HomeMy WebLinkAbout2956 (2) 1 RESOLUTION NO 2 9 5 6
2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN,
3 WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE
' CONSENT OF CITY TO SUBLEASE PREMISES AT AUBURN MUNICIPAL
4 _AIRPORT BETWEEN THE CITY AND AUBURN FLIGHT SERVICES, INC
5'
6 WHEREAS, pursuant to Section 18 of the Lease Agreement
entered into between the CITY OF AUBURN and SKY SERVICES,, INC
8 as amended, the CITY must consent to any assignment or
9 sublease of any part of the premises located at the Auburn
10 Municipal Airport; and
11 WHEREAS, SKY SERVICES, INC has requested permission to
12 enter into a sublease with AUBURN FLIGHT SERVICES, INC
13 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
14 WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, HEREWITH
"
15 RESOLVES AS FOLLOWS
16 Section 1 The Mayor and City Clerk of the City of
17 Auburn are herewith authorized to execute Consent of City to
18 Sublease A copy of said Consent is attached hereto,
19 denominated as Exhibit "A" and made a part hereof as though
20 set forth in full herein
21 Section 2 The Mayor is hereby authorized to implement
22 such administrative procedures as may be necessary to carry
23 out the directives of this legislation
24
25
26
Resolution No 2956
April 30, 1998
Page 1
1 DATED this 4`h day of May, 1998
2
3 CITY OF AUBURN
4
6 CHARLES A BOOTH
MAYOR
7
8
9 ATTEST
10
11
12
Danielle E Daskam,
13 City Clerk
14
15
APPROVED AS TO FORM
16
17
18
Michael J eynolds,
19 City Attorney
20
21
22
23
24
25
26
Resolution No 2956
April 30, 1998
Page 2
CONSENT OF CITY TO SUBLEASE
PURSUANT to Section 18 of the Lease Agreement entered
into between the CITY OF AUBURN and SKY SERVICES, INC as
amended, the CITY must consent to any assignment or sublease
of any part of the premises SKY SERVICES, INC. , whose
address is 1725 "E" Street Northeast, Auburn, WA 98002 , has
requested permission to enter into a sublease with AUBURN
FLIGHT SERVICES, INC. , whose address is 506 23`d Street
Northeast, Auburn, WA 98002
THE CITY hereby consents to the sublease, with the
following conditions
1 The sublessee shall incorporate into the sublease
the following provisions of the Lease Agreement
between the CITY and SKY SERVICES, INC , including
all amendments to the Lease Agreement public
liability insurance requirements, indemnification,
use of public airport facilities, maintenance and
repairs, cleanliness and waste, personal property
taxes, and property insurance and waiver of
subrogation Sublessee shall be required to
comply with all of the above-mentioned provisions,
including but not limited to, the insurance
requirements of the Lease Agreement as amended in
Consent to Sublease Auburn Flight
Resolution No 2956 Exhibit 'A
April 30, 1998 Ic\agree\ccs-af}
Page 1
naming the CITY as additional insured Sublessee
shall provide a Certificate of Insurance to the
CITY prior to commencing occupancy under the
sublease
2 Sublessee shall agree to defend, indemnify and
hold the CITY harmless under the indemnification
provisions of the Lease Agreement as amended
3 The term of the sublease shall not exceed the term
of the Lease Agreement, as amended
4 A copy of the signed sublease shall be filed with
the CITY prior to occupancy VA
DATED this Pp day of May, 1998
CITY OF AUBURN
CHARLES A BOOTH
MAYOR
ATTEST
4
Dan lie E Daskam,
City Clerk
Consent to Sublease Auburn Flight
Resolution No 2956 Exhibit 'A
April 30, 1998 {c\agree\ccs-af)
Page 2
APPROVED AS TO FORM
ichael' Y
Re nolds,
City Attorney
AUBURN FLIGHT SERVICES, INC
BY / pB i6 .'V;ete_ —
Title -pjn,(p(l„..Zi
STATE OF WASHINGTON )
) ss
COUNTY OF KING
On this ,�.N day of u%� , 1998, before
me, the undersigned, a Notary Public in and for the State of
Washington, duly commissioned and sworn, personally appeared
to me known to the
At:57lye,-/< , of AUBURN FLIGHT SERVICES,
INC , who executed the within and foregoing instrument, and
acknowledged the said instrument to be the free and
voluntary act and deed of said AUBURN FLIGHT SERVICES, INC. ,
for the uses and purposes therein mentioned, and on oath
stated that he is authorized to execute said instrument on
behalf of said AUBURN FLIGHT SERVICES, INC
IN WIII SS WHEREOF, I have hereunto set my hand and
affix A-7) i @ a1 seal on/2h date /hh�erei above set forth
1.;:r ��S Nvto 'Jo'?
1 �Z r�iCl i tom” /� � `,✓"
`r$QTAR p S //,CCU �J 1 -r,-J�e�J
ti ; NOTARY PUBLIC in and for the State
PUBLIC ; of Washington, residing at //JRJ/I
� 7e o �
"' S MY COMMISSION EXPIRES /oZ -2f D/
1(y 29 I °F WASO
Consent to Sublease Auburn Flight
Resolution No 2956 Exhibit 'A
April 30 1998 [c\agree\ccs-af)
Page 3
. --
SKY SERVICES, INC. LEASE
with
AUBURN FLIGHT SERVICES, INC.
TABLE OF CONTENTS
Section Title Page
1 Basic Lease Terms. 1
2 Pemises .2
3 Term .2
4 Rent .2
5 Prepaid Rent. .2
6 Deposit. .3
7 Use of Premises and Project Facilities .3
8 Signage .3
9 Personal Property Taxes .3
10 Parking. .3
11 Utilities .3
12 Maintenance. 4
13 Alterations. 4
14 Release and Indemnity 4
15 Insurance. 4
16 Destruction. .5
17 Condemnation. .5
18 Assignment or Sublease. V . . .6
19 Default .6
20 Remedies. 7
21 Entry on Premises. .8
22 Subordination. .8
23 Notice. .9
24 Waiver .9
25 Surrender of Premises;Holding Over. .9
26 Mortgagee Protection. 10
27 Limitation of Liability 10
28 Miscellaneous Provisions. 10
29 Toxic or Hazardous Substances. . .1
30 Other 11
31 Execution of Agreement by Corporation and Guaranty l 1 I
32 City Rules and Regulations. 12
33 No Smoking 12
34 Early Termination and First Right of Refusal to Purchase or Lease Entire Project. 12
35 Renewal Option. 12
36 Early Termination by Tenant on Failure to Reach Agreement on Purchase Terms 12
Exhibits
A. The Premises. 14
B The Project. 14
B.1 Legal Description 15
l `
SKY SERVICES, INC. LEASE
with
AUBURN FLIGHT SERVICES, INC.
1. BASIC LEASE TERMS CQ .r
a. DATE OF LEASE EXECUTION: .April 1, 1998
b. TENANT .Auburn Right Services,Inc.
Trade Name: .Auburn Flight Services, Inc.
Address(Leased Premises): 1725 "E" Street NE,Auburn WA 98002
Address(For Notices): Same
c. LANDLORD: Sky Services, Inc.
Address(For Notices): 1134 Battle Ridge Drive
Independence KY 41051
d. TENANT'S USE OF PREMISES. .Aircraft Related
e. PREMISES AREA. .Portion of Building: 6424(approximate)Rentable Square Feet,
.plus outdoor area of approximately three(3)acres.
f. PROJECT AREA. Total Building=7950 (approximate) Square Feet
g. PREMISES PERCENT OF PROJECT Building Only 81%
k TERM OF LEASE. Commencement: April 1, 1998 Expiration: .March 31, 2003
Number of Months: 60
i. BASE MONTHLY RENT .$2,430.00,plus variable ground rent(currently$1,975 46)
payable to the City of Auburn
j. RENT ADJUSTMENT None,except ground rent
k PREPAID RENT .(First Month)$2,430.00,plus ground rent
1. TOTAL SECURITY DEPOSIT $2,430.00, including a$250 00/non-refundable cleaning fee
m. BROKER(S): None
n. BROKERAGE COMMISSION PAYABLE BY None
o. GUARANTORS: Tenant's Officers
p. ADDITIONAL EXHIBITS
Additional Exhibits lettered A and B are attached hereto and made a part hereof. If none, so state in the
following space
COMMERCIAL LEASE AGREEMENT- 1 LANDLORD'S INITIALS:—
TENANT'S INITIALS: / "-or
"
Section 1 represents a summary of the basic terms of this Lease. In the event of any
inconsistency between the terms contained in Section I and any specific clause of this
Lease, the terms of the more specific clause shall prevail.
2. PREMISES. Landlord hereby leases to Tenant and Tenant leases from Landlord, those certain Premises
described in Section 1 and in Exhibit A attached hereto (the"Premises"), located in this Project described
on Exhibit B (the 'Project"). BY ENTRY ON THE PREMISES, TENANT ACKNOWLEDGES THAT
IT HAS EXAMINED THE PREMISES AND ACCEPTS THE PREMISES IN THEIR PRESENT
CONDITION. Notwithstanding any provision to the contrary this Lease is a sublease and is subordinate
to and subject to the terms and conditions of the master ground lease entitled "Fixed-Base Lease At
Auburn Airport" dated February 27 1978, between the city of Auburn as Landlord, and Sky Services,
Inc., as Tenant, together with any Addenda thereto ("Master Ground Lease"). Tenant herein
acknowledges that it has had the opportunity to review said Master Ground Lease and agrees to comply
with all terms and conditions therein. Landlord reserves the right for itself, its assigns or sublessees to use
in common with Tenant the paved taxiways and, as designated by Tenant, three vehicle parking spaces
and one airplane tie-down area.
3. TERM. The term of this Lease shall be for the period set forth in Section 1, commencing on the date set
forth in Section 1.
4. RENT.
a. Rent. Tenant shall pay Landlord a monthly base rent in the initial amount set forth in Section 1,
which shall be payable monthly in advance on the first day of each and every calendar month
("Base Monthly Rent"); in addition, Tenant shall pay Landlord monthly the ground rent payable
to the City of Auburn pursuant to the Master Ground Lease.
b. Rent Adjustment None in Base Monthly Rent
c. Rent Without Offset and Late Charge. All rent shall be paid by Tenant to Landlord monthly
in advance on the first day of every calendar month at the address shown in Section 1 or such
other place as Landlord may designate in writing from time to time. All rent shall be paid
without prior demand or notice and without any deduction or offset whatsoever. All rent shall be
paid in lawful currency of the United States of America. All rent due for any partial month shall
be prorated at the rate of 1/30 of the total monthly rent per day Tenant acknowledges that late
payment by Tenant to Landlord of any rent or other sums due under this IPace will cause
C�; Landlord to incur costs not contemplated by this Lease, the exact amount of such costs being
�. ) . extremely difficult and impracticable to ascertain. Such costs include, without limitation,
t/ 'dir.�^ processing and accounting charges and late charges that may be imposed on Landlord by the
terms of any encumbrance or note secured by the Premises. Therefore, if any rent or other sum
due from Tenant is not received when due, Tenant shall pay to Landlord an additional sum equal
to 10% of such overdue payment. Landlord and Tenant hereby agree that such late charge
represents a fair and reasonable estimate of the costs that Landlord will incur by reason of any
such late payment Additionally, all such delinquent rent or other sums, plus this late charge,
shall bear interest at the then maximum lawful rate permitted to be charged by Landlord. Any
payments of any kind returned for insufficient funds will be subject to an additional handling
charge of$25.00.
5. PREPAID RENT. Upon the execution of the Lease, Tenant shall pay to Landlord the prepaid rent set
forth in Section 1, and if Tenant is not in default of any provisions of this Lease, such prepaid rent shall
be applied toward the rent due for the last month of the term. Landlord's obligations with respect to the
prepaid rent are those of a debtor and not of a trustee, and Landlord can commingle the prepaid rent with
COMMERCIAL LEASE AGREEMENT-2 LANDLORD'S INITIALS. ^��/
TENANT'S INITIALS: _/
Landlord's general funds. In the event the City of Auburn does not consent to this Lease, Landlord shall
return within 30 days said prepaid rent and any deposit.
6. DEPOSIT Upon execution of this Lease, Tenant shall deposit with Landlord the amount of the security
deposit set forth in Section I in part as security for the performance by Tenant of the provisions of this
Lease and in part as a cleaning fee. If Tenant is in default, Landlord can use the security deposit or any
portion of it to cure the default or to compensate Landlord for all damage sustained by Landlord resulting
from Tenant's default. Upon demand, Tenant shall immediately pay to Landlord a sum equal to the
portion of the security deposit expended or applied by Landlord to maintain the security deposit in the
amount initially deposited with Landlord. If Tenant is not in default at the expiration or termination of
this Lease, Landlord shall return the entire security deposit to Tenant, except for $250.00 (Two-Hundred
Fifty); which Landlord shall retain as a non-refundable cleaning fee. Landlord's obligations with respect
to the deposit are those of a debtor and not of a trustee, and Landlord can commingle the security deposit
with Landlord's general funds. Landlord shall not be required to pay Tenant interest on the deposit.
7 USE OF PREMISES AND PROJECT FACILITIES. Tenant shall use the Premises solely for the
purposes set forth in Section 1 and in the Master Ground Lease and for no other purpose without
obtaining the prior written consent of Landlord. Tenant acknowledges that neither Landlord nor any
agent of Landlord has made any representation or warranty with respect to the Premises or with respect to
the suitability of the Premises or the Project for the conduct of Tenant's business, nor has Landlord agreed
to undertake any modification, alteration or improvement to the Premises or the Project, except as
provided in writing in this Lease. Tenant acknowledges that Landlord may from time to time, upon ten
(10)day's notice, in its sole discretion, make such modifications,alterations, deletions or improvements to
7O the Project as Landlord may deem necessary or desirable, without compensation to Tenant Tenant shall Th promptly comply with all laws, ordinances, orders and regulations affecting the Premises and the Project,
including without limitation any rules and regulations that may be attached to this Lease and to any
• reasonable modifications to these rules and regulations as Landlord may adopt from time to time. Tenant
will not perform any act or carry on practice that may injure the Premises or the Project; that may be a
r��, nuisance or menace to the other Tenants in the Project; or that shall in any way interfere with the quiet
enjoyment of such other Tenants. Tenant shall not use the Premises for sleeping, washing clothes,
king or the preparation, manufacture or mixing of anything that might emit any objectionable odor,
noises, vibrations or lights onto such other Tenants. If sound insulation is required to muffle noise
produced by Tenant on the Premises, Tenant, at its own cost, shall provide all necessary insulation.
Tenant shall not do anything on the Premises which will overload any existing parking or service to the
Premises. Pets and/or animals of any type shall not be kept on the Premises.
8. SIGNAGE. Tenant shall obtain Landlord's written consent, which shall not be unreasonably withheld,
before installing any signs upon the Premises. Tenant shall install any approved signage at Tenant's sole
expense and in compliance with all applicable laws. Tenant shall not damage or deface the Premises in
installing or removing signage and shall repair any injury or damage to the Premises caused by such
installation or removal.
9 PERSONAL PROPERTY TAXES. Tenant shall pay before delinquency all taxes, assessments, license
fees and public charges levied, assessed or imposed upon its business operations as well as upon all trade
fixtures,leasehold improvements, merchandise and other personal property in or about the Premises.
10. PARKING. Landlord hereby grants to Tenant and Tenant's customers, suppliers, employees and
invitees, an exclusive license to use the designated parking areas in the Project for the use of motor
vehicles during the term of the Lease. Landlord for itself, its agents or sublessees, reserves the right to use
in common with Tenant up to three(3)parking stalls to be designated by Tenant
11. UTILITIES. Tenant shall pay for all water, gas, heat, light, power, sewer, electricity, telephone, solid
waste, storm drainage,or other service or utility metered,chargeable or provided to the Project
COMMERCIAL LEASE AGREEMENT-3 LANDLORD'S INITIALS: ...-_,Is a A
TENANT'S INITIALS: Sri
•
12. MAINTENANCE. Landlord shall maintain, in good condition, the structural parts of the Premises,
which shall include only the foundations, bearing and exterior walls (excluding glass), subflooring and
roof (excluding skylights), the unexposed electrical, plumbing and sewage systems, including without
limitation, those portions of the systems lying outside the Premises, exterior doors (excluding glass)
window frames, gutters and downspouts on the Building. Except as provided above, Tenant shall, at its
sole expense, maintain the Premises in good condition and promptly make all repairs necessary to keep
the Premises safe and in good condition, including without limitation, maintaining and repairing all
walls, floors,ceilings, interior doors, exterior and interior windows and fixtures as well as damage caused
by Tenant, its agents, employees or invitees, and all utilities and other systems servicing the Premises;
provided,however, the expense of replacing any heating,ventilating and air conditioning systems shall be
that of Landlord. Tenant shall maintain and keep clean all exterior and common areas including vehicle
and airplane parking areas, taxiways and tie-downs, and shall mow all grass areas and maintain
landscaping as needed. Tenant shall also maintain, repair, and/or replace at its sole expense, the
following: aircompressor and system; fire extinguishers, oil/water separator system, and waste oil barrels
and containment system Upon expiration or termination of this Lease, Tenant shall surrender the
Premises to Landlord in the same condition as existed at the commencement of the term, except for
reasonable wear and tear or damage caused by fire or other casualty for which Landlord has received all
funds necessary for restoration of the Premises from insurance proceeds.
13. ALTERATIONS. Tenant shall not make any alterations to the Premises, or to the Project, including any
changes to the existing landscaping,without Landlord's prior written consent, which consent shall not be
unreasonably withheld. If Landlord gives its consent to such alterations, Landlord may post notices in
accordance with the laws of the state in which the Premises are located. Any alterations made shall
remain on and be surrendered with the Premises upon expiration or termination of this Lease, except that
C Landlord may, within 30 days before or 30 days after expiration of the term, elect to require Tenant to
remove any alterations which Tenant may have made to the Premises, and at its own cost Tenant shall
fl restore the Premises to the condition designated by Landlord in its election,before the last day of the term
or within 30 days after notice of its election is given,whichever is later.
e. Should Landlord consent in writing to Tenant's alteration of the Premises, Tenant shall contract with a
/7 contractor approved by Landlord for the construction of such alterations, shall secure all appropriate
/L governmental approvals and permits, and shall complete such alterations with due diligence in
i
mpliance with plans and specifications approved by Landlord. All such construction shall be performed
in a manner which will not interfere with the quiet enjoyment of other Tenants of the Project Tenant
shall pay all costs for such construction and shall keep the Premises and the Project free and clear of all
mechanics' liens which may result from construction by Tenant
14. RELEASE AND INDEMNITY As material consideration to Landlord, Tenant agrees that Landlord
shall not be liable to Tenant for any damage to Tenant or Tenant's property from any cause, and Tenant
waives all claims against Landlord for damage to persons or property arising for any reason, except for
damage resulting directly from Landlord's breach of its express obligations under this Lease which
Landlord has not cured within a reasonable time after receipt of written notice of such breach from
Tenant Tenant shall indemnify and hold Landlord harmless against all liabilities, damages, costs, and
expenses, including attorney's fees, arising out of any damage or loss to any person or property occurring
in,on or about the Premises or Tenant's use of the Premises or Tenant's breach of any term of this Lease.
15. INSURANCE. Tenant at its cost, shall maintain public liability and property damage insurance and
products liability insurance with a single combined liability limit of not less than$1,000,000,and property
damage limits of not less than $500,000, insuring against all liability of Tenant and its authorized
representatives arising out of or in connection with Tenant's use or occupancy of the Premises. Public
liability insurance,products insurance and property damage insurance shall insure performance by Tenant
of the indemnity provisions of Section 14. Landlord shall be named as additional insured. On all its
personal property, at its cost, Tenant shall maintain a policy of standard fire and extended coverage
COMMERCIAL LEASE AGREEMENT-4 LANDLORD'S INITIAIS: L1
TENANT'S INITIALS:
insurance with vandalism and malicious mischief endorsements and all risk coverage on all Tenant's
improvements and alterations in or about the Premises, to the extent of at least 90% of their full
replacement value. The procerds from any such policy shall be used by Tenant for the replacement of
personal property and the restoration of Tenant's improvements or alterations. All insurance required to
be provided by Tenant under this Lease shall release Landlord from any claims for damage to any person
or to the Premises and the Project, and to Tenant's fixtures, personal property, improvements and
alterations in or on the Premises or the Project, caused by or resulting from risks insured against under
any insurance policy carried by Tenant and in force at the time of such damage. All insurance required to
be provided by Tenant under this Lease: (a) shall be issued by insurance companies authorized to do
business in the state in which the Premises are located with a financial rating of at least an A+XII status
as rated in the most recent edition of Best's Insurance Reports; (b)shall be issued as a primary policy, and
(c)shall contain an endorsement requiring at least 30 days prior written notice of cancellation to Landlord
and Landlord's lender, before cancellation or change in coverage, scope or amount of any policy Tenant
shall deliver a certificate of copy of such policy together with evidence of payment of all current premiums
to Landlord within 30 days of execution of this Lease. Tenant's failure to provide evidence of such
coverage to Landlord may, in Landlord's sole discretion, constitute a default under this Lease.
16. DESTRUCTION. If during the term, the Premises or Project are more than 10% destroyed from any
cause, or rendered inaccessible or unusable from any cause, Landlord may, it its sole discretion terminate
lease by delivery of notice to Tenant within 30 days of such event without compensation to Tenant. If in
Landlord's estimation, the Premises cannot be restored within 90 days following such.destruction, then
Landlord shall immediately notify Tenant and Tenant may terminate this lease by delivery of notice to
Landlord within 30 days of receipt of Landlord's notice. If Landlord does not terminate this lease and if
in Landlord's estimation the Premises can be restored within 90 days, then Landlord shall commence to
restore the Premises in compliance with then existing laws and shall complete such restoration with due
diligence. In such event this lease shall remain in full force and effect, but there shall be an abatement of
rent between the date of destruction and the date of completion of restoration,based on the extent to which
destruction interferes with Tenant's use of the Premises.
17 CONDEMNATION.
O a. Definitions. The following definitions shall apply (1) "Condemnation" means (a) the exercise
of any governmental power of eminent domain, whether by legal proceedings or otherwise by
condemnor and (b) the voluntary sale or transfer by Landlord to any condemnor either under
O' ^ threat of condemnation or while legal proceedings for condemnation are proceeding; (2) "Date of
/ taking" moans the date the condemnor has the right to possession of the property being
€�i.e....
f condemned; (3) "Award" means all compensation, sums or anything of value awarded, paid or
received on a total or partial condemnation; and (4) "Condemnor" means any public or quasi-
public authority, or private corporation or individual , having a power of condemnation.
b. Obligations to be Governed by Lease. If during the term of this Lease there is any taking of all
or any part of the Premises or the Project, the rights and obligations of the parties shall be
determined pursuant to this Lease.
c Total or Partial Taking. If the Premises are totally taken by condemnation, this lease shall
terminate on the date of taking. If any portion of the Premises is taken by condemnation, this
Lease shall remain in effect, except that Tenant can elect to terminate this lease if the remaining
portion of the Premises is rendered unsuitable for Tenant's continued use of the Premises. If
Tenant elects to terminate this lease,Tenant must exercise its right to terminate by giving notice
to Landlord within 30 days after the nature and extent of the taking have been finally determined.
If Tenant elects to terminate this Lease, Tenant shall also notify Landlord of the date of
termination, which date shall not be earlier than 30 days nor later than 90 days after Tenant has
notified Landlord of its election to terminate;except that this Lease shall terminate on the date of
COMMERCIAL LEASE AGREEMENT-5 LANDLORD'S INITIALS: �/J te 2
TENANT'S INITIALS: t /
�
taking if the date of taking falls on a date before the date of termination as designated by Tenant.
If any portion of the Premises is taken by condemnation and this Lease remains in full force and
effect, on the date of taking the rent shall be reduced by an amount in the same ratio the total
number of square feet in the Premises taken bears to the total number of square feet in the
Premises immediately before the date of taking.
18. ASSIGNMENT OR SUBLEASE. Tenant shall not assign or encumber its interest in this Lease or the
Premises or sublease all or any part of the Premises or allow any other person or entity (except Tenant's
authorized representatives, employees, invitees, or guests) to occupy or use all or any part of the Premises
without first obtaining Landlord's consent, which shall not be unreasonably withheld Any assignment,
encumbrance or sublease without Landlord's written consent shall be voidable and at Landlord's election,
shall constitute a default. If Tenant is a partnership, a withdrawal or change,voluntary, involuntary or by
operation of law of any partner, or the dissolution of the partnership, shall be deemed a voluntary
assignment. If Tenant consists of more than one person,a purported assignment, voluntary or involuntary
or by operation of law from one person to the other shall be deemed a voluntary assignment. If Tenant is
a corporation, any dissolution, merger, consolidation or other reorganization of Tenant, or sale or other
transfer of a controlling percentage of the capital stock of Tenant, or the sale of at least 25%of the value
of the assets of Tenant shall be deemed a voluntary assignment. The phrase controlling percentage"
means ownership of and right to vote stock possessing at least 25%of the total combined voting power of
all classes of Tenant's capital stock issued, outstanding and entitled to vote for election of directors. This
Section 18 shall not apply to corporations the stock of which is traded through an-exchange or over the
counter.
•
No interest of Tenant in this Lease shall be assignable by involuntary assignment through operation of law
(including without limitation the transfer of this lease by testacy or intestacy). Each of the following acts
shall be considered an involuntary assignment: (a) If Tenant is or becomes bankrupt or insolvent, makes
an assignment for the benefit of creditors, or institutes proceedings under the Bankruptcy Act in which
Tenant is the bankrupt; or if Tenant is a partnership or consists of more than one person or entity if any
partner of the partnership or other person or entity, if any partner of the partnership or other person or
entity is or becomes bankrupt or insolvent, or makes an assignment for the benefit of creditors; or (b) if a
writ of attachment or execution is levied on this Lease; or (c) if in any proceeding or action to which
Tenant is a party, a receiver is appointed with authority to take possession of the Premises. An
involuntary assignment shall constitute a default by Tenant and Landlord shall have the right to elect to
terminate this Lease, in which case this Lease shall not be treated as an asset of the Tenant.
t//�C,19 DEFAULT The following occurrences shall each be deemed an Event of Default by Tenant:
`J ,�� a. Failure to Pay Tenant fails to pay any sum, including Rent, due under this Lease.
,�� Vacation/AbandonmenL Tenant vacates the Premises (defined as an absence for at least 15
`' r' consecutive days without prior notice to Landlord), or Tenant abandons the Premises (defined as
vJ��an absence of five (5) days or more while Tenant is in breach of some other term of this I Pase).
Tenant's vacation or abandonment of the Premises shall not be subject to any notice or right to
cure,
c. Insolvency Tenant becomes insolvent, voluntarily or involuntarily bankrupt, or a receiver,
assignee or other liquidating officer is appointed for Tenant's business, provided that in the
event of any involuntary bankruptcy or other insolvency proceeding, the existence of such
proceeding shall constitute an Event of Default only if such proceeding is not dismissed or
vacated within 60 days after its institution or commencement.
d. Levy or Execution. Tenant's interest in this Lease or the Premises, or any part thereof, is taken
by execution or other process of law directed against Tenant, or is taken` upon or subjected to no
ME
COMRCIAL LEASE AGREEMENT-6 LANDLORD'S INITIALS: YJ ,'�
TENANT'S INITIALS: �/\(
any attachment by any creditor of Tenant, if such attachment is not discharged within 15 days
after being levied.
e. Other Non-Monetary Defaults. Tenant breached any agreement, term or covenant of this
I ncee other than one requiring the payment of money and not otherwise enumerated in this
Section, and the breach continues for a period of 30 days after notice by Landlord to Tenant of
the breach.
20. REMEDIES. Landlord shall have the following remedies upon an Event of Default. Landlord's rights
and remedies under this Lease shall be cumulative, and none shall exclude any other right or remedy
allowed by law
a. Termination of Lease. Landlord may terminate Tenant's interest under the Lease, but no act
by Landlord other than written notice from landlord to.Tenant of termination shall terminate this
Lease. The Lease shall terminate on the date specified in the notice of termination. Upon
termination of this Lease, Tenant will remain liable to Landlord for damages in an amount equal
to the rent and other sums that would have been owing by Tenant under this I ease for the
balance of the Lease term, less the net proceeds, if any, of any reletting of the Premises by
Landlord subsequent to the termination, after deducting all Landlord's Reletting Expenses (as
defined below). Landlord shall be entitled to either collect damages from Tenant monthly on the
days on which rent or other amounts would have beenpayable under the Lease, or alternatively,
Landlord may accelerate Tenant's obligations under the Lease and recover from Tenant: (i)
unpaid rent which had been earned at the time of termination; (ii) the amount by which the
unpaid rent which would have been earned after termination until the time of award exceeds the
amount of rent loss that Tenant proves could reasonably have been avoided; (iii) the amount by
which the unpaid rent for the balance of the term of the Lease after the time of award exceeds
the amount of rent loss that Tenant proves could reasonably be avoided (discounting such
amount by the discount rate of the Federal Reserve Bank of San Francisco at the time of the
award, plus 1%); and (iv) any other amount necessary to compensate Landlord for all the
detriment proximately caused by Tenant's failure to perform its obligations under the Lease, or
which in the ordinary course would be likely to result from the Event of Default, including
without limitation Reletting Expenses described in Section 20(b).
b. Re-Entry and Reletting. Landlord may continue this L-ace in full force and effect, and
without demand or notice, re-enter and take possession of the Premises or any part thereof,
expel the Tenant from the Premises and anyone claiming through or under the Tenant, and
remove the personal property of either Landlord may relet the Premises, or any part of them,
in Landlord's or Tenant's name for the account of Tenant, for such period of time and at such
\/ 1'
N.__ � other terms and conditions, as Landlord, in its discretion, may determine. Landlord may collect
\ ,'e . and receive the rents for the Premises. Re-entry or taking possession of the Premises by
','" 'i,I) Landlord under this Section shall not be construed as an election on Landlord's part to terminate
s Lease, unless a written notice of termination is given to Tenant. Landlord reserves the right
following any re-entry or reletting, or both, under this Section to exercise its rights to terminate
the Lease. During the Event of Default, Tenant will pay Landlord the rent and other sums
which would be payable under this Lease if repossession had not occurred, plus the net
proceeds, if any, after reletting the Premises, after deducting Landlord's Reletting Expenses.
Rent collected by Landlord, after reletting the Premises, shall be credited to Tenant's rent
obligation. "Reletting Expenses" is defined to include all expenses incurred by Landlord in
connection with reletting the Premises, including without limitation, all repossession costs,
brokerage commissions, attorneys' fees, remodeling and repair costs, costs for removing and
storing Tenant's property and equipment, and reasonable rent concessions granted by Landlord
to any new Tenant, prorated over the life of the new lease.
COMMERCIAL LEASE AGREEMENT-7 LANDLORD'S INITIALS: '
TENANT'S INITIALS: .Iff
c. Waiver of Redemption Rights. Tenant, for itself, and on behalf of any and all persons
claiming through or under Tenant, including creditors of all kinds, hereby waives and surrenders
all rights and privileges which they may have under any present or future law to redeem the
Premises or to have a continuance of this Lease for the Lease term, as it may have been
extended.
d. Nonpayment of Additional Rent. All costs which Tenant agrees to pay to Landlord pursuant
to this Lease shall in the event of nonpayment be treated as if they were payments of Rent, and
Landlord shall have all the rights herein provided for in case of nonpayment of Rent.
e. Failure to Remove Property If Tenant fails to remove any of its property from the Premises at
Landlord's request following an uncured Event of Default, Landlord may, at its option, remove
and store the property at Tenant's expense and risk. If Tenant does not pay the storage cost
within five (5) days of Landlord's request, Landlord may, at its option, have any or all of such
property sold at public or private sale (and Landlord may become a purchaser at such sale), in
such manner as Landlord deems proper, without notice to Tenant. Landlord shall apply the
proceeds of such sale: (i) to the expense of such sale, including reasonable attorneys' fees
actually incurred; (ii) to the payment of the costs or charges for storing such property; (iii) to
the payment of any other sums of money which may then be or thereafter become due Landlord
from Tenant under any of the terms hereof; and (iv) the balance, if any, to Tenant. Nothing in
this Section shall limit Landlord's right to sell Tenant's personal proeprty as permitted by law to
foreclose Landlord's lien for unpaid rent.
21. ENTRY ON PREMISES. Landlord and its authorized representatives shall have the right to enter the
Premises at all reasonable times for any of the following purposes: (a)To determine whether the Premises
are in good condition and whether Tenant is complying with its obligations under this Lease; (b) To do
any necessary maintenance and to make any restoration to the Premises or the Project that Landlord has
the right or obligation to perform; (c) To post 'for sale"signs at any time during the term, to post `for
rent"or "for lease"signs during the last 90 days of the term, or during any period while Tenant is in
default (d) To show the Premises to prospective brokers, agents, buyers, Tenants or persons interested in
an exchange, at any time during the term; or (e) To repair, maintain or improve the Project and to erect
scaffolding and protective barricades around and about the Premises but not so as to prevent entry to the
�^ Premises and to do any other act or thing necessary for the safety or preservation of the Premises or the
Project. Landlord shall not be liable in any manner for any inconvenience, disturbance, loss of business,
C nuisance or other damage arising out of Landlord's entry onto the Premises as provided in this Section 21.
`I Tenant shall not be entitled to an abatement or reduction of rent if Landlord exercises any rights reserved
in this Section 21. Landlord shall conduct its activities on the Premises as provided herein in a manner
4ha will cause the least inconvenience, annoyance or disturbance to the Tenant For each of these
�/ purposes,Landlord shall at all times have and retain a key with which to unlock all the doors in, upon and
about the Premises, excluding Tenant's vaults and safes. Tenant shall not alter any lock or install a new
or additional lock or bolt on any door of the Premises without prior written consent of Landlord. If
Landlord shall give its consent,Tenant shall in each case furnish Landlord with a key for any such lock.
22. SUBORDINATION. Without the necessity of any additional document being executed by Tenant for the
purpose of effecting a subordination, and at the election of Landlord or any mortgagee or any beneficiary
of a Deed of Trust with a lien on the Project or any ground lessor with respect to the Project, this Lease
shall be subject and subordinate at all times to (a)all ground leases or underlying leases which may now
exist or hereafter be executed affecting the Project,and(b) the lien of any mortgage or deed of trust which
may now exist or hereafter be executed in any amount for which the Project, ground leases or underlying
leases, or Landlord's interest or estate in any of said items is speed as security In the event that any
ground lease or underlying lease terminates for any reason or any mortgage or deed of trust is foreclosed
or a conveyance in lieu of foreclosure is made for any reason, Tenant shall, notwithstanding any
subordination, attorn to and become the Tenant of the successor in interest to Landlord, at the option of
COMMERCIAL LEASE AGREEMENT-8 LANDLORD'S INTI'IALS:
TENANT'S INITIALS: �`��
such successor in interest. Tenant covenants and agrees to execute and deliver, upon demand by Landlord
and in the form requested by Landlord any additional documents evidencing the priority or subordination
of this Lease with respect to any such ground lease or underlying leases or the lien of any such mortgage
or deed of trust. Tenant hereby irrevocably appoints Landlord as attorney-in-fact of Tenant to execute,
deliver and record any such document in the name and on behalf of Tenant. Provided, that this
appointment shall have effect only in the event that Tenant fails to execute and deliver the previously
mentioned documents to Landlord upon demand, within forty-eight (48) hours of the demand, excluding
weekends and holidays.
Tenant, within ten days from notice from Landlord, shall execute and deliver to Landlord, in recordable
form, certificates stating that this Lease is not in default, is unmodified and in full force and effect, or in
full force and effect as modified, and stating the modifications. This certificate should also state the
amount of current monthly rent, the dates to which rent has been paid in advance, and the amount of any
security deposit and prepaid rent. Failure to deliver this certificate to Landlord within ten days shall be
conclusive upon Tenant that this Lease is in full force and effect and has not been modified except as may
be represented by Landlord.
23 NOTICE. Any notice, demand, request, consent, approval or communication desired by either party or
required to be given, shall be in writing and served either personally or sent by prepaid certified first class
mall, addressed as set forth in Section 1. Either party may change its address by.notification to the other
party Notice shall be deemed to be communicated 40 hours from the time of mailing, if mailed, or from
time of service, if personally served, as provided in this Section 23
24. WAIVER No delay or omission in the exercise of any right or remedy by Landlord shall impair such
right or remedy or be construed as a waiver. No act or conduct of Landlord, including without limitation,
acceptance of the keys to the Premises, shall constitute an acceptance of the surrender of the Premises and
accomplish termination of the lease. Landlord's consent to or approval of any act by Tenant requiring
Landlord's consent of approval shall not be deemed to waive or render unnecessary Landlord's consent to
or approval of any subsequent act by Tenant. Any waiver by Landlord of any default must be in writing
and shall not be a waiver of any other default concerning the same or any other provision of the Lease.
25. SURRENDER OF PREMISES; HOLDING OVER, Upon expiration of the term, Tenant shall
surrender to Landlord the Premises and all Tenant improvements and alterations in good condition,
except for ordinary wear and tear and alterations Tenant has the right or is obligated to remove under the
provisions of Section 13 herein. Tenant shall remover all personal property including without limitation
all wallpaper, paneling and other decorative improvements or fixtures and shall perform all restoration
v made necessary by the removal of any alterations or Tenant's personal property before the expiration of
the term, including for example, restoring all wall surfaces to their condition prior to the commencement
\ of this Lease. Landlord can elect to retain or dispose of in any manner Tenant's personal property not
I Femoved from the Premises by Tenant prior to the expiration of the term. Tenant waives all claims
against Landlord for any damage to Tenant resulting from Landlord's retention or disposition of Tenant's
481rsonal property Tenant shall be liable to Landlord for Landlord's costs for storage, removal or disposal
CZ of Tenant's personal property
If Tenant, with Landlord's consent, remains in possession of the Premises after expiration or termination
of the term, or after the date in any notice given by Landlord to Tenant terminating this Lease in
accordance with the provisions of this Lease, such possession by Tenant shall be deemed to be a month-to-
month tenancy terminable on 30-day notice at any time, by either party All provisions of this Lease,
except those pertaining to term and rent, shall apply to the month-to-month tenancy Tenant shall pay a
Base Monthly Rent in an amount equal to 125%of the Base Monthly Rent for the last full calendar month
prior to the expiration or termination of the term.
COMMERCIAL LEASE AGREEMENT-9 LANDLORD'S INITIALS:'s/S �J r
TENANT'S INITIALS: f�
26. MORTGAGEE PROTECTION. In the event of any default by Landlord, Tenant will give notice by
registered or certified mail to any beneficiary of a deed of trust or mortgagee of a mortgage covering the
Premises whose address shall have been furnished to Tenant, and shall offer such beneficiary or
mortgagee a reasonable opportunity to cure the default, including time to obtain possession of the
Premises by power of sale or a judicial foreclosure, if such should prove necessary to effect a cure.
27 LIMITATION OF LIABILITY Landlord and Tenant agree no shareholders, members, officers,
directors, or other principals of Landlord shall have any personal liability to Tenant as the result of any
breach or default by Landlord under this Lease.
28. MISCELLANEOUS PROVISIONS.
a. Severability Any provision of this Lease which shall prove to be invalid,void, or illegal shall in
no way affect,impair, or invalidate any other provision of this Lease.
b. Successor This Lease shall be binding on and inure to the benefit of the parties and their
successors, except as provided in Section 18 herein.
c. Landlord's Consent: Any consent required by Landlord under this Irace must be granted in
writing and unless expressly stated otherwise shall not be unreasonably withheld.
d. Commissions. Each party represents that it has not had dealings with any real estate broker,
finder or other person with respect to'this Lease in any manner, except for the broker identified
in Section 1,who shall be compensated by the party identified in Section I.
e. Other Charges. If Landlord becomes a party to any litigation concerning this Lease, the
Premises or the Project, by reason of any act or omission.of Tenant or Tenant's authorized
representatives, Tenant shall be liable to Landlord for reasonable attorneys' fees and court costs
incurred by Landlord in the litigation whether or not such litigation leads to actual court action.
If either party commences an action against the other party arising out of or in connection with
this Lease, the prevailing party shall be entitled to recover from the other party reasonable
attorneys' fees and costs of suit. If Landlord employs a collection agency to recover delinquent
charges, Tenant agrees to pay all collection agency fees charged to Landlord in addition to rent,
late charges, interest and other sums payable under this Lease. Tenant shall pay a charge of$75
to Landlord for preparation of a demand for delinquent renL
�` f. Transfer of Landlord's Interest. This Le-ace shall be assignable by Landlord without the
,<FM`, consent of Tenant In the event of any transfer or transfers of Landlord's interest in the Premises,
other than a transfer for security purposes only, upon the assumption of this Lease by the
r transferee, Landlord shall be automatically relieved of obligations and liabilities accruing from
%//////I) and after the date of such transfer, except for any retained security deposit or prepaid rent, and
nant shall attorn to the transferee.
Cre
g. Interpretation. This Lease shall be construed and interpreted in accordance with the laws of the
state in which the Premises are located. This Lease constitutes the entire agreement between the
parties will respect to the Premises and the Project, except for such guarantees or modifications
as may be executed in writing by the parties from time to time. When required by the context of
this lease, the singular shall include the plural, and the masculine shall include the feminine
and/or neuter. 'Party" shall mean Landlord or Tenant. If more than one person or entity
constitutes Landlord or Tenant, the obligations imposed upon that party shall be joint and
several. The enforceability, invalidity or illegality of any provision shall not render the other
provisions unenforceable, invalid or illegal.
COMMERCIAL LEASE AGREEMENT- 10 LANDLORD'S INITIALS: a (27.,v,
TENANT'S INITIALS:
29 TOXIC OR HAZARDOUS SUBSTANCES. With respect to any release of toxic or hazardous
substances or wastes or other condition of the Premises occurring on or after the date of the Lease and
caused by or resulting from the negligent acts or omissions or willful misconduct of Tenant, its employees,
authorized agents, or contractors, and which release or other condition violates the provisions of, or
necessitates any removal, treatment or other remedial action under, any past, present, or future federal,
state or local statute or ordinance or any regulation, directive, or requirement of any governmental
authority with jurisdiction relating to protection of the environment, Tenant agrees to defend, indemnify,
and hold harmless Landlord, its partners, employees, agents, and contractors, from and against any and
all losses, claims, liabilities,damages, demands,fines,costs and expenses(including reasonable attorneys'
fees and legal expenses) arising out of or resulting therefrom. The provisions of this Paragraph shall
survive the termination.or expiration of this Lease and the surrender of the Premises by Tenant, with
respect to releases, events, or conditions occurring prior to such termination, expiration, or surrender.
With respect to any release of toxic or hazardous substances or wastes or other condition of the Premises
occurring prior to the date of this Lease and caused by or resulting from the negligent acts or.omissions or
willful misconduct of Landlord, its employees, authorized agents, or contractors,-and which release or
condition violates the provisions of, or necessitates any removal, treatment, or other remedial action
under, any past, present, or future federal, state, or local statute or ordinance or any regulation,
requirement, or directive of any governmental authority with jurisdiction relating to protection of the
environment,Landlord agrees to defend, indemnify, and hold harmless Tenant from and against any and
all losses, claims, liabilities, damages, demands, fines, costs, and expenses (Including reasonable
attorneys' fees and legal expenses)arising out of or resulting therefrom.
Tenant shall remove any sumps and clarifiers and any related hazardous Materials C'Hazardous
Material" shall mean petroleum and petroleum products, asbestos, and PCB's and any "hazardous
substances", "hazardous materials" or "toxic substances" in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, the Hazardous materials Transportation
Act, as amended, or the Resource Conservation and Recovery Act, as amended, and "hazardous" or
'"toxic" in the regulation adopted or publication promulgated pursuant to any of said laws) in or about the
Premises and associated with Tenant's use and occupancy thereof.upon the expiration or earlier
termination of this Lease. Reference is also made to Section 13,page 4 Alterations.
30. OTHER. In addition to any other remedies available to Tenant, this Agreement shall be subject to
cancellation by the Tenant should any one or more of the following events occur:
The permanent abandonment of Auburn Municipal Airport.
b. The assumption by the Federal Government or any other governmental agency of the control of
Auburn Municipal Airport or any portion thereof in a manner which would preclude Tenant from
operation under the terms of this Lease or which would substantially restiret Tenant's operation
under the terms of this Lease.
31. EXECUTION OF AGREEMENT BY CORPORATION AND GUARANTY If Tenant is a
corporation, each individual executing this Agreement on behalf of said corporation represents and
warrants that she/he is duly authorized to execute and deliver this Agreement on behalf of said
corporation in accordance with a duly adopted resolution of the Board of Directors of said corporation or
in accordance with the Bylaws of said corporation, and that this Agreement is binding upon said
corporation in accordance with its terms. As a condition of this Lease and in consideration of benefits
derived, the individuals executing this Agreement on behalf of said corporation unconditionally
guarantee,jointly and severally to Landlord the full performance of this Lease by Tenant If Tenant is a
corporation, Tenant shall within thirty (30) days after execution of this Agreement, deliver to Sky
Services, Inc. a certified copy of a resolution of the Board of Directors of said corporation authorizing or
ratifying the execution of this Agreement
/
COMMERCIAL LEASE AGREEMENT- I 1 LANDLORD'S INITIALS:`'AP Its
TENANT'S INITIALS: O' •
32. CITY RULES AND REGULATIONS. Tenant shall comply with all applicable rules and regulations
promulgated by the City of Auburn for the Auburn Municipal Airport.
33 NO SMOKING. Tenant shall permit no smoking inside any portion of the building located upon the
Premises.
34. EARLY TERMINATION AND FIRST RIGHT OF REFUSAL TO PURCHASE OR LEASE
ENTIRE PROJECT In the event Landlord receives an offer during any term of this base to purchase
or lease the entire Project, Landlord shall have the right to terminate this Lease effective six (6) months
after the date the sale or lease is closed. Provided, however, Landlord's right to terminate the Lease shall
not be effective unless Landlord has first offered to sell or lease the Project to Tenant on the same terms
and conditions offered to Landlord by a third party Tenant shall have twenty (20) days from the date of
Landlord's written notice conveying to Tenant a copy of the purchase or lease offer Landlord intends to
accept in which to give written notice to Landlord that Tenant agrees to purchase or,lease the Project on
the same terms and conditions of that offered. In the event Tenant does not commit to purchase or lease
the Project, then Landlord shall be free to sell or lease the Project to the offeror and exercise Landlord's
right to terminate this Lease early
35. RENEWAL OPTION. Provided Tenant is not in default at the time of exercise or upon the
commencement of any extension term, Tenant shall have the option to extend the term of this Lease one
(1) additional term of five (5) years. Tenant shall exercise each option by delivering with notice to
Landlord not less than one hundred eighty (180) days prior to the expiration of the then-current Lease
term. Upon the exercise of any option, the term of this Lease shall be extended for the period of the
subject option upon all of the same terms, conditions and covenants as set forth herein, except for the
amount of the Base Monthly Rent stated in the Lease, which shall be increased to the amount of fair
market rental for the Premises,but in no event shall the minimum base rent be less than 110%of the Base
Monthly Rent during the initial five (5) year term. If Landlord and Tenant are not able to agree on the
amount of fair market rental within thirty(30)days after the date Tenant exercises its extension option in
each case, then the parties shall submit the determination of the fair market rental value of the Premises to
0 binding arbitration. If Landlord and Tenant are not able to agree upon a single arbitrator within thirty
(30) days of their agreement to arbitrate the dispute, then during the following ten (10) day period,
Landlord and Tenant shall each designate an expert, who shall be a licensed MIA appraiser or a
O commercial real estate agent with at least five (5) years experience in the commercial leasing market in
hich the Premises are located. The two experts so selected shall appoint an arbitrator similarly qualified
^ hose determination of fair market rental value shall be binding upon Landlord an d Tenant Each party•shall bear their own expenses of the arbitration except that the cost of the arbitrator shall be paid by the
ahose final offer of fair market rent during the thirty(30) day negotiation period is farthest from the
t determined by the arbitrator.
36. EARLY TERMINATION BY TENANT ON FAILURE TO REACH AGREEMENT ON
PURCHASE TERMS. Tenant intends in good faith to pursue a purchase of the Project from Landlord,
during the term. However, should such purchase not occur because Landlord and Tenant fail to agree on
terms which are not less favorable to Landlord than those Tenant previously offered for such purchase, or
Landlord determines not to sell the Project, Tenant reserves the right to terminate this bate upon
reasonable notice and construction of a comparable facility Therefore, in the event that during any term
of this Lease Tenant makes an all cash offer to purchase the Project from Landlord for a sum of at least
Three Hundred Fifty Thousand Dollars ($350,000) which is rejected by Landlord, and Tenant thereafter
begins construction of a comparable facility to the Project at the Auburn Municipal Airport, then Tenant
COMMERCIAL LEASE AGREEMENT- 12 LANDLORD'S INITIALS: 4) LV
TENANT'S INITIALS:
shall have the right, on six (6) months' written notice, to terminate this Lease early and such early
termination will not be considered an Event of Default under Section 19 and will not make Tenant liable
for any remedies under Section 20.
IN WITNESS WHEREOF, Landlord and Tenant have executed this lease this 7 day of April, 1998.
Landlord: SKY SERVICES,INC.
/f i r1
By j4U se /� I,` � �� / FEIN: 91 —b9 /.3� /l
Print Name and Title: Tre vc C 6(ac kuul)d Sec /77&25
Tenant: AUBURN FLIGH,TT SERVICES,INC. r�
BY 42aii t. r (eL D:A.0 FEIN: 9i 1 i/4 779/7
Print Nam and Title: . I 119 m Ei.ti e A' 6/beef A , AR-67S
By
Print Name and Title:
STATE OF WASHINGTON )
)ss.
COUNTY OF KING (n� )
On this 1 day of R p i t , 1998, before me a Notary Public in and for the State of
Washington,personally appeared St'9ie_ 61acKwenal to me known to be the Sec/ Trees .
of Sky Services,Inc.,a Washington corporation that executed the foregoing instrument,and acknowledged it to be
the free and voluntary act of said corporation, for the uses and purposes mentioned in this instrument, and on oath
stated that they were authorized to execute said instrument.
IN WITNEx\P I have hereunto set m hand and official and year first above
written. ,- t PR q ‘11
0
16 �'ISSIpN Sir
���j� �hY 'v N i NOTARY PUBLIC,in and for the State
�/ll J,1 c 1°061,C g" ; of Washington,residing at K 1 ids Q 0
Iri�� e' 2g o,, My appointment expires I asael 0 I
STA OFWAS C j ll __ )
..‘......� ) ss.
COUNTY OF KING )
On this 1 _day of {i P C r I , 1998, before me a Notary Public in and for the State of
Washington,personally appeared 3a me.,11 s e e s c•c. and N 14 , to me
known to be the President and Secretary of Auburn Flight Services,Inc., a Washington corporation that executed
the foregoing instrument,and acknowledged it to be the free and voluntary act of said corporation, for the uses and
purposes mentioned in this instrument,and on oath stated that they were authorized to execute said instrument.
IN WITl18S.S.1 REOF, I have hereunto set my hand and official the day and year first above
written. — PION q\tutu �VyUj4
s c, _,,ssio,,, 9hr 14 t�v� CA , v
o`3.- e t-A,, Sherpa A F-r,tt 1-4 v _q A NOTARY PUBLIC, in and for the State
i PUBLIC m S of Washington, residing at X I C o•
rt , • My appointment expires I a. act lot '
rr 9-a �' 2 9 0
lit
t WASMN
COMMERCIALLL''EkS&4itiREEMENT- 13 LANDLORD'S INITIALS: H4czkg `/ g /t-J
TENANT'S INITIALS: / ��
/
EXHIBIT A
THE PREMISES
PREMISES. Approximately 6,424 square feet of building area as shown on
the sketch attached as Exhibit A-1, plus exclusive use of
airplane tie-down areas, together with the nonexclusive right
to use the areas described in Section 2.
EXHIBIT B
THE PROJECT
PROJECT The entire property of approximately three (3) acres which is
subject to a master ground lease with the City of Auburn.
Legal Description: Attached'as Exhibit B-1.
ein
COMMERCIAL LEASE AGREEMENT- 14 LANDLORD'S INITIALS:
TENANT'S INITIALS:
IULITE NDecr+
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EXHIBIT 8.1
LEGAL DESCRIPTION
That portion of the J. Brannan Donation Claim No. 38 situate in Section 7,
Township 21 North, Range 5 East, W N. described as follows
Beginning at the northeast corner of the J. Brannan Donation Claim No. 38,
thence N 88°49'52" N 430.0I feet; thence S 0°52'25" W 1320.42 feet to the
Title Point of Beginning; thence continuing S 0°52'25" W 260.00 feet, thence
N 88°53'43" W 530.00 feet; thence N 0°52'25" E 260.00 feet; thence 8 88•53'03"
E 530.00 feet to the True Point of Beginning LESS the east 25 feet for street,
situate in the City of Auburn, King County, Washington.
3.01 Acres
C0,71e- )1";
COMMERCIAL LEASE AGREEMENT-15 LANDLORD'S INITIALS: a
TENANTS INITIALS:
1i
EXHIBIT C
SIGN REGULATIONS
PROJECT
BLDG./UNIT
Signs or symbols placed in the windows or doors or elsewhere about the Premises,or upon any exterior part of the
building by the Irsw-shall be subject to approval of the Lessor or Lessor's agents. In the event Lessee shall place
signs or symbols on the exterior of said building, or in the windows or doors or elsewhere where they.are visible
from the street, that are not satisfactory to the Lessor or Lessor's agents, the I rscor or Lessor's agents may
immediately demand the removal of such signs or symbols, and the refusal of the lessee to comply with such
.demand within a period of 24 hours will constitute a breach of this Lease, and.entitle:the Lessor.to immediately
recover possession of said Premises in the manner provided by law Any signs so placed on.the-Premises shall be
so placed upon the understanding and agreement that I xc-will remove same at the termination of the tenancy
herein created and repair any damage or injury to the Premises caused thereby, and if not so removed by Lessee
then Lessor may have such signs or symbols removed at Lessee's expense.
co
COMMERCIAL LEASE AGREEMENT- 17 LANDLORD'S INITIALS: 'B
TENANT'S INITIALS•
ter:;:
CHART FS A.BOOTH,MAYOR AUBURN CITY CLERK
Danielle Daskam,City Clerk Auburn J 25 West Main, Auburn,WA 98001
Cathy Richardson, Deputy City Clerk City C1erk:(253)931-3039
Tamte Bothell,Records/License Clerk Business Registration:(253)931-3007 Fax:(953)988-3139-303a9
STATE OF WASHINGTON)
) ss.
COUNTY OF KING
I, Danielle Daskam, the duly appointed, qualified City Clerk of the City of
Auburn, a Municipal Corporation and Code City, situate in the County of King,
State of Washington, do hereby certify that the foregoing is a full, true and correct
copy of Resolution No 2956 of the resolutions of the City of Auburn, entitled
"RESOLUTION NO.2956."
I certify that said Resolution No 2956 was duly passed by the Council and
approved by the Mayor of the said City of Auburn on the 4th day of May, 1998.
Witness my hand and the seal of the City of Auburn this 20th day of August,
1998
Da ielle Daskam, City Clerk
City of-Auburn
OFFICE OF THE MAYOR ea .� CITY ADMINIST'RA`TION
Charles A. Booth, Mayor 25 West Main, Auburn,WA 98001
I(z, (253)931-3041 Fax.(253)288-3132
FIT c5t
May 15, 1998
Mr Jamelle R. Garcia, President
Auburn Flight Services, Inc.
506 — 23rd Street NE
Auburn, WA 98002
Dear Mr Garcia:
On May 4, 1998, the Auburn City Council adopted Resolution No. 2956 authorizing a
Consent of City to Sublease premises at Auburn Municipal Airport between the City and
Auburn Flight Services, Inc.
Enclosed is a copy of Resolution No 2956 and the original Consent of City to Sublease
The Consent has been executed by the City and now requires your notarized signature.
Please return the original Consent to the Auburn City Clerk, 25 West Main Street,
Auburn, WA, 98001
If you have any questions, please contact Planning and Community Development
Director Paul Krauss at (253)931-3090
Sincerely,
Charles A. Booth
Mayor
CAB:dd
Enclosures
cc: Paul Krauss, Planning and Community Development Director