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HomeMy WebLinkAboutD. A. Arthur, Inc. and Cascadia Senior Living, LLC - Sublease Agreement (Yakima Air Terminal) SUBLEASE AGREEMENT THIS SUBLEASE AGREEMENT (the "Lease ") is made and entered into this 14 day of May 2015, by and between D. A. ARTHUR, INCORPORATED, a Washington corporation ( "Sublandlord "), and CASCADIA SENIOR LIVING, LLC, a Washington limited liability company ( "Subtenant "). Recitals. Sublandlord leases the building (the "Building ") located at 2520 W. Washington Avenue, Yakima, Washington, 98903, which is commonly referred to as Yakima County Assessor's Tax Parcel No. 181335 -24900 and situated on the real property legally described on attached Exhibit A (the "Property ") from the City of Yakima, a municipality, as set forth in that certain original Rental Agreement dated September 17, 1987 between Albert E. DeAtley and Iva R. DeAtley, d /b /a 82 Co. and the Yakima Air Terminal — McAllister Field, an agency of the City of Yakima and County of Yakima, Washington (the "Airport Board "), as amended by Amendment #1 — Lease Agreement dated February 22, 2001; as further amended by that certain Amendment #2 — Lease Agreement dated September 26, 2002 and as further amended by that certain Amendment #3 — Lease Agreement dated August 23, 2007; and as further amended by that certain Addendum to Amendment #3 of Airport Lease Agreement recorded on October 31, 2013, under Auditor's File No. 7822593 records of Yakima County, Washington (collectively, the "Prime Lease "). The City of Yakima (the "Prime Landlord ") is the successor -in- interest to all of the Airport Board's right, title, and interest in and under the Prime Lease. Sublandlord succeeded to all rights of the original tenant as disclosed by that certain Agreement re Assignment of Leases and Consent recorded on October 31, 2013, under Auditor's File No. 7822594, records of Yakima County, Washington. NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, and other good and valuable consideration, the parties hereto agree as follows: 1. Lease of Premises Sublandlord hereby leases to Subtenant, and Subtenant hereby leases from Sublandlord, a portion of the main floor of the building (the "Building ") located at 2520 W. Washington Avenue, Yakima, Washington, 98903 on the real property (the "Property ") commonly referred to as Yakima County Assessor's Tax Parcel No. 181335 -24900 and legally described on attached Exhibit A. The lease will be that portion of the Building containing approximately 2,319 square feet of rentable space including common area. Effective June 1, 2015. 2. Required Delivery Date; Term; Commencement Date Sublandlord covenants and agrees to deliver the space to Subtenant on or before June 1, 2015. The term of this Lease shall be month to month. 1 3. Rent On June 1, 2015, Subtenant covenants and agrees to pay to Sublandlord, without any abatement or offset whatsoever, base monthly rent ( "Rent ") for the Hanger in the amount of $2,500.00 per month. Rent shall be paid in lawful money of the United States of America in advance on the first day of each calendar month of the Term to Sublandlord at the address set forth above, or to such other party or place as Sublandlord may from time to time designate in writing. If Subtenant is in possession of the Premises for a portion of a month, the Rent shall be prorated for the number of days of Subtenant's possession during that month. 3.1. Real Estate Taxes N /A. Sublandlord to pay Real Estate Taxes. 3.2. Utilities, Operating Expenses, and Common Area Maintenance N /A. Sublandlord to pay utilities and common area maintenance except janitorial expenses for space rented including rest rooms. 4. Security Deposit No security deposit shall be required of Subtenant during the Term or any extension thereof. 5. Acceptance of Premises Subtenant acknowledges that it is taking possession of the Premises in its current existing condition. Subtenant is responsible for conducting its own inspection of the condition of all accessible utility systems serving the Premises before execution of this Lease. By signing this Lease, Subtenant accepts the Hanger and the Premises, all buildings and improvements thereon, together with all utilities in their current condition. 6. Use of Premises The Premises shall be used for the conduct and operation of an administrative office and related uses including general office purposes, sales and service, training and other ancillary uses. Subtenant shall not use the Premises for illegal purposes. Sublandlord has advised Subtenant to make its own investigation and determination of zoning and land use requirements, to ensure to its satisfaction the Premises may be used for the purposes intended by Subtenant and such use will be consistent with the present zoning and land use classification of the Premises. Sublandlord has made no representations regarding the zoning or land use of the Premises or the property upon which the Premises are located, or the suitability of the Premises for Subtenant's intended use. Should Subtenant's use of the building require any special permits and /or change of use permit by the City of Yakima or any other governmental agency, it shall be the 2 responsibility of the Subtenant to obtain applicable authorization. 7. Personal Premises Taxes, License and Governmental Charges Subtenant shall be liable for, and shall pay throughout the Term, all license and excise fees and occupation taxes covering Subtenant's business conducted on the Premises, and all taxes on property of Subtenant on the Premises. If any governmental authority under any present or future law effective at any time during the Term shall in any manner levy a tax on rentals under this Lease, or a tax in any form against Sublandlord because of or measured by income derived from the leasing or rental of the Premises, such tax shall be paid by Subtenant, either directly or through Sublandlord, and in the event of Subtenant's failure to pay the same, Sublandlord shall have the same remedies as upon the failure to pay Rent; provided, however, that Subtenant shall not be liable to pay any net income taxes imposed upon Sublandlord. 8. Repairs and Maintenance Sublandlord shall be responsible, at its sole cost, for the repair, replacement and maintenance of the foundation, roof, exterior of the building containing the Premises, the perimeter or outside pavement and all structural portions of the Premises, and also for the repair, replacement and maintenance of the heating, ventilation and air - conditioning system serving the Premises. In the event Sublandlord fails to perform any of the repair, replacement and /or maintenance obligations of the Sublandlord under the Lease, and such failure continues for a period of thirty (30) days (or such lesser period as may be reasonable in the event of exigent circumstances) following Sublandlord's receipt of written notice from Subtenant of such failure, Subtenant shall have the right, but not the obligation, to perform such repair, replacement and /or maintenance obligations on Sublandlord's behalf. If Sublandlord fails to reimburse Subtenant for all reasonable, actual costs incurred as a result within ten (10) days of Subtenant's invoice to Sublandlord for the same, Subtenant shall have the right to offset Rent until it recoups the full amount of such costs. Subject to the foregoing, Subtenant shall at all times keep the Premises neat, clean and in a safe and sanitary condition and shall maintain, at its sole cost and expense, necessary interior, non - structural repairs to maintain the Premises in good condition. Subtenant shall also keep and use the Premises at all times in accordance with all applicable statutes, ordinances, regulations, rules, directions and other laws respecting its use, at Subtenant's sole cost and expense. Subtenant agrees that at the expiration or sooner termination of this Lease, Subtenant shall quit and surrender the Premises without notice in a neat and clean condition, reasonable wear and tear and casualty excepted, and shall deliver the keys to the Premises to Sublandlord. Sublandlord shall be responsible for correcting any noncompliance of the Premises with any applicable statutes, ordinances, regulations, rules, and directions existing as of the date of this Lease. Subtenant shall be responsible for correcting any noncompliance of the Premises with any applicable statutes, ordinances, regulations, rules, and directions first enacted after the date of this Lease, or caused by any improvements constructed by Subtenant in the Premises. 9. Alterations and Improvements 3 Subtenant may make alterations, additions and improvement in and to the Premises after obtaining Sublandlord's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, and at Subtenant's sole cost and expense. All work performed shall be done in conformity with plans and specifications approved by Sublandlord, which approval shall not be unreasonably withheld, conditioned or delayed. In the performance of such work, Subtenant shall comply with all laws, ordinances, rules and regulations of any proper public authority, and to hold harmless Sublandlord from damage, loss or expense resulting therefrom. Subtenant shall use licensed, bonded and insured contractors approved by Sublandlord for all such work, which approval may be withheld in Sublandlord's sole discretion. Any alterations or improvements made to, or fixtures installed in, the Premises, which are of a permanent nature shall become a part of the realty and the property of Sublandlord at the termination of the Lease unless otherwise agreed in writing. Removable trade fixtures shall be and shall remain the property of Subtenant. Subtenant agrees to repair all damage caused to the Premises resulting from Subtenant's removal of its property upon termination of this Lease. Sublandlord may, at its option, elect to require the removal, at the termination of this Lease, at Subtenant's sole risk and expense, of any alterations, improvements or fixtures made or installed without Sublandlord's written consent. Any improvements not so removed shall be removed at Subtenant's expense, provided that Subtenant shall pay for any damage caused by such removal. It is understood and agreed that unless Sublandlord notifies Subtenant in writing at the time of approval of Subtenant's planned improvements that Subtenant is required to remove such improvements; Subtenant shall have no obligation to remove the approved improvements. "Fixtures," as used herein, shall include all items or improvements which are nailed, screwed, bolted or otherwise attached or affixed to the Premises or which cannot be removed without injury to the Premises, and all items, improvements or additions which are added to or connected in any way with the plumbing, electrical (with exception of articles merely plugged into standard electrical outlets), heating, air conditioning, sprinkler, gas lines, air lines, telephone or intercom or other communication, air tube, dust collection or other building systems or utilities or which constitute a part or portion of the interior finish of Building. "Removable trade fixtures," as used herein, means only those Fixtures which are of primary use only in connection with Subtenant's business and are not useful to Sublandlord as a part of the Premises. 10. Liability Insurance All personal property on the Premises shall be at the sole risk of Subtenant. Sublandlord shall not be liable to Subtenant for any damage caused by other tenants on the Premises. Subtenant shall indemnify, defend and hold harmless Sublandlord, its employees and agents from and against any and all claims for damages suffered or alleged to be suffered on or in the Premises by any person, firm or corporation, caused by Subtenant's acts, omissions or negligence. If applicaple, Subtenant shall, at its own expense, before commencing Sublandlord- approved construction on the Premises, maintain proper liability insurance with a reputable 4 company or companies in the minimum limits of $2,000,000.00 per person, $2,000,000.00 per accident occurrence for bodily injuries or death and $2,000,000.00 per accident for property damage, and to indemnify both Sublandlord and Subtenant against any such liability or expense. Sublandlord shall be named as an additional insured on Subtenant's insurance policies required under this Lease. In the event such insurance is canceled, Sublandlord may pay the charges for such policy and Subtenant shall reimburse Sublandlord, on demand, for such costs as additional rent hereunder. Subtenant shall further deliver to Sublandlord a certificate of such insurance showing it to be in effect and providing that it shall not be canceled without at least thirty (30) days prior written notification to Sublandlord. Sublandlord agrees to indemnify, defend and hold harmless Subtenant, its employees and agents from and against any and all claims for damages suffered or alleged to be suffered on or in the Premises by any person, firm or corporation, caused by Sublandlord's acts, omissions or negligence. 11. Premises and Casualty Insurance Sublandlord shall insure the building containing the Premises against fire and other casualty to the extent of the full replacement of the Building(s) and all other improvements on the Premises, with an insurer and in such amounts and with such endorsements as Sublandlord deems commercially reasonable and appropriate. Subtenant shall insure all improvements constructed in the Premises by Subtenant, as well as all of Subtenant's personal property located therein, to the extent of the full replacement value of the same. 12. Waiver of Subrogation Sublandlord and Subtenant each herewith and hereby releases and relieves the other and waives its entire right of recovery against the other for loss or damage arising out of or incident to the perils described in standard fire insurance policies and all perils described in the "All Risk Coverage" insurance endorsement approved for use in the State of Washington, which occurs in or about the Premises. 13. Hazardous Substances Subtenant shall not dispose of or otherwise allow the release of any hazardous waste or materials in, on or under the Premises, or any adjacent property. In addition, Subtenant agrees that it shall not store any hazardous waste or materials in, on or under the Premises, or adjacent property without the prior consent of Sublandlord. Sublandlord agrees that it will not withhold its consent for items that are part of Subtenant's normal operations and which are properly stored on the Premises. As used herein, the term "hazardous waste or materials" includes motor oil and any substance, waste or material defined or designated as hazardous, toxic or dangerous (or any similar term) by any federal, state or local statute, regulation, rule or ordinance now or hereafter in effect. Subtenant shall promptly comply with all statutes, regulations and ordinances, and with all orders, decrees or judgments of governmental authorities or courts having jurisdiction, relating to Subtenant's use, collection, treatment, disposal, storage, control, removal or cleanup of hazardous waste or materials, in, on or under the Premises, at Subtenant's expense. Subtenant shall indemnify, defend and hold harmless Sublandlord and its officers, 5 directors, shareholders, employees and agents, against any and all losses, liabilities, suits, obligations, fines, damages, judgments, penalties, claims, charges, response costs and remediation costs (including, without limitation, attorneys' fees, disbursements and expenses), which may at any time in the future be imposed on, incurred or paid by, or asserted against Sublandlord or any of the indemnified parties by reason of, or in connection with, the acts or omissions of Subtenant, its agents, employees or contractors, resulting from storage, disposal, release, removal, transportation, contamination, seepage, migration or spread of any hazardous waste or materials placed on the Premises by Subtenant. To the best of Sublandlord's knowledge, neither the Premises nor the building and improvements thereon contain any hazardous waste or material, including, without limitation, asbestos. Sublandlord agrees to indemnify, defend and hold harmless Subtenant and its officers, directors, shareholders, members, managers, employees and agents, against any and all losses, liabilities, suits, obligations, fines, damages, judgments, penalties, claims, charges, response costs and remediation costs (including, without limitation, attorneys' fees, disbursements and expenses), which may at any time in the future be imposed on, incurred or paid by, or asserted against Subtenant or any of the indemnified parties by reason of, or in connection with, the acts or omissions of Sublandlord, resulting from Sublandlord's storage, disposal, release, removal, transportation, contamination, seepage, migration or spread of any hazardous waste or materials on the Premises during Subtenant's occupancy on the Premises. 14. Liens and Insolvency, Bankruptcy Subtenant shall keep the Premises free from any liens arising out of any work performed, materials furnished to, or obligations incurred by Subtenant and shall hold harmless Sublandlord against the same. If a petition in bankruptcy is filed by Subtenant or if Subtenant is adjudged bankrupt or insolvent by any Court, or if a receiver or trustee in bankruptcy or a receiver of the property of Subtenant is appointed in any suit or proceedings brought by or against Subtenant or if Subtenant makes an assignment for the benefit of creditors or if this Lease shall by operation of law pass to any person other than Subtenant, the same shall constitute a breach of this Lease by Subtenant and Sublandlord may terminate this Lease by fifteen (15) days or more notice to that effect. 15. Assignment Sublandlord may assign all of its right, title and interest in, to or under this Lease, provided the assignee shall assume all of Sublandlord's obligations hereunder. This Lease shall not be assignable by operation of law. If Sublandlord consents to an assignment or sublease to which consent is required, such consent shall not be a consent to any further or later assignment or sublease and Sublandlord shall not have waived its rights hereunder to approve or condition such further or later assignment or sublease. 16. Inspection and Access Subtenant shall allow Sublandlord or Sublandlord's agent free access at all reasonable 6 times during regular business hours to the Premises for the purpose of inspection, provided Sublandlord shall provide reasonable prior notice (except in the event of an emergency) to Subtenant of Sublandlord's desire to access the Premises and Sublandlord shall be accompanied by a representative of Subtenant during any such inspection of the Premises. Sublandlord shall have the right to place and maintain "For Rent" signs in a conspicuous place on the Premises for one hundred twenty (120) days before the expiration of the Term or Extended Term. 17. Damage or Destruction of Premises In the event the Premises is damaged to such an extent as to render the same untenantable in whole or in a substantial part thereof, or are completely destroyed and cannot be repaired within one hundred twenty (120) days from the date of such damage or destruction, it shall be the option of the Sublandlord or Subtenant to terminate this Lease. After the happening of any such event, Subtenant shall give Sublandlord or Sublandlord's agent prompt written notice thereof Sublandlord shall have not more than sixty (60) days after the date of such damage or destruction to notify Subtenant in writing of Sublandlord's intentions to repair or rebuild the Premises, or the part so damaged as aforesaid, or to terminate this Lease, and if Sublandlord elects to repair or rebuild the Premises, Sublandlord shall prosecute the work of such repairing or rebuilding without unnecessary delay, and during such period the Rent shall be abated in the same ratio that portion of the Premises rendered for the time being unfit for occupancy shall bear to the whole of the Premises. Subtenant shall have the right to terminate this Lease in the event that the repair or rebuild is not completed with one hundred fifty (150) days of such damage or destruction. 18. Condemnation In the event thirty percent (30 %) or more of the floor area of the Premises is taken or damaged by the right of eminent domain, or purchased by the condemnor in lieu thereof, so as to render the remaining Premises economically untenantable, then this Lease shall be automatically terminated as of the time of taking. In the event of a partial taking which does not render the Premises economically untenantable or adversely affect Subtenant's ability to operate its business in an efficient manner as reasonably determined by Subtenant, the Rent and Additional Rent shall be reduced in direct proportion to the leased property taken. Each party shall have the right to pursue their own awards in the event of such condemnation proceedings. 19. Waiver No word, act or omission of either Sublandlord or Subtenant shall be deemed to be a waiver of any default or noncompliance by the other party under the terms of this Lease or of any right of either Sublandlord or Subtenant hereunder or of any notice given by one party to the other hereunder unless such party so advises the other in writing. The acceptance of rental by Sublandlord for any period or periods after a default or noncompliance by Subtenant hereunder shall not be deemed a waiver of such default. 20. Notices Whenever any notice is to be provided under this Lease, such notice shall be in writing 7 and shall be deemed to have been given when delivered personally or by messenger or upon receipt or refusal of delivery if mailed by registered or certified first class mail, return receipt requested, with postage prepaid, to the other party at the addresses set forth below, or such other addresses as may hereafter be designated in writing by either party. To Sublandlord: D. A. Arthur Incorporated Daniel A Day President 220 West Yakima Ave. Yakima, WA 98902 Telephone: (509) 575 -3773 Fax: (509) 575 -8879 E -mail: danny(aisunfairmarketing.com To Subtenant: Cascadia Senior Living, LLC 4120 Englewood Ave. Yakima, WA 98908 Telephone: (509) 480 -0642 21. Signs All signs or symbols placed in the windows or doors of the Premises, or upon any exterior part of the Premises by Subtenant shall comply with all applicable laws, codes, ordinances and the like, and shall be subject to the prior written approval of Sublandlord, which shall not be unreasonably withheld, delayed or conditioned. Any signs to be placed on the interior or exterior of the Premises shall be so placed at Subtenant's sole cost and expense and shall be removed by Subtenant upon the expiration or termination of this Lease. 22. Default and Re -entry Subtenant shall be in default under this Lease if it shall fail to pay Rent or any other sum when due hereunder within ten (10) days after receipt of written notice of such nonpayment, or if the violation of any other covenant or agreement hereunder shall remain uncured after thirty (30) days of written notice of such default or violation from Sublandlord; provided, however, that if the nature of Subtenant's obligation is such that more than thirty (30) days are required for its performance, then Subtenant shall not be deemed in default if it promptly commences such performance and thereafter diligently pursues the same to completion. In the event of such default, Sublandlord may cancel this Lease upon giving the notice required by law, and re -enter the Premises, but notwithstanding such re -entry by Sublandlord, the liability of Subtenant for the rent provided for herein shall not be extinguished for the balance of the Term, and Subtenant covenants and agrees to make good to Sublandlord any deficiency arising from a re -entry and re- letting of the Premises at a lesser rental than herein agreed to. Subtenant shall pay any such deficiency each month as the amount thereof is ascertained by Sublandlord. In addition to the remedies provided herein, Sublandlord shall have all other remedies provided by law. Sublandlord shall be in default under this Lease if Sublandlord fails to perform any of its 8 obligations hereunder within thirty (30) days after receipt of notice from Subtenant specifying Sublandlord's failure to perform; provided, however, that if the nature of Sublandlord's obligation is such that more than thirty (30) days are required for its performance, then Sublandlord shall not be deemed in default if it promptly commences such performance and thereafter diligently pursues the same to completion. Upon any such default by Sublandlord, Subtenant may exercise any of its rights provided in law or at equity. 23. Late Charge If Subtenant fails to pay when the same is due and payable any rent or other charges, such unpaid amounts shall bear interest at the rate of two percent (2 %) over the prime rate of interest charged or published by Bank of America on the first day of each month, commencing the date due to the date of payment. 24. Removal of Premises In the event of any entry in, or taking possession of, the Premises following an event of default by Subtenant beyond applicable notice and cure periods, Sublandlord shall have the right, but not the obligation, to remove from the Premises all personal property located therein. Sublandlord may store the same in any place selected by Sublandlord, including but not limited to a public warehouse, at the expense and risk of the Sublandlord thereof. Sublandlord shall thereafter have the right to sell such stored property, without notice to Subtenant, after it has been stored for a period of thirty (30) days or more. The proceeds of such sale shall be applied first to the cost of such sale, second to the payment of the charges for storage, if any, and third to the payment of any other sums of money which may then be due from Subtenant to Sublandlord under any of the terms hereof. The balance, if any, shall be paid to Subtenant. 25. Brokers N/A 26. Costs and Attorneys' Fees If by reason of any default by one party to this Lease it becomes necessary for the other party to employ an attorney, the defaulting party shall pay the other party's reasonable attorneys' fees. In case suit be brought concerning the terms of this Lease or to enforce its terms, the prevailing party shall be entitled to its reasonable attorneys' fees. 27. Heirs and Successors The covenants and agreements of this Lease shall be binding upon the heirs, legal representatives, successors and assigns of any or all of the parties hereto. 28. Holdover If Subtenant shall hold over after the expiration of the Term or any extension thereof, 9 such tenancy shall be a month -to -month tenancy, which tenancy may be terminated as provided by the laws of the State of Washington. 29. Invalidity of Particular Provision It is the intention of the parties that each term or provision of this Lease be enforceable to the fullest extent permitted by law. If any term or provision of this Lease or the application thereof to any person or circumstance is, to any extent, invalid or unenforceable, the remainder of this Lease and the application of such term or provision to person(s) or circumstance(s) other than those as to which it is held invalid or unenforceable shall not be affected thereby and shall continue in full force and effect. 30. Prime Lease Subtenant acknowledges and understands the Premises is owned by the City of Yakima and Sublandlord leases the Premises from the City of Yakima pursuant to the Prime Lease. Subtenant further acknowledges and understands that its rights, including the right to use, occupy and possess the Premises, are subject to all the terms and conditions of the Prime Lease, which includes a right of first refusal to purchase the Premises and which may require the City of Yakima to approve this Lease. Subtenant has been provided a copy of the Prime Lease and all amendments thereto, and the terms and conditions of the Prime Lease are hereby incorporated by reference. From and after the Lease Commencement Date, Sublandlord agrees to maintain the Prime Lease described above in full force and effect during the term of this Commercial Sublease, and Subtenant agrees to comply with all terms and conditions of the Prime Lease but only to the extent applicable to Subtenant's use, occupancy and possession of the Premises and not otherwise inconsistent with the terms of this Sublease. The terms of this Lease are subject to Sublandlord obtaining the written consent of City of Yakima Airport Terminal — McAllister Field (the "Prime Landlord ") to the terms of this Lease, which the undersigned parties will jointly work in good faith to obtain and believe will be granted on or about May 26, 2015. 31. Applicable Law, Forum and Consent to Jurisdiction Except as herein specifically provided, this Lease shall be governed by and construed according to the laws of the State of Washington. 32. Time Time is of the essence in this Lease and each and all of its provisions in which performance is a factor. 33. Parking Sublandlord will provide Subtenant with no less than ten (10) parking stalls in the location identified on Exhibit B attached hereto. The parking shall be free of charge for the 10 initial Term and Extended Term if applicable. 34. Security System Subtenant will be allowed to install its own security and security systems for the Premises, at Subtenant's sole cost and expense. 35. Entire Agreement, Exhibits and Amendment This Lease constitutes the complete agreement between Sublandlord and Subtenant. There are no terms, obligations, covenants or conditions other than those contained herein. The exhibits attached hereto are incorporated herein by this reference as if fully set forth herein. No modification or amendment of this Lease shall be valid and effective unless evidenced by an agreement in writing signed by both Sublandlord and Subtenant. IN WITNESS WHEREOF the parties hereto have executed this Agreement on the date first above - written. SUBLANDLORD: SUBTENANT: D. A. ARTH, R, INCORPORATED CASCADIA SENIOR LIVING, LLC By: i— — By: Daniel A. Day, Pre ident Justi ounker, Member STATE OF WASHINGTON ) ) ss. COUNTY OF YAKIMA ) I certify that I know or have satisfactory evidence that DANIEL A. DAY is the person who appeared before me, and said person acknowledged that he /she signed this instrument, on oath stated that he /she was authorized to execute the instrument and acknowledged it as the President of D. A. ARTHUR, INCORPORATED to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: M0,44 I kr' , 2015. ,otuutpo r ftlerfl arldqgrolge Q :� y [PRINT NAME] I&m ys 8 e r • Ni p thy 17, Se Z' - • 9� �p� NOTARY PUBLIC for the State of Washington, '•, -,•• •t..6 ..10 . „ residing at Q le- mm' 1 1r . 11 My appointment expires: Mat � 1 7 208 STATE OF \Nash n ) ' ) ss. \J COUNTY OF 1tm& ) I certify that I know or have satisfactory evidence that Justin Younker is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Member of CASCADIA SENIOR LIVING, LLC to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: Mal 14 -1)1 , 2015. 0`.‘1Y J141* , 6Atittfir ....T .'C. [PRINT NAME] NM 1 j. Tay' r V J =�v : 17• 2� NOTARY PUBLIC for the State of Wash 1 rirX1 ', -'•• gy p •.•'���`� residing at ye du At1 G , I�l1aSS�/1 I ✓1�1 - v YI ■ My appointment expires: IkAC1-9 LI 20 I PRIME LANDLORD: CITY OF AKIMA AI ' ' O. - T TERMINAL By: Min ' our , City Manager CITY CONTRACT N0: �u t S- 1 3 RESOLUTION NO:. h / a 12 EXHIBIT A All that part of the SE 1/4 of the SE 1/4 of the NW 1/4 of Section 35, Township 13 North, Range 18, EWM, lying Southwesterly of the Southwesterly right -of -way of Washington Avenue; EXCEPT the East 340 feet thereof, AND EXCEPT the South 30 feet for the Road. DESCRIPTION OF LEASED PREMISES: The leased premises shall consist of approximately 2,319 square feet, including common area, of space together with related parking facilities to be shared in common with other tenants of the Building. The parties acknowledge that the leased premises may be slightly more or less than the square footage figure stated above, but acknowledge and agree to accept and use the figure as accurate notwithstanding any discrepancies between actual and stated square footage figure. The parties further agree that any discovered discrepancy shall not impact the terms of this Lease. The Building and (10) parking facilities designated for Subtenant's use are outlined on a Site Plan attached hereto as Exhibit B. Any underground storage tanks of any description or use, known or unknown, whether wholly or only partially underground ( "USTs ") and all pipelines and other property appurtenant to any UST or used in connection therewith, and any substances within a UST or any pipeline or other property appurtenant to the UST or that have escaped or otherwise been released from a UST or any pipeline or other property appurtenant to the UST and their products or derivatives whether located on or off the Premises (collectively, "UST Appurtenances ") shall remain the property of Sublandlord. By reason of this Lease or otherwise, Subtenant has not acquired and does not lease any USTs or UST Appurtenances and shall have no responsibility to Sublandlord to discover, investigate, test, maintain, remove, report, abandon, or remediate any USTs or UST Appurtenances. In addition to use, occupancy and possession of the Premises, this Lease confers upon Subtenant the nonexclusive (in common with other tenants at the Premises) right to use the common areas as Sublandlord may designate. "Common areas" shall include sidewalks, landscaping, storage areas, restrooms, parking facilities and vehicle access designated for the use of the Building and its tenants, as shown on the Site Plan. Sublandlord reserves the right from time to time to establish reasonable rules and regulations related to the usage of the Common Areas. Sublandlord Initials: 1047 Subtenant Initials: EXHIBIT A EXHIBIT B -1 Site Plan (attached) 15 b6' -5' IOO' -I' .- 16' -10" , 27 -0" y 2T -�' 20 - 19' - 10' 51'-6' H -2' MAM PPP I -. i IIII . � _ _ A .110 AQA c, ♦ ♦. I I�IOOIY ARlA zw , �, . RlT1100M I O. 4 l i , _I* - --1 TOT 9FFGE � •. •�7E k -:-.. di • OFP IG! • al 40,00 5F \�: 1,462 Sr ' � ♦_♦ 92: 5F A I¢°LAE -AYSER \ .. , 7441;;IlitairTil - 5,535 5° 4 I QFF,GE I II7 ga �2 r �� -- _ T ' J ( 7 roLDMS DOOR ro DINS v OR 16' -10` , I6' -0' 1. 33' -'1' � 14 ' - I0/2' � 2H -b' -4 46'-4' 24)• SUITE 1 I,a62 S.F. SUITE #2 1,02: S.F. OFFICE #I 521 5.F. OFFICE #2 117 S.F. COMMON AREA #1 175 S.F. • COMMON AREA #2 56° S.F. GROUND FLOOR PLAN N SCALE: 1" = 20' - PA NO: 1414 EXISTING BUILDING PLAN: PIKE as-built nrpinrt.dwg • 2520 West Washington Avenue DATE 08.10.14 Yakima, WA 98902 Yakima Air Terminal / McAllister Field P 0 S T 0 h .503 KAIL DRIVE YAKIMA, WA 98908 T: 509. 961. 7404 F: 509. 972. 4121 ARCHITECTS A 1■ .. O Y IL W I u1 v Jl o 0 ALL - -. - __ - -. _. f p x o r ry i (�a> o 0 . () J in i c______=--------____--r-__J----r Af) -09031 IL / nPR4 1009 le pp in • k n i O - - -.- r _. 1 P ARKIN:J S" AC S 1 1 GROUND FLOOR BUILDING FOOTPRINT -- SCALE,: 1" = 20' -0" ' I! Y A K I M A A I R TERMINAL 2300 West Washington Ave. • Yakima, Washington 98903 • [509] 575 -6150 April 26, 1989 {7 ' -CFS t 1 t a l D c761 c j ( � P 7 , Mr. Al Deatley P.O. Box 10268 )-/-0 _ Yakima, WA 98909 Dear Al: Your lease with the Yakima Air Terminal specifies that: "LESSEE agrees to comply with all laws, ordinances, rules and regulations applicable to the use and operation of Yakima Air Terminal property, facilities and operations as those laws, ordinances, rules and regulations now exist or may hereafter become effective so as to apply to the occupancy and use by LESSEE of the leased premises and the conducting of LESSEE's operations thereon or therefrom." Accordingly, the following provisions will be deemed to be incorporated into and made a part of your existing lease. (1) In no event shall Lessee make any unlawful use of the premises or any portion thereof, specifically including but not limited to violation of any federal, state, or . local statute, regulation, or ordinance of or concerning the use, discharge, storage, application, or shipping of any hazardous substance, solid, or hazardous waste, or the like. As to all of the foregoing, Lessee covenants and agrees to defend, indemnify, and hold harmless Lessor from all costs, expenses, judgments, fines, remediation costs, inspections, spills, cleanup costs, penalties, and damages which might accrue as a result of breach of this section, whether the same might be incurred, suffered, or revealed during the term hereof or subsequent hereto. At the completion of the lease term, whether upon its scheduled termination date or upon earlier default or earlier expiration for any reason, Lessee shall remove each and every hazardous substance, solid, or hazardous waste, or the like, including storage containers for the same. The covenants and warranties in this section shall survive the termination of the lease. (2) Policy - It is the policy of the Department of Transportation that disadvantaged business enterprises as defined in 49 CFR Part 23* shall have the maximum opportunity to participate in the performance of leases as defined in 49 CFR Section 23.5. Consequently, these leases are subject to 49 CFR Part as applicable. :L. Lessee Obligation - The recipient's lessees, hereby, assure 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. Sub -lease Clause - All lessees, hereby, assure that they will include the above clauses in all sub - leases and cause sub- lessees to similarly include clauses in further sub - leases. * Includes firms owned and controlled by minorities and firms owned and controlled by women. If you have any questions, please don't hesitate to call. Sincerely, ,/ , ✓» 1 % : i rti Gary Robbins Airport Manager December 28, 1988 Albert and Iva DeAtley P. 0. Box 10268 Yakima, VA 78909 Mr. and Mrs. DeAtley: Enclosed is a photocopy of the Consent of the Yakima Air Terminal Board as Lessor, to the Assignment for Security Purposes of leasehold interests of certain property at the Yakima Air Terminal which is occupied by Leasing Unlimited, Inc,. The original consent is being sent with a copy of this letter directly to U.S Bank and is being accomplished as a courtesy to you and your sublessee. The Consent of Lessor is specifically conditioned upon your agreement to pay to the Yakima Air Terminal Board, to be retained by the Board as a security deposit, the sum of $1,177.58, which sum shall be paid forthwith, This sum represents one - twelfth of - thc cur, annual leasehold rent of $14,130,96, uhic.h deposit will be supplemented by you, as needed, from time to time in the future as the annual rent increases, if at all. The intenU of ' the parties is, and the deposit shall be utilized, if att all, as a payment against any default in payment of rent, and may be transferred from the status of a deposit to a payment against: past due rent concurrently with any notice of default in payment of rent sent out by. the Air Terminal Board as provided in the.' lease between the parties, the only change in that lease being. that there shall be 30 days written notice of the default in payment of rent given to U.9, Bank rather than the shorter period «egruired under the terms of the lease. As a specific precondition for reinstatement to the lease upon any default in payment of rent, the deposit of one- twelfth the annual rent reserve must be restored to the Air Terminal Board, L. , such that at all times during the existence of the assignment for secur`t; oses rp {� u in favor of U.S, Bank s or its assigns ot` ` `� r succea_o : the deposit equal one- twelfth of the annual sum L. r- -quired to be paid as o, ound rent Us the Airport. - t'he.'r signed b +, all parties this letter r,i11 be ceened to an F, amendment to the lease datad September 17th, 11937. r� /7 /1-- >77 //1 ce Willi,, F. Alc.ot Ct mo.. YAT Board - Albert E. r_:;t � p r ‘4 . h_ t r r r '. ti:. ('nn 4 { :_tnc=J, SE:creLary YAT °G'.r'Ci Tv_ ^, L + %;•rltl y AIRPORT RENTAL AGREEMENT THIS AGREEMENT, executed this / 7` day of �', 1 ; L , 1987, by and between the YAKIMA AIR TERMINAL BOARD, an agency of the City and County of Yakima, Washington (herein- after "Board "), and ALBERT E. DeATLEY and IVA R. DeATLEY, husband and wife (hereinafter "Lessees "): WITNESSETH: WHEREAS, the Board owns and operates the Yakima Air Terminal and has approved ground space available for lease as provided by this Agreement, and Lessees desire to occupy and use such ground space in accordance with this Agreement: 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. The Board does hereby lease and_,1,et unto Lessees, and Lessees do hereby hire and tak rom the Board, the \ ollowing described real prope. - , situated in Yakima County, State of Washington (.-- 'eafter "Premises "), which is more fu.ly described as •lows: (a) Lot " as show •n the attached plat map; (b) Lot 2's own on the attached plat map; (c) A div'. -,. right of usage of Lot 3 as shown on the attached pla map; a (d Lot 4 as sho•,n on the attached plat map, together 'ith the right of i+ to and egress from the lease. premises over and across" common public access ways. Les tees agree not to hinder aircraft or vehicle access to e airfield by other future or exist" g tenants. R -�{ S e= (fc'Ti ( .) ( t 2. TERM. The tenancy created by is Agreeirrent shall n commence October 1, 1987 and expire September 30, 2027. All rental payments shall be made monthly in advance. The first such payment shall be due on or before October 1, 1987. Any rental payment past due shall accrue a delinquency fee of eighteen percent (18 %) per annum. ! (- AIRPORT RENTAL AGREEMENT - 1 3. RENTAL . Rental x a'1 ,-71T- _y, -1.6./..,,.- 3.1 Rental Rates. 7 �' ` - -7 (a) Lot 1. The rental for Lot 1 shall -"be at -- - he rate of $0.10 per square foot per year, or $5,745.50 per year, payable in advance in monthly installments of $478.79; , g ov -ice\ 4 ,- -. w- � - - ,.. -•c 14.gation -- - pa - - eat -- X11 -- ot.3� <. a 'rwe rtee- i•i- •, i t.--;-:1t s 47,-- 19$- 77. t F (b) Lot'2. The rental for / Lot 2 shall be a.� the rate f $0.06 per/square foot per year, or $4,155.30 per year, payab e in advance in monthly''installments of $346.28;. - --revi ded, _= h!, the - - atefrt- hly-- : rcnta -_ - i f = Ma e4r — 7 -_ 1 - 3# -,-- e -- - - - - - i api su— Es t fa ., 4 C -T_ _ S 'r .• 7 3 -- ,..2YR:GY. u' - .i _ C r 3 °1 r- e ^ _ l • . - : - a.'• - - \- -__ - - - _ -' - - - When Lot 2 is developed and (if required) an\occusancy permit is granted for the permanent occupancy f %the improvements thereon, the annual rental shall increase to $0.085 per square foot, or $5,886.60 per year,/ paYable in advance in monthly install- ments of $490.56./ \� - a ._' = ' L - 4 � , Y.•' --!�= -' ' Lot 4. The rental for Lot 4 shall be at the rate of $0 per square foot per year, or $2,622.00 per year, payable in advance in m. thly installments of $218.51; r \ - --` -_ - • , - ' - • - _ -- = ;- When \Lot 4 is developed and (if quired) an occupancy permit\is granted for the perm vent occupancy of the improvements \thereon, the annual rem al shall increase to $0.075 per\square foot, or $ 916.48 per year, payable in advance in \monthly install - r�fents of $409.71. (d) Lot 3. Lot 3 actually c nsists of an easement and roadway area. The fixed rental s all not be subject to adjustment as hereinafter provided for the use of AIRPORT RENTAL AGREEMENT -- 2 Lot 3. It shall be the \ •li•.ti - On of Lessees to pay for all costs of repair and ma' en nce of the said roadway. it S 3.2 Rental---Rate Ad - e rental rates as provided for above shall -nded every five (5) years to reflect the industr'- land rent.- rate as set by the Yakima Air Termina :oard, subject to tht requirements of RCW 14.08.12'(5). 4. SPECIAL AGREEMENT WITH RESPECT TO LOT 5. As a part of the additional rental in consideration for this by !o. Rental Agreement, Lessees shall, when requested by the Board `` QS with respect to Lot 5, move the existing fence, pave the lot t „r,p? and provide drainage to allow for supplemental airport --- -Natrateth parking on said Lot 5, as shown on the attached plat G 'V map. See addendum to this section at page 11. 5. SPECIAL OPTION TO TERMINATE. A special option to terminate is granted to the Board to terminate this Agreement with respect to Lots 2 and 4. This right of termination may only be exercised by the Board if the Lessees have not made building improvements on the lot or lots, and at the time of the exercise, there is no valid building permit outstanding authorizing the construction of substantial building improvements on the said lot or lots. In order to exercise this right, the Board shall give to Lessees eighteen (18) months notice of its intent to terminate. During that 18 -month period, Lessees shall have the right to make a binding commitment to commence construc- tion of improvements on the lot or lots which are the subject matter of the notice. Upon the granting of the said written commitment to construct said building improvements on said lot or lots, said construction to be commenced before the end of the expiration of the 18 -month period, the Board's right of termination shall self- terminate, and this Agreement shall continue for the lot or lots which were the subject matter of the notice. AIRPORT RENTAL AGREEMENT - 3 6. TAXES AND LIENS. In addition to the rental reserved in section 3 of this Agreement, Lessees promise and agree to pay, as the same become due and payable, all license fees and taxes, including, but not limited to, the leasehold excise tax (RCW 81.20A) required to be paid by Lessees by reason of this Rental Agreement for Lessees' construction or ownership of improvements to the leased premises. Lessees shall neither suffer nor permit the attachment of any lien or other encumbrance on the leased premises by reason of Lessees' occupancy thereof. 7. USE. Lessee •romise and agree to use the leased S - t i premises for an a 'ation oriented activity. The use of the A premises for ny other purpose shall be deemed a material a r breach o his Agreement constituting grounds for its ter - minat io. at the option of the Board. ed1 8. IMPROVEMENT. All buildings and other improvements by Lessees to the leased premises shall conform to appli- cable construction codes as well as all applicable laws, regulations and directives of jurisdictional governmental entities, and Lessees shall procure all building and other permits therefor. All such improvements shall be designed with a view toward aesthetic considerations and shall include landscaping features; and work on any improvements shall not commence until plans and specifications therefor have been submitted to and approved by the Airport Manager. Lessees accept the property on an "as is" basis. Lessees agree to pay for any modifications necessary to the opera- tion of the Lessees' business. The Board makes no 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. AIRPORT RENTAL AGREEMENT - 4 9. MAINTENANCE OF LEASED AREA. Lessees shall be responsible to maintain all leased areas and improvements, existing and future, in an attractive and usable manner as determined by the Airport Manager. Maintenance shall include, but not be limited to weed control, snow removal and pavement maintenance. 10. AIRPORT SECURITY. Lessees shall construct and maintain approved temporary fences and /or barriers during construction to maintain the integrity of the Airport Security Plan. Upon completion of the construction phase, permanent security fences and gates shall be constructed as approved by the Airport Manager. 11. REVERSION OF IMPROVEMENTS UPON TERMINATION. Upon expiration or termination of the tenancy for any reason, all structures and other improvements placed upon the leased premises by the Lessees shall immediately revert to the Board, except for trade fixtures used in the ordinary course of business by Lessees or their subtenant, and affixed by Lessees or the subtenant. Lessees shall, as additional consideration for grant of the lease, insure that all liens and encumbrances against said improvements and structures, whether consensual or involuntary, shall be paid, discharged or satisfied prior to time for reversion thereof to the Board; and, in any event, the parties acknowledge that the Board shall not by virtue of termination of the leasehold interest nor reversion of the structures or other improve- ments be liable for any debt or encumbrance associated therewith. 12. SUBLETTING ASSIGNMENT. Lessees shall not assign nor otherwise transfer this Rental Agreement nor sublet the leased premises, or any part thereof, without first obtaining written consent of the Board; and such consent may be given or withheld at the discretion of the Board, but such consent shall not be unreasonably withheld. AIRPORT RENTAL AGREEMENT - 5 • 13. BOARD'S OPTION TO PURCHASE. Lessees shall notify the Board in writing in the event Lessees intend to sell any leasehold improvement(s) to a third party, which notice shall contain a copy of a contract for such sale binding the parties thereto except for the right of the Board to exer- cise this option. For a period of sixty (60) days after its receipt of such notice, the Board shall have the first right and option to buy the improvement(s) on the same terms and conditions as the intended sale. 14. INDEMNITY AND WAIVER. Lessees shall defend the Board against, and indemnify and hold the Board harmless from, every claim of any nature whatsoever made against the Board based on or arising from the occupancy of the leased premises by Lessees or from any act or omission of Lessees, its employees, agents or any other person acting on behalf of Lessees or under its direction. Lessees shall file with the Board a certificate of insurance, or other proof of insurance acceptable to the Board, evidencing an insurance policy with the Board, City of Yakima and County of Yakima as additional insureds providing comprehensive liability insurance coverage in amounts of not less than $250,000 for one person and $500,000 for any one accident involving injury to more than one person, with property damage insur- ance in the minimum amount of $250,000 for any one accident covering Lessees' occupancy of and activities pertaining to the leased premises. 15. REGULATIONS. Lessees agree to comply with all laws, ordinances, rules and regulations applicable to the use and operation of Yakima Air Terminal property, facil- ities and operations as those laws, ordinances, rules and regulations now exist or may hereafter become effective so as to apply to the occupancy and use by Lessees of the leased premises and the conducting of Lessees' operations thereon or therefrom. AIRPORT RENTAL AGREEMENT - 6 16. MISCELLANEOUS PROVISIONS. (a) The parties agree that the Board through its Airport Manager, or other person authorized by either of them, may enter upon the leased premises at any reasonable time to make such inspections as the Board may deem expedi- ent to the proper enforcement of any term, provision or condition of this Rental Agreement; provided no such entry and inspection by the Board is required by this Agreement, and the failure by the Board to enter and make inspection shall not alter the relationship of the parties and their respective rights and duties provided by this Agreement. The Lessees agree to provide the Airport Fire Station #4 with two (2) master keys to each of the Lessees' buildings to be used by Airport Police or Fire personnel in case of emergency during periods the building is unattended. (b) The Board may further develop or improve Yakima Air Terminal property and facilities as it deems desirable, regardless of the desire or views of Lessees in connection with any such development or improvement, and without interference or hindrance on the part of Lessees and without liability to Lessees. (c) The Board reserves the right, but shall not be obligated to Lessees, to maintain and keep in repair the landing area of the airport and all publicly owned facil- ities of the airport, together with the right to direct and control all activities of Lessees in that regard. (d) The Board reserves the right to take any action deemed necessary or desirable by the Board to protect the aerial approaches of the airport against obstruction, together with the right to prevent Lessees from erecting, or permitting to be erected, any building or other structure on the Yakima Air Terminal which, in the opinion of the Airport Manager, would limit the usefulness of the Yakima Air Terminal or constitute a hazard to aircraft. AIRPORT RENTAL AGREEMENT - 7 (e) During the time of war or national emergency, the Board shall have the right to lease the landing area or any part thereof to the United States Government for mili- tary use, and, if any such lease is executed, the provisions of this Rental Agreement shall be suspended insofar as they are inconsistent with the provisions of the lease agreement with the United States Government. (f) This Rental Agreement shall be subordinate to the provisions of any existing or future agreement between the Board and the United States of America relative to the operation or maintenance of the Yakima Air Terminal, the execution of which has been or may be required as a condi- tion precedent to the expenditure of federal funds for the development of the Yakima Air Terminal, and is further subordinate to applicable rights of eminent domain. 17. TERMINATION AND FORFEITURE. The failure by Les- sees to pay rental in the amounts and at the times specified herein, or the failure by Lessees to otherwise comply with any term, provision or condition of this Agreement shall constitute grounds for termination of this Agreement and the tenancy hereby created and for forfeiture of all rental paid by Lessees to the time of termination. This Agreement and tenancy shall terminate and rental paid shall be forfeited for cause as specified above on written notice by the Board to Lessees stating the amount of rental in default or other- wise comply with this Agreement in the manner specified in the notice within thirty (30) days from Lessees' receipt of - such notice (except three (3) days' notice for default in. r payment of rent), otherwise this Agreement and tenancy may, at Board's option, be terminated and rental forfeited. Such notice shall be given in writing and personally served on ` Lessees in the manner provided by law for service of summons and complaint, or mailed by certified mail with return AIRPORT RENTAL AGREEMENT - 8 receipt requested, addressed to Lessees at their address stated below Lessees' signature to this Agreement. Lessees' obligation to pay the remainder of rents due hereunder shall abate only to the extent rental income is received from a succeeding tenant, if at all. 18. NONDISCRIMINATION CLAUSE. In the event Lessees engage in service to the public in its business conducted on or from the leased premises, Lessees agree and promise to furnish such services to the public on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory dis- counts, rebates or other similar types of price reductions to volume purchasers of Lessees' services. Lessees further promise and agree that it will not, on the grounds of race, color or national origin, discriminate or permit discrimina- tion against any person or group of persons in any manner prohibited by federal law and regulations. Lessees' breach of any promise or agreement contained in this section shall constitute grounds for the termination of this Agreement, and in addition thereto, the Board shall have the right to take such other remedial action as the United States Government may direct. 19. INSOLVENCY. In the event Lessees are declared bankrupt by a court of competent jurisdiction or in the event Lessees make an assignment for the benefit of creditors, or if a receiver otherwise is appointed for Lessees, or in the event Lessees' leasehold estate is subject to execution to satisfy any judgment against Lessees, then in that event, the Board 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 Lessees or any person upon the premises and remove their effects, and thereupon this Rental AIRPORT RENTAL AGREEMENT - 9 Agreement shall terminate, but without prejudice to any remedies which might otherwise be available to the Board for collection of past due or future rent for any breach by Lessees of any covenants contained in this Agreement. 20. VENUE, ATTORNEY'S FEES. In the event of litiga- tion to enforce the rights and obligations hereunder, venue shall lie in Yakima County Superior Court, and the prevail- ing party shall be entitled to its reasonable attorney's fees in addition to court costs. 21. INTEGRATION. This document embodies the entire agreement of 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 Agree- ment. EXECUTED the day and year first above written. LESSEES: LESSOR: } YAKIMA AIR RM'INAL BOARD Albert E. DeAtley Willi. Al on, Chairman Veil; Iva R. DeAtl Don Heinen, Secretary Address: Address: P. O. Box 10268 2300 W. Washington Avenue Yakima, Wn. 98909 Yakima, WashinyLon 98903 (509) 575 -6149 STATE OF WASHINGTON ) ss. County of Yakima -I certify that I know or have satisfactory evidence that William F. Almon and Don Heinen signed this instrument, and on oath stated that they were authorized to execute this instrument and acknowledged it as the Chairman and Secretary AIRPORT RENTAL AGREEMENT - 10 of Yakima Air TeLminal Board to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED this ; r' d ay of:L..�_ ., _,,' , 1987. `T ' _ ,. --) /L_r - - ' Notary \Public in jand for the State of Washington, residing at - C_,•' Commission expires ,.__ - r,l - c/) STATE OF WASHINGTON ) ss. County of Yakima ) I certify that I know or have satisfactory evidence that ALBERT E. DeATLEY and IVA_ R. DeATLEY signed this instrument and acknowledged it to be their free and volun- tary act for the uses and purposes mentioned in the instru- ment. DATED this // day of ., /.y/ ! 1987. at, Pue i — 'n and for the tate of hi gton, residing a Co fission expires /,,F`y /' . i ADDENDUM TO SECTION 4. - SPECIAL AGREEMENT WITH RESPECT TO LOT 5. The actual cost to Lessees of such development (which shall be equivalent to the cost thereof to Superior Asphalt or another entity controlled f Ltl. by Lessees, and not retail cost) shall be reimbursed by the Board to v - f Lessees over a period of five years following completion of the im- provements, at no interest. Said reimbursement shall be in the form of f equal monthly installments allowed as a deduction ram, or credit against, the monthly rental payments required hereunder. c AIRPORT RENTAL AGREEMENT - 11 • . W.. 1 . . • ins ammoniailmirmint EI1M AVENUE _ • • 1 .' — . [1. ..S. n. 1:1 , . .� .........._.. , r ' Sr yF ,.. 6T aN AVENUE J k ..d.... 711. r- . fir "'." .�:...' ' J A, J t) �— \ \\‘‘ N gi / i Strive. can avo — L/ .- r. /.. ( #I / / `/ "N I N''.. • NN ' t l # �� \`A N, L OT ,� ■ / � 2 /\ \�. 255 9O. F. C, \- f r ., e / 1� FlIfUE J _ 4. kt s4. 41/4 1 / A t / / \ \ pa * ''k // �� 12.411 SO. FT. 1 c \ *44 am.nmss / / } \ \ k f 11 — 24TH MRCS LOT AVENUE # _ ! )I Ili iI!1 �,553S1. } 4 - :: { t 1 t 4 LOT LOT 13,500 SO. FT. 57, 455 SO. FT. c TT jf it i r EMPLOYEE PAWDL ..e KAPit; • . •-••••1/4 - , -- k or je--.\ a ''' PI' • AMENDMENT #1 - LEASE AGREEMENT ALBERT E. AND IVA R. DEATLEY 4 dba : 8 2 COMPANY a ss i o Aft"' C 7 cJ,e < - - / -Q/ THIS AMENDMENT, executed this �• day of 2001, 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 ALBERT E. AND IVA R. DEATLEY dba 82 COMPANY, a married couple, hereinafter referred to as "LESSEE ": W I T N E S E T H: 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, the Yakima Air Terminal - McAllister Field, as LESSOR and Albert E. and Iva R. Deatley dba 82 Company, LESSEE, entered into a Lease effective October 1, 1987, and WHEREAS, LESSOR has determined it to be in the best interests of the Airport to modify the following Sections of this Lease: 2. TERM NOW THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree that Section 2 is amended as follows: 2. TERM: The tenancy created by this Agreement shall commence October 1, 1987 and expire September 30, 2042. All rental payments shall be made monthly in advance. The first such payment shall be due on or before October 1, 1987. Any rental payment past due shall accrue FILENAME: LEASE /DEATLEY01 #1 1 a delinquency fee of twelve percent (12 %) per annum. Except as expressly amended by this document, all provisions, terms and conditions of the aforementioned Lease agreement effective October 1, 1987 between these parties shall remain in full force and effect. This amendment shall become effective February 1, 2001. Time is of the essence of this entire Lease. FILENAME: LEASE /DEATLEY01 #1 2 LESSOR: YAKIMA AIR TERMINAL - McALLISTER FIELD 2400 W. Washington Avenue Yakima, Washington 98903 Phone 509 -575 -6149 Fax 509 -575 -6185 lar Grego - ,xjw . B -rn4 , Chairman /` ir /' / Fred J. Iraola, Secretary STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence that Gregory P. Berndt 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. t`Sti?,'L, 4`pij Date a e a°� " f^'", � fib. V',' �ssicn ' . u f„* BY: ' "(( �. k: �� , o �m a' m Note y "Pubic : ° � OTAR '. Appointment Expire /.9 - /v- o Z_ ® ' °- rm • FU3i.s- aryl • tF�. 10 � „ '` • \ • ' :A` - o FILENAME: LEASE /DEATLEY01 #1 3 LESSEE: Albert E. and Iva R. Deatley dba: 82 Company PO Box 10268 Yakima, WA 98909 509 - 248 -682 40:„.../ / / f91'Zet- j G =6 1 a BERT E. DEATLE I V DATE STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence that Albert E. Deatley signed this instrument and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. Date: tint OF WASHINGTON /� / JOHN F. BENSON By: P� erc NOTARY PUBLIC Notary ublic COMMISSION EX IRES Appointment Expires � 3 JUNE I %t,. -t , /1 O % 1 2e - IVA R. DEATLEY / DATE STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence that Iva R. Deatley signed this instrument and acknowledged it to be her free and voluntary act for the uses and purposes mentioned in the instrument. Date: / 3 / D/ STATE OP WASHINGTON B JOHN F. BENSON Notary ublic NOTARY PUBLIC COMMISSION EXPIRES Appointment Expires 6� 63 JUNE 1, 2003 FILENAME: LEASE /DEATLEY01 #1 4 AMENDMENT #2 - LEASE AGREEMENT JANET DEATLEY LEDUC THIS AMENDMENT, executed this V (> day of ip]cp btr, 2002, 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 JANET DEATLEY LEDUC, 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, the Yakima Air Terminal - McAllister Field, as LESSOR and Janet Deatly Leduc, LESSEE, entered into a Lease effective October 1, 1987, amended February 1, 2001 which lease was assigned to LeDuc from Albert and Iva Deatley July 1, 2001 and WHEREAS, LESSOR has determined it to be in the best interests of the Airport to modify the following Sections of this Lease: 1. PREMISES 2. RENT NOW THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree that Section 1 is amended as follows: / 1 b? 1. PREMISES: J ? ' -c vita `� LESSOR does hereby lea -- and let unto LESSEE, and LESSEE does hereby lease and take from L ' SOR, approximately 52,385 square feet of real property at 2520 W Washint on Ave in the City of Yakima, Yakima County, Washington, (hereinafter "P - ises "), as depicted on the drawing marked Exhibit "A -1," attached h- - -to and by this reference made a part hereof, together with the right of ingre to and egress from the leased premises and the public use FILENAME: LEASE /LEDUCO2 #2 1 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. Premises Legal Description: That portion of the northwest quarter of Section 35, Township 13 North, Range 18 East, W.M., described as follows: Commencing at the southeast corner of said northwest quarter; Thence south 89 °45'12" west along the south line thereof 475.64 feet; Thence north 00 °03'19" west 30.00 feet to the point of beginning; Thence south 89 °45'12" west parallel with the south line of said northwest quarter 195.0 feet; Thence north 00 °03'19" west 268.65 feet; Thence north 89 °45'12" east 195.00 feet, Thence south 00 °03'19" east 268.65 feet to the point of beginning, Together with an easement for ingress and egress purposes said easement being a strip of land 40.00 feet in width and lying 20.00 feet on each side of the following described centerline; Commencing at the southeast corner of said northwest quarter; Thence south 89 °45'12" west along the south line thereof 458.64 feet; Thence north 00 °03'19" west 30.00 feet to the point of beginning of said centerline; Thence north 00 °03'19" west 369.95 feet to the point of curvature of a curve to the right having a radius of 90.00 feet; Thence northeasterly along said curve consuming a central angle of 45 °11'00" an arc length of 80.97 feet; Thence north 45 °07'41" east 11.45 feet to the southerly right of way of West Washington Avenue and the terminus of said centerline. Situate in the Count of Yakima, State of Washington. 3. RENT: t 74 - 07 .S t a Yh <� A. LESSEE promises and agrees to pay rent to LESSOR at e rate of $ 698.47 per month for the leased premises, made in advance or before the 10th day of each month. Payments shall be made to e Yakima Air Terminal - McAllister Field in care of the Airport Mana s office. Any rental payment FILENAME: LEASE /LEDUCO2 #2 2 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 on every five year anniversary of this Lease and shall be set at the then current Commercial Rate. This amendment shall become effective October 1, 2002. Time is of the essence of this entire Lease. FILENAME: LEASE /LEDUCO2 #2 3 LESSOR: YAKIMA AIR TERMINAL - McALLISTER FIELD 2400 W. Washington Avenue Yakima, Washington 98903 Phone 509 -575 -6149 Fax ,:' 509- 5 -6185 Greo y P. B-rndt, C airman Fred J. Iraola, Secretary STATE OF WASHINGTON County of Yakima (� -'mac I certify that I know or have satisfactory evidence that-Gregory-la: DcrnJt and Fred J. Iraola signed this instrument, on Ath that they were authorized to execute the instrument and acknowledged it as the eha " "ir`riza'n 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. [Tate . ,. By / c cc.-LJ e6»,. Notary' Pu1ic i Appointment Expik@s , r fa . /0 0 7 C F' i ,n;„a \A\ l g 5 ditii9:m 9 s Z ` . FILENAME: LEASE /LEDUCO2 #2 4 LESSEE: Janet Deatley Leduc PO Box 10268 Yakima, WA 98909 509 - 248 -6823 r , ( 0 E /SEAT Y LEDUC u DATE STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence that Janet Deatley Leduc signed this instrument and acknowledged it to be her free and voluntary act for the uses and purposes mentioned in the instrument. Date: /d y, o ?....- ' rr — By: �� s STATE OF WASHINGTON Notary Public JOHN F. BENSON Appointment Expires 6/03 NOTARY PUBLIC COMMISSION EXPIRES JUNE 1, 2003 FILENAME: LEASE /LEDUCO2 #2 5 . Exhibit A -1 Amendment #2 to lease agreement between the Yakima Air Terminal - McAllister Field and Janet Deatley LeDuce Effective date: October 1, 2002 Area: 52, 386.75 sq. ft. Lease Area Boundary S 89 1 45'12" E j / J ( f 195' (� 7 Area = 52,386.75 sq. ft. r Building ���� ♦ %J� % ♦ 40-0° -- -i • i; i � J i; i ♦�♦ i � i � i; i� i� i ♦� O i i ♦ 3i ♦ iO i i O♦ ♦♦ i i ♦ i iyi♦ i i� i ♦ ♦ ♦ i i �♦ ♦ i♦ i♦ i♦ i♦ i ♦i ♦ i♦ i♦ i♦ i♦ i ♦�♦ 2 • o ►i ♦♦ ♦ i O� Oi 0 ♦i ♦i ♦ ♦ ii♦ i �iO3�i ♦iO ♦i ♦ ♦i ♦i♦♦i � � ♦iii�iiOi;i� g ►i ♦i ♦i ♦i ♦ ♦i ♦i ♦i ` �i�i��i�ii ♦i�i� ■ ►,�i, ♦� pOOi ;vi ;J /\ s 89 0 45 1 12^E 195.0' ' a _— _- -_ - -_- 8 89 0 4592 "E South Line NW 114, Sec. 35 AMENDMENT #3 - LEASE AGREEMENT JANET DEATLEY LEDUC THIS AMENDMENT, executed this 3 day of August, 2007, 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 JANET DEATLEY LEDUC, 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, the Yakima Air Terminal - McAllister Field, as LESSOR, and Albert and Iva DeAtley, as LESSEE, entered into a Lease effective October 1, 1987, and amended February 1, 2001, which lease was assigned to Janet DeAtley Leduc from Albert and Iva DeAtley on July 1, 2001, and WHEREAS, LESSOR has determined it to be in the best interests of the Airport to modify the following Sections of this Lease: 1. PREMISES 2. RENT 7. USE NOW, THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree that Sections 1, 3 and 7 are amended as follows: 1. PREMISES: LESSOR does hereby lease and let unto LESSEE, and LESSEE does hereby lease and take from LESSOR, approximately 31,888 square feet of real property at 2520 W. Washington Avenue in the City of Yakima, Yakima County, Washington (hereinafter `Premises "), as 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 FILENAME: LEASE /LEDUCO2 #3 1 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. More specifically, as a result of eliminating LESSEE's parking rights on Parcel C and the north 20 feet of Parcel B, Parcel D has been added to the leased premises to be used by LESSEE for parking. 3. RENT: JBL i l A. LESSEE promises and agrees to pay rent to LESSOR at the rate of $ 42517 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. B. The lease rental rate as provided for above shall be subject to review and modification on every five year anniversary of this Lease and shall be set at the then current Commercial Rate. 7. USE A. LESSEE agrees to dedicate and allow to have marked the south 20 feet of the north parking area for a fire lane on Parcel B. B. LESSEE agrees to allow a 20 -foot electronic gate to be installed at the northwest corner of the existing building for security and limited access to taxi lane. C. LESSOR to mitigate an area of 20' x 184' on the east edge of the access lane for 18 parking spaces, this mitigation being in the form of adding Parcel D to the leased premises. LESSEE agrees to pave and maintain the parking area (Parcel D) in a good state of repair and maintenance, ordinary wear and tear excepted. D. LESSOR and LESSEE agree that the taxi -lane (Parcel C) will be a private common use of the tenants (of Parcels A and B) and the tenants shall share equally, one -half each, in all asphalt maintenance (including crackseal and snow removal). It is understood that there are now an electrical transformer and light standards on Parcel C. If these items or fixtures are required to be modified or removed for the purpose of using the taxi -lane, tenant shall have no responsibility for such removal or modification and either LESSOR, or its other FILENAME: LEASE/LEDUCO2 #3 2 tenants, shall be responsible for such modifications and; /or removal of improvements. CONSENT TO LEASE. LESSOR does hereby consent to the Commercial Sublease made by LESSEE with Granite Northwest, Inc., a Washington corporation, as subtenant, dated May 29, 2007, and also to LESSOR leasing temporary office space for SUPR Co., a Washington corporation. This amendment shall become effective August 1, 2007. Time is of the essence of this entire Lease. LESSOR: YAKIMA AIR TERMINAL - McALLISTER FIELD 2400 W. Washington Avenue Yakima, Washington 98903 (509) 575 -6149 - phone (509) 575- 6185 - fax By: A l , ■ William Wheeler, Chairman " Eisr . - %@O BY: S ...... .. /.t ; 7::::: .. Jim- Adafns, "' Vice - Chairman = c „ mm xp . _ f 0mq,s no 10 K = rap {ber 2:0:„.4..„. STATE OF WASHINGTON ) 7•• � . • �0 • ) ss. iiillii County of Yakima ) I certify that I know or have satisfactory evidence that William Wheeler and Jim Adams signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the Chairman and the 2nd Vice- Chairman, 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 2 j . Notary Public : 4 for the state of Washingtonn s ing at Youl m 7 My appointment expires IN -0 FILENAME: LEASE /LEDUCO2 #3 3 LESSEE: Janet DeAtley Leduc P.O. Box 10147 Yakima, WA 98909 Phone: 206- 285 -0514 Fax: 206- 285 -3636 JA : DEATLEY LEDUC DATE STATE OF WASHINGTON ss. County of Yakima ) I certify that I know or have satisfactory evidence that Janet DeAtley Leduc signed this instrument and acknowledged it to be her free and voluntary act for the uses and purposes mentioned in the instrument. Date: /07 -- 4,,,, Notary Public in and for the st to of 0\a ew °; Washington, residing at Ever tf My appointment expires $1 r 1,7O /J Slnp_ , FILENAME: LEASE/LEDUCO2 #3 4 N N Parcel A N 58,890 sq. ft. NNN i Surgi Mark, Inc. 4„.,„ Lease agreement Parcel B 28,208 sq. ft. • Janet DeAtley Leduc Lease Amendment Parcel C 23,882 sq. ft. it r , , Common Taxi -Lane Parcel D N 3,680 sq. ft. - Janet DeAtley Leduc Lease Amendment c . Parcele-B i'iiii0iii•�•iiiiOiNi•J A0 -0• � � I ii•OiiiOJJ�•Oi•i•••i0•:1 r O•i iJiii•i••'JJi % i � i p� % % � � i� i� iii0 • J i • i • i • i • i • i • i• i • i • i • •ii7• i• ii • i• i 1 . Parcel �:t:0:: = ::::� �O 7 -27 -2007 e .••,.•..,• C �4J.J.d04.•J.O4� i 4 +XA %i0 : %%%J1 0:40:40:4:44 : • i O i i •• i 44 � i f 44:444% 'Oi M4 O i0 • i O ° iii I a$: w . c L__ i 19$ 1 1 iiill �i III I VIII I III II II hill l I1 Hi l II I lI�� • FILE# 7822594 RETURN TO: YAKIMA COUNTY, WA 10/31/2013 03 :10:27P11 STOKES LAWRENCE AGREEMENT VELIKANJE, MOORE & SHORE PAGES: 9 Attention: Dustin E. Yeager FIDELITY TITLE COMPANY 120 N. Neches Avenue Yakima, Washington 98901 -2757 Recording Fee: 60.00 AGREEMENT re ASSIGNMENT OF LEASES AND CONSENT Reference No(s). of related documents: Grantor(s): (1) CITY OF YAKIMA (2) LEDUC, JANET DEATLEY (3) D.A. ARTHUR, INCORPORATED Grantee(s): (1) CITY OF YAKIMA (2) LEDUC, JANET DEATLEY (3) D.A. ARTHUR, INCORPORATED �y Assessor's Tax Parcel ID No(s).: 181335 24900; 181335 - 24033 Q (,{L X Prn NW 1 1 S T *4 8 Q 1 I l � l,tial on L ktbrl' A EFFECTIVE DATE: A .53 , 2013 PARTIES: JANET DEATLEY LEDUC, an individual (referred to in this Agreement as "LeDuc ") D.A. ARTHUR, INCORPORATED, a Washington corporation (referred to in this Agreement as "D.A. Arthur ") CITY OF YAKIMA, a municipality (referred to in this Agreement as the "City") AGREEMENT. FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND ADEQUACY HEREBY ACKNOWLEDGED, THE UNDERSIGNED PARTIES AGREE AS FOLLOWS: I. Definitions. L1 Subject PSA. The term "Subiecl PSA," when used in this Agreement, means and refers to the Purchase and Sale Agreement dated September 20, 2013, by and between LeDuc and D.A. Arthur for LeDuc's sale, assignment, and transfer of the Airport Lease, MedAssets Lease, ArgenTech Lease, and the Subject Building to D.A. Arthur. Error! Reference source not found. \ 1215839.docx 1.2 Airport Lease. The term "Airport Lease," when used in this Agreement, means and refers to the Airport Rental Agreement dated September 17, 1987, by and between the Yakima Air Terminal Board (as lessor)' and Albert E. DeAtley and Iva R. DeAtley (as lessees)' and each amendment thereto, to wit: Amendment #1 dated February 22, 2001, Amendment #2 dated September 26, 2002, Amendment #3 dated August 23, 2007, and Addendum to Amendment #3 of Airport Lease Agreement, dated October 22, 2013. 1.3 MedAssets Lease. The term " MedAssets Lease," when used in this Agreement, means and refers to the Sublease Agreement dated June 30, 2010, Commencement Date Agreement dated September 17, 2010, Consent to Sublease dated the day of , 2012, 2012 Sublease Amendment dated May 9, 2012, Resolution No. YAT -R- 2012 -019 adopted by the Airport Board May 21, 2012, and 2012 Sublease Second Amendment dated September 14, 2012. 1.4 ArgenTech Lease. The term " ArgenTech Lease," when used in this Agreement, means and refers to the Sublease Agreement dated August 14, 2012, Addendum to Sublease Agreement dated August 15, 2012, Consent to Sublease dated August 27, 2012 and 2012 Sublease Amendment dated September 17, 2012. 1.5 Subject Building. The term "Subject Building," when used in this Agreement, means and refers to all of LeDuc's transferable right, title, and interest in and to the structures and other improvements placed upon the Yakima County, Washington, real estate leased under the Airport Lease by LeDuc (and LeDuc's predecessors -in- interest under the Airport Lease), including, without limitation, the approximate 10,109 square foot building now situated on said real estate'. 2. Assignment and Assumption. Simultaneously with their execution of this Agreement, LeDuc and D.A. Arthur will also execute the Bill of Sale and Assignment of Leases attached as Exhibit A (the "Assignment"). LeDuc and D.A. Arthur will cause a copy of this Agreement and the Assignment to be delivered to the City after they are fully executed and D.A. Arthur's purchase of the Subject Building has closed. 3. Consent and Release. Pursuant to Section 12 of the Airport Lease and subject to LeDuc and D,A. Arthur executing this Agreement and the Assignment, the City hereby (a) consents to the assignment of all of LeDuc's right, title, interest, and obligations in and under the Airport Lease, MedAssets Lease, and ArgenTech Lease to D.A. Arthur and (b) releases LeDuc from all obligations owed under the Airport Lease and in connection with the MedAssets Lease and ArgenTech Lease. 4. Waiver. Subject to LeDuc and D.A. Arthur executing this Agreement and the Assignment, the City hereby consents to LeDuc's sale of the Subject Building to D.A. Arthur under the terms of the Subject PSA and waives the City's right under Section 13 of the Airport Lease to purchase the Subject Building as a result of said contemplated transaction. 5. Confirmation of Term. The undersigned parties acknowledge and confirm that the tenancy created and existing under the Airport Lease, as set forth in Section2 of Amendment #1 of the Airport Lease, expires on September 30, 2042. 6. General Terms. 6.1 Exhibits. There are no attachments to this Agreement except for the exhibit(s) expressly referenced in this Agreement, each of which constitutes a part of this Agreement as if set forth in full herein. The City is the successor -in- interest to all of the Yakima Air Terminal Board's right, title, and interest in and under the Airport Lease. 2 LeDuc is the successor -in- interest to all of Albert E. DeAtley and Iva R. DeAtley's right, title, and interest in and under the Airport Lease. 3 The Subject Building is located on Yakima County Assessor Parcel No. 181335- 24900, Error! Reference source not found. \ 1215839.docx 2 1 6.2 Amendment. This Agreement may be amended only by the written agreement of each of the parties to this Agreement. 6.3 Binding Effect All of the provisions of this Agreement will inure to the benefit of and be binding on the successors and assigns of the parties to this Agreement. 6.4 Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties to this Agreement with respect to its subject matter. All prior agreements, understandings, or representations with respect to this Agreement's subject matter are hereby canceled in their entirety and are of no further force or effect. It is expressly acknowledged that there are no oral or other agreements which modify or affect this Agreement. EXECUTED effective as of the Effective Date first stated above. D.A. ARTIER, INCORPORATED . i r r ,� ,.0 / I AS By; �� . w A tit /NSLII' Daniel A. Day, 'resident JANE III ATLEY LEDUC, individually CITY OF YAEIMA Or All By L mo ony t ' ourke, City Manager Error! Reference source not found. \ 1215839.docx 3 STATE OF WASHINGTON ) ) ss. COUNTY OF YAKIMA ) I certify that I know or have satisfactory evidence that DANIEL A. DAY is the person who appeared before me and said person acknowledged that said person is authorized to execute the instrument, and acknowledged as President for D.A. ARTHUR, INCORPORATED it to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. ,,,,Aft. / yt �, / Given under my hand and official seal thi O 4 • + t 'a 4 . ‚ c p7» 4 !/}} I. [PRINT NAMEPYI n l CA % Ls NOT ¥ PUBLIr for the state of Washington resid ng at 5�' My ppointm entexpires: `7l/AO/ . • 14 ST f '11�YR' Of , STATE OF WASHINGTON ) k..s ) ss. COUNTY OF YAKIMA ) On this day personally appeared before me JANET DEATLEY LEDUC, to me known to be the individual described in and who executed the within and foregoing instrument, and acknowledged that the person signed the same as the person's free and voluntary act and deed, for the uses and purposes therein mentioned. Given under my hand and official seal this 30 day of 0 All <- , 20 IS . e i 7Ai- -- //� T a WkF , '• [P' y; E] e1 °5 e' I f.S %% ; a e 0 o T A $ V ;O NOTARY PUBLIC for the state of Washington, residing • • • a t 1tt; a a.�'{- Myr151011 s �`( / My appom"i ment expires: 0„ tS t Z 016 s U 'SLIC a l's... •° Op WA Error! Reference source not found. \ 1215839.docx 4 STATE OF WASHINGTON ) ) ss. COUNTY OF YAKIMA ) I certify that I know or have satisfactory evidence that TONY O'ROURKE is the person who appeared before me and said person acknowledged that said person is authorized to execute the instrument, and acknowledged as the City Manager for the CITY OF YAKIMA it to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. ,�,pp4 ^ Given under my hand and official seal this a of e ,, 2 d ( Ff [PRINT NAME t ri /O A ;" NOTARY ' I = NOT P LIC for the f Washington, residing o': PUBLIC 12 at ( g g i °P AH o Error! Reference source not found. \ 1215839.docx 5 EXHIBIT A BILL OF SALE AND ASSIGNMENT OF LEASES EFFECTIVE DATE: , 2013 PARTIES: D.A. ARTHUR, INCORPORATED, a Washington corporation 220 W. Yaldma Avenue Yakima, Washington 98902 (referred to in this Bill of Sale as "Buyer") JANET DEATLEY LEDUC, an individual 1602 Bigelow Avenue N. Seattle, Washington 98109 (referred to in this Bill of Sale as "Seller ") SUBJECT PSA. The term "Subject PSA," when used in this Bill of Sale, means and refers to the Purchase and Sale Agreement dated September 20, 2013, by and between Buyer and Seller for the sale, assignment, and transfer of the below - described Airport Lease, MedAssets Lease, ArgenTech Lease, and the Subject Building. AIRPORT LEASE. The term `Airport Lease," when used in this Bill of Sale, means and refers to the Airport Rental Agreement dated September 17, 1987, Amendment #1 dated February 22, 2001, Amendment #2 dated September 26, 2002, and Amendment #3 dated August 23, 2007, attached as Exhibit A to the Subject PSA, and Addendum to Amendment #3 of Airport Lease Agreement, dated October 22, 2013. MEDASSETS LEASE. The term " MedAssets Lease," when used in this Bill of Sale, means and refers to the Sublease Agreement dated June 30, 2010, Commencement Date Agreement dated September 17, 2010, Consent to Sublease dated the _ day of , 2012, 2012 Sublease Amendment dated May 9, 2012, Resolution No. YAT -R- 2012 -019 adopted by the Airport Board May 21, 2012, and 2012 Sublease Second Amendment dated September 14, 2012, attached as Exhibit B to the Subject PSA. ARGENTECH LEASE. The term ' ArgenTech Lease," when used in this Bill of Sale, means and refers to the Sublease Agreement dated August 14, 2012, Addendum to Sublease Agreement dated August 15, 2012, Consent to Sublease dated August 27, 2012 and 2012 Sublease Amendment dated September 17, 2012, attached as Exhibit C to the Subject PSA, SUBJECT BUILDING. The term "Subject Building," when used in this Bill of Sale, means and refers to all of Seller's transferable right, title, and interest in and to the structures and other improvements placed upon the Yakima County, Washington, real estate leased under the Airport Lease by Seller (and Seller's predecessor(s) -in- interest under the Airport Lease), including, without limitation, the approximate 10,109 square foot building now situated on said real estate ASSIGNMENT AND TRANSFER For and in consideration of Ten and No /I00 Dollars ($10.00) and other good and valuable consideration, the receipt and adequacy being acknowledged, Seller hereby assigns, transfers, and delivers to Buyer and Buyer hereby assumes and receives from Seller the Subject Building and all of Seller's right, title, interest, and obligations in and under the Airport Lease, MedAssets Lease, and ArgenTech Lease in accordance with and subject to the following terms and conditions and those terms and conditions set forth in the Subject PSA: 4 The Subject Building is located on Yakima County Assessor Parcel No. 181335- 24900. However, Buyer acknowledges that not all of Parcel No. 181335 -24900 is leased under the Airport Lease. Error! Reference source not found. \ 1215839.docx 6 (a) The Airport Lease, MedAssets Lease, ArgenTech Lease, and Subject Building are assigned and transferred by Seller to Buyer "AS IS" and WITHOUT ANY WARRANTY OF QUALITY, WARRANTY OF MERCHANTABILITY, OR WARRANTY OF FITNESS FOR ANY PURPOSE; and (b) Seller represents and warrants that (a) Seller is the lawful owner of the Subject Building, and (b) the Subject Building is free of all claims and encumbrances; provided, however, Buyer and Seller acknowledge that the Subject Building is located on real property owned by a third party that is now leased under the Airport Lease and subject to the terms of the Airport Lease, MedAssets Lease, and ArgenTech Lease. .. EXECUTED as of the Effective Date first written above. D.A. ART ' IN. ORPORATED • By: 4 � 1 411 4 . y : r ► 1 Daniel A. Day, Pr sident J • off! 'r • " LEDUC, individually Error! Reference source not found. \ 1215839.docx 7 EXHIBIT 1 • Legal Description 'Parcel B" That portion of the Northwest Quarter of Section 35, Township 13 North, Range 18 East, W.M. described as follows: Commencing at the Southeast corner of said Northwest Quarter; .Thence South 89°45'12" West along the south line thereof 475.64 feet; Thence North 00°03'19" West 30.00 feet to the Point of Beginning; Thence South 89 °45'12" West 106.10 feet; Thence North 00 °03' 19" West 265.86 feet; Thence North 89°45'12" East 106.10 feet; Thence South 00°03'19" East 265.86 feet to the Point of Beginning. Situate in Yakima County, Washington and containing 28,208 Square Feet. Legal Description "Parcel D" That portion of the Northwest Quarter of Section 35, Township 13 North, Range 18 East, W.M. described as follows: Commencing at the Southeast corner of said Northwest Quarter; Thence South 89°45'12" West along the south line thereof 438.64 feet; Thence North 00 °03' 19" West 40.00 feet to the Point of Beginning; Thence North 89°45'12" Fast 20.00 feet; Thence North 00°03'19" West 184.00 feet; Thence South 89°45'12" West 20.00 feet; Thence South 00°03'19" East 184.00 feet to the Point of Beginning. Situate in Yakima County, Washington and containing 3,680 Square Feet. 53069-001\ 12I5647.docx 4 IIIi II 11111 I I IIII 11111 11111 1111 111111 IT 1111 FILE# 7822593 YAKIMA COUNTY, WA RETURN TO: 10/31/2013 03:10:2611 AGREEMENT STOKES LAWRENCE PARES: 4 VELIKANJE, MOORE & SHORE FIDELITY TITLE COMPANY Attention: Dustin E. Yeager 120 N. Naches Avenue Recording Fee: 75.00 Yakima, Washington 98901 -2757 ADDENDUM TO AMENDMENT #3 OF AIRPORT LEASE AGREEMENT . j)1, Reference No(s). of related documents: Grantor(s): (1) CITY OF YAKIMA (2) LEDUC, JANET DEATLEY Grantee(s): (1) CITY OF YAKIMA (2) LEDUC, JANET DEATLEY Abbreviated Legal Description: Pm. NW1/4 535 TI3N R1S EWM. Complete legal description is on Exhibit . A of this document. Assessor's Tax Parcel ID No(s).: 181335- 24900; 181335 - 24033 EFFECTIVE DATE: October 22, 2013 PARTIES: JANET DEATLEY LEDUC, an individual (referred to in this Addendum as "LeDuc ") CITY OF YAKIMA, a municipality (referred to in this Addendum as the "City") AIRPORT LEASE. The term "Airport Lease," when used in this Addendum, means and refers to the Airport Rental Agreement dated September 17, 1987, by and between the Yakima Air Terminal Board (as lessor) and Albert E. DeAtley and Iva R. DeAtley (as lessees) and each amendment thereto, to wit: Amendment #1 dated February 22, 2001, Amendment #2 dated September 26, 2002, and Amendment #3 dated August 23, 2007. I The City is the successor -in- interest to all of the Yakima Air Terminal Board's right, title, and interest in and under the Airport Lease. 2 LeDuc is the successor -in- interest to all of Albert E. DeAtley and Iva R. DeAtley's right, title, and interest in and under the Airport Lease. 53069-001\ 1215647.docx 1 BACKGROUND. In Amendment #3 of the Airport Lease, LeDuc and the City's predecessor -in- interest • under the Airport Lease, among other things, amended and restated the real estate that was leased by LeDuc under the Airport Lease, which is described therein as "Parcel B" and "Parcel D" and generally depicted on Exhibit A of said Amendment #3. This Addendum is now entered into for the purpose of legally describing the location of said "Parcel B" and "Parcel D." ADDENDUM. FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND ADEQUACY HEREBY ACKNOWLEDGED, THE UNDERSIGNED PARTIES AGREE AS FOLLOWS: I. Effect of Addendum. This Addendum amends, supplements, and is made part of Amendment #3 of the Airport Lease. In the event of a conflict between the provisions of this Addendum and Amendment #3 of the Airport Lease, the provisions of this Addendum will control. Nevertheless, except as expressly amended or supplemented by this Addendum, the provisions of the Airport Lease, and specifically Amendment #3 of the Airport Lease, remain in full force and effect. 2. Legal Description of Parcel B and Parcel D. The "Premises" described in Section 1 of Amendment #3 of the Airport Lease consists of "Parcel B" and 'Parcel D" as described therein and depicted on Exhibit A thereof. Moreover, the locations of "Parcel B" and "Parcel D" are legally described as set forth on attached Exhibit 1 of this Addendum. 3. General Terms. 3.1 Exhibits. There are no attachments to this Addendum except for the exhibit(s) expressly referenced in this Addendum, each of which constitutes a part of this Addendum as if set forth in full herein. 3.2 Amendment This Addendum may be amended only by the written agreement of each of the parties to this Addendum. 3.3 Binding Effect All of the provisions of this Addendum will inure to the benefit of and be binding on the successors and assigns of the parties to this Addendum. 3.4 Entire Agreement This Addendum constitutes the entire understanding and agreement of the parties to this Addendum with respect to its subject matter. All prior agreements, understandings, or representations with respect to this Addendum's subject matter are hereby canceled in their entirety and are of no further force or effect. It is expressly acknowledged that there are no oral or other agreements which modify or affect this Addendum. EXECUTED effective as of the Effective Date first stated above. CITY OF YAKIMA 4 f Gs..• B ,11Wr/il Tony O 'uurke, City Manager JANET rt ATLEY LEDUC, individually . 53069 -001\ 1215647.docx 2 STATE OF WASHINGTON ) ) ss. COUNTY OF YAKIMA ) I certify that I know or have satisfactory evidence that TONY O'ROURKE is the person who appeared before me and said person acknowledged that said person is authorized to execute the instrument, and acknowledged as the City Manager for the CITY OF YAKIMA it to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Given under my hand and official seal thi day of 0e-- � , 20� \\` \`�otuumniniwii iiii 0_Aa - +e / -Th CIL, � � V P��ds S i /YF'. «4 / �+ I f p D ( c • ? p'�ARY \ i [PRINT NAME] O % tom- ]- r 1 C e g. i : � ▪ PUMP A1 NOTARY • :LI or state o W ,cam C, O 14W 15 `6% residing at ....t! Skis i � ' O F WAS T' +0� 8 ��`` My appointment expires: �✓ STATE OF WASHINGTON ) ss. COUNTY OF YAIA ) On this day personally appeared before me JANET DEATLEY LEDUC, to me known to be the individual described in and who executed the within and foregoing instrument, and acknowledged that the person signed the same as the person's free and voluntary act and deed, for the uses and purposes therein mentioned. t Given under m y hand and o f f i c i a l seal this SO day of do ; C , 2 0 t ! ' . t p7•00,, / it10TAA.4 [P' ov VAME] Clo.Seel IVA '.1 ti • 1$ 2014 s' NOTARY PUBLIC for the state of Washington, • • ! PUBLIC •� residing at k:1 r ,..,.4„ . • . My appointment expires: Pt r 1 S 2 al& . 0 o 000.s t WASH mmi 53069 -001\ 1215647.docx 3 EXHIBIT 1 Legal Description "Parcel B" That portion of the Northwest Quarter of Section 35, Township 13 North, Range 18 East, W.M. described as follows: Commencing at the Southeast comer of said Northwest Quarter; Thence South 89°45'12" West along the south line thereof 475.64 feet; Thence North 00°03'19" West 30.00 feet to the Point of Beginning; Thence South 89 °45' 12" West 106.10 feet; Thence North 00°03'19" West 265.86 feet; Thence North 89°45'12" East 106.10 feet; Thence South 00°03'19" East 265.86 feet to the Point of Beginning. Situate in Yakima County, Washington and containing 28,208 Square Feet. Legal Description "Parcel D" That portion of the Northwest Quarter of Section 35, Township 13 North, Range 18 East, W.M. described as follows: Commencing at the Southeast corner of said Northwest Quarter; Thence South 89 °45'12" West along the south line thereof 438.64 feet; Thence North 00°03'19" West 40.00 feet to the Point of Beginning; . Thence North 89°45'12" East 20.00 feet; Thence North 00°03'19" West 184.00 feet; Thence South 89°45'12" West 20.00 feet; Thence South 00°03'19" East 184.00 feet to the Point of Beginning. Situate in Yakima County, Washington and containing 3,680 Square Feet. 53069 -001\ 1215647.docx 4