LESSEE , or to any transfer, in whole or in part, from one such related party to another, but shall apply to any subsequent transfer to a third person. For the purpose of this Article, if the then LESSEE shall be an individual, a related party shall include a spouse, lineal descendant or spouse of such descendant, ancestor or sibling (whether by the whole or half blood), a partnership or limited liability company of which such owner is a member, a joint ownership or ownership in common, which includes the then LESSEE, or a corporation, the majority of whose shares is owned by the LESSEE, or any one or more of the foregoing parties. If the then LESSEE shall be a corporation, a related party shall include an affiliate, subsidiary or parent corporation, a successor by merger or consolidation, or the holder or holders of the majority of the shares of such corporation. 15. 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. LESSEE further agrees to accept responsibility for not allowing unauthorized persons access to the Airport Operations Area (AOA). Filename: Lease/McCo04 6 16. 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 give preference to aeronautical activities and 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. The LESSOR, in determining whether or not to approve a sub - lease, shall consider the extent of the aeronautical activities performed on the premises. Any income to LESSEE derived from sub - leasing shall be distributed to LESSOR in accordance with its policy on SUB - LEASING INCOME in effect at the time of the final execution of this Lease. According to the policy on SUB - LEASING INCOME in effect at the time of this Lease, there is no requirement to share sub -lease income because this Lease is for land only. 17. ASSIGNMENT: LESSEE shall not assign this Lease without the prior written approval of LESSOR, such approval not to be unreasonably withheld. Such assignment shall be in conformance with all applicable Airport Board, local, state and federal laws, ordinances, rules, regulations and policies. LESSEE shall give preference to aeronautical activities and all assignees 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 assignment by LESSOR shall not be construed to be a consent to any subsequent assignment. 18. 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 Filename: Lease/McCo04 7 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 north 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 agreement between LESSOR and the operation or maintenance of the Airport, be required as a condition to the development of the Airport. Filename: Lease/McCo04 the provisions of any existing or future United States of America relative to the the execution of which has been or may expenditure of federal funds for the 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. 19. INDEMNITY/DUTY TO DEFEND: 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, 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, judgements or decrees, made against the Board of the Yakima Air Terminal - McAllister Field, the Yakima Air Terminal - McAllister Field, 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 for any injury, damage or loss occasioned solely by the sole 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 have 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. C, LESSEE shall keep and hold the Board of the Yakima Air Terminal - McAllister Field, the Yakima Air Terminal - McAllister Field, 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, Filename: Leasc/IWC04 9 damage, expense or cost, including reasonable attorneys fees, incidental to 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. 43.21C; 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. 20. INSURANCE: LESSEE shall file with LESSOR a certificate of insurance, or other proof of insurance acceptable to LESSOR, evidencing an insurance policy with the Yakima Air Terminal - McAllister Field, the City of Yakima and County of Yakima as additional insureds providing: 'I. Comprehensive general liability insurance coverage in amounts of not less than $1,000,000 Combined Single Limit 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 are admitted in the State of Washington or other such carriers as shall be acceptable to LESSOR, 21. DAMAGE OR DESTRUCTION: Filename: Lease/McCo04 10 22. A. TENANT IMPROVEMENTS: In the event the construction in accordance with Section 12 - IMPROVEMENTS herein, or improvements thereto, is partially or totally damaged by fire or other casualty, the LESSEE shall repair or replace the same at its own expense. The new improvements shall be at feast 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 or destruction. If LESSEE elects not to repair or replace the improvements, this Lease shall be terminated. In such event, LESSOR may either accept ownership of the improvements or require LESSEE to remove the improvements and restore the Premises to a condition satisfactory to the LESSOR. The insurance proceeds shall be used for such restoration and the balance divided between the LESSOR and LESSEE as their interest bear in accordance with a straight line depreciation schedule. The straight line depreciation schedule shall be over the initial term of the lease and shall begin to run on the lease effective date. The amount so depreciated shall vest in the LESSOR. LESSOR shall notify LESSEE of its intent within thirty (30) days of receipt of LESSEE's notification. If LESSOR elects to have LESSEE remove the improvements, LESSEE shall have sixty (60) days to do so. 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. DEFAULT, TERMINATION & FORFEITURE: 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 Filename: Lease/McCo04 11 comply with this Lease in the manner specified in the notice within thirty (30) days (except three (3) 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 LESSEES 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 LESSORS 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' 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 rate of twelve percent (12 %,) 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. 23. 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 Filename: Lease/MX 04 12 receiver otherwise is appointed for LESSEE, or in the event LESSEE's leasehold estate is subjected to execution to satisfy any judgement 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. 24. 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. 25. 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 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 Filename: Lease/McCo04 13 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. 26. INTEGRATION: This document embodies the entire Lease 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. Time is of the essence of this entire Lease. Filename: Lease/MX04 14 r LESSOR; YAKIMA AIR TERMINAL - McALLISTER FIELD 2400 W. Washington Avenue Yakima, Washington 98903 (509) 575 -6149 - phone (509) 575 -6185 - fax Dougl ss Hahr , lairman A Fred'J. Iraola!, Secretary STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence that Douglas C. Hahn and Fred J. Iraola 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 fa 6 --0 By: Notary Publi Appointment Expires _ Q r ` 'kfiilii!lrrift, o' �.• MY �►. Expfres inventbar 1, 2007 Z Filename: Lease/McCo04 15 LESSEE: ROBERT E. & JOYCE L. McCORMICK 191 Mapleway Road Selah, Washington 98942 (509) -5230 (home) (509 945 9 cellar Rot T R E. M&CNRUCK JO E . &CORM CK STATE OF WASHINGTON County of Yakima Date Date I certify that I know of have satisfactory evidence that Robert E. McCormick signed this instrument and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. W #�JM s i PpAr STATE OF WASHINGTON County of Yakima •�> My ftWAL 7 �t. fiber 1 :20W �.Q JOUSOP I certify that I know of have satisfactory evidence that Joyce L. McCormick signed this instrument and acknowledged it to be her free and voluntary act for the uses and purposes mentioned in the instrument. Date. By. O Notary Public Appointment Expire � l'Ojltllltfl f "j'j Cj, -' o-fA& • �� :s = . my fin. ernes ; cn : Nnvrrr�bsr t �7 : Z ;,0 �f©� 11 fW`AS 't ` ;S Filename: LeasefN4cCo04 16 lJ /p: /1 Air N 4, 1 1 Lease Agemnext and the Yabm Air Te=nal Effective DEW: Sept=ber 1, 2W4 St J • tv 'fI� ,'��' . --J Lease Boundary `j 271,010 sq. ft. i i Nate: Amenent increases square footage of leased area ft= 146,435 sq i1. to 271,010 sq. ft to reflect the new aircraft parking ramp eynnietL -A Arxsmct ?TM Disting Hangar Site Map McCormick Aviation Self- Service Aviation Fuel Facility 3210 West Washington Avenue Yakima, WA 98903 W. Washington Ave. x Fuel Storage Tank Installation JE McCormick Aviation CONCREMAP JET A Typical Site Details 6" PIPEBOLLARD See Site Map A' .6ilo.aa" GROUT s" PVC PIPE iy February 10, 2003 CfSiIf1Tl fRE.GI R'.11F � `•: •. �Y 3' .00" STONE BACKFIH 1 BOLLARD DETAIL CONCRETE SPECS.: 1. MINIMUM CONCRETE STRENGTH: fc = 3,000 PSI GRADE 60. 2. BARREINFORCEMENT SHALL CONFORM TO ASTM A615. 3. DESIGN BASED ON SOIL BEARING CAPACITY OF 3,000 PSF MINIMUM. 4. THE SLAB MUST BE PLACED ON FREE DRAINING SOIL OR CRUSHED STONE TO PRECLUDE THE EFFECTS OF FROST HEAVE & THE CONTRACTOR SHALL EVALUATE THE EFFECTS OF SUBSURFACE UTILITIES OR UNUSUAL CONDITIONS ON THE FOUNDATION. 6. INSTALL A MINIMUM OF 6" OF CONCRETE IN ALL LOCATIONS WITH A HEAVY BROOM FINISH. 7. MINIMUM SIZE OF SLAB IS TO NO SMALLER THAN 12" LARGERTHAN THE SIZE OF THE TANK INCLUDING THE LADDER AND THE CANOPY PLATFORM. 8. K RAIL OR 6' BOLLARD ARE TO INSTALLED LEAVING NO OPENING BETWEEN FACH OTHER GREATER THAT 48", 9. K RAIL MUST BE INSTALLED NO CLOSER THAN 12" OR BOLLARDS 48" FROM THE TANK AND PLATFORMS. 10. CONCRETE PIERS MAY BE INSTALLED INSTEAD OF A CONCRETE SLAB. THE MINIMUM SIZE MUST NOT BE LESS THAT 36" HIGH, 24" WIDE, AND NOT LESSTHAN THE DIAMETER AND THE TANK. THE REINFORCED CONCRETE MUST MEET THE ABOVE SPECS. SEE DETAIL "1 A' 31,01" 11 i I 3 c 0.00" r 0.00" r r a AMENDMENT #1 rr r 1114 TO LEASE AGREEMENT #2 (Main FHO) ROBERT E. & JOYCE L. MCCORMICK THIS LEASE executed this day of 0-C 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 ROBERT E. & JOYCE L. McCORMICK a married couple, hereinafter referred to as "LESSEE." WITNESETH: WHEREAS, LESSOR operates the Yakima Air Terminal — McAllister Field, under the authority granted by the Joint Operations Agreement signed by the City and County of Yakima, July 1, 1982, hereinafter referred to as "Airport "; 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, PREMISES TERM RENT ENVIRONMENTAL STANDARDS (NEW SECTION) AIRPORT SECURITY & ACCESS CONTROL (NEW SECTION) NOW THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree as follows: 1. PREMISES: Delete in its entirety and replace with: LESSOR does hereby lease and let unto LESSEE, and LESSEE does hereby lease and take from LESSOR, approximately 234,488 sq ft of land and at 3202 -3210 W Washington Ave in the City of Yakima, Yakima County, Washington, as that property is depicted on the drawing marked Exhibit "A ", 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. Lease /McCo04 Ise #2 amd #1 Delete current Exhibit 'A' in its entirety. Replace with new metes and bounds survey, Exhibit 'A'. GATE 3112: LESSEE acknowledges that access from Washington Avenue to the gate and the gate itself is essential for emergency mid - airfield access by police, fire and ambulance personnel. Consequently, this access will not be blocked for any reason at any time. By its physical location, LESSEE recognizes it has predominant use of the gate. Consequently, LESSEE takes full responsibility for the repair and maintenance of the gate to include all mechanical and electrical breakdowns and malfunctions. This includes any accidents occurring to the gate by any person(s) using the gate, and, as such, will be covered by whatever property insurance coverage LESSEE provides on its property in general. No cost share will be provided by LESSOR. All security /access control and code authority remains with the YAT, and LESSEE will act in accordance with all YAT Airport access and security requirements. 2. TERM: Delete second paragraph and replace with: LESSEE shall have the option to extend the term by one ten (10) year period (to wit, August 31, 2054); provided LESSEE delivers to LESSOR not less than three - hundred and sixty-five days (365) (one calendar year) before the expiration of the original term written notification of its intent to extend the term. 4. RENT: Delete in its entirety and replace with: A. LESSEE promises and agrees to pay rent to LESSOR at the rate of $ 3,517.32 per month for the leased premises, made in advance on or before the 1st day of each month. 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 twelve percent (12 %) per annum. B. The lease rental rate as provided for above shall be subject to review and modification every two (2) years beginning January 1, 2014, and shall be set at the then current "aviation rate ". C. In the event the parties are unable to agree upon the fair market rental rate for the succeeding periods, upon written notice of either party to the other, but not later than thirty (30) days prior to the expiration of the then current rental period, the matter of establishment of fair market rental shall be referred to arbitration. Within thirty (30) days of such notice, each party shall select one arbitrator. The two arbitrators shall jointly select a third Lease /McCo04 Ise #2 amd #1 2 arbitrator who shall be a real estate broker with at least five (5) years experience in sales or leases of commercial property in the Yakima Valley. The decision of a majority of the arbitrators as to the fair market rental value for the property shall be made within forty -five (45) days of said written notice and shall be binding. Each of the parties shall bear the cost of its designated arbitrator. The parties shall share equally the expense of the third arbitrator. The arbitration decision shall be binding upon both parties and shall be enforceable in accordance with laws of the State of Washington. The arbitrator's decision shall relate back to the beginning of the new rental period. 30. ENVIRONMENTAL STANDARDS (NEW SECTION) Except for conditions prior to the original occupancy of the assigned area by LESSEE, LESSEE agrees to accept responsibility for full compliance with any and all applicable present and future federal, state, and local rules, regulations, restrictions, ordinances, statutes, laws, and/or other orders of any governmental entity regarding the use, storage, handling, distribution, processing and /or disposal of hazardous wastes, hazardous chemicals, toxic chemicals, toxic substances, pollutants, contaminants, or other similarly regulated substances (hereinafter referred to as "hazardous substances ") in and on the space subject to this permit, Said hazardous substances shall include, but not be limited to. gasoline; diesel; jet fuel; lubricating oils; hydraulic fluid; deicing fluids, and cleaning fluids. Except for conditions existing prior to the original occupancy of the assigned area by LESSEE, in the case of any hazardous substance spill, leak, discharge, or improper storage on the LESSEE's assigned area, or contamination of the LESSEE's assigned area by the LESSEE or its contractor(s), or subcontractor(s), employee(s), and agent(s), the LESSEE agrees to make or cause to be made any necessary repairs or corrective actions as well as to clean up and remove any spill, leakage, discharge, release, or contamination. In the case of any hazardous substance spill, leak, discharge, release, or contamination by the LESSEE or its contractor(s), or subcontractor(s), employee(s), and agent(s), in, on, or around the assigned area, or as may be discharged or released in, on, around, or under the adjacent property which affects in any way other property of the LESSOR, or its tenants, the LESSEE agrees to make or cause to be made any necessary corrective actions. in accordance with requirements of all applicable environmental laws, regulations, and permits, to clean up and remove any spill, leakage, discharge, release, or contamination to the reasonable satisfaction of LESSOR. If the LESSEE fails to repair, clean up, properly dispose of, or take any other corrective actions as required herein, the LESSOR may (but shall not be required to) take all steps it deems necessary to properly repair, clean up, or otherwise Lease /McCo04 Ise #2 amd #1 3 correct the conditions resulting from the spill, leak, discharge, release, or contamination. Any such repair, clean up, or corrective action taken by the LESSOR shall be at the LESSEE's cost and expense, and the LESSEE shall indemnify and pay for and /or reimburse the LESSOR for any and all costs (including any administrative costs) the LESSOR incurs as a result of any repair, clean up, or corrective action it takes. 31. AIRPORT SECURITY AND ACCESS CONTROL (NEW SECTION) A. Access to Non - Movement Area /Ingress and Egress. LESSEE is granted only that vehicular and /or pedestrian access which is reasonably necessary to allow LESSEE access to the hangar ramp /apron once LESSEE is on Airport property. Vehicular access to and egress from Airport by the LESSEE shall be made into and out of only Airport Gate No. 3112, vehicle gate, and Airport Gate No. 2112A, 3207, 3208, 3208A, 3203, 313, 3112A pedestrian gate. Vehicular or pedestrian access to any and /or all movement areas, whether active or inactive, is expressly prohibited by this Agreement. For the purpose of this Agreement, a movement area is any runway or taxiway utilized for taxiing, takeoffs, and landings of aircraft, exclusive of aircraft loading ramps, aircraft parking areas, and aircraft aprons and tie down spaces. B. There will be one Authorized Signatory for airport security, airport ID, and access control for the entire lease area. C. Access Identification (ID). Airport Administration will assign one (1) Yakima Air Terminal (YAT) identification card to the LESSEE's Authorized Signatory only. The cost of the badge is dependent on costs associated with the requisite and mandated background check. D. A request by the LESSEE for an additional card(s) shall be made in writing stating through the Authorized Signatory providing the reason(s) or rationale why an additional card(s) is /are required. Any request for an additional card may or may not be approved by the Airport Manager at his /her sole discretion. The minimum information required for the issuance of any additional card will include the name, local address, and contact phone number of the individual. The same fees outlined above are applicable for any additional badge. If any card is lost, stolen, or made unusable for any reason, the LESSEE will pay the applicable fine and costs associated with the issuance of a new or replacement badge in effect at that time. E. The control and monitoring of access is paramount to Airport security. Accordingly, only authorized users with access to the Airport granted pursuant to this Agreement may hold an ID card to access the Airport. Lost or stolen Airport- issued access cards shall be reported Lease /McCo04 Ise #2 amd #1 4 immediately by any means possible to Airport Administration, whereupon the loss or theft will be recorded, and the card will be made "inactive ". "Reported immediately" means within twenty -four (24) hours or the next business day, not including weekends or holidays. A new card may then be issued by Airport Administration bearing a number different from the one lost or stolen. F. Fraud and Intentional Falsification of Records. (1) No person may make any fraudulent or intentionally false statement in any application for any security program, access medium, or identification medium. (2) No person may make any fraudulent or intentionally false entry in any record or report that is kept, made or used to show compliance or exercise any privileges. G. Security Responsibilities. No person may: (1) Tamper or interfere with, compromise, modify, attempt to circumvent, or cause a person to tamper or interfere with, compromise, modify, or attempt to circumvent any security system, measure, or procedure. (2) Enter, or be present within a secured area without complying with the systems, measures, or procedures being applied to control access to, or presence or movement in such areas. (3) Use, allow to be used, or cause to be used, any Airport- issued or Airport- approved identification medium that authorizes the access, presence, or movement of persons or vehicles in secured areas in any other manner than that for which it was used by the appropriate authority. H. "Non- Movement Area Certification of Training — A lication for Permit to Operate Ground Vehicles at the Yakima Air Terminal Any person given vehicular access to the Airport shall be required to read, apply for and pass the test associated with the current edition of the Airport Driving Rules & Regulations document provided by the Airport to qualify for access to the Airport. A copy of the application and test will be kept in the LESSEE's File. I. Air ort Safety and Securily. In the interest of Airport safety and security, in the event LESSEE fails to abide by this Agreement, the Airport Manager of YAT is authorized by the Airport's Governing Authority, to Lease /McCo04 Ise #2 amd #1 5 immediately declare this Lease void, to cancel the same without any legal proceeding and take possession of the tie down. This amendment shall become effective (insert date here). Time is of the essence of this entire lease. NOTHING FOLLOWS Lease /McCo04 Ise #2 amd #1 6 LESSOR: YAKIMA AIR TERMINAL - McALLISTER FIELD 2400 W. Washington Avenue Yakima, Washington 98903 (509) 575 -6149 - phone (509) 575 -6185 - fax - 4VI 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 —/ �- By: IZ Notary Publ' Appointment Expires ° ���� ����; `JOJy''��r,, 1c; Lease 1MCCo04 Ise #2 amd #1 7 LESSEE: ROBERT E. & JOYCE L. McCORMiCK 191 Mapleway Road Selah, Washington 98942 (509) 697 -5230 (home) (5 94 -2219 (cellular) T E. McCOR ICK Date J L. McCORMICK Date STATE OF WASHINGTON County of Yakima I certify that I know of have satisfactory evidence that Robert E. McCormick signed this instrument and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. 12 By: Z N Notary Public Appointment //- /- ,S' STATE OF WASHINGTON County of Yakima *.�`41A t30 ylq` ��41,e p n�+ w • 001AP{,r�Y I certify that I know of have satisfactory evidence that Joyce L. McCormick signed this instrument and acknowledged it to be her free and voluntary act for the uses and purposes mentioned in the instrument. Date: By: Notary Public Appointment Expire / /`� 0% J{O!ylr1�`'� .tai V10TAgj, �t�illillti� ►�\ Lease /McCo04 Ise #2 amd #1 8 Yakima Air Terminal Lease Exhibit. --- McCormick Air WLA Project # 10101S November 30, 2010 Lease Area That portion of the Southeast Quarter of the Northeast Quarter of Section 34, Township 13 North, Range 18 East, W.M., described as follows: Commencing at the East Quarter corner of said Section 34; Thence North 00 "18'22" East along the East line thereof 634.91 feet; Thence North 79 °05'28" West 247.99 feet to the Point of Beginning; Thence South 12 °21'26" West 132.86 feet to the Northerly edge of the Airport Service Road; Thence North 69 °56'08" West along said Northerly edge 593.66 feet; Thence North 20 009'34" East 365.82 feet to the Southerly right of way line of Washington Avenue; Thence South 79 003'36" East along said right of way line 545.57 feet; Thence South 11 °90'17" West 322.42 feet; Thence North 79 °05'28" West 13.44 feet to the Point of Beginning. Situate in Yakima County, Washington. -i -re''5�'�.1" Per_ 2 , z�o t- 28.51 ff 79`05'28" W `` 13.44• i Yakima Air Terminal Lease (E=xhibit -- McCormick Air HLA Project # '10101S November 30, 2010 Lease Area That portion of the Southeast Quarter of the Northeast Quarter of Section 34, Township 13 North, Range 18 East, W.M., described as follows; Commencing at the East Quarter corner of said Section 34; Thence North 00 °18'22" East along the East line thereof 634.91 feet; Thence North 79 °05'28" West 247.99 feet to the Point of Beginning; Thence South 12 °21'26" West 132.86 feet to the Northerly edge of the Airport Service Road; Thence North 69 °56'08" West along said Northerly edge 593.66 feet; Thence North 20 °09'34" East 365.82 feet to the Southerly right of way line of Washington Avenue; Thence South 79 *03'36" East along said right of way line 545.57 feet; Thence South 11'110'17" West 322.42 feet; Thence North 79 °05'28" West 13.44 feet to the Point of Beginning. Situate in Yakima County, Washington. �}�� . 2, Lo i- �--� - CASED MON FOUND MP'1-1 , - � T OO'00" W �� CENTER, SEC. 35, 388.05' T.13N., RASE., W.M. BC FOUND SEE LCR IM-1160 Hnibiregtse, Loaman Associates, 'A AIR TERM I NAL CIVIL ENGINEERING • LAND SURVEYING . PLANNING CITY OF YAKIMA, 801 North 39th Avenue ¢ Yaklma, WA 98902 A COUNTY, WASHINGTON (509) 965 -70000 -FAX (509) M-3800 EXHIBIT ~- McCormick Air SHEET 1 OF I