Loading...
2012-053 FILE REFERENCE FORM 2012-053 Additional File Exists  Additional File Contains Records Not Public, According to the Public Records Act Other FILE(S) Date Initials Lease Estoppel Agreement – Ordinance No. 2012-110 05/15/12 JR Qr�r��var�cE �vQ. 2� 12�� � � AI'�i QRI�INANC� AUTHORIZ�NG I"HE GITY MAi`�A�E�{, C�R �IIS DE�IGNEE, TQ �XECUTE ON BEHALF �F `FH� CI"I'Y C�� D�NT�N AN AIRPC�T�T L�A�� AGR�EMENT BET'GVE�I`�1 TI-IE CITY t�F DENT�I`�1, TEXAS AI�1D HA.N�ARS PLUS, L.L,C. FC7� `�'HE FR�FEI��'Y L(���1`I'El� AT �846 LflCK�-iE�D, DENTC)N 1VIUi`�ICIP�L AIRP�RT, �i�D PItaV�Dll`�iG AN EF`�'ECTIVE DATE. W�IERE�S, cei•t�in ieal p��ope�°ty tz�c��� �he De�ltor� Ivll�z�icipal Ai►���o��t is ownec� hy �Iai�g��°s �'lGis, L,L.�. (Le�see); ��ici, W����tEAS, tl�e City of l�e�ato�� ar�d L,�ssee �lesir� to e��te�• i��t� a�routic� le�se a�i•ee���e��i f�� �t�pei•�y «pa�� wl�icl� Less�e's re�l p�°ape�•ty is l�eated; �tic�, WHEREAS, �he City CQ��i�cil �eer�ls it itl t�ie public itit�i°e�t to ���+i•�ve t11e ��ase c�f Ai�pQt-t pi�c�pe���y �s �r1 Ai�•�aoi°t Le�se Ag►•eei�►�nt3 I`�C�iv�,?� TIIEIiEFC7RE, T�E CC3LJ�ICIL OF THE �1T� (3l� I�ENTQN �I�REB� O�A�1�. S�CTIQN l, The �ity Mari����• �r his ciesi�;�iee �s 1���•e�y a��tlia�°ized ta exec�►te at� Ai�•�a��t Lease Agi°eemet�t l��tweezi the City af Dentan at�d I�a���ga��s Pli��, L,L.C. at tlle I7etztar� I'��i��ici��l Ai��oi�t �vl�ic�i is attaclled ta a�Yd n��c�e ����rt of t��is c��•ciiz�a�YCe fo�° all �au��poses anci to �xerci�e all ������fs �t�cl cl�.ities c�f tl�c City of I�er�t€�it kr�l�i��• tli� Airpart Lease Agi•eeinei��. S�CTICl�i 2. This c��•�inance sliali veco�t�e effectiv� im���e�liately u�Qn ifis ���ss�g� ���c( ��}�rov�l, �ff�„ � �rF� �,'� PA�S�D AI`�1D APP��VEI� tl�is �he (,:' _ clay o� �i''i;� �'�'d� ' , 2(�12. .< _�, �) ��y f ; f rca��,t�<,�t�c�� % �_�����.� ��� �.�� � _ �^y7-� � lY! �Ei.11 tl. �SJ1`tl\VLJ � �j lYl� Vl'� � A'�'TT'�T. JEN�IIFER WALT�I�S, CITY' SECT�ETt��i' BY; �� I � �� � � 1 0 % �: � � � .,�� ,� � .. �F . ; .. � ..- � APPR(�VED �S T�0 LEGA� �'�QI�Ni: �'S.hII`�`A BURG�S�, CIT`� ATTORNEY . , � ,� � � � , f �; � �. � F�Y: ��'" ��'.�``� �'� :,� �---, , ,.f,:- ,�. .f ' ° o:\airport\council aixport commi.rtee meetinqs\2t112 cac mtg info\2-28-12\it�m 4 - hangars plus -9846 lockheed\�846 lease agmfi. mn-qh - 2412.d�c AIRPORT LEASE AGREEMENT COMMERCIAL QFERATOR 4846 LOCKHEED, DENTON AIlZPORT Tlus Lease Agr'eei��ei�t {the "Lease Agreement" o�• "Agreement") is niade and executed to b� effec�ive as of ilie _1Sth day of _Marc13 , 2012 (tlie "Effeetive Dat�") ak D��itor�, Texas, by aald �eh�veen the City af Dej�to��, Texas, a m�micipal corporatiail, hereii�after refei•re�i to as jjLesso�", a��d Hangars Plus, L.L.C., herei�laftsr referred to as "Lessee". WITNESSETH: WHEREAS, Lessor no�v ow��s, cont�•ols aiid operates the Denton Mu��icipal Ai�po��t (E��C 44Aiiport") iz� ti�e City af Dentoi�, Cou��ty of Dentan, State of Texas; a�ld WHEREAS, Lessor and Lessee fi�-st entered 'uito a certain Con�ii�rcial Ope�•ator Lease Agre�ilient t��at becaii�e effecti��e o�i tlze ���st day of DecemUer I989 {the "Origi��al Lease"} azut as a�'esi�lt of �7arious auiend�lients and i�iodif�cations made tl�e�-eto, t��e 0�-igi��al Lease expi�•ed tlie 315` day of A�ig�ist 2010 and lias bee�� exte�ided by m��ti�al agreemei�t l�et���eeii Lessor a�id Lessee oi� a ii��irt�i-to-n�oi�th basis; a�id WHEREAS, tl�is Lease Agree�ne��t is i��ter�c�ed to becoine effective as provided 1lerein a��ci ui�der teri��s specified he�•ein, NOW, THEREFORE, for aud in coi�sideration af tl�e ��z-o���i�es a�id tl�e za�ti�hial cavenants co�liained in tl�s Agreetne�lt, the �ai�ties ag�•ee as follotivs; I. GENERAI., CONDITIONS OF LEASE AGREEMENT A. �RINCII'LES OF OPERATIONS. Tl�e ��igiit ta caiid��ct aeronautical and relatect activities for fi��•nishi�ig seivices to tiie pi�biic is gra��tec� to Lessee subject to tlle terms hereof and ta Lessee agre�i�ig: 1. To fiirt�rsh said seivices on a fai�•, equal at�d �aot l���justly d�sc�-iii�i�lato�y basis to aIl users thereof; aud 2, To cha��ge fair, reasoilable a�1d not unjustly discriini��atoay prices for eacl� u�ut or seivice; pr•ovideci, tilat Lessee may be allo��ed to make reasonable a�id ��ondiscriminatoiy discou��ts, �•ebates, o�- atl�ez- six�ila�- types of price reductians ta �7oltime pttrchasers. B. NON-DISCRIMINATION. Lessee, for itself, its perso��al representatives, si�ccessors, and �ssigl�s, as a part af the cflnsideratio�� l�er•eof, does llereby eovenant and agree as a cove��aiit r�uini��g �vith tl�e land that: l. No p�rson o�� tl�e g�-ol���ds o�'�-ace, religion, calar, sex, or national origij� sllall be e�ci��ded from partici�atian i�i, denied the benei"its of, or be otherwise subjected ro discri���inatio�l i�� tlie use of said facitities; 2. lil tl�e eo�ast�ti�ctian oiany i����rovements o��, ovei•, or �i��der st�el� land a��d the fiui�isl�in�; of se�vices tl�erean, ��o pei-so�l on tlie g�•ounds of raee, ��eligio�i, color, sex, or t�ational o�-igi�� sk�all be excluded fi-om participatiou i��, denied tlie benefits of, or otliea��vise Ue subjected ta disc�-i���i��atio�i; 3. Lessee st�all use tl�e �i•ei��ises i�i co�ilplia��ee ���itli �il other P�C�l1Ii'�lll�lli5 iinpos�d by ar �t�rsiza»t to Title 49, Code of Fedcral Regi�latio�is, Departr��ent of Tra��s}�ortatio�i, Si�btitle A, Office of tl�e Secretaiy, Part 21, Noaac�isc��i���inatio�� i�� Fed�rally Assisted P�•ograil�s af the Depa�•tmei�t of Transportatio�� - Effech�atioi} of Title VI �f tl�e Civi1 Riglits Act of 19b4, as said Reg��lations �nay be a�x�e��ded. C. RIGHT OF INDIVIDUALS TO MAINTAIN AIRCRAFT. It is cle�rly i�uderstooc� vy Lessee tl�at rao rigl�t ox- pri�ilege l�as �eei1 granted in tliis Ag�•ee�l�ent wliieh would opei•ate to pi•e��e��t a�ry p���son, firm o�• corparation operating aircraft on tl�e Aiiport $•am perforilli�ig ai�y seivices on its otivn aircr��ft with its owx� en�playees �li1C�L1(�llig, but �iot limitec� ta, ii�aintenance anci �•epair) that it iilay choose to perfoz•a��. D. NON-EXCLUSNE RIGHT. It is LlI1C��15i00CI and a��e�d tl�at notl�i�i� IIe�•ei�� coiatai�ied sllall be cai�stru�c� to g�•a��t or authorize tlie gra��ti�ig of a�� excl��sive right witiv�i tl�e �i�e�iun�; oiTitle �9 U.S.C, ��0103. E. PUBLIC AREAS. "P�il�lic A�•eas" or "Public Area" is tl�at �ortio�i oi tl�e Aiiport, «�llich is i�ativ or hereafte�- coilsidered 3�y tlle FAA, TxDOT, tlle City af De��to��, o�� a»y otl�e�� z�eg��latory age�zcy �vith oversight of the Aiiport to be tile o�li�ation and respoi3sibility of the Lessor to a�ei�ake a��d ���aiiitaiil far the commo�3 use ai�d be�lefit of tlie ge���ral aviatio�� p�i3�lic. The Ai��part Pti�lic Area incii�des, ��titllo��t limitation, aily air navigation facility or sh•uchi�•e t�esig��ed and iijte��cled to seive the general pubiic nat sp�ciiically s�ibject to an exclusi�e i�se ag�•ee�nent such �s a iease agree�nent, license or pe�•t��it, Tl�� Ai�part Pu�iic Ar�as include all r�inr�vays, taxi��Tays aizd ot��ea- cozn���a�i-use pa�7ed, gl'a�eled or h�r�ed areas and tlieir respective protectio�l zo��es, safety areas audlor object �Z-ee a�-eas; ai�y otl�ez- facility or faeilities at tlie Aiipart tl�at are eligible fo�• feder�l or state grants or s��bsidies a�va�•ded on tl�e Uasis of tl�eir se��rii�g tl�� be��efit of the public (i��cl�idi��g i�znways, taxij�rays, velucle streets a�id alieys, p��}�lic aircraf� �pronsltarji�ac, ��ehicle �arking areas, and draii�age st�lichires); ficld ligl�tiil�; and associated beacon and ligllted ���iY�d a��d la��di�ig ciirectio�i indicatars; sec��rity, fire, a�id e3�le�-ge��cy i�leciical facilities; directio�ial si�is; aud peri��leter or �•estricted aceess £ences. Gei�erally, tl�e P���lic Area is tlze tatai a�-ea a�id Facilities of tlle Ai��port e�clusi��e of all i�oiz-�ublic ai�po�-t facilities, a1�d �7�ay ��ary fro�1� tii��e ta time depea�di��g on t��e total la�ld comprisi��g t��e Aiiport a��d tl�e change of laizd use at tt�e Ai�po��t. Page 2 F. LESSOR AND THIRD PARTY RIGHTS. Lessor reserves tile rigl�t to fi�ctiier develap or improve thc P���lic Area of tl�e Airport and any otlier �roperty ai tlie Aii-�ort ��ot part o�tl�e Leased P�'emis�s as it sees fit, rega�•dless of the tiesires or vie�vs of Lessee, aiid wi�l�ol�t inte�•ferei�ce oa- liincirance. 2. Lessor sl�all l�e obligated to inai��taii� a�ld keep in gooci re��ai�• tlie Pt�blic Area, togethe�• witl� the r•igliC ta di��ect and cont�•ol all activities of Lessee i�i tl�is �•eg�rd. 3. Duri��g tiine af �var or i�ational emergei�cy, Lessor shall l�ave t��e �•ight ta lease tl�e Pi�blic Area o�• ai�y ��art thereof to the Ui�ited States Go�e�-iu��ent �or �iiilitary o�• ��aval l�se, ai1d, if sucl� �ease is executed, the pro��isions of tl�is insti-��i�ient i��safar as t��ey a�'e inco��sistent with the pi•ovisia�is of tlie Lease A�r�eei�lei�t to t�le Gove���ii7lent, sl�all be st�sper�ded. 4, Lessor i•ese�•ves the riglit to take a��y actio�i it coiisiders ��ecessary to protect the aerial ap}�roacl�es of th� Aii�ort agai�lst obstil�ction, tagether with tlie j•iglak to preve�lt Lessee fiom erecti�ig, or perznitti��g to be erectet�, �i1)� �iuildi��g or atl�er structii�•e on or adjacent to th� Ai��o�•t �vllicil, i�� tl�e opia�ioii of Lessor, Evol�ld li�uit the �isefiiL�ess or• safety of tlie Ai�po�-t ar constit�ite a i�azard to aircraft or to aircraft ��avigation. The Less�e I�n�roveme��ts as cl�rre��tly conte�n�lated i�i Seetiou Z�.D. do ziot violate tlus provision. 5, Tl�is Leas� Agreez��ent sl�all l�e subordinate ta the provisions of any existi��g or fi�h��•e ag�•een�ent beriveen Lessoz• ai�d tlie U�iited Siates or agency tllereof, ��elativc to the operatioi� ar mainte��a�ice of tl�e Airpoi-t, 6. Tl�is Lease is gi�veii anc� entered i��to aEid s��bject to all laws, ordin�ic�s, stats�tes, r�il�s, i�egttlations, direciives, permits, o�- stai�dai-ds aF any go�ler�mleiital atitho�•iEy, entity, or a�ency {inel�idia�g� �irlt�a011k �1Tlll�ail011, tl�e City of De�itntz, Texas, tlie State of Texas, the �'edez-al Aviation Admi��istratian, and the Te�as De��arttne��t of Tra��sport�tion), whet��er iao�i� in existeiiee o�• iiereai�e�- e�iacted, ado�ted o�� imposed, a��ci including, witi�out iimitatio��, any aizd ail g�-ant agi'ee�n�nts oi• gi•ant assura��ces now existing or as liei•eafter a��eed to, ado�ted or imposed. II. LEASED PREMISE� Lesso�-, fo�- and i�1 coi�sideration of, a�id s«�ject to, ti�e te�-���s, covena�lts and conditioris set fortl� iz1 tl�is Lease Agr�en�eiit ta be kept by Lessee, does hereby dez��ise a��d lease ��i}to Lessee, a��d Lessee �oes hereby Iease fi•o�n Lessar, for tlie lease tern� desc�ibed ii� Article I�I, tl�e foliowing described la��d sitt�ated in Dentozi Co��nty, Texas: A. LAND. A tract of land, being approxin�ately _2,000_ squa��e feet or 0.0459 �cres, Page 3 as described o�i A�kacl�nent "A", s�tel� attac�uuent being incoiporatecl herein by ��efea�e��ce (tlie "Leaseci Premises"}. Togetlier rvitl� tlze ri�I�t of i��g�-ess arjcl egress to the Leased P�•emises and El�e rigi�t in co�l�nloia i��itl� otliers so autliorized of passage, upoi� the Public Area, st�bject to r�asonaUle a-egt�latians l�y tlie City of Deaiton aud s«cl� �-ights sllall eYte�ld to Lessee`s e��lploy�es, ���ssen�e��s, ��atroi�s aild invitees. For pu�-�os�s of tlais Lease Agi�een�ent, the te�-m "Leased Preiiiises" si�all x�lean all properiy located �;�itlii�� tl�� ��ietes �nd l�o����ds descr•i�ed i�i Attachme�rt "A", ia�cl��ding all Lease I�n�rovetnents {as defned �elo�v) constr�icted ��- ass�uned by tlie Lessee, �i�t �iat i�icli�dii��; �ase�nents or �i•o�erty owned and/or conti�olled �y t11e Lessor, if a��y, as ci�scribed o�� Attaci��ieiit "B". B. LESSEE ACCEPTS LEASED PREMTSES. EXt'EP�I' AS EXPRESSLY PROVIDED �T TI�S LEASE AGR��NIENC, LFSSOR M11KES NO REPRESENTATIONS OR W�RRANTIES �THATSOEVER, EXPRESSED, STATUTORY, 4R IMPLIED, INCLUDING, WITHOUT LIMITATION, AS TO THE DESCRIPTION, TITLE, VALUE, QUALITY, QUANTITY, PHYSICAL AN.D ENVIRQNMENTAL CONDITION OF THE LEASED PREMISES AND/OR MATEILIALS CONTAINED OR LOCATED IN, ON OR UNDER THE LEASED PREMISES, THE NATIJRE OF THE PAST OR HISTORIC USE 4F THE LEA�ED PREiVIISES, ANDIOR MERCHANTABILITY, SUITABILITY OR F�TNESS FQR PURPOSE OF ANY �F THE LEASED PREMISES, ABSENCE OF LATENT DEFECTS AND COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO `I'HE LEAS�D PREMIS�S. Lessee furtl�e�' ackuo�vledges tl�at, iz7 executing and �ccepti�ig tl�is Lease Ag�•eeme�lt, it 3ias �•elied solely �ipon its i�ldepei�de�it e�Jaluatio�i and exr�n�inatio�� af tlie Leased Pren�ises, a��d p��biic ��eco��ds ��elati��g ta tlie Leased Premises a�id tlie i�idependea�t eti7aivatio��s and studies based the�•ean. Lessor n�akes ��o wa�•ra��ty or re�rese�ltation as to tlie acctiracy, cor�Ipleteness or i�sefi�lness of a�1y Iii�OI'tTl�ilOil fiu•nisl�ed to Lessee, if a��y, �vhetiler firr��ished t�y Lessor or any third party. Lesso�•, its afficers, e�1�ployees, elected officials aizd age�lts assi���1e ��o liaUility for the acc�n�acy, co��i}�leteness or ��sefi�lness of a��y mate�•ia� fi�niished by Lessor, if any, or any of i#s affice�•s, e�n}�loye�s, elected officials a�id/or• agez�ts, a��ci/or ai�y atl�ei- pei•son or party, if any aixi Lessee hereby �•eleases s�icl� pa�•ti�s from and agaiz�st a��y clai�ns related to si�cll n�atters. Reiia�ice on aiiy material so fii�7iished shall �iot give rise to a��y cause, elaizi� ar actioiz agai��st Lessoa�, its offieers, einplayees, elec#eci officials audlor ageiits, and any st�ci� reliance shall ]�e at Lessee's sole risk. THE EXECUTION AND DELIVERY O�' THIS LEASE AGREEM�NT IS ON A "1N��ERE IS", "AS IS", AND "WITH ALL �'AULTS" BASIS, AND IS WITHOUT REPRESENTATION OR W�IRRANTY, EXPRESSED, STATUTORY QR IMPLIED, 1NCLUDING, BllT WITHDUT LIlVIITATION, AS TO TITLE, THE DESCRIPTI4N, P'HYSZCAL AND EN��IRONMENTAL CONDITION OF THE LEASED PREMISES AND/OR MATERIALS CONTAINED OR LOCATED 1N, ON OR UNDER THE LEASED PREM�SES, THE NATLJRE OF THE PAST OR HISTORIC USE OF THE LE�SED PRGMiSES, THE QUALITY, QUANTITY AND VALUE OF THE LEASED Page 4 T'REMISES, FITNESS FOR PURPOSE, SUITABILITY, MERCHANTABILITY, ABSENCE QF LATENT DEFECTS AND COMPL�ANCE WITH LAWS AND R�GLILATIONS RELATED TO THE LEASED PREMYSES. Lessee l�as satisfied itself �s ta tlie title, type, coilditia�l, q��ality ai�d extent of the property and �ropci�ty int�rests rvl�icli ca�n�rise the Leased Pre���ises aiid tlia i�iterests a�id riglits ��i�o��ided �y tl�is Lease Agree�ileni. C. I�VIPROVEMENTS PROVIDED BY LESSOR. [NONE: Tfrej•e tit�ill be �to 1)11J71'OV2111�11TS J)1'Oi�ICjeCI Ilj� Lessal; �icept as frray l�e set fa�tlt ijt At7icle II.F., `Access to Ui�lilies ".] D. IMPROVEMENTS PROVIDED BY LESSEE. I.essee l�as prei�iously coi�stilicted a b�iildin� consisting of app�-oxa���aCely 1428 squa�•e feei and othe�• i�11���•o��e�nents oi� tlie Leased Prernises a��cl tl�e applica�le �artioi� of tEie Pu��lic Are�, if a�1y, (the "Lease �iipi�ove���ents") �s deserii�ed iz� Attaclia��eaat "B", at Lessee's sole cosk, e�pet�se a��d risk. The ter�i� "L�ssee I�ii�r•o��ej�lents" sllall also include tliose real �3��operty aiid struchiral i»i��rovements I�avi�Ig bee�� made �riai• to the Effcctive Date ai�c� iao�v existiz�g oi� tl�e Leased Premises, otl�er tlian Lessor I�uprovements, if any. Lessee sl7all a«��1 sticiz Lessee Irnpro��e�1�e�1ts dt�ri�lg the Lease Tei-�i�, as pro�rided ii� Article VIII. Except as ��•ovideci otlle��vise i�l tllis Ag�•eei��ent, L855�� 1T1�� 110t COTISfI'E1Ct, locate, install, place or erect a�ly other improwe�a�e��ts ���a�� the Leaseci Premises o�• tlle Pt�blic A�-ea. Lesse� s11a11 also co�istclict ap}�ropriate c�il�erts o�• c�x-ai��age �s rec�uired by City oi•di�ia��ces, as tivell as atlier i�����i•ovements as d�te�•mi��ed necessa�•y i�y Lessoz• or as rec�i�ired by City oi•ciinaa�ces In adc�itio��, as a conditiox� �recedent to the effecti��eness of this Lease Ag�•eeme�rt, witiii►1 1 SO days a�ter th� Effecti��e Date of tl�is Leas� Agr�ement, Lessee sha11 provic�e in���ro��e���e��ts to t13e existi��g I�uilding on tl�e Leased pz-e�nises to inclutie a professioi�ally perforined extex-ioi• paii�t ap�lication whicii ��iatches adjac�alt l�an�ars, exterior pai�el repair if cieterior•atio�l is pi•esez�t, t�uildi�ig seal repair to i�1cl«de Y�e�v weatlle�• stri�ping, caulki�l�, i�7staliii�g prefai�i7c�ted �a��el ga� fillers at top ai�d �ottom of l�ai�gar paiiels, roaf re}�air to elil��iilate ariy �,��ater le�ka�;e and a��st�ll cancrete to cover all open area behve�i� th� existing nortl� �uilding li��e a�id Taxiivay Lima. E. EASEMENTS. Lessor and Less�e by n��itt��l �z�reenient �nay eskablisl�, o�a tl�e Leased Pre3�iises, easemeiits for pui�lic access on �•oads and taxiways. Notl�i��� contained herei�i si�all be deen3ed to affeet Lessor's riglits pravided i�� Arfiele X, below. F. UTILIT�ES. Lessee sl�all be r�spo�isible, at Lessee's sole cost a��d expe��se, far o�taii�i�ig all ��tility co��z�ections at o�- for tlie Leased Prc�nises a�1d Lessee silali pay aii cila�•�;es for �vater, eiectricity, gas, sewer, teleca���m�mications or auy otlie�' i�tiiity co�uiectioiis, tap-in fees, in�pact fees, atl�er fees or expenses of a�iy ki�lc� and for seivices filr��ished to the Leased Pi•emises dc�ring tl�e Tea���� l�e�-eof Lessee ag�-ees ta cai�tact all utility sei-�7ice }�roviders and all ather parties that may o�vn oi• claim to own under•grou�id pipeiines, Page 5 telecpm�ni��ucatio�ls, cable or• az�y akher sh-�icture or facility, priar to a��y excavatio�� or boriiig o�� a�- z���der the Leased Pr•e���ises. Lessor shall in no e�7e��t be liable or respoi�sible for a�iy cessatioi� ar interru�tioii in any st►elt utiiity setvices, IIi. TERM A. "I'ERM. Tl�e ter�l� of tIlis Lease Agree��le�it sli�ll be fo�- a pez-iod af hi,eIlty_ (20) yea�•s, CO11ll21e11C111� 011 ��iG lSth day of Marci� , 2012 {the "Coz��z��ex�cement Date") and co�ztii�t►i�ig tl�raugl� the l�tli day of Marcl� 2032, L1i11�5S ��ili�l' f�llllllla��{� liI3tI01' tll� �>a�o��isia�is of tl�e Lease Agreeme�lt {t}�e "Le�se Tern�" or "Te�-m"). B. HOLDING OVER. If Lessee holds o�Ter ��ad co��tinues in possessio�l of tile L�ased Pre��iises af�ea� tiie Ter�n oi tl�is Lease Agree�nent expi�•es, tl�e l�olding over �l�ay be co��sic�ered by the Lessar, at the Lessar's option, a n�onth to rno��tl� tenancy bi��ding Lessee to all tei-�ns a�id conditio��s as set fortl� Iie�•�in �vitl� tlie folla�ving exception: The rer�tal pay���ent dt�e Lesso�• l�ercin s��all Ue tlie a�iio��iit pe�• montl� at the last fii11 month of the Term ���•ioa� to expiratian of tlus Lease Ag�-ee�a�ent, payable or� tl�e ��•st c�ay of each il�ontil thereaftez•, �lntil tlie tei�a��cy is ter���inated as ��rovided l�erein, Tl�e holdi�lg or�er te�ia��ey n�ay be termulatec� at ai�y ti�ne by Lessor or Lessee ��pon tl�i�-ty (30) �3ays writte�l notice to the o#l�e�• pa��ty, or inay Ue teii��inated by Lessor as a remedy in accardai�ee �vitl� tl�e tei���s ai'tlus Lease, as elected i�y Lessor, N. PAYMENTS, RENTALS AND FEES Lessee cove�ia�its aud a�rees to pay Lessor, as consicie�•atioi� far t1�is Lease Agreeine�it, tl�e �Folla�ving pay�ne��ts, i•entals aud fees: A. LA�TD AND RENTAL. Rental shall be dL�e a��d payable to Lessor i�� the si���� of ri�7e�ity se��e�� eenks (S 0._ 27 ) per gross sq��are foo�, as detezn�i;�ed arzd pravided itz Attacl�ie�lt "A", said sum l�ein� sti�3ttlated lie�•ein as iive liu��dt�ed forty dolla��s (� S40.OQ �3e�• yea�• (tl�e "Or•igi►aal Rei�Y'), �aya�le in t�vo (2j eq�ial instailinents i�i the s�ii�� of t�vo l�i��lci�•ed seve�lTy dollars ($270.04) eacl� six (G) i11o��fl�s, �uith tl�e ��st pa}n��eiit to �e in�de l�po�i eYeciitioi� of tlus Lease Ag�•eea��ez�t a��ci tile seco�ld pay�11ei1t dEie oi� or l�efoi•e Septe���l�er 15, 2012. Tiiet•eafter, payments s��all be d�ie an March 15 ���d S�pt����ber 15 of cacll yea�� o� the Lease Agreez3�e�it, Lessee lias tlle optioz� to �ay a��nu�l i-entals aud fees i�i �vhole oii or befo�-e tlle 15th day of Ma�•cli at the begi��ung of the Lease Ag�•eea��e��t a��d each a��d eveiy yea�� of tljis Lease A�e�me�it Not�vitl�stauding tl�e fo�•egoi��g, the a�u�uai re��tal �vill be �•ed�iced by thc ct�rrei�t lease rate pea• sc�►�a��e foot, as adjusted t�y the CPI-U refer•enced iz� Sectio�i IV.C,, tiines tlle innnbe�• of sqtta►•e feeE comprisiilg ail easenlents estat�lished ii� accaz-dailce witlj Section II.E, Tl�e z•eaii �x-ovided hc�•ein shall t�e ��et ret��rn to Lessor, fi•ee of any loss, expe��se o�• cl�a�-ge, ia�eltie�iiig ��ithot�t Ii���iiation, inaintenauce, COi1Sf1'i1Ct1011, �•econstriictio��, t•epairs, replaeement, i�lsiirailce, taxes a�ld assessments, I'age 6 B. LESSOR IlviPROVEMENTS RENTALS. None. Ti�ere are no Lessar I���p�-ove��le��ts on t31e Leased Pren�ises as of tile Eff�ctirte Date. C. PAYlVIENT PENALTY ADNSTMENTS. Ali payz»e��ts due Lessor fi•om Lessee �1ia11 be i��ade to Lessor at tl�e offices of tlie Fina�icc Depa�•tme��t af tl�e City a� Dentai�, C��skoiner Ser��ice Division, GO1 West Hickory, De��toii, Texas, u��Iess otheawise desigr�ated ii� ��r��iti��g by tiz� Lessor. If payrnents are �iot recei�red an or befo�•e tlie 15'�' day followi��g tl�e c���e date as idei�ti%ed in Sectio�� N, A of tlus lease Agree���ent, tlie lesser of tl�e 1]]�iXiIlllkltl i1i11p11I1� 1I10'4VeC� �j� laR� a�ld a five percei�t (5%) �enalty, �vi11 be d�ie as of the 16'�' day. If ��ay���e��ts a�•e i�ot received by the dt�e date of tlle si�bseqitent inontll, an additionai �e��alty of tlie lesse�- af the ma�i���tim a�iio�int allo�<<ed l�y la«r a��d one perceiit (1%} of tlle �aupaid re�ital/fee amo��nt wili �e dt�e. Tl�e lesser of tlie i�iaximuui ail�o�i�it allo�ved by la«� and ane �crcent (1%) will be adcied oi� the �irst of eacl� s�ibseq�iei�t i�lo�ltl� �zntii tlle �i��paid rental/fee ��ay�ne��t is �i�ade. Not«�ithstaa�di�ag anytiiing h�rein to the co�ltraiy, any suci� �>ei�alty sliall �e Eii�litecl to l�ttt t�ot eteeed tlle maxi���u�l� amount pravid�d by larv, if a�ly 'I'he Ori�i��al Rei�t fo� tlie Leased P�•emises shali l�e �-eadji�sted at tl�e ei�d of eacl� hvc� (2) year �e�•iad dt��-ii}g tile Lease Te�•m, startiii� o�i tlie 15tI� day of Marcll 2�14 a�ld e��eiy t��To (2) years thet�eafte��, on tile basis of the pro�ortioii tl�at the the�� cuz•��e��i U��ited St�tes Coi�s�imer Price Ia�cie;c for alI urban co��siuners (CPI-LT} for tile Dallas-Fort Worth B���-eau of Lal�ar St�►tisties bea�-s ta the Novei��be�• 20l 1 inciex, «�liicli was 209.283 (1982-84 = l Op). Eacii i�e»tal acij��st«�eiit, if any, shall occr�r o�� tlie 1 st day of Ma�•ch, begiruii�i� 201 �, a��c� evei-y second }rear tl�ereafte�• on s�acl� date. Tlie adjust���ents i�� tiie yearly �•e�it sl�all be deter•jnined by ini�lt�plying the Qrigir�a! Re�it I�y a fraction, tlie a���zuerator of wl�ich is tlie index number foi• tl�e last mo��th prior to tiie adjust��let�t, a�ld tl�e de��omi��ator of r��hici� is tlie i��ciex nti�a�ber ap��lieaUle at the execi�tioii of tl�is Leasc Agree���e��t. If tlie prod�rct of tliis �nulti�lieatio�l is �reater tl�a�i tlle O��igi��al R�nt, Lessee sl��il pay tl�is gi-eater a���ot�i�t as the yearly rent t�ntil the tim� of tlie ne�t rei�tal adjustii�ent as called fa�• itj t��is section. If tlle prod�ict of t11is �n�ilti�licatioii is Iess tlla�a tlae 4i•iginal Rezit tllere sliall be ��o adjust��ie��t i�i tl�e a��tit�al �•ei�t at tl�at tin�e, at�d Lessee sl�all }�ay tile pre��ious year's a��iiial re��t «��ti1 the time af the �lext re�ltal ac�j2istmeflt as callec� for ir� this sectia��. �i� no eve�it sliall a��y �-e�ital adjust���et�t called fo�• i�1 1�115 SeCt1011 I'eSll�t in ai2 an�l�ial i'ell� �e58 t�lilIl ��le �I'eVIOUS yea��'s a��nual rent, The adj�istti�e��T sl�all l�e li���itec� so tliat tile �n�lual rental payn�ent determined for �a�y givei� tti��o-yea�• �eriod s1��11 not e�ceed tlze �i�i�ial re��tal �aynient calculatec� for tiie prejrio«s CPI adjusti�lent �y ��io��e tiiai� hve��ty perce��t {20%) percent. If li�e co��s����1er ��r�ice i�icieY for all iirb�i� eol�sz�n�ers (CPI-U) for il�e Dallas-Fort 1�Vorth geo�;ra��3iical regioil, as co���piled by tlie U.S. De�a�•tz��e��t of Labor, Bureai� of LaUor� Statistics, is disco�ltin��ed dt��•i��g tlie Lease Term, tlie re�naining rex�tal ac�just���e��ts called far i�� kl�is sectioi� sl�all �e ��ladc ��si��g tlie far�nula set fartli abo��e, b�it by s�il�stit�ita��g tl�e a��dex ►i�imbers for the Coilsu�aier Price I��dex-Seasonally Adjusted U,S, City Aver•age �'or• Ail Itert7�s For All Urba�� Cons��mers (CPI-U) %r ti�e i��dex i�umt�ers for tlie C�I-U ap�licable ta the Dallas-Fort tiVortl� geagra�ljical regio�l. If botli t1�e CPI-U for tl�e Dallas-Fort Wortl� Page 7 geogr�pl�ical ��egion a�Id tlie U.S. City Average are ciiscantui�ied duriilg tlle Lease Tei7u, the ren�aiiun�; re��tal adj�ist���et�ts called for in this section shall be made usitl�; the statistics of t��e B�irca�i of Labo�• Statistics of the Uniteci States De}�art��leiit of Labor that a�•e ���ost nearly coniparable to ti�e CPI-U a���licable ta tl�e Dallas-Fo��t Wo�-th geograp��ical region. If tl�e Bi��•ea�i of Labo�• Sfatistics o�` tl�e Uz�ited Statcs Departme3�t of Laba�- ceases to exist or ccases to ���blish statistics co�lcerning t1�e ���n•cliasing power of tl�e co»su�ne�- dollar d���`ing tl�e Lease Term, tlie t•e���air�ing rei�tal adjusri��e�its called for in tlus sectioi� shall be ���acie usii�� tl�c ���ost nea��ly com�ara�le statistics ��ui�lisliecl by a recogiuzed fin���cial autl�az•ity selected by Lesso�•. V. RIGHTS AND QBLIGATIONS OF LESSEE A. USE 4F LEASED PREMISES. Lessee is gra��ted tl�e nail-�xclusi�re ��rivilege ta ei�gage i�� o�v��e��/ope�'ator activit�es �i•ovidii�g o��ly tlie follo�ving aviatian seivices: Hang�r and Off�ce S�ace Leasi�l�. Lessee is granted the ��an-excl��sive �•ight to rei�t ha�lga�• and office s��ace. 2. Ge�leral Aireraft M�ii�tenance. Lessee is g�-aiited tl�e non-exchisive rigl�t to conduct airframe anci power ��Iant �i�aintena�ice ser�rices. Lessee, its tenants, enaployees, i��viiees a�ld g«ests sl�all not �e auThorized to condt�ct any services �iot specifically listed i�� tlus Lease Agc-ee�neut. Tl�e i�se of tl�e Leased Prei��ises l�y Lessee, its tez�ants, eii�ployees, in��itees or �uests sl�all Ue iimited ta o�ily tllose prirJate, coti����ercial, i•etail o�- i��dt�strial activities l�aili��g to do �viti� o�- relateci ta aiiports and a�fia- tic�t�, as �ro�Tided l�erei�i, Exce��t as specifically �t�tlio�•ized ia� tl�is Lease Agree�llent, no perso►i, �1115111�55 OI' C01�7p1'c3�lOi1 111��I O��T'a�e a C0121111eICla�, 1'etall Ol' Ii1C1t1S�i'Ic�� bUS111eSS U�1011 tlle Leased Preiaiises ox- l�}�on tlle Aii�ort ��itiiouT a lease or lice�lse fi•om �.esso�- autl�oa-izi��g s►�c3� coi��inercial, retail or inc���st�•ial acti�lity. B. STANDARDS. Lessee sl�aii ���eet or exceed the foiloe��ing standa��ds and perfo�•m t1�e folla�vi�lg activities or �etio��s: Address. Lessee s�iali fle «ritl� tlle Ai��poi-t Manager aiid kcep curre�lt its i�3ailing addresses, tele�liane mui�i�ers and co�lkacts �vk�e��e it ca�� be �'eached il� ��n e�i�e��gei�cy. 2. List, Lessee si�all i"ile with the Aii-�ort Maiiage�• ai�d keep ci��•rent a list of its s�i[�-lesse�s a��d sl�all keep ci�rreiit and �rovide to tlle Ai�•�o�-� Ma�iager, as req�iested, a Iist of all airc��aft l�arzgared o�• tied do���i1 on the Leased P�•emises �s�itl�iil tl�e p�•eviotis h�velve (12) �no��th pe�•iod. 3. Co��ciuct. Lessee s11a11 co�riractt�ally requi�•e its employees ai�d sub-l�ss�es (and suU-]essee's iiivitees) ta al�ida by the ter���s of this Lease Agreeiiie��t. Lessee shall p�-o���ptly enforce its contractual rig}�ts in the event of a defat�lt o#' stzcli cavei3ai�ts by s�icla eii�ployees a�ic� si�i�-Iessees {and su�-lessee's in�ritees). Page 8 �. Utilities, Taxes ai�d Fees. Lessee sliall meet and �ay all expe�lses a��d �ayrnents in coiuiectiox� �i�itl� the use of tl�� Leased Premises a��d the rigl�ts anc� privileges herei�i �rai�ted, inch�ding tlie ti��l�ly ��ay�ne3�t of iitilities, taxes, permit fees, licei�se fees ���d assessrne�rts lativfiilly l���ied ar assessed. 5. Lar��s. Lessee, at Lessee's sole cosi at�d expe��se, sl�all coinply �i�itil all currei�t a��� fi�hire federal, state and local laws, r•ules a�id ��eg��latioi�s �z�liich ���ay appl�� to tiie co�adl�ct of busiiless eo�iteniplated andlor occt�patio�� of tl�e Leased Pre�i�ises, i�icludi��g �-�iles, regulatio��s a�ld ordinances pro����ilgated �y Lessor, and L�ssee sl�all keep in effect a�id post ii� a proinine�it ��lace all necessary aaac3/or req��ired Iicei�ses or permits. 6. M�i��tenauce of Pro�rty. Lessee sliall be z�es�onsi�le for tile n�ainte��a�ice, repair a��d upkeep of all �ro�erty, b�xildir�gs, pa�i��g, stil�ch�res and i�n���oireme��ts, includ�tig f11e i��o�vi��g or elunui�tio�� of grass a��d other vegetatio�� on the Leased Pre���ises and tlie Lessee I�ilprovei��e�lts coi�sta�ucted o�i tl�e P�tblic At�ea, if aiiy, atld sl�all keep the Leased Pre�iuses neat, clea�i a�id i�� r•espect�ble co�lditioz�, fi-ee froin aily oUjectio�iable mattei• ar tlii�ig, i��cl�iding trasll o�� debris. Lessee a�rees ziot to utilize or permit otllers to ��tiiize areas on tl�e Le�sed Pre�nises �vl�icl3 are locate�i o�� tlle ot�tside of a�iy llau�ar or t�uildi��g fo�` tl�e storage of wreckec� or per��lane�itiy disal�led aircraft, aircraft �a�-ts, a�ito�uabiles, vehicles of any type, Ol' RIly O��l�l' �C3Lll�I11eI1� ar itei�ls ���1�ich ��To�ild dist��act ii'oi�� the appeara�ice of tlie Leased Pr�inises. 7. Pai��tii�� of Buildii��s. Du�•ing ti�e Lease Term, Lessor sl�all har�e the rig�t to rec�tii�-e, not �nore t1�an once eveiy fi��e years, t��at the �lietal ext�rior of liailgar(s} a��d buildiilg{s} locatecl oi� the L�ased Premises be �-epainted. T11e Lessor inay ��eqi�ire Lessee to repaiiit said exteiiors RCCOI"d1llg �Cl Lessar's s�eciiications (to specify col�r of paint, q�►ality of �vo��kmansi�i}� aud the yea�- �11C� 1T10ilt�l lll «�lueh tl�e laa��gax�(s} aiid buildi��g(s) a�•e to be painted, if ne�ded.) Lessee sl�all ca���plete the p�ii�ti�ig iu accorda�ice ti��itl� s��ch s�eci%catioi�s �vitlun one {1) year of receipt of �io�ice fi-o��i Less�r, Lessee sllall pay al1 costs az�d expenses ii��olved in ti�e hanga�• or building paintii�g �rocess. �. U�7�t�tlioz-ized Use of Laased Premises, Lessee ����y not �ise �ny o£ tl�e Leased Prei��ises for a�iy use not at�tlio�•ized l�erein unless Lessor gives Lessee prior �vrittei� approval of suc11 additio��al use. Without limitii�g the fore�;oing, tl�e Leased P��e�l�ises s11all not be ��seci fo�• tlie operatiaii of a motel, hotel, restaui•a��t, ��rivate cl�ib or bar, a��a�•t�nei�t Liouse, stoi•age af rec��eational r�ehieles, at�tor��obiies, o�- �Iiari��e ���l�ieles, fiea market ty�e sales, or foi• I11C�Li5fP1��, con�me�•cial, retail, o�- other p�irpases, except as ex�x•essly a�rthorized �lEl'e111. 9. D�velliii�s, No d�ve11i�1g or don�icile �nay be b�iilk, n�oved to oz• establisl�ed o�1 ar ivitl�i�� tl�e Leased Premises, �io�• ��Zay Lessee, its tena��ts, einployees, Page 9 in�Titees, or g�iests be pemiitted to i•eside or remain as a resident on or �vitl�i�i tl�e Leased Pre�i�ises or othe�- Ai�-part premises. Lessee may have a pilot lottnge, includiE�g �•estroom and sl�o�ve�- facilities, for �ise l�y fli�[1t crew aiid passe��ge��s. 10. Quit Possessio��. Lessee s11a11 q�iit �ossessiail of tlie Leased Px�er��ises at tlle ejld of the Lease Tern�, or ��poi� ca�icellatiaii o�• tern�uiatio�l of tlle Lease Agreement, ai�d delaver ��p tlle Lease Pre���ises ta Lessor in �s goad condition as existed ���hen ��ossessio�� �v�s take�� by Lessee a��d as Lessee l�as canst�-ueted, ar acce�ted at tlle begi�lili�ig of th� Ter•���, i�icluding the Lessee �1�7�1'O��CI11eEl15 �ti2C� LE�lS� I121�11"OV�171eiliS �]1'OVi��d lll SeCil0I1 II.D. a�id A�•tic�e �ri��, l�ereof, reasonable «�ea�• �nd tea�• excepted. 11. I��der�li�it�and Rcl�ase. Lessee sl�all i�idemnify, l�ald 11ar�1�less a�id defe�id tlie Lesso��, its oificcrs, age��ts, elected officials aud en�playees, a��d herei�y �•eleases Lessa��, its officers, agents, elected of�cials anci e���playees, ii-o��i �t�d against ai�y anci all claims, Iie�3s, si�its, liabilities, ca�ises of actio��, detllauds, lasses, dan�ages and/ar actioils far dan�ages, i��j�iries to pErsons (i��eluding death}, property ciamage {i��cl��di�ig loss of use), lost profits, a�id experases, i�ielt�ding coiu•t costs, attorfieys' fees �i�d otiier reasonable costs (collectively, "Claims"j, occasia��ed by, arisii�g fro�ai or i�lcide��tal o�� �-elated ro tlie Lessee's occupai�cy or use of tl�e Leased Preii�ises or tlie Airpor•t, tlle activities of Lessee aiid/o�- any party actiilg c�iider• tl�e at�tllarity of, or ri�lats grai�ted l�y, Lessee co��ducted ia� co��uection witl� or• inciclentai to tl�is Lease Agz-een�ent, aizc�/or Lessees' breacl� or cie�aiilt l�nder tiiis Lease Agreemer�t, i�icl��di��g ��ritllout limitatio�� a11 s��cli Clai�ns based o�1 Cb1Tllri021, constiiE�tia�iai or statutary la�v ar regulatioi�, wheti�e�• existiaig as of tl�e date hereof oz• as n�ay be created o�• ��ecognized liereaftei•. Lessee 1]1LlSC at all ti���es eYei•cise reaso�iabie p�'eca�itioi�s oi� bel�alf of, and be solely responsible for, tl�e safety of its office��s, eni�loyees, ��eilts, clistomers, visito�•s, ii��ritees, licei�sees aud otliea• pet�sons, as �vell as th� Leased P�•e�z�ises a��d Lease I�nprovements, �vhile i�i, on, oz- ia�volved in a��y �vay �vit�� the i�se or occtiipation of il�e Leased Prei��iscs. Witl�o��t liii�iti�lg tlie i��deninity and ��el�ase �ro��ided l�e�-ei�i, tl�e Lessar shall �ssE�i�ae no respoiisibility or iia�ility for hai•m, injury, or a��y da���agiz�g events �vilicli are directly or ii�dir•�etly att�•i�t�table to p��emis� dcfects, �vl�etlier �-ea1 a�• allegcd, ���l�iel� m�y no`�r caist or ���1iic11 n�ay hereafter arise u�on tl�e Leased Premises, res�ox�sibility %r all sucll defects l�eing expressly ass�ui�ed �y the Lessee, The Lessee ag�-ees tliat, tivithout lin�iting the indemnity aiid release �rovided herein, this indemnity a��d ��elease provision a�plies to all Clain�s �risiiig fi•o�n all �rei��ise �iefects or rclateci to tlie conditioz� of tlle Le�sed P�-en�ises and/or tl�e Lease Iin�rove��ients, of any ki��d or type. THE LESSOR AND THE LESSEE EXPRESSLY 1NTEND THIS PROVIS�ON T4 RELEASE LESSOR, ITS OFFICERS, AGENTS, Page 1Q EI,ECTED OFFICIALS AND EMPLOYEES AND TO REQUIRE LESSEE TO INDEMNIFY AND DEFEND THE LESSOR ITS OFFICERS AGENTS ELECTED OFFICIALS AND EMPLOYEES �ROl�1 AND AGAlNST ALL MATTERS SET FORTH 1N THIS S�CTION V.B.11. FR�M THE C�NSEQUENCES OF, CAUSED BY 4R RELATED TO THE LESSOR'S OWN NEGLIGENCE OF ANY KIND TYPE OR DEGREE EXCEPT AS SPECIF7CALLY PR�VIDED BELOW. NOTtiVITHSTANDING THE TERMS OF THE PRECEDING SENTENCES THI� 1NDEMNITY AND RELEASE PROVISION DOES NOT APPLY TO ANY CLAIM WHERE THE INJURY DEATH OR DAMAGE RESULTS FROM THE S4LE NEGLIGENCE OF THE LESSOR UNMIXED WITH THE FAULT QF ANY QTHER PERSON OR ENTITY, Tl�e �}i'OV1530I1S oF this Section V.B.11. si�a11 Slli'V1V� tlie expiratia�� a�zd te�-t1ii��ation of tl�is Lease Agreeme��t. 12. Ch�r��icals a��cl Other S��bstances. Lessee s��all �roperly store, use, collect a�1d dispose of all cl�eniicals, cl��inical residl�es, pai�lts a�ld/or any oti1��• pnlltita�lt, contanu�lailt, iilterinediat�, hazardous sl�bsta��ce, waste, asbestas contaiiu��g m�terial, petrole�im prodiict and auy suUstai�ce cox�tai��iiig any af the above ("Cliei��ical"j; to ��i•ope��ly store, confi�ie, callect aiid dispose of Cl�ez��icals, i�icIt�diz�g witl�ot�t liinitatio��, pai�it spray in tl�e atinosphere; and to con�ply �viEl� 3�� �aCSI, state and fede�•a{ statt�tes, i��les, reg�ilatioiis and ordinai�ces gover��ing t��e storage, �1�riC�I1T1�, tise ar disposal of sucli Clienucals. Fut�the��, tlie Lessee sliall be soleiy res�onsible for, ai�d r���ithout ii���iting tlie �ravisio�is of Article V.B.11., sl�all ia�demi�ify Lessor against any a��d all claims, losses, lie�ls, stiits, fi�ies, penalties, liabilities, da��lages, ca��ses of actioi� �ld dema��c3s, Iiiclt�ding witlio�it IlT]liTat10I1, costs, liaUilities and da�nages associated «itl� tlie clea��u�, ret��ediatio�f a�ld dis��osal of said Cl�ei��icals, damage to tl�e et���iro�����e��t ar i�ah�ral resou�•ces, prope�•ty c�a���age and/ar i��jury, clisease or deatl� of a��y pe�-so��, related to discilargcs oi• releases, �vhetller accic�ental or intentioi�al, of a��y Cl�emical o�- any otl�er i��atter, cl�i�i1, ]oss, lie��, suit, liability, damage, dei��a�id or ca�ise of actiai� associated i�ith or relatecl to the Chciiiicals. 13. Haza�•do�ls Activities. Shoirlc� Lessee �ioiate any stati�te, �1�1e, resh•ictioi�, ordei•, ordi��a�ice or reguiation of tli� City of Deiito�i or tlie Federal Aviation Adl?11illS#£�itldll, o�- any other regulato�y atttliority, ar sl�ould tl�e Lessee engage i�i ar pe��mit otl�ex� �e��sans or �gcnts to ei�gage iil actir�ities rvhiclz co�ild prodtice ��aza�-ds o�� ol�struction to aii• i�avigatioii, obstr�ictions to visi�iiity or interfere�lce �vitl� ax�y aircraf� navigational aid station or de��ice, ���l�etl�er airboi7ie or on tlie �;►•oui�d, i��e�� Lesso�� sl�all state such violatiai� i�i tia�riting and deli��er �vritten ��otiee to Lessee or, if so eiected by Lessor, Lessee's age�it o�� the Leased Prei��ises, o�� to tl�e pe��soai(s} o�� tl�e Leased Prc�l�ises r�1io a��e cattsing said vioi�tion{s), r711{� Ll�lOil CI£I1V£ij� Of SLICIl «ri'liC�ll Page 11 notice, Lessoz• sllail l�ave tiie �'ight to de�1�a��d that the �ersai(s) z•espa�isible fo�• tl�e violatioi�{s) cease a�1d desist fro�n all st�ch activity creating the ��ialation{s). I�i s��cii evei�t, Lessoz- sl�all have the rigiit to deinand ihat corrective actior�, as reqiiired, be con�neneed i�luilediately to ��esto��e tl�e Le�sed Pre���ises ii�to co��fo���na�lce `�Titli the partic�ilar stah�te, r�ile, 1'CStliCii011, order, o�-di��anee or regulatiozi l�ei�Ig violated or to re�nove or remediat� �i�y I�azard described hereir�, Sho��id Less��, Lesse�'s agent, o�• t11e person(s) i•espoi�sible for tlle violatioz�{s) fail to cease �nd desist fron� said �fiolation(s) al�ct to immediately con�nence cor��ecti��g the �iol�tion(s), aud ta complete said car�•ectio�is «�it�un riz�e�ity-faui• (24} 31ou�s follor��ri��g ��rx-itte�� ��otificatio��, tllen Lesso�• sl�all 3iave tlie riglit to enter o�ito tl�e Leased P�•er�iises and co�•i•ect ti�e vialation(s) at ti�e sale cost a��ci ex}�ei�se of Lessee, a�id L�ssor s11all not be ��es��o��sil�ie �or atiy cia���ages ittetirred to any i���provei�ie��ts oii the Leaseci Pr�aizises as a result of #lze correcti��e action process. I�i addition, s��cli vialatioii shall be coz�sidered a material default �y Lessee autlioriziilg Lessor, at its sole optio�l a��d discretio�j, to i�n�nediately terminate a��d cai�cel tl�is Le�sc Ag�•eeii�ent a�id to exercise any a��cl all atl�er rights a�1d �-emedies a��ailabl� to it inide�• t�us Leas� A�•eer�lent. C. SIG�iS. No signs, post�rs, or ot1�e�• similar c�evices ("Signage") silail be placed or� tlie exterior of tl�e Lease In�prove������ts, L�55b1' IE11�JT'OV�t112T1f5, if appiicable, or o�� any portion of the Leased Premises or Ai�port pr�perty �vitl�out t��e prio�• �vritten approval of Lessor. Lessee, at its sole expe�ase, sl�all be respo�isible for the crcatioil, ii�stallatin�� at3d z��ai�ltei�a�lce of ��11 sucl� Sig�ia�e. Lessee, witl�oE�t li���iti�ag t��e general ��ah��•e af Seetiori V.S.�1., sl�all pay to Lesso�• any a��d all da�llagcs, inj�zries, or re�airs ��esE�itia�g fron� the installatioi�, naaia�te��auce or repair af a�iy sucl� Sig�iage. Any Si�la�e piaced on t��e Leaseci Pre3�lises sl�all i�e �nair�tained at al1 times i�� a safe, tzeat, sigl�tly and gooc� physical condition. Ail sigl�age sliail �e �•el�loveci ii-a�ii t��e Leased Pre��lises by Lessee in�mediately ���on receipt of i�istr�ictio��s for i•e���ava1 af same fi•oi�i L�ssoi•, i�lcludi��g �viilio�it limitation, u�an ex��iraiio3l or termination of tl�is Lease Agree���ent. If Lessee fails io rei�love tlle Signage the�� Lessoi• t��ay do so at the soie cost ai�d expe�lse of Lessec. S��bject ta approval by Lessoi• �s ��-ovideci ��erern, Lessee inay place h�to wall si��s, no g�-eater til��� thirty-hvo sc�ua�-e feet eacll, idei�tifyin� the co►����}ercial I�a�Igar op�ration. NoE�vitlista��dii��; a��yll1131€; CDI1��311eC� l�erei�� to El�e coi�trary, all sig�iage sl�ail coii��ly «ith all applicable City of De��ta�a ordi�ia�ices, i��cluding tl�e City of Denton sig�i o�•di�ia�lce. D. ENTRY, Lessor a�id its desigi�ees sliall �iave the �•ight to e�lter tlla Leased Pretliises �i��an ��easonabl� ad�fa�ice a�otice {�v�-itten or oi•al) and at aiiy reasona�le tiines for the p��rposes of i��spectin� t��e Leased P�-e���ises, pe�-fa�-���i��g any �vork which Lessor elects ta perfor��� tulder t11is Lease Agrcem�i�t, and exhibiii��g fl�e Leasecl �'��emises for s�ie, lease, or mortgage. Nothii�g iiz this section shali imply any duty �ipon Lesso�• to c�o a�ly �vork or perfor��� a�iy activity, �;�1�icli t���der ai�y otlier p�•ovisiail of tl�is Lease Ag�-ee��ient Lessee is rec�iriE•ed to }3erfo�-m, aud any perfo�7na��ce by Lessor shall not coi�stitE�te a��vaiver af any defne�lt by Lessee liere�incle�•. Page 12 VI. COVENANTS BY L�SSOR Lessor hereb�� ag�•ees as follo�VS: �. PEACEFUL ENJOYNIENT. Upon �a}���ent ai all re��t, fees and ��erfoi���a��ce of tl�e covei�a�its a�ld ag�-ee���e��ts on the part of Lessee to Ue �e�•formed he�•e�rnder, Lessee (st►bject To the te�•ms aa�ci conditians of tilis Lease Agre�ment) shall peac�al�ly hold anci eiljoy the Leased Pre�iuses a��d all ��ights and �rivileges l�erein granted; lloweve�', Lessee accepts t11is Lease Agreem�nt subject a3id sl�bo�•di�iate to a��y �-ecarcied n�ortgage, cieed a�' ti-��st, or other lie�l ��resentiy existing i�pan, or to aiiy otlie�• n�atter of record in tl�e Real Property Recards of Dento�� Cot�nty, Texas andlor that Lessee is otheilvise charged witl� notice or it�c�«iry z�otice, aF%cti�lg the Leased Pren�ises. B. C�MPLIANCE. Less�� «�ill �iot be legally liable foz� a��y action of kx�espass or si���ilac cause of actior� by ��irttte of a�3y ae�•ial o�e�•ations of adjouliiig prope��ty in t��e eourse of nori�ial t�ke-off ai�t� Iandi��g proc�di�res fron� tl�e Aitport. VII. WEIGHT LTMIT �F AIRCRAFT A. RUNWt�YS AND TAXIWAYS. Lessee sl3all lii�lit alI aeroiia�itical activi#y, ii�cludiiig ���itl�ot�t limitatio�l, la��c�i�ag, take-off aizd taxii��g, to ai�-cra(� havii�g �n ach�al �i�eight, i��cltrc�iiig tlie u�eigl�t of its fiiel, of tl�ir•ty tl�ousa��d (30,000) ��ou�lds or less, ua�less a�id until s�ich ti�ne that tl�e ruu«�ay a►ld ciesig��a[ec� taYi��rays on khe Ai�-port l�ave been i�������oved ta I�a�ldle airc�•aft of s�icl� excessive wei�iits. Tt is fiirtiier• a�reeci tl�at, based oz� c�u�lifi�d engii�ee��i��g shidies, tlie rveigllt �•estrictions and pro��isions of this clai�se may be adj��sted, i�p or do�vn, a��d tilat Lessee agrees to abide l�y any s�zeh cliange� oi• ravisio�ls as s�icl3 sludies ii�ay dictate. "Ae�-o�lantical activity" referred to ii1 tlus clat�se shall i��clt�de at�y aetivity of tlze Lessee or its �ge��ts ox- subcantractars, and its custoillers �nd ii�vitees, bi�t shall Elot i�lclirde Those acti��ities over �v��icli it l�as ��o solicitory pai�t or cantrai, si�ch as ai� uusolicited or u��schedule� ar emer�ency landing. Vialatio�i of tlle pz-ovisiaaas of t�lis sec�ioi� an hvo or i�lore occasio�is di�ri��g the T�r�ii sllall be st�fficient to ca��se (i) tlie inuilediate termi;�ation af this Lease Ag�•ee�ne�it, «7itlio�it opportt�i�iiy to cttre by L�ssee; (ii) shall otl�er«Tise constihite � defa�ilt hereu�idei• wl�ereii� Lesso�• �llay resort to all otl�er ren�edi�s ��rovicied ii� this Lease Agree�nent; ai�d (iiij ���it��out li�niting tl�e �rovisio��s of Sectio�i V.B.11., s�ibject Less�e to liat�ility fo�- a��y damages to the Airpo�-t tl�at miglit resi►lt. Nailii��g coi�tained l�erein shall l�e constriied as creati��g aaly oUligation on ihe ��art of Lessoz- io i�n�rave o�• modify a��y part of tlie Airport. VIII. LEASEHOLD IMPROVEMENTS A. ADDiTIONAL C�NSTRUCTION OR IMPROVEMENTS. �� addition ta t�ic Lessce I�i1�3roveatae�iis, s��bject to the tern�s of this Article VIII, Lessee inay co��st���ct t�pan tl�c Leased P►'ei�iises, ak its oti��n cost aild expeiise, bt�ildi�igs, hanga�s and str«ch�res, tl�at Lessor and Lessee mtthtally agree in t11ei�- diseretio��, are i�eeessaiy foi- use i�� conitection �vitil the operatioi�s at�tl�o�-ized 13y tl�is Lease Agree��ient {"Addikional Iin�rove�i�e��ts"); px-o- vic�ed ho�ve�rer, Lessce shall coii�ply witl� all of tlae ��ec�i�ix�e���ez�ts of this A�-ficle VZII. Page 13 B. REQT_]IREMENTS FOR LEASE TMPROVEMENTS. Befo��e coininencing coi�structio�� activiti�s related to the Lessee T������ovemeiits a�lci/ar the Additioi�al I����rave��lei�ts upo�� t��e Leased Premises (tlle Additioz�al Imp�-avements a��d tl�e Lessee Tmpro��e�nei�ts a�-e callecti�rely �•eferred ta in tllis Lease Ag,ree�a�e��t as tl�e "Lease I�zlprarle3nei�ts"j, Lessee s1�all si�i�mit to Lessor: Doc�imei�tatio�a, specifications, or desigi� woi•k, prepared l�y a�� architect a��d/or eiigiii�er seiected by Lessee «�l�ich sl��Il be revier��ed a�id a��proved by t��e Lessor, �tilhich shall esta[�lisl� tt�at tlie ii��p�•o�remcilts to b� U��ilt or constr�icted i��o�i tl�e L�ased Pi•emises a��d Public Area, ii' applicable, are it� confoiiiia�lee ���it3� tl�e o��erall size, shape, calo�•, c�uality �nd design, ii� a��pearancc and stil�chu•e of tl�e pro�ra�n eslablished by Lessoz- on tl�e Air��ort. 2. All piai�s a��d specific�tioi�s sl�o�jTing tl�e loc�atioi� �i�}on the Leased Pre�nises and Pi�t�lic Ai•ea, if �tpplicable, of tl3e proposed const�•�rction at�d i���provei�ie��ts. 3. Tlze estiaalated cost of sucl� cons�i•�tction. No co��sti��ctin�l may commenee u��ti1 Lessax• �aas a�proved t��e pla��s and specificatior�s a�ld ti�e locatia�� of #he Lease Improveme�its ai�d the Piiblie A�-ea, if applicable, aud tile estunated costs of sucl� coiisti�ictioil. Approval by tlle Lessoi• of canstructia�� i�� confo�nlity wit�i the te�����s of tlus Lease Agreei�le�lt sl�all �iot be ���ireaso��a�ly �vitl��eld. B.1. CONSTRUCTION �F LEASE Il1�ROVEMENTS. Constiuetion anc� a��oc�ificatian of the Lease I���pi•ave�nents sliall !�e perfor���ed in a good a�id «Tor•k���a��like ma���er a�id i�� compliai�ce ti�vitli all applicaUle bnilding codes, r��iss, sta��daxds, zoning and ather ardinauces a�ld all state at�c� fecieral sta�lda�ds {iizeluda��g, `�Titl�out li���itation, Title �II af the Ai��ei•icai�s Witl� Disability Act of 199Q, a��y state stah�tes, gaveriung ha�lciiea���ed access or are�utecturai barrie�-s, a�;d all �-«les, regulatioa�s aucf gl�ideiines �roi��ulgated �uic�e�• s��cli la«�s, as ��nended fio��l time to time}. 2. Without limiting the provisio��s of Section V.B.11., Lessee shall p�•oi��ptly pay aiad disc��arge all costs, e�pe��ses, clair�is for c�amages ar inj�.�ry {including witliol�t iiulitatiail claims for p�rsoilal injirry o�• cieatll, or property damage a�• destructio��, oi• eca��oa��ic loss}, liens anc� any and all otl�er lia�ilities and obligations �vhicil arise in co�u�ection ��itli sucl� co��stz-uctio��. 3. Lessee sl�all cause eaclz co��tractor pe��Forming any �,�Tork or otherwise occupyi�ig tl�e Leased Pre�iiises or Public Area ancUor Aii•por! related to tlie Lease I�n�rove��lents oa� p����suaa�t to tlie c�L1tIlOTIt� �ll'pVIC��C� to Lessee iiere��nde�•, to i�idem�ufy tl�e �.esso�- a��ci its officex�s, agents, elected officials Page �9 a��d enl�loyees to the same cxte�lt ��ro�licled �iy Lessee to Lessor in Sectio�� V.B.11.. 4. Lessee shall p�•opez�ly and ti��iely subi��it to tl�e FAA, T;cDOT, and a��y otlier go�Jern�nent�l ei�tity oz• ageilcy l�aviiig ji►risdictioi� rega�•c�ing tlie Airport, a Notice of Proposed Co�istructioi� aud a�1y aild aIl otller doc�iments or il�ateri�ls as may i�e rec�uiced, wl�e�i and as req�ii�•ed. S. Wli�101if Illlllt111� i�18 17�1]tS i0 L�SS�I' �31'OV1C��CI lIl SeC�[011 V.D., Lessoa- has f�3� 1't�;111 ai1C� 1S c�ilt�l01'1ZEC� �� L,eSS�� �i ��1 �1I11eS C�lll'lll� ally CO11S�li1C�1011 �roject to e�lter ��pon tl�e Leased Pre�»ises to obseive tl�e �erform�nce of st�cfl coi�strttctioa�. Notl�iug coiltai�led herein s1ia11 l�e cansttlied as Rn o�ligatioi�, of R��y kiiid o�- t}�e, on the part of Lessoi• i•elated to tlle const�•uction acTivities aiid/o�• ta assi���e Lessee's coiizpliance rvit�l the pravisioi�s of tliis Lease A�•cement. 6. No late�• tliai� tlurty (30) days after co�npletioii of tl�e Lease I����rove���e��ts, Lessee sl�al� si�bmit to L�ssor detailed as-biiilt plai�s of tl�e Lease Inlproveiileaiks ai�d cioc�i���e��taiy evid�nee ace�ptable to Lessoi• evic3encii�g tlie tatal cost to const�-�ict the Lease I���p�-ovei��earts ("Cost to Coilstri�ct Lease T�np�-ove�llents"). 7. No i�i����-o�ements to tllc Leased P►•einises, i�jcludi��g �vitliottt liniitation, �l�e Lease I€�lp��ove���ents, may be �•�moved from tl�e Leased Premises d��ring tl�e Teri�l h�reof, uialess athe�-���ise speci�ically a�itl�orized hereii3. 8. Lessee sl�all cause the gea�e��ai cor�tracto�• to ol�taui (i) pay�ne�t bo��ds for constructio�l contracts gre�te�• tliaa� Fifty Tliausa��d and �ZO1100 Dolla�•s ($SQ,000); and {ii} �a}nnent and pe�•forma�ice i�onds for coi�st�-��ctioi� eo��tracts greater tha�� O�ie Hiuid�•ed Thot�sand a��d no1100 Dolla�-s ($100,000), fo�• each co�lst�•t�etio�� acfi�ity on tlie Leased Preinis�s aud P�iblic Area, if applica�le, each T11TllLt1� t�l� Lesso�• as a�i Additionai Obligee. Lessee sl�all fiirnish s��cl� bands to Lessor prior to any �voi•k o�� tl�e Leased Pre�z�ises or P�iblic At•ea, if applica�le. Additionally, a�iy a��d all iiZSiii•a�1ee provided by the ��neral coi�trackox- to Lessee shall na�ue the Lessar as an Additio��al I��s�u•ed aucilor L055 Payee, as applicable, anc� pro�Tide ihe follo�ving covei•ages, at a n�iniinu�i�: • Coi��mercial Geiaeral Liabi�ity -$1,000,000 per acci��re�lce aild �2,OOa,000 aggregate • Busi�less Auto��iobile Liability -$500,000 pex• occur��ei�ee and $1,400,400 aggregate • Wo��ke��s' Com}�e�lsatio�l— Slat�iEoi•y Lii�lits • Builder's Risk (i� applicable) —100% of tl�e completed rlaltie Page 15 C. OWNERSHIP O�' IMPR4VEMENTS. E�ce��t as atl�ei�vise pro��icied i�l tl�is Le��se Agreement, tlie i�izprove�nents �lo��� located, or co��st�•�rcted oi• to t�e const�ltctec� upoi� the Leased Pren�ises by Lessee (ii�cluding �,{ritl�aut limitatian, the Lease I�i�provern�nfs), but exci��diti� the Lessor I�i1p�•o�leine��ts, if any, si�all remai2� tl�e property of Lessee dtjtY��g t11e Lease Te����� subject to tk�e falla�i�iilg �o�lditio��s, terms a�ld p�•ovisioi�s: 1. Upo�� tl;e ter�iiinatioi� of iiiis Agreeii�ent, ��1lether by ex�iratio�l of tl�e Ter��i her�of or £or any otlze�• �•eason �vhatsoever, �xcept by reason af defa��lt o�� the part of Lessee, Lessee shall l�ave ti�e �-ight to remove all tllase r•�a1 propei•ty aiid strltch�rai i��1pi•o�Teii�ents l�avin�; bee�3 ��aade prio�- to tlie Effecti�Te Date as described ii� Sectioi� II. D of this Lease Agreeme��t, other tl�an Lessor la��p�-ati�en�e�lts, if a�iy, o�v��eci by L�ssee, fr•o��� t3�e Leased Pre��lises, bi�t Lessee shall be �-eqi�irec� to repair any �a�i�age to the Leasec� P�•e�Ilises caused �y sti�cli removal ax� 1 good and r�varki��ai�like t��a�u�er a��c� at Lessee's sole cost a��d e�pense; p��ovidec€ liowevet', (i} if Lessee is iz� deia��lt l�ere�i�ider, Lessee s1�all forfeit the �•iglit to ren�ove all tliose real properiy a�ad st���cfiral i�npi•oveme�lts havi�ig �een �nade prior to the Effective Date anc� i�o�v existing on tlie Leased Pre���ises; a�1d (ii) i�' Lessee is iii default l�ereiiiid�r, Lessoi• �3��y elect to �-ec�ui�-e Lessee to re�a�ave all or pact of the i�nprove�i�ents (other thau the Lessor I��lprove���e��Ts) fi-a��� the Leased Preinises prio�• to the expiration or ea�•lier te�•mination of this Lease Ag�-eeme��t and restore tlle Leasec� Pre���ises to tiie canc�itioi� in jvluch tlie sa���e existed �s of tlie Ef%ctive Date af this Lease, i�i wlucll e��e�it Lessee sl�all proi���tly perform s��cll ��ea��owal and restoratiox� in a good a��d rvorkiiza�ilike �na��ier a��d at Lessee`s sole cost a�ld expei�se; anci (iii} Upori siicl� expi�•atioi� or earlie�• te�-��ii�l�tion, Lessee sl�all deliver tl�e Leased Pi•emises to Lesso�• in good coiiditioa�, �-easoalat�ie �vear a��c� tea�• excepted, and shall, at Lessor's ��cquesk, execute a►-ecorda�le i��st�-�tmeiit evidenci�3g tlie ter���ination of this A�reer��e�it, ex���-essly statia�g tl�e ter�12i�1�tion or expiratioi� date tliei�eof. 2. Tl�e Lessor L��pt'o�veine�lts, if any, sliall i•emai�l the �i•o�erty of Lessor• ai all tinaes during aiid after tlze ex��ii•atio�� or earlier terini��ation of tlus Lease A�;ree�a�ent. 3. Notl�in� contaii�ec� l�e�-ei�i shall be eo�isttued to limit or prohibit Lessor a��d Lessee fi•om i�lt�tiially agi�eeia�g to either (i} ame�id or moc�ify tlus Lease Agi•ee�i�e�3t or, (ii) e��te�• i��to a ne«� agreei��ent fo siipe��sede a��d �-e�laee this Lease Agreement. Howevei•, i�otl�in� co��tained her•ein sli�ll be c�ee�i�ed ar co��st�•�ied to reqt�ire any ame�idment or ��iodification of tliis Lease oi• tl�e eiiterii�g into of a ne�v lease ag�•ee���ent, Aiiy such action sliall �e at the sole a��d absolute c�iscretio�� ofLessor and Lessee. Page 16 Il. COLLATERAL ASSIGNMENT A. CONSENT TO ENCUMBER Lessee sl�ali nat collaterally assig�� tl�is Lease or other���ise eizcumbei• tl�e estate created by tliis Lease A�reetz�en! rvitl�oi�t tlie ��vritte�l conscnt of Lessor, �tiTllich st�cla consent shall be at Lesso�'s sole discretioi�. As coilditio��s to sucil conse�it, Lessor may r•equi�-e fro�n Lessee a��d/ar tiie Sectired Party (hereii� so called} a�ly co�il��litme�it, conditio�� o�• requirei�le��t deea��ed z�ecessa��y or advisable l�y Lesso��, illClll{�Ii1�T �V1�I10L1� llil]i�c�t1011, �rovision for: 1. Expi-ess agree���e�lT tiiat tlie Lessee shall in no �vay be released fi•oin a��y of its obligatio�ls tE��c�er this Lease Agreernent, inchic�ing «�ithoi�t liinitatio�l, tl�e oUligation to �ay r�nt; 2. Tl�e See��red Party to �roi��ptly p��ovide Lesso�- notiee af a��y defa��lt l�y Lessee ii� a�iy obligatian to Sec�u•ed �arty; 3. Tlie Sec��red Party to provide �lotice to Lessor at least rfteen (15) days priar to (i) aceeleratiiig ai�y iizdebteciness owed l�y Lessee to Seci�rec� Party; (i3) ii�itiation of aiiy foreclos�i�•e }�roceedij�gs; a�id/or (iii} any other actio��s to e��force any fnancial o�ligatioiz of Lessee to Sec��red Party. B. USE OF LOAN �ROCEEDS. A�iy f��i�ds ba�-��o�ved by Lessee ii� «�llich ti�is Lease A�reeme��t ar tl�e estate crc��ted l�y tl�is Lease Agreemei�t �re utilized as sec�irity o�• coll�ter•al, in �vl�oie ��• in part, may be t�sed only far (i) ot�tai�ii�ig fimds for tlje conskrE�ctio�� of tl�e Lease In�provei�leilts, as desc�•i�ed ii1 Section II.D. anci A��ticle VIII Ilereof; {ii) fa�� acc�uisitio�� of the leasehold estate created by tl�is Lease; oi• (iii) any otlier ptirpose �vliicl� ���ay �e app�-aved fi�o�n time to tin�e �y Lessa�•, in writi�ig, in its sole discretio��. C. LIEN. No iien co��teinplated l�y t��is Article IX sliail C0115t1tll�e a liei� on Lesso�•'s fee title. Ai�y ii�debtedness seci��'ed by � lien against or ot� the estate created Uy t11is Lease Agreement o�• tl�is Lease sl�all at all ti�nes be and remaii� inferior ��id si�bordi�iate to co�ldition�, coveiiai�ts and obligatiaa�s of tliis Lease Agreeme��t and ta �il of Lessor's rights �iilder t��is Lease Agree���ent. X. RIGHT OF EASEMENT Lessot• sl�all have the rigl�t to est�blish easeinents, at no cost to Lessor, u��on tl�e Leased P�•e���ises for tl�e p�lrpose of (i) ��•o�tidi��g �indergrou»d «tility sei•vices to, from or ac�•oss the Airport prope�-ty; or (ii} for the coiisti•��ctio�� of }nihlic facilities and/or i��f�•��st��uctu�-e ail tlie Air�ort. Ho��rever, aE1y strcll easemet�ts sl�all i�at il�t�rf�re �vitll Lessee's use af tl�e Leased Premises a�id Lessor sliall r�store the Leased Premises to as close ta its oi'igit�al condition as is reasonable practicabie u�oi� the installation oi any t�tility Pdge 17 sei•vices on, i��, over or u�1d��• a�iy sucl� easen�ent �t ti�c concl«sion af suci� co��st�•uetia�i. Coiisir�iction withi�� the easeinent ����o�� ti�e Leased Pre�nises shall b� completed «�iti�i�� a co�nn�ercially reasoi�lUle tiine. XI. ASSIGNMENT OF LEASE Lessee expressly corlei�a��ts tiiat it (i) �vill i�ot assigu this Lease Ag�-ee��ieait; (ii) canvey rl�o�•e tl�an fifty �e�-ce��t (50%} of tha ��oting ii�terest in its �usiness or entity as of the EfFective Date of tlus Lease Ag�-ee�i�e�it, tluougli the sale of stock or atl�e�-�vise; or (iii} tra�isfer, license, oi• s2iUlet tl�c urhole ax• a�iy part of the Leased Pr�mises fo�• a��y ��t�rpose, eYCe�t fox� rental of l�a��gar space or tie-cio�v�� s��ace for storage of aircraft oi�iy, ��litho��t tl�e ����iai� �v�•itte�� co��sent of Lessoi•. Lessor a�rees tliat it wiil not uiu-easoi�ably �vitl�liold its a��}�ro��ai of st�cla sale, sublease, Erat�sfei•, lice��se, or assi�iui�ent of tl�e facilities fo�- Ai�po�-t reiaied }�ur�oses. TI7e p�-ovisioi�s af Fl�is Lease Agreei��e�it s11a11 remai�� i�i��ding ���o�� t11e Lessee and tl�e sEil�lessees a�ld assignees, if a�ly, of Lessee, XII. CASUALTY LOSS/CONDEMNATION A. CASUALTY/TOTAL OR �'ARTIAL DESTRUCTION. In tl�e e�le�it tlie Leased P�-e���ises, or ai�y i���proveme�its Iocatec� tl�ereo��, a�-e dam�ged by cast�alty, regarc�less af tlie exte��t of tl�e daillage oi• desti-��ciioii or ���l�etlier ir�s���-az�ee �roceeds, if any, a�•e sufficient, Lessee sl�ali, at its sole cast, �•isk anti expense, �ll'013]�l�Ijr, but in t�o eveut to l�e later tl�a�� six (G) i��oi�tiis after such cas�ialty, commence anci co���plete �viti� diligence, the restoration, �•epair a��c�lor re��lace���ei�t of any �ucll im�rovements to s�ibstantially the s�trne co�adition as tl�cy cYisied ��ria�• ta tl�e casualty lass, conditio��ed ►��o�� the folio�ving provision�: l. Ai�y a�id all acti�fities �•elated to tl�e restoration, r�pair a��d i•eplaceme»t af the c�amaged imp��avements, shall �e subject to {i) Lessor's prior appi•o��l, �s ���-o��ided i�� SectiQ�� ILD. a��d At•ticle V��I, as a��plicable to the im�a-ove��ient affected l�y casualry; aud (ii) the provisions set fartl� ii� t�1is Sectial� XII.A. 2. Lessor, as loss payee t�z�der tlle all �•isk �roperty insi�ravice cove�•age rec�uired Uy iliis Lease A�reeme��i, s}�all be e�ititled to appro��c disbt�rs��1�e�1ts of tl�e i�IS�i��a�zee ��•oceeds as i•esto��ataoa�, repair and �-eplacemeiit activities are caili�leted i�y Lessee. 3. Lessee sl�all ta�Ce a��ci com�lete «�llateve�• actio��s are �iecessary, if ap}�lieable, to obtain disbcirsen�e�it a��tl�ority of ii�sura�ic� proceeds fi•om a�ly seeua-ed pai-ty passessing a lien on tlie leasehold �state created i�y tl�is I.ease Agreemeilt. 4. I�� tl�e e�Tent Les�ee faiis to pro�7���tly cornmence i•estoratio��, repair aiidlor replace���e��t ai tlie damaged i�l�pro�ve���ents in canforina��ce r��itl� tlie p��ovisions hereof, Lessee shall be in ciefault ��i�der tl�is Lease Agreement, iii ��vliicll event Lessor n�ay seek a��y x�e���edies available he�-euncier, and Lessee Yage 18 sllall �rovide siicl� enc�orseinents or take a�iy other actioias �iec�ssa�•y, ii�el�idi�ig �vitl�ot�t limitatiaa�, auy actio�s requi�•ed of a��y sect�red pat�ty, to cause all of tlie i��surance pa-oceeds �ayable de�e to suc11 damage o�• casualty loss to be �aid to Lessor. B. TOTAL 4R PARTiAL CONDEMNATION. i. If tlie Le�sect Pre�i�ises or aiay part of the�tl are takei� by coa�dem�iation as � res�ilt of a��y action or p�•oceedi��g in emi�ie�lt don�ain, o�• �re t�-ansfez•�-ed i�� lieu of co�lde���i�atioii to a�1y autho�•ity entitled to e�ercise the po���er of e�1lii�e�it clomain, tllis Aa�ticle go�er��s Lessnr's aE1ci Lessee's i�iterest in the awa�-c� or co��sideratiaii for ihe tr•a��sfe�- a��d tl�e affect of the takiilg ar t�•at�sfer of tliis Lease A�t•eeinent. 2. I�� tlie e��en� tl�e e»tire Leased Preillises are t�ken or trausferred as describecl in Section XII.B.1., a�ove, tiiis Lease Ag�•eetnent and all tlie rights, titles a�1d i�7tecest �i�ider it will cease orz tlle date tl�at title to tlle Lease P�•emises vests i�1 ihe ca�ide�niung authority, and ti�e proceec�s of tiie coildetnnatio�j sl�ali be [tlie �rop�rty of LessoY•. 3. Ii only pa�•t of tlie Leased Premises is taken or Tra��sferred, as described iu Section XII.B.1., above, this Lease Agree�ne�it sliail te�-��linate if, in Lessee's �•easoi�aE�le judgii�ent, tl�e �-e���aiilder of tlle Leased Pre���ises is i�i such a Iocatio�j, or is ifi sucl� form, sl�ape ar reduced siz�, that Lessee's o�e�•atioiis cai�iot l�e effectively and pi�acticably operated �ipo�i tl�e re���ai�u�lg portio�� of tlle Leased Pre�i�ises, I�i s�ici� evei�t, tl�is Le�se Agree�nent and ail riglits, #itle aud inte�•est t�nc�er it �z�ili eease on t��e ciate tl�at tl�e title ta the port�o�1 of tl7e Leased Pre���ises t�ken or trai�sfe�•red vests ii� t�ze co��dex�7��i��g autharity. Ti�e p��oeeeds of tl�e co��ciezi�i�ation shall jbe til� praperty of Lessor. �. In tile evei�t pa�•t af the Leased Pren�ises is take�3 0�• tra��sferred as deseribed i�i Section XII.B.1., above, anci, in Lessee's reasonable judg�i3eiit, tl�e remainder of tl�e Leased Premises is i�� s�icli a lacatioii ai�d ii1 sucl� far�n, sl�ape or size, tiiat Lessee's ope�•atioi�s may �e effectively and practicably ope�•ated ot� tlie re»�ai��ing portion of tl�e Leased Pre�nises, this Lease sliall ter�a�inate with tl�e respect to tl�e pai-�ion of tlie L�ased Preinises taken or transferred as of tl�e date title to sucl� poi-�ion vests i�� the conc�etnni��g autl�a�•ity, bttt shail co��tiiitte i�i fi�li force �vifl� respect to the partiaii of t��e Leas�d P�•a�nises i�nt take�l or trailsfer•red. Noh�itlzsta�lding tlle partial te����i��atio�� af this Lease Ag�-eement, Lessee si�all }�ay to Lessor One Huud�•ed Percezzt (100%} of tl�e x-ent due and payal�le u��de�• tl�is Lease Agi•eement as if such pa�•ti��i taking liad �iot occurred. Tl�� proceec�s of the canden�iatio�� sliall [be the property of Lessot•. 5. Not3�i��g co�itained i�1 this Article XiI s1�a11 l�e construeci to prol�il�it Lessor fi-om val��ntai•ily coi���eying all oi• ��art of the Leasec� P��e�nises ta a��y party �vith cande��niulg ai�tl�ority iiilder state or federal la�vs, ]jo�veve►•, a��y such Page �9 ��oh��itary covveyance shall be treated as a taki�ag �vithin khe nieauit�g of tliis A��ticle XII. G. Not�vitl�sta��di���; the abave, in the e��e�it tlie conde��u�i��g a��tl�oriiy, as c�escribed in Seeiio�i X��.B.1., a�ov�, is ti�e Lessor, tiie procccds of the eondeil�riatio�i attribt►table to tlle Leased Pre»�ises sl�alf be tl�e property of Lessee, XIII. 1NSURANCE A, RE T_TIRED INSUIZANCE. Regardless of tiie activiti�s co�itemplated ii��der tliis Lease Ag►•ee���ent, L�SS2e S�la�l I11R1IlialTl CO11t1i1l1011Sly ]Tl �fF�C� af aIl tilI1�S E�11I'lil�, ��le �e1i1] of tiiis L�ase Agreen�et�t, at Less�e's sole expe��se, tlle followi��g ��iiiii�in�in insura«ce cove��age: Can�n�e�-cial Ge��eral Liat�ility cover•i�ig tl�e Lessee, its eiliployees, aget�t�, tena��ts a►�ci lI]CI��]B11C��i1f contractors, and its operatio��s on tl�e Ai�-por�t. Covei�age sl�all �e ii� an amo�ii�t 3iot less tlia�� $1,aaa,000 per occu�-�•ei�ce and ��ror�ide eoverage for pre�niseslopai•ations a�id coi�trachial liability AND nll�ere e���os��re exists i�� tf�e o}�i��ion of Lessor, coverag� for: p��ocluctslca��lpleted operations; ea��losio��, callapse a��d tu�dergro�uid prope��ty da���agc; aud e�Ir�iran�iiental ifi�pai�•me��i. 2. All risk �i•ope�-ty insura��ce o�� a one-hu��dr�d perce��t ( l 0a%) replace��le�1t cost basis coveri��g loss or dam�ge to all f�eilities a��d i���p�-ove�nents lacated on tile Leased Pre��lises, either as a part af tlus Lease Ag�-ee���ent ar erected �iy the Lessee subseqt�eilt to tliis Lease Agre�me�lt. U��de�• no circ�i���sta��ees sliail tl�e Lesso�' be li��le fo�• a��y cla�nages to fixhires, a��erchai�dise o�• otl�er peiso��al prope��ty of the Lessee or its sub-lessees. 3. Busiiiess Auto���obile Liability to iiiclt�de cave��age for Ow�ied/Leased Ai�tos, Noiz-Ov�7ned Atttos anc� Hired Cars: For o��ei•ation iii aircraft I110VeIll�llt areas tlle liil�it of liability sl�all l�e $100,000 per occurrence. For otl�er operations tlle limit of liability shali be coi�siste��t rvitlz the amou�lt set by State �,a`v. B. ADDITIONAL C�VERAGES. Ii� addition to tlie above �•efe►�e��ced eo�e��age, tlle fallo���ii��; i��s��rance is rec�t�3�-ed ii', in tlle o�i�uo�l of Lesso�•, tl�e �ctiti�iTy or exposu�•e exists or is cal�tei�iplateci: I. Aii•craft FuellOil Stor•age a��d Dis�ensing — Com�reliei�si��e Coi��mercial Geiie�•al Liability sl�all i��clude cove�-age or se�arate cav�rage for Enviro�une«tal l�np�ii•inent Liai�ility. Page 20 2. Airc��aft S�les or Aircraft Chaa�tez- and Air Taxi — Aircraft Lia3�ility in tlze amount oF SI,000,000 per occ«rre��ce ta include H►�lI Co�erage and Lia�ility. v� additio�i, Passenger Liability i�i ai� amoi�nt of $100,000 per person {per passenger seat) sliall be �ravided. 3. Aircraft Re��tal oz� Flight T�•ai�ling - Aii•eraft Liabilily i�� tlie amouut of S1,000,000 per occltrrence to i�icIttde Ht�l1 Cove��age atld Lial�ility, Passengec Liabilit}! in the amou�lt af $�00,000 ��e�• ��erson (per passe�ige�• seat) �i�d Shident/Re��Eer Li�►bility co��erii�g all users iii tiie amoi�nt of $500,000 �er acc�i�rei�ce. 4. S�ecialized Com�nercial Flyi��g (iz�cluding crop dus#i��g, seedi��g, a�ld spi•aying, ba�lnei• tor��i��g a��c� ae��ial advertising, aeriaf �hotograpl�y and su�veyi�ig, fi�-e figlitiiig, por��er 1i�ie or �ipe Iiiie pakrol) - Aiz�c��aft Lia3�ility i�� il�e fill101ill� of �1,000,000 per occt�rre�ice to incIude Ht�ll Coverage a��d Liability. I�1 �iC�dl�lOTl, Passeiiger Liability in an ail1011ilt Of �IOO,O�a p�r pe�-sail(per passenger seai) shall be provided. S. Aircraft �toxage, Maiiltena�ice andlor Repair - A�reraft Liability in tl�e at�la�nit of �1,0OO,OQO per occt�rre»ce to incl�ide Hull Coverage ai�d Liability. In additioi�, Hanger Keepers Lia�ility i�i the a���ount af $5�0,000 per occi��-rei�ce shall be �ravicied. Tl�e a•ec�ui►•e�ue��t foa• Ha�igar Kee��ers Lial�ility shall ��ot apply to ii�ciividual a«r�jer/o�e�•a�ors �vl�ose pz-i��lary t�se of the ilangar sp�►ce is tl�e sto�-�ge of tl�eir orui� ��i��craft. T�1e �•eq��ireinent does not apply to s�ich inclivid��als iiotwitl�staa�di��g the fact tl�at tl�ey n�ay, �i'o�l� time ka tii��e, permit tl�e stora�e of �ion-otivned aircrait ii� tl�e l�ai�ga�- space a��d ci�arge a fee far tl�e sto�•age of s��cl� aireraft so loi�g as sucli t�se is i�i tl�e ��atui•e of a rei�t-�l�aring agreement t•atl�er tiia�� a can�nicrcial aircraft storage b�isii�css. C. COVERAGE RE UIREMENTS. Ali i��suranee eoverage shalI co��i}�iy �vitl� the fallowing reqt�i��e�nents; I. All liaU�lity policies shall Ue ei�dorsed to include t��e City of De��to�i, a�1d its offiee�•s anci em}�loy�es as a�� Aciditionai I�zs��red. All all-risk prope�•ty �alicies shall f�e e��dorsed to ��an�e ti�e City of Denton as a loss �aayee. All reqt�ired insura��ce �alicies shall �ro��ide for a ininimt�m of 30 clays �v��itten ilotice to tl�e City of a�iy caz�cellation or nlaterial cl�a��ge ta tl�e policy. 2. All li7S111'1T1C� �•equired by this Lease Ag�-ee�ne�lt 111Li5� be isstted Uy a coi�Ipa��y oi- companies of sot�nd and adeqt�ate fi��a��cial responsibility ailc� airtliorized to do �usii�ess i�� tlle State af Texas, All �olicies aa�e st�bject ta the e�a�nii�ation �ti�c� approirai af the City's office of Risk Manageinent for tlieir adeq�iacy as to content, for�li af �rotectioiz and �rovidiug company. 3. Rec�ui�•ec� i�isuranee ��aa��i��g tlie City as au additioil�l insu►•ec� �1�i�st l�e Page 21 primary i�1s��ra�ice aiid not eo��t�•i�utij�g witl� aiiy otl�er ins�u�ance available to t��e City �vlzethe�• fi•om a ti�i�•d p�i•ty 1iaUility ��olicy or otlier. Said limits of i��s�i�•ance sl�all in no «�ay liiilit ilie liability of the Lesse� he�•eui�c�e�•. �. The Lessor sllall be pro��ided �vitl� a copy of all s�►cl� policies a�id renewal ceriificates. Farlu�•e of Lessee to com�ly �vith tlle minii�l�un specified a�no���its oa- types af insurance as �•eqt�ired �y Lessor sha11 co�3stitutc Lcsse�'s defaiilt of tl�is Lease Ag►-ee�nent. 5. Di�ri�i� tiie Lease Term, or a�ry exteilsion tllereof, Lessar herein resecves the �•iglit to, ���itli 60 days notice, adj�lst a�• i��crease tlie liability i��s��ra�1c� a�no���lts �•eqti�ir�d of tl�e Lessee, aud to require a��y aciciitioi�al �-idea-, e��do��se���enk, �roti�isioi�s, or ce�•ti�cates of inst�ra��c�, aud Lessee he�•eby a�;rees to provide a��y s�lch ii�surai�ce r•eqt�i��ei��e��ts as �nay be required by Lessor. �N. DEFAULT BY LESSEE AND LESSOR A. EVENTS OF DEFAULT OF LESSEE. The term "Event of Defa�ilt", as used hcrcii�, s�lail i�lea�1 kl�e acc�irt•ence of �x�y o��e oz� �i�are of the %liowing eveiats; Failtire of Lessee (ij to pay �ny ii�stallmei�t of �-ez�� o�- a��y otl�e�• s��iz� payabl� to Lessa�• heretmder; a�• {ii) to pay ar cai�s� to be paid ad ��alorei�� taxes, utilities or it�s�u�a�lce pr��lli�ims, o�� any otl�er ��ay�ne��t wl3icli Lessee is to inake t���de�� tl�is Lease Agree�nent, o�l tl�e date tliat same is dt�e a��ci st�cli faih�re shalI not i�e c����ed ����tiiiv thi�-ty (30) days a�ter �vrittei� iiotice tliereof to Lessee, unless a sl�orte�• ��otice pe�•iod, or ��o a-equireil�e��t of jlotice, is otli�r�vise s�ecifically prescri]�ed l�erein; 2. Lessee shall Uecoz�ie insolvent, apply for or eoilsent to tl�e appointm��lt of a �•ecei��er, ti•«stee, custodia��, iilteivenor, liquidator or other sii��ilar official of itself, tl�e Leased Preinises, or alI o�• stxt�sta��tial paz-t of Lessee's assets, �nake a gejier•al assig��iie��t for tl�e be�lefit of creditors, a�• coa�����e��ce a voluntaty ease or ac#io�l i���der aiiy �pplica�le ba��k�•u�tcy, rehabilitatio�l, i��soiv��lcy or otl�er sii��ilar la�v no«� or hereafte�• i�l effect; 3. A cot2��t havi�ig jt�risdictio�� of o�• over tlie Leased Premises or Lessee sliall ea�tex• a c�ecree or order for �•elief in respect of Lessee it� ai�y case or ���-aceedi�lg unc�e�- any applicai�lc ba�lkru}�tcy, reliabilitatio��, insolr�e�icy or othet• si���iiar la�v now o� hereafter ii� eff�ct, or appainti�lg a i•eceivec, il'll5te�, custodiaal, i��teive�iai-, lic���idatar or otl�er �i�11iIa�' of�ciai fa�• Lessce, the Leased P�•emises, o�• all o�� a sul�stantial part af Lessee's assets, ar orderii�� tl�� «iiiding �►�� or liqtiidakion of Lessee's affaiz-s ai�d s��cl� decree or order siiail rem�i�i ur�stayec� a�id in effect for a period of sixty (C�0} col�sect►tive c�ays; 4. Less�e shall make a transfer i�� fi•a�ici of erec�ito�•s; Paqe 22 5. A�ai�do�uiieni or cessatio�� of t�se oF ti�e Leasec� Premises far the pz��-poses leas�d l�y Lessee, as provided I�erei�i, for a period of tl�irty (30) co��scct�tive day�; or 6. Lessee �ails to pi�nctually ai�d pro�e�•iy ��erform, keep o�• o�serve any af tl�e tCl'1215, co�Te��ai�ts, agree��lents o�• coiiditions l�er�in co�ltained a��d suclt failure sii�ll i�ot �e ci��-ed ti�rithiz� kliirty (30) days after �,v�-ittei� �lotice tl�ereaf to Lessee, ui�less a sl�o��te�• x�atice pei-iad, oi- i�o rec�z�ire��le��t of ��otice, is atl�e�•wise spccifcally pa•escx-ibed he�-ein. B. TERlY1INATIDN AND REMEDLES ON DEFAULT BY LESSEE. l. I�1 t11e eve�lt of an Event of DefauIt by Lessee, if siic�� Eve��t af Defa��lt sl�all �e co��tin��ii�g afte�• tl�� applicable �iotice of defaz�It �3eriod }�rovided ii� this Lease Ag�-eex��ent, if applica�le, Lessor may declarc tiiis Le�se Agreeii�ent, a�ad �11 rights a��d i��terests created by it, terminated. If Les�ee elects ta termin�tte, tl�is Lease Agz•een�ent «�ill cease as if the day ai Lessee's electio�� �ve�•e ths day o�•igia�ally fixed i�i tl�e Lease Ag�-ee�x�ent fa�- its expiratio�i. Lessor, at its option, ill�j� I'eSUllle �1055e5510I] O� t�le LeciSed P�•e�i�ises at�ci i•e-Iet theni for tlie �•e�liainder of the Tei7i� at tl�e rent aUtai��able for tlie accou��t af Lessee, who �ija11 ���ake good a��y de�ciency therein. 2. A�1y ter��unatio�� of tliis Lease Agreenaent sliall �ZOt reiieve Lessee fro��l tlie obligatio�i of payi�ig any stun o�� s�ii��s dt�e and �ayable to Lessor under tlie Lease Ag�•eeme�lt at tl�e ti���e of ter�i�i�3atioi� and/or a��y clai�n for da��zages t}�en o�� p�-eviausly accrt�it�g against Lessee tt��der tl�is Lease Agraen�ent. Any suc�� termin�tian shall not prevent Lessar fi•o��� enforcing tile pay�l��nt of at�y sttch suin or suins or clai��l �'or damages by a��y i'eiiledy provided by la«�, cont��act, eq��ity, or atl�ei�vise, incluc�iiig «�itl�out I1lllitc�tlOIl} reca��eri�ig daili�►�es fi•om Lessee a��isi��g fi-oa�� oz• a•elated to a��y ciefault under this Lease Agrcem���t. All Lessoi's �•ights, o�tio��s aud re�lledies u�lder t11is Lease Agreeme��t sliall l�e const�•ued to l�c ct�mulative, a��d i�o o�le of tllein is exclt�sive of the atl�e�•. Lesso�• inay ��irst�e any or all such re��iedies or aily otl�er reii�edy ar relief �rovided by law, ca1�t�•act, eqt�ity a�• atllei-��vise, �vl�ethei• or tlot expressly statect i�� tl�is Lease Agree�nent. 3. I�� the eve��i of an Eveiit of Defa�ilt �y Lessee, Less��• inay, but shail nat l�� req«ired, �•e���edy klle Eve��t af Defa�ilk by �ny i�ecessaiy actio�� az�d, in connection with s«ch remedy, may �3ay ex�3enses anci costs relateci to sticl� c��rative effoi�ts. In sucl� e�reut, Lessee shail pay Lessor for ali SLii11S expe��ded or oblig�tions incurred i�y Lessor i�i coiuiection «�ith ci�ring Lessee's defat�lt. �. Lessor and Lesse� agrae that, for tlie ptri-�oses af posting i�otice }�rescribed Page 23 l�y Sectio�� 93.002 (�} of t31e Texas Property C�de, tlae Fa-o�it door of tl�e Leased Preinises is tiie x�o�•tl� faci��g laanga�� doo�- at 484G �.ockl�eed. C. EVENTS OF DEFAULT OF LESSOR. The term "Evc�it of Defai�lt", as used he�•eit7, s3�all ���ean tl3at Lessor defaults in �erfo�•ming any ter��i, agree�lient or covenant t11at Lessor is �•eqt�ii•ed to ��erfo�•m under tiie Lease Agreeii�e�it, a�ld suel� clefault sl�all i�ot be c��rec� �v�il�i�i ninety (90) days aftei• �vritten �lotice tllereof to Lessor describi��g �vitl� specificity the clai��l of default, along «�itll all �-eq��ired actio��s af Lessoa� to cu�•e st�cl� defa�ilt. It is eYpressiy agreed and stipiiiated tl�at until sucii notice of default is �ravided, a��d SL1CI1 C111'� �l£i'IOC� �1�t5 ex�ired, �lo siicll act or eve��t sI�a11 be c�ee�ned an Event of Default by Lessor herei�nder. D. REMEDIES ON DEFAULT BY LE�S4R. If Lessar defa�llts iu perfornling a��y term, agreem�nt or covena��t tl�at Lesso�- is rec�i�ired ta perfoi�z� ui�de�- tl�is Lease Agreeine�lt, Lessee may, a�et• r�otice to Lesso�-, as provided i�� �ectio�a XIV.C., �•e�nedy tlle Er�e�lt of Defat�lt by auy necessa�y actio�� and, i�� co�i��eclio�� r���itl� such i•emedy, may ��ay expe�ises. Lessor sl��ll pay Lessee all st�ms reasonably ex�ended or reasoi�al�l� obligatio�ls ii�ci�rred ��y Lessee i�i coi�iection with re��iedyiilg Lessee's deFai�lt, so long as s�ich claii��ed defat�lt is ai� Event of Def�tilt I�eretu�der. Lessee may, if t�oT so �•ei�l�biirsed, ciedt�ct the costs a��d expe�lses fro��l �•ei�t sti�bseqiie��tly due ttncler tllis Lease Agi•eement. XV. ASSLTMPTIQN BY UNITED STATES GOVERNMENT Lesse�, suUject to tl�e tem�s he�-eof, ��iay te�-minate this Lease Agreement a�1d its obligatioi�s �i�re�i�lder, by }3ra��idii�g tlai�•ty {30) c3ays �vritten notice, t�pan a�- «�itlai�i tiaia-ty (30) c3a}Ts �fTer the asst�i��ptioi� or rec�pti�re by tl�e Uz�ited States Go��et•��n�erit, or a�ly ��t►ti�orized age�lcy tliereof, of the o���•�tio�i of tii� Aiiport aud the Leased Premises, to the �•es�ilting ext�t�t ti�at tlie uses of the Leased Pren�ises, as prescribed in this Lease Agree�lle��t, can�iot effectively aud practica�Iy Ue a�e�•ated by Lessee, iii ihe �•�aso��able jiid�nent of Lessor. XVI, MISCELLANEOUS PROVISIONS A. ENTIRE AGREEMENT. This Lease Agreeme�It canstitt�tes tile at�tire t«�ciecst��ndia�g �eftiveei� t��e �ai-ties aiid as of its Effective Date si�pe�-sedes all prior or i�aclepe�icie�at agree�ilents Uehveen the parties caveri��g the st�bject mattei- hereaf. Any cl�a�ige or E��odiiacation l�ei-eaf sliali be in �vriting duly autl�orized and sig��ed l�y botli pa�-ties. B. BINDING EF�'�CT, Atl cove��ants, stip��latians a��d agree�i�eiits iiereii� sh�ll r���i �vitl� tl�e la��c� aiid eYtend to, �i�ld and lIILII'� to, tiie �ei�efit af ti�e legal I"£]lfe5�11i�i�1V�S, st►ccesso��s a��c� assig►�s of tl3e �-es�ective pa��ies l�ereta. C. SEVERABILITY. If a provisio�i l�ereof sl�all be finally declared void or illegal by e�lly COl]It Ol' aC�11llI115�I'ai1VC R��11Cy i1cR�'Ifl� JllI15CI1Cti011, thc e�itire Lease Agi•ee�ne��t s3�a11 ��ot be void; I�ut tlle reinaining ��•ovisions shall eontiiit�e iza effect as �iearly as possible i�� accorcla�ice �vith tE1e original inte��t of tiie parties. Paqe 24 D. NOTICE, Notices or otller con�m�i��icatio��s reqt�ired or permiited to be given u�icier tliis Lcase A�;ree���e��t �i���st I�e {i) gi�reil in �vriti��g atld personally deliv�red or inailed by ��re���tid cerTiiied or registered i��ail, reh�rn receipt reqi�ested; ar {ii} trans���ittee� by telepl�ox�ic facsi�nile, as follows: 1. If to Lessor, addressed to: City Mailager City of Dento�l 215 E. vicKii���ey Street Deaiton, Tesas 7G201. FaY No.940.349.5596 �Vitl� co��ies to: Airport Mauager 5000 Ai�-�ort Road Deiiton, Texas '16207 Fax Na. 940. City Attori�ey 215 E. McKi�uley D���ton, Texas '76201 FaY No. 940.3$2.�923 2. If to Lessee, addressed to: Hangars Pi��s, L.L.C. Mi•. Toiiy iViantgo�nery 904 Freizehto»rn Road Argyle, Teaas 76226 With Co�ies to; Ai�y iaotice provideci l�e�-ei�� sl�ali be dee�i�ed to ��ave t�ee�� giveii (�vl�etliei• �cnially recei�Tec� or iiot} on the day it is �ersonally delive�•ed as aforesaid, or, if iiiailed, o�i tl�e tllird c3ay a�te�� it is i�laiied as afaresaid, or, if trai3siniTted by telephonic facsiinile, o�� the ciay sucli notice is t�•a��siiiitted, �ul�ic�lever is earliest to occur. Any party may cl�a�ige its address fo�• tl�e pt�r�oses of this Lease Ag�•ee���ent l�y gi�ing notice of sucl� cl�ange to tlze ot��er pai-�ies Page 2S }�i���sua»t to tl�is Section �VI.D. E. k-tEADINGS. Tl�e l�eadi��gs �3sed in tl�is Lease Agreeme�it are inte�ided for coiive��ience of z-efe�-e��ce o��ly ai�d do ilot c�efii3e o�• li���it tlle scope or �nea►�ii�g af any ��ro��ision of tliis A��•een�ez�t. F. GOVERNIlVG LAW AND VENUE. THIS LEASE AGREEMENT IS TO BE C4NSTRIIED 1N ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND IS FULLY PERFORMABLE IN DENTON COUNTY, TE�AS. EXCLUSNE VENUE FOR ANY ACTION RELATED TO THIS LEASE AGREEMENT SIIALL BE SOLELY �N A C�URT OF COMPETENT TUR�SDICTION 1N DENTON COUNTY, TEXAS. G. �F� WAIVER. Na �vaiver l�y Lesso�• or Lessee of a��y defa�ilt or I�reacl� of cov�naiit or teR-��� of tl�is Lease Ag�•eement j��ay be treateci as a waiver of a3�y s��bseqi�ent default ar Ureacl� of tl�e same a�- any other eovenailt or ter��� of this Lease Ag�•eement. 1�. NO AGENCY. Dt►�•i��g all ti�nes tliat tl�is Lease Agree���ent is i�� effect, the pa�-ties agi•ee ihat Lessee sllali not in a��y evejit Ue clee�i�eci az� agez�i oz- enl�loyee of tl�e Lessa�-, �loa- sl�all tl�is Lease Agreei�ient be caiistr��ed to create o�• coz�stit«te a joi��t e�lterprise. I. FORCE MA.iEURE. None of the Parties sliall b� ii� defat�lt or otl�ervt7ise liable for ai�y dclay i�7 or fail►��•e of �erfoai��auce t�nder tlus Lcase Ag���e��l�nt if st�cli delay or tailttre a�'ises I�y atly �•cason l�eyotid tlteir �•easonable control, incli�din� auy act of God, any acts of tl�e co��li�7o�� ene��iy or terroris��l, tl�e elements, eai�tljquakes, flooc�s, fires, epideii�ics, riots, failtE�•es o�� delay in trauspoi-�atioil or coi��ll�xiucatio��s. Hor���e��e�•, lack of fii�lds shall i�ot l�e cieemec� to i�e � reasoi� beyo3id a pa�-ty's reasoi�able cantrol, I�� the e��ent either party he�-eta is i�ot able to perfai��l ti�ic�e�• tl�is Lease Agree��ient due to au aileged event of �az�ce z��ajeuz�e, as set fortl� l�erein, st�ch pa�-ty shalI provide notice to tlie otlier �arty, on or before five (5} caleildar days af�er ttie acc�i��rence of s�ich evei�t (i} specificaily desc�•i�i��g such force n�ajeurc eve��t; (ii) ciesc�•iUi�ig witli specificity the acts ta be taken }�y the party clai�ni�Ig force �izajei�re to i•emedy th� force majeui•e e��e��t; and (iii) tlie estimatec� time to ren�edy ths force �i�ajeuz-e eve��t. In tl�e event tlle natice as set fortl� hereiil is not pi•o��ided it slaall be deciliec� far �tll pt�r�oses Eh�t na sucl� force n�ajei��-e eve�it has occurred. J. RELEASE OF LESSOR. Ii Lesso� sells or t���z�sfe�-s �11 a�� �>a�-t of tl�e Leased P��et�lises art�d as a��ai�t of tlle tr�i�saction RS51g125 its inter�sts as L�ssor i�l tl�is Lease Agreenie��t, tl�en as of tlie effecti��e date of the sale, assig�i���ent or t�•a��sfer, Lesso�• s�iall ha�fe �io iiirther liabiiiYy u��dcr tl�is Lease ta Lessee, exce��t �vitli �•espect to liaviiity in��tters tl�at l�ave acc��€�ed and a��e �lnsatisfieci as of sucll date. Ut�d�rlying this release is the parties' ii�teiit t[�at Lesso3�'s covei�ants a��d obligatian�, ex�ress aizd in�plieci, i�izder iiiis Lease Ag�•eeme��t �a�ill biz�ci Lessor and its s��ccessors �t�1d assigl�s anly durii�g aa�c� i�a �-espect of tl�ei�• successive pe�-ioc�s of o«��lersliip of tlie ���iciei-lyi�ig fee estate of tl�e �.easeci Premises. K. LESSEE REFERENCES. I�� ti�e e��e�at R�equested by Lessor, Lessee shall deliver, fi-o�i� time to time as a•eqt�ested, c��edit a2�d baa�ki��g ��eferenees as Lesso�� may �•easona�ly Paqe 26 rec�tiiest, e�i�rii��; th� t���rz1 c�f tt7is Lease Agi•eeiiie��t. L. ��EIv1�l�ANT�LTIV� t�F LEASE. U��at� 1'ec�ucs� of eitl�ci' �a�t}F lieret�a, tlle �at-ties �li�tll e�ecttte a IVleilto�`�tncit�t�7 af Lease far �he pui�ase a�f impartii�g to tl�e ��t��alic natic� c�f t�l� erisiei�ce c�I` t11is Lea�e n.�i�een�ea�t, ���d/a�- it� s�ll�se���e��t a���ea�cl�xae��t, a�iaclifica�io�� or. e�r�ly teriiligiaticar�, t�a b� fi iecl ii� tlie Re�l Property I•'.ccords af Dei�totl �ot�i�ty, Tex�s. ivl. AIRI'OI2T SPe�NSQR. I�!oi��riti�st�i�di��� ��ly }�ra�risic��l co��t�i�zeci 11e�°�i�� fa l��e cc�n���4�r��, �,essc�r �i��y lir��it ar t�n��a�'•�t°ily/ c�t�sti°�ick �ccess to t97e Le�sec3 PE�e���is�� t���cUor P�it�lic �t�e�s oi: t�ie r�,iipc�rt i�� ear7t��ctiot7 �r=iil� nr 1•e]atecl �c� e��ei�ts oec�i�•1•in� at tl�� Air7���•t. Les�ee stiE���la�es tl��t �.�ssa�i° sll�i�l 11��4re s��ci� ri�l�t ta li�j�it oi• tet��pa�•ai°ily ol�str«ck sucf� Gtcc�ss ittaci l�e�-el��� i�ele��ses Lessor, ��s c�fficei-s, electeci c�fficials, ageilts ailci er�l�loy�es ft�c�ji� aii)� 1c�sscs, clana�l�es Qa� cl��i�l�s c�f �,1�= kir�cl or. type tf1�t Le,�see i���y ha�fe related io s�tc�� [i�z�itecl ai° ak�strlictcci ��cces�. L�M�les� tk�as �.e�se Ag��eea���z�t �tl�e����Pise ��llo��rs s�icl�. ol�s#r�ictio�� at� LessQ�° ��icl Less�e otfici��risc ��i•ce, L,cssor s1a311 �ia# cc�in�letely ot�stl-�ict access t� tElc Lc�lscci Pre���ises fQr �t paer�oc3 ii� excess of n�ren�y-fout° (2�} co�7secErtiele hotu•s rel�tteci ta s�:t�cl� s��eci�1 e��ei�ts. P�, SIJ�3LESSEES___�u'`�D ASS[G���S. Tl� tlae eve�lt th�s Le�se Agree�7��zat ��a�av�c�es a��}�lic���ilit}� of �tly c�f it� �7t•a��isic���s tc� sula-less��s az� �ssigi�s, �G�cl� E�z�ovisi��� s�i��il 1�e cleet7��c3 t� t�tea�� solel}r tlle st�b-lcssecs Qr ��ssi�;�iees of` Less�c, Eis r71�y i�c ���°i�litte�l l�y Lessol-. O. TT1�,�IE �F E�SENGE. It is e�����e��l}f agr�eci l�y Lessr�r ���d Lessee tl�ai tixa�e is c�f tl�e esse�ice ��,tith res}�ect ta t�3is Le1sc A�t��emeiit. I\r ��TITIWESS �VH�R��JF, il�� ���rt�es ll�tve execukecl tl�is Le�tse A�1•�e�i�e�it �s af i�le Effectit�e T�ate �ir'st �l�ove �d�t'ittera. CITI' (�F IaENTC�N, `I"EXAS, �.ESSOR _. � �� �, "` r �.� -�' .�- BY: �,��-�`--� °� ,.�.. ���� .�.,r� .�,.__ G�t�RGE C, CA.3VIPBEL�, CiT'�' iVIt�NAGER �TTES'T: �Ei�N�"ER WALTER�, C1Ti' SECI�ETAI�S�' �_. „, T � r '� , L�T i ^.,.v f �./ ,..,,, . �� � Paye 27 APF'I�dVEL7 t�S TC� �.EGAL, �QR:il�: �NIT.�,, �UR.GESS, GIT�' ATTQRi'�i�'�r �� ,� � �.� � � 131" • , � � ,,��� �'`��' ' � � ,v.j �� � L�SSEE; HAl'+iGA�S P:�,USf L.L.G. �3�r` ,�'�- ��� � ��.� 1'tiT.�`l�: dJ`A'� ��rr,'t f°�, ,�t`°�'r`�s�,, �"�`�� `�'��".-�", 4. l. Y L.�li:�. ��"� �,i "r L!+"i�-� /'�-✓ C-�`.✓"� �`'� P�1fJ� �� THE S`i'AT� O�' TE�AS C(�UN�Iry�' C)F D�ENT�i'�I � ACI�IO�'�L,EDCZviENT�S ���. Tllis i�lsit•�ui�ejlt zvas �cictyQ���Lec��ec� 1�efare �IZ� o�i tlie �� day aC. ������..�"� , 2UI2_, t��t Gec�r�c C. Ca�i���l�ell, C�ty �.�i��laget• of tl7e Cit:y of De��ton, Te��ls, �F� U�llalf �af s�id r��i�llici�jalify. ° , �nr�'Ertr ""`.�" .� .�.�.�,.o.��,�, ' : � ��5 ���f�i� i���N'!@`��e �' 1+�%,�n�T�f�"� � ` �; � f { j � ��ui�r� E��re,:Pl� `;tr��e r�r 7�x�as ��., / , � ��� {� dt�l4, �c����,rti��s�:}r� �,x,€r�� .•, - ( � >� �-� ,w ���`��+i,�4+''� _ �1��t�k���!�� � �r "��� 4 �'Td�'f T i7� �, ��'�T�" �}�' �'�r��A,� �� �.n.y _ THT STA,TE C�F TE;�AS � ��l�i�IT�'" �1� I�ENT(�N This il�str�ar�ie��t �r��s ackr�ca�tif�e�ig�ci l�efc�t•e �I�e on t�ie `� c��ty of ��� ���.� ��, 201� Uy ��..��1t� �. �`�et���Cr"���1��''Gf , o31}ael�al#`ofI-��i�g�rs �lt�s, L.L.C. r t,�. ,�� � �'.���. - E < <.N �Y=_� 'b . i4�.�< . k f_ ,� ?r 7� 4'A�. �r��l' � �c> l(� '(.s t I � r�qz 4� �,.t'.. 5 CS i, g . � � � rk � � ��t{ �� i�� ,� ,�.�� : s `� �t ` � E� �: y?u `iwY` 4$ �, �b-.` k. i}r f � (�J� ` �_.�1 �- �'�'� � } �„� : - I�Q I" RY PLTBLIC, STATE �F 'I'E�,'.AS Pc7C�Q� �.� �$�f ia ,r�. .,� �J�,�t�� �cr7tr�l ic.��� �011�'Y��� �p� iat�5t�:�'�i➢15iI�R'� � 7��i�,���1 .; i � li �ISCLAIM�R 7his daFa has 6aen compiled for NCTGQG. Warious o��ial and unc�f�cia[ sources were used to gathar lhis infarmalion. Every eifort tivas made to ensure the accuracy of ihis dsta, hotiuever, ncr guarantee Es giuen or �mpli2d as to tha accurecy af said data. AIRPORT AGREEMENT �84G LOCI�HEED, DENTON AIRPORT ATTACHMENT "B" Lessor I�nprovements �NONE: T7rere �vilJ be no ij�tpj•a��etttc�trfis p�•rn�idecf Uj� Le�ssar, except �as ttra�� be set fof�tlr irr Ar�trcic,� II.F., "Access to Utilitres ".j