1998-311 O r ANCENO
PROVID~G FOR ~ EFFECTWE DATE
~E~AS, ee~mn real prope~y upon the Denton Mume~pal A~o~ was le~ed to
Texas A~r Center, Ine, a Texas Co.oration, by ~ A~o~ Lease A~eement for FBO Aetlwty
effective August 30, 1988 ~d ~ended on June 7, 1994
~E~AS, ~e C~ty of Denton ~d the lessee desire to ~end the le~e agreement
agam, ~d
~E~AS, the A~o~ Adwsow Bo~d for ~e C~ty of Denton has recommended
approval of the Second ~en~ent, NOW, THE~FO~,
THE CO~CIL OF THE CITY OF DENTON HE.BY O~S
SECTION I That the attached Second ~endment to A~o~ Le~e Agreement for FBO
Act~wty be~een ~e C~ty of Denton ~d Tex~ Air Center, Inc ~s approved
~ That the C~ty M~ager ~s authorized to execute the attached lease
~en~ent on beh~f of the C~ty ~d the C~ty Secreta~ ~s d~rected to affix th~s or&n~ce w~th
the executed lease ~en~ent to the Ax~o~ Lease Agreement for FBO Act~wty effecOve
August 30, 1988, ~nscnb~ng on the original agreement the fact ~t has been ~ended ~d the
effective date ofth~s second ~en~ent
SECTION III That th~s ordinate shall become effective ~mmedmtely upon ~ts p~sage
~d approval
PASSED A~ ~PROVED tNs ~e , day of ,1998
JAC~ILLER, MAYOR
ATTEST*
JE~IFER WALTERS, CITY SEC~T~Y
HE~ERT L PROUTY, CITY ATTO~EY
SECOND AMENDMENT TO AIRPORT LEASE AGREEMENT FOR
FIXED BASE OPERATING ACTIVITY BETWEEN
CITY OF DENTON AND TEXAS AIR CENTER, INC
STATE OF TEXAS §
COUNTY OF DENTON §
WHEREAS, the Second Amendment to Airport Lease Agreement For Fixed Base
Operating, (FBO) Activity ("Amendment") is entered into by and between the City of Denton
("Lessor") and Texas Air Center, Inc (formerly Air Denton, Inc ) ("Lessee")
WHEREAS, on or about August 30, 1988, a lease agreement for FBO Activity ("Atrport
Lease") by and between the Lessor and Lessee became effective, and
WHEREAS, Lessee and Lessor amended the Atrport Lease on June 7, 1994, and destre to
amend the Atrport Lease again m order to ewdence a Letter of Understandtng between Lessor
and Lesse~ and Provident Bank, and
WHEREAS, this Second Amendment ts necessary tn order for Lessee to obtmn financing
to construct certmn tmprovements to Lessor's Atrport
NOW, THEREFORE, m conslderatton of the mutual promises and agreements contmned
in thxs Amendment, including the recttals set forth above, the parties agree as follows
1 Artmle II, Sectton E of the 3arport Lease relating to the "Rights of Mortgagee" is
hereby amended by repealing the last sentence of Sectmn E and ~n lieu thereof addxng the
terms and condlttons set forth m the Letter of Understandmg ~dentified as Exhlbtt "A",
whmh is attached hereto and made a part hereof for all purposes
2 This Second Amendment is mtended to amend the prowslons of the Airport Lease
and the First Amendment only to the extent expressly set forth above All of the terms,
covenants, provtstons, and conditions set forth in the Atrport Lease and First Amendment
are ratified and confirmed except as expressly modified by thxs Second Amendment
This Agreement shall be b~ndmg upon and shall inure to the benefit of the respective
successors and asstgns of Lessor and Lessee
IN WITNESS WHEREOF, the part,es have executed this Second Amendment as of the
~ day of t~~x_ , 1998
Page 1 of 2
CITY OF DENTON, LESSOR
CITY M~tNAGL~R
ATTEST
JENNIFER W~TERS, CITY SEC~T~Y
API~OVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
TEXAS AIR CENTER, INC, LESSEE
'PRESIDENT
THE STATE OF TEXAS §
COUNTY OF DENTON §
This instrument was acknowledged before me on this the ,Z4]~t day
1998 by James W Huff, Jr
~'[,..,~*1 NOTARY PUBLIC t
~,~]~[fl~ STATE OF TEXAS ~
~}'~;/~ ¢~m ~ O, 09 2001 , Notary ~1~,c, S~'ate of Texas
~ ............. [ Commlsmon Expires ~ - ~-,g.t?~ /
Page 2 of 2
EXHIBIT "A"
LETTER OF UNDERSTANDINO
~g~.--:.., 1998
~-~_.. ~a~
Prowdent Bank
2220 San lacinto
Denton, Texas 76205
R~ Lease Agreement for F~xed Base Operation Activity dated August 30, 1988,
as amended by Agreement dated June 7, 1994 (as emended, the reLease') by and
between the City of Denton (the "CRy"), as lessor, and AtrDenton, Inc, n/Ida
Texas Air Center, Itc ("Lessee"), as lessee
C~ntlemen
We understand that you, Provident Bank (the ~Lender") are proposing to mak~ a loan to
Lessce tn the amount not to exceed $200,000 00 (the "Loan") for the purpose of constructing
ccrtam mlprovements to the real estate that is the leased premises n~nder the I.~..ase (the "premlses')
and conneetirig tamway$ Notwithstanding anything to the contrary cuntmned m the Lease, this
letter shall constitute our agre.~ment and tmderstandmg as to the mterpr;~tat~on of the Lease m its
apphcation to your nights as Lender
I The City represents to the Lender that the Lease 15 not m default, that the City Is the
owner, m fee simple of the Premises, that the Lease described above is the complete lease
agrim~nt with regard to the Prenflses, that the Lease Is a valid and binding obhgation of the City,
and that the Lessee has the right to o~¢upy the Prexmses under the terms of the Lease
2 The City hereby coll~ents to the Loan to be secllred by a first lien on Lessee's leasehold
interest hq the P~mises and a first pmonty security interest m all personal property of Lessee on
the Premises (¢olleotively, such bens and security interest, the 'L~ens") The C~ty agrees to
subordinate its landlord's liens to the L~ens of th~ Lender
3 In the event that the C~ty clmms a default under the Lease subsequent to the date hereof,
the C~ty agrees to send a copy to Lender of any default not:cc that ~ reqmred to be sent or is sent
to Lessee
4 In the event that the Lease Is canceled pursuant to Article VI, VII or other provisions
of the Lease, the City agrees to allow the Lender a period of sixty (60) days following such
cancellation (upon the cundmon that the Lender pays the City during such period the monthly
rental that would be payable to tim C~ty had the Lease not been canceled), to either 0) assume the
rights and obligatiolts of lessee under tlg Lease, (ii) or, without becoming Imble under the Lease,
present to the C~ty a replacement lessee, acceptable to the City m its reasonable approval, for the
purpose of reimtatw, g the Lease with the replacement lessee or entenng rote a replacement lease
hav,ng the same terms for the balance of the lease term In any event, the Liens of the Lender
would conlin~e unim.~alred until forecloscd or releascd by Lender, so lon~ as monthly renials are
mnely paid
, 5 The exercise by Lender of its rights to foreclose any collateral interest in die Premises
or the, property of Lcssee shall not, {~self, be a default under the Lcase
6 To the extent of any confhct between the terms of di~ Lei'ter and the terms of thc
Lease, the C~ty asrees that as to the Lender, the terms of this Lcttcr shall be controlling
7 This letter xs given to assure the Lender as to thc mtcrprctat~on of certain provtswns
affectm/the interest of the Lender, nothing in flus Letter ts intended to confer or shall confer any
nght 0r benefit upon Lesscc or any third party ocher dian Lender
If the above accurately reflects our understanding and agreement, please mdwa~e by s~gnmg
below and returning a counterpart to die City
Smcerely,
C~ty of Denton, Texas
Asreed and Acccpmi
day of~lils~, 1998
' g~c-ro ~
Provident Bank
· ~'anny~mhell, Bran~-~ l~resldent
Receipt Acknowledted
day of~m~be~, 1998
Texas Att Cemer,
/~ James W 1~', Sr~lYi/e~dent
TOTi~L. F* 03