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13-062.00 Northwest Christian Schools IISV-FS21 Userslmcalhoun\City DepartmentslFinancelCity Hal112013-2017 lease extension\COSV Lease Extension Apr 12013 to Mar 312017.docx LEASE EXTENSION & EXPANSION AGREEMENT THIS AGREEMENT made this 22"'"day of March,2013,by and between CITY OF SPOKANE VALLEY,whose mailing address,is 11707 East Sprague, Spokane Valley, Washington 99206,(hereinafter referred to as"Lessee"),and NORTHWEST CHRISTIAN SCHOOLS, a nonprofit corporation,(hereinafter referred to as"Lessor"); WHEREAS,The City Of Spokane Valley,as Lessee,and Northwest Christian Schools,as Lessor, entered into a Lease Agreements and renewals for Suites 101, 103, 104, 105, 106,304,Suite B-3 and B-4 warehouse space as noted below,a copy of which is attached hereto as Exhibit"A;"and WHEREAS,the term of the Leases expires on March 31st,2013. WHEREAS,The Lessee desires to continue said lease for an additional Four(4)Years beyond the end of its current term under the same terms and conditions set forth in said lease,as amended herein. NOW,THEREFORE,for and in consideration of the recitations set forth,the terms and provisions herein contained,and the mutual benefits to be derived here from,the parties do hereby contract,covenant and agree as follows: 1. Extension of Lease. The Leases,attached hereto as Exhibit"A"(including extensions dated March 15,2005;July 1,2006;November 1,2007 and December 15,2008)and incorporated herein by reference,is hereby renewed for a Four(4)Year term,beginning on April 1,2013 and terminating on March 31st,2017. The Lessee covenants and agrees to comply with all the terms and conditions of said Lease,as herein amended,and to be bound thereby and to pay all rent in the manner therein provided. 2.Premises Leased. Lessee is leasing 22,646 square feet within the Clocktower Building,noted as follows: Suites 101,103, 104, 105, 106 and 304.As well as Suite B-3 consisting of 3,290 square feet of office space and B-4,2,300 square feet of warehouse space in the west wing building. All as shown on Exhibit`B"attached hereto. 3. Amendments to Lease. Lessee and Assignee hereby agree to amend certain provisions under the Lease as follows: a. NNN Charges. Property Taxes,Utilities,Maintenance,Insurance,Administrative& Common Area Maintenance shall continue to be paid by Lessee for Suite B-4 as follows:2,300 sq.ft.of 42,672 total CAM sq.ft,or 5.389%of building premises. CAM charges are billed quarterly. b. Rent: Monthly rent for the period of April 2013 through March 2014 shall be as follows: Clocktower Suites: $29,169.25 B-3: $ 3,456.50 B-4(base rate): $ 707.58 Total Monthly Rent: $33,333.33 Monthly rent for the period of April 2014 through March 2015 shall be as follows: Clocktower Suites: $29,752.64 B-3: $ 3,525.63 B-4(base rate): $ 721.73 Total Monthly Rent: $34,000.00 1 Is: 1 • 11SV-FS21 Userslmcalhoun\City Departments\FinancelCity Hall12013-2017 lease extension\COSV Lease Extension Apr 12013 to Mar 312017.docx Monthly rent for the period of April 2015 through March 2016 shall be as follows: Clocktower Suites: $30,347.70 B-3: $ 3,596.14 B-4(base rate): $ 736.16 Total Monthly Rent: $34,680.00 Monthly rent for the period of April 2016 through March 2017 shall be as follows: Clocktower Suites: $30,954.66 B-3: $ 3,668.06 B-4(base rate): $ 750.88 Total Monthly Rent: $35,373.60 c. Option to Terminate. Lessee shall have the option to terminate this lease at the end of the 36th month(March 2016)by providing at least Six(6)months prior written notice to Lessor. Lessee shall pay$34,680.00 to Lessor upon termination for the right to exercise this option. d. Carpet Replacement. Lessee may request that some or all of the carpets be replaced in the leased premises. In that event,Lessor and Lessee shall work together as to timing and locations to be re-carpeted. The Parties shall split the cost evenly of the materials and labor to remove and replace the carpet,however the Lessee shall pay for all cost associated with moving and replacing furniture. Lessee shall use chair matts to protect the new carpet once installed. Except as modified herein all other terms and conditions of said Lease shall remain in full force and effect. 4.Waivers,Modification or Amendment. No waiver,modification or amendment of any term or condition of this Agreement shall be effective unless in writing,and no waiver or indulgence by either party or any deviation by the other party from full performance of this Agreement shall be a waiver of the right to subsequent or other full,strict,and timely performance. 5. Merger Clause. This Agreement and the Lease Agreement attached as Exhibit A express the full and final purpose and agreement of the parties and will not be qualified,modified or supplemented by course of dealing,usage of trade,or course of performance. There are no verbal agreements which qualify, modify or supplement this Agreement. 6. Counterparts. This Agreement may be executed in two or more parts,each of which shall be deemed an original,but all of which together shall constitute one and the same instrument. 2 Is: � Q IISV--FS21 Userslmcalhoun\City Departments\FinancelCity Hall12013-2017 lease extension\COSY Lease Extension Apr 12013 to Mar 312017.docx IN WITNESS WHEREOF,the parties hereto have set their hands this day of 2013. LESSOR LESSEE NORTHWEST CHRISTIAN SCHOOLS CITY OF SPOKANE VALLEY BY: Y \r �K BY: J ✓ 4 ITS: BY: e102.4.-..--4-1-44 . ITS Cam!1) / ti1 ar, ITS: f J Executed On 7////f Executed On 5/2-6.2/l 3 ADDRESS FOR NOTICES AND RENT ADDRESS FOR NOTICES Northwest Christian Schools,Inc. City of Spokane Valley C/o WEB Properties,Inc. 11707 E.Sprague Suite 106 P 0 Box 21469 Spokane Valley,WA 99206 Spokane,WA 99202 3 .014( c Exhibit A Spokane - '.ay Contract No. CO3-�, Approved: -Z."kr,rti/lo,a • COMMERCIAL LEASE WITHIN CLOCK TOWER PROFESSIONAL BUILDING TIIIS LEASE, made and entered this Ac/ day of January, 2003, by and between Northwest Christian Schools, a non-profit corporation, whose mailing address is 5104 E. Bernhill Rd., Colbert, WA 99005 hereinafter referred to as Lessor; and the City of Spokane Valley, whose mailing address is 11707 East Sprague, Spokane Valley, Washington 99206, hereinafter referred to as Lessee. WITNESSETR: For and in consideration of the mutual promises contained herein, the parties covenant and agree as follows: 1. LEASED PREMISES. Lessor does hereby demise, let and lease unto the Lessee, the following described property or portion of property hereinafter referred to as "Leased Premises": Suites 101, 105 and 106 situated in the West portion and East One- Half of the first floor as shown on Exhibit "A", being part of the Clock Tower Professional Building at Redwood Plaza shown as the building together with the non-exclusive right to use the parking areas in common with the owner, occupants, users and visitors of the building premises, at 11707 East Sprague Avenue, Spokane Valley, Washington 99206. Suite 101 consisting of approximately 1,924 square feet of net rentable area, Suite 105 consisting of approximately 3,350 square feet of net rentable area, and Suite 106 consisting of 10,666 square feet of net rentable area. Total net rentable area is approximately 15,940 square feet. Said building is situated on a portion of the East One-Half of Tract 153 and the West One-Half of Tract 154 of SPOKANE VALLEY, in the County of Spokane, State of Washington. Said Premises shall also include the parking lot area located north of the Clock Tower Professional Building that is presently surrounded by a fence,hereinafter"Restricted Parking." 2. TERM. The term of this Lease shall be four (4) years and four (4) months, commencing on November 1, 2002 and ending February 28, 2007. In the event occupancy occurs in the middle of any month, rent for the first month shall be prorated to the first day of the next succeeding month and thereafter, all rental payments shall be due and payable on the first (1st)day of each month. CO3-09 3. RENT. Lessee covenants and agrees to pay to the Lessor at WEB Properties, Inc. 140 S. Arthur, Suite 510, Spokane, WA 99202, or to such other place as the Lessor may hereafter designate, monthly rental in the amount of and due and payable on the first(1st)day of each month as noted. A late fee of five percent (5%) of rental amount will be added should • payment not be received by the tenth (10th) day of each month. This is a gross lease and includes all costs for the subject Leased Premises and common areas. Rent for the Leased Premises shall be as follows: A. The rental for the first four (4) months of this Lease shall be at no charge. B. The rental for the twelve (12) month period commencing March I, 2003 and expiring February 29, 2004 shall be Eighteen Thousand Eight Hundred Ninety Four and 21/100 Dollars ($18,894.21), per month payable in advance on the first(1st) day of each month. C. The rental for the twelve (12) month period commencing March 1, 2004 and expiring February 28, 2005 shall be Twenty Thousand Eight Hundred Eighty Six and 71/100 Dollars ($20,886.71) per . month payable in advance on the first(1st)day of each month. D. The rental for the twelve(12) month period commencing March 1, 2005 and expiring February 28, 2006 shall be Twenty Two Thousand Eight Hundred Seventy Nine and 21/100 Dollars ($22,879.21)per month payable in advance on the .first(1st)day of each month. E. The rental for the twelve (12) month period commencing March 1, • 2006 and expiring February 28, 2007 shall be Twenty Four Thousand Eight Hundred Seventy One and 71/100 Dollars ($24,871.71)per month payable in advance on the first(1st) day of each month. F. For the first 12 months of this lease there shall be no charge for the use of the Restricted Parking. Thereafter, if Lessee elects to use the Restricted Parking, Lessee shall pay an additional one hundred dollars($100.00) per month for use of the Restricted Parking. 4. USE OF PREMISES. The Leased Premises shalt be used for commercial business purposes as permitted within a commercial business zone in Spokane County, Washington and all activities incident thereto and for no other purpose without the prior written consent of the Lessor first obtained. Lessee shall not use or allow the use of the Leased Premises P;/email attuchments\Conintercial Lease 31,l1nnl city hall.doc 2 in any manner that causes damage to the real property or improvements, nor shall Lessee use or allow use of the Leased Premises in any manner for any illegal purpose. Lessee shall comply with all governmental rules, orders, regulations, or requirements relating to the use and occupancy of the Leased Premises. 5. RULES AND REGULATIONS. Lessor reserves the right to promulgate such reasonable rules and regulations("Rules and Regulations")relating to the use of parking areas as it may deem appropriate and for the best interest of the tenants, and Lessee agrees to abide by such rules and to cooperate in the observance'thereof. Such Rules an.d Regulations shall be binding upon Lessee upon delivery of a copy thereof to Lessee provided the Rules and Regulations may not change or modify terms or covenants in this Lease. If the terms of the Rules and Regulations contradict any provision of this Lease, the terms of the Lease shall prevail. Said Rules and Regulations may be amended by Lessor from time to time with sixty (60) clays' advance notice to Lessee. Any material violation of such rules and regulations by Lessee, its officers, agents, employees or subtenants will constitute a breach of this Lease and entitle the Lessor to claim a default thereunder in the same manner and to the same extent as any other default under the Lease. A copy of the Rules and Regulations, current as of the date of this Lease, is attached hereto as Exhibit "C" and by this reference incorporated herein. 6. REAL ESTATE TAXES. To the extent imposed, the Lessor shall pay all real property taxes.due or falling due on said Leased Premises during the term of this Lease. 7. LESSOR TO COMPLETE ALL LEASEHOLD IMPROVEMENTS. The Lessor shall complete all leasehold improvements in a first-class, workmanlike manner substantially in accordance with the plans and specifications which have been displayed to and shall be agreed upon between the parties to this Lease ("Leasehold Improvements"). The preliminary plans and specifications are set forth on Exhibit "B". All alterations, physical additions or improvements in or to the Leased Premises shall, when made, become the property of Lessor and shall be surrendered to Lessor upon termination of. the Lease, either by lapse of time or otherwise, provided, however, this clause shall not apply to fixtures, equipment or furniture owned by Lessee and as otherwise provided in Section 18. 8. MAINTENANCE. Lessor shall maintain in good condition, the improvements on the real property, including the parking lot, leased pursuant to this Lease. This shall include any and all maintenance required to keep the improvements on the real property, including the P:\cmail attachmentslCot unercial Lease 31,Gna1 city haiLdoc 3 parking lot, which is the subject matter of this Lease,in the same condition, less normal wear and tear, casualty, condemnation and repairs required to be made by Lessee, as of the date of commencement of this Lease. 9. PARKING AND PARKING LOT MAINTENANCE. The Lessor shall keep and maintain the parking lot, landscaping and Restricted Parking in a neat and clean condition and repair at all times including snow removal during the winter season. Lessee agrees that there shall be no vehicles left overnight in the parking lot area by Lessee or any employee of the Lessee in order to prevent interference with the cleaning, maintaining and snow removal of the . parking lot area. Lessor shall reserve for exclusive use by Lessee ten (10) parking spaces on the north side of.the Clock Tower Professional Building. 10. UTILITIES. The Lessor agrees to pay all charges for light, heat, water, sewer, garbage and all other utilities and services furnished to the Leased Premises except telephone. Lessor agrees to provide janitorial services sufficient to keep said Leased Premises and common area neat,clean and free of garbage and debris at all times. 11. ACCIDENTS AND LIABILITY. A. Neither Lessor nor its agents shall be liable for any injury or damage to persons or property sustained by Lessee or any others, in and above the Leased Premises. Lessee agrees to defend and hold Lessor and its agents harmless from any claim, action and/or judgment for damages to property or injury to person suffered or alleged to be suffered on the Leased Premises by any person, firm or corporation, unless caused by Lessor's negligence. B. Lessor and Lessee each agree to maintain bodily injury and property damage comprehensive public liability insurance on the Leased Premises in the minimum single limit of One Million and 00/100 Dollars($1,000,000.00)and shall name Lessor as an additional insured. Lessee shall furnish Lessor with a certificate indicating that the insurance policy is in full force and effect and listing Lessor as an additional insured on the policy. • C. Lessee shall, at its sole cost and expense, cause to be placed i.n effect immediately upon commencement of the term of this Lease, and shall maintain in full force and effect during such term, a fire and extended coverage insurance policy covering all Lessee's improvements, and its fixtures, equipment, furniture and inventory in the Leased Premises, on a full replacement cost'basis (no deductions for depreciation), insuring against risks covered by an extended coverage form policy. P:lemail attacltntents\Commercial Lease 3I,final city hall.doc 4 • D. Lessor shall cause to be placed in effect immediately upon commencement of the term of this Lease, and shall maintain in full force and effect during such term, a fire and extended coverage insurance policy covering all improvements, structures and their contents in the entire property of which the Leased Premises are a part, but not including Lessee's leasehold improvements, equipment, fixtures, furniture and inventory, on a basis satisfactory to Lessor's permanent lender or the holder of any first lien mortgage or deed of trust on the land and building, insuring against risks covered by an extended coverage form policy. 12. LIENS AND INSOLVENCY. Except as otherwise provided herein, Lessee shall keep the premises free from any liens arising out of any labor performed or materials furnished to, or any obligations incurred by Lessee, and shall hold Lessor harmless against same. In the event Lessee becomes insolvent, bankrupt, or a receiver, assignee or other liquidating officer is appointed for the business of Lessee, Lessor may cancel this Lease at its option. 13. SUBLETTING OR ASSIGNMENT. Except as otherwise provided herein, Lessee may not assign or sublet all or any part of this Lease, without Lessor's prior written consent, which consent will not be unreasonably withheld. 14. ACCESS. Lessor shall have the right to enter the Leased Premises at all reasonable times and upon three (3) days' written notice, except for emergencies for the purpose of inspection or of making repairs, maintenance or alterations, or to show the Leased Premises to prospective tenants sixty (60) days prior to the expiration of the term of this Lease. Lessor shall have the right to place a For Rent sign in connection with the premises for the sixty (60) days prior to the end of the term of this Lease. 15. POSSESSION AND Oi1II,T EMOYM!~NT. The Lessee shall be entitled to possession of the Leased Premises as soon as the same are ready for occupancy as hereinabove described and shall be entitled to continued quiet enjoyment of the Leased Premises during all periods under the term of this Lease, provided that the Lessee shall be in good standing and shall have paid all rent reserved under the Lease and performed all covenants agreed to be performed by the Lessee under the term of the Lease. 16. DAMAGE OR DESTRUCTION. In the event the Leased Premised are rendered untenantable in whole or in part by fire, the elements, or other casualty, Lessor may elect at its option, within ten (10) days of the event not to restore or rebuild the premises and shall so notify Lessee, in which event Lessee shall vacate the Leased Premises and this Lease P;kmsil attachments\Commercial Lcasc 31 final city hsll.doc 5 . shall be terminated; or in the alternative, Lessor shall notify Lessee within ten (10) days after receiving notice of such casualty that the Lessor will undertake to rebuild or restore the Leased Premises, and that such work can be completed within ninety (90) days from the date of such notice of intent. If Lessor cannot restore or rebuild the Leased Premises within the said ninety (90) days, except for delays which are not the fault of the Lessor, then the Lease may be terminated at the Lessee's option by ten (10) days' written notice to Lessor. During the period that the Leased Premises are not tenantable, rent shall abate in its entirety. 17. SIGNS. The Lessee shall be permitted to have signage in connection with the occupancy of. the Leased Premises. All signs or symbols placed by Lessee shall be subject to Lessor's prior written approval, which will not be unreasonably withheld or delayed. All signs shall be non-illuminated and shall be consistent with other signage placed upon the building or on any sign post established for the general use of all tenants within the building or using other building on the property common to the area. Signs shall generally conform to the size and type of sign currently used currently on the exterior of the Clock Tower Professional Building at the Redwood Plaza. At the termination of the Lease, the Lessee shall remove all signs, at Lessee's expense, placed in, on or about the Leased Premises and will repair any damage caused by the removal of said signs. If the Lessee has a sign in a common use sign post or board, Lessee shall place plastic in the sign at the termination of the Lease. 18. ALTE.RAT1ONS. Lessee may make alterations, additions and improvements in said Leased Premises, at its sole cost and expense after obtaining prior written consent of Lessor, which such consent will not be unreasonably withheld, and employing.a contractor approved by Lessor. Lessor's consent and approval of contractor shall not be required for cosmetic repairs such as painting and carpeting. In the performance of such work, Lessee shall comply with all laws, ordinances, rules and regulations of any applicable public authority, and shall save Lessor harmless from any damage, except for Lessor's negligence. Upon termination of this Lease and upon Lessor's request or with Lessor's approval, Lessee shall remove such improvements and restore the Leased Premises to their original condition, except Lessee shall not be required to remove the leasehold improvements provided for herein under Sections 7 and 38 and Exhibit "B". Any improvements not so removed shall remain in and be surrendered with the Leased Premises as a part thereof. Trade fixtures may be removed at Lessee's expense, provided that Lessee shall pay for any damage caused by such I'aemail attachmentssCommcrcial Lease 31,final city hatIdoc 6 • • • removal. Nothing contained herein shall prevent or restrict Lessee's right to remove the Dias, related fixtures, sound and electronic system, and cabinets which are installed on the Leased Premises. Upon removal of the above items, Lessee shall repair any damage caused by the removal of the above items,reasonable wear and tear excepted. 19. ADA REQUIREMENTS. Throughout the term or any extended term of this Lease, Lessee shall be responsible for compliance with Title HI of the Americans with Disabilities Act, 42 U.S.C., Section 1200, et seq. (as amended), as it applies to Lessee's use and occupancy of the Premises. In the event compliance shall be required, all alterations to the Premises shall be accomplished pursuant to Section 18 herein. 20. CONDEMNATION. In the event that any government, or any agency or instrumentality having the power of eminent domain shall, by condemnation or deed in lieu thereof, take title, possession or the right to possession of the Leased Premises or any part thereof, Lessor may, at its option, terminate this Lease as of the date of such taking,and if Lessee is not in default under any of the provisions of this lease on said date, any rental prepaid by Lessee shall, to the extent allocable to any period subsequent to the effective date of the termination, be promptly refunded to Lessee, provided Lessee shall be entitled to seek compensation for any Lessee improvements which are so taken by eminent domain. 21. HAZARDOUS WASTE. Lessor represents and warrants to Lessee that there are no asbestos, asbestos containing material, radon gas, PCB's, lead paint or hazardous, dangerous, regulated toxic wastes, substances or materials, as such terms are defined or regulated by any applicable laws, rules, regulations or ordinances (collectively, "Hazardous Materials"), in, on, under or about the Leased Premises or the real property in which the Leased Premises are situated. Landlord shall, at Landlord's sole cost and expense and in compliance with applicable laws, rules, regulations and ordinances, remove any Hazardous Materials discovered by Lessor or Lessee at the Leased Premises during the term of this Lease, unless such Ha%ardous Materials were caused by or brought to the Leased Premises by Lessee or any party for whom Lessee is legally responsible. Lessor shall indemnify and hold Lessee harmless for all losses, liabilities, claims, damages and demands, including reasonable attorneys' fees and costs litigation, arising out of or in any way connected with the existence of any Hazardous Materials, and for all costs of inspection and removal of such Hazardous Materials. The indemnification and hold harmless provision stated in this Section 21 shall not apply to any Hazardous Materials that were caused or P:kmail attachments\Commercial Lcasc 3 l,final city hall.doc 7 brought to the Leased Premises by Lessee or any party for whom Lessee is legally responsible. Lessee shall be solely responsible for the removal and clean-up of any Hazardous Materials that were caused or brought to the Leased Premises by Lessee or any party for whom Lessee is legally responsible. 22. COrNFIRMATION BY LESSEE. Lessee agrees, from time to time during the lease term, upon not less than fifteen (15) days' prior written request by the Lessor, to sign and make available to the Lessor, a confirmation stating that the Lease is in full force and effect and unmodified as of the date of the signing of the confirmation. The purpose of'such confirmation shall be to entitle the Lessor to provide said confirmation to a mortgagee or prospective mortgagee providing financing for the subject real property and the improvements thereon. 23. EXHIBITS. The exhibits attached to this Lease are made a part hereof and by this reference incorporated herein. 24. DEFAULT AND RE-ENTRY. If the Lessee shall fail to keep and perform any of the covenants and agreements herein contained, other than the payment of rent, and such failure continues for thirty (30) days after written notice from Lessor, unless appropriate action has been taken by Lessee in good faith to cure such failure, Lessor may terminate this Lease and re-enter said Leased Premises, or in the alternative, Lessor may, without terminating this Lease, re-enter said Leased Premises, sublet the whole or any part thereof for the account of the Lessee for the balance of the term of this Lease, and Lessee covenants and agrees to pay to Lessor the fair rental value of any deficiency arising from the re-letting of the Leased Premises at a lesser amount than herein agreed. Lessee shall pay such deficiency each month as the amount thereof is ascertained by Lessor, or at the Lessor's option, shall pay the present value (discounted at the rate of seven (7) percent per annum) of the balance of the rent for the remainder of the term of the Lease less the present value (discounted at the same rate) of the fair market value of the Leased Premises for said'period. 25. BREACH OF LEASE. If the Lessee breaches this Lease after written notice and grace periods, then this Lease may be terminated by the Lessor in the following manner. The Lessor shall serve upon the Lessee, by registered or certified mail, at the Lessee's last known address, a notice in writing of the fact of said breach or breaches and a detailed description of said breaches. From and after the mailing of said notice, the Lessee shall have ten (10) days to cure any breach for the nonpayment of rent and thirty (30) days to cure any other breach of the P:lcmnil a achrnents\Commcrcial Lase 31,final city hall.doc 8 • Lease. Failure of the Lessee to remedy said breaches within said period shall result in Lessee's total forfeiture of all its right, title and interest under this Lease, and the Lessor shall have the right to enter said premises and remove the Lessee and her property therefrom, take immediate possession for the purpose of protecting said property and cancel this Lease in its entirety and re- let the Leased Premises. In all cases of such forfeiture, Lessor shall make a good-faith effort to mitigate its damages. Lessee shall be liable only for reasonable deficiencies, which do not exceed the fair market value of rent resulting from re-letting. 26. REMOVAL OF PROPERTY. In the event Lessor lawfully re-enters the Leased Premises as provided herein, Lessor shall have the obligation to remove all of the personal property located therein and to place such property in storage at the expense and risk of Lessee. 27. SUBROGATING WAIVER. Lessor and Lessee each releases and relieves the other and waives its entire right of recovery against the other for loss or damage arising out of,or incident to, all perils described in the fire and extended coverage insurance policy approved for use in the State of Washington,which occurs in,on or about the Leased Premises,whether due to the negligence of either party, their agents or employees or otherwise. 28. SUBORDINATION. Except as otherwise provided herein, Lessee agrees that this Lease shall be subordinate to any mortgages or deeds of trust placed on the property provided that in the event of foreclosure, if Lessee is not then in default and agrees to attorn to the mortgagee or beneficiary under deed of trust, or purchaser at a foreclosure sale, such mortgagee or beneficiary or purchaser shall recognize Lessee's right of possession for the full term of this Lease. Lessor agrees to use Lessor's best efforts to obtain a Non-Disturbance Agreement from any mortgagee,beneficiary or purchaser. 29. NO WAIVER OF COVENANTS. Any waiver by either party of any breach hereof by the other shall not be considered a waiver of any future similar breach. 30. ENTIRE AGREEMENT. This Lease contains all the agreements between the parties and no modifications shall be effective except by written instrument, signed by both parties. 31. SURRENDER OF PREMISES. Lessee agrees, upon termination of this Lease, to peacefully quit and surrender the Leased Premises to Lessor without notice, to leave the Leased Premises neat and clean, .well maintained, in good condition, normal wear and tear excepted, and to deliver all keys to the Leased Premises to Lessor. P:len ai!attachmentslCarmnereial Lease 31,final city hall.doc 9 32. HOLDING OVER. If Lessee, with the implied or express consent of Lessor, shall hold over after the expiration of the term of this Lease, Lessee shall remain bound by all the covenants and agreements herein, except that the tenancy shall be from month to month and monthly rent shall be otherwise agreed upon. 33. BINDING ON HEIRS, SUCCESSORS AND ASSIGNS. This Lease shall be binding upon the heirs, executors, administrators, successors and assigns of both parties hereto, except as hereinabove provided. This Section 33 shall not constitute a consent to assignment on the part of Lessor. 34. NOTICE. Any notice required or allowed to he given by either party to the other shall be deposited in the United States mail, registered or certified, return receipt requested, postage prepaid, addressed to Lessor or to the Lessee at their addresses stated below, or at such other address as either party may designate to the other by notice given as herein provided. Lessor at: Northwest Christian Schools C/O WEB Properties Inc. 140 S. Arthur Suite 510 Spokane, WA 99202 Lessee at: City of Spokane Valley Attn: City Manager 11707 E. Sprague Suite 106 Spokane Valley, WA 99206 35. NON-SMOKING BUILDING POLICY. It is agreed between Lessor and Lessee the Clock Tower Professional Building is a smoke-free office complex. There is to be no smoking at any time inside of the office building. Smoking is not permitted near any exterior entrance door to the Clock Tower Professional Building. If smoking within or outside this complex becomes a problem, the Lessor has the right to cancel this Lease pursuant to Section 25 herein. 36. FRONT DOOR SECURITY. For the safety of all tenants and the janitor all exterior doors must be locked after 7:00p.m. Monday through Friday. On the weekends all doors Must be locked at the time of entering and at the time of exiting. Notwithstanding the above, Lessor recognizes that the City may occupy and use the Leased Premises after the above hours for meetings and other City activities. The parties shall make arrangements that permit the City P:Icmail attachmcnts\Commcrcial Lease 31,final city hall.dac 10 • to unlock exterior doors after 7:00 p.m. Monday through Friday and to use the Leased Premises on Saturdays for the purpose of engaging in City business. 37. TIME OF ESSENCE. Time is of the essence in all provisions of this Lease. 38. IMPROVEMENTS. Lessor shall complete, at Lessee's sole cost, those improvements as noted in Exhibit"B". The rental amount includes an estimate of the costs noted in Exhibit "B" (except for Suite 105) plus a Construction Management Fee of five percent (5%). The total actual cost of Leasehold improvements plus an eight percent (8%) annual interest rate thereon will be amortized over 48 months commencing March 1, 2003. Should the actual amounts paid for improvements be less than those costs outlined in Exhibit "B",the rent shall be adjusted accordingly. Noted costs as outlined in Exhibit "B" are based upon current building standard improvement materials. Should changes be made to the building standard improvement materials that increase the cost of Exhibit "B", the rents shall be adjusted accordingly. Upon execution of this Lease, the Leasehold Improvements shown on Exhibit "B" and as otherwise agreed shall be immediately commenced. 39. OPTION TO EXPAND. During the lease term, Lessor shall provide Lessee the option to expand into any available space at the then current lease rate and remaining term the Lessee is obligated. 40. FURNITURE. During the lease term and at no additional cost to Lessee, Lessee is allowed the use of approximately 22 cubicles, 1 reception cubicle and all seating available of Technion furniture currently in Suites 101 and 106. In addition, Lessee shall be given the use of all other available furniture as needed on an as-available basis. 41. RENT DEFERRMENT. Lessee is hereby allowed to defer payment of rent for a period of five (5) months beginning March 1, 2003 to July 31, 2003, with deferred and current . rent due by August 10, 2003. Late charges shall only apply if said rent is not paid by August 10, 2003. 42. ARBITRATION. In the event of a disagreement arising under this Lease, all matters shall be submitted to arbitration as follows: A. The party seeking arbitration shall submit, in writing, to the other party, a statement of the issue(s) to be arbitrated and shall designate a party to act as arbitrator on behalf of the party seeking arbitration. The responding party shall supply a statement of any counter or additional issue(s) to be arbitrated and shall nominate an arbitrator to act for the responding Facmail attachmentslConnercial Lease 31,final city hall.doc 11 party. This process shall be accomplished within fourteen (14) days after the party seeking arbitration has deposited in the United States mail, postage prepaid, the initial notice of intent to arbitrate, addressed to the other party at the address hereinabove shown. B. The two (2) arbitrators selected shall immediately select a third arbitrator. The arbitrators thus convened shall, within a time established by a majority vote of the arbitrators; conduct a hearing on the issues submitted to them and render a decision on each issue, in writing, to each of the parties to the dispute. Any decision as to procedure or substance made by a majority of the arbitration panel shall be binding. A decision by a majority of the arbitrators on any issues submitted shall be the decision of the arbitration panel as to that issue. The arbitrators shall have authority to award costs and attorneys' fees to either party in accordance with the merits and good faith of the position asserted by the parties. Said final decision of the arbitration may be submitted to the Spokane County Superior Court to be entered in the form of a judgment therein. C. In lieu of appointing three (3)arbitrators in the manner set forth above, the parties may, by written agreement,designate a single arbitrator. 0. Except as provided herein, the arbitration proceedings shall be conducted in accordance with the rules of the American Arbitration Association and the statutes of the State of Washington pertaining to binding arbitration. N WITNESS WHEREOF, the parties hereto have executed this instrument at Spokane Valley, Washington, on the day and year first above written. LESSOR: LESSEE: NORTHWE`T CHRISTIAN SCHOOLS CITY OF SPOKA ALLEY By: J jam � /. By: ./c / LE LP-. ALTON Its: GA>1u,-. Its: Interim City Manager By: ilu�.i CLt.._��1_. r,• Vtc- C &iv►MA Fo�Nt ckTior,) c‘iL ?:\email attachmcnts\Commercial Lease J!,final city hali.doc 12 • STATE OF WASHINGTON ) ) ss. County of Spokane ) I certify that I know or have satisfactory evidence that v�• the person who appeared before me, and said personiacknowledged thatihoisigned this instrument, on oath stated that iheq w�+s authorized to execute the jnstrument and acknowledged it as the F r T of Northwest Christian Schools to ie the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED this& day of January, 2003. GA1eRF' a. ouA�, �y• ': Print Name:G /,a. A.6.ihmt:h. ��f v NOTARY PUBLIC in and for the State of O lj'0�0� Washington, residing at PrNnm %3 PV oe: = My Commission expires: (a/b6/asf if STATE OF WASHINGTON ) ) ss. County of Spokane ) I certify that I know or have satisfactory evidence that Lee Walton is the person who appeared before me, and said person acknowledged that he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the Interim City Manager of the City of Spokane Valley, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED this ' day of January, 2003. Ca-Z.4 "1174.1..i...e.t.) Print Name: att /VI u,//er" NOTARY PUBLIC in and for the State of • Washington,residing at LQ/et Fi Lark, My Commission expires: /d / • • • P:email attschmcr,tslCamnercial Lease 31,final city halIdoc 13 EXHIBIT "A" Tile Flo Redwood Plaza/Clocker Suite 101 1 ,924 Rentable Square Feet EXHIBIT "A" MPH 7 PUB'LJ@ R+ESTROORI REF°i®Of1 7 7 .E-PHA IC.AL cji \ir-L) CLOCKTOWER BUILDING/REDWOOD PLAZA SUITE 106 FIRST FLOOR 1 0,666 SQ. FT. r ,r EXHIBIT "B" KOFMERL,INC Estimate P.O.BOX 14721 DATE ESTIMATE NO. SPOKANE,WA 99214 (509)'838-2749 FAX(509)838-2586 1/13/2003 111 [TAME/ADDRESS °Webb Propeavcs 140 S.Arthur Suite 4510 Spokane WA 99202 [ P.O.4610 i 71, 7,6 NO. TERMS City of Spokane Val... Rick , ITEM DESCRIPTION ( QTY I COST PROJECT 1 TOTAL 22 Danoltion S 630.00 630.00T • 6.1 Demising Walls patch&repair 165.00 165.001 9.3 Floor Preparation 40.00 40.00T 10.0 Ceiling Repair 315.00 315.001 3.16 Electrical&Wrong 1,570.00 1,570.00.1' 3.55 HVAC 440.00 440.001 6.1 Imerior walls 840.00 840.00T 9.8 Painting LAM 5,838.00 5,838.001 9.4 Baseboard 44.00 44.001 6.4 Cabiueuy 9,877.00 9,877.00T 6.2 Doors&Trim&finish work 385.00 385.001 9.6 Floor covering repair 175.00 175.00T 100 Profit&Overhead 2,438.00 2,438.001 300.1 Plan check and permit fees 460.00 460.00 WSST 8.1040 1,843.32 Thank you for your business. I TOTAL 325.06032 -•, £d WddE:EB £00E £T 'ue.0 98SZ8£860S : 'ON 2IONd NI 143WJON S3NS I N I J 3061d 1ST : 140 • FEMME DEL:A1TC4 1 /EN Cant 1 ATCerilEri W411104.Ltar'% KID STAIR ,\ 1 11111Y-Lano■__3(. --____ (/1Kw CASAET s•a1 a ;.r lccn I ENTRY E d T1V1G+Ta PERMIT "r'C40r1.1 LOBBY O••a'.4'442'rtCN CONF. ..� ND N.N Dal KM CLADS I�a�'OW ir.m/4•/.Ar ncr vrt a•NA • Ti- „� li a� _ I u „ I i M�)r iaz110.1i ryI QFFrce MILNE M. / i'M 4z.E.was. 0 — — LAYS 11111 L THE ENT%SLOE TOF 1aR0. t.1071 mom u2rn»c NU.Dr amino m SGE AKA!. s,eranDs ruxriA0 10 aEww,Dar61 R.001111C rwlE ''Y /FEFEMbrD.O'itt:M..1L00FW6 tr.DNUATO --- OY 06NSaTLaL1C1pTFa]»11(/1.414. CO 4-10-1101 raaa saT ;rEo we.1/_NS.1¢a•EJAY CM CORRIDOR a,i¢D io epat taut a am=taranar4 T4 my Cil 1 a.au DM DLL a r1g0L1114ED!EE C4»JTfLE18101EMt•».V4.ESs I N:CD OTMtFMl^R. ND We N pivot I-1 7.16.4.111/41 011,1114 T4E a G60 To 1CKaRM T o/CN Ai L' n 1-•-I I S X W 0 © O V 1. ENTRY• ---- - -'- FLOOR 7 • NCR Di EXHIBIT "B" • KOFMEHE,INC Estimate P.O. BOX 14721 --- WA 99214 DATE ESTIMATE NO. (509)838-2749 FAX(509)838-2586 12/16/2002 109 I 2.c3:sera t"4-o.7 NAME/ADDRESS Web Properties 140 S.Arthur Suite#€510 Spokane WA 99202 P.O.NO. TERMS .�-1 Rick Valley City Chambers ITEM DESCRIPTION QTY COST PROJECT TOTAL• 2.2 Ihmoltion -- 980.00 980.00T 6.1 Demising walls cat hole for dour 246.00 246.00T 8.8 Entry doors 585.00 585.00T 9.3 Floor Preparation 265.00 265.00T 110 Drapery budget 2,343.00 2343.00T 3.16 Electrical&Lighting 1,000.00 1,000.00T 62 Raised platform step and ramp 2,800.00 2,800.00T 9.4 Baseboard 190.00 , 100.00T 6.4 Cabinet y 9,955.00 9,955.00T • 6.2 Display board and projection screen budget 1,285.00 1,285.00T 9.6 Floor owe:ring budget 2,520.00 2,520.00T 100 Profit It Overhead 2,217.00 2,217.00T 360 Plan check&Permit 475.00 475.00 WSST 8.10% 1,975.27 • • Thal:y you for your business. R. TOTAL -_- - z .27 • Ed WeS£:60 £002 VI 'uef 99S?.8£G60S : 'ON 3NONd ON 11N3 4J0)I S2FIS IN i d 30tf1d !SI : WOJ EXHIBIT "B" I HALLWAY -)\----NEW DOOR AND FRAME FOLUILIOECTIMO COMEIMMIEID EJEIE_SEATING (82 SEATS) L)Li_i I • In III II I DIDO1=111=riliDE DDDDLIMOMM J 1 LECTERN PRESS 4 I I'f _ . EXHIBIT DISPLAY/` -. , -4t PROJECTION BOARD — STAFF SCREEN RECOR'ING SECRETARY ` _ \ e . WI" PERMANENT EXHIBIT I / 1 EXHIBIT SPACE RA,ti9P P ` , SPACE RAISED PLATFORM +14" . .::......... .�., NEW DRAPERY ` . • ‘Wr- Suite 101 - COUNCIL CHAMBERS 20' 12' 8' 4' 1' 0 Clocktower Bldg. """'"° °"' MIME I 1 O °.re: u.C7.m MIMI 1 1 •1111•M WEB PROPERTIES SUITE 101 """"°": '� Al 1 C"lC�IDOn °OI 3E design I9 r�� REDWOOD PLAZA Clocktower Bldg. ti MiliMITIMMLStitifNW11111 11707 E. SPRAGUE SPOKANE, WA 99206 ' - °'r`"°' or • EXh IBI r "C" RULES AND REGULATIONS 1. Lettering upon the directory board and the doors as required by Tenant shall be subject to Lessor's reasonable approval, and shall be made by the sign company approved by Lessor. The cost of the directory board and one (1) door sign shall be borne by Lessor but all other lettering shall be paid by Tenant. The directories of the Clock Tower Professional Building (hereinafter "Building") will be provided exclusively for the display of the name and location of tenants and Lessor reserves the right to exclude any other names therefrom. 2. No additional locks shall be placed upon any doors of Premises, and Tenant agrees not to have any duplicate keys made without the consent of Lessor. If more than two keys for any door lock are desired, such additional keys shall be paid for by Tenant. Upon termination of this Lease,Tenant shall surrender all keys. 3. Lessor shall have the right to limit the weight and size and to designate the position of all safes and other heavy property brought into the building. Such furniture, freight, equipment, safes and other heavy property shall be moved in or out of the Building only at the times and in the manner permitted by Lessor. Lessor will not be responsible for loss of or damage to any of the items above referred to, and all damage done to Premises or the Building or property by moving or maintaining any of such items shall be repaired at the expense of.Tenant. Any merchandise not capable of being carried by hand shall utilize hand trucks equipped with rubber tires and rubber side guards and shall only enter the building from the north entrance. 4. The entrances, corridors, stairways and elevators shall not be obstructed by Tenant, or used for any purpose other than ingress or egress to and from the Premises. Tenant shall not bring into or keep any animal (service animals excepted), or any bicycle or other type of vehicle within the Building. 5. Tenant shall not disturb other occupants of the Building by making any undue or unseemly noise, or otherwise, nor shall Tenant allow objectionable odors to disseminate into the Building common areas or the Building HVAC system. Tenant shall not, without Lessor's written consent, install or operate in or upon the Premises any machine or machinery causing noise or vibration perceptible outside the Premises, electric heater, stove, or machinery of any kind or carry on any mechanical business thereon, or keep or use thereon oil, burning fluids, camphene, kerosene, naphtha, gasoline, or other combustible materials. No explosives shall be brought into the building. 6. Tenant shall not nark, drive nails, screw or drill into woodwork or plaster, or in any way deface the Building, the Premises, or any part thereof, or fixtures therein; except that pictures and similar decorations may be hung by means approved by Lessor. The expense of remedying any breakage, damage or stoppage resulting from a violation of this rule shall be borne by Tenant. P:\e nail attadtmentslCommercial Lease 31,6nal city hall.doc • . • 7. The requests.of tenants will be attended to only upon application at the office of the Building. Building employees shall not perform any work or do anything outside of their regular duties, except on issuance of special instructions from the office of the Building. If the Building employees are made available for the assistance of any tenants, Lessor shall be paid for their services by such tenants at reasonable hourly rates. No Building employee will admit any person (Tenant or otherwise) into any office without specific instructions from the office of the Building. 8. Lessor reserves the right to close and keep locked all entrance and exit doors of the Building on Sunday and legal holidays and between the hours of 7:00 p.m. of any day and 7:00 a.m. of the following day and during such further hours as Lessor may deem advisable for the adequate protection of the Building and the property of the tenants. 9. Lessor assumes no responsibility for and shall not be liable for any damage resulting from any error in regard to any identification of Tenant or its employees. 10. Lessor shall, at its cost and expense, operate the air conditioning system from 7:00 a.m. until 7:00 p.m. on business days, except on Saturdays, when the hours shall be from 8:00 a.m. until 1:00 p.m. 11. Tenant shall exercise care and caution to insure that all water faucets or water apparatus, electricity and gas are carefully and entirely shut off before Tenant or its employees leave the Building, so as to prevent waste or damage.Tenant shall be responsible for any damage to the Premises or the Building or property and for all damage or injuries sustained by other tenants or occupants of the Building arising from Tenant's failure to observe this rule, except if such damage or injury is caused by Lessor or Lessor's agents including but not limited to the janitors retained by Lessor. 12. Lessor reserves the right to exclude or expel from the Building any person who, in the judgment of Lessor, is under the influence of liquor or drugs, or who shall in any manner, do any act in violation of any of the rules and regulations of the Building. 13. Lessor reserves the right to make such other and further reasonable regulations as in its judgment may from time to time be needed or desirable for the safety, care and cleanliness of the Premises or the Building or property and the preservation of good order therein. P;lemail attachmentslComm c rciul Lease 31,final city hall.doc • • • LEASE EXTENSION&EXPANSION AGREEMENT • • THIS AGREEMENT made this I5t day of March,2005,by and between CITY OF SPOKANE VALLEY,whose mailing address,is 11707 East Sprague,Spokane Valley, Washington 99206,(hereinafter referred to as"Lessee"),and NORTHWEST CHRISTIAN SCHOOLS, a nonprofit corporation,(hereinafter referred to as"Lessor"); WHEREAS,The City Of Spokane Valley,as Lessee,rind Northwest Christian Schools,as Lessor, entered into a Lease Agreements for Suites 101,105,106 as noted below,a copy of which is attached hereto as Exhibit"A;"and WHEREAS,the term of the Lease expires on February 28th,2007. WHEREAS,Lessee desires to expand current premises an additional 1,015 square feet of Suite 104,and 2,300 square feet of Suite 13 Warehouse for a Five(5)Year term on the same terms and conditions set forth in said lease,as amended herein. • • WHEREAS,The Lessee desires to continue said lease for an additional Three(3)Year beyond the end of its current term under the same terms and conditions set forth in said lease,as amended herein. • • NOW,THEREFORE,for and in consideration of the recitations set forth;the terms and provisions herein contained,and the mutual benefits to be derived here from,the parties do hereby contract,covenant and agree as follows: • I. Extension of Lease. The Lease,attached hereto as Exhibit"A"and incorporated herein by reference,is hereby renewed for a Five(5)Year tenn,beginning on April I,2005 and terminating on March 31r1,2010. The Lessee covenants and agrees to comply with all the terms and conditions of said Lease,as • herein amended,and to be bound thereby and to pay all rent in the manner therein provided. 2.Premises Leased. Lessee had leased u total of 15,940 square feet within the Clocktower Building,noted as follows:Suite 101, 105,and 106. All as shown on Exhibit"B"attached hereto. • Premise has been changed to add Suite 104 with 1,015 Square Feet within the Clocktower Building,and 2,300 Square Feet Warehouse space located at Building 13 to as follows:Lessee shall lease a total of 19,255 square feet within the suites noted as follows:Suite 101,104,105,106,and Suite 13 warehouse. All as shown on Exhibit"13"attached hereto. 3. Amendments to Lease. Lessee and Assignee hereby agree to amend certain provisions under the Lease as follows: a. Tenn. The term of the lease is extended for a tern beginning April 1st,2005 and terminating March 31,2010,hereinafter referred to as the"Lease Tenn". b. },pace. The space to be leased is categorized as office space and storage space. Office space includes 16,955 square feet,and shall be charged at the following monthly rates for the stated years: First twelve months $14.75 per square foot Second twelve months $15.15 per square foot Third twelvemonths $15.65 per square'foot Fourth twelve months $16.15 per square foot Fifth twelve months $16.75 per square foot The storage space includes 2,300 square feet,and shall be charged at the rate of$4.00 per square foot per month. • • c. Base Rent. Lessee agrees to pay TWENTY ONE THOUSAND SIX HUNDRED SEVEN AND 19/100 DOLLARS($21,607.19) per month during the first twelve(12) month period,then TWENTY TWO THOUSAND ONE HUNDRED SEVENTY TWO AND 36/100 DOLLARS($22,172.36)per month for the second twelve(12) month period,then TWENTY TWO THOUSAND 131G1 IT HUNDRED SEVENTY EIGHT AND 82/100 DOLLARS($22,878.82)per month for the third twelve(12) month period,then TWENTY THREE: FIVE HUNDRED EIGHTY • FIVE ANS 27/100($23,585.27)for the fourth twelve(12)month period,then TWENTY THREE THOUSAND SEVEN HUNDRED TWENTY SIX AND 57/100 DOLLARS($24,433.02)-for the fifth twelve(12)month period. c. NNN Charges. Property'l axes,Utilities,Maintenance,Insurance,Administrative Common Area Maintenance to be paid by tenant for storage space only as follows: 2,300 sq.ft.of 42,672 total CAM sq.ft,or 5.389%of building premises. CAM- • charges are billed quarterly. • • 1 tairiats: 14-r— • • • • • • d. Amortized Tenant Improvements. Lessee will continue to repay remaining tenant improvement cost from original as stated in original lease(Exhibit A). Original tenant improvement cost amounted to$154,972.88. Remaining total owed is$74,257.84 to be amortized for sixty(60)months. Total monthly installments amount to$1,237.63 • per month. c. Option to Renew. Lessee shall have option to renew this lease for one(I)additional three(3)year period. Provided however Lessee provides Lessor with 120 days prior • written notice before lease expiration of Lessees intention to do so. All tenns and conditions shall remain the same with the exception of rent,which shall be negotiated. f. Tenant Improvements: Lessor shall provide at Lessors sole cost and discretion,the following tenant improvements: Suite 104: Clean carpets,Paint walls through out the premise,install sound proofing between City Managers office and office in Suite 104. Suite 105:install oversized window in current Parks.&Recreation Directors office. Parking: Provide expanded fenced parking area adjoining the existing fenced parking area. Conference Room: Reserved conference room every Wednesday morning,Sam to lain.Reserve conference room at least three other days each year,with advance • reservation. Except as modified herein all other terms and conditions ol'said Lease shall remain in full force and effect. 3.Waivers.Modification or AnlendmenL No waiver,modification or amendment of any term or condition of this Agreement shall be effective unless in writing,and no waiver or indulgence by either party or any deviation by the other party from full performance of this Agreement shall be a waiver of the right to subsequent or other full,strict,and timely performance. • 4. Merger Clause. This Agreement and the Lease Agreement attached as Exhibit A express the full and final purpose and agreement of the parties and will not be qualified,modified or supplemented by course of dealing,usage of trade,or course of performance. 5. Counterparts. This Agreement may be executed in two or more parts,each of which shall be deemed an original,but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF,the parties hereto have set their hands this j;{rtlay of ,.0••• 2005. LESSOR LESSEE NORTHWEST CHRISTIAN SCHOOLS CITY OF SPOKANE VALLEY riY• •'_. 4 UY:_[ .r•'L�wc'i� /��/�e � • �� .1n !'c 6/1d r'17O14V,-- ITS rrS/Ie/T1lfD��r�TL�<0'/�.1�4HLLGrl 1)vo4)7t4 se-i*a n�/ •Executed On � lixecutcd On 0.4/ .� J o7ZeI5 • • 2 Initials: • "1 • ADDRESS FOR NOTICES AND RENT ADDRESS FOR NOTICES • Northwest Christian Schools,Inc. City Of Spokane Valley /o WEB Properties,Inc. 11707 E.Sprague Suite 106 P.O.Box 21469 Spokane Valley,WA 99206 Spokane,WA 99201 • • • • • • • • • • • • 3 • iat�� • • COMMERCIAL LEASE AGREEMENT FOR REDWOOD PLAZA THIS LEASE,made and entered this 151 day of July, 2006, by and between Northwest Christian Schools, a non-profit corporation, 5104 E. Bernhill Rd., Colbert, WA 99005 hereinafter referred to as Lessor; and City of Spokane Valley, whose mailing address is 11707 East Sprague, Spokane Valley, Washington 99206,hereinafter referred to as Lessee. WITNESSETH: As used herein: (I)the term Lessee shall refer and apply equally to the plural term Lessees,(2) he or his shall apply to she and hers. For and in consideration of the mutual promises contained herein,the parties agree as follows: 1. LEASED PREMISES. The Lessor does hereby Lease to the Lessee and the Lessee does hereby hire and lease from the Lessor those certain premises located and described as The Clocktower Building Suite B-3 11703 E.Sprague Ave.,Spokane Valley,WA 99206. Consisting of approximately 3,290 Sq.Ft. 2. (a)TERM. The term of this Lease shall be Three(3)years and Eight(8)month, commencing on August 1,2006 and ending March 31,2010.In the event occupancy occurs in the middle of any month,rent for the first month shall be prorated to the first day of the next succeeding month and thereafter,all rental payments shall be due and payable on the first(I")day of each month. (b)RENT. Lessee covenants and agrees to pay the Lessor at WEB Properties, Inc.P.O.Box 21469, Spokane, WA 99201,or to such other place as the Lessor may hereafter designate, monthly rental in the amounts of and due and payable on the first(1')day of each month as noted. This is a gross lease and includes all costs for the subject Leased Premises and common area. A.The rental for the first Five month of this Lease shall be TWO THOUSAND EIGHTY THREE AND 33/100 DOLLARS ($2,083.33),per month in advance on the first(15`)day of August,2006. The Rental for the Next Three months of this lease shall be TWO THOUSAND SEVEN HUNDRED) FIFTY FIVE AND 20/100 DOLLARS ($2,755.20), per month in advance on the first (1') day of January, 2007. The rental for the first full Twelve months of this Lease shall be THREE THOUSAND EWE HUNDRED TWENTY NINE AND 90/100 DOLLARS ($3,529.90) per month in advance on the first (151) day of each month of the First(1")Twelve months of the lease term. C06-63 • The rental for the 2id Twelve months of this Lease shall be TT..R.EE THOUSAND S:ux HUNDRED THIRTY FIVE AND 79/100 DOLLARS ($3,635.79) per month in advance on the first (lu) day of each month of the Second(2°d)Twelve months of the lease term. The rental for the 3`d Twelve months of this Lease shall be MUREX THOUSAND SEVEN HUNDRED FORTY FOUR AND 87/100 DOLLARS ($3,744.87) per month in advance on the first (1s1) day of each month of the Third(3`d)Twelve months of the lease term. A late-payment assessment of five percent (5%) of the monthly rental due will be charged for any rent paid after the tenth(51a)business day of the month in which rent is due. 3. USE OF PREMISES.The Leased Premises shall be used for commercial business purposes as permitted within a commercial business zone in Spokane County, Washington and all activities incident thereto and for no other purpose without the prior written consent of the Lessor first obtained. Lessee shall not use or allow the use of the Leased Premises in any manner that causes damage to the real property or improvements, nor shall Lessee use or allow use of the Leased. Premises in.any manner which would increase insurance premiums or for any illegal purpose. Lessee shall comply with all governmental rules, orders, regulations, or requirements relating to the use and occupancy of the Leased Premises. 4. RULES AND REGULATIONS. Lessor reserves the right to promulgate such reasonable rules and regulations relating to the use of parking areas as it may deem appropriate and for the best interest of the tenants, and Lessee agrees to abide by such rules and to cooperate in the observance thereof. Such rules and regulations shall be binding upon Lessee upon delivery of a copy thereof to Lessee. Said rules and regulations may be amended by Lessor from time to time with or without advance notice and such amendments shall be effective upon the delivery of a copy thereof to Lessee. Any material violation of such rules and regulations by Lessee, its officers, agents,employees or subtenants will constitute a breach of this lease and, upon expiration of the cure period, entitle the Lessor to claim a default thereunder in the same manner and to the same extent as any other default under the lease: provided, however, that the notice and cure provisions of Section 23 of this Lease shall be applicable. 5. REAL ESTATE TAXES. The Lessor shall pay all real property taxes due or falling due on said premises. However, in the event the Lessee shall make an improvement on the property which causes an increase in real property taxes, the Lessee hereby.agrees to pay any reasonable increase caused. SW2 3042132 9 6. -MAIiNTENANCE. Lessor shall maintain in good condition,the improvements on the real property, including parking lot, leased pursuant to this Lease. This shall include any and all maintenance required to keep the improvements on the real property, including parking lot, which is the subject matter of this Lease, in the same condition, less normal wear and tear,casualty,condemnation and repairs required to be made by Lessor,as of the date of commencement of this Lease. 7. PARKING LOT MAINTENANCE. The Lessor shall keep and maintain the parking lot and landscaping in a neat and clean condition and repair at all times. in addition, Lessor shall remove snow during the winter season, as needed, and the Lessee agrees that there shall be no vehicles left overnight in the parking lot area by Lessee or any employee of the Lessee in order to prevent interference with the cleaning,maintaining and snow removal of the parking lot area. 8. UTILITIES. The Lessor agrees to pay all charges for light,heat,water,sewer, garbage and all other utilities and services furnished to the premises except telephone. Lessor agrees to provide janitorial services sufficient to keep said Leased Premises and common area neat, clean and free of garbage and debris at all.times. 9. ACCIDENTS AND LIABILITY. Neither Lessor nor its agents shall be liable for any injury or damage to persons or property sustained by Lessee or any others, in and about the Leased ' Premises. Lessee agrees to defend and hold Lessor and its agents harmless from any claim, action and/or judgment for damages to property or injury to persons suffered or alleged to be suffered on the Leased Premises by any person, firm or corporation,unless caused by Lessor's negligence. Lessor and Lessee agree to maintain public liability insurance on the Leased Premises in the minimum single limit of One Million and No/100 dollars ($1,000,000.00) and shall name Lessor as an additional insured. Lessee shall furnish Lessor with a certificate indicating that the insurance policy is in full force and effect and listing the Lessor as an additional insured on the policy. Lessor shall name Lessee as an additional insured and shall furnish Lessee with a certificate indicating the insurance policy is in full force and effect and listing Lessee as an additional insured. 10. LIENS AND INSOLVENCY. Except as otherwise provided Lessee shall keep the Leased Premises free from any liens arising out of any labor performed or materials furnished to,or any obligations incurred by Lessee, and shall hold Lessor harmless against same. In the event Lessee becomes insolvent, bankrupt, or is a receiver, assignee or other liquidating officer is appointed for the business of Lessee,Lessor may cancel this Lease at its option. SLO23042131 3 11. SUBLETTING OR ASSIGNMENT. Except as otherwise provided Lessee may not assign or sublet all or any part of this lease of the Leased Premises, without Lessor's prior written consent. 12. ACCESS. Lessor shall have the right to enter the Leased Premises at all reasonable times and provide Lessee reasonable notice except for emergencies for the purpose of inspection or of making repairs, additions or alterations, and to show the Leased Premises to prospective tenants sixty (60)days prior to the expiration of the term of this Lease. Lessor shall have the right to place a For Rent sign in connection with the Leased Premises for the sixty (60) days prior to the end of the term of this Lease. 13. POSSESSION AND OUIET ENJOYMENT. The Lessee shall be entitled to possession of the Leased Premises as soon as the same are ready for occupancy as hereinabove described and shall be entitled to continued quiet enjoyment of the Leased Premises during all periods under the term of this Lease,provided that the Lessee shall be in good standing and shall have paid all rent reserved under the Lease and performed all covenants agreed to be performed by the Lessee under the term of the Lease. 14. DAMAGE OR DESTRUCTION. In the event the Leased Premises arc rendered untenantable in whole or in part by fire, the elements, or other casualty, Lessor may elect at its option, within ten(10)days of the event not to restore or rebuild the Leased Premises and shall so notify Lessee, in which event Lessee shall vacate the Leased Premises and this Lease shall be terminated; or in the alternative, Lessor shall notify Lessee within ten (10) days after receiving notice of such casualty the Lessor will undertake to rebuild or restore the Leased Premises, and that such work can be completed within ninety (90) days from the date of such notice of intent. if Lessor cannot restore or rebuild the Leased Premises within the said ninety(90)days,except for delays which are not the fault of the Lessor, then the lease may be terminated at the Lessee's option by written ten(10)days notice to Lessor. During the period that the Leased Premises are not tenantable, rent shall abate in the same ratio as premises rendered untenantable bears to the whole of the Leased.Premises. .15. SIGNS. The Lessee shall be permitted to have signage in connection with the occupancy of the Leased Premises. All signs or symbols placed by Lessee shall be subject to Lessor's prior written approval, which will not be unreasonably withheld or delayed. All signs shall be non- SLO2 304213.2 4 illuminated and shall be consistent with other signage placed upon the building or on any sign post established for the general use of all tenants within the building or using other building on the property common to the area. Signs shall generally conform to the size and type of sign currently in use on the Clocktower Building. At the termination of the Lease, the Lessee shall remove all signs, at Lessee's expense placed in,on or about the Leased Premises and will repair any damage caused by the removal to the ixased Premises. If the Lessee has a sign in a common use sign post or board, Lessee shall replace plastic in the sign at the termination of the Lease. 16. .ALTERATIONS AN!)IMPROVEMENTS.Tenant shall not make alterations,additions or to the improvements Premises without the prior written consent of Owner. Unless otherwise provided for, all such alterations, additions and improvements shall be at the sole cost and expense of Tenant,and shall become the property of Owner and shall remain as part of the Premises at the termination or expiration of this Lease. Tenant agrees to save Owner harmless from any damage arising out of any such work. Owner reserves the right to make, from time-to-time, at its expense, such alterations and improvements to Premises and Property as it deems appropriate 17. CONDEMNATION. In the event that any government,or any agency or instrumentality having the power of eminent domain shall; by condemnation or deed in lieu thereof, take title, possession:or the right to possession-of the Leased Premises or any part thereof, Lessor may, at its option, terminate this Lease as of the date of such taking,and if Lessee is not in default under any of the provisions of this Lease on said date, any rental prepaid by Lessee shall, to the extent allocable to any period subsequent to the effective date of the termination, be promptly refunded to Lessee, provided Lessee shall be entitled to seek compensation for any Lessee improvements which are so taken by eminent domain. 18. COMPLIANCE WITH LAWS. Lessee shall at all times keep and use said Leased Premises in accordance with applicable laws and ordinances and in accordance with applicable directions, rules and regulations of public officials and departments as applicable to Lessee's specific use of the Leased Premises as opposed to use in general by the tenant at the sole expense of Lessee unless otherwise agreed by the parties. 19. CONFIRMATION BY LESSEE. Lessee agrees,from time to time during the Lease period, upon not less than fifteen (15) days prior written request by the Lessor, to sign and make available to the Lessor, a confirmation stating that the Lease is in full force and effect and unmodified as • SLO2 304213.2 5 • of the date of the signing of the confirmation. The purpose of such confirmation shall be to entitle the Lessor to provide said confirmation to a mortgagee or prospective mortgagee providing financing for said property,of which the Leased Premises is a part. Ofeil ;. ' . I ,TtAL OBLIGATION. There being more than one Lessee,the obligations hereunder imposed upon Lessee are joint and severa ••• , .- •i s included as Less•'. 21. RIDERS. The riders or addenda,if any,attached to this Lease are made a part herco by reference. 22. DEFAULT A,Ni.)RE-ENTRY. If the Lessee shall fail to keep and perform any of the covenants and agreements herein contained,other than the payment of rent,and such failure continues for thirty(30)days after written notice from Lessor,unless appropriate action has been taken by Lessee in good faith to cure such failure, Lessor may terminate this Lease and re-enter said Leased Premises and without terminating this Lease, re-enter said Leased Premises, sublet the whole or any part thereof for the account of the Lessee for the balance of the term of this Lease,and Lessee covenants and agrees to pay to Lessor the fair rental value of any deficiency arising from re-letting of the Leased Premises at a lesser amount than herein agreed to. Lessee shall pay such deficiency each month as the amount thereof is ascertained by Lessor or at the Lessor's option,shall pay die present value[discounted at the rate of seven (7) percent per annum] of the balance of the rent for the remainder of the term of the Lease less die present value(discounted at the same rate)of the fair market value of the Leased Premises for said period. 23. BREACH OF LEASE. If the Lessee breaches this Lease after written notice and grace periods, then this Lease may be terminated by the Lessor in the following manner at its option: The Lessor shall serve upon the Lessee,by registered or certified mail,at the Lessee's last known address, a notice in writing of the fact of said breach or breaches and a detailed description of said breaches. From and after the mailing of said notice, the Lessee shall have ten (10) days to cure any breach for the nonpayment of rent and thirty(30) days to cure any other breach of the lease. Failure of the Lessee to remedy said breaches within said period shall result in Lessee's total forfeiture of all its right, title and interest under this Lease, and the Lessor shall have the right to enter said premises and remove the Lessee and her property therefrom, take immediate possession for the purpose of protecting said property and cancel this Lease in its entirety or re-let the premises. In all cases of such forfeiture, Lessor shall make a good-faith effort to mitigate its damages. Lessee shall be liable only for reasonable deficiencies,which do not exceed fair market value of rent which result from re-letting. 51.02 304213.2 6 24. REMOVAL OF PROPERTY. In the event Lessor lawfully re-enters the Leased Premises as provided herein, Lessor shall have the right, but not the obligation, to remove all of the personal property located therein and to place such property in storage at the expense and risk of Lessee. 25. COSTS AND ATTORNEY'S FEE/VENUE. if,by reason of any default or breach on the part of either party in the performance of any of the provisions of this Lease, a legal action is instituted, the losing party agrees to pay all reasonable costs including the prevailing party's reasonable attorney's fees as fixed by the court in connection therewith. It is agreed that the venue of any legal • action brought under the terms for this lease shall be in Spokane County,Washington. 26. SURROGATING WAIVER. Lessor and Lessee each releases and relieves the other and waives its entire right of recovery against the other for loss or damage arising out of, or incident to, all perils described in the fire and extended coverage insurance policy approved for use in the State of Washington, which occurs in, on or about the Leased Premises, whether due to the negligence of either party,their agents or employees or otherwise. 27. SUBORDINATION., Except as otherwise provided Lessee agrees that this Lease shall be subordinate to any mortgages or deeds of trust placed on the property provided that in the event of foreclosure, if Lessee is not then in default and agrees to attorn to the mortgagee or beneficiary under deed of trust, or purchaser at a foreclosure sale, such mortgagee or beneficiary or purchaser shall recognize Lessee's right of possession for the full term of this Lease. Lessor agrees to use Lessor's best efforts to obtain a Non-Disturbance Agreement. 28. NO WAIVER OF COVENANTS. Any waiver by either party of any breach hereof by the other shall not be considered a waiver of any future similar breach. 29. ENTIRE AG.REEMENT. This Lease contains all the agreements between the parties and no modifications shall be effective except by written instrument,signed by both parties. 30. SURRENDER OF PREMISES. Lessee agrees,upon termination of this Lease, to peacefully quit and surrender the premises to Lessor without notice, to leave the Leased Premises neat and clean, well maintained, in good condition, normal wear and tear excepted,and to deliver all keys to the Leased Premises to the Lessor. 5102 3442132 7 31. .IIOLDING OVER. If Lessee, with the implied or express consent of Lessor, shall hold over after the expiration of the term of this Lease, Lessee shall remain bound by all the covenants and agreements herein, except that the tenancy shall be from month to month and monthly rent shall be otherwise ageed upon.. 32. BINDING ON FURS,SUCCESSORS AND ASSIGNS. This Lease shall be binding upon the heirs, executors,administrators,successors and assigns of both parties hereto, except as hereinabove provided,but this does not constitute a consent to assignment. 33. NOTICE. Any notice required or allowed to be given by either party to the other shall be deposited in the United States mail, registered or certified, return receipt requested, postage prepaid,addressed to Lessor or to the Lessee at their addresses stated below, or at such other address as either party may designate to the other by notice given as herein provided. Lessor at: Northwest Christian Schools C/o-WEB Properties,Inc. P.O.Box 21469 Spokane, WA 99201 Lessee at: City of Spokane Valley Attn: City Manager 11707.E.Sprague Suite 106 Spokane Valley, WA 99206. 34. NON-SMOKING:BU'ILDiNG POLICY. It is agreed between Lessor and Lessee that Redwood Plaza is a smoke-free office complex. There is to be no smoking at any time inside of the office building. If smoking within this complex becomes a problem, the Lessor has the right to cancel this Lease at its option, provided that the notice and cure provisions of section 23 hereof shall be applicable. 35. FRONT DOOR SECURITY. For the safety of all tenants and the janitor in the Clock Tower Professional Building, all exterior doors must be locked after 6:00 p.m_ Monday through Friday. On the weekends all doors must be locked at the time of entering and at the time of exiting. S102 304213.2 8 36. TIME OF ESSENCE. Time is of the essence in all provisions of this Lease. 37. TENANT IMPROVEMENTS. Lessor shall at its own cost and expense expand the restroom located in the Suite 13-4 Warehouse to conform to a ADA compliant unisex restroom. 38. ARBITRATION. In the event of a disagreement arising under this Lease,all matters shall be submitted to arbitration as follows: The party seeking arbitration shall submit, in writing, to the other party, a statement of the issue(s) to be arbitrated and shall designate a party to act as arbitrator on behalf of the party seeking arbitration. The responding party shall supply a statement of any counter or additional issue(s) to be arbitrated and shall nominate an arbitrator to act for the responding party. This process shall be accomplished within fourteen (14) days after the party seeking arbitration has deposited in the United States mail, postage prepaid, the initial notice of intent to arbitrate,addressed to the other party at the address hereinabove shown. a. The two (2) arbitrators selected shall immediately select a third arbitrator. The arbitrators thus convened shall,within a time established by a majority vote of the arbitrators,conduct a hearing on the issues submitted to them and render a decision on each issue, in writing, to each of the parties to the dispute. Any decision as to procedure or substance made by a majority of the arbitration panel shall be binding. A decision by a majority of the arbitrators on any issues submitted shall be the decision of the arbitration panel as to that issue. The arbitrators shall have authority to award costs and reasonable attorney's fees to either party in accordance with the merits and good faith of the position asserted by the parties. Said final decision of the arbitration may be submitted to any court in the county in which the arbitration takes place to be entered in the form of a judgment therein. b. In lieu of appointing three (3)arbitrators in the manner set forth above, the parties may, by written agreement,designate a single arbitrator. c. Except as provided herein, the arbitration proceedings shall be conducted in accordance with the rules of the American Arbitration Association and the statutes of the State of Washington pertaining to binding arbitration. • SIA2 304213.2 9 • • IN WITNESS WHEREOF, the parties hereto have executed this instrument at Spokane, Washington, on the day and year first above written: • CITY OF SPOKANE VALLEY NORTHWEST CHRISTIAN SCHOOLS 04„. ITS: .. 144-Y 47,06- ITS „ 41‘.,Y 5 l ••."7-'r BY: ` drill'/rr+5�i�,S A /%d/✓DA"v-z.,. TTS: S:/dirJ�fi r Lessee Acknowledgment State Of Washington ) )ss County Of Spokane ) On this /2 day of ASt , 2006, before me the undersigned Notary Public, personally appeared 1),4.pi> ntir elje , personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged-that he/she•executed the same in his/her authorized capacity,and that by his/her signature on the instrument, • or the entity upon behalf of which the person acted, executed the instrument. _ N1. Gtgj IN Art j?'i ;a �!f: ;_y 1 Uo ive hereunto set my hand and affixed my official seal the day and year first ago ,. (,�`h. ,'I, • �y(1tAaY „n/ % No •Public in and for ti I tate of C !{ P UM. Washington,residing at f Al.riink g9a/� 1 4,"4024. My Appointment Expires: 7- )(o-09 ,1h� OFW `.�•..�'-' Lessor Acknowledgment • STATE OF WASHINGTON) )ss County of Spokane ) On this I7 day of A ,2006,becfgre me the undersigned,a Notary Public in an f the State f 1Vashingto personally appeared v-'�z.P�eA T2`+S and Q( e5 t 2. u ta,'a•0k.D to me known or proven on the basis of satisfactory evidence,to be the agent(s)for NORTHWEST CHRISTIAN SCHOOLS,who executed the within and foregoing instrument and acknowledged the said instrument to be the free and voluntary act and deed of said corporation,for the uses and purposes therein mentioned,and on oath stated that they are authorized to execute said instrument on behalf of said corporation. IN WITNESS �NEREO.F, I have hereunto set my nd and affixed my official seal the day and 1n 1 LX year first'abovecu,��:::y�.,, .,� .Gww.w, Ginn _ • Notary Public in and forth f ••• so,ar Tr i - Washington,residing at poKa , LrC My Appointment Expires: o -F 7•' 8” 4001111111111 SLO2 304213.2 10 l . COMMERCIAL LEASE AGREEMENT FOR REDWOOD PLAZA - CLOCKTOWER BUILDING THIS LEASE, made and entered this 12th day of November, 2007, by and between Northwest Christian Schools, a non-profit corporation, 5104 E. Bernhill Rd., Colbert, WA 99005 hereinafter referred to as Lessor; and City of Spokane Valley, whose mailing address is 11707 East Sprague, Spokane Valley,Washington 99206,hereinafter referred to as Lessee. WITNESSETH: As used herein: (1) the term Lessee shall refer and apply equally to the plural term Lessees, (2)he or his shall apply to she and hers. For and in consideration of the mutual promises contained herein,the parties agree as follows: 1. LEASED PREMISES. The Lessor does hereby Lease to the Lessee and the Lessee does hereby hire and lease from the Lessor those certain premises located and described as The Clocktower Building Suite 304 11707 E. Sprague Ave.,Spokane Valley,WA 99206. Consisting of approximately 4,451 Sq. Ft. 2. (a)TERM. The term of this Lease shall be Two (2)years and Three(3)months, commencing on January 1, 2008 and ending March 31,2010.In the event occupancy occurs in the middle of any month,rent for the first month shall be prorated to the first day of the next. succeeding month and thereafter, all rental payments shall be due and payable on the first(1St) day of each month. (b)RENT. Lessee covenants and agrees to pay the Lessor at WEB Properties, Inc. P.O. Box 21469, Spokane,WA 99201,or to such other place as the Lessor may hereafter designate,monthly rental in the amounts of and due and payable on the first(1St) day of each month as noted. This is a gross lease and includes all costs for the subject Leased Premises and common area. A. The rental for the period of January 2008 through and including March 2009 shall be SIX THOUSAND ONE HUNDRED SEVENTY FIVE AND 00/100 DOLLARS ($6,175.00),per month in advance on the first(1st) day of each month. The rental for the period of April 2009 through and including March 2010 shall be SIX THOUSAND THREE HUNDRED SIXTY ONE AND 00/100 DOLLARS ($6,361.00),per month in advance on the first (lst)day of each month. A late-payment assessment of five percent(5%)of the monthly rental due will be charged for any rent paid after the tenth(10th)business day of the month in which rent is due. 3. USE OF PREMISES.The Leased Premises shall be used for commercial business purposes as permitted within a commercial business zone in Spokane County, Washington and all activities incident thereto and for no other purpose without the prior written consent of the Lessor first obtained. Lessee shall not use or allow the use of the Leased Premises in any manner that causes damage to the real property or improvements,nor shall Lessee use or allow use of the Leased Premises in any manner which would increase insurance premiums or for any illegal purpose. Lessee shall comply with all governmental rules, orders,regulations,or requirements relating to the use and occupancy of the Leased Premises. 4. RULES AND REGULATIONS. Lessor reserves the right to promulgate such reasonable rules and regulations relating to the use of parking areas as it may deem appropriate and for the best interest of the tenants,and Lessee agrees to abide by such rules and to cooperate in the observance thereof. Such rules and regulations shall be binding upon Lessee upon delivery of a copy thereof to Lessee. Said rules and regulations may be amended by Lessor from time to time with or without advance notice and such amendments shall be effective upon the delivery of a copy thereof to Lessee. Any material violation of such rules and regulations by SL02 304213.2 2 Lessee,its officers,agents,employees or subtenants will constitute a breach of this lease and, upon expiration of the cure period,entitle the Lessor to claim a default thereunder in the same manner and to the same extent as any other default under the lease:provided,however,that the notice and cure provisions of Section 23 of this Lease shall be applicable. 5. REAL ESTATE TAXES. The Lessor shall pay all real property taxes due or falling due on said premises. However,in the event the Lessee shall make an improvement on the property which causes an increase in real property taxes,the Lessee hereby agrees to pay any reasonable increase caused. 6. MAINTENANCE. Lessor shall maintain in good condition,the improvements on the real property,including parking lot,leased pursuant to this Lease. This shall include any and all maintenance required to keep the improvements on the real property, including parking lot, which is the subject matter of this Lease,in the same condition,less normal wear and tear, casualty,condemnation and repairs required to be made by Lessor, as of the date of commencement of this Lease. 7. PARKING LOT MAINTENANCE. The Lessor shall keep and maintain the parking lot and landscaping in a neat and clean condition and repair at all times. In addition, Lessor shall remove snow during the winter season, as needed, and the Lessee agrees that there shall be no vehicles left overnight in the parking lot area by Lessee or any employee of the Lessee in order to prevent interference with the cleaning,maintaining and snow removal of the parking lot area. 8. UTILITIES. The Lessor agrees to pay all charges for light,heat,water,sewer, garbage and all other utilities and services furnished to the premises except telephone. Lessor agrees to provide janitorial services sufficient to keep said Leased Premises and common area neat,clean and free of garbage and debris at all times. 9. ACCIDENTS AND LIABILITY. Neither Lessor nor its agents shall be liable for any injury or damage to persons or property sustained by Lessee or any others,in and about the Leased Premises. Lessee agrees to defend and hold Lessor and its agents harmless from any SLO2 304213.2 3 claim, action and/or judgement for damages to property or injury to persons suffered or alleged to be suffered on the Leased Premises by any person,firm or corporation,unless caused by Lessor's negligence. Lessor and Lessee agree to maintain public liability insurance on the Leased Premises in the minimum single limit of One Million and No/100 dollars($1,000,000.00)and shall name Lessor as an additional insured. Lessee shall furnish Lessor with a certificate indicating that the insurance policy is in full force and effect and listing the Lessor as an additional insured on the policy. Lessor shall name Lessee as an additional insured and shall furnish Lessee with a certificate indicating the insurance policy is in full force and effect and listing Lessee as an additional insured. 10.LIENS AND INSOLVENCY. Except as otherwise provided Lessee shall keep the Leased Premises free from any liens arising out of any labor performed or materials furnished to, or any obligations incurred by Lessee, and shall hold Lessor harmless against same. In the event Lessee becomes insolvent,bankrupt,or is a receiver, assignee or other liquidating officer is appointed for the business of Lessee,Lessor may cancel this Lease at its option. 11.SUBLETTING OR ASSIGNMENT. Except as otherwise provided Lessee may not assign or sublet all or any part of this lease of the Leased Premises,without Lessor's prior written consent. 12.ACCESS. Lessor shall have the right to enter the Leased Premises at all reasonable times and provide Lessee reasonable notice except for emergencies for the purpose of inspection or of making repairs,additions or alterations, and to show the Leased Premises to prospective tenants sixty(60) days prior to the expiration of the term of this Lease. Lessor shall have the right to place a For Rent sign in connection with the Leased Premises for the sixty(60)days prior to the end of the term of this Lease. 13.POSSESSION AND QUIET ENJOYMENT. The Lessee shall be entitled to possession of the Leased Premises as soon as the same are ready for occupancy as hereinabove described and shall be entitled to continued quiet enjoyment of the Leased Premises during all } SLO2 304213.2 4 periods under the term of this Lease,provided that the Lessee shall be in good standing and shall have paid all rent reserved under the Lease and performed all covenants agreed to be performed by the Lessee under the term of the Lease. 14.DAMAGE OR DESTRUCTION. In the event the Leased Premises are rendered untenantable in whole or in part by fire,the elements,or other casualty,Lessor may elect at its option,within ten(10)days of the event not to restore or rebuild the Leased Premises and shall so notify Lessee,in which event Lessee shall vacate the Leased Premises and this Lease shall be terminated; or in the alternative,Lessor shall notify Lessee within ten(10)days after receiving notice of such casualty the Lessor will undertake to rebuild or restore the Leased Premises, and that such work can be completed within ninety(90)days from the date of such notice of intent. If Lessor cannot restore or rebuild the Leased Premises within the said ninety(90)days, except for delays which are not the fault of the Lessor,then the lease may be terminated at the Lessee's option by written ten(10)days notice to Lessor. During the period that the Leased Premises are not tenantable,rent shall abate in the same ratio as premises rendered untenantable bears to the whole of the Leased Premises. 15. SIGNS. The Lessee shall be permitted to have signage in connection with the occupancy of the Leased Premises. All signs or symbols placed by Lessee shall be subject to Lessor's prior written approval,which will not be unreasonably withheld or delayed. All signs shall be non-illuminated and shall be consistent with other signage placed upon the building or on any sign post established for the general use of all tenants within the building or using other building on the property common to the area. Signs shall generally conform to the size and type of sign currently in use on the Clocktower Building. At the termination of the Lease,the Lessee shall remove all signs, at Lessee's expense placed in,on or about the Leased Premises and will repair any damage caused by the removal to the Leased Premises. If the Lessee has a sign in a common use sign post or board, Lessee shall replace plastic in the sign at the termination of the Lease. 16. .ALTERATIONS AND IMPROVEMENTS. Tenant shall not make alterations, additions or to the improvements Premises without the prior written consent of Owner. Unless otherwise provided for,all such alterations, additions and improvements shall be SLO2 304213.2 5 at the sole cost and expense of Tenant, and shall become the property of Owner and shall remain as part of the Premises at the termination or expiration of this Lease.Tenant agrees to save Owner harmless from any damage arising out of any such work. Owner reserves the right to make,from time-to-time, at its expense, such alterations and improvements to Premises and Property as it deems appropriate 17. CONDEMNATION., In the event that any government,or any agency or instrumentality having the power of eminent domain shall,by condemnation or deed in lieu thereof,take title,possession or the right to possession of the Leased Premises or any part thereof,Lessor may, at its option,terminate this Lease as of the date of such taking, and if Lessee is not in default under any of the provisions of this Lease on said date,any rental prepaid by Lessee shall,to the extent allocable to any period subsequent to the effective date of the termination,be promptly refunded to Lessee,provided Lessee shall be entitled to seek compensation for any Lessee improvements which are so taken by eminent domain. 18. COMPLIANCE WITH LAWS. Lessee shall at all times keep and use said Leased Premises in accordance with applicable laws and ordinances and in accordance with applicable directions,rules and regulations of public officials and departments as applicable to Lessee's specific use of the Leased Premises as opposed to use in general by the tenant at the sole expense of Lessee unless otherwise agreed by the parties. 19. CONFIRMATION BY LESSEE. Lessee agrees, from time to time during the Lease period,upon not less than fifteen(15)days prior written request by the Lessor,to sign and make available to the Lessor,a confirmation stating that the Lease is in full force and effect and unmodified as of the date of the signing of the confirmation. The purpose of such confirmation shall be to entitle the Lessor to provide said confirmation to a mortgagee or prospective mortgagee providing financing for said property,of which the Leased Premises is a part. 20.JOINT AND SEVERAL OBLIGATION. There being more than one Lessee,the obligations hereunder imposed upon Lessee are joint and several upon all persons included as Lessee. SLO2 304213.2 6 • 21. RIDERS. The riders or addenda,if any,attached to this Lease are made a part hereof by reference. 22.DEFAULT AND RE-ENTRY. If the Lessee shall fail to keep and perform any of the covenants and agreements herein contained, other than the payment of rent, and such failure continues for thirty(30)days after written notice from Lessor,unless appropriate action has been taken by Lessee in good faith to cure such failure,Lessor may terminate this Lease and re-enter said Leased Premises and without terminating this Lease,re-enter said Leased Premises, sublet the whole or any part thereof for the account of the Lessee for the balance of the term of this Lease,and Lessee covenants and agrees to pay to Lessor the fair rental value of any deficiency arising from re-letting of the Leased Premises at a lesser amount than herein agreed to. Lessee shall pay such deficiency each month as the amount thereof is ascertained by Lessor or at the Lessor's option,shall pay the present value [discounted at the rate of seven(7)percent per annum] of the balance of the rent for the remainder of the term of the Lease less the present value(discounted at the same rate) of the fair market value of the Leased Premises for said period. 23.BREACH OF LEASE. If the Lessee breaches this Lease after written notice and grace periods,then this Lease may be terminated by the Lessor in the following manner at its option: The Lessor shall serve upon the Lessee,by registered or certified mail,at the Lessee's last known address,a notice in writing of the fact of said breach or breaches and a detailed description of said breaches. From and after the mailing of said notice,the Lessee shall have ten(10)days to cure any breach for the nonpayment of rent and thirty(30)days to cure any other breach of the lease. Failure of the Lessee to remedy said breaches within said period shall result in Lessee's total forfeiture of all its right,title and interest under this Lease,and the Lessor shall have the right to enter said premises and remove the Lessee and her property therefrom, take immediate possession for the purpose of protecting said property and cancel this Lease in its entirety or re-let the premises. In all cases of such forfeiture,Lessor shall make a good-faith effort to mitigate its damages. Lessee shall be liable only for reasonable deficiencies,which do not exceed fair market value of rent which result from re-letting. SLO2 304213.2 7 1 1 24.REMOVAL OF PROPERTY., In the event Lessor lawfully re-enters the Leased Premises as provided herein, Lessor shall have the right,but not the obligation,to remove all of the personal property located therein and to place such property in storage at the expense and risk of Lessee. 25. COSTS AND ATTORNEY'S FEE/VENUE. If,by reason of any default or breach on the part of either party in the performance of any of the provisions of this Lease, a legal action is instituted,the losing party agrees to pay all reasonable costs including the prevailing party's reasonable attorney's fees as fixed by the court in connection therewith. It is agreed that the venue of any legal action brought under the terms for this lease shall be in Spokane County, Washington. 26. SUBROGATING WAIVER. Lessor and Lessee each releases and relieves the other and waives its entire right of recovery against the other for loss or damage arising out of,or incident to, all perils described in the fire and extended coverage insurance policy approved for use in the State of Washington,which occurs in,on or about the Leased Premises,whether due to the negligence of either party,their agents or employees or otherwise. 27.SUBORDINATION. Except as otherwise provided Lessee agrees that this Lease shall be subordinate to any mortgages or deeds of trust placed on the property provided that in the event of foreclosure, if Lessee is not then in default and agrees to attorn to the mortgagee or beneficiary under deed of trust, or purchaser at a foreclosure sale, such mortgagee or beneficiary or purchaser shall recognize Lessee's right of possession for the full term of this Lease. Lessor agrees to use Lessor's best efforts to obtain a Non-Disturbance Agreement. 28.NO WAIVER OF COVENANTS. Any waiver by either party of any breach hereof by the other shall not be considered a waiver of any future similar breach. 29.ENTIRE AGREEMENT. This Lease contains all the agreements between the SLO2 304213.2 8 , r , • parties and no modifications shall be effective except by written instrument,signed by both parties. 30.SURRENDER OF PREMISES. Lessee agrees,upon termination of this Lease, to peacefully quit and surrender the premises to Lessor without notice,to leave the Leased Premises neat and clean,well maintained,in good condition,normal wear and tear excepted, and to deliver all keys to the Leased Premises to the Lessor. 31.HOLDING OVER. If Lessee,with the implied or express consent of Lessor, shall hold over after the expiration of the term of this Lease, Lessee shall remain bound by all the covenants and agreements herein, except that the tenancy shall be from month to month and monthly rent shall be otherwise agreed upon.. 32.BINDING ON HEIRS,SUCCESSORS AND ASSIGNS. This Lease shall be binding upon the heirs, executors, administrators,successors and assigns of both parties hereto, except as hereinabove provided,but this does not constitute a consent to assignment. 33.NOTICE. Any notice required or allowed to be given by either party to the other shall be deposited in the United States mail,registered or certified,return receipt requested, postage prepaid, addressed to Lessor or to the Lessee at their addresses stated below,or at such other address as either party may designate to the other by notice given as herein provided. Lessor at: Northwest Christian Schools C/o WEB Properties,Inc. p.o.Box 21469 Spokane,WA 99201 Lessee at: City of Spokane Valley Attn: City Manager 11707 E. Sprague Suite 106 Spokane Valley,WA 99206 34.NON-SMOKING BUILDING POLICY. It is agreed between Lessor and Lessee that Redwood Plaza is a smoke-free office complex. There is to be no smoking at any time inside of the office building. If smoking within this complex becomes a problem,the Lessor has SLO2 304213.2 9 c • the right to cancel this Lease at its option,provided that the notice and cure provisions of section 23 hereof shall be applicable. 35.FRONT DOOR SECURITY. For the safety of all tenants and the janitor in the Clock Tower Professional Building,all exterior doors must be locked after 6:00 p.m.Monday through Friday. On the weekends all doors must be locked at the time of entering and at the time of exiting. 36.TIME OF ESSENCE. Time is of the essence in all provisions of this Lease. 37.TENANT IMPROVEMENTS. Lessor shall at its own cost and expense shall complete those improvements as outlined in Exhibit A. These improvements include construction of a new conference room at the southwest corner of the suite with a • door from that new room into the interior space, finishing the west wall and noted electrical outlets throughout the space.The space is also to be painted,however the existing carpet is to remain. 38.ARBITRATION. In the event of a disagreement arising under this Lease, all matters shall be submitted to arbitration as follows: The party seeking arbitration shall submit,in writing,to the other party, a statement of the issue(s)to be arbitrated and shall designate a party to act as arbitrator on behalf of the party seeking arbitration. The responding party shall supply a statement of any counter or additional issue(s)to be arbitrated and shall nominate an arbitrator to act for the responding party. This process shall be accomplished within fourteen(14) days after the party seeking arbitration has deposited in the United States mail,postage prepaid,the initial notice of intent to arbitrate,addressed to the other party at the address hereinabove shown. a. The two (2)arbitrators selected shall immediately select a third arbitrator. The arbitrators thus convened shall,within a time established by a majority vote of the arbitrators, conduct a hearing on the issues submitted to them and render a decision SLO2 304213.2 10 (! { • on each issue,in writing, to each of the parties to the dispute. Any decision as to procedure or substance made by a majority of the arbitration panel shall be binding. A decision by a majority of the arbitrators on any issues submitted shall be the decision of the arbitration panel as to that issue. The arbitrators shall have authority to award costs and reasonable attorney's fees to either party in accordance with the merits and good faith of the position asserted by the parties. Said fmal decision of the arbitration may be submitted to any court in the county in which the arbitration takes place to be entered in the form of a judgement therein. b. In lieu of appointing three(3)arbitrators in the manner set forth above,the parties may,by written agreement,designate a single arbitrator. c. Except as provided herein,the arbitration proceedings shall be conducted in accordance with the rules of the American Arbitration Association and the statutes of the State of Washington pertaining to binding arbitration. IN WITNESS WHEREOF,the parties hereto have executed this instrument at Spokane, Washington,on the day and year first above written. CITY OF SPOKANE VALLEY NORTHWEST CHRISTIAN SCHOOLS BY:l BY: 1 ITS: _ BY:673 BY:.i- i /j de ITS: 50.1r e_A I S:) - 4:42461 0/16 '� ` C�Zi'i5fims� f�fro ,k,NOr9nbAI } } } SLO2 304213.2 11 . , . Lessee Acknowledgment State Of Washington County Of Spokane r. On - .4.-Q... lips, 1 1 OO l before me, k PPtJjA ()AA_& , date Notary Public personally appeared ()AV t c-. 1 ,personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged tome that he/she executed the same in his/her authorized capacity,and that by his/her signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. • WITNESS my hand and official seal Q aSMpA h/ r-` %li'1" '// %%%%% r. ;.a te 0 :2= SIGNATURE OF NOTARY /// ti),,■`4„ 8-22.A=� My Commission Expires (d I // -1". \ / �fc1OF`w P �`�. Lessor Acknowledgment STATE OF WASHINGTON) :ss County of Spokane) r� � On this /J day of r u-et- ,200',before me,the undersigned, a Notary Public in and for the State of Wa gton,personally appeared p' ,,�. Z6)- and 2cn,�xo C�.. 12!/,2."-e.4 to me known or proven(6n the basis of satisfactevidence,to be the agent r NORTHWEST CHRISTIAN SCHOOLS,who executed the within and foregoing instrument and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned,and on oath stated that they are authorized to executed said instrument on behalf of said corporation. IN WITNESS WHEREOF,I have hereunto set my hand and affixed my official seal the day and year first above written. 4,..7144„ Ciettegie .s ,n j, r44/®s ALL LG9/d4K (/T• 14' o ,,� � � � Notary Public in and for the State of ,, ..a `gt e • u,� Washington,residing at Spokane do, 7ro��yeq} My Appointment Expires: i /b`f08' oF SLO2 304213.2 12 r LEASE EXTENTION&EXPANSION AGREEMENT THIS AGREEMENT made this 15'"day of December,2008,by and between CITY OF SPOKANE VALLEY,whose mailing address,is 11707 East Sprague,Spokane Valley, Washington 99206,(hereinafter referred to as"[rssn"),and NORTHWEST CHRISTIAN SCHOOLS, a nonprofit corporation,(hereinafter referred to as"Lessor"); WHEREAS,The City Of Spokane Valley,as Lessee,and Northwest Christian Schools,as Lessor,entered into a Lease Agreements and renewals for Suites 101,103,104,105,106,304,Suite B-3 and B-4 warehouse space as noted below,a copy of which is attached hereto as Exhibit"A;"and WHEREAS,the term of the Leases expire on March 31st,2010. WHEREAS,The Lessee desires to continue said lease for an additional Three(3)Year beyond the end of its current term under the same terms and conditions set forth in said lease,as amended herein. NOW,THEREFORE,•for and in consideration of the recitations set forth,the terms and provisions herein contained,and the mutual benefits to be derived here from,the parties do hereby • contract,covenant and agree as follows: I. Extention of Lease,The Leases,attached hereto as Exhibit"A"and incorporated herein by reference,is hereby renewed for a Three(3)Year term,beginning on April 1,2010 and terminating on March 31g,2013. The Lessee covenants and agrees to comply with all the terms and conditions of said Lease,as herein amended,and to be bound thereby and to pay all rent in the manner therein provided. 2.Premises Leased. Lessee is leasing 22,646 square feet within the Clocktower Building,noted as follows:Suites 101,103,104,105,106 and 304.As well as Suite B-3 consisting of 3,290 square feet of office space and B-4,2,300 square feet of warehouse space in the west wing building. All as shown on Exhibit"B"attached hereto. 3. Amendments to Lease, Lessee and Assignee hereby agree to amend certain provisions under the Lease as follows: a. lijittebx.m, Property Taxes,Utilities,Maintenance,Insurance,Administrative& Common Area Maintenance shall continue to be paid by Lessee for Suite B-4 as follows:2,300 sq.ft.of 42,672 total CAM sq.ft,or 5.389%of building premises. CAM charges are billed quarterly. • b. Rent Monthly rent for the period of April 2010 through March 2011 shall be as follows: Clocktower Suites: $32,553.63 B-3: $ 3,857.53 )3-4(base rate); $ 789.67 Total Monthly Rent: $37,200.83 Monthly rent for the period of April 2011 through March 2012 shall be as follows: Clocktower Suites: $33,530.23 B-3: $ 3,973.25 )3-4(base rated; $ 813.36 Total Monthly Rent $38,316.84 Monthly rent for the period of April 2012 through March 2013 shall be as follows: Clocktower Suites: $34,536.14 B-3: $ 4,092.45 )3-4(base rate); $ 837.76 Total Monthly Rent: $39,466.35 c. Option to Renew, There are no options to renew. Except as modified herein all other terms and conditions of said Lease shall remain in full force and effect. i 3.Waivers.Modification otAmendment. No waiver,modification or amendment of any term or condition of this Agreement shall be effective unless in writing,and no waiver or indulgence by either party or any deviation by the other party from full performance of this Agreement shall be a waiver of the right to subsequent or other full,strict,and timely performance. 4. Merr Clause. This Agreement and the Lease Agreement attached as Exhibit A express the full and final purpose and agreement of the parties and will not be qualified,modified or supplemented by 1 Initials:_ eo - 4 3 � y course of dealing,usage of trade,or course of performance. '[lire are no verbal agreements which qualify,modify or supplement this Agreement. 5. Counterparts. This Agreement may be executed in two or more parts,each of which shall be deemed an original,but all of which together shall constitute one and the same instrument IN WITNESS WHEREOF,the parties hereto have set their hands this day of /44" o?ItaD? 2000/9yhry' r7 LESSOR LESSEE NOR CHRISTIAN SCHOOLS CITY OF S'•KANE VALLEY AI H _ Air T164 HY: •• rrs: L ale..... �J' C/" J rr IZ s: '6/ith1Q.>M Gide �p /t7P77f 4✓c°ST r'' +schtef licw&4,14-- ,j yD C��/ PxeamdOn Executed On' TZ L& t /, 020° • ADDRESS FOR NOTICES AND RENT ADDRESS FOR NOTICES Northwest Christian Schools,Inc. City Of Spokane Valley C/o WEB Properties,Inc, 11707 E.Sprague Suite 106 S 140 Arthur St.,Suite 510 Spokane Valley,WA 99206 Spokane,WA 99202 • 2 tnitiJs:_ • ;r Redwood Plaza COSY Unit Actual TI Reimb. Base Rent Base+TI Unit Sqft Rent 4/1/2009 u_-ir_._ ,,f,;:. .,1:Q1_ ' 924 2,737.89 $ 17.08 148.51 $ 2,589.38 $ 16.15 $ 2,685.58 $ 16.75 $ 2,834.09 103 1,140 1,534.25 $ 16.15 $ 1,534.25 $ 16.15 $ 1,591.25 $ 16.75 $ 1,591.25 ;,T, .V <- 4_/a -015 1,366.02 $ 16.15 $ 1,366.02 $ 16.15 $ 1,416.77 $ 16.75 $ 1,416.77 t s ; r �5D5 F350 4,768.44 $ 17.08 259.90 $ 4,508.54 $ 16.15 $ 4,676.04 $ 16.75 $ 4,935.94 �::F.,rD06 10:666: 15,183.88 $ 17.08 829.92 $14,353.96 $ 16.15 $14,887.96 $ 16.75 $15,717.88 Sub Total 18,095 1,238.33 $24,352.15 $25,257.60 $26,495.93 304 4,551 6,175.00 $ 16.28 $ 6,175.00 $ 16.28 $ 6,361.00 $ 16.77 $ 6,361.00 22,646 B3 3,290.00 3,635.79 $ 3,744.87 r,:Lr• Imo. f34:!> ,: �:N -x . 2 300:00; 766.67 $ 766.67 All ess 63;103 04 19`25 00' $23 5870- 4 5 R $36,130.14 $37,368.47 Yellow 0i4,0. .4,TO leF e e B06 80 50 B08 80 50 B09 80 50 B10 80 50 w ►• Exhibit B Exhibit B Lease Extension and Expansion Agreement between City of Spokane Valley (Lessee) and Northwest Christian Schools (Lessor) April 1, 2013 through March 31, 2017 Premises Leased Square at Redwood Plaza Feet Clocktower Building Suite 101 1,924 Suite 103 1,140 Suite 104 1,015 Suite 105 3,350 Suite 106 10,666 Suite 304 4,551 Subtotal 22,646 West Wing Building Suite B-3 3,290 Suite B-4 2,300 Subtotal 5,590 Total leased 28,236 Client#: 64225 REDWPLA ACORD,. CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DD/YYYI)10/04/2013 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT:If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Toby Hawkins Bell-Anderson Ins-Spokane C/L I PH ,NNE o,Ext):509 465 FAX No): 509 4651134 (AIC 8306 N.Wall Street E-MAIL ADDRESS: Spokane,WA 99208 INSURER(S)AFFORDING COVERAGE NAIC# 509 465-1133 Liberty INSURER A:Libe Northwest Insurance Cor INSURED INSURER B: Northwest Christian School NWCS dba INSURER C: Redwood Plaza INSURER D: PO Box 21469 INSURER E: Spokane,WA 99201 INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR TYPE OF INSURANCE SUBR POLICY NUMBER (MM/DDYIYYYY) (MM/LDDY/YYYY) LIMITS A GENERAL LIABILITY CO1175244 10/27/2012 10/27/2013 EACH OCCURRENCE $1,000,000 X COMMERCIAL GENERAL LIABILITY DAMAGE PREMISES PREMISES S( RENTED occurrence) $1,000,000 CLAIMS-MADE X OCCUR MED EXP(Any one person) $10,000 PERSONAL 8 ADV INJURY $1,000,000 GENERAL AGGREGATE $2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $2,000,000 —I POLICY JECT LOC $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT (Ea accident) ANY AUTO BODILY INJURY(Per person) $ ALL OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS AUTOS NON-OWNED PROPERTY DAMAGE HIRED AUTOS AUTOS (Per accident) UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAR CLAIMS-MADE AGGREGATE $ DED RETENTION$ $ WORKERS COMPENSATION WC STATU- OTH- AND EMPLOYERS'LIABILITY Y/N TORY LIMITS ER ANY OFFICER/MEMBER PROPRIETOR/PARTNER/EXECUTIVE ECUTIVE- N/A E.L.EACH ACCIDENT $ (Mandatory In NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES(Attach ACORD 101,Additional Remarks Schedule,If more space is required) The certificate holder is additional insured for general liability,but only if required by written contract or written agreement per the attached endorsement#SS0008 0405 CERTIFICATE HOLDER CANCELLATION ANY City of Spokane Valley THE SHOULD EXPIRATTIIONH DATE VT THEREOF,E NOTICE POLICIES CBE CDELIVEREDO NE 11707 E Sprague Ave#106 ACCORDANCE WITH THE POLICY PROVISIONS. Spokane,WA 99206 AUTHORIZED REPRESENTATIVE ?le.t% .16' ' ©1988-2010 ACORD CORPORATION.All rights reserved. ACORD 25(2010/05) 1 of 1 The ACORD name and logo are registered marks of ACORD #S471512/M436348 KLA COO-362_ WAcities Insurance Authority P.O. Box 88030 Tukwila, WA 98138 06-Sep-11 Cert#: 7451 Phone:206-575-6046 Web Properties Attn: Jennifer Fax: 206-575-7426 PO Box 21469 Spokane,WA 99201 RE: City of Spokane Valley Certificate of Liability Insurance Evidence of Coverage The above captioned entity is a member of the Washington Cities Insurance Authority (WCIA),which is a self insured pool of over 140 municipal corporations in the State of Washington. WCIA has at least$1 million per occurrence combined single limit of liability coverage in its self insured layer that may be applicable in the event an incident occurs that is deemed to be attributed to the negligence of the member. WCIA is an Interlocal Agreement among municipalities and liability is completely self funded by the membership. As there is no insurance policy involved and WCIA is not an insurance company,your organization cannot be named as an"additional insured". Sincerely, Eric B. Larson Deputy Director cc: Mike Jackson defter C ,.(74, ,,77)y Vat,,,, Liberty ` r ' Mutual. INSURANCE PO BOX 34756,SEATTLE,WA 98124 t 800-284-6742 NOTICE OF CANCELLATION of Certificate of Insurance, Loss Payable Clause or Mortgage Clause You hold a Certificate of Insurance, Loss Payable Clause or Mortgage Clause under 'eh you are a Payee in connection with the policy described below. Please accept notice that coverage is hereby cancelled as rest s such Certificate, Loss Payable Clause or Mortgage Clause; and such coverage shall terminate as of the date and hour shown hen.on. Agent BELL-ANDERSON AGENCY INC Code 6124-40 Policy Number C04 175244 Termination effective(12:01 A.M.) 11/19/2014 Name of Insured NORTHWEST CHRISTIAN SCHOOL NWCS DBA REDWOOD PLAZA Address PO BOX 21469,SPOKANE,WA 99201-1469 ® Cancellation applies to entire Certificate. O Cancellation applies only to To Certificate Holder,Loss Payee or Mortgagee Countersigned at Seattle,Washington CITY OF SPOKANE VALLEY 11707 E SPRAGUE AVE STE 106 this 7TH day of NOVEMBER 2014 SPOKANE VALLEY,WA 99206-6124 ❑ NORTH PACIFIC INSURANCE COMPANY ® LIBERTY NORTHWEST INSURANCE COMPANY ❑ OREGON AUTOMOBILE INSURANCE COMPANY ryBy Authorized Representative AWRD® EVIDENCE OF PROPERTY INSURANCE DATE(MM/DD/YYYY) 11/20/2014 THIS EVIDENCE OF PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE ADDITIONAL INTEREST. AGENCY PHONE (425)291-5200 COMPANY (A/C.No.EM): Bell Anderson Agency, Inc. QBE 600 S.W. 39th St, Suite 200 15805 NE 24th St Renton WA 98057 Bellevue WA 98008-2109 laC.No):(425)291-510o ADDRIESS: neilm@bell-anderson.com CODE: SUB CODE: AGENCY 00012029 CUSTOMER ID#: INSURED LOAN NUMBER POLICY NUMBER Northwest Christian School Nwcs Dba CM015816 Redwood Plaza EFFECTIVE DATE EXPIRATION DATE CONTINUED UNTIL Po Box 21469 10/27/2014 10/27/2015 TERMINATED IF CHECKED Spokane WA 99201 THIS REPLACES PRIOR EVIDENCE DATED: PROPERTY INFORMATION LOCATION/DESCRIPTION Blanket Premise THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. COVERAGE INFORMATION COVERAGE/PERILS/FORMS AMOUNT OF INSURANCE DEDUCTIBLE Building, Replacement Cost, Special form 16,892,000 5,000 Business Income, Actual Loss Sustained, Special form 1,000,000 5,000 REMARKS(Including Special Conditions) CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST chelsie.taylor@ spokanevalle MORTGAGEE X ADDITIONAL INSURED City of Spokane Valley LOSS PAYEE 11707 E Sprague Ave Ste 106 LOAN# Spokane Valey, WA 99206 AUTHORIZED REPRESENTATIVE James Hunt/KLA ACORD 27(2009/12) ©1993-2009 ACORD CORPORATION. All rights reserved. INS027(200912102 Tha AC.flRn namc and Innn ara ranictcrari mark of AR(1Rn Aso CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DD/YYYY) ♦`� 11/20/2014 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT CindySlater-Rogers, CISR NAME: g Bell Anderson Agency, Inc. laC No.Fxr)• (425)291-5200 /FAC No): (425)291-5100 600 S.W. 39th St, Suite 200 E-MADDRIess:cindys@bell-anderson.com N INSURER(S)AFFORDING COVERAGE NAIC# Renton WA 98057 INSURER A:QBE QBE INSURED INSURER B: Northwest Christian School Nwcs Dba INSURERC: Redwood Plaza INSURER D: PO Box 21469 INSURER E: Spokane WA 99201 INSURERF: COVERAGES CERTIFICATE NUMBER:CL14112006387 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP W LIMITS LTR INSR VD POLICY NUMBER (MMIDD/YYYY) (MM/DD/YYYY) GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED X COMMERCIAL GENERAL LIABILITY PREMISES(Ea occurrence) $ 1,000,000 A CLAIMS-MADE X OCCUR CM015816 10/27/2014 10/27/2015 MED EXP(Any one person) $ 5,000 PERSONAL&ADVINJURY $ 1,000,000 GENERAL AGGREGATE $ GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ 2,000,000 POLICY n PE Ti LOG $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT (Ea accident) ANY AUTO BODILY INJURY(Per person) $ ALL OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS AUTOS NON-OWNED PROPERTY DAMAGE HIRED AUTOS _ AUTOS (Per accident) UMBRELLA LIAB _ OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED RETENTION$ $ WORKERS COMPENSATION WC STATU- OTH- AND EMPLOYERS'LIABILITY Y/N TORY LIMITS ER ANY PROPRIETOR/PARTNER/EXECUTIVE N A E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? (Mandatory In NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (Attach ACORD 101,Additional Remarks Schedule,If more space Is required) The certificate holder is additional insured for general liability, but only if required by written contract or written agreement per the attached endorsement #CG 2013 0509 CERTIFICATE HOLDER CANCELLATION chelsie.taylor@ spokanevall SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Spokane Valley ACCORDANCE WITH THE POLICY PROVISIONS. 11707 E Sprague Ave #106 Spokane, WA 99206 AUTHORIZED REPRESENTATIVE James Hunt/KLA ACORD 25(2010/05) ©1988-2010 ACORD CORPORATION. All rights reserved. INS025(7mnnsi nt The,Arnar1 name+and Innn are+re+nicde+re+rl marks of A(:(1Rr1