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£HSE/l7t^f^MS S Deser t Wing s Je t

Cente r 777S E Salmo n Avenu e Redmond , O R9775 6 (541 ) 548-480 1 Marc h26,201 0 Offic e o f th e Chie f Counse l Attention : FA A Part

1 6 Airport

Proceeding s Docke t AGC-610 , Roo m92 5 Federa l Aviatio n Administratio n 80 0 Independenc e Avenue , S.W . Washington , D.C . 2059 1 FA A DOCKE T NO . 16-09-0 7 RE : DESER T WING S JE T CENTER , LL C SPIRI T FLIGH T INC . db aWING S O FTH E CASCADE S V . CIT Y O FREDMOND , OREGO N Dea r Offic e o f th e Chie f Counsel : COMPLAINAN T RESPONDEN T

Enclose di s on e execute dorigina l an dthre e copie s o f th e Desert

Wing s Je t

Center , LLC , Spiri t Fligh t Inc . db aWing s o f

th e Cascade s respons e t o th e FA A Reques t for Additiona l Informatio n for filing i n th e above-reference dproceedings . On e cop y ha s bee n enclose dunboun dan d withou t tab s a s required . 1 loo k forwardt o you r

determinatio n an da mavailabl e for question s at

541-390-3980 . Sincerely , ^M a. Presidenvfoi dOwne r Desert Wing s Je t

Cente r LL C Spiri t

Fligh t Inc . db aWing s o f

th e Cascade s Cc : Georg e Endicott , Mayo r Stev e Bryant , Attorne y1 REQUES T FO RADDITIONA LINFORMATIO N AN D 2 NOTIC E O FEXTENSIO N O FTIM E 3 4 Pursuan t

t o 1 4 CFR § 16.29(b)(1) , th e Federa l Aviatio n Administratio n (FAA ) ha s 5 determine dtha t th e pleading s i n thi s matte r nee dt o b e supplemente db y limited , 6 additiona l informatio n fro meac hparty . Eac hpart y i s requeste dt o full y answe r th e 7 respectivel y designate dfollowin g question s an dsubmi t th e requeste ddocument s 8 withi n 3 0 day s fro mth e dat e o f receipt . 9 1 0 Additiona l Informatio n Neede dfro man dQuestion s fo r th e Complainant : 1 1 1 . Copie s o f

th e complainant' s origina l letter s o f denia l o f credi t fro mth e thre e majo r 1 2 lendin g bank s i n th e are aindicatin g tha t fundin g i s no t

availabl e withou t

arecorde d 1 3 lease . 1 4 A s previousl y state di n th e origina l formal Part 1 6 Complain t

o n pag e 4 6 lin e 27-29 , an dpag e 4 7 1 5 line s 1-2 , th e followin g i s agai n repeated . "Withou t asurvey , alegal description , an dnotarize d 1 6 signature s fro mth e city , I amunabl e t o recor dth e documen t withth e Deschute s County Clerk . 1 7 Withou t

th e ability t o recor dth e lease , I amunabl e t o secur e fundin g fromany lendin g agenc y I 1 8 hav e contacted . Thi s ha s als o bee n backe du p th e leadin g Title Companie s i n ou r area . 1 9 I wil l provid e names an dtelephon e number s upo n you r request. " 2 0 2 1 Th e problem s create db y th e Responden t i n makin g th e decisio n i n 200 8 o r 200 9 t o prohibi t 2 2 lease s fro mbein g recorde dwithth e Deschute s recorde r ar e two-fold . Firs t

o f all , i t create s th e 2 3 inability t o ge t

titl e insuranc e for

th e leas e property . Th e lac k o f titl e insuranc e i s the n th e issu e 2 4 that cause s th e lender s t o refus e t o mak e loans . 2 5 2 6 Further , th e boile r

plat e languag e include di n th e lease s calle dth e "leasehol dmortgag e 2 7 protectio n clause " ha s bee n include di n the mfor th e pas t severa l years . Thi s i s no t ane w ide ao r 2 8 ne w additio n that

someho w replace s th e recordin g o f th e lease s t o obtai n titl e insuranc e an dthe n1 funding . A s explaine db y bothth e bank s an dtitl e compan y official s 1 hav e spoke n with , unles s 2 th e leas e i s recorde dan dtitl e insuranc e i s available , n o lendin g wil l happe n - regardles s o f th e 3 Leasehol dMortgag e Protectio n clause . Leaseholder s wh o requir e conventiona l financing for 4 thei r project s stil l nee dt o recor dth e lease s i n orde r t o purchas e titl e insurance , an dthe n th e 5 lendin g can b e arrange dan dsecured . 6 Th e importanc e o f

reviewin g th e lease s for

titl e protectio n i s illustrate di n th e followin g exampl e 7 Concernin g Redmon dAir/K C Aer o an dthei r FB O leas e whic hi s physicall y locate dadjacentl y 8 withboundarie s touchin g o n th e Redmon dairport .

1 0 A s state di n th e origina l complain t an dsubstantiate di n DWJ C Exhibi t 11 , pag e 3 , ther e i s 1 1 preferential an ddiscriminatory treatmen t regardin g recordin g lease s o n th e respondent' s airport . 1 2 Exhibi t

1 1 pag e 3 give s th e lis t

o f fifteen (15 ) recorde dlease s agreements , assignment s o f lease , 1 3 landlord' s consen t

t o lease , memorandum s o f lease , memorandu mo f

assignmen t

o f lease , leas e 1 4 addendum , memorandu mo f assignment , an dleas e record s recorde dat th e Redmon dairport

with 1 5 Deschute s County Official record s fi-om1/25/199 9 t o 7/14/2008 . 1 6 1 7 Redmon dAir

/ K C Aero , my competitor , i s th e recipien t o f Deschute s county recording s includ e 1 8 several leas e records , memorandum s o f leas e an dleas e agreement s i n 1999 , 2000,200 5 an d 1 9 2008 . 2 0 2 1 I t appear s th e leas e recorde do n 8/21/200 0 withDeschute s County Recorde r a s 2000-3338 4 2 2 Leas e Records , writte n b y th e responden t for Redmon dAir/K C Aero,"wen t missin g fromth e 2 3 City o f

Redmon dfiles." Thi s i s state di n th e origina l DWJ C complain t Exhibi t 46 , pag e 2 . 2 4 However , i t

was "found " i n th e Deschute s county recorde r documents . It

i s adde dher e a s 2 5 Additio n 1,2-/1 0 page s 1-9 . Als o include di s th e Redmon dAi r KC/Aer o Memorandu mo f 2 6 Leas e 2005-5217 0 recorde d08/09/200 5 (Origina l DWJ C Exhibi t 3 8 page s 19,20,21. )1 It

appear s ther e i s adefinit e nee dfor verifyin g an dclarifyin g th e leas e property a s cautione db y 2 th e City o f

Redmon dManager . Suggestion s for security o f

th e leas e for

Redmon dAir/K C Aer o 3 include s aclaus e personall y signe db y Jo e Hannan , city Manage r whic hrequire s th e perso n 4 signin g th e leas e an dacquirin g th e fe e titl e t o th e propert y t o chec k wit hth e appropriat e cit

y o r 5 county plannin g departmen t t o verif y approve duse s an dt o determin e an y limit s o n lawsuit s 6 agains t

farmin g o r

fores t practice s a s define di n OR S 30.930 . Thi s i s onc e agai n include di n a 7 Memorandu mo f

leas e speciall y writte n a s aMemorandu mo f Leas e DWJ C Exhibi t

38 , page s 8 19-21 . Mr . Hannan' s cautio n appear s o n pag e 3 o f 9 o f Addition s 2/10 .

1 0 Th e lease s o f

Redmon dAi r

wer e recorded , sen t

t o atitl e compan y a s pe r th e stamp for

Amerititl e 1 1 whic hi s foun di n th e lowe r lef t come r o f pag e 2 o f 9 an dinitiale db y AE . Th e fundin g throug h 1 2 Columbi aRive r

Bank o f Redmon di s the n documente do n page s 2 an d6 o f 9 , indicatin g tha t 1 3 fundin g was availabl e an dprovided . Thi s contrac t i s signe db y al l parties . 1 4 1 5 Th e ability t o d o thes e things : recor dth e title , ge t titl e insurance , an dthenc e fundin g i s a 1 6 commo n practic e o n th e Redmon dAirport . However , th e abrup t chang e an dprohibition o f 1 7 recorde dlease s whic htoo k plac e i n lat e 200 8 o r

earl y 200 9 discriminate dagains t m e whil e 1 8 providin g ahug e advantag e for m y competitor . 1 9 2 0 It als o discriminate s agains t an y perso n wh o need s t o ge t financing for

aprojec t eithe r existin g o r 2 1 i n th e futur

e o f th e airport . Th e preferentia l treatmen t wil l no w punis hth e individua l o r smal l 2 2 compan y (mos t

o f America ) wh o need s t o ge t aloa n an dcan' t

pay cash . It

wil l mak e havin g a 2 3 busines s o n th e respondent' s airport availabl e onl y t o thos e wh o ar e affluent . It wil l destro y 2 4 competitio n an djob s at th e smal l busines s leve l for thos e wh o coul dhav e bui haprojec t before 2 5 th e chang e i n 2009 . It wil l basicall y destro y genera l aviatio n i n th e fiatur e o n th e Redmon d 2 6 Airport

for mos t participants . I t

totall y goe s agains t

th e grai n o f

th e gran t assurance s fo

r fai r 2 7 competition . 2 8Deser t

Wing s Je t

Cente r LL C Marc h26 , 201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 Thi s i s som e o f

th e preferentia l treatmen t for my competito r

whic hcontinue s t o thi s day . Whe n 2 thi s leas e wen t

missing , th e replacemen t adde dyear s t o th e leas e makin g i t atota l o f 5 5 a s 3 explaine di n th e origina l DWJ C complaint .

5 W e nee dt o remember , thes e ar e tw o propertie s o n th e Redmon dAirport adjacen t t o eac hothe r 6 woul dnee didentica l protectio n regardin g th e revie w o f th e titl e an dclaim s t o th e property . 7 8 Althoug haddendum s an dclause s wer e give n t o Redmon dAir' s leases , n o hel p was give n t o me . 9 I n fact , DWJ C was prohibite dfi'omreviewin g th e titl e throug hatitl e company . Title companie s 1 0 requir e arecorde dleas e t o d o so . I t i s an absolut e requiremen t a s I hav e bee n tol db y 1 1 managemen t

official s at

companie s suc ha s Amerititle . Severa l confirme dtha t arecorde dleas e 1 2 need s t o b e reviewed . Fo r th e titl e companies , i f

aleas e i s no t

recorded , i t

i s looke dupo n a s 1 3 non-existent . 1 4 1 5 Further , i f

th e leas e i s no t

researche dan drecorded , th e bank s ar e unprotected . I t i s wors e toda y 1 6 du e t o th e economi c challenge s i n thi s countr y an dban k scrutiny . I t

woul dappl y even mor e 1 7 today . Th

e leas e need s t o b e researche dan dshow n t o b e clea r o f lien s an dothe r

problem s fo r 1 8 th e tenan t

an dth e lender . 1 9 2 0 I woul das k

wh y thi s grou p an dFB O get s preferentia l treatmen t withth e responden t

whil e my 2 1 busines s receive dblock s an ddiscrimination ? I woul dals o further questio n my inability t o ge t a 2 2 recorde ddocumen t an dtitl e insurance . I t

woul dsee mthi s t o b e particularl y importan t i n ligh t o f 2 3 th e effort s b y th e responden t t o protec t

th e right s an dproperty o f Redmon dAir/K C Aer o witha 2 4 special claus e signe db y th e city manage r an dthe n recreate db y th e coimse l for th e Responden t 2 5 a s pe r

thei r stamp o n DWJ C Exhibi t 38 , page s 1 9 an d20 . 2 6.Deser t

Wing s Je t

Cente r LL C Marc h26 , 201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 Thi s proces s ha s bee n mplac e fo r at leas t pas t te n (10 ) years . I t

wa s th e standar dpolic y unti l 2 lat e i n th e year

of200 8 o r

earl y 2009 . However , suddenl y change dwithou t an y notice , publi c 3 comment , o r

an y forewarning . I t

ha s no t onl y affecte dme , but

other s wh o hav e trie dt o ge t titl e 4 insurance , and/o r

fundin g fo r

thei r project s for

conventiona l financin g fi-ombank s an dsimilar 5 lendin g agencies .

7 I woul das k

wh y thi s grou p an dFB O get s preferentia l treatmen t withth e responden t

whil e my 8 busines s receive dblock s an ddiscrimination ? I woul dals o further questio n my mability t o ge t a 9 recorde ddocumen t

an dtitl e insurance . I t

woul dsee mthi s t o b e particularl y importan t i n ligh t o f 1 0 th e effort s b y th e responden t t o protec t

th e right s an dproperty o f Redmon dAir/K C Aer o witha 1 1 special claus e signe db y th e city manage r an dthe n recreate db y th e counse l for th e Responden t 1 2 a s pe r

thei r stamp o n DWJ C Exhibi t 38 , page s 1 9 an d20 . 1 3 1 4 Tw o o f

th e bank s tha t

I hav e approache dfor

lendin g ar e i n th e lis t

below . The y ar e majo r 1 5 lender s i n ou r

are awh o hav e don e transaction s wit htenant s holdin g lease s o n th e Redmon d 1 6 Airport . Thei r

name s ar e foun di n th e recordin g o f th e lease s an dleas e paperwork for th e 1 7 responden t

o n th e Redmon dAirport . 1 8 Withi n thes e ar e th e following : 1 9 A . U.S . Ban k

- 2006-07197 9 - Kride r Constructio n Leas e recorde d12-4-2006 . A 2 0 portio n o f

thi s i s show n a s Attachmen t 1 . 2 1 B . Ban k

o f th e Cascade s 1999-03441 1 - 01/25/199 9 Boddu mLeas e 2 2 C . Columbi aRive r Ban k 1999-0398 3 K C Aer o (Redmon dAir ) Leas e 2 3 A s previousl y stated , eve n thoug hth e boile r plat e "leasehol dmortgag e protectio n clause " i s 2 4 include di n th e majority o f leases , i t i s no t enoug hfor

th e leas e holder s t o acquir e title insurance , 2 5 an dnot

enoug hfor

th e conventiona l lendin g institution s t o loan o n th e projects ., Deser t

Wing s Je t

Cente r LL C Marc h26,201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 Thes e lendin g institution s hav e nothin g i n writin g t o sho w thei r requiremen t

for titl e insurance . 2 Neithe r

d o th e titl e companies , but say the y requir e i t

i n th e writte n contrac t

for th e insurance . 3 Withou t

th e insurance , I canno t

sho w yo u th e contrac t

language . Without

th e insurance , I canno t 4 ge t conventiona l financing. I t appear s t o b e astandar dbankin g polic y i n ou r are atha t 5 commercia l loan s o f an y kin dwil l not

b e mad e withou t

titl e insurance . Withsom e banks , loan s 6 o f $150,00 0 for

an y kin do f

lending , commercia l o r

personal , requir e titl e insurance . Thes e 7 woul db e situations wher e th e property i s included . It i s eve n mor e imperativ e tha t titl e 8 insuranc e b e secure do n propert y o n a n airport tha t ca n onl y b e lease dan dneve r owned .

1 0 Som e o f

th e lease s recorde do n th e respondent' s airport hav e bee n funde db y th e following : 1 1 U.S . Ban k

2006-07197 9 - Kride r Constructio n recorde d12/4/200 6 1 2 Columbi aRive r Ban k 1999-03983

- K C Aero/Redmon dAi r recorde d1/27/199 9 1 3 Ban k

o f th e Cascade s 1999-034411-Boddu mrecordedOl/25/199 9 1 4 1 5 I worke dwithBank o f th e Cascade s at

lengtho n th e buildin g projec t whic hwa s planne di n 1 6 phases . I als o spok e withU.S . Bank . Coliraibi aRive r Ban k wa s experiencin g som e economi c 1 7 issue s an dwas not

consulted . 1 8 Withou t

arecorde dleas e an dtitl e insurance , ther e was n o nee dt o continu e wit hmy financing 1 9 efforts . I presente dth e boilerplat e Leasehol dMortgag e Protectio n pla n t o th e banks . I wa s tol d 2 0 i t woul dnot

substitut e for

titl e insuranc e i n th e norma l cours e o f lending . N o recorde dlease , n o 2 1 titl e insurance , n o lending . 2 2 Th e leas e th e city gav e m e i s als o stampe dwith : 2 3 NO T FO RRECORDIN GPURPOSE S 2 4 Accordin g t o th e surveyo r Rand y Pove y wh o ha s don e mos t o f th e survey s o n th e Redmon d 2 5 Airport

for th e pas t 1 5 years , i t

wa s afirst

tim e request . H e di dnot understan dth e reaso n unti l 1 2 6 tol dhi mi t

wa s t o kee p m e fi-ombuildin g my project . 7. . Deser t

Wing s Je t

Cente r LL C Marc h26,201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 I t too k th e Responden t

an dresponden t

counse l severa l month s t o draf t m y ne w lease . Durin g 2 tha t time , th e Responden t

an dresponden t

counse l change dapolic y i n plac e for mor e tha n a 3 decad e an dbega n prohibitin g th e recordin g o f airport leases . Thi s ha s destroye dmy ability t o 4 ge t financing i n larg e part

du e t o th e inability t o ge t titl e insurance . Th e footprin t I wa s give n 5 was no t

th e on e agree dt o whe n th e lawsui t wa s dropped . I t

wa s on e Ms . Novic k

wante dinstead . 6 7 I t i s interestin g too , tha t

tw o o f thes e ban k

financedlease s whic hwer e recorde dwit hth e county 8 ar e for

m y bigges t

competito r

o n th e Redmon dAirport - Redmon dAir . Onc e again , th e 9 competitio n ha s adiscriminatory advantag e o n th e airport throug hth e ability t o recor dthei r 1 0 lease , ge t

titl e insuranc e an dreceiv e conventiona l financing fhj mabank . 1 1 1 2 I n lie u o f

thei r writte n statement , my associate s at th e bank s hav e offere dt o discus s thi s with 1 3 you . I woul dbeliev e th e challeng e fo r writte n statement s o r

letter s o f denia l o f credi t i s liability 1 4 i n thi s cultur e o f

lawsuits . 1 5 Representative s fi'ombothBan k o f th e Cascade s an dU.S . Ban k ar e willin g t o tal k

t o you . 1 6 Ban k

o f th e Cascade s 1 7 Travi s Browning , Senio r Vic e Presiden t

an dth e Are aManage r 1 8 Redmon dOrego n Branc h 1 9 15 4 S WSixt hStree t Redmond , Orego n 9775 6 2 0 541-504-217 7 2 1 2 2 U . S . Ban k 2 3 Kath y Nielson , Regiona l Manager . Jo e Rygg , Commercia l Lendin g Manage r 2 4 55 0 Northwes t Frankli n Avenu e 2 5 Bend , Orego n 9770 1 2 6 541 ) 633-1240 . 2 7

8, Deser t

Wing s Je t

Cente r LL C Marc h26 , 201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 I supplie dbot hgroup s wit hacop y o f th e "leasehol dmortgag e protectio n clause " o f th e City o f 2 Redmon dan dMr . Bryant . On e grou p sen t th e claus e t o lega l wher e i t was reviewe dfor

mor e 3 tha n tw o weeks . No t wishin g t o pu t

th e answe r

i n writin g fo r

lega l reasons , the y gav e m e a 4 verbal answe r

statm g tha t

th e "leaseholde r

mortgag e protectio n clause " wa s at bes t confusin g 5 an dinsufficien t

for lending . I wa s tol dn o loan s woul db e mad e withou t arecorde dleas e whic h 6 woul dthe n provide dtitl e insurance . 7 Thi s can b e substantiate db y manager s at th e followin g location s wh o ar e als o unwillin g t o put 8 any informatio n int o writing . Contactin g on e o f th e followin g coul dverif y thi s requirement . 9 Amerititl e i s show n o n man y o f th e leas e document s for

th e Redmon dairport

includin g thos e for 1 0 Redmon dAir/K C Aer o tha t wer e ban k

funded . 1 1 Th e mai n titl e companie s i n ou r are aare: \ 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 Amerititl e

34 5 S E 3'^'* Stree t Bend , Orego n 9770 1 541-389-917 6 Firs t America n Titl e Insuranc e Compan y 14 1 N WGreenwoo dAvenu e Bend , Orego n 9770 2 541-382-420 1 2 3 However , thi s abrup t an dunwelcom e polic y chang e ha s not onl y create dhug e problem s for me , 2 4 bu t for other s lik e Be n Lindne r

wh o ha s don e man y hangar constructio n project s o n th e 2 5 Redmon dairport . A t leas t five o f thes e project s ar e show n i n DWJ C Exhibi t 11 , pag e 3 an d 2 6 occurre dfrom200 5 throug h2009 . 2 7 2 8 I n Decembe r

2008 , th e sudde n unannounce dpolic y chang e prohibitin g th e recordin g o f airport 2 9 lease s bega n t o tak e it s toll . I t wa s ahorribl e surpris e for Mr . Benjami n Lindner . A s h e ha d 3 0 don e at

leas t five time s ove r

th e previou s 1 0 years , h e wa s i n th e proces s o f sellin g ahangar

at, Deser t

Wing s Je t

Cente r LL C Marc h26 , 201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 th e Redmon dairport . 2 3 However , th e dea l bega n t o fal l apart whe n th e buye r

wante dt o purchas e titl e insuranc e a s par t 4 o f th e transaction . Title insuranc e coul dno t b e obtaine ddu e t o th e city o f Redmon dsuddenl y 5 decidin g t o prohibi t

th e recordin g o f

lease s o n th e airport . A s aresul t o f thi s decision , whic hwas 6 not aimounce dfor

publi c comment , n o titl e insuranc e coul db e obtained . Further , ha dth e buye r 7 neede dconventiona l financing , th e dea l woul dno t hav e occurre dat

all . Exhibi t

4 9 se e 8 signatur e pages . Exhibi t 3 7 se e signatur e pages . 9 1 0 A s state dearlier , titl e insuranc e coul dn o longe r b e purchase dbecaus e lease s o n th e Redmon d 1 1 airport

coul dn o longe r

b e recorded . Withou t

arecorde dlease , hi s purchase r coul dnot

ge t titl e 1 2 insurance . Eve n thoug hth e boile r plat e languag e foun di n Sectionl 2 Genera l Provision s B 1 3 Leasehol dMortgag e Protectio n - referre dt o b y Responden t a s "leasehol dmortgag e protectio n 1 4 agreement " wa s present , i t di dnot workin g a s asubstitut e for recordin g aleas e o n th e airport t o 1 5 obtai n titl e insuranc e an dcertainl y no t for obtainin g conventiona l financing from alendin g 1 6 institution . 1 7 1 8 Fortunatel y for

Mr . Linde r

hi s dea l wa s acas hdea l whic hneede dn o financing, however , th e 1 9 dea l wa s i n limb o for severa l month s becaus e th e buye r wante dtitl e insuranc e an dth e 2 0 city o f

Redmon drefuse dt o allo w th e lease s t o b e record . Th e "leasehol d 2 1 mortgag e protectio n agreement " di dnot appear t o b e worthth e pape r

i t i s writte n o n whe n 2 2 dealin g withatitle compan y an dthenc e an y conventiona l financial lendin g institution . 2 3 2 4 Mr . Bryant' s insinuation tha t th e inability t o ge t

financin g i s someho w aresul t o f bank s refusin g 1 0Deser t

Wing s Je t

Cente r LL C Marc h26 , 201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 t o deal withm e an dtha t i t i s someho w my persona l proble mdoe s not see mt o b e acredibl e 2 defens e o f

thi s indefensibl e ne w practic e o f discriminatio n o n th e Redmon dairport . 3 4 Repeate dclaim s tha t th e "leasehol dmortgag e protectio n agreement " replace s th e nee d 5 t o recor dthes e airport lease s i n orde r

t o ge t financing i s abald-face dfabrication . Thi s claus e 6 ha s bee n i n plac e i n th e lease s o n th e airport for years , yet , a s state dman y time s al l hav e foun di t 7 arequiremen t

t o recor dth e lease s t o ge t titi e insuranc e an dthenc e t o ge t conventiona l financing. 8 FURTHE R 1 0 Responden t

an drespondent' s attorne y obviousl y hav e n o evidenc e fromlender s indicatin g that 1 1 th e leasehol dmortgag e protection s provision s i n th e Airport leas e ar e acceptabl e t o support 1 2 leasehol dfinancin g o f tenant . 1 3 Attemptin g t o portra y th e attachmen t "Exhibi t 1, " a s alegitimat e us e o f a"Leasehol dMortgag e 1 4 Protectio n Agreement, " i s bothinsultin g t o all partie s involve dan dabsolutel y wrong . Th e 1 5 strateg y o f

twistin g an ite mimti l i t

appear s t o contai n som e truth , fall s short thi s time. 1 6 Exhibi t

1 i s th e attachmen t

o f a"Leasehol dMortgag e Protectio n Agreement " betwee n Mr . Gary 1 7 Robert s an dth e City o f Redmond . I

t shoul db e note dtha t

th e res t o f th e leas e "Exhibi t

1 " i s 1 8 missin g i n th e provide dExhibi t 1 , makin g thi s aquestionabl e exampl e at best . 1 9 2 0 B y usin g thi s example . Responden t attempt s t o conve y tha t

thi s i s som e kin do f

formal ban k 2 1 financing agreemen t similar t o what woul db e involve do r

acceptabl e i n aprojec t

wher e fundin g 2 2 woul db e require dfor ane w building , o r

alarg e amoun t

o f capita l woul db e neede dfrom a 2 3 conventiona l lendin g institution . Ther e i s n o similarity betwee n th e two . 2 4

1 1. . Deser t

Wing s Je t

Cente r LL C Marc h26 , 201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 I n truth , thi s agreemen t ha s nothin g t o d o withgettin g ban k financing from aformal lende r t o 2 purchas e ahangar

at th e Redmon dAirport . Thi s wa s mad e clear i n aconversatio n withMr . 3 Glei mErnst , th e party involve di n th e deal , wh o purchase dth e existin g hangar at th e airport . 4 Thi s wa s apersona l dea l betwee n Mr . Robert s an dMr . Emst . I t i n n o way involve dfundin g 5 from alender , define da s abank , o r froman y othe r

financial institution . Thi s hangar sal e was a 6 persona l dea l betwee n tw o partie s withthei r ow n persona l financing availabl e an dapossibl e 7 exchang e o f

assets . I t di dnot involv e o r

requir e an y formal conventiona l financing from a 8 lendin g institutio n o r ban k a s woul db e necessar y i n th e buildin g o f ahangar o r aprojec t lik e 9 min e - thos e withou t persona l financin g agreement s o r asset s t o exchange . 1 0 In th e history o f

thi s dealing , Mr . Ems t

explaine dtha t

th e Responden t

refuse dt o recor dth e leas e 1 1 for th e existin g hangar

Mr . Ems t

wishe dt o purchas e fromMr . Gary Roberts . Consequently , h e 1 2 was unabl e t o ge t

titl e insurance . A s h e explained , thi s woul dhav e eliminate dan y possibl e ban k 1 3 financing. However , tha t wa s no t necessary a s thi s was apersona l dea l betwee n Mr . Ems t an d 1 4 Mr . Robert s withapersona l financ e agreemen t tha t di dnot involv e an y kin do f

ban k financing 7 5 o r involvemen t

o f aformal lendin g institution . Mr . Ems t involve datitl e compan y simpl y t o 1 6 writ e u p th e transaction . Th e titl e company expresse dsurprise dt o findtha t th e responden t

n o 1 7 longe r

recorde dlease s a s the y ha ddon e i n th e past . Sinc e tha t was th e case , the y woul dn o 1 8 longe r

b e abl e t o provid e titi e insuranc e whic hwoul ddestro y an y chanc e o f ban k financing. 1 9 2 0 A s stated . Responden t an drespondent' s attorne y obviousl y hav e n o evidenc e fromlender s 2 1 indicatin g tha t

th e leaseholdmortgag e protection s provision s i n th e Airport leas e ar e acceptabl e 2 2 t o support

leasehol dfinancing o f

tenant . 2 3 2 4 Attempt s t o pas s thi s of f a s evidenc e o f

th e successfu l utilizatio n o f "leasehol dmortgag e 2 5 protectio n clauses " i n acas e lik e mine , i s outrigh t deceptio n I t

i s i n n o way similar

an di n n o 2 6 way addresse s th e abilit y t o receiv e financing from alendin g institutio n tha t i s require dfor

a

1 2Deser t

Wing s Je t

Cente r LL C Marc h26 , 201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 multi-millio n dollar

buildin g projec t

lik e mine . Furthermore , mos t peopl e ar e unabl e t o provid e 2 persona l finances for suc htransactions . Fortunatel y fo r Mr . Ems t

tha t wa s no t th e case . 4 I mus t

als o b e note dtha t

ther e ha s neve r

bee n areasonabl e answe r fo r th e sudde n prohibition o f 5 th e recordin g o f

lease s o n th e Redmon dAirport . Mr . Bryan t give s severa l excuse s for th e 6 change . 7 8 Mr . Bryan t

further states . I n term s o f

th e document s th e Ms . Sh u (Schu ) assert s hav e bee n 9 recorded. City staf

f i s lookin g mt o this . Exhibi t 11 , pag e 14 . I amawar e tha t aCity staf

f 1 0 membe r

di dnot understan dth e City' s recordin g polic y an dwa s allowin g leas e assignment s t o b e 1 1 recorded. 1 2 1 3 Th e Respondent' s attorne y Mr . Bryan t blame s som e undertraine dstaf f membe r for th e mi x up . 1 4 However , i n revie w o f every leas e tha t

ha s bee n recorde d- i t

i s th e City Manager

o r Mayo r 1 5 whos e notarize dsignatur e appear s o n al l o f thes e docimient . A revie w o f th e Attachmen t

1 1 6 clearl y show s thi s standar dpractice . Thi s i s n o accident . Exhibi t 4 9 se e signatur e pages . 1 7 1 8 Exhibi t

1 1 pagelO-17 . Bryant' s misrepresentatio n i s als o show n b y blamin g astaf f membe r for 1 9 th e leas e recording s an dshow s u p i n hi s assurance s t o Ms . Catherin e Lang , Actin g Associat e 2 0 Administrato r

for Airport s o f

hi s effort s t o "loo k

int o thi s matter. " Exhibi t 1 1 pag e 10 . Sinc e 2 1 i t ha s bee n mor e tha n ayear , wha t ha s Mr . Bryan t

"found. " Exhibi t

3 7 se e signatur e pages . 2 2 2 3 Mr . Bryan t

als o blame s th e cos t

o f change s i n th e lease s a s bein g "hom e b y the y city i n hi s lette r 2 4 o f explanatio n t o th e FAA . However , i n lookin g at DWJ C Exhibi t

37 , pag e 1 Zel l Quin n leas e 2 5 i t i s clearl y show n tha t

th e cos t o f suc hi s born e b y th e leaseholder an dno t th e city an di s writte n 2 6 int o th e lease s a s such . 1 3. . Deser t

Wing s Je t

Cente r LL C Marc h26 , 201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 Mr . Quin n was require dt o repay $815.8 0 t o th e cit y for hi s leas e change s an d$ 1,161.3 6 t o th e 2 city for

administrativ e an dlega l fees . Mr . Bryant' s fabricatio n o f thi s i n hi s lette r

t o Mr . Robert 3 o f th e Seattl e Airport

Distric t o f th e FA A i s trul y disingenuou s regardin g thi s issue . Exhibi t 1 1 4 pag e 12 . 5 6 H e further

states " Th e city include dthi s provisio n (leasehol dmortgag e protection ) t o facilitat e 7 th e tenant' s abilit y t o finance improvement s t o th e leasehold. " Th e cit y ha s successfull y use dan d 8 i s usin g thi s provisio n wit hlenders . Th e lender s I hav e talke dt o abou t th e leasehol dprotectio n 9 hav e bee n satisfie dwithit s terms. " Exhibi t 11 , pag e 14 . 1 0 I f tha t i s hill y th e case.. . .WH O AR E THEY ? 1 1 Mr . Be n Linde r

an dMr . Glen n Ems t

an dI woul dbe g t o differ withtha t statement . 1 2 Mr . Benjami n Lindne r ca n b e reache da t

541-350-9729 . 1 3 Mr . Glen n Ems t

ca n b e reache dat

95 1 -699-7171 . 1 4 1 5 2 . Pleas e detai l th e statu s o f th e respondent' s counsel' s communicatio n wit hth e 1 6 complainant' s lende r abou t th e leasehol dmortgag e protectio n clauses . 1 7 1 8 Ther e wer e conversation s withMr . Bryan t an dmy former

attomey , Mr . Marti n Hanse n regardin g 1 9 thi s issue . Ifthe y discusse dthis , I wa s neve r mad e awar e o f

it . I wa s mad e awar e o f

thi s letter . 2 0 Exhibi t

11 , pag e 2 . 2 1 I trie dt o communicat e withMr . Bryant , th e respondent' s counsel , directl y onc e Mr . Hanse n was 2 2 n o longe r

involved . Neve r

di dMr . Bryan t

as k wh o m y lender s were , o r attemp t t o communicat e 2 3 withthe mi n an y way . 2 4 1 4. Deser t

Wing s Je t

Cente r LL C Marc h26 , 201 0 Spiri t Flight , Inc . db aWing s o f th e Cascade s Par t 1 6 Complain t 1 3 . Fo r

th e Apri l 9,200 9 lease , pleas e provid e atimelin e schedul e fo r th e 2 completio n o f you r propose dprojec t

includin g necessar y Airpor t an dCit y review s 3 an dapproval s require dfo r yo u t o commenc e busines s o n th e Airport . 4 5 Thi s i s difficul t

t o answe r

sinc e n o clear

pathha s eve r

bee n provide dfo r

u s an dth e rule s hav e 6 change dan dstil l change , strictl y for us . Fo r normal leas e holder s o n th e Redmon dAirport thi s 7 coul dhav e bee n accomplishe di n muc hles s tha n ayear . However , fo r us , al l th e rule s ar e 8 different , s o it

i s difficu ht o answe r

wha t th e city o f

Redmon dwil l requir e next . 9 1 0 Th e correc t

footprin t fo r th e leas e "Exhibi t

D " Exhibi t

8 , pag e 26 , woul dnee dt o b e surveyed . 1 1 Thi s shoul donl y tak e 2- 3 week s bu t ha s bee n stalle db y th e city fo r month s an dha s neve r

bee n 1 2 complete dcorrectly . Estimat e - on e month . 1 3 1 4 Th e FA A Form7410- 1 for eac hpart o f th e projec t

wil l hav e t o b e repeate ddu e t o th e heigh t 1 5 cod e chang e implemente dwithou t discussio n b y th e city . Thi s ha s cause datota l redesig n o f th e 1 6 projec t

unles s th e FA A approva l heigh t i s honored . 1 7 1 8 Th e footprin t

fo r th e roadwil l als o hav e t o b e redone . Thes e usuall y tak e 2- 3 month s eac hafter 1 9 th e enginee r

prepare s them . The y ar e sen t fromth e airport

manager' s office , s o thi s coul db e 2 0 delaye dindefinitely . Th e FA A 7410- 1 studie s coul db e don e simultaneousl y bu t I woul ddoub t 2 1 tha t it coul db e accomplishe di n les s tha n 4 month s after th e leas e i s re-surveyed . 2 2 2 3 Du e t o heigh t

cod e change s don e withou t revie w o r

discussion , th e entir e projec t ha s t o b e 2 4 redesigned . Thi s coul dtak e 6- 7 months . 2 5 2 6 Crenerally aprojec t o n th e airport

suc ha s our s woul dno t

nee danythin g bu t

abuildin g permi t

t o 2 7 proceed . Sinc e w e ar e a n Enterpris e Zon e approve dbusiness , th e cos t o f permit s i s waived . 2 8 However , th e city i s requirin g u s t o d o a n extensiv e site plan desig n an drevie w eve n thoug h not 2 9 require db y cit

y code , bu t

onl y th e airport

manager' s whim . Wha t

shoul dtak e awee k

o r tw o 3 0 appear s t o b e estimate da t 3- 4 month s b y th e city . After that , th e projec t

constructio n wil l begi n 3 1 an dshoul dtak e 12-1 5 month s t o complete , provide dflindin g i s availabl e throug harecorde d 3 2 leas e an dtitl e insurance .ITNLE ^ OTHERWIS EREQQESTED , AL L TA X STATEMENT S SHAL LB ESEN T TO : K C AER O LL C 6898 8 HobnesRoriiii

i S'lStBtS y Orego n 9775 9 AFXXRSECOBHIN GRETUR N TO : K C AER O LL C 6898 8 Hdme s Road Sistcra , Orego n 9775 9 M£MORANMJ»LO FLEAS E KNO WAl i Boa r

B Y THES EraiSnOSr^llltnatice^n byvirtueofacertainagtecinentofleasedi^dJuly27,20(^yandittcqnsidw ^ underftatagccemen LTh e dr y O FREMIOND , QREOO ^ hneiiiHll n Landtoid , i^ree dt o leas e toKC AERO . LLC , fte rta l pnqwrt/describe das :

SeeExMbit A TH ETRO^RT Y DESCRIKE D I N THI S INSHtUMEN T MA Y NO T B E WITHI N A US E FROTECTIO N DISTHLC r

PROTECTIN GSTKnCTDRES . TH E PROFERT Y I S SUBJEC T T O LAN D US E LAW S AND REGULATIONS ; WHICH , I N FAR M O RFORES T ZONE S MA Y NO T AUTHORIZ ECONSTRnCTECK f O R SITIN GOFARESIDENC X AN D WmCHLDOTLAWSUnSAGAINSTFARMIN GO RFORES T PRACTICE S A S DEFINE D I N C»tS30.93 0 I N ALLZCWE & BEFC»ESIGNINGORACCEPTIN6THISlNSTRI]BIENT,TH E PERS(» f ACQUIRIN GFE ETinJ ET O TH EFRCHICaKT Y SHOUL D CmECKWIIHTH EAHRf^RIATEClT Y O RCOUNT Y PLANNIN GDEPARTMEN T T O VERIF Y APHKOVE D USE S AN D EXISTENC X O FFIR E PROTECTHM f

FO RSIRUCTURES . THI S INSTRUMEN T WnXNO T ALLOWISa e O FTH EPROPERTYDSSCRlBEDINTra5INSTRUMB« T I N VIOLATIQNOFAPPLICABLELANDUSEIAWSANDREGULATIONS LMBHMESIGNINGORACCEmN G THI S INSTRUMENT , TH EPERSO N ACQUnONGJE ETITL ET O TH EIfUMPCRT Y SBK>UL D CHEC K WI ^ TH EAPPROPRIAT EOriYORCOlINTYnLANNINGDEPARTMEN r T O VERIF Y APP^ ^ DETERBON EAN Y LIMn S O N LAWSUIT S AGAINS T FARMIN GC n FORES T PRACTICE S A S DEFINE D I N OR S 30.930 . DATE D Ha s 3 da y o f

Ai^ns ^ 2005 . CnrOFREDMCW D K C AERO , LL C TTMOflHY KEETO N MICHAE LPATTERSO N Cit y Manager Member Page-I-MomxandumofLeas e vKtut^aaaamknTCB.u t Kaaans r 

### Exhibit 38 , Pag e 1 9STATE O F(MtEGON ) Caaal y o f DtsABottes w<i*.^-« j P«soi«Ilyai.!*««dl«fi««flas^.day^i^^20(W.te«^ ^ of Redniood . an

dackiw.ded8p dtetie i s snflwMB dI D sign o ^ instnonea t i s M s an dtb e CSt ^ tfRgdinoqa*STOlmilHiy ac t an ddeed . PATKXCX A i UEVMAS m j 

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# VOL : 200 0 PAGE : 3338 4

RECORDE D DOCUMEN T STAT E O FOREGO N COUNT Y O FDESCHUTE S 

# I I I *2000-333g 4 * VoI-Pl« e PrinlEd

- 08/21/aX) 0 1 1 44:4 2 

# D O NO T REMOV E Tffl S CERTIFICAT E (Thi s certificat e constitute s apart o f th e origiiial instrumen t

i n accordanc e with OR S 205.180(2) . Remova l o f thi s certificate ma y invalidat e thi s certificat e an daffec t tiie admissibility o f

th e origina l instrumen t

int o evidenc e i n an y legal proceeding. ) 

# I hereb y certif

y tha t th e attache dinstrumen

t wa s receive d andduly recorde di n Deschute s Count y records : DAT E AN D TIME : Aug . 21,2000 ; 11:3 5 a.m . RECEIP T NO : 2492 7 DOCUMEN

T TYPE : Leas e Record s FE E PAID : $66.0 0 NUMBE RO FPAGES : 8 MAR Y SU E PENHOLLO

W DESCHUTES COUNT

Y CLER K

### (Jt ^ /

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# :2m^^SS9(/^/ .llwhuKj. . .Oi.-cuun_3iZIJ6_ l.nssui s Nniii o QIK I Adtbas s K._C . Acrx) , LLC . IM n -SL . Sainji. i Avg ^ LoKsc o Noin o nn d Addios s / Atlc i nc!r.(>K>iti(| . icliir n l o (Name , Addross . Zl|)) : •"i f 

### sursi ) .Uo t liri i KI , Jhx^oaUJZZDG - •MHfWfcrtti i Mi<rferlw « SIAIl i o rOREGON . CutMil yli t _ . ) s- ; (cciUl y(lin t lii o wilt\h ) iiKtMHiioii t war . iccclvo O lu riccw d oi l H m d.iyc» f "_" .'/» 0 .II I u'ckH'J c . M . nii d IPCOIIIIJ U h i inKiK/ionVvohnii R No . , o n ii.icj c

and/o ro s fee /

lit e / Insltiiincii t / iiilciofiln i /

icccplio n No . , Uccoid s o l sni d CiNHily . Witiios s m yIKIIM I (IIK I snn l o l Cotiiil ynllixcd . Utili l lociuesle d olliotwiso , soli d al l la xslalcineiil a to (Nnnio , Addiosn . Zl|i) : K_..C..Acro , U.C . . jrfjTOUL l blue s Jload . JiJAlccs,.Urcuou_9ZZ59 _ Nem o n y _ litl o

. Oo()iil y

MEMORANDUM O FLEAS E KNO WALLB Y THES E PRESENT S THA T o n Februar y 1,199 3 Cit

y o f Redmond , a s lessor s andJerr

y J . Bodduman dMar

y Ann R . Boddum , (hereinafter referre dl o a s "Boddum" ) a s lesses s (s ) mad e an dentere dint o acertai n lease , wherei n th e lesso r agree dt o leas e t o di e lessee(s) , andth e lessee(s ) agree dt o leas e fro mth e lessor(s) , th e followin g describe dreal propert y i n Deschute s County , Stat e o f Oregon , to-wit : Se e attache dExliibi t

"A " pag e 1 and2 fo

r property description . O n Januar y 21,199 9 K.C . Aero , LLC , an dTimothy A . Keeton , personally , Rober t L . Riemenschneider , personally , Arlan dT . Keeton , personall y andE dGilmore , peisonall y assume dth e Boddum s liabilit y anddut y l o perfor mal l o f th e term s andcondition s o f th e leas e an dth e assumptio n o f

sai dleas e andconsent

wa s recorde di n E>eschutes Count y records on 1/27/9 9 a t 1:1 7 PM under

receip t #134 2 document

type . Leas e Record s alon g wit ha n Indemnificatio n an dGuarante e Agreement date d2/21/9 9 andrecorde d1/27/9 9 at 1:1 7 P M in Deschute s Count

y Record s under

receip t #134 2 an ddocument

type , Agreement . Th e original leas e ter

mi s fo r te n (10 ) year s fromFebruar y 1,199 3 unti l Januar

y 31 , 2003 , together

wit hth e optio n fo

r th e tenan t

t o hav e th e righ t

t o on e (1 ) te n (10 ) yea

r optio n perio dandon e (1 ) five (5 ) yea r optio n perio dfo

r th e leas e under

th e same term s an

dcondition s a s th e original leas e agreement . Unles s terminate db y mutua l consent o f th e lessor(s ) andlesscc(s ) o r other term s o f th e leas e are declare dt o b e i n default , tlii s leas e wil l remai n in effect unti l Januar

y 31,201 8 i f

al l optio n period s ar e exercised . Th e intent o f th e Cit y o f Redmon di s t o remov e th e unrecorde dleas e betwee n th e Cit y o f Redmond , a s lesso r

andAdvance dAviatio n Systems , a s lesse e a s disclose db y Assignment

o f Leas e date dApri l 20,1982 , recorde dDecember 1,198 9 i n Book

197 at Pag e 2487 , Deschute s Count y Records .

^ 

# w^fwra r

I S OREGO N AVENU E BO B 

# W ^

# ^^( » ' ^B^S^-

- p I N WITNES S WHEREOF , th e lessor(s ) execute dthi s memorandu mo n 3Uti* ^ 3 o 20D O . I f th e lesso r i s acorporation , i t

ha s cause dit s nam e t o b e signe dan dit s seal , i f any , affixedb y an office

r o r othe r perso n dul y authorize dt o d o s o b y orde r o f it s boar do f

directors .

THI S INSTRUMEKT WIL LNO T ALLO WUS E O FTH E PROPERT Y DESCRIBE D IN THI S INSTRUMEN T I N VIOLATIO N O S APHJCABL E LAN D US E LAW S AN D REG

ULGATIONS . BEFOR E SI<a4IN O O RACCEPTIN GTHI S INSTRUMENT . TH E PERSCM ACQUIRIN GFE E TTIL E T O TH E PROPERT Y SHOUL D CHEC K Wr mTH E APPRO

PRIAT E Crr Y O RCOUNT Y PLANNIN GDEPARTMEN T T O VERTF Y APPROVE D USE S AND T O DETERMIN E AN Y LIMTTS O N LAWSUTT S AGAINS T FARMIN G( WFORES T PRACTICE S A S DEFINE D I N OR S 30.930 . 

# :^F ^

STATE O FOREGON , County o f Og^ClmiTi U ) ss . Thi s instrumen t

wa s acknowledge dbefore m e o n , 2 0 , b y , Thi s instrumen t

wa s fwknowledge dbefor e m e o n \S\iN k So'f* ^ 20 ^ 

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^ a s flifa^Qf/ukOJt/i r 

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^^^H- ^ Publi c to r Orego n Notary Publi c for

Orego n M y commissio n expire s S'2 B , 2002

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n 22 , •rp_wn_shli2 1 5 .SajuiUx , BAJQSte . JJ t East , Willamotti e HerXclii\ri 7 "crtTy* ' j ol : "Redaona , Oregon , bein g mor a particularl ydescribe d a s \ follows ; \ Beginnin g a t a poin t fro mwhic h a 3 * Uras s Ca p markin g thcj" , northwes t corne r o £ sai(i,Se.cti.o n 2 2 _bear s Uprt h DO * 32 ' 55l" : Wes t a distanc e o t 3292.5 2 ifee c an a "fi-o mwhic h a 5/0 " Iron M ro d markin g th e Wes t one-quarte r corne r o f cai d Sectio n 22 : bear s Sout h 87 * H8 ' 18 " Wes t a distanc e o f 20'!3.2 2 feet ; thenc e Nort h 01 * 45 ' ll* * Eas t a distanc e o f 304.2 0 feet ; thenc e Kort h 88 * 14 ' 4 9 " Was t a distanc e o f 75.0 0 feet ; thenc e Wort h 01 ' 45 ' 11 " Eas t a distanc e o f 50.0 0 feet ; , thenc e Sout h 89 * 14 ' 49 " Eas t a distanc e o f 75.0 0 feel: ; : thenc e Wort h 01 * 45 ' 11 " Eas t a distanc e o ' 55,0 0 feet ; i thenc e Nort h 58 ' 04 ' 35 " West. a distanc e o f .52.0 5 feet ; 1 ••";. . thenc.e . Nort h .0, 1 • 4 5'..ll""East" Adistanc e of.'oo-.O O feet ; !

- thenc- e Sout h 58 * '04' ' 33 " East - a di'stahfc c o f 52;'o 5 tta^i. ; ; thenc e Nort h 01 * 45 ' 11 " Eas t a.di'staricf e o f 15.-0 0 feet ; thenc e Sout h 58 * 04 ' 35 " Eas t a distanc e o f 288.0 0 fee^ ; thenc e Sout h 31 * 55 ' 25 " Wes t a distanc e o f 423.3 3 faet: ; thenc e Nort h 87 ' 32 ' 23 " Wes t a distanc e o f 36.2 4 fee t t o th e Poin t o f Beginning , th e terminu s o f thi s description . SUBJEC T TO ; Al l casements , restrictions , an d rights-of-wa yof / recor d an d thos e comno n an d apparen t o n th e land .

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KXiiinr c "A " Pny u 2 Lir r A l TIMEO f

KtCORD/N a 

## g-^ - 

## SRECORDATIO N REQUESTE D BY :

COLUMBI ARIVE n BAN K 43 4 N.ST H STREE T P O BO X 62 0 nEOMOND,O R «776 e WHE N RECORDE D MAI L TO : COLUMBI ARIVE R BAN K 43 4 N . ST H STREE T P O BO X 620 nEUMON0.o n 9776 6 SEN D TAX NOTICE S TO : KC AERO , LL C 669S8IIOLME S ROA D SISTERS , o n 97769-000 0 

# €^etO'3JS^' ^

SPAC E ABOV E THI S LIN E I S FO R RECORDER' S US E ONL Y LANDLORD' S ESTOPPE L CERTIFICAT E THI S ESTOPPE L CERTIFICAT E I S DATE D JUN E 27 , 2000 ^ AMON G KG AERO . UU C (ratamc i to balo wa t -Grantor") , «»liea « addra u to 680B B HOLME S ROAD , SISTERS , O R OTTetf-OOOO ; COUMni ARIVE R BAN K(rafMva d to balo wa a -Umiar*) , whoa a addraa a l a 43 4 N . 6T H STREET , P O BO X 520 , REDMOND , O R 97766 ; an d CIT Y O F REDMON D (rafarra d to balo wa a "Landlord") , whos a addroa a l a 71 6 S W EVERGREEN , REDMOND , OREGO N 07766 . Granto ran d Landa rhav a aniera d Into , o rar a abou t to anta rInto , a n agraamaii l wherab yLende rha « acqulra d o r wil l acquir e a n Aasignman t to Lande ro n Qrantor' a laaaahol d interea t I n th e Propert ydeacrlbe d IMIOW . T o Induc e Lende rto exten d on e o rmor a loan a o rothe rflnancial acoommodatlon a t o Borrowe ragains t aud i securit yInteres t I n th e Propert y an d torothe rvaluabl e conslderaUon , wit h knowladg a tha t Landa rl a relyin g thereon , Landlor d an d Granto rhereb yagre e wit h Lende ra s follows ; TH E LEASE . Landlor d ha s lease d Ih o Propetl yl o Qranlo rpursuan t t o a leas e (Ih e "Lease" ) dalo d Fobruar yi , 1903 . Th o (oNowlii g Inloimatlo n I s a siiinniat yo f th e basi ctetm a an d oondlllon s o f th o Lease : Leas e date d Fobruar y1,108 3 belwoo n Ih o Cli yo f nsdinond , a Municipa l Corpoieiior i o l ll w Stal e o l Oregon , Lessor , ait d Jen yJ . BodcNm i an d Mai yAn n R . Boddum , Tenant . O n Jaiiuai y2i , IB9 9 KC . Aero , LLC , Timolh yA . Keeion , porsonally , f^obor

t L . Riemenschneider , poraonaHy , Aitan d T . Keeton , peraonal yan d E d GImore , poiaonall yassume d Ui e Boddun vUablhl yan d dul yl o perfor m a

H o f th e term s an d oondlllon s o f tli e loas e an d th e assumptio n o f sai d leas e an d consen t was tac9rde d i n Descluilo s CountyHocord s o n 1/27/0 0 at 1:1 7 P M unde rreceip t numbe r134 2 documen t typo , Leas e record s alon g wit h a n indomnincBlio n an d Quaranio o Agreetnen I date d 2/21/9 9 an d recorde d 1/27/9 9 a t 1:1 7 P M I n Desctrute s Count yRecord s undo rreceip t numbe r134 2 an d docunion i type , Agioonwnl. . REA L PROPERTY DESCRIPTION . Tli o Leas e cover s th e loitowln g describe d rea l property , togetlio rwitl i al l inprovemont s liieroo n (lii o "Rea l Property" ) locate d I n DESCHUTE S County . Stat e o f Oregon :

SE E ATTACHE D EXHIBI T "A " PAGE S 1 an d 2 Tli e Rea l Proport yo rit s addres s I s commonl yIcnow n a s 70 5 S E SALMO N AVE. , REDMOND , O R 07756-0000 . ESTOPPEL . Landlor d an d Granto rlioreb yJointl yan d severaifyroprosen t an d warran t t o Lendn rtiiat : (a ) Leas e I n EHac L Tli e Leas e (I ) ha s bee n dul yexecute d en d aocepto d b yLandlor d an d Qranlor , (li ) I s I n lul l forc e ait d elleci , an d (iH ) ha s not boo n modilio d o rchanged , elliie ri n wiltin g o roraily , excep t a s reflecte d I n th e cop yo l lir e Leas e provide d t o Lender . (b ) N o Oefaul L A s o l th e dat e o f thi s Certilicale , 0 ) al l condition s an d obligation s t o b e performe d b yeillro rLandlor d o rGranto runde rtli e Loaso , t o th e dat e tiereof , hav e bee n salisfled : (H ) ttier e exist s n o breach , default , o reven t o rconditio n which , tir o givirt g o f nolic o o rth o passag e o f lime , o rboth , woul d constitut e suc h a breac h o rdefaul t unde rth e Lease ; an d (III ) ther e ar e n o existin g claims , defenso s o rolteol s agains t ol>llgalion 8 o f eiliio i Landlor d o rGranto runde rth e Lease , Includin g an yagains t rent s du e o rt o becom e du o unde rtii e term s o f lit e Lease . (c ) Entir e Agreemen t Tli o Leas e conslrtule s tli e entli e agreemen t betwee n Landlor d an d Gianto i wit h respec t t o th e Leas e o f Ih o Proporty . (d ) N o Prepai d Ren t N o deposit s o rprepayment s o l ren t hav e bee n mad e I n connectio n wtl h th e Lease , excep t a s mayb o descrlbo d abov e I n tli e summar

ydescriptio n o f tli e tjeasa . AGREEMENTS . Liindior d an d Granto rtierob yjointl yan d aeveraN yagre e wit h Lende rthat , dinin g al l sucl i time s a s Londe rI s th o bonotelar yo l th e securityInteres t i n tli e Propert ydescribe d alx>ve : (a ) Modification , Tannlnalto n an d Canooltotton . Landtor d an d Granto rwf f no t oonson i t o an ymodNcaHon , tormlnallo n o rcancaHatia n o l th e ]^^(jg|ff|jf^p\<||}f[f]^i;^f|f^<^tfi^ ^ Lende rvril l no t unreasonabl yhol d It s consen t t o an yiiDdlficatio n o f th e (b ) Notlo a o l Dofluitt . Landlor d w M nofli yLende rI n waWn g ooncurrenll ywM t an ynotic e give n t o Granto ro l an ybread i o rdefaul t o n lli e part o l Granto runde rIh e Lease , an d Landhir d agree a tha i Lende raha l hav e Ih a righ t (bu t no t lli e obligMion ) l o cur e an ybreac h o rdefaul t specHlad J o suc h notic e withi n Ih e tim e period s se t lort h belo wan d Landtof d wl l no t declar e a defau N o l th e Lease , I f Londe rcure s suc h dofau N withlnt i i tee n (15 ) day a from an d afte raxpiraMo n o l Ih e Ome perio d proyldM l i n th e Leas e forIh e cur e thereo f b yGrantor , provided , howovor , ttia t itaiieh.del i caiino l wH h dMgenc e b e cure d b yLende rwHhi n auc h T<,tt$ ^ da yperiod , lli e oommenoemen l o l actio n b yLende rwHM n suchT I datypotio d t o remed ylit e sam e aha l b e deeme d aulOden l a o lon g a a Lende rpursue s suc h cui e wit h dMgence . 

## '.Tl'fe )

Alli rncoitfki Knw i v AmriW i I S OREQO N AVENUE , ee n ^ - ^ \'06-27-200 0

Loa n N o ESTOPPE L CERTIFICAT E (Continued ) 

# c^^of ' ^ J 3itfi^ i MISCELLANEOU S PROVISIONS . Thi s CertHlcat e aha l exlan d to an d bin d th e respectiv e heirs , persona l rapresamaHvea , successor s an d assign s o f th e partie s to thi s CertHtoato . TM a Cerii6csi e aha H b e governe d b yan d consinn d i n accordanc e wW i th e law s o f th e Stal e o l Oregon . I f i.andior d l a othe rtha n a n IndMduai , an yagen t o rothe rperso n sNaouIn g thi s CerMcal B o n beha R o f Landtor d repreoeni s an d wananl a t o Lende rtha t h e o rsh e ha s fu l povra ran d aulhorll yto eiNecut o thi s CerMcal a o n Landtord' a behal L Lende raha H no t b e deeme d to hav e waive d an yrighl s unde rthi s Certilical e unles s suc h waive ri a i n wrWn g an d signe d b yLender . N o dela yo romiaslo n o n Ih e part o f Lende rI n exercisin g an yrigh t sfia l operat e a s a waive ro l suc h right o ran yothe rright A waive rb yLande ro l a provWo n o l M s Certtlcal e sha l no t oonstltul B a waive ro f o rprafudlc e Ijsnder' s right otherwis e to deman d afetc t compaanc e wM h tha t prc^Mo n o ran yothe rprovlston . GRANTO R AN D LANDLOR D EAC H ACKNOWLEDG E HAVIN O REA D AL L TH E PROVISION S O F THI S LANDLORD' S ESTOPPE L CERTIFICATE . AN D EAC H AGREE S T O IT S TERMS . THI S CERTIFKAT E 1 8 DATE D JUN E 27.2000 . GRANTOR : K C AERO . LL C f i ' I * rli M f ' I >' ' •••••ii'i' ' i;, i ii'l' ' 1. 1 • 1 1 1 11 "

LANDLORD : LENDER : COLUMBI A 

### ^AU/f w UMITE D LIABILIT Y COMPAN Y ACKNOWLEDGMEN T STAT E O F Q<rgy>V~ > COUNT Y O F Oflfilixi^ ^ J )S S J OFIHCIALSCAL KEDILHA U NOTAR YPUBLIC-OREOO N COMUI88tONNO.31S0 M inrcotwitt|oiiExnRE6AUoa,»e 2

. ^ «—w*^——wimmTaaiii-BgassiB ? O n thi s Z^ ' da yo f \J\JIVU L , 2 0 (R g . befor e me , th e undersigne d Notar yPubic , personal yappeare d TIMOTtt Y A . KEETOlOtomba ro f KC AEROTLLC ; E D QlLMORE . MarnKTo f K0 AERO , LLC ; AMIAN D T . KEETON , Memb wo f K0 AERO , LLC ; an d ROBER T L RIEMENSCHNEIDER , M«n4i wo f KC AERO , LLJC , an d know n to m e to b e member s o rdeslgnato d igeni s o l th e kmile d fiabiiilyconipan y tha t execute d th e Estoppo l Ceiliflcat e an d acknmMadga d th e CeiWcat o to li e th e free an d voluntar yac t an d dee d o f th e Imite d HabU ycompany , by authorit yo f slatuto . It s arUde a o l organizatio n o rtts operirtin g agreement , lo rth e use s an d purpose s therei n menSoned , an d o n oat h state d tha t the yar e I an d I n lac t execute d th e CerlHicat o o n behal f o f th e kmMe d labm ycompany . n thi s 2J v EETOlCMamba i authoriiadt o maoMKek i CertWcat o i Notar yPublt e I n an d torth e Slat o o f ^ia/CgyfW " Reaidin g at . M ycomnNaalo n expha a _ LANDLOR D ACKNOWLEDGMEN T STAT E O F 

# B Q ^ COUNT Y O F (jiOf^Juchj ^ J J OffiCIALaeM . HBOILNA U i8!g>IEXPWBAUflM.Klfl> > O n thi s da ybefor e me , th e undersigned Notar yPubRc . peraonaR

yappearedVIT Y O F REDMOND , t o m e icnow n to b e th e IndNldua l describe d I n an d wl wexecute d th e EstopfM l CenMlcate , an d acfcnov^edge d tha i h e o rah a signe d th e CertfxMt e a s M s o rhe rfree an d vtduntar yac t an d deed , fo rth e use s an d purpose s therei n mentioned . Give n unde rm yhan d m d <||ll9 M ••• ' 

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