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2012-055 %(+$1$%$1$-"$%.1, 2012055 AdditionalFileExists AdditionalFileContainsRecordsNotPublic,AccordingtothePublicRecords Act Other %(+$2#§º«(´¯º¯§²¹ FirstAmendmenttoLeaseAgreementKOrdinanceNo.201404602/18/14JR c�r��va�rcE �c�. 2Q 12-t�5 � AN C)RD17`dA�°`10E AUTI-IQT�IZ1%�C 'I'�E CITY MANAC�I�, (JR 1�IS I]E�IGNE�, Ta EXECLJZ'E (JJN BE�A�� +�F TH� CI`I`Y QF I)EN"F'C)N AN ATRI'(�RT �,E�.SE AGRE�.M�NT BETWEEN TI�E Cl"I"4' C�F I�EI`d`T�l'�, `F'E�AS ANI� I�AVID �MI"F'H �`�� THE PROP:�RTY L�CATEI� AT �� L(3CI�-IEEI7, I�ET�T�I`1 MUN�CI�'AL AIltI'�I�T; AI�II� PRt7VIl�I�*]G AN EFFECTIV� DAT`�. WHEF�E�1S5 certait� t�e�l ��•c��erty ��arY t��e �7ey3ta�x IVli�nici�a�l Ai��ort is owti�cl l��T D�vid 5init�, (Les�ee}; �z�c�, �VHEREAS, t1�e �City of De��xc��x anci Le�see desire to e�ltes• it�tr� a gi•o�u�zcl Iease agi•�e��z�t for p1•Q��e�°ty u�� wl�ic�� L.esse�'s re�l p�•o��ei•t�l is loc��ecl� anci, WH�R�AS, �� City Cox�ncil ciee�n� it in tl�e pt�l�lic i��tet�est ta �p�rove tlxe �ease of �1.irpart ��i•oper�ty �s a�� Aii•��•t Lease A�t�e�tt�ent; NO'W, T�IE�iEF�RE, THE ��UNCIL C��' TI-�E �ITY O�' �ENTC)N H�REBY C71�DA�S� SE�TIO�I�I l. Tl3e Gity Ma�lager ar t�is ��sigtzee is l�ci•eby �utlla�ized tQ execute ait ,Air��c�t°t Le�se Agl•eei�letat betweei� t�xe City c�f Dei�toTj anci I��.vic� Si��itlt at the �}e��toxx ivfiu�lici�a�� Air��oi~t vvhict� is att�cll�d ta a��d nY�cie a�al�t c�f this or•dina�t�ce fat� a11 purpc�ses ai�d ta exe�•cise �11 ��igt�ts aaicl cttiaties �f th� Cit}J of De��toi� L�z�der tl�e Aia•�c,rt Le�se Ag�•eer��r�i. SECT��1'� �, Tl�is �i°c�i�lat�ce s��ll t�ecol�ie effective iriui��i�tely �z�a�t� its ��assag� a��ci ap��oval. � �r.'� �� ,.4- � , . �� hSSED AND AI�PR�VEII tl�is tf1� �_ ciay �� ,�``��; �,�;� �'E�"��, 2(112. � (��; � � � MARI;. A. �IJI�RC►Ut7�`HS, Ivi'1�,�C)R ATT��T"; �EI`�NIFER V�ALTERS, CITY �ECR�TARY f/ £ � � � _ �Y: ` '� � • � � � t � � ��.!� � "� �� -z� � �� .=� y�.�� <<�� AP�'R.i]VED �.S TC7 LEGE°�L FC�F�M; f1NITA BURC�ES�, CITY �TTtORI`�1E`Y �, , y �,,, � �,, B `x': ,'� �-' ,,f „ � �`�`�f ,�''� ,��%` , ��.- . � � � .. . �- " � �. \\codad\depa�tments\municipal airport\executed agreements\airport agreements\� ��1c�T1t S lease agreements\david smzth\�ease agmt 4862�n - 2012.dac 11IRPORT LEASE AGREEMENT COMMERCIAL OPERATOR 4862 LOCKHEED, DENTON AIltPORT Tl�is Lease Agreement {tl�� "Lease Agreen�ent" or "Agreen�eiit"} is �nade a��d executed to l�e effective as of the 1 St1i day of March , 2012 {the "Effective Date") at De�zto��, Texas, by and �eh�veen the City of Denton, Texas, a inunicipal cotporation, herein�fter z-efen�ed ta as "Lessor", and David Sn�itl� , hereinafter refen•ed to as "Lessee". � � WITNESSETH; WHEREAS, Lessor ilow owns, car�trols and operates the Denton Municipal Airport (the "Aiiport") in the City of Denton, County o#'De��toz�, State of Texas; and WHEREAS, Lessor and Lessee fi�•st ente�•ed into a certain Co�nmercial Operator Lease Agreement that becarne effective on the fi�•st day of Decen�her 1989 (the "Otiginal Lease") and as a result of �rarious amendments and n�odifications �nade tiiereto, the Original Lease expired the 315` day o� August 2010 and has been extel7ded by mutual agreement be�Jeen Lessor and Lessee on a nlontkZ-to-nlor�th basis; and WHEREAS, tlus Lease A�eement is intencied to become effeciive as pravided herein and unde�• ter�ns specified herein; NOW, THEREFORE, for and in co�isideration o f tl�e promises and the mutual covenants ca�ltai��ed i�7 this Ag�•eenient, the parties agree as follov��s: I. GENERAL CONDITIONS OF LEASE AGREEMENT A. PRINCIPLES OF OPERATIONS. The i�ight to conduct aeronautical a�id related activities far fiunishing s�rvices to tl�e public is gi•anted to Lessee subjeet to ihe terms he�•eof and to Lessee agreeing: To fi�nus�� said seivices an a fair, equal and not �njustly disei�;��inatory basis ta all usez�s �ie�-eaf; and 2, To charge fair, reasonable ar�.d not ui�justly discriminataiy prices far each i��ut ar seivice; provided, that Lessee �nay be aliowed to rziake reasanable and noildiscri�ninatory discounts, re�ates, or other sirnilar types of price reductions to volume purcl�asers. B. NON-DISCRIMINATION. Lessee, for itself, its pe�'sonal representatives, successoz-s, a��d assign�s, as a part of the consideration hereaf, does hereby cavenant a��d ag�-ee as a coveziant runr�ing witl� the land that: No persan o�i the grou��ds of race, religion, colar, sex, or national arigi�� sl�all be excl��ded fi•om participation i��, deni�d the bene#'iis of, or be atlaei�uise subjected to discriminatian in tl�e use of'said facilities; 2, In the con�t�-uction of any inlprove�nents on, over, or u�xdei• sucli Iand and the furnishing of services thereon, �io person on tl�e g�-ounds of race, religion, color, sex, or natio�ial oiigiaa sliall be excluded fro�ra participation in, deiued tl�e �en��ts of, or othe��ise be s��Ujected to disc�-ianinaiioz�; 3, Less�e sha11 use tlae prenuses in co�nplia�ce witi� all oiher rec��iren�ents impased by or pucsuant to Title 49, Code of Federal Regulations, Departmea�t of Transportation, Subtitle A, Office af the Secretary, Part 21, Nondisc�-iza�iana�ion u� Federally Assisted Progra�ns of the Depai-�nent of Ti•ansportatio�� - Effectuation of TitIe VI of the Ci�il Rights Act of 1964, as said Regulatioa�s may be amended. C. RIGHT QF INDNIDUALS TO MAIlVTAIN A]RCRAFT. It is cleaz•ly understoad �y Less�� tl�at z�o zight or privilege has been gz-anted in this Agreeme��t wlaicl� would operate to prevent any pe��son, fu�n or co�poration ope�-ating au•craft or� tl�e Airport fi•om perfo�7niz�g a�1y sen�ices on its own aircrafl witli its own employees (incl�dia�g, but not lin�ited to, ��laintena��ce and �•epair) tlfat it may cl�oase to perfoi�n. D. N�N-EXCLUSNE RIGHT. Zt is understood and ag�-eed that nothing herein cantai�ied shall be construed to g�-atat or a�tliorize tlie g�•anting of an exclusive rigl�t within the n�eaning o�Title 49 U.S.C. �4a103. E. PUBLIC AREA�. "Public Areas" ax "Pu�lic Area" is that pai-tian of the Airport, wl�ich is now o�• k�e�•eafter coiiside�•ed by the FAA, TxDOT, t11e City of Denion, or any other regulatory agency with oversig�at of tlie Aiiport to be tlie abligation and responsibility of the Lessor ta operate and nlaintain for the common use and benefi� of the general aviation public, Tk�e Aiiport Public A�-ea includes, witl�out limitation, any air na�c�igation faeility or structure designed and intended to serve the general public not specificaIly subject to an exclusi�e use agree�l7ent such as a lease agreement, license oz� pern�it. The Aizpart Public Areas include all iunways, iaxiways and ather cami�lon-use paved, graveled ar hxz•fed areas and their respeetir�e protection zones, safety areas ai�d/or object free areas; a�iy ot��er facility or faeilities at tlle Aiiport that are eligible for federai or state grants or s��Usidies awarded an the basis of their se��Tiz�g tile benefit of tile public (incl�ding runr�vays, taxiu�ays, vehicle �tz-eets a�Id alleys, }�ubiic ai�-craft ap�•ons/ta��nac, vehicle parking areas, artci cirainage struct�res); iieid ligtitii�g and associated beacan and lighted wind and lazadiiig direction indieato�•s; sec��i•ity, fire, a�id emei•gency m�dical faciiities; directional signs; and geriz��ete�• o�- z-esti�icted access �'ences. Generally, tl�e Public .Area is the total area a��d facilities of t��e Airport eaclusive of all noia-ptibiic airpa�-t facilities, a�1d may vary from tune to time dep�nding oi� ti�e total land con�ptising t�ie Ai�part a�id the cl�a�ige of lai�d use at the Ai�poi-t, Page 2 F. LESSQR AND TIIIRD PARTY RTGHTS. 1, Lessor reserves the �-ight to fi�i�ther deveIop ar impxove t�e Public Area of tl�e Aiipoa•t and a�ry otl�ei• �rapei�ty at the Aiiport ��at pa�•t of the L�ased Premises as it sees fit, rega�•dless of the desires or views of Lessee, and withoui interference or hindrance. 2. Lessor sl�all be obiigated to maintai�i a��d keep in gaod repair tl�e Public Area, tag�ther witii the �•ight to di��ect a��d confrol all activities of L�ssee i�� this rega�•d. Dui•ing time o:f war or ��ational e��aergency, Lessor shalt have ��e �7ght to lease tl�e Pubiic Area or any pa�-i tliereof ta tl�e Uiuted �tates Governniezat %r military or �zawal use, and, if such lease is executed� fltB �1'OV151�11S 0� �IllS ii�strument i�isofa�• as they are inconsistent with �ie pi•ovisions af t11e Lease Ag�•eement to t�ie Gavernn�ent, shall be suspended. 4. Lessor reserves the r�glat to take any action it considers necessary to protect the aerial appi•oaches of the Air}�oi-� against obsh�zctio��, together wifh t��e z7ght to p�'event Lessee from erecting, or permitting to be erected, auy building ar ather st��zcture on oz- adjacent to the Ai�port which, in the opiiuon of Lessor, wouid limit the �t�efi.�lness or safety of the Airpoi-t ar constit�te a hazard to airez•aft or to aircraft navigation, The Lessee Improvements as cun•ently co�itemplated in Sectinn II.D. do not violate this provision. 5. This Lease Agreement sl�all be s�bordinate to the p��ovisians af any exisiing or future agree�nent befween Lessor and the United 5tates ar agency thereof, relative to t11e opez�atzon or maintenanee of the Airpori. 6. Tius Leas� is givez� a�id ente�•ed iaito and subject to alI laws, ordinances, stafutes, t�ules, regulations, directii�es, pei�-nits, or standards of az�y govenzm�ntal authority, entity, ox agezicy (i��cluding, ��itl�out lirniiation, the City of Dentan, Texas, tlie State af Te�as, the Fede�'al A�viat�o�� Adn�inishation, and the Texas Department af T�-anspoi�tatio�i}, whether now in existence ar hereafte�• enacted, adopted or i�posed, and including, without iimitation, any and all grant agreements or grant assurances now existing or as l�e�eafter agreed to, adopted or impased. II. LEA�ED PREMISES Lesso�•, for at�d in conside�•atio�� o% and s�bjecfi to, the terms, covenants and conditions set �'ortli in t�iis Lease Agreenlent to be kept by Lessee, does hereby demise and lease unto Lessee, a�id Lessee does hereby lease froni L�sso�-, for the lease term descriUed in Ar#icle III, the following desc��ibed land situated in Denton Couniy, Texas: A. LAND. A tract of laild, bei��g approximately _2,oao square feet or 0.0459 acres, Page 3 as desc�-it�ed an Attacl�a�e�it "A", s�tcli attacl�neni beiiag incorporated herein by �•eference {tl�e "Leased Pr�mises"}. Toget��er with tl�e right of ingress and e�•ess to tlie Leased �z-en�ises and the right in ca��ino�l with otl�e�-s so suthorized of passage, upon the Public Az-ea, s��bject to reasonai�le regulations by t��e City af Denton and sucl� rights shall extend to Lessee's employees, passe�lgers, patrons a��d invitees. Faz• purposes oi tl�is Lease Agree�nent, tlie term "Leased Pl��]ISPiSFF sliall �x�ean all property located �vithin the metes aa�d bounds describ�d iz� Attachnle��t "A", incl�di�ig ali Lease Impraven�ents {as defi�ied �elowj conshucted o�• ass�med by the Lessee, but not including easements or prop�rty ow��ed ancl/ar controllec� by tlie Lessar, if a��y, as described on Attachn�ent "B", B. LESSEE ACCEPTS LEASED PREIv�SES. EXC:II'T AS FXPRESSLY PROVIDED IN THIS LEASE AGREF::MENT, LFSSOR MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESSED, STATUTORY, OR IMPLIED, INCLUDING, WITHOUT LIMITATION, A5 TO THE DESCRIPTION, TITLE, VALUE, QUALZTY, QUANTITY, PHYSICAL AND ENVIIZONMENTAL CONDITION OF THE LEASED PREM�SES AND/OR MATERIALS CONTAINED OR LOCATED IN, ON OR UNDER THE LEASED PREMISES, THE NATURE OF THE PAST OR HISTORTC USE OF THE LEASED PREMISES, AND/QR MERCHANTABILITY, SUITABILITY 4R FYTNESS �OR PURPOSE OF ANY OF THE LEASED PREMISES, ABSENCE OF LATENT DEFECTS AND COMPLTANCE WITH LAWS 1�ND REGULATIONS RELATED TO THE LEASED PREMISES, Lessee fii�-�he;• ackr�owledges tl�at, in executing and acce}�iing this Lease Agreernent, it has relied salely upon its independent evaluation and exa�a�ination of tl�e Leased P�•e��iises, and public records relating to the Leased Pren�ises a��d the independer�t evaluations az�d studies based tlierean. Lessor n�akes no wai�ranty oz- �-ep�•esentation as to tlie accnz�acy, completeness or �se�ulness of any information fi�rnished ta Lessee, if any, whether furnished hy Lessor or any third paxty. Lessor, its of�cers, enlplaye�s, elected officials and agents assume no liability for tl�e accuracy, coinpleteness or usefulness of any matez•ial fi�rnished by Lessor, if any, or any of its officers, enlplayees, elected afficials and/or agents, andlor any other person ar pat-iy, if a�iy a�id Lessee heret�y x-eleases sucl� parties fi•om and against a�1y claizns related to s�ict� inatters. Reliance an az�y �naterial so furnished shall not gi�e rise ta any cause, claim or action against Lessor, zts officers, emp�oyees, elected officials a�7d/or agents, and aiiy si�ch reliaa�ce shall be at Lessee's sole ris�. THE EXECUTION AND DELIVERY OF THIS LEASE AGREEMENT IS ON A "WHERE TS", "AS IS", AND "��VITH ALL FAULTS" BASIS, AND IS WITHOUT REPRESENTATION OR WARRIINTY, EXPRESSED, STATUTORY OR IMPLIED, INCLUDING, BUT W�THOUT LIMiTATION, AS TO TITLE, THE DESCRIl'TIQN, PHYSICAL AND ENV�RONMENTAL CONDITION OF THE LEASED PREMISES AND/OR MATERIALS CONTAINED OR LOCATED IN, 4N OR 1.1NllER THE LEASED PREMISES, THE NATURE O� THE PAST OR HISTORIC USE OF THE LEASED PREMISES, THE QUALITY, QUANTITY AND VALUE OF THE LEASED Page 4 PREMISES, FITNESS FOR PURPOSE, �TJITABILITY, MERCHANTABILITY, ABSENCE OF LATENT DEFECTS AND COMPLIANCE WITH LAWS AND REGULATTONS RELATED TO THE LEASED PREMISES. Lessee has satis�ed itsetf as to tl�e title, type, condition, quatity ar�d exte��t of tl�e property and praperty interests wl�ich can�pris� tlie Leased Pren�ises and tlie iiite��ests and rig�zts pravided by tl�is Lease Ag� eeil�ent. C. IMPRQVEMENTS PROVIDED BY LESSOR [NQNE: Ther•e will be rio in�pr�o��etnefats provided by Lesso�; except as may be set fortji rn Article II.F., "Access to �Itilities ".� D. IlVIPROVEMENTS PROVIDED BY LESSEE. Lessee has previousiy conshueted a building consish��g of appraximately 1428 sqiiare feet and otl�er improvements on the Leased Pren�ises and the applica�le portion of the Public .Area, if any, (the "Lease Improveme��ts") as described ii� Attachn�ent "B", at Lessee's sole cost, expense and risk. The tei�n "Lesse� Impro�veme�its" shaIl also include t��ose real }�roperty and stz-�ctural im�rovements having been made prior to the Effecti�e Date and no��v existiz�g o�� the Leased Premises, other t��an Lessor Improvements, if any. Lessee shall ow�� such Lessee �praveme��ts dm•ing tl�e Lease Tez7n, as provided in Artiele VIII. Except as pro�rided othe�n�vis� i�� this Agreement, L�ssee may not co�ist�-uct, locate, ii�stall, place or erect a��y other iinprovements upan the Leased Premises or tl�e Public Area. Lessee shall also consti-uct appropriate cul�erts or drair�age as requi�ed by City a�•di��ances, as well as othe�• improvements as determined necessaiy by Lessor or as required ]�y City o�•dinances �t� additioii, as a condition pz•ecedent to the effectiveness of this Lease Agreement, within 180 days after the Effective Date of tl�s Lease Agreement, I,essee s��all pravide impi•ovements to the existing b�ilda`ng o�i tl�e Leased premises to include a professionally perfoinled extei7or paint app�ication which matches adjacent han�gars, exterior panel repau if deteriaration is present, building seal �'epair to uiclude nevcr weather sh7pping, cau�king, izistalling pr�iab��icated panel gap �11ers at top and boitom of hangar panels, aroof z-epair io eli�ninate any water leakage and instali concre#e to cover all open area between the existing north building iine and Taxi�vay Lima. E. EASEMENTS. Lessor a�id Lessee by znutuai agreement may e�tablish, on the Leased Pr�inises, easements fo�• public access on roads and taxiways. Nothing contained herein shall be dee�ned to affect Lessoi•'s rights provided ii� Article X, below. F. UT�,i,ITIES. Lessee shail �e �•esponsible, at Lessee's sole cast and expense, #'ar abtai��ii�g alI utility connections at or foi• tl�e Leased Premises and Lessee shail pay ali charges for ��rater, elect�-icity, gas, sewe�•, telecammu�ucations or any other �itility co�u�ec#ioi�s, tap-in fees, impact fees, ot�ier fees ar expenses of auy kind a�ad for sei-vices fi�rnished to the Leas�d Pi•en�ises du�•ing the Tern� he�eof, Lessee agrees to eontact all utiiity seivice provide�-s and all other pa�-ties ihat may o��n or ctai�n to o�n ui3dergraund pipeli�i�s, Page 5 teleco��in�unicatians, caUle or ai�y othe�• struct€u�e or facility, prior to any excavatian or i�o�•ing on or unde�- tl�e Leas�d Premises. Lessor shall in i�o event 6e liabl� o�• respflnsible for any cessation oi• interruption in any such utiIity se��ices. TII. TERM A. TERM. The term o:F this Lease Agreement sl�all be far a period of twenty (2p) years, coinmencing on ihe 15th day of Ma�•ch , 2012 (the "Co�n�nence��ient Date") and coiltir�uing thl-ou� tl�e 14t1i day of March 2032, ��nless earlier Terminated under the pravisions of tl�e Lease Agreement (the "Lease Terni" ar "Ter��"). B. HOLDIl�G OVER, If Lessee holds over and contir�ues in possessioii o� the Leased Premis�s aftei• tile Term of tliis Lease Agreement expires; the holding over may be co�sidered by the Lessor, at the Lessor's option, a month to month tenancy binding Lessee to all terms and conditio�is as set forth herein ��vith the follovving �xception: The re��tal payinent due Lessor ��erein shall be ti�e a�ziount per znonth at the last full month af the Tern� prior to expiration of this Lease Agreement, payable on the #'ii°st day oi each mo�ath tlierea#�er, �itil tl�e tea�ancy is ierminated as provided herein. T11e lloIding o�er fie��ancy zi�ay �e te�-�3�inated at any time by Lessor or Lessee upon thit�ty (30j days ��vi7tte�� iaotice to the otllet� �arty, or may be ternvnaked by Lessor as a reanedy in accordance with tl�e tei�ns of this Lease, as elected by Lessor. N. PAYMENTS RENTALS ,AND FEES Lessee covenants and agrees #o pay Lessor, as considai�ation far this Lease A�•eemez�t, the foIlowiz�g paytnents, rentals and fees: A. LAND AND RENT.AL. Rental shall be due and payabie to Lessor in the sunl of twe�lty sevej� ce��ts ($ 0.� 27 } per gioss $qua�e foat, as deternuned and provided in Attachtnent "A", said sum being stipulated herein as five liu��dred forty dollars ($ 544.00 ) per yeax� (the "Original Rent"}, payable in two (Z) equal installments ui the sum ai two ��undred seventy dolla�•s ($270.00) each six (6) months, with the first payznent to be made upon executio�� of this Lease Agreement and tlie second payment due an or before September 1 S, 2012. Thereafter, payr��ents shall b� due on March 1 S and September 15 of eacl� year of tl�e Lease Agreeme�it. Lessee l�as th� aption ta pay annual rentals a��d fees iii w11oIe on or �efore ti�e I st day a� Marct� at the b�gii��ung oi the Lease Agreemen# and each ai�d every year af tl�is Lease Agreeme�zt Noh��itl�stai�ding tl�e foz-egoing, the annual �•entaI will be reduced �y the cui�•ent lease rate per sq�iare foot, as adjusted by the CPI-U ��efei•enced in Sec�ion IV.C., times the numbe�• of square feet comprisiiig aIl easeme��ts establislied in accordance with Section II.E. Tl�e �-ent pro��ided l�erein shall k�e net ret��x•n to Lessor, fi•ee of any loss, expense or cha�•ga, including without limitatia��, �nauiter�ance, construction, reconst�•uction, repairs, replace�nent, uisuraz�ce, taxes a�id assessz��ents. page 6 B. LESSOR IMPROVEMENTS RENTALS. None. There are no i.essor I�npravements on the Leased Preniises as of the Effective Date. C. PAYMENT PENALTY ADJLISTMENTS. Al1 pay��ients due Lessor from Lessee shall be n7ade to Lessor at the of#'ices of the Finance Depai-�nent of the City of Denton, Custon�er Service Division, 601 West Hickary, Dento�a, Texas, �uiless otherwise designaied in r�riting by the Lessar. If payments are nat a�eceived on or before the 15�t day �'ollowing the due date a� idei�tified i�� Section N, A of this lease Agreement, tiie lesser of the �naxiniuni amaunt allowed by law and a�ive percent (5%) penalty, wi11 be du� as of tlle 16`�` day. Ii payiments are nat received by the due date af the subsequent month, an additio�;a1 penalty of the lesser of the ma�cimurs� amount aliowed by law and on� percent (1 %) of the unpaid �'enta�/%e a�naunt will be due, Th�e lesser oi the niaxi�num amount allowed by law and one percent (1%) will be added on tl�e first of each subsequent month untii the unpaid rentaUfee payn�ent is miade. Noh�ithstanding anything her�in to the contrary, any sucl� peraalty shall be lianited to but not exceed t�ie maximum amount provided by law, if any The Oiiginal Rent far the Leased Premises sliall be readjusted at the e��d of each two (2} year period diiring the Lease T�rm, starting on the � Sth day of March 2014 and every two (2) years tliereafter, on the basis of the propartian that the tF�en current United States Consumer P�7ce Index for all urban consu�ners (CPI-TJ) for the Dallas-Fort Worth Bureau of Labar Statistics Uears to the November 2011 index, wliich was 209,283 (1982-84 = 100}. Each rental adjustment, if any, shall oecur fln the lst day of March, beginning 2014, and every second year thereafter on such date. The adjusir�ients in the yearly rent shall �e determ�neci by z��ultiplying the Qriginal Re��t by a fractio��, the numerator oFwhich is the ii�dex nurnber %r the last month prior to t�ie adjusn��ent, and the denon�inator of which is tl�e index number applicable at the executio�� af this Lease Agree�nent. If the product of this multiplication is greatez- than the Original Rent, Lessee shall pay this grea#er an�ount as the yeariy rent until tlae time oi tl�e ��ext rental adjustment as called for in this section. If the product of this muItiplication is iess than the Originai Rent there shali be no adjustment in t�e annual rent at that time, and Lessee shall pay tlae previous year's annual rent until ti�e time af the next rental adjustnne��t as called for in this sectian. In no event shall any rental adjustmeni call�d foi• in tl�is section resuit in an annual rent less tlian the previous year's annual rent. The adjustment shall be limited so that the aru�ual rental payment cieter�nined far any given two-year period shall not exceed the annual rental payment calculated for the previpus CPi adjustment hy more than twenty p�rc�nt (20%) percent. If the consumer price index for all ur�an con�unners (CPT-U} for the Dallas-Fort Worth geographical regioi�, as coinpiled by the U.S. Department of La�or, Bureau of Labor Statistics, is discontii��ied duri��g the Lease TeiYn, tl�e remau�ing rental adjusnnents cailed for iiz tliis section shall l�e made usrng the foi�nuia set farth abave, but by substii��ting the index nu�nbers for the Consumer Price I��dex-Seasonally Adjusted U.S. City Average �or All Ite�ns �oz• All Urban Consun�ers (CPI-U) for the i�idex ��una�ers for tl�e CPI-U applicable to tlie Dallas-Fort Worth geographical regio�l. I#' bath tl�e CPI-U for tt�e Dallas-Foct Woi�th Page 7 geo�•a��zical regian and the U.S. Ci#y Averag� are discanti��ued during the Lease Tern�, tl�e i•en�aining rental adjustme��ts called far in this section shall be made using the statistics of the Bui•eau of Labor Statisfics af the U3uted States Depar-ti�lent of Labor that are most neariy ca�nparable to the CPI�U applicable to the Da11as-Fort Wo�-th �eographical region. If t�ae Bureau o#� Labo�• Statistics oF tl�e U�uted States Departrnent of Labor ceases to �xist or ceases to publish statistics c�ncex-ning the purcl�asing power of tlie co�lsuzner doilai• duriz�g tl�e Lease Term, the re�iaining rental adjt�stYnents called for in this secfian si�all be made usiz�g the niost n�a�•ly coanparahle statistics published Uy a recogr�ized financial autho�7ty selected by Lessp�•. V. RIGHTS AND OBLTGATIONS OF LESSEE A. USE OF LEASED PREMISES, Lessee is granted the ��on-exclusive privilege to e�agage in oti�rner/ope�-ator acii�ities pro�idi��g only flie followia�g a�riation seivices: l. Han ar and Office S ace Leasin . Lessee is granted the no�l-exclusive ri�ht to rez�t hangar and office space. 2. General Aircraft Maintenance. Lessee is granted the non-exclusive �7ght to conduct airframe and por�ver plant niaintena�lce services. Lessee, its tena�its, ernplayees, invitees and guests shall not be authorized to conduct any services not speci�cally listed in tl�s Lease Agi•eement. The use of the Leased Premises l�y Lessee, its te��ants, empIayees, in�itees ar guests shall be limited ta only those private, conun�rcial, z-etail ar indus��ial actiwities ��aving to do with or related to airports and avia- tion, as pravided herein. E�cept as speeifically authorized in this Lease Agreement, �io person, busi�aess or eotporation naay operate a. commercial, retail or industrial busuiess upon the Leased Premises o�- upon the Airport wifhout a Iease or license frona Lessor au#l�orizing sucl� co��lmercial, retail o�• induskz-ial activity. B. STA.NDARDS. Lessee shall �neet oi° exceed the following standards and perfoi-ni the follawing acti�ities or actions: 1. Address. Lessee shall file wi�i tl�e Aiiport Manager and keep cu�rent its �nailing addresses, telephone numberrs and contacts wl�ere it cau be a-eached in an enlergency. Page 8 2, L�st, Less�e shall file with Hi� Aiiport Managei• a�id keep current a list of its sub-lessees a�id sl�all keep cur�•ent and provide to the Au•port Managei•, as requested, a list of all au•craft l�an�a�•ed oz• tied down an the Leased Pre��ises witliin the previous twelve (12) ino��tli pe�•iod. 3, Coi�duct. Lessce s1ia11 contractually rec�uice its en��ioyees anci s�U-lessees (and sub-lessee's in�itees) to abide Uy the ter��s of this Lease Ag�•�einent, Lessee sl�ali p�•o�nptly e��force its cai�tr•actual rights i�� tl�e event of a clefault of sucl� cove�ia��ts by sucl� einployees a�id sub-lessecs (and sub-lessee's in��itees). 4. Uiilities, Taxes and �ees. Less�� s1�a11 rneet a��d pay all expenses anci payr��ents i�i coiuieetio�i with t��e use ofthe L�ased P�•eYnises a��d the rigi�ts anci privile�es ��ei•eir� �a��tec3, includl�ig ihe ti��ely payment of utilities, taxes, permit fe�s, lice��se f�es a��d assess�ne��ts lawfully levied ar assessed. 5. Laws. Le�see, at Lessee's sole cost and �x}�ense, s�all comply witl� all current and futu�'e federal, state and locallaws, tules and regulations whicl� inay ap�ly ko the canduct of business cnnteYnplated and/or occupation af the Leased Premises, i��cludi��g ��ules, z•e�ulatians a��d o�•dinances proinulgatec� by Lessor, at�d Lessee shall keep i�� effect and post in a pra�l�in��1t place all necessary and/or requ�ed licenses o�• �er�nits. 6. Maintenance of Propert�. Lessee sl�all be responsible #'or tl�e �naintenanc�, re�aair and uplceep of ali propei�ty, buiic�ings, pavir��, st��ctu�•es a��d ii�}proveinents, i��cluding the n�owing or elitr�ination of grass and other �egetation on tlie Leased Pre�nises and the Lessee Iinpro�Tements const�•ucted on the Public Area, if any, and shall kee� tlie Leased Premises neat, clean ai�ci in �espectable eonditian, fi'ee fi'oin any objeetio��able �natter or thin�, ineluc�ing trash or ciebris. Lessee agrees �iot to utilize ar permit otl�e�'s to utilize a�'eas an the �easeci Pre�nises which a�•e lacateri an the outside of at�y hanga� ar build'uig fo�• the stai•age of wrecked or per►nanently disabled ai��c�•af�, au•cr•aft �arts, automobiles, vehicles of any ty��e, o�• any othe�• equip�ne��t o�• items which woulc� distract fi•oin tlie appearance of tlie Leased Preinises. 7, Pai��ting o� Buildings. Du��i��g the Leas� Ter�n, Lessor sl�all have the �•ighf �o a-equi�•e, ��at mQre tlian once evei•y fi�e years, that tl�e metal exterior of I�anga�(s) a�id building(s) locateci on tl�e Leased P�•e�nises be re�ainted. Tl�e Lessor may �•ec�uue Lessee to re}3a��t said exte�•iors acco�'ding to Lessa�•'s specificatio��s (t� specify color of pauit, quality af work�nans��ip a�ld tl�e ye�t• a�ld inontli u1 �vhicl� the l�ailga�•{s) a��d building{s} a�•e to be painted, if needed.) Lessee shali co��plete the pair►ting in acc�i•dance witl� such specifications within ane (1) yea�• o�recei�t af ��otice fi•o�n Lessar, Lessee s��all pay a�l casts a�ici expenses invol�ed ir� tl�e hanga� a�• builc�in� painting p�•ocess. Una�tha�•ized Use of Leased P�•e�nises. Lessce iliay not use any of the Leased I'remises �'or any use ��ot autl�o�•ized herei�� u�lless L�ssar gi�J�s Lessee priar Page 9 written a��}�t•oval of sucli additioi�al use. Wiill4ilf 1311llf1T1� i�le f�l'��011lg, the Leased Pre��iises shall �ot be used for the o�eratio�� of a inotel, hotel, reskau��ant, private club or ba�•, al�az�tm�nt house, s�o�-age af recreational vehicies, automobiles, or marine vehicles, flea ii�a�•ket type sales, or for industrial, con��ercial, retail, a�• othe�• �}urposes, except as expressly autharizeci herein. 9. D��vellings. No dwelli��g o�• doinicile �nay l�e built, ��oved to ar estal�lislaed on or witl�in tl�e Leaseci P�•emises, nor �i�ay Lessee, its tei�auts, employees, i��vitees, Ol' �UeStS Y3� �ei7111it�E� i� I'OSIC�e Ql' L'e1]771T1 �5 d 1'�.SIC��Ilf Oli OC witliiiz the Leased Premises or otlie�• Airpo�•t premises, Lessee inay have a pilot lou�ige, includ'v�g restraazn a�d sl�ower facilities, for use by flight cr•ew at�ci p�sse��gers. 10. Quit Possessior�, Lessee shall quit p�ssessian pf ti�e Leased �'reinises at tlie ex�c� of the Lease Ter�n, OI' U�lOT1 cancellakian a�- te�•�nlz�atioy� of t��e Lease Agreeinent, a�id daliver up the Lease Pz•e�nises to Lessor in as good ca�ldition as existed wlien possession was takez� by Lessee and as Lessee has eonst��ucted, nr accepted at tlie begiru�ing af the Ter�», i��ciuditig tl�e Lessee Im�rove�nents a��d Lease I�np�-ove�nents gra�ided 'ui Sectian II.D. and Ai�ticle VIII, l�ereof, reaso�iable weaz a�id tear excepted. i 1. Inde��nity az�d Release. Lessee shall inden��ify, 11a1d ha��►nless aiic� defend the Lessor, iks of�cers, agei�ts, elected af�cials and e�nplayees, and hereby �•eleases Lessor, its officers, agents, etected officials a��d employees, frain a��d a�ainst any a��d all claims, liens, sui�s, Iiabilities, causes of action, de�nands, losses, darnages and/az• actions for daii�ages, inju�•ies to ��er•sons (includuig death), pcaperty darnage (including loss of us�), lost profits, and expenses, i��eludi��g caurt costs, atta�•neys' fees and othe�• reasonaUle costs (coliectively, "Clai��is"), occasioned by, arising fi•am or incidental o�• related to tl�� Lessee's occupazicy or use of the Leased Pre�nises ar the Au��oz•t, the aetivities of Lessee andlor any party acting u�ider tl�e authority of, or �•i�;��ts �'auted hy, Lessee coi�ducted in con��ection ��rith ar incidenial to tk�is Lease Agreemeiit, anci/or Lessees' breach oc default u��der this Lease A�•eement, including without li��itatin�i a11 such Claims based on comn�nn, constitutioi�al or statutory law or �•egulakion, whetlie�• existing as of the date hereaf or as i�1ay be created o;• recognized lie�•eafter. Lessee ��ZUSt at all times exercise reasonable precautio�ls an behalf of, a��d be soleiy responsible #'nr, tl�e safety of its officers, einployees, agents, customers, visito�s, i��itees, Iicensees and otlie�• pecsons, a� w�li as tl�e Leased P�-e�nises and Lease itnp�•ovements, while in, on, ar involved iY� any way with tl�e use or occupation af the I,easec� P��ernises. Witl�out liil�iting the i��dem�iity and release p�•ovided he�•ei��, tl�e Lesso�� si�all assuzne a�o responsibility o�• iiability %r tiarn�, inju��y, or a►�y dama�ing events which ace d�•�ctly or indirectly att�'ibutable to p�•e�nise c�efects, wlietl�er i•eal Page 1D or al�eged, wlaicl� inay now exist o�' v�rhich inay herea�er arise upo►� ti�e Leased Premises, responsibility %r all such defects bei��g exp�-essiy assu��ed by t��e Lessee. The Lessee a�•ees tl�at, �vithout liiniting the iiideiruiity and release prnvided he�•eit�, tliis i��demnity a�id release �rovision a�plies to all Claims �I'1S111� fl'0171 all p�•e�nise ciefects or �•elated ta ��1e COtlC�lilOri p� i�1e Leased Pre�nises and/or tkie Lease I�nprovenle�sts, of any ki�id ar type. THE LESSOR AND THE LESSEE EXPRESSLY INTEND THIS PROVISIQN TO RELEASE LESSOR ITS OFFICERS AGENTS ELECTED OF�IC�ALS AND EMPLOYEES AND TO RE UIRE LESSEE TO INDEMNI�Y AND DEFEND THE LESSOR, ITS OFFICERS, AGENTS, ELECTED OFFICIALS AND EMPL4YEES, FROM AND AGAINST ALL MATTERS SET FORTH IN THIS SECTION V.B.11. FROM THE CONSE UENCES OF CAUSED BY OR RELATED TO THE LESSOR'S OWN NEGLIGENCE OF ANY KIND TYPE OR DEGREE EXCEPT AS SPECIFICALLY PROVIDED BELOW. NOTWITHSTANDING THE TERMS OF THE PRECEDING SENTENCES THIS INDEMNITY AND RELEASE PROV�SION DOES NOT APPLY TO ANY CLAIM WHERE THE IN3URY DEATH OR DAMAGE RESULTS FROM THE SOLE NEGLIGENCE OF THE LESSOR UNMIXED WITH THE FAULT OF ANY OTHER PERSON OR ENTITY. Tl�e provisioiis af this Sectian V.B.I1. shail suruiv� the expu•atini� a�1d terminatio�i of tk�is Lease A�•eex�nezit. 12. Chemicals and Other Substances. Lessee shall p�•operly stare, use, coilect and dispose of all cheir�icals, c�emicai i•esidues, paints and/oa� any othe�• �olluta�it, conta��inant, interinediate, hazardous substance, waste, asbestos contav�ing materiai, petroleum product aud a��y substance containing any af tlie abave ("Che��icai"}; to prope�•ly store, ca��fi��e, collect and dispose of Cheinicals, including ��vithout lii�iitatinn, paint sp�•ay in the atn�osphere; and fo coinply with ail �ocal, state and fede�•ai statutes, rules, regulatio�is and o�•di��ances �o�ez-ning ti�e storage, i�andli��g, use or dis}�osal of such Cheinicals. Furtl�er, the Lessee sha11 be solely r�s�onsible �or, and withaut li�niting tl�e �rovisior�s of Article V.B.I1., sha11 ir�d�nu�ify Lessor agaii�st any and ali clai�ns, los��s, liens, suits, fines, ��salties, liabilities, dan�ages, causes of action a��d dei�la��ds, includi��g without Iitnitation, costs, liabilities a��d dajl�ages associated witl� the cleanup, �'einediation and clis�osal of said Chemicals, dainage to tl�e envirom��e��t o�� natura� �'esources, property damage and/o�� i��jury, disease or death of any person, relaied to discl�arges o�• releases, whether accider►tal or intentional, of any Clie�nical or a�iy other inatter, clai�n, loss, lien, s�ik, liability, damage, dei�la�ld or cause of action associated with a�• z•elated to tlie Che��icals. 13. Hazardous Activities. Shouid Less�c ��iolate a�ly statute, rule, restrietion, Paqe 11 order, o��diz�a��ce or regulatio�� of tl�e City of Dentn�� or tlle Fede�-ai Aviatio�� Admi�aist�-ation, or any otlier �•egulatory autllority, ar should tl�e Lessee e��gage i�i or �3e�•init otller pe�'so��s oz• a�e��ts to en�ag� in �ctivities wl;ich could produce l�az�•ds oz• o�st�uction to au• i�a�i�ation, obsttuetinf�s tp �isibility ar �nte��fer•e��ce with ��y auci•aft navigational aid skatian a�• device, wiietl�er a��bo�•��e or on tlie grou��d, the�i Lesso�� sl�all state such violatio�� in w��iting ai�d deliver w�•itteis t�atice to Lessee o��, ii so elected Uy Lessor, Lessee's agent o�l t�►e Leased Pretnises, Ql' t0 �I2e �leI'SOI1�S� 011 t�le L�aSeC� Pce�nises wl�o are causix��; said violation(s), ai�c� upo�� deiiveiy ofsuch �vritte�� natice, Lessor shall i�ave tl�e rig��t to dei��anci that the person(s) responsible foz� ttie violation(s) cease a��d desist fi�om ail suc11 activity cz•eatii�g t��e VSO��i1pI��S�. IIl such event, Lesso�� shall l�ave the �•ight to dei��and tl�at corrective action, as requi�•ed, be con��enced ��nmediately to restoi•e the Leased Pre��ises into eo�lfn�•ma�ice witl� �he particula�• skatute, rule, restriction, arder, o�•d�nance or i•eguiation bei��g �iolated or to re��ave or rem�diate a�iy l�azacd described I�erei��. Sl�ould Lessee, Lesse�'s ageut, or tlie person(s) responsible fa�- tlie violation(s) fail to cease and �iesist from said violakion(s) a�1ci to irrui�eciiately cc��unence correctuig the violation(s), a�1d to co��plete said co�-�•ections withu� twenty-four {24) linurs fol�owu�g �v��ittez� i�otification, then Lesso�• sha�l iaave the cigllt to enter onto the Leased Premises and co��ect tlie violation(s) at tl�e sole cost and expense af Lessee, and Lessor siiall �iot be teS�lOClStil�� far any da��lages 311CUt'1'Cd i0 atl� 1171�1fpVe1TleIl�s Qil ��1� Le�S�C� Premises as a result of the coz��-ective actio�� process. In addition, such violation sh�ll be ca��sidered a material default by Lessee authoi•izi��g Lessor, at its sole nptin�i ��d disc�•et�an, to urunediateiy ter��uiate and cat�cel this Lease A�•ee�nent and to exex•cise any and all ot��er rigl�ts anc� remedies a�ailable to it unde�• this Lease Agree��ent. C. SIGNS, Na signs, �QSt�FS} or other similar devices ("Signage") shall be placec� on the exterior• af �he Lease I�npro��e�nents, Lessor I�n��rovements, if applicabie, or on any portian af tlie Leased Prernises or Air�ort p�•apei�iy without tiie ��•io�• w�•itten a�praval of Lessa�•. Lessee, at its sole expense, shall be respnnsible for the creation, installation and inaintei�ance of all sucii Si�nage. Lessee, withaut lin�iti��g the general nature of Sectioii V.S.11., shall pay to Lessor a�iy a�id all damages, injua�ies, os• repai�s resulti��g fi•o�n tlie iiistallation, �naintej�ance or repau- of any such Sig��age. Any Sig��age piaced on t11e Leased Preinises sl�ali be mai�ltainec� at aIl tij��es in a safe, �1�at3 Si�,litly aIla gOQ[� ��ly5iCal CO11tIi�1011. All signag� s1�a11 be �•emovec� fi•oin the Leased Pcenaises by Less�e ii��tnediately upan receipt of lIl5i1`UCi1011S For rernoval of same fi•om Lessor, including ��rithout lia��itatian, upon expu-ation a�• termination of this Lease Ag�•eeinent. If Lessee fails to remove the Si�nage theii Lesso�• ��ay do so at ti�e sale cost and expense of Lessee. Sut�ject to appro�al by Lesso�• as pravided he�•ei��, Lessee �nay �lace two wall signs, i�o greate�• tlian thirty-two square feet eacli, ide�itifying tlie cornlnercial ha��ga�• operation. Not�vithstandi�ig an}�hi��g contai��ed �e�•ein to the cont��a�•y, all siguage sl�ali coinply with all applicable City of Dentan or•clina��ces, incluc�ing tY�e City of Dej�ton sign ordinai�ce. D. ENTRY. Lessor ai�d its designees shall Ijawe the rigl�t to e��ter the Leasec� Paqe I2 Premises u�an ��easo�}ahle ad��ance notice (wx•i�tezi ar ai-al} and at a�ly reasona�le times foj• the pur��oses of inspecting th� Leased Pz•e��ises, pe�•faz-�ning any wo�•k which Lesso�• elects to pex•fo�-m u��der this Lease Agree�ne�t, and exhibiting t�ie Leased Pi•ernises fo�• sale, iease, or �no�•t�age. N�thi��g in this section shall imply any duty upon Lessor to do any work or �erform any activiiy, ��vl�ich u�ider any otl�er pr�visian af t��is Lease Agreemeiit Lessee is r•equired to pea•for�n, axid any perfo�•inance by Lessor shall �iot canstit�te a r�raiver af any defai�lt by Lessee hei•eunder. VI. COVENANTS BY LESSOR Lessor• herehy ag��ees as foilows: A, PEACEFUL ENJOYMENT. U�3on payment of all rent, fees aud perfarma��ce of tl�e cove��an�s aa�d agreements an the �art of Lessee to Ue }�erformed iiereundei•, Lessee (subject to tt�e terms and conditions of this Lease Agreement} shail peaceably hoid anci enjoy the L�ased Preinises ax�d aIl rigl�ts atld privileges he�•ein ��a��ted; hawever, Lessee accepts this Lease A�•eement subject and auboa-di��aie to any recorded ��o�-tgage, deed of t�ust, or other lien presently exist��; upaz�, o�� ta a��y other �natter af �•ecord in the R�al P�'operty Records of Denton County, Texas and/or tl�at Lessee is othei•wise cl�arged uritli notice or inquu•y notice, affecting tl�e Leased Pren��ses. B. COMPLIANCE, Lesse� wili not be legally lisble for any actian of trespass or similar cause of action �y vix�tue of any aerial nperations of adjoini��g propei�ty i�i the course oinor�nal take-o:E�' and la�idin;g �rocedures fi•ain tl�e Aitpa�-�. VII. WEIGHT LIMIT OF AIRCRAFT A. RllNWAYS AND TAXIWAYS. Lessee sl�ail Iianit all ae�•anautical activity, i��cluding withaut liinitation, landing, take-off and taxiuig, ta au•craft haWing an actual weight, i�icluding t�1e weight ai its fuel, of tliu•ty tllousand (30,000) pounds or less, unless aiid unkil sucl� ti�ne that tl�e run��ray anc� designated taxiways on ti�e Airpact hawe been improved to l�ai�dle ai�•c�•aft a� such exc�ssive weights. It is further ag��eeci that, based on qualified e��gineeruig studies, tl�e weight restrictions at�d provisiot�s of this clause �i�ay be adjusted, up or dawn, and tl�at Lessee ag,rees ta abide by any such changes ar i•�visions as suc� studies �nay dietate. "Aeranau#ieai activity" refei-�•ec� to iii tl�is cia�se sl�all include any activity oftl�e Lessee a�• its agents or subcontractors, ai�d its custoYnei•s a�id i��vitees, but sl�all not ;�►clude those activities over which it has no solieitoiy pat�t ar control, SLiCI1 �5 aa� unsolicitec� oi• unscl�ecluled pr etnergency landing. Violatio�� of the provisions af tl�is sectia�� on two or inore accasions d��ri�lg ti�e Te�-m sha11 be sufficie��t to cause {i) tlle iminediate ter�nination of this Lease A�•ee�ner�t, wiihout o�}�a�-tunity to cure by Lessee; (ii) shall otl�erwise constitute a defa«lt l�e�•eu�ider whei��i�i Lessor inay resort to ail otlier �•einedies provided in ti�is Lease A�•ee�nent; a�ld {iii) �vithaut limiting the }�rovisio��s of SecNoa� V.B.11., suUject Lessee to liability for a�iy danlages ta tl�e Aii•poi� that inight Y•esult, Nothuig co�itained herein sl�all be cansi�-ued as creating ar�y obligation on t��e pa�-t of Lessoi• to itnprove a�• inadiiy any p�t�t of the Aupa��t. Page 13 VIIL LEASEHOLD IMPROVEMENTS A, ADDITIONAL CONSTRUCTION 4R 1MPROVEMENTS. I�� additio�i to tl�e Lessee I�nprovements, su�ject to the tex•n�s of tl�is Article VIII, Lessee ii�ay const�-uct u�an the Leased P►e��ises, at its own cost anci ex�e��se, builc�i�igs, hai�ga�-s az�d skruetui•es, that Lessor anct Lessee inut►�ally agi•ee u� thei�• discr•etio��, ai•e necessary fo�• use ul coruiectio�i with tl�e operations aufliorized Uy tl�is Lease Agree�x�e�t ("Aciditional Itnprovements"j; pro- i��ded l�owever, Lesse� shall comp�y ��ritll a11 of the ��ec�uir•e��ents of tliis Article VIII. B. RE�UIREMENTS FOR LEASE IMPROVEMENTS. Befpre conunencin� constructior} activities t•elated to the Lessee I�npror�e�nents anc�lor tl�e Additional Irnprave�a�e3�ts upon the Leased Pcemises {tl�e Additioilal Itnpro��ements and the Lessee Improven�ents are collecti�ely referred ta i�� this Lease Ag��ee��eY�t as the "Lease Iznprov�n�ents"), Lessee shall sub�l�it ta Lessor; 1. Dacumentatio�j, specificatians, or design work, pre�a�ed by ar� arcl�itect a��c�/ar ea�guieer selectec� by Lessee �vhich shall be revie�ved anc� ag�roved l�y the �.essor, which shall establish that tl�e iii�prover��e�ats ta Ue Uuiit or• const��cted upo�l the Leased P�•einises and Public Area, if applicai�Ie, a�•� it� conformance with tlie overall size, slla�e, colo�•, quality and desig�, i�� ap�eai�at�ce and stluCtui'e af tl�e ��-o�•a�n establislied by Lessor oii tl�e Au•port. 2, All plans and specifications sl�owing tk�e lacation upon the Leased Pre�nises and Public A,�•ea, if applicable, af the ��•opnsed canstauction anci i��iprave�a�e��ts. 3. The esti�nat�d cost of such consttuction. No ennstructio�� may cai�une��ce u��til Lessor has appi•oved the plax�s anc� sp�cificatio»s and tl�e location af the Lease impr�vemei�ts at�d the Public A�•ea, if ap�licable, and the estitnated casts af such co�ist��etio��. A�pr•aval l�y tlie Lessox• af coa�st��uction in confor��ity witl� the terms of t�is Lease Agreemeni sl�all z�ot be u�u easo��ably witliheld, B.1. CONSTRUCTION 4F LEASE IMPR�VEMENTS. Constructio�i a��d i7lodification of ttie Lease Improveinei�ts sha11 b� perforineci in a good and wa�•ki��a�llike ii�anlie�- a��d in co�npliance with all applical�le builduig codes, �•ules, standards, zo��ing aiid other nrdinances a��d all �tate anc� federal sta��da�-ds (i��cluding, witliout lirnitation, Tit1e III of the Atnez•icans With Disabiiity Act of 1990, any state statutes, gove�•i�i�ig haz�dicapped access oi• a�cliitectural �iaci•iers, a��d all r�ales, regulatioiis and guidelines proin��lgated u��der sc�ch laws, as a��e�ided frorn ti�ne ta tit�le), 2. Witllout liiniting tl�e provisions of Seciioi� V.B.II., Lessee shali pro��ptly pay a��d discharge all costs, ex�e�ises, clai�r�s for da�aaa�es or i��jucy Paqe 14 {including wi#hout lin�itation claims for personat injury or deaih, oz• prope�-ty damage or destructian, or economic loss), liens and any a��d all other liabilities and obligations which a�•ise in connection with sucl� const��ction. 3. Lessee sliall cause eac� cor�tractor perfo�ming any work or otherwise occupying tl�e Leased Preinises or Public ,A�'ea and/or Airport related to the Lease Improvements or p�rsuant to the authority provided to Lessee hereu��de�', to inde�nnify the I.essor and its officers, agents, �Iected vifcials and er��ployees to tl�e sa��e extent pro�ided by Lessee to Lessar in Section V.B.11.. 4. Lessee shall prape�'ly and timety sub�nit to tlie FAA, TxDOT, and any otlie�• govein�nentai en#ity or ag�ncy having jurisdiction regardit�g tlie Aiiport, a Notice of Propased Constr�ction and any and alI other documenfs or inaterials as �nay be required, vvhen and as rec�uired. S. Witl�out limiting the �-ights ta Lessor pro�vided in Section V.D., Lessor has the right and is authorized by Lessee at all tii�ies during any const�uctio�i p�-oject to enter upon The Leased P�•emises to obser�ve tf�e perfornlance of such canstructian. Nothing cantained herein shali be co�istrued as an obligation, of a��y kind or type, on the part of Lessor related to the co��sfzuction activities andlor to assure Lessee's campliance with the provisions of tl�is Lease Agreement. 6. No later tha�� thirty (30} days af�er cortipletion of tl�e Lease Irr�p�'ovenaents, Lessee shall submit to Lessor detailed as-built �lans af t��e Lease Im�rovements and doeumentary evidence acceptable to Lessor evide�icing t�e total cost to construct the Lease I�riprovements {"Cost to Cozis�uct Lease I��provenzents"}. 7. No iinprovements to the Leased Premises, including without limitation, the Lease Imp�•oveinents, may be remo�ed from tl�e Leased Preinises during t��e Ter� hereaf, unless othenvise specificaily aut��orized herein. S. Lessee sl�ail cause the gene�•al cot�tractar to obtain (i} payment bonds for const�uction con�i'acts g�'eater tlia�� Fifty Thousand and no/100 Dollars ($50,004}; aud (ii) payment and per%rmai�ce bonds for canstruction conh•acis greater than One Hundred Thousand aud no/100 Dolla�•s ($100,000), for each constraction activity on the Leased Premises and Public Area, if applicable, eaci� z�anning the I.essor as an Additional Obligee. Lessee shall furnish such bonds to Lessor prior to any vvork an the Leased Pre�iiises or Public Area, if appiicable. Additioa�ally, a�ry and ai] insura��ce pxovided �y the ge�ieral contractor io Lessee shall na�e tl�e Lessor as an Additional I�isu�•ed and/or Loss Payee, as appIicable, az�d provide the following ca�rerages, a# a n�umurn: Paqe 75 + Con�ne�cial General Liability -� 1,000,000 per occu�rence and $2,000,000 aggregate + Business Automobile Liability -$500,000 per occurre��ce a��d $1,000,000 aggregate • Work�rs' Compensation — Stahitoiy Liinits • Builde�-'s Risk (if applicable) —100°/n o�khe co�npleted value C. OWNERSHIP OF IlVIPROVEMENTS. Except as otl�erwise pro�ided in this Lease Ag�-eement, the impraveinents now located, or const�ucted or to be constructed upon the Leased Pz-emises by Lessee (includii�g without lin�itatia�l, tl�e Lease Inlprovements), hut eacluding tl�e Lessor I�npravements, if ar�y, shatl xemain the pro�erty oF Lessee during tlie Lease Term subject ta ihe followii�g conditions, terms a�d provisions: 1. U�o�7 the tetmination of this Agreen�ent, whether by expiration of tY�e Te�m he�•EOf oi• iar any ot�er reason whatsoever, except by reaso�l of default on tl�e pa�-t of Lessee, Lessee sk�all have the �•ight to reinave aIl those real paroperty a��d str�ictural imp�•ovements having been �nad� prior to the Effective Date as described in Seetion n. D o£ this Lease Agreement, other than Lessor I�npro��ments, if any, owned by Lessee, from the Leased Premises, b�t Lessee shall �e required to repau� any damage to tlie Leased Premises caused by sucl� removal iu a good and wo�-kmanlike rnanner and at Lessee's sole cost and expei�se; pro�ided however, (i} if Lessee is in default h:e�-eunder, Lessee shall foi•feit the right io remove aIl tl�ose real property and stiuciural improvements having been made prior �o tlze Effecti�e Date and naw existing on the Leased Premises; and (ii) if Lessee is i�� default liereunder, Lessor may elect to require Lessee �o reinor�e all or part of t�ae iniproverr��ilts {oiher than the Lessor �r��prove�nents} fiom the Leased Premises prior to the expiration or earlier te�-mination of tl�is Lease Agree�nent and restare the Leased Prem�ses ta the condirian in wl�ich the same existeci as of the Effective Date of t��is Lease, iz� wl�ich event Lessee shall pronaptly pez'fozm sucl� remaval and restaration in a goad and ��vo�•kmanlike ma�uier and at Lessee's sole cost a��d expense; and (iii} Upon s��ch expiration or earlier termi��ation, Lessee shall deliver the Leased Premises to Lessor in good conditian, r�asonable wear and tear excepted, and shall, at Lessor's request, execute a recordable instrument evidenci��g the tem�ination of this Agreernent, expr�ssly stating the terniination or expiration date thereof. 2. The Lessor �nprove��iei�ts, if a�ry, slaall �-emai�i the property af Lessor at all times during and after the expiration or earlier terminaiion of this Lease Agreeinent. 3. Notlling eontained l�erein sllall be const�ued to lin3it or prol�ibit Lessor and Lessee fioi�1 mutually agreeing to eiti�er (i) a�nend ar modify klus Lease Page 3.6 Agreement or, (ii} ente�• into a new agreet�lei�t to sup�rsede a�id re�lace t�iis Lease Agreeinent, Hawever, nathuig catita�tied liereu� sliall be dee�ned oj• co�istrued to require any a�ncndment or modi�catio�� of this Lease ar the entering into of a new iease a�eeinent. A�iy such action shall be at tlie sole a«d absolute disccetin�� of Lessor a�1d Lessee, IX. COLLATERAL ASSIGNMENT A. CON�ENT TO ENCUMBER. Lessee sl-►all �lot collate�•ally assig« this Lease or othe��wise encumber tl�e estate created by tl�is Lease Agi•ee�nent wit��out the written co��sent of Lessor, wl�icl� suc11 cansent shall Ue at Lesso��'s sale discretion. As co��c�itfon� to suel� cansent, Lesso�- xnay rec�uire fi•ain Lessee and/or tl�e Secured Pa��ty {l�erein so called} a��y coirul�itii�ent, coi�ditioi� or requi��leilt deeined necessa�y o�• ad�isable by Lessor•, i��clu�ii��g without liinitation, p�•ovision for: l, Exp��ess a�•eement that the Lessee sha11 in ��o way be released fiom any of its obligations unc�ei• tl�is Lease Agreeme�it, including witltout Ii�nitation, tiie obligation ta pay re��t; 2. Tl�e Secu�•ed �'a�ty to ��•oznptly px•ovide I,esso�� notice of any deiault l�y Lessee in any obligatio�i to Secu��ed Party; 3, The Secu�•ed Pacty to �rovide ��otice to Lessor at least fifteen {IS) c�ays �t•ior to (i} accele�•ating any indebtedness awed by L�ssee to Secured Pai�y; {ii} initiatinn of any fnreclosure proce�di�igs; a�fci/or (iii) any other actions to enforce any financial obligafion of Lessee to Sec�ared Party, B. USE OF LOAN PROCEEDS. Any funds bor�•oweci by Lessee iii wh�ch this Lease Agree��ient or the estate created by this Lease Agi�eeinenk a��e utiiized as security ar callate�•al, in w��oie or in pa��t, inay be used oniy for (i) obtainin�; funds for• t1�e constructian of the Lease I�npr•ovements, as t�escribed in Section II.D. and Article VIII hereof; (ii) for acquisition af the leasehold estate c��eated by this Lease; or (iii} any othei- purpose whicli niay be ap}�roved froin tiine to ti��e by Lessar, ui writing, in iis sole discretiai�. C. LIEN. No lien co��t�m}�lated by t��is Articie IX shall cai�stitute a lie�� o�� Lessoz•'s fee title. Any indabtedness secured by a lien against a�• o�i the estate created by tl�is Lease Agreemei�t or this Lease shali at all tii�les be and re�nait� i�iferior atid sui�ordi��ate to co�iditions, co�Tez�a�its a�id obiigaiiaz�s oi this Lease Ag�•eei�lei�t a��c3 to a11 of Lesso�•'s rights u��dei• this Lease Agree�ne��t. X. RIGHT OF EASEMENT Lessor shall l�ave ti�e x•i�;ht to establish ease��ents, at no cost to Lesspr, upo�� tf�e Page 17 Leased P��emises fo�• the pu�•��ose of (i} providi�lg t��ide�•�•auud utility services to, from oi• across tl�e Aicport p�•operty; or (ii) fnr the caz�struction of public facilities and/or infi•astructure a�z tl�e Airpo►t, However, any sucl� ease�ne��ts sl�all �iai interfe�•e with Lessee's use of tlie Leased P�•eanises and L�ssor shall cesfore �he Leased Pre��ises to as close to its origulai condition as is reasanable practicable u4�oz� t��e i��stallation of ai�y utility se��vices o��, ui, over or unde�� any such eas�i�lei�t at the conclusion of sucl� constructian. Coj�sttliction witlful tl�e ease��lent upon the Leasec� Pre�nises sl�all l�e com��leted withi�i a coj�imercially re�so��ahle ti�ne. XI. ASSIGNMENT OF LEASE Lessee ex�ressly covenants that it {i) will nat assi�� this Lease Agreement; {ii) conv�y �nore tl�a�1 fifty percent (50%) af tl�e voti��; inte�•�st i�i its busu�ess or eiltity as of the Effective Date of this Lease Agreement, tlu•ougi� tlie sale of stock or otlierwise; or (iii) tra��fer, licex�se, ox� suble� the w�iole or any �art of tlie Leased P�-emises fa�� a��y �3urpose, exce�t iar rental of ha��ga�• space ai• tie-down space for sto�•age of au'cra$ only, witl�out tl�e pi•ioz• ti�ritten co�is�nt of Lessac, Lessor a�rees that it will x�ot u�u•easonably withllald its appz-oval of s�ch sale, suUl�ase, transfer, license, or assignmex�t of tl�e facilities for Aupor•t related pucposes. The �covisions of tl�is Lease Agreeznent sl�all remaui binding upo�� the Lesse� and the sublessees and assignees, if any, ofLessee. XII. CASUALTY LOSS/C4NDEMNATION A. CASUALTY/TOTAL OR PARTIAL DESTRUCTION. I�� th� event the Leased Premises, ox• a��y i�np�•ovezneirts located the��eon, a�•e c�a�naged by casualty, xegardless of tl�e extent af tlle datnage o�• dest��uction o�• wl�ether insu�•ance prnceeds, if any, a��e sufficient, Lessee shall, at its sole cost, ��isk and expense, proinptly, but in a�o e�ejit to be later tha�3 six (6) mox�ths af�er suc�� casualty, coi��lence and colnplete with diligeaice, the restoratioii, re��air and/or replacement of a�iy suel� impr•aveme��ts to substantially tlie saz�ie conditio�� as they existcd ��•ior to ti�e casualty loss, COl]Ci1�101]�C� U�3pri tlle �OI�OW1ri�T pIOV151DI1S: 1. Any anci all activiti�s �•elatecl ta tl�e x•estoratio�i, �•e�ai� and re�iace��lent aft]�e da��aged imprave��ex�ts, shall be subject to (i) Lessor's prior approval, as �rovided 'ul �ec�iozk �I.D. and Article VIII, as a�plicable to the i�7�proveme��t affected by casualty; and �ii} tl�e provisio��s set foa�t�� in ti�is Sectio�i XII.A. 2. Lessor, as loss �ayee under the all risk p�•operty insura�lce coverage rec�uired by tl�is Lcase Ag�•eetnent, si�all be ei�titled to appro�Te dis�ursen�e��ts of the insurance �roceec3s as �'estoa•ation, repau a�id �•eplaceinei�t activities ax-e co��pleted by Lessee, 3. Lessee sl�all talce a��ti cainplete whatever actions a��e necessai•y, if applicable, to obtai�� dishursemei�t autlla�•ity of ��isu�•a�lee proceeds fram auy secured party �ossessi�� a lien oi� the leaseholc� estate createc3 by this Lease Ag�-ee�ne��t. Page 16 4. In the event Lessee fails to ��omptiy ca��nence restaration, repair and/or replaceinent of the da��aged im�rove��zents in coi�formance witi� tl�e pr•avisions hereof, Lessee shall be in default under this Lease A�•eement, in whicli event Lessor may seek at�y re��ledies avaiial�le hereunder, and Lessee sliall provide such e��dorsejr�ents a�- take any other actions ��ecessa�•y, inciudi�ig witl�o�at limitafion, any actio�� r�quiu•ec� of a��y secu�•ed ��az•ty, ta cause all of tl�e uisuranee }�roceeds payable due to sucl� dai�a�;e or casualty lass to be paid to Lessnr. B. T�TAL OR PARTIAL CONDEMiNATION. If tlie Leased P�•einises or any pa��t of tlzetn are take�i �y condeiruiation as a resuit of a��y aetion or proceeding in e��-►uient do�naui, or a�•e tra�isferrec� i�� lieu of co��deir��atin�� to a��y �uthority e��titled ta exe�•cise the po�ver of emule�li dornain, this A�-�icle gavcrns Lessor's and Lessee's interest i�i tl�e awaa•d ox• eoz�side�-atio�� foz• tl�e t�•a�sfe�� and tlie affect of t��e taking ar transfer aithis Lease Agreei��e��t, 2, In the evei�t tl�e e��ti�•e Leased Preinises are taken or t�•ansfe�-�•ed as desc��ibed in Sectioi� XII.B.l., above, this Lease Ag�•eea�ient and alI t��e rights, titles and it�terest under it wili cease on the date that title to the Lease Preinises vests in tl�e condei�nning authnrity, and the proceeds of the conde��t�ation shall b� [tiie prope��ty of Lessor. 3. I� only pa�-t of the Leased P�•einises is taken nr transfe��•ed, as desc�•ibec� in Sect�on XII,81., above, tkiis Lease Agreen�ent shall tex•�a�inate if, i�i Lessee's reasonable judgrnent, the �•e�i�a�ndez� of the Leased Premises is in such a location, or is in such form, sl�a�e o�• reduc�d siz�, tl�at Lessee's operations catuiot b� effectively and practicably o�erated upo�� the rernaining po�•tion of the Leased Preinises. In such event, this Lease Agreei�ient ai�d all rigiits, title and inte�•est under it will cease o�� the date that the title to the portion af the Leased Pre�nises take�� or kra��sfe�'red vests ui tl�� co��ci��lning autli4rity. The praceeds ofthe conde��uiatiai� shall [bc the pr•opei�ty of Lessor. 4. In the event pact of the Leased P�•e��ises is taken a�• t�-ansfec�red as described u� Seetioi� XII.B.1., above, and, ui Lessee's reasonal�ie jud��i3�nt, the reinai��d�r of the Leased Premises is i�� such a locatio�� and in such foi�n, sl�ape or size, tl�at Lessee's ope�•ations may be effectively ancl praeticably o��erated o�i tl�e �•e�nauii�ig �artion of the Leased Preinises, this Leas� sha11 terminate wiHi tl�e �•espect to tl�e poz�tion of the Leased Preinises taken or tra��sfex-�•ed as of tl�e date title to such portion vcsts ui ti�e conde��uiing autl�ority, but shall cai�ti�iue in full %rce with respect to �he pot�tio�� af tlie Leased P�•emises not taken ai• trausFerred. Notwithstanding the �arkial tern�i��ation of this Lease Agreement, Lessee sl�all pay to Lessor One Hunc�red Pei•ce«t (1 QO%) of the �'ent due aa�d payable under this Leas� A�•ee�nenf as if such �artiai taking I�ad not Page 19 occurred. Tlie �roceeds of the co�iden��ation s�all [be ilie pi'o�e��ky of Lessoz•. 5, Nothi��g co��tained 'ui this Ar�icle XII shall �e car�strued to prohibit Lesso�• fi•o�� alunta�'ily canveying all o�• part of tlie Leased Preinises to any pacty with conderruia��g autl�ority c�nder state or fedei•al laws, hnwever, a�iy such volu��ta�•y co�iv�ya�ic� sl�all be treated as a takuig ��itlsin tl�c ii�eani�ig af tilis Article XII. 6. Nat�viti�st�ndi«g tlie abo��e, in t��e eve��t tlie condemning autl�ority, as desc�-ibed ir� Sectio�� X��.B.1., aUo��, is t��e Lessac, tl�e ��roceeds of tl�e coi�dciruiatian attributable ta the Leased Pre��ises shall be tl�e property of Lessee, XIII. INSURANCE A. ItEQUIItED INSUR.EINCE, Re�a�•dless of tl�� aeti��ities conten�plated under this Lease Agreen�etit, Lessee sha11 �nauitai�� co��tix�uously in effect at aIi tinles duruig the te�•�n af this Lease A�•eeinent, at Lessee's sole exper�se, the fal�a��vi��g n�i��in�u�� i��surai�ce cove�•age; Ca��i�ercial General Liability cove�•ing the Lessee, its e�n�loyees, agents, te��ants and indepe��dent cn��tracta�`s, and its o�erations o�� the Au•port, Cave�•age shall be in an arnount �l�t less tha�� $1,0�0,�00 pe�• occui•rence and p�•avicle cn�erage fnr pre�nises/ope��atio��s and cont��actual liability AND wiiere exposure exists in the opinio�� of L�ssor, coverage for: p�•oducts/caii�pleted ope��atio�is; expiosion, eolla�se and under��ound p�•operty da�nage; anc� envu-oa�anental ii��}�au�nent, 2. All z•isk p�-opecty i�isucanee on a one-hund�•ec� perca�lt (100%} r�plae��n�nt cost basis covcru�g loss or da3r�age to a11 facilities and improvexnents located on tl�e Leased P��emises, either as a part of t1�is Lease Agree�nent pr erected by tl�e Lessee subs�quent to this Lease A�•ee�nent. Untier r�o cueumstat�ces sl�all the Lessor bc liable fox• a��y da�nages to fixtu�•es, tnercha�ldise or other persoiial px-ope�•ty of tli� Lessee ar its sub-lessees. 3, Business A�to�nabile Liai�ility ta inclucie covecage fo�• Ow�ied/Leased Autns, Nan-Ow«ed Au�os and Hzred Ca�•s: �'or operation ia3 auc�•aft ��iovetnent a�eas tl�e limit of liability shall be $100,000 per occur��etice, For other o�e�-�tio�s tl�e Iimit of Iiability si�all be ��siste��t with the a�nount se� by State Law. B. ADDITIONAL COVERAGES. In additioil t� the above �•efe�•e��ced co��erage, fl�e follov�rulg i��surai�ce is requu�ed if, ui tl�e o�iz�ion o�Lesso��, the activity or• ex�osure exists or is contetnplated: Page 2p 1, Au•crai� �'�ieU0i1 Stora�e and Dispensi��g — Carnp�•eheaisive Coan�ne�-cial Genecal Liability s�iall it�clude co�Terage ar sepa�•ate coverage for E�i�i�•oru�ieiital Iml�ai�•�nent Liability. 2. Ai�•craft Sales or Aiccraf� Chat�ter and Air Taxi — Airc�•af� Liability in tlle a��oux�t of $1,000,000 pe�• occur�•e��ce ta inelude Hull Coverage a��ci Liability. In additiaz�, Passenger Liability in an ai��ount of $100,000 per pe��son (per passenger seat) sl�all i�e pz-ovided, 3, Au•craf� Rei�tal or Flight Trainuig - Auc�•aft Liability in the amau��t oi $1,000,000 pe�• occurrence to include Hull Co�erage and Liability, Passenge�• Liability ix� ihe a��ount of $100,000 pe�• person (pe�� passenger seat} and Student/Rex�tex• Liability cavering all use�•s in tlie ainau�it of $SOD,000 per occur�•ence. 4. Specializ�d Coirvne�•cial Flying (includu�g crop dustin�, seedi��, a��d sprayiil�, ba��ne�• towing and aerial advei�tising, ae►ial photogT•aphy and surveying, fue fighti��g, power iine or pi�e line patroi) - Au•c�•aft Liability iu� t��e ainounk of � I,aao,000 per occ�rrence to uiclude Hull Co�erag� a�ici Liability. i�a ac�dition, Passe�iger Liability i�1 an amou��t of $100,000 per ��erso�� (pe�• passen�ex• seat) shal� be p�'avided. 5. Aucraft Storag�, Maintenance and/or Repair - Air•cr•aft Liability in the amou�lt of �1,0a0,000 per occurrence to include Hull Caverage and Liability. In addition, Hanger Keepe�s Liabili�y ui the atnount of $500,000 per occu�7ence sl�all be provided. The requi�•e�nent foz• Hangar Keepers Liabslity shall nat apply to uidividual owi�er/operato��s w�ose �rim��-y use �f tl�e hali�ar space 15 the storage of tiieu• owi� aucr�ft. The requu•e��ent does �lot apply to such individuals �lotwithstanding the fact that they may, fi�ain tiine to time, �ermit the storage t�f nnn-owned ai�•craft i�i the hangai• s��ace and cha�•ge a fee for the sta�•age of sucl� aireraft so loa�g as sucl� use is i�i tl�e nature af a re�1t-sharing a�•eez�ent rather than a coim��ercial aiz•c�•aft stoi•age business, C. COVERAGE RE UIREMENTS. All insurance co�erage sk�all eo�nply wit� tl�e following requirements: 1. All liability policies shall b� endorsed to ii�clude the City af Dento�}, and its officecs and ej��loyees as a�� Adc�itional Insured, AIl all-risk pra�aerty policies shall be endorsed to nai��e the City of D�nto�� as a toss payee, All �•equi��ed insurance �alicies shall p�•o��icie for a miniinum of 30 ciays «�ritten notice to the City of any caneellatior� oi- material change to tl�e policy, 2. A11 i��surance rexiui�•ed by this Lease Agreeinent in�s� Ue issuec� by a eoa�pany or companies oF sou��d and aciequate fuiancial responsibility and Page 21 authorized to do busi��ess in tl�e State of Texas. All policies are subject ta the exaini�iatio�� ax�d al��r•avai of t1�e City's office of Risk Mai�age�nent for t��eiu• adequacy as to ca��te�it, fo�•m of pi•otection and pravidi�ig coi��pa�ay. 3. Required 'u�surance namin� tlie City as ar� adciitio��al ins�reci �nust be primary ulsura��ce a��d t�ot cont�•ibutiz�� with any otl�er i�isurance available to the City whetlaer ii�om a thiud pacty liability policy or other. Said li�nits of i�isu�-ance sl�all in no way iimit tl�e lia3�ility af ti�e Lessee hereunder, 4. The Lesso�� shall be provided �vith a co�y af all sucli ��olicies a�id re�i�v��al cei-�i�cates. Failure af Lessee to con3ply witl� t3�� ininimu�l3 specified aii�ou��ts or types of ��s�rauce as �•ec�uired l�y i�essor sl�all constitute Lessee's default of this Lease Agreemcnt. 5. During t��e Lease Tertn, or a��y extensian thereof, Lessor ��e�•ein a-ese�•ves tl�� ri�l�t to, witli 60 days ��otice, adjust or increase t11e liability uisurance a��o�nts requii•ed of the Lessee, and �o z•equu-e ax�y ac�ditional ric�er•, eiidorse3�ient, provisions, oi• cet�ti�cates of i��su►•ance, ar�d Lessee he�•eby agrees to �rovide a��y suc�i uisurance �•ec��i�•ements as �nay be requu•ed by Lessor. XIV. DE�'AULT BY LESSEE AND LESSOR A. EVENTS 4F DEFAULT OF LESSEE. Tl�a ter•m "Event nF Defaulk", as used hereu�, sliall znea�� ihe occut�e�ice of any one ar ��ore of tlie followi�l� ev�nts: 1. Fa�lur� of Lessee (i} ta pay a��y install��ient of rent or any other su�n payable ta Lesson c��•eunder; o�� {ii} to pay az• ca�ase to be paici ad valoi•ein taxes, utilities or insurance pre��iums, ar any atl�e�• �ay�nent which Lessee is to inake u�lder tl�is Lease Agreeinent, o�i th� date tliat saine is due a�1d sucl� failur•� sha11 �iot be cu�•ed withi�� tl�u•ty (30) days a�er written natiee thereaf to T,essee, uniess a shorte�• notice periad, oj� ��o requu•��nei�t of tiotice, is athe��wise speci�cally prescribed herein; 2. Lessee shall �eco��le insolvei�t, a��ply for ar• co��s�nf to Hie appointinezat of a ��eeeiver, t�•ustee, custodia��, inter�eiio�•, liquidator o�• othe�• si�nilar official af itself, the Leasec� Pcernises, ar all or substa�iti�l part of Lessee's assets, inake a ge��eral assign��eart for tl�e bene�t af ci•editors, o�� commel�ce a �oluntary case o�• ac#ion ux�c�er a��y applicable bankru�tcy, rehabilitation, ix�solve��cy oi• atl�er siiniiar law j�aw oc I�ereafter i�i effect; 3. A coui�t i�a�i��g jui•isdictinn of or over the Leased P�•eznises or Lesse� sliall enter a decree o�• order f�r relief in respect of Lessee in any case o�• proceeding t��ide�� ax�y applicaUle bank��u�tcy, �•ehabilitation, i��solvency nr otl�er si�nila�- la�� now or l�ereafter ui effect, or a��3ointing a receiver, trustee, custodia��, inte�•venor, liquidator o�• atl�er similar aff'icial %�• Lessee, tliE Leased Pee�nises, or all o�• a substantial �art af Lessee's assets, oi• Page 22 o�•ciei•i�ig tlie winding up or iiquidatian of Lessee's affairs and s�cl� decree o�• order sl�all re�nain unstayed and in e�fect far a�eriod af sixty (60} consecutive days; 4. Less�c shall inake a transfe�• ix� fi•auci af creditors; S. Aba��c�nnii�ei�t or cess�tio�� of use of ti�e Leased P�•emises for ti�e pur�ases leaseci by Lessee, as provicied he�•ein, far a period of thuty (30) consecuti�� clays; or b. Lessee fails to �unctually anc� pro�erly pecfo�•a��, keep o�• abse�•ve any of the tecjns, covena�zts, agreeinei�ts or coi�ditio�as he�•ei�� caz�tained a�id such fail��•e �hall not be cu�•ed witl�i�� tiiirty {30) days after w�•itfen notiee thereof ta Lessee, unless a sl��rter notice pe�•iod, or no rec�ui�ernent of iiotice, is otherwise specifcally p�•escribed lierein. B. TERMINATIC)N AND REMEDI�S �N DE�AULT BY LESSEE, In the event of ar� Event of Default by Lessee, if sucl� Event of Default shall be co�ltinui�g after t(�e appiicabl� notice of default period provided i�� this Lease Agreeinent, if applicable, Lessor inay declare this Lease Ag�•eement, and all rights a�1d intecests created by it, terminated, If Lessee elects to te�tini�iate, tl�is Lease A�•eeinent will c�ase as if tl�e day nf Lessee's election were the day origi�lally �xec� i�� the Lease Agreernent for its expu ation. L�ssor, at its option, �nay resuine possessioii af the Leased Pr�inises a�id re-let thean for khe ren�ainder of the Terrn ak the i•ent abtainable for the aecaunt of Lessee, who sl�all �na%e �ood any deficiency the�•ein. 2. Any ter�nination of this Lease Agi•eeinent shall �lot reli�ve L�ssee fi•o�n tlie obligatiar� of payuig an}r su�� or surns due a�id payable to Lessor u��c�er the Lease Agree�nent at the tiine of termi��ation and/ar any claim for dan�ages th�n ai• �re�iously accruing against Lessee under this Lease Agreement. Ai�y such tei-�ni��ation shall not p�•even� Lessor froin enfarcing tl�e p�ytnent of any sucli su�n oc suins or clai�n for damages by a��y �•emedy �rovided by law, contt•act, ec�uity, o�• otherwise, inciuding without li�nitation, recaveruig d�mages fi•am Lessee ari�i�ig fi•am or related to any default undei• this Lease Agr�e�ne��t. All Lessor's �•ights, aptions and re��edies uncier this Lease Agreeznen� shall be const�•uec� to be cufn�Iative, and no one of ti�� is exclusive of the ather. Lessor inay pu�•sue any ar all sucli remec�ies or any othe�� remedy or reli�f provided by law, cantract, equity or r�therwis�, whether• or �iot exp�•essly stated in this Lease A�eeinent. 3, In the eve�it of an Eveni of Default by Lessee, Lessor may, but sha11 nat be required, remeciy the Eve��t of Deiault hy any necessary action and, in cannection witli such cemedy, may pay ex�enses a�id costs relatec� to sucli Page 23 curative efFo�•ts. I�� sucl� event, Less�c s��all pay Lesso�� for a11 sui��s ex�ended o�- obii�;ations ii�cur�•ed by Lessor i�� cont�ection witl� curing Lesse�'s default. 4. Lessnr aild Lessee agree that, �Ol' ille �)Ul'�)OS�S O�j30Sflllg IlO�iC£ �ll'�SCT'lt3�d by Sectio�i 93.002 { fl of tl�e Texas P�•operty Code, ti�e fr•ont door of' the Leased P�•emfses is t1�e �zorth faci�ig ha��ga�� door at 4862 Lockheed. C. EVENTS OF DEFAULT OF LESSOR. T��e ter�� "Eve��t of Default", as used l�erein, si�all inean that Lesso�• defaults i�� }�erfa�-mi��g a��y te�-��a, a�;ree�nent or covena��t that Lessor is requi�ed ta pe�-Fo�•�n u��der t}�e Le�se A�eement, and such default shall nat t�e curec� witl�i�� ii��ety {90) days after writte�� notice thereof to Lessoc desc�•itaing witll specificity tl�e claim of defauit, along with ail requu•ed actio��s nf Lessc�r io cu��e such default. It is exp�•essly agre�d a�id stipulated that u��til such ��otice nf default is �rowidec�, a�id suc�� cui•e period iias ex��ired, nn sucli act or event shall be dee��ed a�i Event of Default by Lessor l�ereunder. D. REMEDIES ON DEFAULT BY LESSQR. �f Lesso�• defauits in �e�•forn�i�ig at�y te�•n�, agreeinent or cavex�a��i that L�ssor is ��equued to �ei'�OI'ill u��de�• tl�is Lease AgreeYnent, Lessee t��ay, after z�otice to Lessor, as p�•o�iaed in Sectio�i XIV.C., �•emedy the Event af Default hy a��y n�cessa��y action a��d, it� con��ection witl� such remedy, may pay expenses. Lessa�• shall pay Lessee aIl sums �•easonably expended or reaso��able abligatio��s incurred by Lessee in conn�etion with �•e�nedyi�ig Lessee'� default, so �o�ig as such claiined default is an Event of Default l�ereunc�er•. Less�e may, if not so �•ei��bursed, deduct tl�e costs and expenses fi�oin �•ent subsequently due undex• this I,ease A��eement. XV. ASSUMPTION BY UNITED STATES G4VERNMENT Lessee, subj�et to the tex•��s hei�eof, may tei7�linate this Lease Agreeine��t and its abligations liereund�r, by p�•avidin� thii-�y (30) �iays written notice, tl�lDl] OI' Wlt�llll t11ll'�� (30} clays after the assuinptioi� or reca�ture by the United States Government, o�• any authorized agency the�-eof, of tl�e a�eration of the Auport a��d tl�e Leased P�•e�nises, to the resultix�g exte��t tl�at tl�e uses af the Leaseci Preinises, as prescribed i�� tliis Lease Ag�•eeinent, ca�uiat effectively aud practicably �e operated by Lessee, ui tlle reasanable judg�n�nt of Lessor, XVI. MISCELLANE�US PR4VISIONS A, ENTIRE AGREEMENT. Tl�is Lease A��e�met�t coiistitutes tl�e ei�ti�•e understa�ic�i��g hetwee�i tl�� pa�•ties a�id as of its Eff�etiva Date supersedes all prior or inc�ependent agreement� between the p��ies caveri��g the subject �natter l�ereof, A�iy cliange or modification llereof slfail �e in v�rrituig duly authorized and sig��ed by botl� parties. S. BINDING E�FECT. Ali cavenants, stipulations and agreeme��ts l�e�•ein sl�all zu�� W1fI1 �l�e ta��d and �XteIlC� �O, biiid and inure ta, tlle benef�t af tl�e le�;al rep��esentakives, successo�•s and assigns af the i•es�ective }�a�•ties �iereto. Page 24 C. �EVER.ABILITY, If a provision hereof sl�all be fi��ally decla�•ed void or iliegal by �iiy court or adininistrative a�ez�cy l�avi��g jui•isdiction, tlie et�tire Leas� Ag��ee�nent shall �iot be ��oid; but the ��ernaining pi•ovisio��s s��all continue in effect as nearly as l�ossible in accardai�ce ��vith t�ie original inte��t of the pu-�ies. D, N4TICE. Notices o�' at��e�' coiiununicatio��s requi�•ed or pei•ii�itted to be given unc�er this Leas� Agceement jnust be {i) give�� ui wrifing a��d persanally delivered or �naiied by pr�paid ce�•tified ot• cegistered inail, return r•eceipi �-equested; oa� (ii) tra��s��it�ed by telephonic facsi�nile, as follows; 1. Ifto Lesso�•, acidressed to: City Mai3ager City of De��tan 215 E. McKinney Street Denton, Texas 76201 Fax No,940.349.8596 With co�ies ta: Aupoi�t Managea- 5000 Au•�ort Ra�d Denton, Texas 762�7 Fax No, 940. City Atianiey 21 S E, McKinney Dento��, Texas 7G201 Fax No. 940.382.7923 2. Ifto Lessee, addressecl to: Mz•. David Sinith 8920 David Fort Road Argyle, T�xas '�G22G-4141 With Copies to: Any notice �ro��ided hex-eui shail be cieemed to have bee�� given (�vhetile�• actually Page 25 received ox• ��ot) a�� the d�y it is persot�ally delivered as aforesaic�, or, if a��ailed, on the thi�•d day af�e�• i� is i�aailed as afo�•esaid, or, if trat�sii�itted by tele�l�anic facsi�nile, on the day such i�otice is trans»�itted, w1�icllevex• is ea�`liest to occu��. Az�y pa�-ty may chaiige its address for the pur�oses of tl�is Lease Agree��ea�t by givuag notice of such cha�ige to tl�e other parties pursuant ta this Section XVI.D. E. HEADINGS. The headings useci ui this Lease A�•eei��i�t �e intended fbr canvenience of refere��ce only and do not c�efine pP �12711f tli� scope or meanii�g of any provis�on nf t�vs Agree�nent. F, G�VERNING LAW AND VENUE. THIS LEASE AGREEMENT IS TO BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND IS FULLY PERFORMABLE IN DENTON COUNTY, TEXAS, EXCLUSIVE VENUE FOR ANY ACTION RELATED TO THIS LEASE AGREEMENT SHALL BE SOLELY IN A COURT OF COMPETENT JURISDICTION 1N DENTON COUNTY, TEXAS. G. NO WAIVER. No waiv�r by Lessor or Lessee of any default or b�•eacli of covenant or ker�n of tkiis L�ase Ag�•ee�ner►t may be treated as a waiver af any suUsec�uent ciefault or breacll of the same or any other cavenat�t or te�-�i� of Yhis Lease Aa•ee��ent. H, N4 AGENCY. During a11 ti�nes tliat tl�is Lease Ag�-ee�ne��t is in effeet, the a�arties a�ee tliat Lessee shall �iot in a�iy evej�t be dee��ed an a�;ent or �rn�loyee of t�e Lessor, nar sliall this Lease Agreeine�it be cai�strued to create oz• ca�stitute a joint entei•prise. I. FORCE MAJEURE. Noz�e oi the Pa�•ties sl�all be in default or otherwise liable fox• any delay in or failure o�' p�rfor��lance �nder this Lease A�•ee�nent if such delay or failu�•e arises by a��y reaso� �eyond theiu� reaso��able cont��ol, including any act afGad, any acts of the cami��on ene��y or terrorisa�a, the eleme��ts, �artliquakes, f�oads, fices, epide�nics, riots, failures or delay iti tra��sportation or conununicatio��s. However, lack of fi�z�ds s��all i�ot be dee�ned to be a reaso�i beyond a pa��ty's reasoi�able control, in tl�e event eitl�er paE�ty he�•eto is not able to perfarm u��der thi� Lease A�•eement due to an alleged eve��t oiforce �i�ajeure, as s�t forth hei•ein, sucll pa�-ty si�all provide xiotice to t�e other �arty, on or before fi�Te {S) cale�lda�• days afte�• the accurre�ice af sucl� evex�t (i} speci�cally descri�iing such fa�'ce majeure eve��t; (iij describi��g with s�eeificity the acts to be taken by the pa�ty elaiining for•ce �naj�u�•e to ren�edy tl�e force majeure evenk; and {iii) the estimat�d tu�le to �-ej��edy the for•ce �najeu�•e event. In ti�e eve�it tlae notice as set fo�-�h I�erein is taot pz•a�ided it shall be d�e��ed fo�� all purposes tliat �io such force inajeure eve��t i�as occurred. J. RELEASE OF LESSOR. If Lessor seils a�• t�•a�jsfers all or �a�•t of t1i� Leased P��e�nises af�c� as a}�ax•t of tl�e t�•a��sactio�� assigns its uiterests as Lessor in this Lease Agreen�e�lt, tl�en as of tlae eff'ective date of t��e sale, assig�ime��t or tra��sf��•, Lesso�• skiail l�ave na fu�-tl�er liability under tliis Lease to Lessee, except with respect io liabiiity matters that have accrued and at•e u�isatisfiecl as of such date. Underlyii�g tliis release is the pa��ties' intent tl�at Lessor•'s cave��ants anc� oUli�;atio�ls, express and ij��plied, uildcr this Lease Agreei�lenf will buid Lessac an� its successors and assigns only during a��d �� •es�eck of Page 26 td�cir ��lcccssarre ��•iac�s ofc�wl�ersl�i�� €�i'�hcut,cle�•lyili� fee es�ate c�i"tll� Le��ec3 P�•e�7�ises. I�. LESS�E I��I�EREl`�TCES. Ii� �I�e e�feiyt i�ec��lest�c� l�y l.essc�i°, Lessee sl�all cielierei°, �i�o�1� tii��e t�a tt��1e as re�;t�est�tl, c�•�c�it at�c� k��i�llciir� i•efer�il�es as Lc,ssc��• �a��y c�e�s€��l�k�ly rec�ue�t, d��a•i�� t11� te�-�i� of tl�is Lcase A�;�•eet�lent. L. MEM�QRAIr1DL1M �F L�AS�. �J��o�� •eql�es� c�f eitiie�• �a�i-ty 1-�ereta, tilc ��rtie;s �ll�ll exect�te a Memc�i°��ici�ai�l of Le��e tt�i• tlle �7ir�•��se t�f ia��k�aM•ti�x� t� tl�e �au[�Iic �l�tie� of tl�e existet�ce c�f �l7is Lct�se A�t•eei��e�lt, �nctlnr its s�i%se�ue�it �ti7e�7c�i�lerit, i�l�aclitic��tic�i� c�i� ea��Iy te�°��ia�atic��j, to l�e �Ilecl i�� the F.eal Pr��7et�ly Rec�i•c1s �f I�e�7tc�ty �n��iiky, Texas. M. AIRP4RT SPO�SC7R. Ncatti�ri�hst�l7cli�i� ��Yy �rar�isi�rl c��ltaitY�cl lle�°�i�7 tc� tlle cc�l�tl•ary, L�sse�l• 'n�y liitiik ar t�mpc�r°�ril�A c��tt°��ct �ccess tc� tiie Le�secl �i•er�lises �nc�'c��• �'ul�lic Ai•e��s �ai'tl�e �ir��ort i�� co��cctic�i� «�it�l c�r i•elGiteci tr� e�7e��ts �cclr��iR�� t tll� Ai��3Q�-t. Lessee s�i��ulat�s that Lesse�r s11�11 l�azre s�:ic11 ��igilt t� li�i7it o�• te�i�l�o�•at•ily ol�struct st�ch �cces� aixci liei-el�y rele�ses Le�sar, its officei�s, �lecte�i ofF'ic��ls, age�lts �iicl ei��lo}�ees ti�c�»� �r►y loss�s, ciatna�es o�� clai��s caf �i�� kitici �a�• ty��c that Lesse� n��y l�t�ve �•elatec� to sueh 1'ain�t�c� oi• aUs�ructe�i access. Ui�lcss t}lis I�e�sc; A�;�•��ie��t c�f��e��tuise �llc��i=s su�ll c�b�kiti�cti�i7 c�t• Lessor a�ici Le��ee otlie��ise �greea Lesso�� sil�ll 'lt�k ec�nzpletel� o�?sti�kict �cce�s t�a t�le I�e�sec� PrerTlises tc��• � periocl ii� excess of t��e�lty-fQUr- (2�) c�lYS�cuti�� 17c��i�s rcl�tec� ta such s��cial e�fe�Yts. N. SLTBLESSEE� AI`�I� ASSI�NEE�, It1 t%e e�Tent tliis Lease Ag,�•eei�leii# pi°c�vicies a��lic�i�ilit}f of ati}f caf' it5 ��i°c�visiails to sub-lessees or assigtl�, stzcl� �ji°ovisi��i S��s�ll I�e cieeincci to tne�� sc)lely the su�-lessces a�• �ssi��s of Lessee, �s r��ay t�e �a�r•j�-�i�teci k�y C.essc�r. �. TIM� C�� ESSENCE. It is expa`essly ��reetl �y Lessot` at�cl Lessc� t97�t titne is Qf t��e e5se�lce ��,�itt� �•es�aeck ko t11is Lease A�x°ee��ie�at, IN �TITI�ESS WHEREOF, t11e ��ties �aave cxec��tec1 tllis Lc�sc A�t�ee��e��t ��; t�f t�le �f�ective 9��e fil-s� a�QVe ��frittc��. GITiC OF I)�N`�C�N, T�}�AS, LE��aI� ��W -°� �— __ _ � ��r � �� x� __ BY � �"�� a. _ �--;�-�� ,a � _GE�R E �. CAMPBELL —___..... _ CITY MA�VAGER A`TTEST: J�I�NITER �Vf1.LTET��, C1TY S�C��ET�.I�Y P�c�e 27 C A,PI A,NITA �LJRGESS, �I`I"1' ATTC��I�Y BY. ,,�'�';.�` �,�.` � }�`'w��'' � l r �� . _ r � � � � ,, ,�- ' LES�EE: f3'Y: - 1�1 AIvI�: t ) �r�J� � �� YY�`� �� TITL,�: ��{�� zs A�I�NC}WLEI�GMENTS TH� S"�ATE aF TEXAS C�UN'1"5� QI' I�EI`�TC��ri � �.�� , Tl�is i�r�truzl7eiit «=��s G�c�C�lo��vlecl�ecl l�efie�z•e r�ze �i] tl�e, ,�� cit�y �fi ��'�� __� , 2012_3 �Y G�orge C. C'�ttn��cll, City NI��a�;�,• Uf tl�e Cit� of Den�c�t�, ex�s, c�� 9�el��lf e�f s�icl t��nici��afity. �� r, �� , �� "� � ` m t�+�t�scy N�EMrer �i �te ��f ir��c�s � z �'I� ��€°€��sl�€� �.x��r�.� ;,s�b'r;s�.''' ��?��7r`��?�� 8 �/, ��'� � rri r I t'S .�....�.... ,,.,..M.w��.� �«- �..w,,.w.,.,.. � �_ . _. � .. ... ..,.: ; TH� STA"�"E {�T TE�A� � GC)UNTY OF D�:I�TON ,. ��..� -� � � NO AIZ:Y P' I,1C, S"i'ATE QF T�� LESSE� NOTARY T11is insti��i�leigt ��l�s a��io�,vlet��etl befQt•e i�1e oii tl�e �'� �( cl�y of �� `� ti� ��"�' , 2012 �y '�s�� V'V f�.., l) j�V� r�"� _ �__�� -�� _ � ��` � NCaT�RY 1't1�3�IC, STATE �� TEX � . ...,d,�.y.�,,.. �+p,X A{� � k �.� �, 5T4RI M�HAFF�1` �/y Ca�rr�nission �cpfre� ��' S9ptentber 21 � 241 � -,n,..,��r�.,��.,,.r�� o.., R.�r.�� F�age 29 i�^ i��l� ��ratr,�� T��,�� CIt1�� 4� �t�+��^PtkiF7�`!�[S � . � . !� bFV�JMa�s.com D15CLA�M�� Thls dala has been camplled far NCTCQG. Ua�ious offiicial and uno�cial saurces �vere �sed fa gath�;r thfs lnfarmat�on. Every �ffort was mads to �ensure lhe aceuracy csi fhEs data„ hosrever, na guarantee is given ar impli�d as io khe aceuracy of sald data. AIRPORT AGREEMENT �862 LOCKHEED, DENTON AIRPORT ATTACHMENT "B" Lessor I�nprovements [NONE: TIre1•e i��ill be rro itrrpr�o��etlielrts p1•aviclecl by Lessor, �,�cept as �ua}� be set faj•tlr i11 At�ticle II.F., ' ficcess to Utrlities ".j