HomeMy WebLinkAbout1992 - Lease - Werran Family Trust / Donbroski / Stranger / Stephens et al - 92101515519210151551
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THIS LEASE, dated this /' —day of August, 1992, by and
between The Werran Family Trust, Lu Ella Donbroski, Trustee
(hereinafter "Lessor "); and NonStop, Inc., a Washington
corporation, Ron Stanger and Sherry Stanger , husband and
wife, and their marital community and Michael Stephens, a single
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1l, man (hereinafter "Tenant ") .
0 W I T N E S E T H•
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04 1 Lease. The Lessor leases to Tenant and Tenant leases
from Lessor, in accordance with the terms hereof, the Premises
situated .at 12606 Pacific Highway South, Tukwila, King County,
Washington, legally described as follows:
1.1 Restaurant:
That portion of the West 100 feet of Tract 39, Riverside
Interurban Tracts, according to the Plat recorded in
Volume 10 of Plats, page 74, in King County Washington
lying East of the easterly line of Pacific Highway South
as conveyed to the State of Washington by deed recorded
under Auditor's File No. 1996812.
AND TOGETHER WITH Lots 4 and 5, Block 12, Riverton
Addition per Plat recorded in Volume 13 of Plats, page
36, records of King County, Washington;
TOGETHER WITH that portion of vacated south 126th Street
adjoining the north line of said tracts, per VAC. ORD
5904;
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2; AND TOGETHER WITH that portion of Lot 6, Block 12, said
Riverton Addition, lying East of the easterly line of
said Pacific Highway South except the east 125 feet
thereof.
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1.2 North Parking Area:
That portion of the West 100 feet of Tract 38, Riverside
Interurban according to plat recorded in Volume 10 of Plats,
page 74, in King County, Washington; more particularly
described as follows:
Beginning at the intersection of the South line of said Tract
38, with the easterly line of Pacific Highway South, as
conveyed to the State of Washington by deed recorded under
Auditor's File No. 1996812; thence North 12' 23' 12" West
along said easterly line, 203.50 feet more or less; thence
North 89' 81' 12" East 120 feet more or less; thence South 1'
40' 00" West along said East line 200 feet more or less, to
the South line of said Tract 38; thence North 89' 21' 12"
West, along said South line 57.55 feet to the point of
beginning.
TOGETHER WITH portion of vacated South 126th Street adjoining
the South line of said Tract, per Vacation Ordinance 5904.
LESS the North 125 feet thereof, along with easements for
ingress, egress, parking, landscaping, utilities, water and
telephone lines necessary to service the North 100 feet.
As per the sketch attached.'
Hereinafter called "Premises ".
2 Business Purpose. The Premises shall be used for a
restaurant, pub and eatery with a "HCEF" Liquor License (The
"Liquor License ") and for.no other purpose without the written
consent of Lessor.
3 Term and Option to Renew.
3.1 Initial Lease Term. The initial term of this Lease
shall be for five years and shall commence on the 1st day of the
first month after the Tenant receives its Liquor License, or
October 1, 1992, whichever is earlier.
3.2 Options to Renew: Lessee shall have the option of
UWWE: TM legal description of the Perking lot nny not be accurate. The Portico authorise
the landlord or Its agent to Insert a corrected legal description.
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renewing this lease for three additional terms of five (5) years
each to run consecutively; provided the Tenant is not and has not
been in default of any terms of this Lease, and that said option is
exercised as provided herein. Other than the amount of the rental,
any renewal shall be based upon the same terms and conditions as
specified in this Lease, unless modified by mutual agreement of the
parties. Written notice of exercise of option to renew shall be
delivered to Lessor not later than a date three (3) months prior to
the expiration date of the leasehold term or previously exercised
renewal terms.
4 Base Rent. Tenant agrees to pay to Lessor at the office
designated by Lessor, as rental for said Premises, the monthly base
rent as follows:
4.1 For the first six (6) months: One thousand Two
Hundred Fifty ($1,250) Dollars;
4.2 For the next eighteen (18) months: Two Thousand Five
Hundred ($2,500.00) Dollars;
4.3 bor the next thirty six (36) months: Three Thousand
($3,000) Dollars;
4.4 For the next five (5) years: The Fair Market Rental
Value of the Premises, but in no event less than Three
Thousand Five Hundred ($3,500) Dollars;
4.5 For the next five (5) years: The Fair Market Rental
Value of the Premises, but in no event less than Four
Thousand Hundred ($4,000) Dollars; and
4.6 For the next five (5) years: The Fair Market Rental
Value of the Premises, but in no event less than Four
Thousand Five Hundred ($4,500) Dollars.
All rent shall be payable in advance on or before the first day of
each calendar month of the Lease term or any period prior or
suhzequent thereto while Tenant is in possession of the Premises.
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Rent for a partial month shall be prorated. Tenant shall pay a
late charge and penalty of five percent (5%), plus one percent (1 %)
per month interest for any delinquent rental not paid prior to the
tenth day of the month. All rent payments shall be "triple net"
i.e. exclusive of any real estate taxes, assessments, utility
charges, insurance, maintenance including, but not limited to the
roof, walls, porches, floors and foundation, parking lot, utilities
and sales, franchise, business or occupation or other tax based on
rents, and should any such taxes apply during the life of this.
Lease, the rent shall be increased by 'such amount.
5 Fair Market Rental value. The term "Fair Market Rental
Value" shall be the actual value that a willing tenant would pay to
v a willing landlord; and what a willing landlord would accept as
to
In rental for the Premise based on then current appraising standards.
If the parties can not agree to the Fair Market Rental Value for
CDthe Premises by the commencement of the third or the forth five
C4 year term, t. en, the resolution shall be resolved by arbitration
under the provisions of the Revised Code of Washington, RCW 7.14,
and under the auspices of the American Arbitration Association in
Seattle, Washington. The costs of arbitration shall be borne
equally by both parties.
6 Security Deposit. Receipt is acknowledged of Five
Thousand and 00/100 Dollars ($5,000.00), deposited with the Lessor
as partial security for the performance of Tenant's obligations
under this Lease. Lessor may at any time apply such deposit
against any loss or damage suffered by reason of any default by
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Tenant, including the cost of cleaning and repairing said Premises
but shall return any remaining part of the lease deposit, without
interest, to Tenant upon expiration of the Lease. If any portion
of the security deposit is used or applied by Lessor at any time,
Tenant will, upon demand, deposit additional cash security to
restore the security deposit to its original amount. The security
deposit need not be held in any special account. In the event of
performance of all the terms and conditions of this Lease without
default, this deposit may, at Lessor's option, be applied to the
last month's rent and any excess returned to the Lessee. This
security deposit shall be forfeited in the event the Tenant does
not obtain a Liquor License, or otherwise does not take possession
of the Premises and commence paying rent by October 1, 1992.
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7 Construction and Repairs.
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NJ 7.1 Construction. Tenant shall, at tenants' cost and
Q expense, remodel the Premises in accordance with the plans and
N specifications Mich shall be subject to Lessor's approval which
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approval shall not be unreasonably withheld. Construction shall be
under the supervision of a general contractor approved by the
Lessor; shall commence no later than October 1, 1992, and shall be
completed no later than November 30, 1992. Tenant shall keep the
premises and the office /warehouse free and clear of all liens and
encumbrances. Tenant shall post both a completion and payment bond
and /or security sufficient in amount to assure the timely and
completion to occupancy permit of the remodeling project; and to
protect the Lessor from any liens, encumbrances or charges incurred
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as a. result of Tenant's remodeling. All improvements including
kitchen equipment and trade fixtures shall remain with the Premises
at the termination or expiration of this Lease.
7.2 Jepairs. Tenant shall take good care of the
Premises and shall, as and when needed, make all repairs which are
made necessary by the Tenant's use and occupancy of the Premises.
All maintenance and repair work shall be in quality and class equal
to the original work, and shall be done only at such times and in
such manner as may be approved in writing by Lessor. Lessor may
repair, at the expense of Tenant, any damage to the Premises or to
the building of which they are a part, or to its fixtures, grounds,
facilities, appurtenances and equipment caused by Tenant or caused
by moving property of Tenant into or out of the Premises, or from
any other cause due to the use, occupancy, negligence or improper
conduct of Tenant or Tenant's employees, family, agents, customers,
patrons or visitors. The cost of such repairs shall be payable by
Tenant on deman..• but in no case later than the rent payment date
next following the submission of a statement by Lessor.
B Utilities. Tenant shall provide and pay for all water,
sewer, electricity, garbage and other utilities. Lessor shall not
be liable, nor shall rental be abated, for interruption of any such
service.
9 Accidents.
at the risk of Tenant.
damage, eitherr to any
by Tenant or others,
All property on the leased Premises shall be
Lessor shall not be liable for theft or any
person or to any property, whether sustained
and for any cause or reason whatsoever.
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Tenant agrees to defend and hold Lessor harmless for any and all
claims or damages sustained or alleged to be sustained in or about
the leased Premises by any person, firm or corporation, unless
caused by the negligence of the Lessor.
10 Insurance_ During the term of this Lease, Tenant, at its
sole cost and expense, and for the mutual benefit of Lessor and
Tenant, shall carry and maintain the following types of insurance
in the amount specified: (1) fire and extended coverage insurance
against loss or damage by fire and against loss or damage by other
risks now or hereafter embraced by "extended coverage", in amounts
sufficient to prevent Lessor or Tenant from becoming a co- insurer
under the terms of the applicable policies: •(2) comprehensive
Li
llI public liability insurance, including property damage, insuring
to .4 Lessor and Tenant against liability for injury to
persons or
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G property occurring in or about the leased premises or arising out
N of the ownership, maintenance, use or occupancy thereof, the
01 liability under- such insurance shall not be less than One Million
($1,000,000) Dollars for any person injury, death or accident,
whether or not liquor related; and not less than Five Hundred
Thousand ($500,000) Dollars for personal property damage.
All policies of insurance shall provide by endorsement that
any loss shall be payable to Lessor or Tenant as their respective
interest may appear. Tenant shall have the privilege of procuring
and obtaining all of said insurance through its own sources.
Lessor and Tenant agree to waive all rights of subrogation their
insurance companies may hold against each other.
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11 compliance with Laws and Regulations. Lessor shall not
be called upon to make improvements of any kind to the Premises.
Tenant shall at all times keep the use of the Premises in
accordance with all laws and regulations, including, but not
limited to, rules and regulations of any liquor control or health
officer, fire marshal, building inspector or other official having
authority over the Premises or the Tenant's business, at the sole
cost and expense of Tenant. Tenant will permit no waste, damage or
injury to the Premises, and will not use or permit in said premises
anything that will increase the rate of fire insurance, nor will
Tenant maintain anything that may be dangerous to life or limb; or
overload floors; or permit any objectionable noise or odor; nor
y4 permit anything to be done in the
� Y g premises that will tend to create
'4 a nuisance or disturb any other tenant; nor use or permit the use
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y-f of the Premises for lodging or sleeping purposes or any immoral or
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CI illegal purpose.
12 Liens .-nd Solvency. Tenant shall keep the leased
Premises and the property in which the leased Premises are situate,
free from any liens arising out of any taxes, assessments, work
performed, materials furnished, services, utilities, or obligations
incurred by Tenant and hold the Lessor harmless therefrom including
all costs and attorneys' fees. In the event Tenant becomes
insolvent, voluntarily or involuntarily bankrupt, or if a receiver,
assignee or other liquidating officer is appointed for the business
of the Tenant, then the Lessor may cancel this Lease at Lessor's
option, and the Tenant shall nevertheless be liable for any further
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losses or damages sustained by Lessor so caused by the Tenant.
13 Assignment. Tenant shall not assign this Lease or any
part thereof, nor let or sublet the whole or any part of the
Premises without the written consent of Lessor. Said consent shall
not be unreasonably withheld. This Lease shall not be assignable
by operation of law. If Tenant is a corporation, then any transfer
of this Lease from tenant by merger, consolidation, liquidation or
any change in the ownership of, or power to vote, the majority of
its outstanding stock shall constitute an assignment for the
purposes of this paragraph. Any assignment of the lease shall not
extinguish or diminish the liability of the Tenant herein
. Consent
once given by the Lessor to the assignment or subletting shall not
relieve Tenant from obtaining written consent to any, new or future
assignment or subletting as required herein.•
14 Access. Tenant will allow Lessor or Lessor's agent
access at all reasonable times to said Premises for the purposes of
inspection, cle.;ning or making repairs, additions or alterations to
the Premises, or to any property owned by or under the control of
Lessor. The Lessor shall have the right to place and maintain "For
Rent" signs in a conspicuous place on said Premises and to show
Premises to prospective tenants for 30 days prior to the expiration
of this Lease. Nothing herein shall be construed to require the
Lessor to make repairs or mitigate any damages of the Tenant.
15 possession. In the event of the inability of Lessor to
deliver possession of the Premises, or any portion thereof, at the
time of the commencement of the term of this Lease, neither Lessor
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nor Lessor's agents shall be liable for any damage caused thereby,
nor shall this Lease thereby become void or voidable, nor shall the
term herein specified be in any way extended, but in such event,
Tenant shall not be liable for any rent until such time as Lessor,
can deliver possession. If the Tenant shall take possession of the
premises prior to the commencement date of this Lease, Tenant and
Lessor agree to be bound by all of the provisions and obligations
hereunder during such period, including payment of rent at the rate
stated herein.
16 Qmaae or Destruction. In the event the Premises are
damaged to such extent as to render the same untenable in whole or
in substantial part, and Lessor elects to repair or rebuild, the
w4 work shall be prosecuted without unnecessary delay. Rent shall be
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abated while such work is in progress, in the 'same ratio that the
1,17 portion of the Premises unfit for occupancy shall bear to the whole
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of the lease Premises. If, after a reasonable time, the Lessor
_ shall fail to proceed to repair or rebuild, Tenant shall have the
right to declare this Lease terminated by written notice served
upon the Lessor. In the event the building in which the Premises
leased are located shall be destroyed or damaged to such extent
that in the opinion of the Lessor it shall not be practicable to
repair or rebuild, it shall be optional with Lessor to terminate
this Lease by written notice mailed to Tenant within 20 days after
such damage or destruction.
17 Sians. All such signs shall be installed, maintained,
and at the termination of the Lease, removed at Tenant's expense.
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18 Alterations. Tenant shall not make any alterations,
additions or improvements in said Premises without first obtaining
the consent of Lessor in writing. All such alterations, additions
and improvements which shall be at the cost and expense of Tenant,
and shall become the property of the Lessor and shall remain in and
be surrendered with the Premises as a part thereof at the
termination of this Lease, without disturbance, molestation or
injury, except for any improvements that Lessor may elect to
request Tenant to remove. If the Tenant shall perform work with
the consent of the Lessor, as aforesaid, Tenant agrees to comply
with all laws, ordinances, rules and regulations of the appropriate
city or county, and any other authorized public authority. Tenant
'r'4 further agrees to hold Lessor harmless from damage, loss or costs
arising out of'the said work. Tenant agrees that Lessor has the
LIright to make alterations to the Premises and to the building in
,w4 which the Premises are situated, and Lessor shall not be liable for
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C) any damage which. ^enant might suffer by reason of such undertaking.
19 pefault and Re- entry. If any rents above received, or
any part thereof, shall be and remain unpaid when the same shall
become due, or if Tenant shall violate or default in any of the
covenants and agreements herein contained, then the Lessor may
cancel this Lease upon giving the notice required by law, and re-
enter said Premises, using such force as may be required.
Notwithstanding such re -entry by Lessor, the liability of the
Tenant for the rent provided for herein shall not be extinguished
for the balance of the term of this Lease and Tenant covenants and
Dr.
agrees to make good to the Lessor any deficiency arising from a re-
entry and reletting of the Premises at a lesser rental than agreed
to herein. The Tenant shall pay such deficiency each month as the
amount thereof is ascertained by the Lessor. In the event it
becomes reasonably necessary to make any changes, alterations or
additions to the Premises or any part thereof for the purpose of
reletting said premises or any part thereof, Tenant shall also be
responsible for such costs.
20 Aron- waiver. The failure of the Lessor to insist upon
strict performance of any of the covenants and agreements of this
.4 Lease, or to exercise any option herein conferred in any one or
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In more instance, shall not be construed to be a waiver or
relinquishment of any such, or any other covenants and agreements,
0 but the same shall be and remain in full force and effect.
01 21 Costs and Attorneys' Fees. All costs and expenses,
including attorneys' fees in a reasonable amount, incurred by
Lessor or by Tenant in enforcing the obligations of Tenant or the
lessor under this Lease, shall be paid by the defaulting party to
the prevailing party upon demand.
22 Removal of Property.
22.1 In the event of any re -entry or taking possession
of the lease Premises for default, the Lessor shall have the right,
but not the obligation, to remove from the lease Premises all
personal property located therein, and may store the same in any
place selected by Lessor, including by not limited to a public
warehouse, at the expense and risk of the owners thereof, with the
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right to sell such stored property, without notice to Tenant, after
it has been stored for a period of 30 days or more. The proceeds
of such sale to be applied first to the cost of such sale, second
to the payment of the charges for the storage, if any, and third to
the payment of any other sums of money which may then be due from
Tenant to Lessor under any of the terms hereof, the balance, if
any, without interest to be paid Tenant.
22.2 Tenant hereby waives all claims for damages that
may be caused by Lessor's re- entering and taking possession of the
Premises or removing and storing the property of Tenant as provided
in this Lease, and will hold Lessor harmless from loss, costs or
damages occasioned by Lessor thereby. No such re -entry shall be
considered or construed to be a forcible entry.
23 Termination for Government Use. In the event that any
federal, state or local government or agency or instrumentality
thereof shall, by condemnation or otherwise, take title or
possession or thi right to possession of the premises, or any part .
thereof, the Lessor may at'its option terminate this Lease as of
the date of such taking, and if the Tenant is not in default under
any of the provisions of this Lease on said date, any rent prepaid
by Tenant shall to the extent allowable for any period subsequent
to the effective date of the termination be promptly refunded to
Tenant.
24 Transfer by Landlord. If Lessor shall assign its
interest under this Lease or transfer its interest in the Premises,
Lessor shall be relieved of any obligation accruing hereunder after
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such assignment or transfer, and such transferee shall thereafter
be deemed to be the Lessor hereunder. Lessor shall transfer
Tenant's security to such transferee, and Tenant shall look solely
to such transferee for the return of such deposit.
25 } fairs and Successors. Subject to the provisions hereof
pertaining to the assignment and subletting, the covenants and
agreements of this Lease shall be binding upon the heirs, legal
representatives, successors and assigns of any or all of the
parties hereto.
26 Holdover. If the Tenant shall, with the written consent
of Lessor, holdover after the expiration of this Lease, such
tenancy shall be for an indefinite period of time on a month-to-
r4 month tenancy, which tenancy may be terminated as provided by law.
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During such tenancy, Tenant agrees to pay to the Lessor the same
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• rental as provided herein, unless a different rent is agreed upon,
• and to be bound by all of the applicable terms and conditions of
01 this Lease.
27 Subordination. This Lease is subordinate to all present
and future mortgages, deeds of trust and other encumbrances
affecting the demised Premises or the property of which said
Premises are a part. Tenant agrees to execute, at no expense to
Lessor, any instrument which may be deemed necessary or desirable
by the Lessor to further effect the subordination of this Lease to
any mortgage, deed of trust or encumbrance. Tenant irrevocably
appoints and constitutes the Lessor as the true and lawful
attorney -in -fact for Tenant at any time in Tenant's name, place and
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stead, to execute property subordination agreements for this
purpose.
28 Mutual Release and Waiver. To the extent a loss is
covered by insurance in force, the Lessor and Tenant hereby
mutually release each other from liability and waive all right of
recovery against each other for any loss from perils insured
against under their respective fire insurance policies, including
any extended coverage endorsements thereto; provided, that this
agreement shall be inapplicable if it would have the effect of
invalidating any insurance coverage of the Lessor or the Tenant.
'4 29 JIot ,.ces. All notices to be given by the parties hereto
» shall be in writing and may either be served
�-1 g Y personally or may be
v4 deposited in the United States mail, postage prepaid, by either
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v4 certified mail with certificate of mailing obtained or by regular
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en mail, and if to be given Lessor, to be addressed to the Lessor or
Lessor's agent, or if to be given Tenant, may be addressed to
Tenant at the 1eAsed premises.
30 First Right of Refusal. At any time during the Lease
term, or any extension thereof, the Tenant shall have the first
right of refusal for any bona fide offer to purchase the Premises.
The Landlord shall give the Tenant written notice of. such an offer,
which the Tenant shall have fifteen (15) days to accept, in all
respects. The Tenant must also provide the Landlord with proof of
its ability to close on the same terms and conditions as the bona
fide offer. This provision shall not apply to any transfers of the
North 125 feet of the North Parking Lot; or of the Premises to,
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between or among members of the Cordelia Werran family, nor to an
offer from the Boeing Company, or any related entity.
31 Special Provisions Relating to the North 125 Feet of the
North Parkins Lot The Landlord has retained the North 125 feet of
the North Parking Lot for its future development and use. Until
such time as the Landlord desires to develop or use this portion of
the North 125 feet of the North Parking Lot, the Tenant may use it
without charge, provided that it shall maintain, insure and pay all
taxes and assessments thereon. The Tenant further agrees to
execute and deliver, at Landlord's request, any and all documents
reasonably required by the Landlord to effectuate a lot line
adjustment to the North 125 feet and to assure use of that portion
of the North Parking Lot for commercial purposes.
32 Riders. The riders, if any, attached hereto, are made
part of-this Lease.
IN WITNESS WHEREOF, the Lessor and Tenant have executed this
Lease the day a,d year first above written.
LESSOR:
THE WERRAN ILY TRUST
By:
Craig S. Sternberg, attorney
for the Werran Family Trust
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NON -STOP, INC.
Bye
Michael A. Stephens, President
9210151551
By:
By:
By:
Michael A
Ron D. Stanger
STATE OF WASHINGTON
ss.
COUNTY OF KING ! )
On this 1/ day of August, 1992, before me, the undersigned,
a Notary Public in and for the State of Washington, duly
commissioned a.1d sworn, personally appeared MICHAEL A. STEPHENS, to
me known to be the president of Non -Stop. Inc., the corporation
that executed the 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 state that he was authorized to execute the said instrument
and that the seal affixed, if any, is the corporate seal of said
corporation.
Witness my hand and official seal hereto affixed the day and
year first written above. AG ,
Notary Public in and for the
State of Washington, residing
at: k,.L /<. J L -,4-
My commissi'on expires: 1-/-/---9-r
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STATE OF WASHINGTON
COUNTY OF KING
)
)
Ss.
On this /1, — day of August, 1992, before me, the
undersigned, a Notary Public in and for the State of Washington,
duly commissioned and sworn, personally appeared CRAIG S.
STERNBERG, Trustee, the individual desiring to execute the
foregoing instrument, and acknowledged that said instrument to be
the free and voluntary act and deed of said individual as the
attorney for the Overran Family Trust, for the uses and purposes
therein mentioned, and on oath stated that he is authorized to
execute the said instrument.
WITNESS MY HAND AND OFFICIAL SEAL hereto affixed the day and
year first above written.
In
In
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L2 STATE OF WASHINGTON
CI )
COUNTY OF KING ) ss.
On this 5 'day of August, 1992, before me, the undersigned,
a Notary Publi•- in and for the State of Washington, duly
commissioned and 'sworn, personally appeared ON 0, STANGER an4
SHERRY L. STANGER, the individuals desiring to execute the
foregoing instrument, and acknowledged that said instrument to be
the free and voluntary act and deed of said individuals, for the
uses and purposes therein mentioned, and on oath stated that each
is authorized to execute the said instrument.
WITNESS MY HAND AND OFFICIAL SEAL hereto affixed the day and
year first above written.
az-
Notary Public in and
State of W shington,
at: K,,4j.r,.r GG4-
My commission expires:
for the
residing
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Notary Public in and for the
State of Washington, residing
at: /4ai.4../, "
My commission expires: 'I;i -y;
4
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STATE OF WASHINGTON
COUNTY OF KING
ss.
On this [� day of August, 1992, before me, the undersigned,
a Notary Public in and for the State of Washington, duly
commissioned and sworn, personally appeared MICHAEL A. STEPHENS,
the individual desiring to execute the foregoing instrument, and
acknowledged that said instrument to be the free and voluntary act
and deed of said individual, for the uses and purposes therein
mentioned, and on oath stated that each is authorized to execute
the said instrument.
WITNESS MY HAND AND OFFICIAL SEAL hereto affixed the day and
year first above written.
Notary Public in and for the
State of Washington, residing
at: kick / "";
v4 My commission expires:
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IT IS OUETO THE. QUALITY OF THE DOGUMENT•
9210151551
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