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103-21 - Department of Natural Resources - ContractWhen recorded, return to: City of Port Orchard 216 Prospect Street Port Orchard, WA 98366 &gal5l LAND TITLE COMPANY - : /ERDALE 202112080287 T Amended Adsign Lease Rec Fee: $219.50 12/08/2021/ 03:15:41 PM Page 1 of 17 Paul Andrews, Kitsap County Auditor THIS DOCUMENT WAS E-FILED WITH THE KITSAP COUNTY AUDITOR nrAAr'*.'kA14z �OM°MiS���t�k 0; PVOtIC 1.ANOS AMENDMENT AND NOTICE OF AND CONSENT TO ASSIGNMENT OF LEASE Lease No. 22-AO2336 Ref. No,: 200603220008 Grantor: Washington State Department of Natural Resources Grantee(s): The City of Port Orchard; Kitsap Bank Legal Description: N)E1/4, Section 26, Township 24 North, Range 1 East, W.NI As Property Tax Parcel or Account Number:#�7�1A19P 'y()t)(}'1 26ZIL-1-001--2004 Assessor's Property Tax Parcel or Account Number for Upland parcel used in conjunction with this lease: Not App] is bled .Lt q al on 9.. I. NOTICE OF ASSIGNMENT This Amendment and Notice of and Consent to Assignment of Lease ("Agreement") is made by and between STATE OF WASH]NGTON acting through the Department of Natural Resources ("State"), KITSAP BANK, a Washington Bank Corporation, whose address is 619 Bay Street, Port Orchard, WA 98366 ("Assignor") and THE CITY OF PORT ORCHARD, a government agency, Whose address is 216 Prospect Street, Port Orchard, WA 98366 ("Assignee"). BACKGROUND A. Lease No. 22-AO2336 was entered into on the 21st day of February, 2006, by and Amendment and Notice of and Consent to Assignment of Lease Page 1 of 16 Lease No. 22-AO2336 between Assignor, as tenant, and State, as landlord, and recorded with the Kitsap County Auditor's office under recording number 200603220008 (the "Lease"). B. The Lease is for the Property legally described in Exhibit A to the Lease. C. The term "Lease" in this Agreement includes all amendments to the Lease entered into previous to the date of this Agreement and all amendments within Section 4 of this Agreement. D. Assignor now possesses the rights; duties, and liabilities under the Lease. E. Assignor desires to assign and Assignee desires to assume the rights, duties, and liabilities of Tenant under the Lease. The Lease prohibits an assignment without State's consent. State is willing to give its consent based upon the assurances and agreements made in this Agreement. THEREFORE, Assignor and Assignee agree as follows: SECTION 1 NOTICE OF INTENT TO ASSIGN Assignor gives notice of its intent to assign the Lease to Assignee. Assignor warrants to State and Assignee that Assignor will assign all of its rights, title, and interest as Tenant under the Lease to Assignee effective the 15th day of December, 2021, for the balance of the term as provided in the Lease upon State's consent to the assignment. SECTION 2 NOTICE OF INTENT TO ASSUME Assignee gives notice of its intent to assume all the duties and liabilities of Tenant under the Lease for the balance of the Lease term as provided in the Lease effective the 15t" day of December, 2021. By signing this Agreement, Assignee guarantees faithful performance and discharge of the duties and liabilities of Tenant according to the terms of the Lease. SECTION 3 NO RELEASE State does not release Assignor from fully performing the provisions of the Lease. Assignor agrees that State and Assignee may change, modify, or amend the Lease in any way, including the rent to be paid. Any change, modification, or amendment of the Lease shall not release Assignor from fully performing the provisions of the Lease. Assignor remains liable to State to the same extent as if no assignment had been made. Amendment and Notice of and Consent to Assignment of Lease page 2 of 16 Lease No. 22-AO2336 SECTION 4 AMENDMENTS Paragraphs 10.1, 10.2, 10.3, and 10.4 of the Lease are amended to read as specified in Exhibit 1, attached hereto. All other terms of the Lease not inconsistent with these amendments or this Agreement are hereby affirmed and ratified. SECTION 5 FURTHER ASSIGNMENTS Further assignments may be made, without notice to or consent of Assignor, and without in any manner releasing or relieving Assignor from liability under the Lease. Assignor shall remain liable under all the terms, covenants, and conditions of the Lease as to the end of the term of the Lease. Further assignment shall not be made without prior written consent of State. SECTION 6 WARRANTIES Assignor represents and warrants to State and to Assignee that: (a) The Lease is in full force and effect; (b) Assignor is not in default or breach of the Lease; (c) Assignor has no knowledge of any claims, offsets, or defenses of any Tenant under the Lease or against State; (d) Rents due subsequent to this assignment have not been paid in advance by any Tenant; and (e) To the best of Assignor's knowledge, the Property is in full compliance with all applicable federal, state, and local governmental permits, rules, ordinances, and laws. Assignor shall defend, indemnify and hold harmless State from any breach of the foregoing warranties and from any claims or causes of action, known or unknown, of Assignor that have or may arise from circumstances that precede this Agreement. SECTION 7 NOTICE Assignor instructs State to send all future notices to Assignee. Assignee has the obligation to keep Assignor informed about the activities on the Property and Assignee's performance of its obligations under the Lease. Assignee shall send to Assignor copies of any notices it receives or sends to State. Assignor has the obligation to remain informed of Assignee's activities on the Property, Assignee's performance of its obligations under the Lease, and Assignee's financial condition. State has no obligation to provide Assignor any notice or information concerning the Lease. Assignee and Assignor shall not rely on State to inform Assignor. The parties shall direct notices required or permitted under this Consent to the following addresses: Amendment and Notice of and Consent to Assignment of Lease Page 3 of 16 Lease No. 22-AO2336 State: DEPARTMENT OF NATURAL RESOURCES Shoreline District 950 Farman Avenue North Enumclaw, WA 98022 Assignor: KITSAP BANK 619 Bay Street Port Orchard, WA 98366 Assignee: CITY OF PORT ORCHARD 216 Prospect Street Port Orchard, WA 98366 Any Party may change the place of delivery upon ten (10) days' written notice to the others. Notice is effective upon personal delivery or three (3) days after mailing. SECTION 8 RECORDATION OF AGREEMENT AND ASSIGNMENT AND NOTICE TO STATE Assignor agrees to provide written notice to State that an assignment between Assignor and Assignee has been executed and to record this Agreement and the assignment (or memorandum of assignment) between Assignor and Assignee in the county in which the Property resides. Such assignment, notice, and recording must occur within 60 days of the date upon which this Agreement is executed. To meet the requirement that the assignment between the Assignor and Assignee be recorded, Assignor may record either the assignment document or a memorandum of assignment. Written notice to State under this Section shall include the recording number of this Agreement, the recording number of the assignment (or memorandum of assignment), and a copy of the assignment document or memorandum of assignment. If Assignor fails to notify State of the assignment in accordance with this Section, this Agreement shall be void. SECTION 9 CONSTRUCTION This Agreement shall be construed under the laws of the State of Washington. In the event of conflict between any term, condition, or provision of any agreement between the Assignor and Assignee, and the terms of this Agreement or the Lease, the terms of this Agreement and the Lease shall control. In the event of conflict between any term, condition, or provision of this Agreement and the Lease , this Agreement shall control. Amendment and Notice of and Consent to Assignment of Lease Page 4 of 16 Lease No. 22-AO2336 SECTION 10 CONSENT TO ASSIGNMENT BY STATE In consideration of the foregoing, State consents to the assignment of the Lease to Assignee. However, State expressly conditions this consent on the understanding that neither State's consent nor its collection of rent from Assignee shall be a waiver of the covenant restricting future assignments or subletting. Furthermore, State's acceptance of Assignee as Tenant shall not be construed as releasing Assignor from full performance of the provisions of the Lease. Except as set forth in this Agreement, no provision of this Agreement alters or modifies any of the terms and conditions of the Lease, including the requirement that the written consent of State be obtained before any further assignment of the Lease or subletting of the Property occurs. If State fails to receive written notice of the assignment in accordance with Section 8 of this Agreement, State's consent shall be void. THIS AGREEMENT requires the signature of all Parties and is executed as of the date of the last signature below. ASSIGNO t KITSAP NK Dated: 20a L /J� % � �, Nam Anthony George Dated: 1 , 20 Z. t Title: President Address: 619 Bay Street Port Orchard, WA 98366 Phone: 360-536-0683 ASSIGNEE: CITY OF PORT ORCHARD Name: Robert Putaansuu Title: Mayor Address: 216 Prospect Street Port Orchard, WA 98366 Phone: 360-867-4407 Amendment and Notice of and Consent to Assignment of Lease Page 5 of 16 Lease No. 22-AO2336 II. CONSENT TO ASSIGNMENT BY STATE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES Dated: 20_,,2,i Name: KA7-P.INA ITF;9- Title: Interim Aquatic Resources �epV}y '&) pPr, 56r Address: 950 Farman Avenue North Enumclaw, WA 98022 Approved as to form 5th day of October 2021 Jennifer Clements, Assistant Attorney General Amendment and Notice of and Consent to Assignment of Lease Page 6 of 16 Lease No. 22-AO2336 REPRESENTATIVE ACKNOWLEDGMENT STATE OF ss. COUNTY OF I certify that I know or have satisfactory evidence that ANTHONY GEORGE 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 President of Kitsap Bank to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: 1 V/ t5%ate l =Washington lic ngtonEN09, 2022500 La- ; ff ff d� (Print N e) Notary Public in an or the t t of Was ington, residing at (-'I + ►- My appointment expires / —O Amendment and Notice of and Consent to Assignment of Lease Page 7 of 16 Lease No. 22-AO2336 REPRESENTATIVE ACKNOWLEDGMENT STATE OF W m'1,� nO:& n ) ) ss. COUNTY OF } I certify that I know or have satisfactory evidence that ROBERT PUTAANSUU 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 Mayor of the City of Port Orchard to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: I (--) — k% `a� ignature) (Print Name) Notary Pu c it and f urth1 e Sto of WashiMo n,� residing at rc My appointment expires a--�-?,D as - Amendment and Notice of and Consent to Assignment of Lease Page 8 of 16 Lease No. 22-A02336 STATE ACKNOWLEDGMENT STATE OF WASHINGTON ) �`` �r ,, ) ss. County of 10�(1) c I?CA- I,c,ss;4w I certify that I know or have satisfactory evidence that s the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was tl o ize t execute the instrument and acknowledged it as the Interim Aquatic Resourcei `' f the Department of Natural Resources, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: 0 J1 , 20'Zr (Seal or stamp) (Signature) Ole C&4- n (Print Name) Notary Public in and for the State of Washington, residing at Rq)- t1 AA414 kATU . f My appointment expires /I/, 6� Amendment and Notice of and Consent to Assignment of Lease Page 9 of 16 Lease No. 22-AO2336 EXHIBIT 1. SECTIONS 10.1,10.2, 10.3 and 10.4 are deleted in their entirety and replaced by the following language: SECTION 10 INDEMNITY, FINANCIAL SECURITY, INSURANCE 10.1 Indemnity. (a) Tenant shall indemnify, defend, and hold harmless State, its employees, officials, officers, and agents from any Claim arising out of the Permitted Use, any Claim arising out of activities related to the Permitted Use, and any Claim arising out of the use, occupation, or control of the Property by Tenant, its subtenants, contractors, agents, invitees, guests, employees, affiliates, licensees, or permittees to the fullest extent permitted by law and subject to the limitations provided below. (b) "Claim" as used in this Paragraph 10.1 means any financial loss, claim, suit, action, damages, expenses, costs, fees (including attorneys' fees), fines, penalties, or judgments attributable to bodily injury, sickness, disease, death, and damages to tangible property, including, but not limited to, land, aquatic life, and other natural resources. "Damages to tangible property" includes, but is not limited to, physical injury to the Property, diminution in value,_ and/or damages resulting from loss of use of the Property. (c) State shall not require Tenant to indemnify, defend, and hold harmless State, its employees, officials, officers, and agents for a Claim caused solely by or resulting solely from the negligence or willful act of State, its employees, officials, officers, or. agents. (d) Tenant specifically and expressly waives any immunity that may be granted under the Washington State Industrial Insurance Act, Title 51 RCW in connection with its obligation to indemnify, defend, and hold harmless State and its employees, officials, officers, and agents. Further, Tenant's obligation under this Lease to indemnify, defend, and hold harmless State and its employees, officials, officers, and agents shall not be limited in any way by any limitation on amount or type of damages, compensation, or benefits payable to or for any third party under the worker's compensation acts. (e) Only to the extent RCW 4.24.115 applies and requires such a limitation, if a Claim is caused by or results from the concurrent negligence of (a) State or State's employees, officials, officers, or agents, and (b) the Tenant or Tenant's subtenants, agents, or employees, these indemnity provisions shall be valid and enforceable only to the extent of the negligence of the Tenant and those acting on its behalf. (f) Section 8, Environmental Liability/Risk Allocation, exclusively shall govern Tenant's liability to State for Hazardous Substances and its obligation to indemnify, defend, and hold harmless State for Hazardous Substances. Amendment and Notice of and Consent to Assignment of Lease Page 10 of 16 Lease No. 22-AO2336 10.2 Financial Security. (a) At its own expense, Tenant shall procure and maintain during the Term of this Lease a corporate security bond or provide other financial security that State, at its option, may approve ("Security"). Tenant shall provide Security in an amount equal to Eighteen Thousand Three Hundred and Fifty Dollars ($18,350.00), which secures Tenant's performance of its obligations under this Lease, with the exception of the obligations under Section 8, Environmental Liability/Risk Allocation. (b) All Security must be in a form acceptable to State. (1) Bonds must be issued by companies admitted to do business within the State of Washington and have a rating of A-, Class VII or better, in the most recently published edition of A.M. Best's Insurance Reports, unless State approves an exception in writing. Tenant may submit a request to the Risk Manager for the Department of Natural Resources for an exception to this requirement. (2) Letters of credit, if approved by State, must be irrevocable, allow State to draw funds at will, provide for automatic renewal, and comply with RCW 62A.5-101, et. seq. (3) Savings account assignments, if approved by State, must allow State to draw funds at will. (c) Adjustment in Amount of Security. (1) State may require an adjustment in the Security amount: (i) At the same time as revaluation of the Annual Rent, (ii) As a condition of approval of assignment or sublease of this Lease, (iii) Upon a material change in the condition or disposition of any Improvements, or (iv) Upon a change in the Permitted Use. (2) Tenant shall deliver a new or modified form of Security to State within thirty (30) days after State has required adjustment of the amount of the Security. (d) Upon any default by Tenant in its obligations under this Lease, State may collect on the Security to offset the liability of Tenant to State. Collection on the Security does not (1) relieve Tenant of liability, (2) limit any of State's other remedies, (3) reinstate the Lease or cure the default or (4) prevent termination of the Lease because of the default. 10. 3 Insurance Terms. (a) Insurance Required. (1) Tenant certifies that on the Commencement Date of this Lease it is a member of a self -insured risk pool for all the liability exposures, its self- insurance plan satisfies all State requirements, and its self-insurance plan provides coverage equal to that required in this Paragraph 10.3 and by Paragraph 10.4, Insurance Types and Limits. Tenant shall provide to State evidence of its status as a member of a self -insured risk pool. Upon request by State, Tenant shall provide a written description of its financial condition and/or the self -insured funding mechanism. Tenant shall provide Amendment and Notice of and Consent to Assignment of Lease Page I I of 16 Lease No. 22-AO2336 State with at least thirty (30) days' written notice prior to any material changes to Tenant's self -insured funding mechanism. If during the term of this Lease Tenant's self-insurance plan fails to provide coverage equal to that required in Paragraph 10.3 and Paragraph 10.4 of this Lease, Tenant shall procure additional commercial insurance coverage to meet the requirements of this Lease. The requirements in Paragraph 10.3(a)(3) and (4) only apply where the Tenant procures additional commercial insurance to meet the requirements of this Lease. (2) Unless State agrees to an exception, Tenant shall provide insurance issued by an insurance company or companies admitted to do business in the State of Washington and have a rating of A- or better by the most recently published edition of A.M. Best's Insurance Reports. Tenant may submit a request to the risk manager for the Department of Natural Resources to approve an exception to this requirement. If an insurer is not admitted, the insurance policies and procedures for issuing the insurance policies shall comply with Chapter 48.15 RCW and 284-15 WAC. (3) All general liability, excess, umbrella and pollution legal liability insurance policies must name the State of Washington, the Department of Natural Resources, its elected and appointed officials, officers, agents, and employees as an additional insured by way of endorsement. (4) All property insurance, builder's risk insurance, and equipment breakdown insurance must name the State of Washington, the Department of Natural Resources, its elected and appointed officials, officers, agents, and employees as a loss payee. (5) All insurance provided in compliance with this Lease must be primary as to any other insurance or self-insurance programs afforded to or maintained by State. (b) Waiver. (1) Tenant waives all rights against State for recovery of damages to the extent insurance maintained pursuant to this Lease covers these damages. (2) Except as prohibited by law, Tenant waives all rights of subrogation against State for recovery of damages to the extent that they are covered by insurance maintained pursuant to this lease. (c) Proof of Insurance. (1) Tenant shall provide State with a certificate(s) and endorsement(s) of insurance executed by a duly authorized representative of each insurer, showing compliance with insurance requirements specified in this Lease; and, if requested, copies of policies to State. (2) The certificate(s) of insurance must reference the Lease number. (3) Receipt of such certificates, endorsements or policies by State does not constitute approval by State of the terms of such policies. (d) State must receive written notice before cancellation or non -renewal of any insurance required by this Lease, as follows: Amendment and Notice of and Consent to Assignment of Lease Page 12 of 16 Lease No. 22-AO2336 (1) Insurers subject to RCW 48.18 (admitted and regulated by the Insurance Commissioner): If cancellation is due to non-payment of premium, provide State ten (10) days' advance notice of cancellation; otherwise, provide State forty-five (45) days' advance notice of cancellation or non - renewal. (2) Insurers subject to RCW 48.15 (surplus lines): If cancellation is due to non-payment of premium, provide State ten (10) days' advance notice of cancellation; otherwise, provide State twenty (20) days' advance notice of cancellation or non -renewal. (e) Adjustments in Insurance Coverage. (1) State may impose changes in the limits of liability for all types of insurance as State deems necessary. (2) Tenant shall secure new or modified insurance coverage within thirty (30) days after State requires changes in the limits of liability. (f) If Tenant fails to procure and maintain the insurance described above within fifteen (15) days after Tenant receives a notice to comply from State, State may either: (1) Deem the failure an Event of Default under Section 14 and terminate the Lease without giving Tenant any further opportunity to cure, or (2) Procure and maintain comparable substitute insurance and pay the premiums. Upon demand, Tenant shall pay to State the full amount paid by State, together with interest at the rate provided in Paragraph 6.3 from the date of State's notice of the expenditure until Tenant's repayment. (g) General Terms. (1) State does not represent that coverage and limits required under this Lease are adequate to protect Tenant. (2) Coverage and limits do not limit Tenant's liability for indemnification and reimbursements granted to State under this Lease. (3) The Parties shall use any insurance proceeds payable by reason of damage or destruction to property first to restore the real property covered by this Lease, then to pay the cost of the reconstruction, then to pay State any sums in arrears, and then to Tenant. 10.4 Insurance Types and Limits. (a) General Liability Insurance. (1) Tenant shall maintain commercial general liability insurance (CGL) or marine general liability (MGL) covering claims for bodily injury, personal injury, or property damage arising on the Property and/or arising out of Tenant's use, occupation, or control of the Property and, if necessary, commercial umbrella insurance with a limit of not less than One Million Dollars ($1,000,000) per each occurrence. If such CGL or MGL insurance contains aggregate limits, the general aggregate limit must be at least twice the "each occurrence" limit. CGL or MGL insurance must have products -completed operations aggregate limit of at least two times the "each occurrence" limit. Amendment and Notice of and Consent to Assignment of Lease Page 13 of 16 Lease No. 22-AO2336 (2) CGL insurance must be written on Insurance Services Office (ISO) Occurrence Form CG 00 01 (or a substitute form providing equivalent coverage). All insurance must cover liability arising out of premises, operations, independent contractors, products completed operations, personal injury and advertising injury, and liability assumed under an insured contract (including the tort liability of another party assumed in a business contract) and contain separation of insured (cross -liability) condition. (3) MGL insurance must have no exclusions for non -owned watercraft. (b) Workers' Compensation. (1) State of Washington Workers' Compensation. (i) Tenant shall comply with all State of Washington workers' compensation statutes and regulations. Tenant shall provide workers' compensation coverage for all employees of Tenant. Coverage must include bodily injury (including death) by accident or disease, which arises out of or in connection with Tenant's use, occupation, and control of the Property. (ii) If Tenant fails to comply with all State of Washington workers' (c) (d) compensation statutes and regulations and State incurs fines or is required by law to provide benefits to or obtain coverage for such employees, Tenant shall indemnify State. Indemnity shall include all fines; payment of benefits to Tenant, employees, or their heirs or legal representatives; and the cost of effecting coverage on behalf of such employees. (2) Longshore and Harbor Workers' and Jones Acts. Longshore and Harbor Workers' Act (33 U.S.C. Section 901 et seq.) and/or the Jones Act (46 U.S.C. Section 30104) may require Tenant to provide insurance coverage in some circumstances. Tenant shall ascertain if such insurance is required and, if required, shall maintain insurance in compliance with law. Tenant is responsible for all civil and criminal liability arising from failure to maintain such coverage. Employers' Liability Insurance. Tenant shall procure employers' liability insurance, and, if necessary, commercial umbrella liability insurance with limits not less than One Million Dollars ($1,000,000) each accident for bodily injury by accident and One Million Dollars ($1,000,000) each employee for bodily injury by disease. Property Insurance. (1) Tenant shall buy and maintain property insurance covering all real property and fixtures, equipment, tenant improvements and betterments (regardless of whether owned by Tenant or State). Such insurance must be written on an all risks basis and, at minimum, cover the perils insured under ISO Special Causes of Loss Form CP 10 30, and cover the full replacement cost of the property insured. Such insurance may have commercially reasonable deductibles. Any coinsurance requirement in the policy must be waived. Amendment and Notice of and Consent to Assignment of Lease Page 14 of 16 Lease No. 22-AO2336 (2) Tenant shall buy and maintain equipment breakdown insurance covering all real property and fixtures, equipment, tenant improvements and betterments (regardless of whether owned by Tenant or State) from loss or damage caused by the explosion of equipment, fired or unfired vessels, electric or steam generators, electrical arcing, or pipes. (3) In the event of any loss, damage, or casualty that is covered by one or more of the types of insurance described above, the Parties shall proceed cooperatively to settle the loss and collect the proceeds of such insurance, which State shall hold in trust, including interest earned by State on such proceeds, for use according to the terms of this Lease. The Parties shall use insurance proceeds in accordance with Paragraph 10.3(g)(3). (4) When sufficient funds are available, using insurance proceeds described above, the Parties shall continue with reasonable diligence to prepare plans and specifications for, and thereafter carry out, all work necessary to: (i) Repair and restore damaged building(s) and/or Improvements to their former condition, or (ii) Replace and restore damaged building(s) and/or Improvements with a new building(s) and/or Improvements on the Property of a quality and usefulness at least equivalent to or more suitable than, damaged building(s) and/or Improvements. (e) Builder's Risk Insurance. (1) Tenant shall procure and maintain in force, or require its contractor(s) to procure and maintain in force, builder's risk insurance on the entire work during the period construction is in progress and until completion of the project and acceptance by State. Such insurance must be written on a completed form and in an amount equal to the value of the completed building and/or Improvements, subject to subsequent modifications to the sum. The insurance must be written on a replacement cost basis. The insurance must name Tenant, all contractors, and all subcontractors in the work as insured. (2) Insurance described above must cover or include the following: (i) All risks of physical loss except those specifically excluded in the policy, including loss or damage caused by collapse; (ii) The entire work on the Property, including reasonable compensation for architect's services and expenses made necessary by an insured loss; (iii) Portions of the work located away from the Property but intended for use at the Property, and portions of the work in transit; (iv) Scaffolding, falsework, and temporary buildings located on the Property; and (v) The cost of removing debris, including all demolition as made legally necessary by the operation of any law, ordinance, or regulation. Amendment and Notice of and Consent to Assignment of Lease Page 15 of 16 Lease No. 22-AO2336 (3) Tenant or Tenant's contractor(s) is responsible for paying any part of any loss not covered because of application of a deductible contained in the policy described above. (4) Tenant or Tenant's contractor(s) shall buy and maintain equipment breakdown insurance covering insured objects during installation and until final acceptance by permitting authority. If testing is performed, such insurance must cover such operations. The insurance must name Tenant, all contractors, and subcontractors in the work as insured. (f) Business Auto Policy Insurance. (1) Tenant or Tenant's contractor(s) shall maintain business auto liability insurance and, if necessary, commercial umbrella liability insurance with a limit not less than One Million Dollars ($1,000,000). Such insurance must cover liability arising out of "Any Auto". (2) Business auto coverage must be written on ISO Form CA 00 01, or substitute liability form providing equivalent coverage. If necessary, the policy must be endorsed to provide contractual liability coverages and cover a "covered pollution cost or expense" as provided in the 1990 or or later editions of CA 00 01. Amendment and Notice of and Consent to Assignment of Lease Page 16 of 16 Lease No. 22-AO2336 EXHIBIT "A" LEGAL DESCRIPTION For APN: 262401-1-001-2004 PARCEL II (LEASEHOLD PROPERTY): THE HARBOR AREA IN FRONT OF BLOCK 11, PLAT OF SIDNEY TIDELANDS, ACCORDING TO THE PLAT RECORDED IN THE OFFICE OF THE COMMISSIONER OF PUBLIC LANDS, OLYMPIA, WASHINGTON; AND TOGETHER WITH VACATED PORTION OF PORT STREET, ADJACENT THEREOF, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST WESTERLY CORNER OF SAID BLOCK 11, SAID POINT BEING ON THE INNER HARBOR LINE; THENCE NORTH 46°37'30" EAST (NORTH 46°40'16" EAST 215.15) 214.95 FEET ALONG SAID INNER HARBOR LINE TO AN ANGLE POINT HEREIN; THENCE SOUTH 84°36'30" EAST (SOUTH 80°00'00" EAST) 3.05 FEET ALONG SAID HARBOR LINE; THENCE NORTH 31°55'39" WEST (NORTH 31°50'43" WEST) AND LEAVING SAID HARBOR LINE, 206.57 FEET; THENCE SOUTH 46°35'20" WEST (SOUTH 46°40'16" WEST) 227.65 FEET; THENCE SOUTH 31°55'39" EAST (SOUTH 31°50'43" WEST) 204.09 FEET TO A POINT ON SAID INNER HARBOR LINE; THENCE NORTH 46°37'30" EAST (NORTH 46°40'16" EAST) 10.20 FEET ALONG SAID INNER HARBOR LINE TO THE POINT OF BEGINNING.