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HomeMy WebLinkAboutAgreements/Contracts - Sheriff & JailI? PORT OF MATTAWA (PORT DISTRICT NO.3 OF GRANT COUNTS / GRANT COUNTY SHERIFF, SMALL OFFICE LEASE THIS LEASE is dated this ,� day of , 20/ , and is between Port of Mattawa, (Port District No. 3 of Grant County), a Washington municipal corporation ("Lessor"), whose address is 20140 Road 24 SW Suite G, Mattawa WA 99349, and Grant County Sheriff, ("Lessee"), whose address is Grant County Courthouse P.O. Box 37, Ephrata, WA 98823. WITNESS—ETH: --------- ON AND SUBJECT TO the covenants, terms, conditions and agreements herein contained, Lessor herewith leases to Lessee and Lessee herewith leases from Lessor that certain real property situated in Grant County, Washington, legally described as follows: Lessee desires to rent Unit D of approximately 100 square foot space in said Port of Mattawa Incubator Building from Lessor, located at 20140 Road 24 SW, Mattawa WA 99349. Refer to Exhibit B. Physical address of the premise is 20140 Road 24 SW STE D, Mattawa, WA 99349. Grant County Assessor's Tax Parcel No. 313 508000. TOGETHER WITH all franchises, privileges, permits, licenses and easements, if any, that are on, connected with or usually had and enjoyed in connection with the above-described real property. SUBJECT TO rights reserved and federal patents or state deeds, all easements and rights-of-way of record or in apparent use, all encumbrances, reservations, restrictions, land use and zoning laws, plat dedications, restrictive and protective covenants of record and existing or future municipal, county, state or other governmental or quasi -governmental assessments, if any. INCLUDING all reasonable rights-of-way of ingress and egress which are appurtenant to the above-described real property or in which Lessor has rights. INCLUDING access to common areas (lobby, hallway, and two public bathrooms); parking (available on a first- come -first -serve basis); access to Lessor's office and conference room for Lessee's business activities subject to pre -approval by Lessor; and one locked mailbox if Lessee requests one. The phrase "the Property" shall include, in addition to the above real property any encumbrances and benefits above described, all improvements and fixtures hereafter located thereon unless hereinafter specifically provided. 1. TERM. The term of this Lease shall commence on July 1, 2021 ("the Commencement Date"), and shall terminate at midnight on December 31, 2022, (the "Termination Date"), unless sooner terminated in any manner hereinafter provided. 2. RENT. Lessee shall pay Lessor rent of $350.00 per month, below in advance and without demand with the first monthly installment of rent due on July 1, 2021, and subsequent monthly installments of rent due on the 1 st day of each successive month during the term of the Lease. 3. LATE CHARGE. In the event of nonpayment of rent by Lessee to Lessor in the full amount and at the time(s) required by this Lease, with such nonpayment continuing for more than ten (10) days after due, then Lessee shall pay Lessor a late charge equivalent to ten percent (10%) of the delinquent rent for each month, or any portion thereof, of delinquency from the due date(s) until paid in full. No default on account of delinquent rent payment(s) shall be cured until the late charge required by this section is paid in addition to the delinquent rent payment(s). 4. TAXES. 4.1 Lessee shall pay before delinquency all taxes, assessment, license fees and other charges levied or assessed against Lessee's personal property installed or located on the Property during the Lease term. 5. USE OF PROPERTY. 5.1 Lessee shall use the Property only for Grant County Sheriff law enforcement duties and other uses associated therewith. No other use of the Property shall be made without the prior written consent of the Lessor. 5.2 Consent, if given, for any change in use shall be expressed in writing and may include an adjustment of the rent in accordance with the change. 5.3 Lessee shall not use or allow the Property to be used for any improper, immoral, unlawful or objectionable purpose. Lessee shall not do or permit anything to be done Page 2 of 17 in, on, about or from the Property which will any way increase the existing premium rate for, modify or reduce the coverage of or cause a cancellation of any fire or extended coverage insurance policy maintained by Lessor covering the Property or any part thereof or any of its contents. Lessee shall not do or permit anything to be done in, on, about or from the Property which will constitute a nuisance or trespass or will in any way obstruct or interfere with the rights of other tenants of the Property or their invitees or licensees, or injure or annoy them. 6. HAZARDOUS SUBSTANCES/ENVIRONMENT. 6.1 Lessee shall not cause, permit or allow any hazardous substance to be brought upon, kept or used in, on or about the Property by Lessee, or Lessee's agents, employees, contractors, licensees, invitees or lessees, except for such hazardous substances as may be reasonably necessary for Lessee's possession and use of the Property pursuant to the terms of this Lease. Any hazardous substances which by the foregoing provision are permitted to be brought upon, kept or used in, on or about the Property and all containers therefor, shall be used, kept, stored and disposed of in a manner that complies strictly in all respects with all federal, state and local laws or regulations applicable to the handling, use, storage, treatment and transportation of hazardous substances, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA") 42 U.S.C. § 9601, et seq.; the Super Fund Amendments and Reauthorization Act of 1986; the Resource Conservation and Recovery Act ("RCRA") 42 U.S.C. § 9601, et seq.; the Clean Water Act, 33 U.S.C. §1317, § 1321; the Clean Air Act, 42 U.S.C. § 7412; the Toxic Substances Control Act, 15 U.S.C. § 2606; the Washington Model Toxics Control Act ("MTCA"), RCW Ch. 70.1050; the State Environmental Policy Act ("SEPA"), RCW Ch. 43.216; and the Hazardous Waste Management Act, RCW Ch. 70.105, including all amendments and recodifications thereof, all regulations promulgated thereunder and all future laws and regulations enacted by any governmental authority respecting the handling, use, storage, treatment and transportation of hazardous substances. The term "hazardous substance(s)" as used herein means and includes any "hazardous waste" as defined by RCRA and the Hazardous Waste Management Act, as amended from time to time and regulations promulgated thereunder; any "hazardous substance" as defined by CERCLA, the Hazardous Waste Management Act and SEPA, as amended from time to time and any regulations promulgated thereunder; any oil, petroleum products and their byproducts; Page 3of17 and any substance or waste with respect to which the handling, use, storage, treatment and transportation thereof on crops, soil, water and equipment is or becomes regulated by any federal, state or local government authority. 6.2 Lessee shall defend, indemnify and hold Lessor completely harmless from any breach or violation of the prohibitions imposed upon Lessee by this section. Indemnification includes, without limitation, any and all costs or expenses (including all claims, damages, fines, judgments, penalties, liabilities, loss, attorneys' fees and consultant and expert fees) of any kind or nature incurred because of any testing, assessments or investigations of the Property or any cleanup, removal, remediation or restoration of the Property mandated or threatened by any federal, state or local agency or political subdivision or voluntarily undertaken and specifically includes any and all such costs or expenses due to hazardous substances that flow, diffuse, migrate or percolate into, onto or under the Property after the date of this Lease. 7. ALTERATIONS AND ADDITIONS. Lessee shall not make or allow to be made any alterations, additions or improvements to or of the Property, or any part thereof, without the prior written consent of Lessor and, except as is otherwise provided hereinafter in this section, any alterations, additions or improvements to or of the Property, including but not limited to, structures, buildings, wall covering, paneling and built-in cabinet work, but excepting movable furniture as well as trade fixtures which shall at once become a part of the Property and belong to Lessor and shall be surrendered with the Property on the termination of this Lease subject to Section 18 of this Agreement. Upon the expiration or sooner termination of the Lease term, Lessee shall, upon written demand of Lessor given at least thirty (30) days prior to the end of the Lease term, forthwith and with all due diligence, remove any alterations, additions, or improvements by Lessee designated by Lessor to be removed and repair any damage to the Property caused by such removal. 8. RETURN OF THE PROPERTY. On the date of termination of this Lease, Lessee shall return the Property to Lessor in as good a condition as the same was at the time Lessee took possession hereunder, natural deterioration, depreciation, reasonable wear and tear due to reasonable use and occupancy in conformance with the provisions of this Lease and Acts of God alone excepted. Notwithstanding any provision in this Lease relating to the exception of natural deterioration, depreciation and reasonable wear and tear due to use and occupancy, Page 4of17 Lessee shall, at Lessee's own cost and expense, at all times keep the Property in a neat, clean and sanitary condition, keep the glass of all windows and doors clean and presentable, immediately replace any glass as may become cracked and broken with glass of a like kind and quality, and at all times maintain the Property in such a state and condition as is consistent with the operation of a clean, sanitary. 9. FORCE MAJEURE. If either of the parties hereto shall be delayed or prevented from the performance of any act required hereunder by reason of Acts of God, strikes, lock -outs or other labor troubles, inability to procure materials, restrictive governmental laws, ordinances regulations or requirements or other cause without the fault and beyond the control of the party obligated (financial inability or difficulties of Lessee excepted), then performance of such act shall be excused for the period of the delay and the period of the performance of any such act shall be extended for a period equivalent to the period of such delay; provided that nothing in this section shall excuse Lessee from the prompt payment of rent or other charges required of Lessee hereunder, unless expressly provided otherwise elsewhere in this Lease; and provided further that nothing in this section shall extend the term of this Lease beyond the termination date hereinabove set forth. 10. GOVERNMENTAL AUTHORITY. Lessee shall comply with all rules, ordinances and regulations of the County of Grant, State of Washington, the federal goverment and its agencies and all other governmental or quasi -governmental authorities with jurisdiction as may be required or imposed by any such authorities on Lessee, the Property, or Lessee's use, occupancy or control thereof; and shall comply with any direction pursuant to law of any public official or officer who shall impose any duties upon Lessee with respect to the Property or the use, occupancy or control thereof, or the conduct of any business therein. Further, if as a result of the imposition or enforcement of any governmental rules, ordinances or regulations it is required the Property be repaired, remodeled or altered on account of any acts or omissions of Lessee, Lessee shall promptly and at the sole cost and expense of Lessee effect any such repair, remodel or addition and shall be fully responsible to Lessor for claims, liabilities or damages resulting therefrom or approximately caused thereby. Page 5of17 11. WASTE. Lessee shall not commit or permit spoil or waste of or to any of the Property and shall peacefully surrender possession of the Property on the date of termination of this Lease in a clean and neat condition, free and clear of all refuse and debris. 12. MAINTENANCE AND REPAIR BY LESSEE. Lessee shall throughout the Lease term and so long as Lessee remains in possession of the Property, keep and maintain the entire Property, including all improvements and components thereof, in good operating order and repair, reasonable wear and usage and Acts of God excepted. 13. UTILITIES. Except as may otherwise be specifically provided herein, Lessee shall pay all charges for utilities and services to the Property, which shall include but not be limited to, charges for water, sewer, heat, light, gas and refuse disposal, and any other charges assessed against the Property as a result of Lessee's use and/or occupation thereof as the same become due and payable and shall not permit liens, executions or attachments to exist against the Property by reason of nonpayment thereof. 14. INDEMNITY. Lessee covenants to defend, indemnify and hold Lessor harmless from and against all claims, liabilities and damages of whatsoever cause and whatsoever kind arising out of or in connection with the possession, use or operation of the Property, including areas adjacent thereto over which Lessee exercises control such as sidewalks and parking areas which are part of the Property or necessary for the use and occupancy of the Property, or mere presence thereon by Lessee or Lessee's agents, employees, independent contractors, successors, assigns, family, invites, licensees, or any third persons either lawfully or unlawfully on the Property, excepting only claims, liabilities and damages proximately caused by or resulting from the failure of Lessor to properly perform any of Lessor's obligations with respect to the Property required by the provisions of this Lease. 15. INSURANCE. 15.1 Lessee shall procure and maintain in force, without cost or expense to Lessor, on the commencement date of this Lease and throughout the Lease term or as long as Lessee remains in possession of the Property, with insurance carriers licensed to do business in the State of Washington, a policy or policies of insurance providing the following coverages with respect to the Property and the use and occupancy of the Property by Lessee: Page 6of17 i. Broad form comprehensive general liability insurance covering bodily injury and property damage, including pollution endorsements, with liability limits of not less than $1,000,000, per occurrence. ii. Special form or risks of direct physical loss coverage, insuring all equipment, fixtures, improvements, structures and buildings which are now or hereafter part of the Property in amounts equal to the full replacement value of all buildings and improvements and the actual cash value of all equipment. Lessor shall be named as additional insured on all such policies, which policies shall provide that they may not be canceled or modified for any reason without fifteen (15) days prior written notice to Lessor. In connection with all such insurance, Lessor shall apply to the insurer to have the insurer waive in writing all rights and subrogation's which the insurer might have otherwise acquired, if at all, against Lessor and/or Lessee. Lessee shall furnish Lessor with certificates of each policy of insurance required by this section within ten (10) day of the execution of this Lease and with renewal certificates within ten (10) days of the annual renewal of each such policy. If requested by Lessor, all policies required under this section shall name any mortgagee or deed of trust beneficiary and/or any assignee thereof, as their respective interests may appear, as a loss payee and a certificate of each such policy shall be deposited with such loss payee. 15.2 Notwithstanding the foregoing provisions of this section, in the event Lessee is not able to procure the special form or risks of direct physical loss coverage insurance required by paragraph 18.1 above, Lessor shall procure such insurance and Lessee shall pay the annual (or other periodic) premiums therefore immediately on demand of Lessor. 15.3 In the event of the receipt of insurance proceeds from the policy of insurance required by this section 15 resulting from physical loss of equipment, fixtures, improvements, structures and buildings which are now or hereafter become part of the Property, all such insurance proceeds shall be applied to the complete rebuilding and restoration of the Property or any such damaged part thereof. In the event there are any insurance proceeds remaining after the complete rebuilding and restoration of the Property or such damaged portion thereof, such remaining insurance proceeds shall be distributed to Lessee free and clear of any claim of Lessor. 16. EMINENT DOMAIN. Page 7 of 17 16.1 If the whole of the Property should be taken under government power of eminent domain or by private condemnation, the Lease term shall cease as of the day possession be taken and rent shall be paid to the date of termination with a refund to Lessee of any unused rent paid in advance. 16.2 If only part of the Property should be taken and the balance thereof remains tenantable for Lessee's purposes, this Lease shall continue in full force and effect. The rent shall be adjusted if Lessee's business is reduced because of the taking and the amount of any adjustment shall be agreed upon between Lessor and Lessee. If the parties are unable to agree whether or not the remaining portion of the Property remains tenantable for Lessee's purposes or as to the amount of rent adjustment, either Lessor or Lessee may for a period of thirty (30) days following the taking, terminate this Lease by giving ten (10) day's notice to the other. On termination, Lessor shall refund to Lessee any unused rent paid in advance. 16.3 All damages awarded for taking under the power of eminent domain or private condemnation, whether for the whole or a part of the Property, shall be the property of Lessor, whether such damages be awarded as compensation for diminution in value of the leasehold or to the fee of the Property and Lessee hereby expressly waives any claim to any part thereof; provided that Lessee shall have the right to claim and recover from the condemning authority, but not from Lessor, such compensation as may be separately awarded or recoverable by Lessee in Lessee's own right on account of any and all damage to Lessee's business by reason of the condemnation and for or on account of any cost or loss to which Lessee might be put in removing Lessee's merchandise, furniture, fixtures, leasehold improvements and equipment, including any loss of goodwill and securing a new leasehold. Notwithstanding anything to the contrary contained herein, in the event of any total or partial condemnation, Lessee shall not have any claim against Lessor for the value of any unexpired term of this Lease. 17. DAMAGE TO THE PROPERTY. Notwithstanding anything to the contrary contained herein with respect to Force Majeure, if the Property is destroyed or damaged by fire, earthquake, or other casualty to such an extent as to render the Property wholly or partially unfit for occupancy then Lessee may exercise an election, at Lessee's exclusive option, to cancel and terminate this Lease by notice given within thirty (30) days of the date of such damage or destruction. Upon the giving of such notice, this Lease shall be deemed to have terminated on Page 8of17 the date of such damage or destruction and all rent paid by Lessee in advance, if any, shall be immediately refunded by Lessor to Lessee. On the other hand, in the event Lessee does not elect to cancel this Lease, then Lessor shall rebuild or restore the Property as soon as is reasonably practicable considering the extent of the damage or destruction and the availability of workmen and supplies and during such period of rebuilding or restoration, this Lease shall continue in full force and effect, except for obligations of Lessor or Lessee hereunder which because of the damage cannot be performed, and except for rent which shall be reduced equitably or suspended entirely on the basis of the diminution of the business of Lessee caused by the loss of area and/or restoration. 18. FIXTURES AND EO UIPMENT. Any fixtures or equipment of any kind whatsoever placed upon the Property by Lessee shall remain the property of Lessee and be at the sole risk of Lessee, unless provided otherwise herein. On or prior to the termination of this Lease such fixtures or equipment may be removed by Lessee if removal will not result in damage to the Property. If such fixtures or equipment can only be removed by damaging the Property, then Lessee has the option of removing the same or allowing said fixtures or equipment to remain in place and become part of the Property and the property of Lessor. In the event Lessee exercises Lessee's option to remove said fixtures and equipment and removal will result in damage to the Property, then Lessee shall pay Lessor for the repair of the damage to be caused in an amount agreed upon between Lessor and Lessee prior to removal. All fixtures and equipment remaining on the Property after the termination of this Lease shall be the property of Lessor free of any claims or interest of Lessee. 19. INSPECTION. During the Lease term, Lessee shall permit Lessor, and Lessor's agents, representatives and designees free and unlimited access to the Property at all reasonable times for the purpose of inspection or of making repairs, additions or alterations required of Lessor by this Lease or to portions of the Property under the control of Lessor, if any; provided that this right to enter and make repairs shall not be construed as an agreement or requirement on the part of Lessor to make any repairs, additions or alterations to the Property unless specifically required of Lessor in this Lease. Lessor shall have the right to place and maintain "For Sale" and/or "For Rent" signs in conspicuous places on the borders of Property. Page 9of17 20. FAILURE TO PAY OR PERFORM. If Lessee fails to pay any sums required to be paid to any third parties by this Lease in the full amount and precisely at the times required or fails to provide or maintain insurance or to perform any other act(s) herein required, Lessor may (but shall have no obligation) make any such payment, effect such insurance or to perform any such act(s) and all sums paid or expenses incurred by Lessor thereby, including attorneys' fees and interest on all of said sums at the rate of ten percent (10%), per annum, from the dates of payment or expenditure until repaid, shall be payable by Lessee to Lessor immediately on Lessor's demand, all without prejudice to any other rights Lessor may have by reason of such defaults. 21. ABANDONMENT. Should Lessee abandon the Property while in default, Lessor may take immediate possession of the Property and all improvements and equipment thereon for the purpose of protecting and preserving the Property and may mitigate damages by renting or operating the Property during the period of enforcement of Lessor's rights under this Lease without prejudicing Lessor's rights or remedies under this Lease or by law or in equity. 22. ASSIGNMENT. Lessee shall not assign, convey or transfer this Lease or any interest herein, nor sublet the Property or any part thereof; nor shall this Lease be assigned, conveyed or transferred or the Property sublet by operation of law, without the prior written consent of Lessor. 23. EVENTS OF DEFAULT. Each of the following events shall constitute an "Event of Default": i) If Lessee shall make a general assignment or general arrangement for the benefit of creditors; or a receiver is appointed to take possession of substantially all of Lessee's assets located on the Property or of Lessee's interest in the Property or this Lease, where possession is not restored to Lessee within thirty (30) days free of any such claims; or the attachment, execution or other judicial seizure of substantially all of Lessee's assets located on the Property or of Lessee's interest in this Lease, where such attachment, execution or seizure is not discharged within thirty (30) days; ii) If Lessee shall fail to pay Lessor any rent or other payment required of Lessee precisely when the same shall become due and shall not make such payment within ten (10) days after notice thereof by Lessor to Lessee; Page 10 of 17 iii) If Lessee shall fail to perform or comply with any of the other covenants, conditions or agreements of this Lease to be performed by Lessee (other than payment of rent) and if the non-performance shall continue for a period of twenty (20) days after notice thereof by Lessor to Lessee; and iv) If Lessee shall vacate or abandon the Property. 24. REMEDIES. In the case of any Event of Default, Lessor shall be entitled to exercise any, all or any combination of the following remedies including any other right or remedy granted by law or in equity: i) Lessor shall have the right to cancel and terminate this Lease as well as all the right, title and interest of Lessee hereunder and in the Property by so notifying Lessee. Upon the giving of such notice, this Lease and the right, title and interest of Lessee hereunder and in the Property shall terminate in the same manner and with the same force and effect, except as to Lessee's liability for rent or damages for breach of a covenant, term or condition of this Lease as if the date fixed in the notice of cancellation and termination were the end of the term herein originally determined; and/or Lessor may elect, but shall not be obligated, to make any payments required of Lessee herein or comply with any agreement, term or condition required hereby to be performed by Lessee and Lessor shall have the right to enter the Property for the purpose of correcting or remedying any such default and to remain until the default has been corrected or remedied, but any expenditure for correction or remedy by Lessor shall be at the expense of Lessee and not be deemed to waive or release the default of Lessee or the right of Lessor to take any action as may be otherwise permissible hereunder in the case of any default; and/or 111) Lessor may reenter the Property immediately and remove the personal property and personnel of Lessee and store the personal property in a public warehouse or at a place selected by Lessor, at the expense of Lessee. After reentry, Lessor shall not be required but may terminate this Lease on giving twenty (20) days written notice of termination to Lessee. On such termination Lessor may recover from Lessee all damages proximately resulting from the breach, including attorneys' fees, the costs of recovering the Property, and the worth of the balance of this Lease over the Page 11 of 17 reasonable rental value of the Property for the remainder of the Lease term, which sum shall be immediately due Lessor from Lessee. Without notice, reentry will not terminate this Lease. After reentry without notice of termination, Lessor may relet the Property or any part thereof for any term, for the rent and on such other terms as Lessor may choose. Lessor may make alterations and repairs to the Property; and/or iv) Lessor may institute suit to specifically enforce any of Lessee's covenants and agreements hereunder and/or seek damages for breach of this Lease. 25. CUMULATIVE REMEDIES. All the foregoing remedies are cumulative and are given without impairing any other rights or remedies of Lessor given by law, equity, in other provisions of this Lease or otherwise. 26. CURING AN EVENT OF DEFAULT. In order to remedy any Event of Default for which notice is given by Lessor to Lessee, Lessee shall in addition to the payment of any sum required or the performance of any act required, pay to Lessor the agreed and reasonable sum of $500 as and for the expenses incurred by Lessor for the preparation of any necessary notice and its delivery, whether or not attorneys' fees or other professional fees are actually incurred; and shall in addition pay to Lessor all expenses reasonably incurred by Lessor and specified in said notice for any special reports or costs in connection with the preparation of said notice. No Event of Default shall be deemed cured and Lessee shall continue in default until any payments required to be made pursuant to the provisions of this section are made in addition to payment or actions required of Lessee as specified in said notice. 27. CONVEYANCE OF THE PROPERTY BY LESSOR. In the event of conveyance of the Property by Lessor, Lessor shall upon such conveyance be entirely freed and relieved of all liability under any and all covenants, conditions and agreements contained or derived from this Lease binding upon Lessor arising out of any acts, occurrences or omissions occurring after the consummation of the conveyance; and the purchaser at such conveyance and any subsequent conveyance of the Property shall be deemed, without any further agreement between the parties or their successors in interest, or between the parties and any such purchaser, to have assumed and agreed to be bound by all of the covenants, conditions and agreements Page 12 of 17 binding upon Lessor under this Lease, and Lessee shall look only to such purchaser for performance of such covenants, conditions and agreements. 28. NOTICE. Any notice, declaration, demand or communication to be given by a party to this Lease to the other shall be in writing and transmitted to the other party by certified U.S. mail, return receipt requested, postage fully prepaid, addressed as follows: To Lessor: Port of Mattawa 20140 Road 24 SW STE G Mattawa, Washington 99349 To Lessee: Grant County Sheriff P.O. Box 37 Ephrata, WA 98823 The mailing and certifying of any such notice as herein provided shall be sufficient service thereof. All notices given in compliance with this section shall be deemed effective two (2) business days following the deposit thereof in the U.S. mail, irrespective of the date of actual receipt of such notice by the addressee. Either party may by notice change its address for notice. 29. ATTORNEYS' FEES. If either party shall be in breach or default of this Lease, the non -defaulting party shall have the right at the defaulting party's expense, to retain an attorney or collection agency to make any demand, enforce any remedy, or otherwise protect or enforce such party's rights under this Lease. The defaulting party shall pay all costs and expenses so incurred by the non -defaulting party, including but without limitation, arbitration and court costs, collection agency charges, notice expenses, title search expenses, and reasonable attorneys' fees (with or without arbitration or litigation), and the failure of the defaulting party to promptly pay the same shall cause a failure of cure of the specified default and shall in itself constitute a further and additional default of this Lease. In the event either party hereto institutes any action (including arbitration) to enforce the provisions of this Lease or for any cause arising out of this Lease, or to procure an adjudication or determination of the rights of the parties hereto, the losing party shall pay or reimburse the prevailing party for all of its court costs and reasonable attorneys' fees and fees or costs normally charged or advanced by such attorneys for items such as title reports, photocopies, telephone tolls, mileage, travel, boarding, expert fees, accounting fees or other advanced costs and fees, including such costs and fees that are incurred on appeal and in the enforcement in any judgment. In the event it is necessary for either party to Page 13 of 17 employ counsel or incur expense, in or out of court in any bankruptcy or reorganization proceedings, to enforce, establish or protect such party's rights hereunder, such party who prevails therein or so protects or establishes such party's rights hereunder is entitled to recover from the other party all reasonable attorneys' fees and expenses so incurred. All payments and reimbursements required by this section shall be due and payable on demand, and may be offset against any sums owed to the party so liable in order of maturity, and shall bear interest at the rate of twelve percent (12%), per annum, from the date of demand to and including the date of collection or the due date of any sum against which the same is offset, as the case may be. 30. TIME OF ESSENCE. Time is specifically declared to be of the essence of this Lease and of the payment of all sums and the performance of all acts required to be done and performed by the parties hereto. 31. SECTION READINGS. The capitalized and underscored word or words appearing at the commencement of sections and paragraphs of this Lease are included only as a guide to the contents thereof and are not to be considered as controlling, enlarging or restricting the language or meaning of those sections or paragraphs. 32. NUMBER AND GENDER. The use of any gender or neutral term shall include all genders, and the use of any number shall be construed as singular or plural, as the case may require. The terms "Lessor" and "Lessee" refer to either the singular or the plural, as the case may be. 33. INVALIDITY. In the event any portion of this Lease should be held to be invalid by any court of competent jurisdiction, such holding shall not affect the remaining provisions hereof. In all provisions of this Lease where Lessee may be obligated to pay interest to Lessor, it is the intention of Lessor to charge a lawful rate of interest, and in the event it is determined by any court of competent jurisdiction that any rate herein provided for exceeds the maximum permitted by law for a transaction of the character evidenced by these presents, the amount so determined to be above the legal rate shall be applied against principal due hereunder or, if such principal has been paid, or otherwise at the discretion of the then holder of this Lease, said excess shall be refunded to Lessee on demand without interest, and the interest rates specified hereunder shall be reduced to the maximum rate then permitted by law for the type of transaction to which this Lease pertains. Page 14 of 17 34. DEFENSE AND INDEMNITY. All covenants, promises, conditions and agreements made herein by each party to this Lease shall include as a specific part thereof a covenant to defend, indemnify and hold harmless the other party to this Lease from and against any and all claims, liabilities or damages resulting from a breach or default in the performance of such covenant, promise, condition or agreement. Further, all cost and expense required for or occasioned by compliance with a covenant, promise, condition or agreement by which either party hereto is bound shall be at the sole cost and expense of the party so bound unless this Lease specifically provides otherwise. 35. WAIVER. No assent, express or implied, by Lessor to any breach in the performance by Lessee of any of Lessee's covenants, agreements, conditions or terms hereof shall be deemed or taken to be a waiver of any succeeding breach of any covenant, agreement, condition or term hereof. 36. LEGAL RELATIONSHIP. The parties to this Lease execute the same solely as a landlord and a tenant. No partnership, joint venture or joint undertaking shall be construed from these presents, and except as herein specifically provided, neither party shall have the right to make any representations for, act on behalf of, or be liable for the acts or liabilities of the other. All terms, covenants and conditions to be observed and performed by either of the parties hereto shall be joint and several if entered into by more than one person on behalf of such party, and a default by any one or more of such persons shall be deemed a default on the part of the party with whom said person or persons are identified. Unless otherwise specifically provided herein, no third party is intended to be benefitted by this Lease. Any married person executing this Lease hereby pledges his or her separate Property and marital communities in satisfaction hereof. 37. APPLICABLE LAW/CONSTRUCTION/VENUE. This Lease shall be governed and interpreted in accordance with the laws of the State of Washington. In the event of conflict between this Lease and any exhibits or documents attached hereto, the terms of this Lease shall be controlling. In the event this Lease is in conflict with the provisions of any laws or statutes governing the subject matter hereof, such laws or statutes only to the extent of such conflict shall be controlling. The venue of any action brought to interpret or enforce any Page 15 of 17 provision of this Lease shall be laid in the county in which the Property is situated. All sums herein referred to shall be calculated by and payable in the lawful currency of the United States. 38. ENTIRE AGREEMENT. This Lease contains the entire agreement of the parties hereto and, except for any agreements or warranties otherwise stated in writing to survive the execution and delivery of this Lease, supersedes all of their previous understandings and agreements, written and oral, with respect to the subject matter hereof. Neither Lessor nor Lessee shall be liable to the other for any representations made by any person concerning the Property or regarding the terms of this Lease, except to the extent that the same are expressed in this Lease. This Lease may be amended only by written instrument executed by Lessor and Lessee or their lawful successors and assigns subsequent to the date hereof. 39. EFFECT OF SIGNATURES. All signatures below are representative signatures provided in each signatory's representative capacity. 40. HEIRS AND ASSIGNS. The terms, covenants, agreements and conditions of this Lease are binding upon and shall inure to the benefit or detriment of the legal representatives, assigns and successors in interest to the parties hereto. Page 16 of 17 PORT DISTRICT NO, 3 OF GRANT COUP QTY, a Washington municipal col. )oration B Lars Lela Executive D-Irector Date L ES S E E DATED this '-day of 1204 U/V41; WES Bpara lerk- of thLe rd GRANT COUVFY SHERIFF OF ORANTA1ASH1'1NTGT0N, a Was,W'ngton lawr enforcement deparfin4en Giant ,oynnt�yv Y. By! -F Tom Jones, Sheriff Rebekah M. Kr, # 53257 Deputy Prosecuting Attorney Grant County Prosecutoir's Office P.O. Box 3 7 Ephrata, WA 98823 509-754-2011 rmkaylor@grentcountywa.gov -0k:7 - 2101-1 Date Date Page 17 of 17