HomeMy WebLinkAboutC2007-253 - 8/21/2007 - ApprovedR~AL ~~TAT~ ~PTI~~~I A~R~~M~NT
T i~ ~ I- est~te option ~~r~~ment ~~h~ "Ag~eerr~~n~"} i~ er~t~r~d inta thi~ ~y o~
~~D7, by ~rr~ be~vv~~n the~ ~i#y ~f ~ar~us ~hrE~ti, a Tex~~ h~r~e-r~~~
mun' ip~f corparation, acting by and #hrou~h it~ ~i#y N~~n~ger ar h~~ ~~signee ~"~it~"},
an~ the Ur~ite~ ~~~~~s ~f Arneri~a, a~~in~ by ~r~d ~h~ou~h the ~ener~l ~ervi~~s
Admi~i~tration ~th~ "~~der~! ~ov~~nm~nt"} ~rhase regior~al addre~s i~ 8~ 9`T~ylar ~~reet;
R~f 12~~ ~, F~rk INork~, T~ ?G~ ~~. ~
~IIF~~R~AS, the F~d~r~~ ~~vern~~n~ ~~sir~s #o io~ate cer#a~n federal ag~n~i~~ and
r~~ated facilitie~ vuithin ~orpu~ ~hris~i, N~~ce~ ~our~t~, T~x~~, and t~~ ~~t~ fnter~d~ ~o
volur~~~r~l~ grant to tk~~ F~deral ~ove~r~m~nt ~n option ~o lea~e a par~el af r~a~ p~aper~y
la~a~e~ at ~orpu~ ~hristi Ir~tern~#ional Airport; and
II~IH~R~A~, th~ ~ed~ral ~vv~rnm~nt re~uires an opt~on ~o le~~e the ~ite f~r use a~ ~r~
air~raft h~ngar, apron, a~d office buil~in~ in ~he ~on~~r~~~~on ~nd ~pera~~on o~ ~ facil~~y
f~rthe llnited ~tat~s ~~ast ~uard.
N~1JU, TH~R~~~RE, in ~ansidera~ion o~ the ab~ve ~~~i~~ls, ~he mutu~l a~liga~EOns of
t~e par~~~~ t~ th~~ Agreem~n~ including c~ntingent optivn consider~ti~n in ~he an~ount of
T~N D~L~R~ ~~1D.~~} ~n~ other v~lu~bie ~~nsi~er~~ion, the sufficienc~ of v~r~i~h ~~
h~r~b~ ~~knouvledge~, t~~ par~ie~ ~gr~e as fall~vus:
~. ~PTI~N
~.~~. "P~vp~rt~". The r~al property tha~ t~ tl~~ ~ubj~ct of ~hi~ Ag~e~r~~nt
~ons~~~s of ~pproxi~n~t~~y ~ G acr~s lo~ated at ~arpu~ ~h~~sti Int~rn~~~~r~al Airport,
~v~pus ~I~risti, Nueces ~ount}~, Texa~, a~ de~~ribed in Exhi~it "A," ~rhi~h i~ atta~hed to
th~s Agr~er~-ent ~nd in~orpor~te~ into #his A~reement ~y refe~~nce ~"P~ap~r~y"}.
~ .~2. "~ ~ion". T~e ~it~r h~~eby ~r~~~s ~o the Fede~al ~av~rnr~~nt th~
e~c~l~s~ve right ~nd o~ti~n to el~ct, ~t any ~ime during the ~erm of the o~~iv~, a~ defined
her~in, to ~~a~~ from ~h~ ~it~ ~II or port~ons of ~he Prvp~rty, subj~ct to the t~rm~ ~nd
~or~ditions ~et ~o~th 'rn thi~ A~re~rr~~nt ~su~h ri~ht and o~tivn to ~le~t to I~a~e by the
Federal ~~vernm~r~t b~~n~ r~f~rred ~o hereir~ ~s ~n "~pti~n" orthe "~ptiar~"}.
1.0~. "~ptian ~on~id~rati~n". The Fed~ral ~overnmen~ ~hal! pay t~ the ~it~r
optior~ cvn~i~eration ir~ ~he amount af TE~I D~LLARS ~~1 ~.~~} v`rit~in ~hirty {~~~ days of
th~ ~ffectiv~ d~te of ~his Agr~~m~nt. F~r purpo~e~ ~f this Agre~r~~nt, th~ e~fective da~e
me~n~ th~ da~t~ or~ ~hi~h th~s Agr~e~~n~ i~ exe~uted by the ~i~y'~ ~it~r I~an~ger ar
~~signee ~"~ffective ~ate'~}. ~uch paymen~ mus~ be s~n~ tv the addre~s ~isted ~in
~e~t~on 3.~4 ofi#hi~ Agreer~ent~
1 ~04 "T~r~ ,~f ~ption". Tl~e ~p~ran ~amm~nc~~ a~ of the ~ff~~~iv~ ~~~e and
c~ntinue~ in effe~t for ~~5 da~~ ~her~~fter ~~h~ "~ption Periad"}. The ~~tion Pe~~ad rn~~r
~e ~r~end~d by mutual a~reem~n~ ~f th~ pa~kie~.
~~07^~~3
081~~.~~7
RES. ~~73~7
U~~~GSA
~ .~~. "Ex~~ci~e o~ ~ption," ~ho~ld the F~der~~ ~overnm~nt elect tv ~~ce~ci~~
t~e ~pt~~n ~~~ured b~ #his A~reement, th~ F~der~l ~ove~nm~r~~ m~~~ do s~ in uvritin~
pr~or to th~ ~xp~~~~i~n ~f th~ ~pti~n Period. Upon a va~lid exercise ~f the Dpti~n, ~h~ ~~t~r
cov~r~ants n~t to ~nter int~ any lea~e neg~~i~tions ~r ~ransactions concernin~ the
Pr~perk~r far ~ pe~iod vf nine~y ~~0} da~r~ f~ll~v~ring exerc~~~ of the ~ption.
~.D~. "Assi~nment of ~pti~n"~ The F~d~ral ~overnr~~r~t may ~~si~n th~ ~p~~on
to ~nather p~rty b~ del~ve~in~ ~r~ ~~ilir~g such v~rritt~n no~~ce of reque~~ for assi~nm~nt t~
the ~ity ~~ ~ny tir~~ b~for~ e~cpiration o~ ~h~ ~ption Peri~d ~nd upon the ~it~'~ ~pprov~i
in ~rifing of su~h a~~ignm~nt, such approval no~ ta be unreason~bl~r ~~tl~held by ~k~e
C~ty.
~. L~ASE
~.~~ ."Form of I~eas~". In the ev~r~t ~h~t the ~eder~f ~~v~rnment e~erci~~~ ~h~
~pti~n ~onternpl~~~d underthis Agre~ment, ~ leas~, ~n ~ub~t~nt~~~ly t~e ~a~e farm a~ is
~tta~~ed #o th~~ Agre~rnent a~ ~xhibit "B," v~ill h~ nego~~~ted in gaod f~ith and ~n~e~e~
in#o ~y th~ parties ~ith~n n~rrety ~90} days ~f exerc~s~ of the ~~tion.
~.~2. "~.~~~e Terr~~". The firm term ~f the lea~e ~s anti~ipated to b~ n~t ~es~
th~n 4~0 month~. Add~tian~~ly, #h~ Fede~~l Covernr~~nt ma~ have ~wo ~~~-m~nth
~pt~~ns ~o ~xt~nd the firr~ ~erm of th~ le~~e.
3. MI~~ELL~N~U~
~.D1. "T~~tin ". Th~ ~ederal ~ove~rrrnent ~n~ it~ ~gents, repr~senta#ives, ~nd
~mplo~~~s p~rtic~p~ti~g in the construc~ion cantrac~ ~c~ui~ition proc~~~ far th~ F~d~ra~
~ov~rnme~t, at tf~eir sol~ exp~r~~~, ~hall h~ve th~ ri~ht dur~ng th~ ~ption Per~a~,
~ub~~ct to the rig~~s, in~ere~t and u~e~ made ofi th~ Praperk~r by ~he ~ity, ~o enter u~~n
th~ ~~opert~ for t~e pu~po~es of in~pe~ting ~he same, ~nakin~ t~~t hor~ng~, pl~n~,
t~p~graphical and bound~ry ~urveys, a~d any other ne~es~ary ~n~pection~ ~n
connec~ion vuith tl~~ ~on~~mp~at~d u~~ of t~e Prop~rt~. Tl~e ~~der~l ~~v~rnrnent ~nd its
2~~~11~~, I"~~I'~~~11~~~IV~~, ~i1C~ ~I'1'1~~~~~~~ ~~f~ICl~~~ll1~ il1 ~~1~ C~I"i~~I~UC~l~~1 C~~1~~'~~~
~~quisiti~n pr~ce~~, ~t t~eir sole exp~r~s~, ~~~II ~r~r~ptl~ re~t~r~ the Rroperty t~ the
~~11C~1~1~~1 1C1 ~11~~11~I1 I~ ~~I~~~:~ ~1~I~C ~~ ~I1~ 111~~C1~1~ ~~ ~Cl]I Sll~I~ II~~~~Gtl~l1, ~~st ~orin~, pl~n,
topv~r~phi~al or boundary ~urv~ry, or any o~h~r nec~~sary in~p~c~~~n ir~ ac~ardanc~
vtiri#h ~aod ~ngineering ~nd g~o~hy~ic~l pr~ctic~s~
~.0~. "1l~~~e". T~~ ~bligati~r~s and un~ertak~n~s of each af th~ par~i~~ to th~~
Agreemen# r~u~t be per~~rrr~ed ~n ~~r~us ~hristi, Nue~~s ~aun~y, T~x~s.
~.~~ "I~~difi~ation". ~hi~ Agr~err~ent m~~ ~e ~rr~end~d or ~~difi~d oni~ by a
~rriting ~igne~ by both of the par~ie~ to thi~ Agr~~ment,
3.D4 "No~i~e~". Ar~y na~i~~, tender, ~r d~~ive~y ~o ~e giv~n b~r eith~r par~y to ~he
~
ot~er may ~e eff~~ted b~ per~on~i d~livery in ~r~itin~ o~ by r~gi~t~red o~ cer~ifi~d ~ail,
~o~ta~~ pr~pa~d, return r~c~ipt r~qu~s~ed, an~ i~ d~emed r~~eived upon ~~tu~l r~ceipt
of sam~. No~i~~~, t~nd~r~, and deliveri~s to ~itl~er party must b~ addre~~ed a~ set far~h
~elo~, Ea~h ~arty ma~ c~an~~ it~ ~~dres~ by writt~n notice ir~ acc~rdan~~ uvith thi~
par~graph.
~ity of ~or~u~ ~hristi:
,
~orpu~ ~hristi In~erna~ional ~irport
D~rector ~f Avi~ti~n
~~OD fnt~rr~~tional Drive
~orpu~ ~hristi, T~ ~84~G
Fed~~~l ~ov~rr~rn~nt:
~d uardo C~. P~rez
~ontr~~c~ir~g ~ffi~er
~ener~l Servic~~ Adrr~inistr~#~on
~~0 ~. ~#" ~#re~t, ~ui~~ ~~1 ~0
Aus~ir~, l`exas 78~0~ .
~.~~. "~~~or~a~ion". Tf~i~ Agr~ernen~ m~y b~ ~~c~rd~d in the p~biic r~a~
propert~ r~cords b~ ~ither p~rty. Each ~hal~, upan the requ~~t ~f tl~e ~~h~r, jain in any
instrur~er~t or do~um~n# in re~ord~ble forrn as r~ay ~e ne~~~s~ry t~ r~leas~ rights
gr~nted under~hi~ Agr~~rr~~nt shoul~ this ~pt~on ~~rrnin~~e.
TH~ ~I~Y ~F ~~RPUS ~HRI~T~ Uf~ITED ~T~TE~ ~F A~I~RI~A
~ENERAL ~E~VI~E~ A~MIN1~ TI~N
~o~ Vl~o~th, Texas 7~ 1 D~
~
-- - ___
~rge K. Na~ ~dua~lo . Pe~ez
~~t}~ M~n~~er ~on~ra~ting ~ffi~er
At~est:
Arrr~and0 Ch~p~, ~Ity S ret~ry
Approve~ ~~ ~o ~ega~~ form:
1
~ _ _~ ~ _
~ A~"H~R~~
~ C~~~~l
....~aw.4.r~+~r~41r
S~c ~
Eliza h Mund~~~i
As~is n~ ~i~~ Atto~ney
for #he ~ity Attor~ey
~
~"`~~ I ~ ~T ii~lf
C I
REAL E~~ATE
~
~
~
~
~
~
~
~
~
.~
~
~
.~
~
.~
~
E~~-I I B IT "g"
~round Lease a~ ~vrpu~ ~hri~ti Interr~a~ional ~irport
Befi~v~err the
~it~ of ~orpus ~hr~s~i
And
TABLE ~F ~~NT'~~IT~
~ ~ i itiJi.ii~.~.I~ 4~~4i~~fF4~~4~~~4i4#~4a~~~ar~~f~~~~~~rF~~~~~Y~4~~4F4~~4~~~~#4~~~~a~asaFF~~~~~~~~fiFY~i4~~~~s#~4~~a~~~~~irF~~~~~~~~is~f~~i~~~~ir~ ~
i.fi JJ11~1~+ `J.J~~ F~~~~~~~~ia~~~~~~~~~r~FfY~~~4~~FF~~~4~~~~arF~~~~~~f~r~~~~~~~~~iMFY~~4*~~asa~~~a~~~~~is~~~~~f~~~~~+F~Y~i~~~~i+~~~~~~~~iiFF 1
~~ RENT AND ~'~I~~~ CHA~CE~ F~YAB~E ~~ L~S~EE ~~~~is~~Y~s~~~~~+FF1~a~~~~airt~~~~~~~~ir~~~~~~~f~~ ~ V
4. US~ ~~' PREMI~E~aais~~~a~~~~~rt~~~~Y~~~~iF~~~~~~~aas~~~~~~~~is~~~~~~~~is~F~~~~*~~~i4~a~~~~~~~ist~~~~~~~~~~4MFf~~~~~~~#~4a~~~~~ai 11
5. CO~ID~TI~N ~F P~.~PERT~Y; MA~NT~N~AN~~, R~PAI~~ AND ~~P~~~EM~NT`~
1~
~. ~ITY '~ ~BLIC ATI~N~il~~4~~4F~~~~~a~as~~a~a~~~f~rsff~~~~4i4F~~t~~4~~#fF~~~~~~~~isF~~~~~~f~~s~~4Y~~~~~a~sF~~~~a~~~isF~~~~~~~~~ ~ 9
f~ i i~~~~l ~1*i~l ~ 1 11111/ ~~+JJLJJ..Ri 1 il 1\J Yi~~f~~4~~4~aa~~ar~~~a~~~~irF~~~~ifYii~#FF4~~*~aaarF~~~~~~~~~~rs~~~~~~~i~}FF4~~~~~~i r+~
~- ~~VERNMENT ~'~IPL~LA'~~~NS •~~~~~~~~~~ir~~~~~~~~r~~~~~~~~~+4fF~1~~a~~aia~a~~~~~~~rt~~~~~Y~f~~~fF4~~~~~aaa~~~~~~~a~i ~~
~a 1 ili~~/i\.i iJ. .F *J~1--+~ i 11 ^~ l i.l~ ••l i•~rF~~~~4~~4i~iFY~~~~~~4FY~~a~aaairF~~f~~~~f~~iMY~i~~4~~4F~}a~a~~~~~isF~~~~~~~~ii~~~i~~i~~ r+V
~~• ~~11~1~~~liTill\~~11f~lAFF~MATI~~ A~T~~N~ ~}ifF4~~~~~~ais~~~~~~~~~rF~~f~~~Yl~~~iFF~~4~~~ai~~~~~a~~~i i.I~
~ ~• Vi il ~~.+iJiJJ..e/.~.F.RV~ 1~1Y1*1111~114J11F~f~i4ifiFY~~*~{~4~4~~~~~~irFF~~f~~~~f~iiff~~4~4~~+f~Y~~a~~~~iaFF~~~~~~~~rF~~~~~~~~~ ~~
~~4+. ~NDEMNIFI~ATI~I~~it~~~~~~~~~~FY~~4~~~~4~~~~aa~~~~at~~~~~~~~r~~~~~~~i~+FF41~~~~~aaa~~~~~~~~~irt~~~~~~~~i~+FF~~~a~~aar~~~~a~~~ai ~~
~ ~• il \~ V ~~ \ \f~F~4~~4FF4~4~~~af~a~~~~a~irF~~~~~~firF~~~~~~li~+F44~aa~aar~~~~~~~~irFF~~~~~~~~~r~ff~~~~i~a+~~4~~~~~~~irF~~~~f~~~~r~~f~~~~4~~ i.f~
1~4 1\~J~~L+Lart~~~~~~~~~ir~~~~~~~~~t~~~~~~fi~4MY~~4~~~~#~a~~a~~~~irt~~~~~~~~r~~~~~~4i~4F~F~~~a~a~aa~~~~a~~~~ir~~~~~~~~4~~4F4~~~~~~air~~a~~~~~ii ~{J
~~• iJ~~~~JL~tiJ~iJ 1T1~1i1 ~l11~JJ.J~ ~~~~f~~~~s~~~~~Y~~~~4FF}~4~~aar~~~~~a~~iaF~~~~~f~~~~r~F~i~~~~~~r~ra~~a~~a~ir~~~~~f~f~rs~lf~4~~~~4 r+kJ
1 ~. ~ENERAL P1~0~~~I~~I~~ •i~}FY~~~~~~~#~a~~~~~~~irFa~~~~~~~s~~~~Y~4~~+~~r~~aa~~~ir~~~~~~~~~rs~~f~~Y~~~~~iFF}~~~~~asa~~~~~~~fir ~ ~
~~~li «~~~ ~~~1~J.1~ ~~~~F4~~a~~~~ar~~~~f~~~~s~~~i4~~~~~4FY}~4~aaaa~~~~~a~~rF~~~~~~f~~~~r~F~~4~~~~4#4aa~aa~~~air~~~~~~~~~ri~~Y~~~i~~i ~~
E~Y~IT "B" LE~AL DE~CRIFT~~N ~F AIRPORT FR.~P~~TYis~a~~a~~~~st~~~~~~~~~~~iFF*~i~~~ast~~~~~~~~is ~7
EXHIBIT "~" ~~ANS AND ~PE~IFI~AT~~~1~ F~~~4~~~aa~a~~~~~~iF~~~~~~~~~~ir~~~i4~~~~4F4a~~a~~~~aiF~~~~~~~f~sF~~~~~~N4• 4~
E~IBIT "D" AIR~RAFT OF~~A~'1N~ AREA~~~~~~~~~if~i~~~~~4FF~~~~a~~~ais~~~~~~~~~sF~~~~~Y~-~~#iF4~~a~~aas~a~~~~~~~sF 4~
~~~~~~ ~~~~~ ~r~~J~l l~~ li. •~L~~~~1 ~ ~~a~~a~~~iF~~~~~~~~rF~~~~~~~~f~~iF4~~~l~aar~~~~~~~~~~irF~~~~f~l~~iFf~~~~~~art
11 M ~it
~
Th~~ Lea~e i~ bet~een the Cit~ o~ ~~rp~~ ~hri~ti, a'Texas ha~ne-ru~e municipal c~rpora~~on
{~i~~, an~ , a ~vrp~rat~an, ~~e~see}, ~ith respect
t~ ~he follov~~~.g fa~t~, and i~ as follo~v~;
~E~ITAL~
~it~ o~vn~ ~orpu~ ~hri~ti Internation~~ ~~~ort ~"A~rpor~"}, Io~ate~ in Nueces Caun#y,
~tate af ~`ex.~s~
~essee de~ire~ to leas~ a~e~~in paxcel of la~d ~t ~he Airport ~o ~on~t~ruc~ a
~o ~e ~~bleased ~o U~ited ~t~t~s ~aa~~ ~u~rd ~U~~~~, a~
~et ou~ in ~ectia~ 7, ~"Sublessee"~.
The par~~e~ ~vi~h to enter inta a~tten lease for land on w~i~~ Le~~ee ~ill canst~ruc~ said
, V~~11~~11~1~~11C~~S V~~11C~~~' ~I]C~ ~~~'GT~~ ~~'~ll~~ ~`~~.SI~~~`~~1, han~ar
and office ~pace for th~ ~urp~se af can~u~ting go~rern.mentall~nilit~ operati~ns and related ~se~
~`~ ss~ 1~1C~~~ ~~1~ ~~~~ ~[~ CQ~I(~1~1~I75 ~1~~~1~! C0~1~~.1~1~.
7'he term "Lessee" in~lude~ "~uble~~ee" ~here~~~r app~tcable.
A~~~MEI~T'
1, ~REMI~E~
~ity ~eases unto Les~ee ~n ar~a~ located at t~e Pzo~er~~ described in Exb~~b~t "B"
~"Legal Des~rip~ia~ of Airport Proper~y"} and as ~epic~ed in Exhib~t ~`A" ~"Premises"}, far
~per~t~o~s, ~v~ich in~lude~ square fee~ of land
~ogether ~ith ea.~e~e~~~y ~~ces~ for ingress and egr~s~, and parkin~ are~~.
Z. BA~~~ 'T~RN~S
~,1 Lease Term. Thi~ L~a~se i~ for a term of ~or~~ ~4~} ~ear~ be~inning,
,"Ef~ect~~e ~ate" if Lessee do~~ not default in a terrn,
~~ndition, or ~rovisi~n hereof.
2,2 ~ptian~ To ~xtend, Les~ee sha~l h~~e, ~t it~ ~ptian, tv~o ~2} ~~~c~~~i~e non-
auto~natic aptions ta exte~d ~he Lease T`erm, ea~h s~~~ op~ion being for a per~od af
ten ~ 1~} yea~s ~e~ch such per~od also x~~er~ed to herein as an "~xten~ion Perio~"}.
~e~see sha11 n~tif~ ~~t~ of it~ ~r~~en~ t~ ~x~rcise t~e opti~n ~n ~vritin~ at 1e~st ~inety
~~~~ C~~~~ ~~`10~' t~ ~l~ ~X~]1T~ttDI1 ~~ ~~~ Ii11~1~~ T~I'~]7 0~' EX~~I1~1D~ P~~`l~C~, as the ca~e
rr~a~ ~e. Minimu~n A~ual Rent for each Ren~~val ~erm sha11 be an ~na~~n~ eq~al
~o the ~ie~ current Marke~ R~~e, ~s ~ereinafter ~e~ined. As used herein, t~i~ term
"Mar~et R~te" ~~a~ll ~ne~n and refer ta the prod~ct o~' the Per ~qu~x~ ~'oat Market
Rate ~a~ here~n de~ined~ ~ir~~s ~nr the cor~bi~a~d ~~tua~ ~qua~~ faata~e of
~
the Pren~i~es. ~~r the pur~o~es of t~ai~ c~~culation, the tenm "Per ~quar~ Foo~
Market ~~te" ~ill ~n~~ a~d r~fer t~ ~ p~~ ~qua~e f~at ~rental rate determined ~~
~and~ord, ba~ed upon ~ental r~te~ then ~e~ng char~~d ~'~r pr~mise~ of ~in~ilar ~ize,
~f a ~~milar age, and v~ith ~~~ni~ar ~r~pro~ement~ ~n Nue~e~ ~out~ty, ~`e~~s, ~akin~
into ~~count t~e then curren~ i~terest rate ~~i~nat~ for ~ortgage indeb~edne~s, The
I~andlord v~~ll ~eter~mine t~e ~er ~~uaxe ~aat M~rket Rate ~d ~he ~Vlar~~t ~~~e fo~
ea~ch ~enev~al Terrr~, and provide ~vri~~n ~no~tce to ~'en~nt ~f it~ determin~t~on,
~1~~11I] t~l1l`~~ ~~~~ C~~.~S fol~o~rir~~ La~dl~rd's ~e~eipt of t~e T~~ar~t'~ notice,
~xerci~~ng its right to ~xtend the Leas~ Te~rm ~~r ~h~ appti~a~le Rene~val Te~m
~erein a"M~.~r~e~ ~ate Nati~e"}, If t~e ~`enant ~oes r~ot ob~e~t to the M~rl~e~ Ra~e
specified in an~ such ll~~.rket Rate No~ice, VL~1~.11~ ~~11T~~ ~~~} C~~~15 ~01~O~V1~1~ ~'~C~1~~
th~reo~, ~he Mi~in~~m Annu~~ ~ent for t~~ ~ene~va~ Term sha11 be ~he Mar1~e~ Rate
s~ecified ir~ the IVlarket ~~.te No~ice. ~~ the T~n~nt does obje~t to ~~e N~~rket Rat~
s~e~i~ed in an~ ~~ch Marke~ Ra~e Natic~, ~vith~~ ~ie th~rty ~3 ~~ day period
pra~ide~, ~hen Land~o~rd and Te~a~t ~ha~1 each appa~nt an appratser quali~ie~ to
determine Ma~rket R~t~, ar~.d tho~e t~vo ~pprai~e~s shall either agree to a. ~oint
determxn~tion of Marl~et Rate, ~hic~i ~hall be ~indin~ u~on Landl~rd and Tena~t,
or, if th~y c~no~ agree, t~en ~hey ~hal~ a~poinx a third ~pprai~er, ~vhose
C~~t~I"~Il~~~l~~l S~l~~~ ~1~ ~1t1C~lll~; p~~vided, how~~er, T~~1~I1~ t11~~ ~1~~C~~'~.~ lt5 I"~~~
to r~nev~ t~e ~ease Term wit~~n ten ~ 10} da~s afl~e~ the Tenant's receip~ ~f either
the ~oint determina~ia~ of ~arket R~~e ~r t~e third a~p~~.i~e~'s determinati~n of
M~rket Rate, ~nd th~ Leas~ ~ill t~en expire and ~erminate ~s of the e~.d of ~he
I~11t1~~ T~IY17, 0~' t~l~ ~Ut`r'~~1~ R~I~~VV~.~ T~I'IYl c~S ~.]~ ~~5~ ~1~.~ ~~.
~.~ Ha~ding ~ver, I~e~see sha11 ~~ca~e the Premi~es upor~ ~he exp~r~~ion ar ~arlier
~er~ninat~an af the Le~~~. Lessee ~ha11 reir~~urse ~i~y for and indemn~f~ ~ity
~gai~s~ all damages ~vhi~h ~i~~ inc~r~ ~rom L~~~ee's de1~.y in ~a~cat~ng the
Prem~s~~ ~excludin~ puniti~e andlor c~ns~quen~i~1 dam~.ges but incl~dtng a~~l cos~~
associated v~~th an~ e~i~tia~ pracee~~n~s i~itiate~ b~ ~tty and t~~eth~r ~vith all
r~~so~~~le at~orne~'~ ~ees incu~red b~th ~.t trial an~ u~or~ an~ ~p~~a~}. If L~~~ee
does nat ~~cate the Frerr~ises u~~n ~he exp~r~.~ion or earlier t~rmin~~ion of t~e
~e~s~ and rem~~n~ i~ ~~~~ess~on thereof, ei~her i~self or thra~g~ a~ubten~t, ~i~
the v~ritte~ cons~nt af ~~ty, Le~s~e's o~cupa~~y of the Fr~rr~ises shal~ be ~`~mant~-
ta-m~nth" tenaxz~~. ~
~,4 ~xpzr~tion of T~rm. Upo~ ~he Ex~irat~~n D~te: ~a} al~ im~ro~er~ent~
COIlS~ltl,ltli~~ ~~ 0~ t~1~ F~~171~~5 ~1~.~~~~ill~ ~I'l~ ~U1~~1~1~5~ ~~1~~ ~~CD~I~ CIt~' ~
prop~rt~ an~ shall be vaca~ted in ~raom-clean cor~~ition; ~b} I~essee shall ~e~~~er to
~~t~ p~ss~~si~n of th~ Prem~~es; ~c} L~~~~e ~hall ~urrend~r an~ rig~~, ~i~~e, ~r
in~er~st in and to the Pr~mis~~; ~d} Les~ee ~h~11 del~ver ~he Fre~i~e~ free an~ ~lear
of al~: ~i~ subl~ase~, at~~ {ii} lien~ except ~ie~~ ~~eate~ ~s ~ result ~f ~ixy's or ~y
af ~t~ a~gents' a~t~ o~ on~i~si~n~; ~e} Le~see shall assig~ to ~~t~, v~~~hou~ r~c~urse,
an~ g~~e ~it~ copies ar or~g~nals ~f, an~ t~en ~urrent subleases th~t ~ity has
S
, ~
~ ~
electe~ ~o a~sume ~ro~n Les~ee, and aI~ assigr~.able ~~cen~se~, permit~, ~or~~ra~t~,
~~antie~, a~~ ~uarantees t~en in effe~t fo~ the P~~ise~, if an~, ~~} the par~ie~
~~a~~ ~~o~erate to a~chie~e a~ o~~erly tra~sit~~r~ ~f ape~ations from Le~~ee to ~it~
~1~OUt 1I~t~~'I'11~~1~I1, in~~udir~~ ~e~i~~ry of su~h ~ooks and ~ecord~ ~~r ~op~es
there~#} as ~it~ shall re~sona~l~ requ~re~ No~i~h~tandin~ a.n~thing to the
c~ntrary ~e~ for h~re~n, Les~ee r~a~~ remo~e f~o~n the Pre~mises an~ ~~~E ~a~
d~~ined ~e~ein} that I~~~ee or ~~ ~uble~s~e ~~quir~d or util~zed ~n ~~r~ecti~n
~Vl~~ ~~1~ U~~ ~l{~ ~~~'~t10I~ ~~ ~1~ P~'~11'~1S~S, ~ut Lessee or i~~ ~ubles~ee ~nust do so,
if at ~.11, before o~ ~ithin thi~t~ ~3~} days ~fter the E~~iratio~ Da~t~, ~uring such
3~-da~ p~~~d: ~a} L~~~ee ma~ ~nter ~~e Premx~~~ for s~~h p~aose~, v~ithout
bein~ ~ee~ed a holdo~er; ~~ ~1t~ ~~~~~ ~1~~~ I~0 ~~~1~~~10I1 ~0 ~~~S~I'~~ 0~` ~~`~t~Ct
~u~h ~'~~~; and ~c} in ente~~g ~he Premi~e~, L~~s~e ~hall compl~ ~ith ~ity'~
re~sonable ins~ru~t~on~. Dll~1~l~ S~1(~ ~~11~~ ~~~~ (~~~ ~}~~1D~ L~S~~~ 5~1~1~ ~~~ ~I]
~~rce all in~urance c~ver~ges as requ~red under ~h~ ~erms of t~~i~ Leas~, ~v~th ~ity
~~1I7~ I1~~ ~S ~Il ~~C~1~1~~1~~ 1~~1~~`~~. Les~e~ ~h~ll al~a uldemnify, hold and
~ave harmle~~ ~ity ~ram any ~nd all c~~im~, la~~es ~~d ~a~~g~~ of
wha~saev~r ~a~ure ~~at mi~ht oc~ur or be cla~ed as a resu~t ~f ~essee'~
ac~i~ns ~uri~g s~~d t~irty ~30~ ~a~ per~ad. Le~see' ~ F~~iE n~~ remo~red frar~
t~e Pre~n~ses v~ith~n thirty ~3 ~} da~s af~e~ the Exp~~ra~ti~n I~ate ~h~ll ~~ deemed
abat~doned. F0~' ~1,lI~D$~~ D~ ~~11~ ~~i~S~i "F~`~~" mean~ a~ll mo~ab~~ f~arrliture,
~ixt~re~, equipn~er~t, and p~rsan~ proper~~ of Le~~~e t~a.~ ma~ ~~ remo~e~ fro~n
the Prem~ses ~ithout material dama~e ~h~r~~~ a~d v~~thQUt ad~ersel~ affecting:
~a.} the stru~tur~~ inte~ty of the ~remises; ~b} an~ electr~cal, ~lum~in~,
n~e~h.~nic~l, ar o~he~ ~~stem of ~he Pr~mi~e~; {c~ the ~~e~en~ or future o~eratio~ af
ar~~ s~ch s~~~em; o~ ~d} the present ar futu~~ pro~i~xo~ of ar~y ut~lit~ ~er~ice to the
Premises. FF&E in~lude~, but is not lin~i~e~ ~o, ~uch ~~em~ su~~ as factar~
e ui ~ae~t furniture, ~x~ur~s ~.nd equip~ient, te~ephon~, ~elecommur~icati~n~ and
q ~ ~
fa~~i~r~le tr~n~~is~i~n equip~nent, po~~t of sa1~ equi~ment, tele~is~on~, r~dtos,
and c~r~put~~ ~ystems.
~.~ ~ede~i~ery of ~~e~ni~es. U~on expir~t~on nr term~r~~tian af t~~i~ Leas~, Le~~e~
mus~ de~~~er the Pre~~~e~ ta the Cit~ peace~~~~, qu~etl~, and in a~ ~ood candit~or~
a~ the same no~v ~re or ~n~~ be h~re~~ter i~nproved ~~ Les~ee or t~e Cx~y, n~rmal
~
u~e and ~rear th~reaf ~nd damage b~ ~as~alty, ~hich dama~e ~essee i~ not
re~~ired ~o repai~ ar re~tare-sub~e~t tv ~he pra~isions af Se~t~o~ 11.5 e~cep~~d. In
addition to landlard~~ lien p~o~ided b~ th~ ~~~v of the ~~~te ~f T`e~a~, the ~it~ has ~
co~tra~~ua~ Ii~n o~. a~l propert~ af ~essee on ~he Pren~~s~~ as ~ecurit~ fo~ r~on-
payment ofa~ent~
3, l~N~' .Al~~ ~T~ER ~~t~~~ PAYABLE BY LESS~~
~,l Annual Base ~e~~. The a~u~u~l ~ase rent ~th~ "Base ~.en~"} as out~~ned be~o~
~hal1 be paid b~ t~e ~e~~ee t~ ~i~~ in equal ~no~th~~ a~ounts frar~ the
~ommencem~nt Da~e, as d~fined be~~v~, throug~ ~he end ~~ ~e L~ase ~'erm as ~et
for~h i~ Section ~.2:
Square ft of F~er~ise~ as set fort~i in Se~tion
1.1
~n~ultiplied by ~~.~~ Ra~te p~r square fo~t
_ $ Ann~al B ase Rent
3.~. Re~t Ad~u~t~ment, E~er~ ~i~e ~~~ ~r~ars fror~ the ~omrr~er~~emen~ ~ate, th~ Base
Rera~ ~hall incr~a~e 7.5°I~ from the previvus Ba~e ~ent amount.
~.~ '~~m~ a~nd Mann~~r af ~ayment. ~U~~~C~ ~Q ~~.~ ~~OV1SI~I~S ~~ ~~115 I,~~S~, Le~~e~
shal~ pay ~ity the Bas~ ~e~t, in ad~ance, ~ithout o~`~e~, deductian ~r prior
demand on t~~ ~ir~~ da~ of e~~h ~nan~h ~urin~ ~he ~ease Te~~ If the
~om~.encement Date ~alls on other tha~ ~h~ fir~t d~.~ vf a m~nt~, an~l~r if the last
~a~ of the L,ea~se Terrn fa~~l~ v~ o~her tha~ the last day of ~. mon~h, then Rent fo~r
the ~rs~ m~nth andlor ~he ~ast rrianth of the ~e~se Term sh~.ll be ~rora~ed based
up~n the nu~tn~er of day~ of' the re~pecti~e month~ t~e Lessee a~t~~~l~ h~~
po~s~s~~on af tl~.e Premi~e~. Th~ ~ase R~nt ~hall ~e pa~able a~~ ~ity's a~t~rre~s or at
such othe~ p~ace as ~it~ ~a~ ~esigma~e ir~ v~rit~ng.
3.4 ~on~tru~tion RenE, Le~~ee n~ay ~ccupy ~e Prem~~~es sha~vn o~ Exhibit "B" to
~ ~o~struct in~~rav~n~ents as app~oved ~~ #~e A~iation ~~~ec~ar ~see ~ection ~.4~
~r~rri t~ae da~e the ~e~~e term begin~ ~hrough ~~ mont~~ or un~il the date
L~s~ee's sub~e~see occupies the Premis~s, ~vhiche~e~ i~ ~~~s, upot~ pa.~ment af
grou~.d rent on the P~er~i~e~ a~t fifl~~ p~rcent {~0°/a} ~f the ~ase Rent rate se~ for~h
in ~ection ~.1, prorate~ ac~or~in~l~.
~.~ A~ent. 'I~e ~it~ Mana~e~, or design~~, {"~it~ Manager"} appoints the Aviatian
D~re~tor, ~r ~e~~gn~e, ~"~~ia~~on l~ir~ctor"} as agent to r~cei~e a11 ~en~a~~ and
report~ ua~der th~s Lease.
~D
~.~ L~te ~ayme~t~ Any rer~~a1 p~ymen~ a~ o~her ~~~n ~u~ under #he Leas~, ~~~ of
~vh~ch s~ia11 be ~e~ed "~ent" ~~ t~e p~xtie~, r~ot rec~~ved ~vi~hir~ fi~~ ~~~ d~~~ of
the du~ ~~~~ ~~~11 bear in~e~~~t ~r~t~l co~lected, a~ ~ r~te equi~a~e~.~ to ~he lesser of
~i} th~ h~ghest rate ~f xnter~st allQ~ved by ~av~; ~]~ ~11~ ~V~~~~ ~l~'C~~lt ~~ ~~Io} per
anr~um.
3,7 ~ecurit~ Bad~~s. ~ach af Le~~e~'s emplo~ee~ n~ed~ng acce~~ ~a a~ res~ricted
~~r~~ ~i~~lu~i~~ the A~A, see ~ect~nn 9~ m~~~ be requi~~~ ~o ~ear a~~curi~~
iden~i~ication b~d~e. L~ssee v~i11 pa~ a~ f~e for each ~adge and a rep~a~ern~n~ fe~
far ~~cl~ ~o~t badge. Lesse~ m~ust na~if~ the A~~~t~o~ ~irector zmme~iately ~~e~
an em~la~e~ i~ term~n~ted ar ~o~e~ a bad~~~
4. USE ~~' P~~~~ES
~.~ Le~see r~ust u~e t~e Pren~i~e~ for
The fal~o~i~~ ~~t~~r~ties and u~e~ are e~pressly excl~~ed fro~n this Lea~e and
Le~see i~ ~r~h~l~it~d frar~ an~ ~u~h ~se ~r a~t~vity~
1, ~r~und Transpor~ation for hire. ~e~see ~n~y pro~id~ grou~ad
tran~po~~~ion f~r its e~n~~Io~~e~ a~ a ser~i~~; hov~e~er, said ~ervice ma~
no~ be offered t~ the gen~ral public on a commercial basis.
~. A.utomo~~le Rental ~ervi~e.
3 ~ Ne~v~ an~ ~undr~r sale~.
4. Adverti~ing canc~~~io~~ except for t~o~e ~i~t m~y be ~onducted v~ithir~
building~ lo~ated on Le~see' ~ Premi~es.
5 ~'he ~ale of faod ar drink, ~xcept f~o~n ~i~pen~~ng r~~~~ir~e~ located ~i~in
~]~111C~~~1~~ ~~~~tEC~ OI~ If~~~~~' ~ P~~II~1S~5.
~. ~omrnercia~ly en~aging in the ~usiness ~f rr~akt~~ re~er~ations fo~ hotels,
n~otel~ and ~th~r ~odg~ng.
7. ~ale ar trar~~~er of fuel,
8, Aircra~ or a~ri~r~~s ~a~es, in~tat~~tia~, or repair, except an Lessee's o~ned
ar lease~ aircra~ is a~lov~e~.
9. ~'or pra~it ch~rte~ fl~ghts.
14. Fil~~ ~~ ~'OU~I~ 11~S~CLiG~~4I1, except far Le~s~e' ~ e~npl~yees o~ a~ent~ ~s
allav~ed.
4.~ H~~~rdous ~ub~~anc~~. Le~~ee ~o~en~n~~ to con~piy ~ith all enviranmental
la~v~, rule~, re~u~a~~ons, ~~rder~, ~I]€~ ~~I711~5 ~~~~1C~~~~ ~~ L~S~~~~~ ~~~~`~~10I1~ ~I~
0~' 1I] t~l~ ~1G1111~~ 0~ ~~1~ A~I'~~1'~~. ~nc~u~in~ ~ut n~t Iimrited ~~ ~eq~ired N~tiana~l
Pa~~ut~nt 1~i~cha~ge E~ir~ination ~~s~em Ferxnit~ and al~ appl~c~ble 1~~~ r~~~ti~~
to the use, sto~~.~e, ~eneration, t~eatment, transpar~a~i~r~, or ~isp~~al af ~~zardous
oz ~egula~ed substarice~, Exc~pt far th~ ~a~ardau~ ~ubst~n~es governed by
and trar~sported ir~ fu11 com~~x~ce ~vith th~ tran~por~a~i~r~ la~s af t~e ~ta~te or
fede~al government, Le~~ee must not ~o~vingl~ u~e, store, generat~, tre~t,
11
~ran~port, o~ d~spo~e ~f an~ ha~~rdous ar r~gulat~~ ~su~~~anc~~ or ~as~e on or ne~r
~l~ ~lI`~~I't ~Vi~~1Qll~ ~~1~ A~1~~OI7 D1~~Ct~~`' ~ prior v~r~tten appro~~~ a~~ v~ith~ut
~ir~t nbtaini~~ a~l re~uired pe~it~ and a~p~rov~1~ firar~ all a~uthorities havi~g
~~11'~~~1~t1~I] OV~~' L~S~~~~~ ~~~'~~1D~lS ~~ OF I~~~~` ~.]~ ~II~~~~
~f Le~~~e detiermine~ ~th~t a~ thr~~t t~ the en~~~rar~ment, in~ludin~ bu~ nat I~r~ite~ ~a
a release, di~ch~~e, ~pi~l, o~ depo~~t af a ha~ardou~ or regula~e~ su~~tance, ha.s
~ccurred or i~ occurri~~ v~h~ch affect~ or thx~a.~~n~ t~ af~e~t th~ Airport, or ~ie
pe~~ons, struc~ure~, equipment, o~r o~ier prop~~~ ther~n, ~es~~~ must
immediat~~~ ~~rba1~~ not~f~, ~1} the Airpor~'s ~ublic ~afet~ ~ffice at ~3G1} ~89-
~171 ~~~. ~ an~ ~~} ~l~ emergency re~ponse ~ent~r~ and ~n~ir~~men~al or
re~uulator~ ~~~~~ie~, as requi~red b~ lav~ or r~~ulation. Le~see rriust pr~~.~e
A~1~t~Dt1 Di~'~~t~T ~Vl~ ~`1~~I] ~QI1~1I'I7I~~10~1 ~~ ~~1~ V~~'~~~ ~'~D~ ~~t~11~ ~~ ~10U~'~.
~,essee agre~~ to ~oapera~e fu~~~ ~r~th the Airpor~ ~n pror~ptl~ responding ~o,
reporting, and remedyin~ a. threat ta ~he envtr~nment, II~C~IIC~II~~ 1~1t~70U~ ~1~I11t~$1D~7
a release or thre~t uf relea~e of ~a~ard~u~ ~r regulated ~ubst~n~e into ~he d~ain~ge
sy~t~m~, s~il~, ~rrou~d v~ater, ~ater~, or atmasp~.ere, in a~co~r~~ce ~vit~
applicable 1~~ or as au~hQr~~ed or ~ppro~~d by ~~ fe~eral, ~ta~te, ~r loc~l ~ge~a~~
h~~i~g a.ut~orit~ ove~r en~~ronmental m~t~er~.
Le~see r~us~ k~ep ~ rea~dil~ a~c~s~i~le file ~f Mat~ria~~ ~af~t~ D~ta. ~heets
~~rI~I~~} far ea~h ~Iazardau~ ~ubs~ance tran~~or~ed, ~n ac~ord~n~e w~th federal
~~ ~tate tran~port~ti~n Ia~vs, ~hich ~i~~ rrlust be p~~te~ ~.n~ immediat~~~ available
ta an~ ,Airpo~ or ~ity er~plo~ee ~vh~ re~~onds to the scene ~~re~nises~ ~n ~he
event of an acc~dental ~ischar~e of ~~azardou~ ~u~s~ance. Lessee' ~ emplo~ees
rnus~ ~ to de~ermin~ ~hi~~ Hazardo~s ~ubstanc~ wa.s a~c~identl~ dis~~a~x~e~ a~d
ha~e tha~ 11~~D~ ~heet a~railabl~ for the ~rst re~~onders ta the ~cer~e~
Lessee r~ust ~dertake all require~ reme~x~~ior~ and pay al~ co~t~ associat~~ wi~h
Le~~ee's ac~ian or in~ction t~at ~ir~~tl~ or ind~rectly causes ~~e Airport t~ fail t~
mate~iall~r c~nform to a~l t~en ap~lica~~e env~ronmenta~ ~a~~, rul~s, regu~a~tion~,
orders, ar pe~mit~. T~1~ ~'1~t5 ~.i]C~ ~~I1~~t1~I~S ~~~ ~~I'~11~] t~115 ~~C~I~II ~.~ survive
~~~1~1~~1~~! Of ~~115 ~~~~~.
4.~ Ex~lu~~~ve ~antral. ~essee ~hal~ ha~~ ~x~lusive ~ontr~~, p~~se~~~~n, o~~~panc~,
u~e, and r~~na~gement of ~he ~~emi~es. Le~see ~h~1~ ha~e the exc~ust~e righ~ to
~r~~tall ~ignage an o~ ~~ the Prer~i~es, o~r to ~ransf~r th~ ~~.i~ t~ ~nstall ~u~h ~igna~e
durin~ the Leas~ Term t~ a~ne or m~r~ third partie~, ~V~llC~1 1~ 1~] C~t17~]~1~I1C~ ~t~]
all Ia~vs a~nd or~~n~nces and meet th~ ~~andards for ~ignage ~s~ab~ished by the
A~iatian ~ir~ctor. Les~ee m~.~ enter tnto, ~e~minate, n~odif~, a~end, ar ~vai~e an~
exis~in~ o~ future contracts relatxn~ ~o managerner~# or operatian of the Pr~~i~es
and ~ro~i~ion of ser~~~e~ to t~~ Premise~. An~ ~u~h c~ntra~t~ sha~l autor~atical~~
expire an ~~~ ~~pira~ion Date of thi~ Lea~e.
4.4 No~-ea~~~u~ive rY~h~ ta use ~-~~ fie~~. Lesse~ h~~ a~ na~-e~clusi~e right t~ use th~
~U~~1C ~'~~S ~I1C~ ~U~~~C ~1~OI'~ ~~C1Ix~1~~ 1~l~~UC~1I7~ t~l~ ~'L~.1V4~~.~~, taxiv~a~~, aprons,
1~
ramps an~ ~avigational ~ids, ~Il(~ ~~C1~1~1~5, in acc~rd~ce with th~ appli~ab~~
federa~, ~~ate, ~.nd ~oca~ law~, ~ule~, and regu~a.tians~
5. C~N~D~TI~N ~~ ~ROPERTY; MAI~IT~N~A~CE, ~PAIRS AI~D
YIVI~R~~N~~NTS
~.1 E~st~~ ~ond~t~o~n~. Les~ee a~c~pts ~ie Pr~r~i~es in i~~ conditior~ as af the
execu~ior~ o~' ~he I~e~se, su~jec~ ~o a11 r~ca~~ed n~atte~s, ~a~s, ordinance~, an~
go~errimental re~ul~tions ~d orders. ~xcept a~ pro~ided in ~he Lea~e, I~e~~e~
~ckna~led~e~ ~ha~ neit~er ~it~ no~r ~~ agent ~~ ~~t~ h~~ made an~ ~epresent~t~on
a~ to #~e canditio~ o~ the F~re~m~~es ar #~e ~~~ta~ili~y of the FrerrYi~e~ fax ~e~see's
~ntended use,
5.~ ~xemptio~ of ~ity from Liabi~.ty. Ci~~ shall not be lia~ble far an~ darriage or
in~u~ ~~ the per~o~, ~u~iness ~or an~ ~os~ of incom~ there£rom}, gao~~, ~ares,
merchandis~ or ~th~r p~opert~ of Le~~ee, Le~see's emplo~ee~, in~i~ee~, cus~or~ers
a~ ~y other per~on ~n o~ ~~~ut the Fre~ntse~, v~hether such da~nage ~r injur~ is
c~~se~ b~ or results from: {a} ~.~e, ~~ea~n, ~~e~~city, ~~ter, ~a~ or ra~n; ~b} ~he
brea~~.ge, leaka~~, ob~truct~o~ ~r ot~er defe~t~ 0~ ~1~~"~~ ~prinkle~~, ~~res,
appl~~~ce~, Impr~~eme~~~ or any o~her ~aus~; or ~c} ~o~~iti~n~ ar~.sjng in or about
~~e ~zemi~es, ~r ~ror~ othez ~ources ~r ~l~.ces. ~x~y ~ha~~ n~t be liable ~or a~~ su~h
~arria~~ o~ injr~r~ ~ven t~ough the cau~e af or the mea~~ of repaxrin~ such ~ar~a~ge
ar inj~ are ~.o~ acces~ib~e ta Les~ee. ~ie pz~vi~ions a~ ~his S~ct~on ~hal~ nat,
ho~e~e~, ~xempt ~ity a~dlor ~it~'s a~ent~ or empXo~ees fran~ lia~ili~~ ~o~ ~i~~' ~
.
~egligence o~r miscan u~t~
~.~ ~e~~ee's ~bligati~ns.
5.~.1 ~VI~Yntenanc~. Except ~s pro~ide~ in ~ection 11.~, L~s~ee sha11 k~e~a all
port~oan~ ~f ~he Prem~ses ~includin~ ~~ruc~ur~.~, r~o~~~ru~tura~, in~er~or,
extieri~r, an~ l~ndsca~ed areas, partion~, ~~~tems a~nd equipment} in good
orde~, ~~~1C~I~1QI~ ~lC~ ~'~~?~1~ ~~I1~~11(~1~~ 1tlt~~'10~" ~~~~lI1~lI1~ ~1C~ ~'~~1I~lS~ll~l~,
~S ~l~~i~~C~~ ~ ~Ul~~ t~ 1tS US~, e~cluding or~inary ~vear, ~eax, ~asualt~r,
~ondemna~ion, ~epreciat~an ~.nd ph~s~~a1, te~hnological an.dlor econa~ic
obsoles~en~e. ~essee}~ ~blig~t~on~ sh~~l extend ~o ~~th struct~ral and
nor~-~trt~ctural i~~n~, an~ to a.~l main~enance, ~epa.ir and rep~~.cerrient v~ork,
inc~u~in~ ~~~ nat lir~~ted ~o unfo~esee~ ~d e~tra~rdi~a~ it~m~ ~~~~~e~t ta
t~~ limitati~ns ~et forth ab~ve}.
~.~.~ ~ompliance with La~w~. Les~ee shall, at it~ o~n co~t and expens~,
p~am~tl~ o~ser~e ~nd kee~ ~11 1~~vs, rules, ~rder~, ordinanc~s ~nd
regulatian~ ~f the ~fed~r~.l, sta~e a~~ city gavernment~ ~d an~ ~~d al~ of
~heir departm~n~~ and bureaus a.nd tho~e of at~y oth~r competent aut~o~it~
a~~plicable t~ ~he Premi~e~, ~t~e "Le al ~e ~iremer~~~"~ ~~et~er ~r n~~
su~h Lega1 Requirerner~#s ~ffe~t the int~or ar e~~erior af the
~~
~~pro~~n~~t~, nece~~itate str~~~ural c~an~e~ or impro~er~e~ts, ~r
inte~rf~ze ~i~h the ~s~ an~ e~j~~tnent of the F~re~n~ses, ~~ v~he~h~~ or no~
co~pliance v~i~h ~he Legal Requirements is requzred b~ reas~n of an~
~vndit~on, ~vent, o~ ~ircum~t~n~e exi~t~ng befar~ or aft~r the Lease Term
cQmr.~ences; ~d sh~1~ prom~tl~ con~pl~ ~ri~h all l~v~~, ru~es, or~er~,
~egulatio~~ ar~d requirement~ of the i~~uer~s} of ~he in~urar~ce pal~c~{ie~}
~an~emp~ated ~~a ~ectian 13, ~Il~ ~11~ 1I5~ ~1D ~~ ~~ P~~II115~~ ~0~' ~l~
unla.~vfu~ purpa~~~. ~f, ho~vever, the L~s~~e in ~oo~ f~.~t~, ~ha~l ~~sire ta
c~nte~t any la~~, rule~, ar~ers, ~rdi~~~e~ or re~latio~~ of the fe~era~,
state, C1t~ ~~' ~~1~' C~~1~?~~~Il~ ~U~IDI'1t~ ~'~L~1T1I1~ ~`~~1~'~, al~eration~ ~r
~hange~ ~n ~he Fre~ni~e~ ar in any buil~in~ at ~.n~ ~~n~~ situate~ thereon,
Les~ee shall ~~t be require~ ~o ~nake such repatr~, ~.l~erat~on~, ~r ~har~g~~
so lang a~ ~es~ee s~a~l~ iI1 ~40C~ ~~1~~1, ~~ ~e~see' ~ o~n e~p~r~se, co~test th~
~~e or the validif~ there~f b~ apprapr~~~e pro~eedin~s, a~d at~y ~uch
delay of ~he Les~ee in con~pl~in~ ~i~h a~ay s~ch la~~, ru1e~~ orders,
ordi~ances ~d r~gu~~ti~~s u~til ~ina1 determin~tion af ~uch di~~ute~
matter ~~a~l n~t be deeme~ ~ defau~~ in the c~n~ition~ of the ~ea~e; ~ity
~v~~l not urYrea~~an~bly v~ithhold, CO~li~1t1D~ D~' (~~~~~ f~~ ~OI~~~~~ t0 ~~~CU~~
~~c~ ir~str~m~nt~, ~nd gi~e Le~s~e ~uch assi~~~nce in co~ne~~ian. ~vith su~~
c~~tes~ as sha~ll be n~~e~~ar~, rea~~onable and praper at na co~t ~r ~xpen~e
to ~it~; ~ow~ver, Lesse~'s time ta ~omp~y hereund~ ~hall ~ot be so
exten~ed ~f ~i~~ sh~~l be thre~t~ned ~vxth ~ine ar impriso~m~nt. I~e~~ee
~b~all ho~d ~it~ ~a~rmYess o~ ~ll costs, expen~es, lia~~li~ies~ ~~~~~~,
damages, fimes, pe~nalt~~s, claim~ ~nd dem~~ds, includin~ ~~~san~bZe
cou~s~l fees, that n~ay ~n ~n~ manner ari~~ out of ur be imposed
bec~u~e ~f tb~e failure of the L~s~ee ta compl~ wrth a~y ~aw, rul~,
order, ~rd~~nce nr ~~gul~bion as aforesaid. ~~thing con~ained ~r~ th~s
~ecfior~ or els~w~ere in t~~ ~ease ~vill be dee~ne~ or cor~~true~ ~~ ~equiri~g
the Le~se~ or an~ ~ub~es~ee, under an~ c~rcur~~tan~e, t~ o~en ~r
~onti~uous~y ope~ate v~i~hin t~e Impra~emen~~ or o~he~i~e ~n th~
Premise~ ~t an~ pa~icular ~~rr~e or d~te ar fo~ ~~ part~~ular per~od durin~
the L~ase Te~m, and to th~ extent that t~e ~mprovement~ a~e no~ a~~~pied
at an~ p~.rticula~ ~~~n~ duri~g ~h~ Le~~e Terr~, ~hen the lega~ requiremer~t~
appX~~able to ~he Impro~ement~ ~vil~ ~e thase l~gal requiremen~s tha~ ~re
applica~~e in ci~rcumstar~~es ~he~e ~uch premise~ ~re not occupie~;
h~~ve~er, but ~p~n ar~y oc~upa~c~r of t~e ~pra~ement~, either ~nitially or
~~er ~~ ~er~od of ~~can~y, t~e legal requir~me~t~ appli~~~le ~o an
~c~~p~ed fa~ilit~ ~ill be applic~.ble to ~Y~e Le~se~'~ ob~i~a~~on~ hereur~der.
~.~,~ iJti~ities a~d Trasb~ ~ispns~l, ~e~see ~h~ll pa~ ~rhen ~~e and
pa~able, dire~t~~ t~ the ~pprop~iate s~ppli~r, the cv~t of all r~atural gas,
~eat, light, pv~er, s~v~er se~vice, t~~e~hone, ~~.ter, tra~h dispo~a~ and o~he~
u~ilities and ~er~ic~s supp~~ed ~~ th~ Pre~ni~es. ~e~~ee mu~t arrange for the
~o~le~~io~ and la~v~ul d~spo~~l af a~~l ~r~~h ar~d ather ~re~use re~u~ting from
i~s operation of the Prerr~ises. Les~ee n~u~t pro~i~e and u~e ~uitabl~ ~eal~d
~irepraof re~epta~~~e~ app~~~red b~ the A~iation Di~~ct~r fo~ a~ll ~r~sh ~nd
1~
other refu~e generated by Le~see~s use of ~ie Premi~e~. ~ilin~ af b~xe~,
~a~ton~, barre~s or other sirriilar iterr~~ ~n, or ~vit~~in ~i~~ fron~, a pu~li~
~~~ 1S I~~t ~~~`il~l~~[~. Lessee rnu~t c~mp~~ ~v~th all ~p~~ic~ble ~a~v~ and
regula~tians re~ati~e ta tr~~h dispasa~.
~,~.4 ~omnr~unrc~t~on~ Equ~~ment. ~ubj ec~ ta ~he A~v~ati~n Diz~~tor' ~
~~ior v~r~tten appro~al as t~ height and ~a~~.tion, ~hich v~ill not be
unrea~o~a~bl~ v~ithheld, ~e~see n~a~ f~rn~~h and insta~l~ ~t it~ o~n exp~nse,
a. r~~io ant~nn~ ~r~ the roaf of t~e build~ng an the Premises, ~ubje~t to ~~}
an~ an~ ~1~ zor~ing and ot~er regulat~r~ la~vs, ordinan~e~, ~tatutes, ru~e~,
re~iations and or~e~s ap~Iic~b~e ~h~~reto, ~b} Le~~e~ obtainin~ a~~ and a11
build~ng ar~d other p~rmits, li~enses and o~her apprav~l~ ~r~t~ respe~t
the~eto, {c} the antenn~. and bui~d~n~ bo~h r~ust b~ ~t~c~ral~y ~our~~ and
not a~ver~e~~ effe~t the ~~undness ~f an~lor the e~andit~or~ of ~he roof
~C~I~~' D~~~ ~~I"~S 0~ ~~1~ ~Ul~(~1~1~; an~ ~~} an~ ar~d ~11 ~~~ts of m.a~r~taini~~
an~ ~perat~~g t~e same ~ust ~e paid entire~~ 1~~ L~~~e~. Upon t~e
ex~~r~tio~ or terr~ir~~~ian ~f th~~ Lease, Le~~ee sha11 ren~o~~ said
antenna~~} ~nd restore ~n~ da~na~~ ta the roof a~adlor buildin~ ~.d
F~e~ni~e~ cau~ed b~ the i~stalla~~on ~.n~lor remo~a~l thereof. Le~~ee must
pa~ far a11 cos~~ for th~ rep~.tr and rnatnte~~.nce Qf ~aid xn~t~llation of the
antenna~
Lessee a~ree~ ~o ha~e in~t~lled radia equ~pn~ent of the t~pe and fireque~~y
~vhich v~~~l no~ c~use ~neasurable in~erference ~o ~ie e~uipmen~ af ~i~y ar
ather le~~ee~ of the Ai~rpor~ exis~ing as af the da~e th~~ Lease is e~ecute~
~~r the Park~es, In the e~ent ~e~~ee's equipr~ent cau~es suck~ i~terference,
ar~d ~.~er ~ity has n~tified Les~ee of ~uch interf~re~~e, ~es~~e ~vi~~ tal~e ~11
steps nece~~~r~r ta ~orre~t a~d elimina~e ~~e interference wi~hin far~~-ei~hht
~4S} hour~; provided, ho~ever, ~e~see agre~s to ~egin ~o t~~ action
~~hether plar~ni~~, ad~n~ni~t~ati~e, p~y~tcal or nther action} ~o carr~ct ~nd
elimina~e suc~ in~erference ~ith~n tv~ent~-four ~~4} hour~ of ~uch notice
fron~ ~it~r. T`~ the extent Les~~e ~~ un~b~e to cure the i~terferen~e ~vithin
this tin~~f~ame, Le~see ~~iall volu~t~rily powe~ daw~ the e~uip~nent
c~u~ing ~he interferer~~e except f~r in~~rmitten~ t~~~in~ until ~u~la time a~
~he tnt~rfere~ce i~ remed~~d~ ~f a#~~r th.irt~ ~30~ da~s Le~~ee i~ una~le to
cu~e the interf~re~ce despi~e its good faith ~f~or~~, it ~i11 rexr~ave th~
equipme~t ~vhich ~au~e~ ~he ~nterf~re~.ce, or at its ~ption, ~erminate t~~~
Leas~. Clt~ ~~~~~ ~1~~ ~1~~ ~C~ ~l~ ~t~l~~' ~~~~Il~. ~~ ~l~ FI"4~]~~~ V~~10 1~1
~h~ fu~~ ~~e~ posse~~~on ~f ~he Froper~~, or v~ho dae~ not currentl~ h~ve
the r~ght to i~~t~.l~ radia e~uip~en~ under it~ res~e~ti~e ~eas~, ~vil~ be
perm~tted to instal~ onl~ su~h rad~o equipm~nt ~~aa.t i~ af the t~pe and
~re~uenc~ ~hich ~vil~ not c~~~e rneasu~~~le ir~~erference to ~ie e~~stin~
equipment of I~e~see. The Par~ies acl~n~~vledge t~~t t~ere v~ill not be ar~y
adequate ~emed~r at 1~w f~r ~oncan~p~iar~~e ~i~h the p~o~i~ions of thi~
pa~~.graph and ~~eref ore eithe~ ~~~ shall h~~r~ the right to ~pe~ifi~ally
enfarce the ~1~~~1Sl~~l~ of this pa~~graph in a court ~f con~pete~t
~uri~diction.
15
~.3.5 Lessee'~ ~ole ~x~ense. ~es~ee shall ~fill all of Lessee's
ob~i~a.~ions ~nde~ t~is ~e~ti~n ~ a~ Le~s~e'~ sole expen~e. If Les~ee fail~
to ma~int~in, repa~r or replace any elernent af the F~remise~ to the cond~tion
requi~ed her~un~er ~vithin si~t~ ~~a} day~ of ~vritten n~t~~~ fror~ Cit~,
Le~~ee ~hal~ ~e deemed to be ~n. Defau~t of i~s ~bl~ga~tion~ unde~ this
~ectio~ ~.3.
~.~.G I~de~ni~. E~~ept ~o~ ~h~ negligen~e or ~villful m~~~o~duct of ~ity,
Le~see ~h~~l indemnify, defen~ ~nd hald ~~ty ~a~rmle~~ fron~. ~nd
~~~u~st an~ and al~ li~bi~ity, claim, los~, ~ast, exp~~se, damage
~imcluding re~sonable at~orneys' fees and ~o~suXt~~n~s fees}, ~en,
~ud~me~~ ar penalt~ ~ris~n~ in any m~n~e~r whaf~oever or~t of,
~volving, a~ i.~ ca~nec~i~n w~t~., the use andJor oc~~upancy a~ the
~xem~~e~ b~ Les~ee a~~lar Y~s su~tenan~ts or an~ one e~~e ~~~im~.~~ b~
or #hroug~ Les~ee.
~.4 Imp~rovemen~~.
All plans and sp~~~~i~a~tions far Less~e' ~ Impro~~ments, includtng al1
renavat~o~s, rem~~el~n~, refuxbishing, ~igna~e, a~d cons~ructiar~ ~pon ~ie
Premi~es, ~ust r~e~t ~.~1 ~~t~ ~'ire, bu~~ding and o~h~r ~p~~ica~ble cit~, ~ta~e
an~ ~eder~l reg~~ations ar~d cnde re~uir~~men~s, including obt~ini~~
~e~u~red bui~d~ng permit~ a~d FA.~ ~er~nau~i~a~ Stud~ in a~cordance ~i~
federal regulat~ons if ap~li~~ble. Les~ee, ~t its expense, ~hal~ ob~ain al~
licen~e~ ~d permi~s r~quired prior ~o a11 re~o~~tians, remo~e~~~g,
~`~~UY'~1S~11I1~, ~r ca~~truct~on on the P~e~n~i~e~. ~`he c~s~~ o~ de~e~oping a~~
p~an~ ~d ~pe~i~icafions as pro~ided he~ein and ~he canstru~tior~ ~f
impro~~ments and f~~ilitie~ ~po~ t~e Pren~i~es n~ust be paid so~~~~ b~
~,e~~ee, v~it~out an~ cost o~ e~~ense ~o ~~t~ ~hats~e~er. The pl~n~ an~
s~eci~ic~t~or~s, inc~udin~ th~ a~rc~itectural d~~~gn, co~ar, butlding n~ate~~l,
~ign~ge, and ~and~~a~~ng of Lessee' ~ ir~pro~ernents n~ust b~ ~ppro~ed ~y
the Av~~tion ~ir~ctor, which a~pra~al ~vill not b~ ur~reaso~ably v~it~~1d.
~o ~ubsta~~ral cha~~e~ or altera~ians r~u~t be made ~o s~i~ plans ~r
speci~~a~tion~ a~er in~tial app~ova~ ~~ A~~ati~n I]trec~or v~ith~u~ fu~ther
v~rit~en approva~ by Avia~~n Dir~~to~, v~hic~ appr~v~~ will nQt be
unr~~sonably withheld. L~s~~e cv~enants that ~~~ c~nstruc~ian, inc~ud~ng
alI ~vorkman~hi~ ~d materials, ~vil~ be of fir~t-clas~ ~ua1~t~ and ~r~~l be in
~ccard~nce with the p~a~~ and speci~icati~n~ to be at~ached here~o a~
Exhi~it "~" "Plan~ and ~pe~~~c~tion~" as a~p~ro~ed b~ the A~iati~~
Direc~or. As use~ herein, L~~ i.~~ 44~ir~t-~~~~~ q~ality" means of t~e ~ame
qua~it~ as b~ui~dings used o~ to ~e ~sed for th~ ~a~e or ~imilar purpo~e~
already constru~~ed or~ t~e Airp~r~.
Upo~ final ~o~pl~tio~ and ac~epta~a~e of ~he I~np~a~ern~~.t~ b~ Les~e~,
~e~~ee must pra~id~ tv~o sets of ~Vl~lar "as-~u~~~" p~an~ and one e~ect~o~ic
1~
~op~ af ~~~ ~ecor~ docume~~~ to A~iat~on ]~irectar, ~vho ~vil~ keep ~n~ ~e~
of p~an~ on fi~e at the Airport and pro~id~ t~e other set to t~~ ~it~
~~G~~~~~ ~4F 1~C~I'~~~~~10I1 lllt~ ~~ ~~5~ ~~ ~~ll~lt ~~~". E~.hib~t "~"
b~~ame~ e~`ec~i~re upo~ f~ling v~ith the ~i~y ~ecret~r a~d subsequen~
at~achment ta #he L~a.se. Lessee r~us~ l~eep ~~d dacurrrents ~~rren~, ~~
pro~idin~ t~o ~e~~ af M~~a~ "as~built" plans and one ele~~ronic copy of ~1~
r~cor~ do~u~nent~ sho~ing an~ a~t~ra.tion in ex~e~~ of $25,~~0 ~o the
Pren~ises du~ring the ~~r~m of the Lease t~ A~i~t~~n Dir~~tor, ~o be atta~~ed ~
~a the ~ease in the same rnanner a~ pro~i~e~ for ~ie ~riginal p~ans and
speci~icatians.
Durin~ the c~~~tr~cti~n of Imp~ovements, ~.~iatian ~irector ma~, a~e~
pr~vidi~g re~s~nable nat~c~ ~o Lesse~, enter up~n the Premi~es ~uring
Ci~~'s normal b~siness h~urs a~d rnak~ inspection~ as n~a~ be necessar~ to
ensure that the const~~tio~ af Improvemen~~ ~~ performed in accordan~e
~v~~h t~e re~ui~re~nen~s of the Le~se.
rnitial Irn~ravements for con~tru~ti~n must ~e~in ~vi~hin one ~ 1}~ear o~
the ~x~~~tion of the ~e~~e and be car~p~~t~d ~ithin tv~o ~2} ~ears f~o~ ~he
exe~ution of tt~e ~~as~.
~t~rin~ ~he L~~~e, Le~see sh~~l ~~ub~ ect to t~e o~her ~erms ~~ c~ndition~
of t~e Lease~ ha~e th~ continuin~ r~ght t~ ~emodel, xena~ate and ~ef~rbi~h
the Pr~mi~e~, or an~ ~art the~e~f7 ar~d to b~i~d and co~~truc~ r~~v~ ~ddi~~a~~
a~d impro~errients there~n a~nd the~eto, pro~ided; ho~ve~~r, that L~~~~e has
abtained t~e ~r~ar canse~at ~f the Fedez~l Aviati~n Adn~~nis~ration ~F.AA}
and the ~r~t~e~ c~n~en~ af ~vi~~ion Directar, ~vhose c~r~sen~ ~~ the
~nadif~c~.tions ~vil~ ~o~ be unrea~~~~bl~ ~i~hhe~d~ All a~tera.tion~,
add~tion~, and Impr~vement~ to the Pr~mi~e~ shall be d~~e in a good and
~o~rkm~nl~l~e n~an~er, in ~onf~~rmit~ with a~~ ~pplicable ~~~v~ an~
reg~latio~~.
Les~ee ~nd as~ign~ees ~~d su~le~~ee~, must i~c~ude ~i.~ all ca~s~ruc~ion
contract~ c~ter~d ~nto, a p~ovi~ion ~~qui~ing t~e ~ontr~c~or, ~r, in ~e
~ltern~t~~ve, Lesse~, ~o ~ndemnify, ~old harn~~s~, defend a~d insur~
the ~it~, i~clut~g i~~ af~cer~, agent~, ~~d emp~~~ees, ~g~i.nst the risk
~~ legal liabili~y ~or death, inju~ or damage to p~rs~ns or property,
~irect o~ co~se~uential, ~ri~ing or alle~~d ta ar~se ~ut of, ar in
co~nection wit~, the per~orm~~ce of any ox ~ll a~ such ~on~~ruction
w~r~, w~eti~er the c~~~ms and de~~nd~ mad~ are just or unjus~,
~rn~ess sam~ ~r~ cau~ed by the ~ross n~~~ge~c~ or w~ful ac~ of the
~it~, ~t~ officers, a~ents, or e~nploye~s. ~e~~ee must furni~h, ~r re~u~~e
~~e c~n~ractQr ta ~urnish, insuranc~, as required i~a Secti~n 13 her~in.
~,e~~ee mu~t i~a~~~~e i~ a11 con~tr~~ti~n contr~~t~, ar ~ubc~ntracts, a11
pro~~sior~~ re~u~red b~ ~he Dir~~tar ~el~ti~g to t~e o~erations of ~he
1~
c~ntractor o~ the Airpor~, ~or an~r ~ark in exce~s of $~~,~0~ to ~~
perfo~e~ b~ Les~ee or ~he contract~r, ~t~~h prov~~ions ~nus~ in~~ude~
~, P~y~e~t Bon~: ~ pa~ment ~on~ in the a~ount ~f ~~~
~undred Fe~c~nt ~1~~°Io~ of th~ ~ontr~~t ~hal~ be fur~ais~~d f~r
th~ prot~c~ian of a11 persans, f~rm~, and ~~rpor~t~ans ~vho ma~
~rnish r~ate~.a~l~ or perfQrm ~a~bor. Th~ P~.~.nen~ Band ~~all Iist
t~7~ ~1~ ~~ ~ ~~7~1~~~.
~. ~erformancc ~o~~: A p~orm~nc~ bond ~r~ ~he a~nour~t o~ ~r~e
Hundred Per~ent ~ 1~0°/0} ~f th~ cor~~ra.~~ shal~ b~ furnished
~ c~vering the f~.ithful perfornnance of t~e ~on~r~ct. T~~
performan~e ~ond sha111~s~ t~e Ci#y ~~ ~ o~l~ge~.
Les~ee shall ~~y ~hen due all clain~s for Iabor and ~~terial
fur~~ished on or ab~ut t~e ~'remi~es or in ~or~e~~tu~ ~~th th~
Im~ro~ement~.
Les~~~ s~all h~~e no po~ver ~o ~~ ~y a~t ~r to m~ke any can~ra.ct th~t rria~
~reate or be ~he ~oundatian. for an~ Iien, m~rt~~~e, ar o~ier encumbza~ce
on ~he reversion ar o~ier e~tate of ~it~ or t~~t ~v~u1d b~ p~ior to an~
~nterest af ~it~ ir~ ~he Pre~nx~~~, ex~ept th~t Le~~ee ~o~r a~ Su~le~see} ~~a~ll
~a~e ~~.e r~ght, in ~he ordinar~ ca~r~e af bus~n~~~, to ~inance purchas~~ of
FFc~E ~as d~fir~ed in ~ect~on ~,4} by p~o~idi~g a~i~r~t lie~ on such ~tem~,
so l~~g as an~ F~S~E ~a liened ~an ~e ~~fel~ remo~ed a~ pra~ided in
S~c~~an ~,~#. Less~~ sh~~~ not suffer or permit an~ lier~~ ta attac~ to the
in~e~e~~ of Les~e~ in a11 or an~ par~ ~f the ~~emi~es by reason ~f an~ ~o~k,
lab~r, ~~vices, ~r mat~~i~ls don~ for, or supplied to, or c~airri~~ to ha~e
been d~ne fa~ or supplied to ~essee ar ~n~r~ne occup~ing or holdin~ ~
interest in all ~r an~ ~art of ~he ~npra~rements on the Premi~e~ through ar
under Les~ee. 7f an~r n~e~hanic's, co~~t~u~tion or other li~n~ or orde~s far
~he ~a.~nent o~ ~none~ ~h~l~ be ~i1ed a~g~.in~t the P~emise~ or a~y
Improv~mer~~s th~rean b~ ~easan ~~, or aris~ng o~t of any labor or materia~
~irni~hed to, o~ f~~ ~he Le~s~e ~~ ~he Pre~i~e~ or ~or o~ ~~ rea~on of ~~
C~l~~~, ~~t~`~~10~1 OI' ~C~C~1~1~~1, by Les~ee, or the cost ~r ~~pen~e thereof, or
a~y ~~n~racf rela~tin~ ~hereto, or a~ain~t t~e ~i~y a~ le~sed fee o~~er
thereo~ b~ reason of L~~see's ~vor~ or c~nt~act ~e~a~in~ ~heret~, ~hen ~ithin
~~~t~ ~G~} da~~, the Le~~e~ ~hal~ c~use ~ie ~a~ne ~o be ~anceled and
d~sch~rged of record, by bond or other~vi~e, a.t th~ election ar~~ expense a~
~e ~es~ee, ~d ~hall al~a def~nd on behalf of ~ity, ~~ ~essee's ~ole ~a~t
and e~~e~~e, a~~ actior~, suit o~ proceed~n~ ~~i~~ ma~ ~e b~~~gh~ thereo~
vr for ~~e e~forcement of such li~n, l~ens or order~, ~d the Les~e~ v~ill pa~
ar~~ damages and di~~har~e a~~ ~udgme~.~ en~ered thezein and ho~d the
~ity harmle~~ fir~m ~~ ~as~, ~~~~m a~ ~ da~nage r~sultir~~ therefrom,
xnc~udin~ rea~o~n~ble at~orne~' ~ fee~.
~o~hing in th.e L~ase sh~~l b~ deeme~ to ~e, or be ca~~trued in an~ ~~.y a~
can~titutin~, the ~an~ent or reque~t of ~~~y, express or implied, by
18
1~1~~I'~~C~ Q~' Ot~1~I"VVI~~, to ar~~r p~rson, ~rr~, or ~nti~y fa~ the perfor~~n~e
af an~ labar or ~ie furni~h~~~ of an~ ~nate~i~.~s far an~ cor~s~u~tion,
rebuildi~g, alter~ti~n, ~r repair of or to the Frem~~es ~r to t~e
Ir~pro~e~nents, o~ as gi~ring Lessee an~ right, po~er, or ~u~.orit~ to
c~ntract f~~ 0~' ~~~`f~llt t~~ ~`~~1C~~I1~ 0~ ~~ ~~I'~1C~~ U~ t~l~ ~UI`I1~5~1I~~ ~~
an.y m~~erials th~t ~ight ~n an~ ~a~ ~.~e ris~ t~ th~ right to f~~~ ~~ ~ien
a~gainst ~it~' ~ int~rest in t~e ~rernise~ ar ag~~s~ ~ity's intere~~, if any, tn
~he ~mpro~em~nt~. L~~S~~ 1S I1Qt 1I1~~I~C~~ ~~ ~~ ~ ~~~Il~ D~ C1~ ~~~` ~1~
constru~tiQn of In~provement~ on ~he ~r~mise~~ ~i~~ ~ha~l ~a~e the right
~o po~t and ke~p pasted a~ a11 r~asonab~e tin~e~ on the Pre~ni~e~ an~ o~ ~he
~n~pro~em~nts aa~y notice~ th~t ~~t~ ~na~ rea.~or~~bl~ v~ish to po~t far the
pr~tecti~a~ o~` Ci~~ and of t~e Prern~~e~ and o~ ~he ~mpra~emen~s fro~ a.n~
~u~~ lien. T~1~ ~~~~~~1~1~ 5~1~1~ ~.~~ ~~ CO~I~~'l~~(~ t~ ~1~]1~11S~ 0~` V1~1~~~ ~l~
right~ of Le~~ee in ~he Leas~ to ~on~truc~, alt~~, vr add to t~e
~mprove~nent~.
~.~ ~vvne~r~~~p of Improvements Duri.ng Term.
~uring the Lease Ter~, title ~o ~y ~nd ~~~ I~npr~~e~ents, incl~ding, without
I~~ita~ion, build~~g~, parkin~ ~reas, dr~~r~s, ~va~~~a~s, land~c~pe improve~ments
~I1C~ 1I]~c~S~`~1C~llY'~ 1I17~]~O~~l~I]tS 5L1C~1 i~S ~'O~C~V~~~S, utili~~es, r~ax~s and line~,
c~rb~ and ~rair~a~ge faci~i~~es, ~hich are c~~structed, in~~al~ed, or er~cted on ~he
Pren~~~e~ ~~ Le~see durin~ the Lea~e ~'erm s~al1 v~~t tn L~~see ~ur~les~ any su~~
impro~~mer~t~ ~re ded~c~~ed to ~he lo~a~ ~ut~icipal~t~ or ~pplicable util~t~ s~rvi~e
pxo~~er} ~r attac~aed andl~r ~~`fixe~ t~ an~ bui~dir~g b~ Les~ee, ~h~ll remain v~i~h
Le~s~e du~in~ ~he Lea.~e ~'erm ~r until the Expirati~n D~te or earlie~ terminatio~
or cancella~ian ~~ ~hi~ I~eas~ ~nd ~ha11 th~~eupo~ automat~ca~l~r ~rest ~n ~~t~ ~s
pro~ided in Se~~ian ~.~4, ~~a~e. No~ri~i~tandin~ t~he ~'areg~in~, ~~tle ~o any ar~d
~11 FF~E {~~ de~ined in ~ection ~.4, abo~e} belongin~ to ~e Lessee ar an~
sub~e~~ee, ~hall kee~ an~ retain their ~hara~ter ~~ persanal pr~pert~, shall n~t be
de~med to be a. par~ of th.~ Leas~hald ~sta~e, an~ sh~ll be ~nd re~nair~ the property
o~ the Lessee ar its s~uble~~ee, a~ a.pplicable, ~u~ing the Lease Ter~m and ~he~r~a~fter,
~ollowing ~he Exp~rat~on. Date.
G. ~I~'~'~ ~BLI~A~TI~NS
d.l Ta opera~e ~~rpu~ ~h~i~ti Inte~atianal 1~irport a~ a pu~Iic airport durir~~ thi~
~eas~ sub~ect to ~e ass~~nces related t~ airpor~ ~p~~~tion given ~y the ~it~ ta
th~ Uni~ed ~tates ~o~ernmen#,
G,~, To ~na~~ v~ater, gas, a~d ~vaste~a~er serv~~e ~~ai~abl~ to the Prem~~e~ ~eas~ Iin~
l~~]OI1 ~~.~ ~~.tY1~ ~~515 ~~ ~~~~1~5 t0 ~US1n~SS~S OIl ~~.~ Al~~~. Le~~ee n~ust pa~ for
a~~ costs as~oc~~ted v~ith extend~ng utili~y ~~r~rice~ fram t~e Premis~s ~e~~~ ltne to
areas ~vith~n ~he Prer~x~e~.
19
'}. A~~I~NN~~NT AND ~[TB~~TTIN~
7.I, ~~~'s ~an~~e~t Not ~~quired f~r Su~~eas~. ~it~ a~kno~ledges th~~ Lessee
doe~ not ir~tend to occup~ t~e Prer~~s~~ ar~~ the Pr~mi~es v~i~l ~~ sub~ea~ed ~v the
~J~~~. Notwi~s~~n~in~ ar~~thing ta the cnn~rar~ in th~~ Le~se, Less~e ~~a11 ~av~
the r~ght, ~vithout the p~or ~an~~~~ of ~it~, tn sublease the Pre~m~ses u~der th~
term~ ~d c~ndit~~n~ ~f ~~u~lease, negatia~e~ an~ ~ntere~ in~o so~el~ b~ I.~~~~e
and the U~~C~; As such, Le~s~e rria~ s~blease the Prer~i~e~ ~~thout ~~ty'~ p~.o~
~ans~~t~
~,~. A~si~nme~t, T~ll~ L~~S~ ~~~ ~~ ~S~I~I~C~ t0 L~SS~~' S~Y'1~C~~~~, ~.f~ilia~e~, or
~ub~idia~ies of ~t'~ ~1.'1~1C~~~1~ ~V1~~~~1~ ~1~ ~V~`1~~I1 C4~lS~~~ ~~ ~lt~. F~r ~l vther
as~ignme~t~, the wri~ter~ con~ent ~f the ~ity n~u~~ be o~~ained, ~ut ~~ty' ~~ansent
thereto sha11 not ~e unreasona~~ly ~rtthheld~ ~pon a~prov~.l of t~~ a~signx~ent b~
the ~ity, togeth~r v~ith a co~~ af' the docun~e~.~ ef~e~tuatin~ ~u~h as~~gnment, ~he
Le~see sha11 be rel~ased ~ron~ ~1 term~, con~it~un~ a~~ o~l~~~t~ons under the
L~ase.
S. ~~E~IIVI~NT ~T~PUL~A'~I~N~
S.l.. I~ig~~ to Amend, Yf the ~AA, QI' ~~~ ~L1CC~~~~~'S, I'~~111~~S I~0~1~1C~~~0~1~ ~~' C~~]~~S
~~ th~s I~~se as a ca~~~~~an ~~ecedent to gran~zng fund~ ~or Air~~r~ imp~over~er~ts,
Le~~ee agrees to c~nse~t ta the amendr~ents, mo~ificat~~n~, ar chan~es o~ t~is
~,ease a~ r~a~ be ~reasanably require~ ~~ ab~a.in ~he funds; pr~~ide~, h~~ever, that
I~e~~ee v~~ll not ~e requ~re~ to pa~ ir~~re~sed r~n~ o~ ~har~~e the u~~ o~ t~e
~re~~ses or acc~~t a relo~~tion or reductxon in si~e of the Premi~es ~nti1 I~es~ee
~n~ the ~~t~ ~a~e f~~ly exe~ute~ ar~ amend~nent t~ thi~ I~e~se th~t ~s mutually
sa~~~~~ct~r~ ~o ~.1~ partie~ far ar~y ter~m~ ~r c~n~di~ions of this Le~se affected b~
~11C~] ~Ct~~~l~ OI' t~l~ ~-~i~S~ 1S ~~1`I]]1I1~~~C~.
8.~. Subordina~ion ~o U.~,1FAA requir~m~~t~, Thi~ ~ea~e i~ subordina~e ~o the
provi~ions a£ ~n~ existi~g ~r fu~re agr~ernent betv~een ~ity and ~he Unite~ ~~ate~
~'~1~~1I~~ ~Q ~~~T~~~tl~ OT 11~.~.1t]t~1~11I~~ ~~]~ AlI`~?QI'~, the exe~ution af v~~ich has ~~en
a~ r~a~r be requi~e~ as a~o~di~i~n to ~he expenditure of fe~~r~l funds for the
devel~~ment ~f ~he ~ir~~rt. If ~he effe~t af ~u~h agre~~ent w~th th~ U~ted
St~te~ is to take any of the P~emi~es under th~~ L~ease out ~firo~n ~he control of ~~ty,
then ~it~ n~u~~ ~r~vide ~dequate Premises to I~essee ~r #er~inate t~i~ Lea~ei
9. AIR~R~F'~' ~PERAT~~ A1~A
~essee and it~ re~pecti~e contract~r~, sup~l~er~ of ~ma~erial~ and furr~i~hers af ser~ri~~~,
e~~la~e~~, ~gents~ ~d busine~~ in~itees, mu~t ~~~npl~ ~rith a~l ~resent ~~ futur~ lav~s,
~'111~5, ~~~1~~~10I~~, ~~ DI'~1~~]C~5 ~I~D~U~~~~~C~ ~~ ~~1~ ~1~~, ~ie Airpart, t~e T~an~par~ation
2~
~ecur~t~ Adr~inis~rat~ar~ ~TSA}, ~he FAA~, ar~d ~~her gover~r~~ntal a~encie~ to protec~ #~~
se~u~t~r and ~n~e~i~~r of the Airc~~~ ~perating Are~ ~"~~A33~, as de~~ed b~ the ~irpor~
~d ~he F.AA, and to pratect ~~ainst a~ces~ ~o the A~A b~ u~.~u~h~rize~ pe~~~n~,
Subj ec~ to t~e ~ppro~al af A~~~ti~n Director, ~essee m~s~ adapt ~~oce~ur~~ to control an~
~i~nit ~cces~ ta ~he ~~A b~ ~es~~e ar~d i~~ ~espec~i~e ca~tractors, ~-~~p~ier~ of n~at~~.a~s
~nd furnish~r~ of ser~ices~ e~~~o~rees, and bus~ne~s ~n~itee~ ~~ ~ccordan~~ ~rith ~11
pres~nt and future A~~or~, T~A and FAA la~vs, ru1~s, reg~la~i~ns, an~ ~rdinance~.
Ph~~ical barrie~~ ~o prevent acce~s to the A~A rrzust be ~n ~ffe~t ~uring the cons~uction
~ ~f ~mpr~ve~ner~~~ u~on th~ ~remises.
I~esse~ furth~r agree~ to ~nt~emnif~, ho~~ h~rmless, def~n~ ~nd in~~~e t~e ~ity, i~~
off~cer~, agents, ~~d ~mp~oyees ~~~i~n~t the risk a~ ~~~~1 lia~ility for d~ath, injur~, ~~
~ama~e t~ per~on~ or ~raperty, dire~t or cons~qu~nti~l~ ar~si~g ~rom ~~tr~ af
persons in~~ the AqA where p~rn~itted, allo~ed or ~therwi~e m~de pa~~~bl~ ~y
Le~see, its ~s~i~nee~ a~d the~r respect~v~ contractars, ~upplier~ af n~~~erials a~d
furnis~er~ af service~, emplo~e~~, ~u~~i.n~~s invite~s, ~gent~, or any pers~n u~der t~e
direc~on of Les~ee ~n. v~o~~tion of ~~t~, Airp~rt, '~~A, and FA-A ~~r~~, rule~,
r~~ulatian~, o~ ordi~an~es ar I~~~see's app~aved pr~cedures far co~~~~lling ~~c~~s ~a
the A~A,
Les~ee mu~~ o~t~in en~p~a~ee id~~ti~ication bad~e~ fvr all ~er~a~ael ~uthorized b~ ~es~ee
to h~ve ac~ess to the A~A in accord~.nce ~ith the pra~~~ions o~ F~~eral Avia~~~n
R~gu~atio~~ ~~'AR}, 4~ ~FR. P~rt 1542, and ot~er la~v~s, ru~e~, regulatio~~ and ordi~an~es.
i~ess~e r~u~t ~ay a~l FA~A and ~'~A f~ne~ a~so~iat~d ~~th ~e~uri~~ brea~he~li~~ra~~~ans ~~
~e~see'~ age~~~, o~~i~ers, ~u~in~es~ in~itees, and emplo~ee~ in the A~A, re~a~rd~e~~ of
i~V~l~~l~~` ~1~ ~1~~ 1S ~5~~~~~ tD ~lt~, ~-~rp~~t, or Le~se~ or it~ assignees, at~d its o~ t~eir
respec~~~~ ~.gents, ~fficers, bu~i~e~s invitee~, o~r em~~oye~~ as s~t out in the ~~ty ~ode of
Ordin~nc~s, ~ec. ~-3Z.
9.1. Mov~me~nti i.nto Aircraft ~pera~ions Area ~"A~A"}. Le~se~ ~vil1 hav~ a~~e~~ ~o
the Air~ort, subje~~ t~ ~omplta~c~ ~v~~h al1 applica~le FAA, '~~A, an~ Airport
secur~t~ pr~cedure~. Mo~~men~ ~f al~ airc~~f~ ~n~ persans ~om the Fremi~~s in~o
~he A0~ a~d ~r~m the A0~ into the ~re~ises must be c~~a~ed in ~~co~dance v~ith
Airpor~, T~A, and FAA rule~ and regulations~ Le~se~ ~s pr~~naril~ r~spon~~ble f or
openin~ and closir~g an~ se~u~.~~ ga~tes and dao~r~ permittin~ a~ces~ ~olfr~n~ the
P~~n~~~e~ ~romlto the A.~A.
9.~. V~hicle~ in A~A~. l~o vehicle~ o~n~~ or operated by ~~~~~e may op~r~te ~ith~n
the ~o~ement or NQn-~o~~ment Areas of the A~A except t~o~e in ~om~li~~e
~vith T~A, ~~-A, ~nd Airport r~~ula~ion~. ~~~ Slt~ ~~~1 1~~~S~I'~~1~~ ~~.fC~ A~1~,
~t~~C~l~~ ~lC~ lI]G~I'pU~'~~~C~ ~S ~X~l1IJ1~ ccD"~"~4ircr~ft Opera~in~ Area"}.
~.~, Airp~rt ~er~ificat~a~. L~ssee rnus~ con~~ly ~i~h rule~ tha~~ are ~pplica~le ~o it~
operatiar~~ on ~he Airport under ~he A~rp~rk Ce~t~fi~~~~on Ru~e~ of the FAR, 14
21
~~~ P~rt 139, as ~tnended. ~op~~s ~f t~~ ~AR ~re ~~a~il~.b~e in ~he ~ffce ~~
A~r~iat~on Directar.
9.~4. A~rport ~ecurit~. Le~s~~, its o~'i~ers, emp~oy~e~, ~nvi~~e~, a~ents, ~anfi~ac~~~rs,
ar~d gue~t~ ~nust ~ornpl~r v~ith at1 fe~e~~l ~d l0~~.1 Airpor~ Secu~.ty Reg~~~~iar~s
a~dopted b~r ~ity pursuan~ ~014 ~~~ P~rrt 1~40, as th~ ~atne n~a~ be arr~ended.
L~~see ca~enat~ts to in~e~f~ and I~~1~ harrn~~s~ ~it~, its af~icer~ a~d e~.p~o~ees
f~om ~~ charg~s, ~ines, ar per~~l~i~~ that ~na~ be asse~~ed or ~e~ied by ~he ~AA o~
TSA by r~a~o~ of t~e r~~gligen~ or ~nt~ntion~t fai~ure of Lessee, i~s ~~cers,
er~p~oy~es~ in~itees, a~~nt~, cont~~.~tor~, o~ gu~e~~~ to comply ~ri~h Airp~r~
~e~urit~ R~gulati~r~s, ~~~~rdles~ of ~rheth~~ Lessee, ~tt~, or Airport I~as sa~d finey
C~1~~~, U~ ~~~1~.~~~ l~Vl~ ~~~1~5~ 1~,
~,~ 14 ~F~ P~rt ~7 Requiremen.ts, Le~~ee co~enants ~o co~npl~ ~it~ t~e
n~ti~icati~n ar~d re~~e~v requirements ~et out in Part 7'7 of t~e Fe~er~~ A~~~ion
ReguJ.a~tion~ [14 CFR Part 77~, as ~.er~~ed, if Le~see p1an~ ta con~~ruc~ or modify
any pr~sent ~r curre~t ~~ructi~re, anter~a, or bui~ding ~ocated ~n t~e Prer~i~e~.
~U~~~~ ~~ ~1~ FAR ~'E ~~~1~~~1~ 1~1 ~~ 0~1C~ ~~ A~1~tlU~1 D~~~C~~~1
9.G. ~ant~ro~ of ~~ructure~. Lessee ~ha~l na~ ere~t nar perm~t ~he ere~~~on of an~
~tru~tu~e, antenna, or building, r~or permit ~he gravvth of a~~ ~ree ~n th~ F~emise~,
v~h~ch ~~s its highe~t p~int abo~e a~e~ ~ea leve~ elevation e~ta~li~he~ by FAA
~lC~ ~lt~ ~~ ~ ~1~~ ~,~ ~1I~]1~.~10~10~1 ~~1(~ ~~I'1~~~~, ~]~~Iltlcl, ~L~11(~1I1~, or ob j ~ct. ~it~
n~a~ enter the Prem~~~~ and ~r~ove ~he encroaching stxucture, antenna, buildin~,
or abje~~ at ~e~~ee'~ ex~en~e ~l~s ~~°I~ a~rexh~ad,
~,7, Aeria~ ~pp~u~ches. ~1~ ~VI~I~~~ IYI~.~ ~~~ ~1~I ~~x1~I7 I1~C~~~~ ~~ ~~'Dt~C~ ~l~
Airp~r~'S ~~I`i~1 ~~~]~~~.C~1~~ ~~i~1~5~ ~~5~'LiC~1~I~, ll~~lU~1~1~ ~~~ T1~~ t~ ~]~~~~I1~
~e~see fr~m erectin~ or permi~tin~ to ~e er~cted, an~ build~~g, or ~tructur~ an or
ad j acen~ to the ~~rp~rt, ~hich in A~ria~i~n ]~i~e~tor' ~ opinion, ~vou~d ~itnit the
u~e~Iness af th~ Airpo~# or cons~~t~~e a hazard ta a~r~r~.~.
9.$, ~i~h~ t~ ~v~rfl~ght. ~ity here~y reser~es, for the us~ and bene~t of the pub~ic, a~
right af fligl~t for the pass~g~ of ai~cra~t ~bove the ~urface of ~he Pr~n~i~e~
to~eth~r v~ith ~h~ right to ~~use ir~ ~he airsp~ce, noise as ~n~~r be inherent in t~e
oper~~io~ of air~ra~, r~a~ kn~~vn or hereaf~er ~~ed fnr na~igat~~r~ t~~eaf nr fltght
~I] ~l~ ~lI', L1S1Il~ ~~1~ ~1~5~~~~ ~~~' ~~I]C~1~1~ ~t, or tak~ng o~f f~om, or ~pera~in~ on, the
Air~o~t~
1a. N~~D~~~RINIII~ATI~NIA~FIRMATI~E A~T~~N.
1~.1 N~ndiscriminatio~ - gener~Y. Le~see for itse~f, it~ pers~nal represe~~~~ives,
~u~c~~~or~ in ir~terest, ~(~ ~~~1~5, ~~ ~ ~~ ~~ ~~1~ C4~l51~~~'~tl~~l ~~~~~~, ~o~enant~
tha~: ~ 1~ no p~~~a~ on the gro~unds of race, creed, ~olor, religion, ~ex, a~~~, r~~ti~na~
origin, handicap, or politi~al be~ief or af~liation ~~~~ ~e exc~uded fro~
~2
par~ici~~.tion in, de~ied t~e b~~.efi~~ of, ar other~~se be ~~~jected ta di~crin~i~ation
in ~ie u~~ af the Fren~~~e~; ~2} in the ~o~~tr~~~~on of an~ ~m~ro~eme~t~ ~n, ~~er,
ar un~er th~ ~~emi~es ~nnd ~he ~u~ni~hin~ of set~ri~e~ t~ae~eon, n~ person or~ the
~rou~nds ~f ra~e, c~1ar, ~eligion, s~x, age, ~.~t~o~al origin, handic~~, or pol~tica~l
belief ar affil~atior~ v~ill ~e excluded from par~icipation i~, denied th~ ~ene~~~ ~~`,
4~ D~~~`'~Vl~~ ~l~ SL~~7~~~~ ~~ C~1~Cr`lIYl1~1~f10I1; ~3~ ~e~see ~vill u~e the ~~e~m~~~s in
~on~pliar~ce ~~th ~.~1 other re~uireme~ts imp~sed b~ or pursu~nt to 14 ~FR F~rt
~ 5~, ~ubpart E Non D~~crim.~r~~~ian in A~rpart A~d Program and Title ~I of ~he
~i~il Rights A~t of ~ 9~4 ~nd 49 CFR, S~b~itle A, Part ~~,~0~1C~1~C~`lIY]lI]~tl~~l 1~1
Fede~~l~~ ~s~~~ted Pragrarn~ of the ~epar~ment of '~~r~sportatian, ar~~ ~s s~id
~'itl~ and Regulati~n~ ~a~ be amended, ~n~ ~vi~h ot~her applica~~e sta~~e ar federal
~au~~ ar regu~~t~on~, as am~nde~.
10.~ Nondi~cr~m~n~~i~n-Bu~ines~ ~w~er, ~11~ L~~S~ 15 ~ll~?~]~C~ $0 t~l~ ~'~C~L~lI'~I~1~I~~~
~f ~ie ~J.~. Depar~me~.t of Transp~rtation'~ ~~gulati~ns, 49 ~FR P~rt ~3. ~essee
agrees th~t ~t ~vill n~~ discr~min~~e agair~s~ an~ bu~ir~e~s o~ner b~cau~e of the
~v~mer's race, c~lar, ~~tion~l or~gin, or ~ex ir~ ~nne~ti~n ~v~t~ the a~var~ of
perf~rmar~~e or an~ conc~ssion ~gr~err~ent, manageme~t ~ontract ar ~ubco~tra~~,
~urchase or lea~e agree~ent} or oth~r agr~ement covered b~ 49 ~~`~ ~art 2~. .
1 U.3 ~emed~ for Breach. ~f Le~see ~reach~~ a. nor~-C~~~L`~1I~1~1~t10~ ~D~~~1~.Ilt, ~it~
ma~ irra~e~~~~e1~ reenter the Fre~~~e~; and t~e Premi~e~ ar~d al~ L~~see's ~~tere~t
~1~'~1I1 ~~~~~5 t0 ~lt~ ~C~ 1~S ~551~I1~. '~`hi~ pro~i~i~n i~ n~t effe~ti~e un~i~ ~h~
pracedur~s of ~'i~l~ 4~, ~~de of ~'ed~ral Regula~~on~, Part ~ 1 are con~~~ete~,
including exerci~e ~~ e~piration ~f appeal rights.
1~,4 Aff~rma~ve ~~~ion. L~~~~~ ~55~1~~~ ~~1~~ 1~ V~~~1 11I1i~~~.C~ ~1 ~~1I"~1~t1V~ ~~~10I~
p~ogram as ~equired b~ ~~4 ~~R Part 1~2, ~u~part ~, t~ i~sur~ that r~o person on
the gr~u~.d~ af r~ce, cre~d, colo~, religinn, ~ex, a~~, n~ti~nal origin, har~di~a.p, o~
pvl~ti~al belief or a~filia~ion ~~ exc~uded fron~ participating in an~ empla~rne~t
a~~~vit~e~ co~ered ir~ 14 ~F~ Part 1~~, ~ubp~ E. L~~~ee assure~ ~ha~t no person
~ill b~ excluded ~r~ the~e grounds ~rar~ par~ic~~ating in o~ rece~~in~ t~e ~~~vi~e~
or be~e~ts o~ any program or acti~it~ co~ered b~ that ~ul~par~. Le~~ee fi~rther
agrees ~o requir~ xt~ ~overed su~-a~~~ni~ations ~o prav~de ~~~nilar a.ssuranc~s to
Le~see ~o undertake affir~a~t~~e action progr~m~ ~d ~~ require ~s~urances ~rom
the~r sub-arganx~~~ion~, as required b~ ~4 ~FR Part ~ 5~, ~ubpart E. Lessee ~t it~
~~.~en~e ~vill c~rrrpl~ v~it~ an~ applicabl~ ~equirements of ~he Amer~can~ v~~th
D1S~~?ll1~l~~ ~A~A~ ~ 1~ IY1~~ ~7~ ~~Il~~~.
1~.~. Disadvant~ged B~sine~s Enterprise~ ~D~E~. 'Th~~ ~,ease is ~ub~e~~ to t~ie
require~nen~s of the U.~. Depa.r~m~n~ of Tran~~or~ation's regulations, 49 CF~. Part
~b. It ~~ t~~ ~it~' ~ ~0~1~~ ~'1.~~ D~~S ~1~~~ ~~1~ ~1~X1~I1~tI1 ~~'~Ct1C~~~~ 0~~~~11t71t~
to be a~varded Ai~ort contra~ts. ~e~see agre~s t~ u~e good faith effo~~ to
pra~no~e thi~ p~licy through ~t~ L~ase a~ the ~~~or~, Additian~l~y, Les~ee, as an
Equ~l Opportuni~~ ~mplo~er, a~ee~ to use goo~ ~a~ith effor~s to ~~~vide
~~,K~I11U~I1 Q~I~~I'~11I11~~ ~0~ ~~1~ ~~~1~1C~~~'~~~0~ ~~ U~~ 0~ DB~~ lI] ~~l~ CO~1tI'~Ct1I1~,
~3
~ubc~ntrac~in~ and ~urchasing a~ti~itie~ a~soc~~ted v~~t~ this Lease and to abide
b~ all appli~a~~e pr~~r~sians ~~ ~he Airp~r~'s DB~ appro~ed P~o~ram and tk~is
Lease. ~e~~e~ fur~he~ agrees that r~o p~rson ~vill b~ ex~lu~ed fro~n p~rtic~~~~~~n
in, der~~ the ber~e~its of, ar oth~~i~e ~e dis~~i~in~~ed a~gainst ir~ c~nnectiar~
~V1~~1 ~~ ~.~V~'E~ ~I7(~ ~]~~1`rri~lG~ 4~ ~I7~ ~11'~0~ C~II~'~Ct ~7~C~L1S~ 0~ ~'~C~, ~a~or,
religian, na~ianal o~igi~, sex~ a~e, ha~dic~p, or pali~~~al ~~1~ef or affil~ation, and as
n~are spe~i~ic~~l~ provid~~ ~n Se~~ion 1~ hereof,
11. ~A.~CEL~ATION ~ '~E~MINATION,
1~.1, ~ancel~at~o~n by ~essee. ~ithaut ~imiting an~ o#her rights ~nd reme~ies to v~h~ch
Le~~ee ~na~ be enti~~ed ~y con~mQn la~, ~ta~t~r~ 1~~, or as els~~h~~e pra~ide~
in ~his I~e~~e, ~hi~ Leas~ ~~y be canc~le~ ~~ Lessee a~ ar~y ~ime after t~e
~~pper~ng, an~ du~i~g ~ie ~xist~nce, ~~ one ar more of ~he fall~v~ing even~~:
~. The p~rm~nent abandonment o~ the Airpart;
~. T~e ta~ful ass~pt~or~ ~~ the U~t~~ ~~a~e~ ~overnment, ~r an~
~u~h~rized ~gen~y ~hereof, of #~e oper~tian, contro~, ~r use o~ the Airpor~,
ar ar~~ substantial p~t or parts thereof, ~i~~ sub~tant~~l~y r~stricts Les~~e
~r~m ~perating for at leas~ 15~ ~~y~;
~. ~~ 1~~~~I1~~ ~~ ~~ COU~ ~~ COITI~]~~~~1~ ~]UI'15~~Ct10~ ~~ ~I] 1I1~11~1~~10I~ t~l~t
~]T~~~IZt~ OI` ~`~S~~lI]S t~1~ ~lS~ ~~ ~~1~ AlI'~]~1"~, th~t c~ntinue~ for ~~ ~east 150
C~~~S; 0~'
4. The defa~ult b~ the ~it~ ~~ the performa~ce of ~y c~~enant ar~d the failure
of' the ~ity to r~med~r the defa.ult f~r ~~ day~ ~#~er re~eipt frana ~e~~e~ of
~v~~ten noti~e ta remed~ the sa~ne.
11.~. Termi~.~~ion by ~he ~~ty. ~ithQUt li~~ting an~ other ~igh~~ and remedie~ t~
'S~V~]1C~1 ~~1~ ~1~ ~1~~ ~}~ ~I1~1~I~~ ~~ C~t]]~170I1 ~~~V, ~~a~u~ory ~a~, or a~ el~ev~her~
~ro~ided in thi~ Le~~e, this L~a~e ma~ be ~ermin~te~ b~ ~ie ~i~y if Le~~eei
1. ~~ in arrear~ ir~ pa~ing a pa~ of th~ rent, fee~, or ~harge ~or ten { 1~}
~usine~~ da~s ~"busi~e~s" d~~s are ll~~n~a~r thr~ugh ~~d~.~}, or su~h ot~~r
~ime a~ ma.y ~e provid~d he~e~n. The ten. busi~ess days co~nence an
dee~ed re~eipt of ~v~t~en notice fr~rrl the A~ia~i~~ Director t~ Le~see of
the default.
~. N~ake~ a general as~~gnment f~r tt~e ~ene~it af credi~~r~;
3. Abar~d~n~~ ~he Premises o~ an~ part ther~of,
4. ~iles a ~ol~nt~ry ~etiti~n in ba~ruptcy;
~. Defaul~~ on indebted~.e~~ to an~ Lend~r v~i~h a secur~ty ~r~terest ~n an~ of
~es~~e's pe~onal pr~~ert~ at the ~rem~~e~;
G. ~the~vi~e default~ i~ the performanc~ of an~ of Le~see' ~ cavena~t~, ~d
~~n~inues t~e defaul~ for ~~ d~.~r~, or ~uch ather time a~ may ~e pr~~ide~
he~e~n, ~~~~' T~C~~~~ ~~ ~"l~~I~ I10~1C~ ~OII7 t~l~ ~V1~t1~Il D1I'~~tOx ~~ ~~1~
defau~t. ~~ the default i~ ~~~h ~hat it c~not be ~ured ~~~iin ~~ days ~r
24
su~~i other ti~~s may be set ~u~ i~ t~e r~~ti~e o~ defa.~lt, Lessee i~ deer~ed
to ha~~ cured t~e d~f~ult if it ~ithin t~e ~pplica~I~ ~~~ia~ cammence~
per~'ormance an~ ~iereaft~ dili~ently pr~secute~ ~h~ ~a~e to c~~nple~ton.
11,~. ~~ty~~ ~ght of En~~ Upon Termination~, ~f the ~it~ tern~inates ~he Le~~~ or
if' Lesse~ abando~~ the Pre~nise~, th~ ~it~ ma~ ~n~er upan th~ Prem~~e~.
~~he e~ent af t~r~nina~inn b~ t~e ~~~~, L~ssee h~~~~~ irre~~cabl~ ~ppoints ~he
~ity Nl~a~ger i~~ a~ent ~~ remo~e an~ and al~ persons or p~oper~~ fr~na ~.e
Pre~n~~es and plac~ an~ prop~rt~ tn ~tor~.ge for the acc~un~ of and ~t expen~e ~f
Les~ee. Except fvr Person~~ Pr~pert~ ~elang~g ta U~~~ ~n~ ~ny nther
government~~ e~t~~ie~ ~ccuP.~in~ the ~'~remi~e~, a~ ~Oroperty an t~e ~remi~es is
hereby su~~ected ~o ~ co~~ractuat Ian~~lor~s ~en to ~ecu~re paymer~~ ~f
~elinquent re~a~ ~n~ ~ther ~um~ due ~~d unpaid under ~hi~ Lea~~, ~n~ and all
exer~pt~on ~aw~ are ~~~e~~ expressly w~iv~d i.n favor af ~u~~ landlnrd~ lien;
~~d it is agreed th~t such ~an~~~ar~~ s lien i~ n~~ ~~~~~er ~f an~y s~~t~tory ~r
~ther lien giv~n ar w~ich ma~ ~e gi~en ~~ the Cit~ but ~~ ~n ~~dition there~o.
Lessee ag~re~s ~hat if it def~u~~~ ~e ~ity Nian~ger m~y, on thi~y ~3 D~ da~s prio~
v~r~~ten notice, ~e~~ Les~ee'~ property fo~d on ~he Pre~~ses a.t a~ pu~~ic o~ priva.te
~a~e ~vith pr~cee~s o~ the sa~e a~plied ~irs~ to t~e co~t o~ the ~a1~, then t~ ~he cost
o~ ~t~ra~e of th~ proper~~r, if an~, and then ~~ the indebt~dr~e~~ of Lesse~, ~vi~ t~e
s~rp~us, ~f any, t0 ~?~ ~Y1~1~~C~ ~~ L~~~E~ ~t ~l~ ~C~C~~~~S ~1~'~1~1 ~~~1~I]~t~. ~f ~i~~
terminat~~ ar~d ~r~enters the Pre~ise~, the Cit~ n~a~ relet the Premi~~~ an~ if a
suff~cient ~um is n~t re~lized, af~er p~~~g ~~pen~es of the rel~~in~, to pa~ the
ren~ and at~e~ ~um~ agreed to be paid ~~ Le~~ee, Lessee agx~e~ to pay any
deficienc~r v~ithi~ t~~~ty ~~~} da~~ of Av~~tior~ Director'~ ~vrit~~n deman~ ~her~far,
includi~~ ~temized breakdovvn of aIl ~ast~ rela~te~ there~o. Le~~ee fur~her agree~
to h~~d harm~e~~ ~om a~nd in~~m~if~ the ~~~~ in~ludi~g it~ off'icers, age~ts, and
~171~]~~~~~~ ~~~l~iSt ~1~ IO~~ ~~' C~~I~1~~~ ~~ C~~.1~1 ~~51I1~ OU~ ~~ ~~1~ Cl~~' ~ actxo~a ~~
coll~ct~n~ n~onie~ o~ed it ~de~ thi~ ~ara~rap~, ex~ept far an~ 1o~s, dama~e, or
cla~m caused by t~e ~~gl~genc~ ~r wi~l~ul n~is~on~uct af ~he ~i~~ or its emp~oyees.
11,4, Not~ce af Termin~t~on. If an even~ of default occur~, ~d a~er due noti~~ th~
defaultir~~ par~~r ~ias fai~e~ to ~ure, the cor~p~~ining ~art~ m~~ at any ~irr~e after th~
~xptra~ian of an~ cure periad, an~ i~ ~he defaul~ has not be~n ~ured, ~ermi~.a~te th~~
Lease by natice in ~riting~ ~'~i~ L~~.S~ ~1~~ ~?~ ~~~`~]lll~t~C~ OII ~~ C~~t~ ~~~C1~1~{~ li~
the nntice but not ~e~s thar~ ~ive ~~~ busines~ da~~ fro~n ma.iling th~ noti~~. Rental
payr~er~~~ ~re pa~able ~~1~ to ~he date o~ t~rmination.
11,~, P~rti~~ ~estruction~, If the Pr~mise~ ar ~,e~see's ~mpro~emen~s or the Airpor~
fact~i~ies reas~n~b~~ neces~~ ~o operate Le~~~e' ~ bu~~ness are pax~~a~~l~ dan~ag~d
-~u~ xo a~ts af Go~ or other acts aut~i~e th~ cantral ~f Le~see ~r ~ity -~o the
ex~e~t t~~t L~~~e~ cannot u~e the Pr~ni~e~ ~.s a~ then, this
L~ase ~nay be ~e~ninate~ ~~r ~usp~nde~ until the ~am~~e i~ repaired. If ~~.~ Lease
~~
~~ te~minated as ~r~~~de~ for her~~n} t~e ren~ v~ill be abat~d ~ror~ the date o~ the
casualty.
~~o~rided, ho~ever, ~~1~~ L~S~~~ ~riU~t U~~ lt~ 1~151~~~C~ ~]~~~~~5 ~0 ~1~1~~ ~'~~~C~
the Impr~~ement~ or re~no~e ~11 tra~e af t~e Impr~~ements and t~e the Premi~e~
~ack do~n to ra~v ~~d. All rerna~~ni~g insurance p~aceed~ ~i~~ be pa~d to ~e~~ee.
T~e ~i~y~ Manag~r is the ~ole ju~ge of ~he exten# of dama~e ~o the Ai~por~ and
t]1~~I ~~T1T11I~~t~ ~~` ~U5~7~~1~ ~~ ~~~5~ U~Iltll ~~1~ C~~Iri~~~ ~~ ~`~~~.l~~i~.
I~ Lessee's P~emi~e~ or Impro~~ments are da~nage~ t~e City ma~ ~erm~na~~ ~r
susper~~ the Lease, ar~d ~f ~u~pend~d ~~t ~ time period for Le~see to repair ~he
darna~e~ ta the P~emise~ ar Impro~emen~s.
~2. INI]E~I~N~~~~ATI~N,
1~.1, ~EN~1~ -- Le~s~e mu~t i~demnif~, ~old harmYess, defe~~ ~nd in~r~~re #h~
~~~ of ~orpu~~ ~~risti, it~ offi~e~r~, a~~~ts, a~nd emp~oyees from ~a~d agai~s~
any ~~d ~ll cla~m~ ~n~ cause~ of actinn, ~~nlinistr~t~v~ pr~ceedi~gs,
judgment~, p~n~lti~s, fine~, d~mages, ~o~ses, demand~, liabilitie~, o~ e~penses
w~ats~ever ~~ncl~du~g reasana~le ~t~~rne~'s fees and ~~s~s af litr~~t~o~}
med~ation ~ndlor adm~n~~~r~t~~e praceed~ngs} which m~~ b~ br~ught,
a~eg~d, ~r ~mpa~~d ~~ainst ~he ~~ty, ~t~ of~cer~, a~ent~, o~ e~nployees arisi~g
directl~ or lndire~tl~ from or in ~rny w~y ~~nnect~d v~ith ~i~ ~n~ property
d~mage or Io~~, persanal injury, including death, or a~ver~e effe~t on t~e
en~ironment ~rising out ~f L~ssee's ~c~ion or ~nact~on w~~~ rega~d ta th~
opera~ions ~f I~es~ee here~~d~r, in~~udxn~ the u~e or a~cup~~cy of ~he
Pre~mise~, or in provid.~g access ~o secured a~e~~ of the ~irpor~ a~ se~ out
here~n, ~xceptiu~g only ~u~h 1~ability ~s may result fro~m the ~r~~s ~egli~ence
of t~e ~ity, ~nc~udin~ its affi~ers, ~gents, ~~d emp~oyee~; ~ii} ~he f~ilure of
~es~ee, i~~ agen~s or e~p~oyees~ tQ comp~y with t~e terms ~nd conditians of
thi~ Lease, or to compl~ wit~ ~~n~ applic~b~e feder~~, state, or ~ac~~ laws,
rules, ~e~u~ation~, or o~d~rs includin~, but n~t ~ir~ited ~n, an~ ~n~ ~ll fe~er~l,
sta~e, ar loc~~ e~v~ronment~~ l~~s, r~Ie~, re~u~ation~, ar order~; o~ ~iii~
rel~~~e of any ha~~rd~~s or re~ula~ed s~ub~tances or ~a~te a~to, ~unto, ~r firom
~e Pr~m~~es or ot~er ~irport property, connected i~ ~n~ v~ay w~t~ ~essee's
ope~r~tion~ or the ~ct~v~ or ~na~t~o~ of Lessee, i~~ age~~s or employe~s,
regardi~~~ of ~hether ~h~ ~c~, ornissi~n, e~~~~, or c~~rcum~tan~e ~o~~t~tuted ~
viol~~on ~f applic~b~e law at t~e time ~f ~1~~ occurreuc~. ~h~ rig~ts ~~d
obligat~ons set for~h i~ t~i~ ~ara~rap~ ~hall sur~~e t~e terrnu.~~t~on of th~~
Le~se. ..
1Z,~. ~~E~~AL ~LAIII~~ -- Lesse~ agree~ t~ defend, ~t i~~ ~~vn co~t, ~d t~ prote~~,
ind~i~, and a~her~vise ~.old har~m~ess, t~~ ~it~, in~~ud~ng its o~f ~er~, a~en~~,
and em~la~ees ~i~cl~~ing but r~o~ ~estricte~ to the po~ting ~f bon~ and release of
~~
att~c~m~nt~ fro~n and ag~~nst an~ and a11 ~la~ims in ~n~ v~ay arisin~ ou~ ~f or in
connectian ~ith the c~n~tru~ti~n, rep~ir, or ~ain~enan~e ~or~ undertaken
hereu~der by, ~D~~] U~' U~ ~~~1~1~ D~ L~~5S~~ D~ 1~5 SU~~~~5~~5, ~~' ~I'lSl~l~ D~~ ~~ ~I'
lIl CUt]I3~~t1~I~ ~~t~l ~~1~ ~~?~'~t14~~ ~~~~~C~ ~1I1(~~' ~~~ I~~~S~, inclu~ir~g but ~~~
re~fi~i~ted ~~ a~t~~hments, ~iens or Ievies, ~nd whe~ier ar no~ the ~~~im is
~.eritarious, ~~de, failed o~ ass~~t~d b~ ~n~ part~ ~~her ~har~ Le~se~ a.gainst the
~ity, it~~ludin~ xt~ off~c~r~, ~gents, and en~p~oyee~ ~r the Premise~ or
ir~provern~nt~ therean ar ~~rt ther~o~, or monie~ ~ a~i~~ to fh~ ~irpar~.
12.3. N~TI~E -- N~~~~~1St~~1C~ll1~ t~l~ ~~D"V~ 1~1{~~I17~]1~1C~~1~~]S, Le~see mu~t gi~e t~e
Aviation D~~e~tor notice ~f ~y ~nat~~~ co~rered ~er~by and fa~rard to ~e
A~ria~~or~ Dir~cto~ copte~ of e~ery de~mand, no~ice, s~mm~n~, ~r oth~r ~ro~es~
xec~~ve~ in ~n~ cl~im or legal ~~o~eeding cover~d hereb~ ~ithin 1~~v~rking d~.~s
of L~s~~e's recei~~ of sai~ ~oti~e, ~eman~, su~mon~, etc.
1~,4. IND~N~N~TY ~AIVE~ -- i~e~see, if a charitabX~ associ~t~~n, corpora~ion,
enti~~, or indi~idua~ enterp~ise ~iaving or ~lairrx~ng an i~munity or exemp~iar~
~statutory or a~her~i~e} fro~ ~nnd a.ga~~~~t liab~lit~ for d~ma~e o~ in~ur~ to ~r~per~~
or person~, hereb~ ~x~re~~l~ ~~~es its right ~a p~~~d defe~.si~el~ the ~mm~nit~ or
exem~~ion as aga~n~t ~he ~ity, lI]C~l1C~XIl~ 1~S ~~~1C~5, agents, ar emp~oyee~, a~ the
case ma~ be.
1~. IN~U~.A1~~E.
I~e~~ee n~ust pr~~ide insu~ance i~a the amount~ and ~pes o~ co~erage~ requi~ed b~r th~
C~t~'s Rtsk Manager, ~ C~~~ Df ~~1xC~] 15 ~~~~~l~C~ ~C~ 1I1~0I'~Q~~t~L~ ~.5 ~X1llblt "~"
~"In~uranc~ Requir~m~n~~"}. L~~~ee's insura~c~ co~pany~~e~~ ~nu~t ~ro~ide ~h.~ A~ia~ion
Dir~ct~r an~ t~~ Risk Ma~a~ger cert~~cate~~} of insurance thirty ~3 ~} d~.~~ priar to the
exptra~i~n date ~f the insurance c~~~rage, ~hi~h ~hows the level a~d t~pe a~ insuran~e~
Less~e' ~ insura~n~e car~pan~~~es~ ~u~~ pra~ide the A~ia~~a~ ~~rect~r thirty {3 ~~ da~s
v~ri~te~ ~o~~ce, by ~erti~e~ m~~l, prior to cancel~~tion, no~-renev~~~, or ~nateri~.l ~han~e in
t~e insurance po~i~y~ie~},
'~`he ~ity's ~i~l~ Manager n~a~ an~u~l~~ as~e~~ the ~e~e~ and ~~es of ~~surance required
b~ t~e Leas~. T~~ Risk Mar~~ger ~an increase a~ de~rease the ~e~el or types of insu~ra~n~e
~~r giv~~~ ~~~~~~ natice no less t~ar~ sixt~ ~~~} da~s pr~or ~o the ar~ual anniv~r~ary da~~
of the Ef~ecti~e Da~te af the ~~ase; h~~ve~er, ~u~~ incre~.se ar decrease of t~e ~e~e~ ~~ t~pe
of insura~~e must b~ ~ar~parabt~ ~vith, and r~o greater than, ~1~ ~YliIl11~1~~ ~~~~~5 4~' ~~~5 ~~
1~1S1~~1C~ ~~ ~t~l~~` ~~I]~I1~S ~V1~~1 S1I~1~~~` ~C~1Vlt~~~ O~l ~~1~ A1~10~~ Le~~ee ~as th~rt~ ~3 ~}
da~s to p~acure the ~han~ed xn~uran~e ~n~ pro~ide ~r~tten pro~~' of insur~nce ta the
~vi~tion I~irector.
,All insuran~e requ~red b~ th~s Le~se must b~ prin~ar~ insuranc~, and ~ot in ex~e~s o~ a~
con~ibu~in~ ~vith o~her ins~ar~ce ~vhi~h ~e Le~s~e ma~y carry. L1~~11I1~~ ~O~1G1~S ~1115~
nan~e ~it~ ~s an addit~onal insured or prope~~ re~ate~ ~o~icie~ sha11 name the ~it~ a~ lo~~
27
~a~ee. A blanket v~~~ve~ af subroga~t~~n i~ r~quired ~o~ ~vark~rs c~r~pensa~ion c~~era~e.
~'he Lesse~' ~~~~~rance polic~es as r~quire~ ~~ ~his Lease ~nu~t ap~I~ separately ~o ~~t~r,
~,S 1f 5~~`~~~ ~D~~C1~S ~.~C~ ~~~I] 1S~~1~C~ ~~ L~SS~~ ~I1€~ ~1~~.
The amounts o~' a11 req~~red ir~sura~ce ~olicies ~nust not be deemed a 1~mitat~on af
I~e~~~e'~ ~o~rena~t to ~ndemnify ~ie ~ity, and i~ L~~~e~ ar ~ity ~ecomes liable in a~
amoun~ i~. ~xce~s of the amou~t{s} af such po~icies, then the L~s~ee r~us~ ind~if~ the
Cit~ fron~ ~he ~v~o~e there~f, ~~cep~ in ~he e~~r~t o~ gra~~~y negl~~ence or v~i11f~1
rnisc~nduc~ on the part of ~~t~, its offi~e~~, ~gent~, ~r ~mp~o~ees.
14. N~'I'~~E,
~D~IC~S ~~ ~U~1C1~I7t 1~ lI7 ~I`1t1~~ ~Il~ S~~l~ ~l~ C~I'tl~f ~~ I11~1~, re#u~ r~ceip~ reque~~ed,
post~ge prepaid, or b~ overnight deli~er~ s~r~ice, or ~~ facsin~~Xe a~s addres~ed belo~:
If to ~i~.
A~iation Dire~t~r
~~I~l~~ ~~1~'1St1 ~~~I'I1~.~1~~]~~ ~lI"~]D~
~ ~~~ ~'lt~~I1~~~~~~.~ ~~1~~
~DI"~U~ ~~II~StI, Texa~ 784~~
ph: ~3G 1 } ~59-~171
fa~~ ~3~1} ZS9-~25~
Yft~ Les~ee:
~~;
fax:
Ifto ~ubles~ee:
~~~
.
fax.
~r to ~uch other addres~ ~~ ~na~ be designate~ in ~riting from t~~m~ ~o time.
All no~~ces ~ent b~ ~e~if~ed m~~l are deemed ~ece~ved on t~e third busine~s da~ afte~
mailing. All ~ao~ice~ sent b~ o~ernigh~ d~~~~er~ are de~r~ed re~ei~ed on ~he nex~ ~u~ir~ess
da~ ~.~ter being ~ent. A.I~ t1~t1~~5 ~~~1~ ~~ ~~C5111'll~~ ~~ C~~~IT1~C~ ~`~~~1~~(~ ~~1~ C~~.~ 5~~1~.
A~I~~ ~~.I'~~ II]~~ C~1~~~ 1~~ ~C~~I'~~S ~~ ~1V1I~~ f~~~1~~ ~0 ~I~ 0~~1~~' ~~~1~~ ~5 ~~~ OUt ~1~'~1~;
-~~. ~~~~~~~~~ ~~~~~~~~.
A~ us~d h~~e~r~, "Leaseha~d N~art~age" m~ans the rriortgage ar deed of ~ru~t cove~ing
Les~ee' ~ 1ea~eho~d x~~erest in thi~ ~ease given ~~ ~essee to a Lea~~k~o~d ll~~rtga~ee ~o
~8
se~~re ~epa~m~nt ~f funds ad~an~ed or to be ~dvar~ced by a~easehold M~~t~a~~ee to
~~s~ee to cans~~~ the on the Premi~e~ ~the "P~ra~ect"}. A~ u~ed
h~rein, '~Leaseha~d Mortgagee" rrie~s the rnark~agee or ~en~ficia~ u~~e~ the Le~sehold
N~~~tg~~e. As used he~~in,, '~n~ortga~e" ~ne~.n~ an~r mart~~.~e, deed of tru~~, or ather
indenture c~n~i~ting of a lYen ~n I~e~~ee's leaseha~d ir~t~rest created ~er~~n~er~ t~~~t~er
~it~ a prvmi~~ory note ~~ o~~ig~tian ~r b~nd ~~i~~ it seGUr~s~ ~~u~ j ect ~o the conditi~ns
~et farth herein~ Le~~ee rna~ martga~e ~t~ leasehald int~~e~t crea~e~ he~eur~der, ~alel~ for
the ~urp~~e af { 1} abtainin~ f~~ancing to canstru~t ~he Pr~j ect, ~n~Iuding an~ additional
co~s~ruction ar a~t~r~tion ~hereof r~~~~ ~ubsequen~ to ~e initial co~~~ructi~n, ~~~
r~~inanc~~g ~~ch c~nstructian n~o~tgage, and ~3} p~oviding ~inan~in~ i~ conne~t~~n v~ith
the assignm~t ar tr~,~f~r b~r I~e~see of ~t~ ~~terest in ~his ~ease and it~ leaseh~ld intere~t
created he~eunder, pra~id~~, ~ao~v~ver, tha~, ~i~h ~r~~pect t~ the fir~ancing ~escribed in
~~~~~es ~Z~ and ~3} abo~e, the prin~~pal an~oun~ of a~y ~uch rriartgage mus~ no~ be greate~
~hari the o~igir~~ principal amau~t of' the mort~age ~b~ained ~o ~on~~ruct the Pro j e~t,
inclu~in~ a~n~ addi~~o~~l ~o~~~ruction ar a~tera~tion thereof made ~ub~eq~ent ~o the initial
con~truc~~on and p~~vid~~:
a. SU~~11~]4~~~~~ 1~1 Il~ VL~~~ ~~~~~~5 D~' (~11711I~1~~1~~ ~1~~'s int~re~t in ~he Prern~~es} or
its rights u~der th~~ Agreem~nt, nor re~ie~re~ L~~~~e ~f an~ ~f ~t~ obligatiQns
~~~~Ut]L~~~`;
b. Under n~ cYrcun~~tance~ i~ ~it~' ~~easehold ~n~erest ~n th~ Premtses subord~~a~te to
such m.art~~~e;
c. ~~~~ ~ort~age c~~ers no int~re~ts in a~~ r~a~ p~~~~~ ot~er than Less~e' ~
leasehold interes~ i~ ~e Pr~mises hereunder; a~d
d. ~rie rr~aki~~ of s~ch a mort~a~e ~~r Les~ee ~vi~l not ~e de~med to ~onstitute an
a~~igr~ment ar trar~~fe~ of ~hi~ L~ase, ~or ~ill an~ rri~rt~~.g~e, as such, b~ deemed
an a~s~gr~ee ~r t~ansfer~e af th~~ ~.feas~.
e. Ri~ht~ o~' Leasehold Mort~~.gee~.
i. ND L~~S~~101~ M~~~~.~~ 1~ ~1~1~1I~~ II~QI] ~~1~ Clt~ 1~1 ~~.~ ~~~~~'~~I~1~I1t D~ 1~.~
1~~1t~ ~riC~ ~`~I~]~C~1~5 L~II(~~~ ~~ll~ IJE~S~ ~lC~ ~~ ~~'~V ~~'0~1(~~~, unl~~~, and
unti~, a capy th~~reof has been de~~vered to the A~i~t~on Di~ector.
i~. ~it~ Manager agrees ~~ e~e~ute an es~opp~1 certific~~e and any ~ther
s~~ilar d~curn~~ta~i~n a~~ ma~ reasona~~l~ be r~q~ired ~~ ~he Leasehol~
Mortgagee ~a as ta cer~ify to the status of ~h~~ L~a~e a~.d ~o ~he
perf~rmanc~ of t~e Le~~ee hereund~~ ~s ~f the da~e of such certi~ica~ian.
111, L~~~~~ S~]~~l ~I~~S~1 AV1~~10I1 I~1~~C~~~' ~ V~TI~~~1 I~~~~C~ ~~~ll~~ ~OI`~~l ~1~
nam~ a~d a~dress of an~ Leasehald Martg~gee.
~9
i~r, ~ ~f a Leasehold Mo~t~~gee or ~ur~ha.~er ~t farecl~~ure af t~e rnortgage
acqu~re~ the Les~ee's leas~~old int~res~ ir~ the Premises, b~ ~r~ue of ~he
d~f~u~t of t~~ I~e~see ~nder ~he ~ortgage or ather~v~se, ~h~s ~ea~~e v~il~
~ontin~~ ~n fu11 force and e~fec~ so lon~ ~s ~he L~easehol~ N~ortgagee or
purchas~~ ~t foreclosure is not in default her~un~er, i~clud~r~g the
obliga~tior~ to tin~el~ pa~ rent, ~or the period ~~ ~ime ~uri~g ~vh~ch the
Leaseh~Id Ma~tgagee a~r an~r purchaser at foreclosur~ of a~nortga~e hotds
~he Le~~ee's Iea~~eho~~ ir~t~~~s~ ~~ t~e Prer~~~es, the Lea~eh~~d ~~r~ga~ee
~r ~uch purch~ser bec~m~~ ~ia~le and full~ bo~d b~r the p~o~i~~~ns ~f ~his
~,ea~e.
~. ~ith respe~t to an~ Le~s~ho~d Ma~tga~ee a~ t~e Premi~~~, Cit~ a~r~es ~h~t
~1~ ~U~~~~Vl~l~ ~~]~~~.
~a,~ Yf request~~ b~ a L~aseh~ld ll~ortga~ee, v~ho ~s du~~ reg~stere~ in
~rritin~ wxth the Avi~tion ~irec~a~, an~ nat~c~ ~ro~n the ~i~y a~ffe~xing the
Pre~mises rnu~~ ~e simult~.neous~~ d~Ii~ered to the L~~~ee an~ ~~ch
~easehal~ ll~or~ga~e~ ~t its re~~tered add~e~~, and if so reg~stered, no
noti~e o~' d~fault or termina~~on of this Leas~ affectin~ th~ Prem~se~ ~i~ren
b~ the ~it~ shall be deemed lega~ly eff~ctive ~n~il a~ad t~nle~s ~~ke noti~e
has b~en gi~en b~ ~he A~riation ~irector t~ such ~~asehald ~Vlortgag~~.
~b} Any I~easeho~~ M~rtgag~e e~ti~led to ~~ch no~i~e s~iall ha.~e atl~
and ~1~ rights of the Le~see ~vith r~spec~ to the curing af an~ default
h~reunder ~~ the Les~~~.
~c} ~~t~ ~vi11 nat er~ter in~o an~ mate~ia~ m~di~i~ation af thi~ L~a~e
a~~~tin~ the P~emi~e~ w~thout th~ ~~or v~rit~e~ ~ansent there~o of ~~ch
L~a~eho~d 1V~ar~ga~ee ~ho be~arrie~ enti~~ed ta na~~~e as prav~~ed in thi~
~ectian 1~. '~I~he f~re~~in~ d~es not appl~r na~ ma~ ~e ~onstr«ed ~o app1Y
~~ ~~ right th~ ~it~ rri~y h~~e t~ ter~ir~ate ~~~s ~e~s~ ~~rsuant to it~
~erms. T~~ L~SS~~ 17111~~ ~~'~V1L~~ ~~ L~~S~~O~C~ 1VIOI'~~~~~~ ~Vl~ ~1Q~tC~ ~~
any prop~sed n~o~i~cati~n.
vi. If the ~it~ ~lect~ t~ ~erminate this L~ase f~r any defa~r~~~ b~ t~e ~es~ee ~~th
resp~ct to the Premi~~~, ~he Leasehold Mart~agee that has becor~e enti~~ed
to no~ice as provided in t~.~ Sec~ion h~as not on1~ ar~~ ~nd ~.~~ righ~s of ~he
Lessee v~~th respe~~ t~ ~urin~ af an~r default v~ith resp~ct t~ the Premise~,
b~t also the ~ig~it ta ~o~~pon~ a~d extend ~he specifie~ date, for a
max~~um ~f ninet~ ~9~} da~~, for the termination of t~ii~ Leas~ ~~eas~ho~d
IVlor~ga~e~' ~ I~ght t~ ~o~~por~e} in ~n~ notice o~ termin~tion b~ th~ ~it~ to
t~~ Les~e~ ~T~r~inat~~n Notice}, su~je~~ ~o the fal~~~ring condi~ion~:
~a} Th~ I~ea~ehold Mo~t~a~gee r~u~t g~ve the ~~ia~i~n Di~e~~or ~vri~.er~
notice of the exerc~se of the Leas~hold Il~~~tga~ee'~ ~~ght ta Po~tpone at
~ea~~ ~en ~ ~ ~} days p~~r ~a ~he da~~ ~f ter~min~~ion ~peci~i~d ~y the
30
Avi~tion ~irect~r in th~ ~'errnina~i~n l~~tice and simu~taneausl~ ~ay to the
~i~~ a11 amount~ req~ired t~ cure ~1~ de~~~ul~~ ther~ existing ~as of ~a~e af
th~ ~xerc~~e of Leasehold ll~ortgagee's Right ~o P~s~p~ne} ~r~ich n~a~r be
cured by the pa~e~t ~f a sun~ of mon~y.
~b} ~ie Leas~ho~d Mar~gagee mus~ p~.~ an~ ~ums ~r~d ch~rges ~hxc~
n~a~ b~ due and o~ving by th~ L~e~see and pr~~ptl~r undertal~e to ~u~re,
d~ligen~~~ prasecute, a~d, as ~~an as re~~onabl~ possib~e, ~omp~ete the
curing of ~ll def~ul~s of ~he Le~~~~ ~vith ~espect to the Premises ~h~~h a~e
~us~epti~le ~f b~ing cure~ ~~ the Le~s~ha1~ ~or~gage~.
~c} "~ie Leaseho~d Mo~t~age~'s exer~i~e of ~ts Right ~o Po~tpo~e ma~
extend the d~te for the ~~rrnination of thi~ Le~se ~pe~i~i~d in t~e
~`ermi~~tion No~ice far a n~aximurn Qf six ~~} rr~onths.
~~} ~f, ~~~4~'~ t~l~ i~~~~ ~~~C1~1~ ~0~' ~~~ ~~~`i~]ll~~tl0~l 0~ t~11~ ~-~~.5~ ~~
extended b~ a~ ~ea~sehold 1V~or~~a~ee' ~ exercis~ af ~~~ ~.ight t~ Pa~t~or~e,
the L~aseh~ld Mor~~agee has perf~rmed ~n~ obser~~d ~~ of Lessee's
covenar~ts ~d ~c~~di~ions under the Lease ~i~h respe~t to the Fre~ni~es ~nd
no ~urth~r defaults ~vith re~pect to ~he Pren~~se~ have occurred v~hich no~
ha~e been tir~~l~ ~ured, then, all de~aul~~ und~r this Lea.se ~ith resp~ct to
t~a~ Premi~e~ v~il~ ~e ~~emed to ~av~ been cured, a.~.d the ~i~~'s
T~1I~~~10~ ~4~1~~ 'UL~1~I ~l~ i~~~~ ~~ ~~~~ ~~~I~i ~1~~1C~~'~V~II,
~e} Nothir~~ herein ~nay b~ dee~ned to i~np~se ~~r ~bligation ar~ ~it~'s
part t~ deliver phy~ical possession of` the ~remi~es to a Lea~eha~d
Mortgagee.
~~ I~ m~re th~.n o~e ~ease~i~ld ll~o~g~~e~ seeks ~a ~x~~c~se a~y af the
rights pravide~ ~or in thi~ ~ect~on 15, th~ ~ost ~enior Ii~~ol~er i~
en~itled, a~s again~t th~ others, t~ exerc~~e such ri~t~, ~hauld a d~spu~e
ari~~ among Leasehold ll~ortgag~e~ re~ard~r~g th~ prior~t~ of lien, the
Leasehold M~rtg~ge~s m~st prove t~ the ~ati~fa~tian a~ ~he ~it~r ~ttorn~~
that ~ey ha~e ~~ttled ~ha~ di~p~te.
1G. ~~NERAL PR~~~~~~5.
16.1 ~u~era~ Ri~h~s. The ~~~~ e~pressly re~erve~ all ~uater, ~as, ~~1 ~nd minera~
I'~~l~S 1~ ~I]C~ ~1.1~~~' ~~1~ SDl~ ~?~Il~~~ ~~1~ P~'~I]71~~5.
1G.~ N~ ~aiv~r of ~'vrf~iture. ~n~ f~~ure or neglec~ o~ the ~~t~ Mana~e~ or Lessee
~~ an~ ~ime ta d~c~a~e a~ forfei~r~ af th.i~ ~,ease for a~ay ~reach ~~ ~ef~ult
~hatsoe~er here~der d~es nat ~va~~e the ~it~'~ ~g~t ~herea~ter to dec~are a
forfeiture far ~i~e, ath~r, or ~ucceedin~ b~~a~~h or ~efau~t.
31
1G.~ Force M~rjeure. ~ei~h~r ~~~~ nar L~ssee ~i11 be deerrx~d ~o be in bre~~~ ~f this
Lease if ~~ther is pre~e~ted ~ram perfarr~ing an~ o~ its abli~at~o~~ hereundez b~
re~sor~ of f~rce n~~je~re. Farce ~~jeure ~n~an~ ~~ preven~ion, delay, or ~top~age
due to ~trike~, Iocl~outs, ~a.bor dispute~, ~ct~ af ~~~, lI]C~U~lI~~ 1I1C~~I~1~I]~ V~~~~~~
andlo~ ~eriods of r~i~ or ~no~v~ ~~.ab~lit~r to obtain labar ar r~a.~~rials, or reasona~le
sub~ti~ut~s t~er~for, g~~re~rlmental r~striction~ ar req~irement~, ~~vernmenta~
~egula~t~o~s, govern~nenta~ c~nt~ol~~ in~bility ~o tim~ly obtain g~~ernm~r~tal
a~ppra~a~s, ene~~ or hosti~e g~vernment ~ction, ~i~i~ c~mmat~~n} ~ire vr other
~asu~lty, ar~~ ot~~r ~a.use~ ~e~on~ th.e ~easona~le contral Qf t~.e part~ o~li~at~d ~o
~e~'orm. All s~~h events excu~e ~ie perfarrn~~e b~ suc~. ~art~ far a peri~d equa~
~o an~ su~~ ~revention, dela~, ar ~t~pp~~~, includ~n.~ ~e oblig~~~on~ imposed ~i#~
re~ard to comrn~r~cem~nt ar p~~ment of rent~l and othe~ charges ~o ~~ ~~id b~
Le~see ~u~r~uan~ ta th~~ ~e~se an~ the ~bligatio~ ~~ ~it~ ~o deliv~r the ~remi~e~,
1G.~ ~uiet En~j~~ment. T~e ~i~y c~~ena~t~ that it has ~he autharit~ to execute thi~
L~ase, that at carm.~men~ement of the I~ease, ~~e ~ity ha~ ~ood title t~ t~e P~en~ises
and that ~~xo~ghou~ the term h~r~af, ~essee ~i11 ~ave peacefuX and ur~interrupted
po~~e~sion af ~he Premises ~ub j ec~ to i~s p~~ment of ~en~a.l~ ~nd ot~er ~~arges
~nd to its pe~`ormance a~' ~he covenan~~ of the i~e~se~ ~it~ a~ee~ to r~med~ an~
~~o~a~ton of ~uiet ~njo~men# c~.u~~d b~r ~ity an~ t~ honor Lessee's te~an~~ far
the term o~ the Lease.
1~.~ Rule~ and Regulation~. '~i~ 1~v~~txon ~irec~o~ n~~~ adopt ar~d enf~rce RuI~~ ~nd
Regula~ions, ~o be un~fo~~~ applied to similar uses ~nd us~rs af sin~ilar spa~e,
whi~~. Le~~ee agree~ ta ~bserve and ubey ~ith respect to the u~e af ~h~ ~r~mi~es
and the Airport, and the ~ae~lth, safety ~nd ~elfare of th~~e using the Pren~~se~ and
th~ Airp~rt.
1G.G ~e~dings. Th.e title~ ar~d hea~d~n~s in thi~ Lease are u~ed onl~ fo~ reference, and
in na v~a~ de~ine or ~~mi~ ~he ~c~~e vr intent af ~ pr~~s~on ~f the Lease.
1G.'] ~en.ue, ~enue af ar~~ a~ti~n ~~vught under th~~ Lea~e 1ie~ in Nuec~~ ~ounty,
T~xas, ex~l~~i~re~~, ~he~~ the Lease ~va~~ executed a~d will ~e p~rformed.
1 G.8 ~hoice a~ L~~. '~`his Le~se bind~ a~~ ~art~ v~h~ legall~ acqu~re~ an~ r~~ht~ ~r
1I~t~~~~~ ~I] ~~]1S ~~~~~ ~DII1 ~1~~ ~~` ~~SS~~. ~o~ve~er, Cl~~ ~~1~~~ ~1~~~ ~~ D~~1~~t10I1
t~ I~e~~ee'~ ~u~cessar u~le~~ ~he ~.~ht~ or inte~e~t~ of L~~~ee's suc~e~~or are
~c~ui~ed in acc~~rdan~e ~vith the terms of thi~ L~ase. 7`h~ la~~ of the ~tate i~
V~~]1~~1 ~~~ P~'~IY115~S 1S ~~C~~~ ~~l~I1 ~DV~'I] ~~115 L~~S~.
1d.9 ~orpo~~~e Authari~; Partner~hip Au~hor~ty. Ea~~ per~~n signin~ thi~ Lease
~n behalf of ~es~ee r~pre~e~ts and ~ar~~nt~ ~hat he ha~ fu1~ aut~orit~ ~~ do ~v ~nd
~I~t ~11~ L~~S~ ~]lI1C~S ~1~ ~Il~lt~, ~f requested by ~i~~, ~~th~n ~hirt~ ~~~} da~s after
~iis L~ase ~~ ~igned, L~~~e~ ~hal1 de~~ver t~ ~ity a certifie~ cvp~ of author~t~
und~r ~v~ich the ~~~s~ i~ ex~cu~~d ~r other eviden~e of ~uch autha~ty r~asona~Iy
a~c~p~able to Cit~.
32
1~.14 ~~~cuti~n of Le~~~~ ~~s ~ease ma~ ~e exe~ute~ in ~ounterparts ~~., ~vhen all
~oun~erpa~r~ documents ar~ executed, the coun~erpar~~ ~hal~ consti~t~ a s~ngl~
~~Il{~1~1~ lfl5~'L1I7l~Ilt. Ci~y's detiver~ af t~is Lea~e to ~e~~ee ~hal1 nat ~~ deeme~ ta
be an aff~r ~~ ~eas~ and shall nat b~ bx~~i~g ~~~n e~ther par~~ u~til executed and
del~~ered ~~ ~o~h pa~k~es.
1 G.11 ~u~vaY. All repre~entatians and v~arranties of ~it~ a~.d L~e~~ee sha~l sur~i~e ~ie
~~I'~]lll~~l~~ 0~ ~11~ ~~~~~.
16.1~ N~o Third Party Be~e~t. ~No ~ro~isi~n af this Lease ~reates a thir~ p~rt~ ~~atn~
a~ains~ t~e ~i~~ vf ~~rpus ~hr~~ti, the Airport, or L~ss~e, be~on~ that ~hic~ m~y
l~g~ll~ exi~t in t~e abse~.ce of ~n~ su~h pro~~~ian.
1~.~.~ ~'erms bv~ding an ~u~ce~sor~ ~nd a~sig~s, ,~1~ of t~e t~rrr~s, cover~~t~ and
agre~~~~s he~ein cantaine~ shall ~e b~nding up~n ar~d ~h~~l inure ~o the bene~i~
of ~he ~eirs, ~uc~e~~or~ ~nd a~s~igns of Les~ee an.d ~i~~.
1~.14 ~stoppe~, Both p~~~~ ~~ree that a~ any tin~e and from time to ti~ne ~t ~e~~~na~le
int~r~als, v~th~n ~~~en ~1~} day~ ~~~r ~~en reque~t ~y the other part~, such~
~~~ v~i~l ~xecu~e, a~~ov~~ed~e and deli~er to the party designated ~~ ~~e ather
par~~, ~ C~I~1~1C~~~ 1I] ~ ~0~'ITl ~S I~~~ ~`4II1 t1IY]~ ~0 t1ITl~ ~?~ ~~'O~l~~, c~rtify~in.g ~~e
f o~lov~in~, ~S ~V~~~ ~ ~.Il~ Q~~1~ ~TO~1S1~I1 X~~SD~I~~~~ ~`~L~~~~~L~ ~~ ~'1~ D~.1~~ ~~~:
~a} th~.t L~s~ee has ent~re~ ~~.~~ occ~panc~ ~f the Prer~i~e~ and the date of ~uch
entr~ if reque~ted; ~b} ~ia~ t~is Le~.s~ i~ ir~ fu~l force and effe~t, ~r~d ~as no~ ~een
~ssigned, II]0C~1~1~~, sup~~~~ented or a,r~ended ~r~ an~r ~vay ~ar if ~h~~~ ha~~ been
an~ as~~~nment, rnodi~~atiQn, sup~lement ~r an~endment~ identif~i~~ the s~me};
~c} that this Lea~e rep~e~en~~ the entire agr~ernent ~e~een ~it~ a~.d Le~see as to
t~e su~ j ect matter h~~e~f ~a~r if t~ere has bee~ a~y as~~gnment, ~no~~~ ~~tion}
supplement or ~men~ment, identif~in~ t~e same}; ~d} the date of ~ommen~~rnent
a~d expiratinn of ~he t~; ~~} ~ha~ al~ ~onditio~~ under ~hi~ Lease ta be ~erformed
by Cit~} if ~.n~, have been sa~is~~d ~and if na~, w~a~t cond~tians remair~
u~.~e~'armed}; ~f~ tha~ ta t~~ ~riov~rledge af th~ ~ign~~ ~f ~uch v~rit~n~ no default
exists in the ~~rformance ar a~~er~a~~e of any c~~enan~ ar ~or~dition in this Lease
a~d there are no th~n exis~~r~g ~efen~e~ ar off~et~ ~.~a~nst the enfor~e~ent of this
Lease ~y ~~ty vr ~pecif~ing each def~~~t, defen~e ~r o~~set o~ ~vhich the sig~a.~r
~a~y ~ia~e lcnov~le~~e; ~d ~~} ~he amoun~ o~ ~ent or ~ther rental ~~ ~~, that has
been paid x~ a~dvan~e and ~~e am.aunt ~f ~ecuri~~, i~ ~~, ~hat has been depo~~t~~
~1~~] ~lt~.
1~i.15 Taxes. Le~see r~u~t pa~~ al1 tax~s of w~~te~er character, i~c~ud~ng ~~ ~al~rem ar~d
int~.gi~le ~axe~, that ma~ be le~ied or char~e~ upan the Premi~e~, ~e~~ehold
Improveme~ts, o~ oper~ti~ns ~~reu~~er arid up~n Le~~~~'~ right~ to use the
Premi~es, ~vhe~her the taxe~ are assessed a~a~~~t ~es~ee or the Ci~y prior to the
past due da~~~ L~~~~~ ~l~St ~}~~ ~~ ~11~ ~~~ 5~1~5 t~~~ ~l~ll1~ 1~! ~0~1~~~1~~, ~~~1
~ts o~cupanc~ ~~ u~e o~ the Premise~ v~he~her t~ie taxes are asses~ed ag~ins~ Less~e
~~
~r ~he ~i~y. Le~~e~ ~~~t obtain and pa~ for a1~ 1~~ense~ or ~ermits nec~~~ar~ or
~~qu~re~ ~~ la~r fo~ the ca~~t~uctio~ of ~m~ro~~men~s, the instailation af
equipr~ent and f~rni~hi~.~s, ar~d a~ny other ~icen~es r~ece~sar~ for the conduct of it~
~peratio~~ hereunder. I#' Lessee v~~s~.e~ to cantes~ an~ such tax ar ch~rge, ~hat
contes~ ~ill nat b~ a d~~`~ul~ t~nder the, Lease so long as Lessee dil~~~~tl~
prosecute~ t~e con~e~t to c~nclu~ion and prom~t~~ pa~~ ~ha~ever t~.x i~ ~l~matel~
ow~d. Further, L~~see ~nust pa~ ~~~ ta~~s no~ bein~ ~on~este~ pr~~r ta ~he p~st
due date. .
1~.1G ~omplianc~ wit~ ~~ws, Lessee rr~ust promptl~r ~bser~r~, corript~ v~~t~, and
~~ecut~ the pr~vis~on~ af an~ ~d al~ pre~~n~ and fu~ur~ go~~r~men~a~ ~a~vs,
ardinances, rule~, regu~~.ti~n~, requirem~nts, QT[~~'~ ~1C~ €~i~'~Ct1DI~~. Fa~~ure to
~~serve ~r comp~~ ~ith the afo~re~~ntioned ~a~v~ v~il~ sub~e~t th~~ L~ase t~
~ancellation by the ~it~ un~er ~ecti~n 11 ~f #he Lease. I~~s~ee cove~.ant~ ~o
~om~l~r ~ri~h all applicable Feder~~ l~v~~, rul~s, a~d regul~tion~, inclu~ing v~ithout
~1~11~~t1UI1 ~'1~ I~~'~l~ F~~~ ~0~'~~~~~ AC~, t~e ~ia~~n~e in ~he ~orkplac~ ~ct, ~ie
AtYI~I`~C~.II~ ~V1t~] D1~~~11~1~1~5 AC~} ~d ~n~r other acts fhat the ~J.S. ~ongres~ pas~es
~hat applies t~ ~y er~ti~ ~ha~ o~erates at t~e ,~~rpart, all ~pplic~~le s~ate l~.~r~,
rule~, and regu~a~ion~, and ~11 a~~~l~cable ~~t~ ordin~~e~, and rules and
r~~L1~~t1D~lS ~]~'UI1111~~~~~ ~~ ~1~ AV1~~10I7 D1T~C~~~.
16.17 Se~erability. A {~~~~1]1~i~t10f~ ~]~ ~ CDII~ D~ ~~~l~J~~~~lt ~Ll~'1~i~1C~10~ ~~"1~,~ ~1~
pro~ision af this Lea.se ar at~~ ~art ~hereof is i1le~al a~ unenfor~eable ~ha11 not
~ance~ o~ ~nvalid~~e the remainder ~f such pro~i~~on or this Lea~e~ ~hich shall
~'~]~1~1 iI~ ~lll~ ~UTC~ ~I].C~ ~~~C~.
1~.18 Pu~I~cat~~n ~o~~s. L~~~~e agr~es ta pay t~e ~o~~~ of neu~spaper public~~~~n o~
thi~ ~ease and re~at~d ~rdir~~ce as r~quired ~~ ~he C~~~ ~h~rter,
[~~~NA.TURES ~~V ~11E~T PA~E]
34
r~~~~~ 1 U ~ ~~~T~
CI'~Y;
~
~N ~ITNE~ ~~H~R~~F, the par~~es ha~e execute~ th~s L~ase as ~f th~ da~~e ~i~st abo~e ~ritter~,
~it~ of ~orpus ~~xi~ti, a politic~l subd~v~~ion of ~he ~ta~e of Tex~.s
~eorge K. Noe
Cit~ Manager
Attes~~
A~and~ ~hapa, ~~t~ ~ec~etar~
~,F.fi~~.F:
a
Narne
Ti~~e
I]ate:
~~rpaz~tior~
Appraved as to Le~~~ ~orm on ,~DU7
By;
Eli~abeth I~undle~
Assistant ~it~ Att~~ey
~o~r ~it~ Att~rney
Date:
35
~ ~~ ~ ~
~~ ~.~ ~
~~~~
~ ~~'~
~ ~.
~~ ~~.~
~~ ~
. ~ '~ ~ ~r
~ ~
~~~,~
~~ ~ ~r..
~~~~ ~
~. ~ ~ ,~ ~ .
~ ~
~ ~ i'~
~ ~
~h ~
~ ~
~
~}
i M:~.~ /
~
~
~ ~
~
~ ~
~ ~~
~ ~
~
_~
~ ~ ~ ~
~ ~
~ ~y ~ ~
1
~~ ~.~ ~
~~~ ~~
~~ ~~
~ ~
~
~'"V~
~
~
*
~
~
.~
~ ~~ ~
~
~
~
~
~
*
~~~~~~~ i4~11
~~EIVII~E~
~
~
I
~
~
~
~
r
~
r
~
/
~
~~.
> ~
~1,
r
~
~
~
~
~y
P '
~~
yf
J l
.~
~'
~ ~
~ ~--Y, ~
~~~ ~
~
~
~ ~. ~
~
~
~
~
~ ~ ~
~ ~
~ ~
~
~
~
i ~, ~
1
~
,~
~ t
~~ Z~
~ ~
e~;~
~~~
1~
5~,~~
~~~
~
~ ~
~ ~ ,~
~
f +h~.
~4r !
~
~_
a ~~ ~ ;
~~i~,4
Y *1F i
~
~ ~ ~
~ ~ ~ .
~ ~ ~i
~
~ ~
~ ~ ~ ~
~ ~ ~
~
~ ~
~ ~
~
~
~
~
~
~• ~ '
.
~ ~ ~
~
~ ~
~.
~ ~
.~
~
.
~
~
~
~
~
~
~
~
~
~
~
~
~
~
3G
E~HIBIT "B„
LE~AL ~~S~RIPTI~N ~~' A~RP~1~T PR~~~~TY
~orpu~ ~hr~~ti Intern~ti~~~~ Airpart
ll~etes and ~ou~.~~ Descriptian
~ ofa
2,4~7.99 A.Cre T~aCt
De~~rip~ion far a~4~?.99 acre tract bei~g aut of ~~o~k ~3 of ~he J.~~ Ru~se11 Farm ~lo~l~s, a map of ~vh~ch is
rec~rded i~ ~olume 3, Pag~ S~ ofth~ Map R~card~ ofNu~~~s ~o~nty, Texas, ~hi~h is par~ o~ a 1~53.021 a~~e
tr~c# cor~~e~~d to ~h.e ~i~y of ~~rpu~ C~i~ti, being out of ~loc~s ~ 1, ~~, ~3 and the ~t~o A~l~e~ Tra~t o~th~
~~id ~.~. Ru~~e~l Farm B~Q~k~, ~or~ion~ af Lot~ ~, 7 a~d 1~ af the ll~argaret I~el~~ Lands, a n~ap of ~hich i~
r~c~~ded in V~lum~ S, Page 40 of t~e Ma,p Record~ ~~ Nu~~e~ ~~u~ty, t~o tra~t~ Qf la~.d out af Surwe~ 3~~,
Nuece~ ~au~a~y, ~'e~as ~onve~e~ t~ ~h~ ~i~~ of ~orpus ~hr~s~~, Te~a~ ~y J. L. S~og~n, recorded in ~Volutne 541,
Fa~~ ~~1 of th~ D~ed ~ecords ~f Nuece~ ~ount~, Tex~s ar~d ~vo ~r~~~~ of Iand ~ut af the Buckho~t Parti~ion
VL~~11C~1 ~'~ i~~~CI`l~l~€~ 1Il {~~~C~~ ~~CDI`C~~[~ 1Il ~~~U~1~ ~~~~~, Fa~e ~~ i and ~olu~~ ~~59, Pa~e 7~7 of the Dee~
Re~ord~ of Nue~e~ ~o~nty, Texas a~d ~eing mare p~tic~l~rl~r de~~r~b~~ ~~r rr~etes and bound~ as f~I~ov~s;
Be~i~ning a~ a 518 ~~ch iron r~d ~vith a~~p ~et 1 S~n~hes deep ~n ~he r~~rth r~ght-af ~vay line of Buckho~t ~vad,
for the North~ve~t ar~d begi~a.~~g corner of the ~ra~~ herein de~c~~ed and beari~g North ~8° 5$' ~ 1" East a
distance af ~4 feet.
Thence N~rth 27° ~ 9' 48" East and ~~.ra~~e~ ta ~he r~ght af`~va~ of ~tate ~iigh~va~ ~o. 44,1 ~~.04' feet, to a~~~
point for a c~rner of thx~ ~ra~~;
Tl~era~~e Nnrth ~G° ~ 7' ~4" ~a~t, 444. ~ b f~et, to a se~ poi~t for a carnez ~f ~ii~ tra~t;
Ther~~e l~arth 7~° 47' 27" East, 48Gi77 f~eti, ta a~e~ point for a ca~~r o~'~h~~ t~act;
The~~e Narth 7~~ 47' Z"~" East, 4$~~77 ~`ee~, ~o a~~t point for ~ corner af thi~ tra~~;
~'he~~e Narth S~° 47' ~7" East, 48~.77 fee~, to ~~et po~nt for ~ corner of thi~ t~a~~;
T`hence No~th S~° ~9' 1 G" Ea~t, 4~ 9.~5 feet, ta a. ~et point f~r a~orr~er af t~is tr~.ct;
'~'hence Narth 8~° 35' 46" East, 7,S~S.~O fe~t, to a~et p~int fa~ a corne~ of th~s ~ra~t;
Thence ~outh S~° ~0' Ob" E~st, 441.90 f~et, t~ a~ ~et point for ~ cor~~ oft~i~ tra~ct;
'~I~hence ~outh SO° ~ 5' S8" ~~s~, ~Ol .9~ fee~, to a. se~ poi~t f~r a~ corner of this ~r~ct;
Then~e Nor~h ~8° ~~' ~~" ~~st, 9G~.7~ feet, to a set paint ~o~ a corner ofthis ~ra~t;
Th~r~ce South 46° ~4' 1~4" ~ast, ~~~.9~ feet, to a s~t point f~r a c~rner of ~his tra~~;
'I`~ence ~or~h ~~° 4~' 3~" East, ~~~.01 ~ee~, ~o a set po~nt f~r a c~rner of ~his tra~t;
Then~~ l~~rth ~3 °~~' 46" East, ~~~ ~2~ ~eet, to a set ~oint for a carner ~f ~hi~ t~~ct;
~~
T`~ea~~e l~orth 88° 3~' 4~" Ea~t, ~6~.03 fee~, to ~ set p~in~ f~~ a c~rner ofthrs ~ra~t;
Thenc~ ~outh I° 42" East, 7471.~ 1 f~et, t~ a set po~r~~ for a~orne~ of ~his trac~;
T`~ence So~th ~~° 37' 4~" ~~~t, ~4~.~~ feet, t~ a~et point for a corner of thi~ ~ract;
~hence ~o~t~ ~° ~~' 4~" ~est, ~ 77;~49 fee~, ~0 ~ S~t ~]Olll~ ~~~ ~ ~~~1~~ D~ t~115 ~~C~;
~'hence ~o~th 8~° 1~' 0~" Ea~t, G4~ 87 ~~e~, ~~ ~ 5~t ~~ll1t ~~~ ~ C~~`x1~~' 0~ t~115 ~I"~Gt;
~'hence ~o~th 43 ° 11' ~~" East, ~~~~.97 feet, to a se~ ~ain~ for a corner of this bra~~t;
T`~ence due ~outh ~~2~.~ 1 fee~ to a concre~e n~onu~nen~ tn the ~au~~.east c~rner of ~~~ ~'ra~t ~, th~ ~Co~ieast
corn~r of T~~ct 4, ~n th~ ~Vest l~~a~ of 7'ra~t ~, said Mar~~xet ~ell~ I~and f~r the S~uthea~t caz~e~ of`this trac~;
~`hence due ~e~t, ~lt~ t~l~ N0~`~11111~ ~~ ~~.1C~ T~~C~ ~, ~ dis~~n~e ~f ~,~96.89 feet to a SIS" iror~ ro~ far a~orne~
ofthi~ ~ract;
~`~aence due Narkh, ~~th a line t~~t is ~,~9G,~9 f~et ~vest af ar~d pa~alle~ to the east ~~ne ~f said Tract 5, ~. di~~ance
~f ~,2~~.9~ feet ~o a~IS in~h i~on ro~ in the ~a~th ~in.e of ~'r~c~ ~, ~aid ll~argare~ Ke~l~ ~and fa~ a c~rner of t~f~
trac~;
T~enc~ due ~~~~, ~~th ~ie ~ar~h ~ine ~f said Tract ~, a di~ta~ce of 3,591.~~ ~~~~ ~~ ~ iI21~1C~11~'OI1 ~1~~ ~~t 1~1 ~.1~
~~5~ ~1~1~ ~~i~V~.~ ~II~~ 0~,~0~ N~1~~U~` Rp~C~ ~S~t~ Hl~~~.~ N~, 7~~} for a c~rner ofsaid Tra~t 7, ~he northv~~~~
corner ~f sa~d Tr~~~ 5, bears due ~e~t 40.4~ feet~
Thenc~ ~outh 0° 25° 5~" ~est 1,~5 ~.~ 7 f~et ~est right of v~a~ ~ine of Joe ~Iireur ~oad ~~tate High~va~ No.
7~~} ar~d ~i~h a li~e that ~~ 4 i.~7 feet ~v~st af a~d parallel to ~he la~t li~e of said Tra~~ S;
'~er~ce Nar~ 8S° ~~' ~~" ~est,1788.7~ fe~t, to a~et point far ~ corner ~fthis tract;
Th~n~e North ~° ~~' ~~" E~st,144~.1~ ~e~t, to a set point fo~r a~ corner ~f thi~ ~~.ct;
Th~n~e ~~ut~ $S° ~2' 1~" East, ~ 7SS.7~ feet, to a set ~~ir~t ~or a~orner o~ t~i~ tract~
Th~nce North ~° ~~' S0" ~~~t, ~ ~ ~~.2~ feet, ~?~ll~~ 0~ ~~1~ C~~1~~~ 11~~ ~~ ~~~ III~1~'~U~ RQ~~ ~~~~~~ ~1~1~V~~ ~~~~;
Then~e North. ~~ °~ 1' 1~" ~est, ~ 14~.71 ~ee~, being o~ ~he center line of Joe Nlireur Road ~~t~.~e Highv~a~
7~3~;
'I~ence Nor~i 0° ~5' ~~" ~ast, 58~.0 fe~t, to ~~et pain~ for a~orner of this tr~~t;
Thence ~or~h 43° ~ 1' l0" ~e~t, 4~5.G~ feet, t~ a~et pai~.t far a corner of ~hi~ ~rac~;
~'hence Sa~th S S° ~ 7' ~e~t, 3~~ 1,4 fee~, alon~ the cen~er lir~e of Mc~lai~ Roa~;
Thence North ~° 4~' ~~" ~es~, 3 7~7.4~ ~ee~, ta a~e~ ~aint ~or a c~rne~ of ~i~ tract;
Thenc~ ~ou~ 8S° 1 S' ~e~t, ~0~.7~ f~e~, ta a se~ ~oin~ fvr a~orner of ~hi~ tract;
Th.e~c~ ~o~th 1° 5 5' East} 1~3 3.4 fe~t, ~o a set point for ~ c~rner o~ thi~ tract~
38
T~ence ~ou~h S9° ~2' ~est, ~3~5.~7 feet, t0 ~ ~~~ ~JD1Ilt ~~~ ~ C~I'Il~~' 0~ t~ll~ ~T'~~t;
Th~nce N~~h 1° 3~' ~~"'~'e~t, 3~~~37 fee~, alon~ the center li~~ ~f Buck~ol~ ~~ad to a set p~in~ ~or a~ corner of
~his ~r~ct;
Thence i~ ~he N~rth~~s~er1~ direct~on al~ng the c~~ter Iin~ af Buckholt Road and v~~t~ t~e arc af a~urve who~e
cen~ral a~ngle i~ S° 55' ~a", v~~ose radiu~ x~ 1,145.~~ f~et ~nd a length o~ 175.3~ feet, to a~e~ poir~~ far a~orner
~~ ~]i~ ~'~~~;
~'hen~e N~~ 1~° 33' 0~" ~est, ~71.~~ feet alang cen~er line of Buckho~t Ro~d, to a s~t point for a~orner a~
this ~ra~~t;
Thenc~ in the Nor~h~v~~terl~ dire~tton a1an~ the center 1~n~ of Buckholt Road and ~vi~ ~ie arc ~f ~. ~urve whose
ce~t~~~ angle ~~ 8° ~1' ~~", ~~~se r~diu~ ~s 1,145.~2 feet and a length of 1?6.9~ ~eet, to a set po~nt for a~orn~r
~f ~his tra~~~;
'Thence ~ort~i 1° 4~' ~e~t, 3~~4.0 ~ feet alan~ ~~r~ter line o~ Buckh~~t ~o~.~ ~~ the p~xnt af ~egirira~ng and
~ontainin~ ~,~~7~9~ f~et acres ofland, r~.ore or ~~ss.
~9
E~~BIT "~"
PLANS ~~~ ~PE~IF~~ATI~I~~
40
-
~ • ~
~~H~B~T "D"
AIR~R~FT ~F~~ATrNC AR~A
~~~~~~
i~f'~
4,~`
k /~/~ ~/~1
~
~
pv.
~
~n`. ~ Y!! '~~Y RTM~
}k
~~
~..
} ~ ~~
o y~f'3.
~.5.
~~~.
~~~p:,
~
y~t.
~;jf'
[~
~'~3~'
~ ~'y~ ..
'
{y {~y~
~~[ ~ 1RI~15
i
d.
Kjx
~WM.
~
* ~
A ~
~~ }
fA
~ ~
~ ~
L
A~ ~ . ~.
~ ~
~ r~ •
~ ~
~ ~
~~
,~ ~ ~
# }'
•+
'~
~ {
r.
-
x r ~
~ ~
fi ~
f
4
~ y' ~' ff` y '7
r~ " ~ ~~
,~~~ ,~
~
~
~ r '
~
r' •~ ;
~~fif~
i
~
~ 3.
.
r
2~y 't''~~~~ e"
~ ~ f~ ~~ ~
~o-
~ ~
?
~'~f ~ ,~ '~
:
.~r
~
~ p,,
~l '9 ~ ~'
``
~~of ~! ~ ~ ` I
~
~ ~~A ~ ~
~
o' ~ ~ ~ ~~dAi ~
+ ~ ~
I
~
~ ~¢ ~ a~
~~~L
~~ '
~
~ /
~ ~tf~'ir'..s' ff j`f
~
+ !
~ I ~
~
'~
~ ~ ~~ ~
{{ ~'
~a~
~~ I
I
. rj
?~ i '
t
s ~~ ~ ~~: i ~<" ,.
f{ 'r, "
~~ ~#4~+~}~F ! fr ~~{r~~
' ,
J ~
i II
F!! ^]
R ~I
~ ./ ~
~ ` ~1 '7Y
~ ~ +r,
' ~ F~} ~ ~~ r
'~ ' ~
~~~~ ~ ~ f Y
+ I
~~
~ ~~ ~+f ~. 4` {
~ ~ ~ ~ a~~
~ i ~ ~ ~i' r ~'
f +
~
;~~
•~
~~
At
~ ~
~ ~
~
'
~
~
5-
~
.~ ~
f ;~
t;
:~
f~. {
~1 I ~
~~
•
~~~ ~
~ 4~ Jh
~ ~
~ ~ ~
~
~~
~ ~ ~
j
i ~
~ ~
' ~ ' . ~ ~
~
~'~'. ~
~ ~ ~
~ ~
f
~ „
~~T~ '~ {
~~~ r~
~~~+
~
~• '
~
k
~~
~ ~ ~
~ ~~+ ~
~
I
I
~ ~
~ ~ ~ ~
~~
~ I
}!
i
~
~~~~~~ ~ ~`~
~~
~
~ ~ ~
te
E
~
..
'
"
~ 5~ ~
,
';r
,
Y","r<:. ;,g:
~`. ~Y ~'~ f .~~
a. .~
...~~:. ~~C~~ME~T ~A ~'~. ~
,
.
~yk `
~.iL~<~'ki~~ J" :~ "'aSh
.bo~.. <'a .H... a t.a§>~
'r~vi'`rr~~<~94'~
~
}
~
~~Y•li~~~
~~
.
~ ` !
~~T ~~~:Mt~~
M~~.
~. i
}
1
4 1
~* ~
. ~
~ 1
~
:~
~1Y• ~
#YM L~IYlT ~
~~
~~~ ~~~~~~~~~~~~~~T ~~
~~~~.~~ ~~~~ ~~~~~~~~ ~~~~
~~~~~ ~~~~~, ~
41
li!].11JJ~~~ Li~'1'1
INSU~AN~E RE U~~E~~NT~
{Upon ~ompletio~ of c~nsh~ucti~~}
I. L~~~ee Liab~l~t Insurance
A. ~~~~~~ ~IIUS~ I~O~ C~t]ll71~~1C~ ~V~~~ UIl[~EI' ~11~ ~~~~]1~~~ lil~~~~ ~~~ 1I~SU~'~1~~~ ~'~Lll~~ ~1~~`~1~1 1S U~~~1I7~
and such z~~urance approved b~ ~he ~~~y. Lessee ~u~t not a~1~~ a~~r ~~bcon~ra~~or ~a com.r~en~e ~ork
UI~t~~ ~.~~ 51tI11~~.1" 1~~U~'c~I]C~ ~'~qUl~~C~ ~~ ~l~ SL1~1C~~1~'~C~O~ ~1~.~ ~~~I] ~~t~ll1~(~.
~. ~~~~~~ ~1~15~ ~L1I'r11~~ ~D t~l~ ~1~'5 ~1~~ ~~l~~~I, ~V~ ~~~ C0~1~~ 0~ ~~~1~1C~t~~ ~~ II]SUI'~Il~~, ~~OV~IIl~ ~1~
~p~l~V~lI1~ I~llllt]1UI]] ~O~~X~~~ ~}~ 1~1SU~'~~~ CQII"1~~11~~~~ ~C~~~~~~I~ tD ~~1~ ~1~~' 5 ~1~~ ~~~~~I". ~.1~ ~1~~
~nu~t ~e named a~ ~n ad~itional ~~~ure~ for t~~ Ceneral Liabit~~~r pol~c~ ~d a~lanl~e~ ~va~ver of
~~~~~~~t~~~ ~~ ~~~~~~~~ ~~ ~~~ ~~~i~~~~~~ ~~~~~~~~~
TYPE ~~' I1V~URAN~~ ~~IMUM ~S~J1~AN~~ ~~~El~~~
~U-d~y ~vritten not~~e of cancell~tia~, ~ermin~t~on, B~dily In~~ry and Pr~p~~ Dannage
non-ren~~~l ~r material ch~~~e is ~equired on all Per oc~urrenc~ I a~~regate
~e~rttif~c~~es
~a~nmerc~~l ~e~eral Li~bility 5 D0~ ~0~ ~o~nb~~e~ Sin ~e Lir~i~
~ . ~ommer~ial Br~~.d Form
~, ~lI'~OI'~ ~~~~111~~5 L1~~]1~1~
3. Prod~c~sl Con~plete~ ~perati~ns Ha.~~rd
~, ~OI~t1'~~~~~ ~l~~t~l~~
~i i.Al~~~~~~~ 4f~~~WV~1f~
1
~. Broad Form ~roperty Dan~a~e
7. Per~analln'u ~
Han~~r I~eeper~ L~ga~ ~iab~lity ta iu~clude $1,~0~,0~~ ~~~.1~1I]~C~ ~1~"1~~~ ~l~rilt ~~T ~~CU~'~~1~~
~ . ~lT~~~ ~T1I~ ~I~~1~1~ ~~,~~~,~~~ ~01Y1~II~~C~ ~lll ~ ~lll~~~ ~ ~ ~~~
~OA~~W~~~ ~1~'CT~~~ ~l~~llil~ t0 lIl~~L~~~ ~~,~~~,~Q~ ~Q~1~]lI]~C~ ~II~.~~~ ~l~l~il~
~o~erage for roto~ and ~otar Ix~~~lity ~~tatianer~ and
v~hile in fli t
Pro~erty ~~ver~ge ta ~o~re~ ~m~rovernent~ ar~d ~ ~mount ~a co~er ~alu~ af t~e ~uilding
Bette~n~r~t~ to buildin
~uto~m~bile Li~bilit~ to tn~lu~e ~ov~ra~e ~o~r $1,~~~,0~~ ~an~btne~ Single Li~n~~
a~ned, nor~~o~vne~ or re~~ed ~ehicles
~i~h ~n~ Iies wi~h t~e Tex~s V~~rkers
~ar~er~' ~ompe~ns~tion ~~~npens~ti~r~ A~t
Employers L~abi~ty ~~~~,~~0
C. ~n t~e e~en~ ~f a~~~idents of a~y l~ir~d, Lessee m~st furn~~h t~e Risk ll~an~ger ~v~th copie~ af ~~~ reports
v~i~hin ~~~} ten days of ~~r accident.
~~~7 Airpo~ lease ~~th ~ubl~ase to U~ ~~ast Cu~rd in~. req.
7-1 G-~7 ~p ~~~k ll~gmt.
~~
II. ADD~TI~~AL RE~[J~EMENT~
A. L~ssee must o~~~~~ worker~' ~ompen~~tian ~a~era~~ through ~ lic~nsed in~urance ~o~npan~ ~~
~~c~rdance ~vith Texa~ ~a~r~ The ~~ntract f~r c~~vera~e ~t~st b~ v~ritten on a pa~ic~ and ~r~~h
en~arse~~nt~ ~ppro~e~ b~ the ~'~xas ~ep~rt~nent af ~n~urance, 'The co~erage p~ro~~ded m.u~t ~~ in
ar~~t~nts suff~~~en~ ~o ass~~ th~t a11 ~v~rker~' car~~ensatiar~ obli~ations incu~ed b~ t~e Suc~~~sfu1
Bidder w~~l be prompt~y me~.
B. ~er~i~cate of In~urance.
* ~'he ~ity of ~orpus ~hri~ti mu~~ ~e ~am~d a~ ~ ~dditian~~ ~~ured on the ~eneral Li~.bit~~~ co~erag~
and a b~~nket w~ive~ of subra~~tion is r~qutred on all a~p~icable ~o~i~ies~
~` If y~ur i~~uran~e con~~ar~~ u~e~ ~~e ~tandar~ A~ORD fa~tn, ~he c~nc~llatian ciause ~bottom ri~h~} mu~t
~ ~e amended b~ addir~~ the v~ording "changed or" ~et~e~n "b~" and "ca~~eled", and delet~r~g the ~vords,
"en~eavor ~~", and de~eting th~ ~rordin~ ~.~er "lef~}'. IIl Il~~l ~~ I110~1~C~.~lO~l 0~ ~~7~ A~~R~ ~DI'11~,
~~~~'~~~ ~Q1~~~ ~~1C~O~S~111~~t~ ~C~C~T~5S1~1~ t~l~ S~.I7l~ ~l~~S~~Iltt~~ ~~q111I'~]~~l~S ~~ ~1~lC~~tQI`~.
'~ The ~aine of t~e pr~ject ~nu~~ ~e ~is~~d under "~e~criptior~ a~ ~per~~~on~"
'~ At ~ r~inimu~, a 34-da~ wrltten not~c~ of canc~lla.~ion, ~a.t~ial ~~ange, no~-~enev~al, ~~I'~i]1~1~~~D~1 1S
i
requlr .
~. If the ~~i~ica~e o~ In~urance a~ i~~ face does not sho~r the e~~~ten~e of the co~~r~ge require~ b~ i~er~~
~.B ~1 }'~7}, an auth~ri~ed repre~ent~.t~~ve af the in~urance c~mpan~ mu~t ir~~l~ude a~et~er spec~f~cally
stating ~vhe~her ~tems 1.8. ~1}-~7~ are in~lude~i ~r ex~lu~ded.
ZQ~7 Airpor~ ~ease ~vit~ ~u~~e~se ~o U~ ~oas~ ~u~rd ins re~~
7-1 ~-~7ep Ri~~C Mg~~
43
~S~JRAN~~ ~E~~JIRE~~~TS
~Far ~o~~t~uctio~ Phas~}
~, . ~OII~~~~~~'' S Ll~~]111~ II1SU~~~~
A, ~`he ~ontr~~t~r rr~u~t r~ot commence ~vork ~nder ~his agreeme~.t ~ntil ~11 ~nsurance re~uired ~~ze~n has
bee~ obtained a~d s~ch insur~~e has b~en a~pprove~ ~~ the ~it~. ~.ie ~ontr~~tor ~nust not a~lo~v ar~y
su~~ant~~ctar ~o cornme~nce ~~rk ur~~il ail simil~x ~~~urance required Qf t~e ~ubcantractor ha~ b~er~ sa
ob~a~r~e~.
B. ~'he ~on~ractar must furn~sh ta t~e ~ity' ~ Ris~ Manager, ~~0~1~~ Of ~~~1~1C~~~S ~~ ~1~U~'~1C~, ~V~t~7 t~l~
~1~~ I~~I~1~~ ~S ~I] ~~(~1~IU~~ 1~1SL1I'~(~ ~0~' ~~ 11~~11~1~~ ~4~1C1~5, a~.~ ~ blanket v~ai~er of s~bragation is
T~1~1~~C~ DIl ~I~ ~~1~~1C~~~~ ~O~1C1~~, ~~~~V1I~~ t~~ ~~~~O~lI1~ IT11~1~]U~YI COV~~'~~~ ~7~ 1I~~U1'~I]C~ COI~~~I1~~5~
ac~eptable ta t~~ ~ity's Risk ~ianage~.
T'~PE ~F I~1~L~1~~E NIINIIVIUN~ INS~I~AN~~ ~~~R~~~
30-Day written n~t~c~ of c~ncellati~n., maEer~al ~od~l~ In~jur~r and Prop~~ Dam~ge
c~~~ge, non-re~ev~al or terrn~nati~n requ~r~d ~n
all certi~c~tes
~~MN~~~~IAL C~~IERAL LIAB~I~~TY $~,~~0,4~~ ~om~ined ~~n~le Lx~mi~
1~.C~l~~l~l~.
~ , ~Ul~l.t~l~'~1~~ ~~~`II]
~ ~ ~~'~1~~~ - ~~T~~l.OI]~
~. ~r~du~tsl ~am~leted ~pe~~tion~ ~azard
4. ~on~ra~tualI~iab~~it~
5. Broad Form Properky Damage
6. Indepen~ent ~~ntractar~
~~ r~~~~~~i r~~~ .
AUT~II~~B7~E LIABIL~T~----~~]VN~D, N~N- ~ 1,0~~,~00 ~on~bine~ ~ingl~ Lin~it
~~C~~ ~R REI~~'ED
~~RKER~ ~~1VIPE~I~A~'~~N IN~URA~NC~ ~iich ~om~lxe~ v~ith the ~'exas ~Vorke~~'
~D~1 ~I1~~~1~I1 ~Ct ~C~ ~'~ ~ ~l ~~ ~~ ~1~ ~~~11~1t
~~~~,~~~
EI~iPL~Y~R~ ~IABILITY TI~~URA~~~
B~~LDERS RIS~ In $_amoun~ of constru~t~on
1, .All Ri~k Far~
~. I~ ~ie ~ven~ af a~ccident~ of ~n~ kind, the ~o~~ractor mu~t furni~h th~ R~sk Nlana~er ~v~th cop~e~ of a~1
~~4~5 0~ ~I1~ ~C~1C~~I]~ ~1f~~I~ ~~~ ~ ~ ~~ (~~~~ ~~ ~~1~ ~CC1(~~~.t~
-44-
~~, ~DD~~'I~NAL R.~~UIREMENTS
A. Th~ ~~n~rac~o~r mus~ o~tai~. ~vorl~ers' ca~n~en~atian co~rer~ge through a l~cen~ed ~n~ura~~e ca~pa~~
~btaine~ i~ ~~cordan~e v~r~i~~ ~'e~as la~~v~ T~ie con~ra~ct ~'o~ c~~~rage must b~ v~rttt~n an ~~olicy a~.d ~vith
~ndo~~ement~ app~ro~red b~ the ~'e~as D~artr~~~t af In~u~~.a~e~ T~1~ C~'~~~'~~~ ~~~VIC~~C~ ~U~~ ~~ l~l ~Il
~maunt suffi~~~nt to as~u~r~ tha~ al~ v~ar~er~' compe~a~ation o~li~at~on~ inc~e~ by the ~or~trac~or ~r~ll be
prorriptl~r ~net.
B. ~erkifi~~te of Insura~~e;
~ ~'h~ ~ity of ~o~pu~~ ~hrist~ r~~s~ be nam~d as an add~t~onal ~~ur~d on th~ l~~bility c~verag~
and a b~a~.k~~ v~ai~~r af ~u~rogat~an i~ ~equired o~ ~.11 ~pplicable po~icies.
~ ~f ~our ir~suran~e ~or~p~y u~e~ the ~~~ndard A~~~D forn~., the canc~~l~t~an cl~u~e ~b~tt~r~
1~~,~~ ~l,l~f ~~ $~~~II~~C~ ~7~ ~L~(~~1~~ ~~ VL~UrC~~t]~ ccC~l~~~C~ 0~" ~~~V~~I] "~~" ~(~ "C~lC~1~C~~'y ~1C~
C~~~~~1~'1~ t~~ ~VO~(~S~ cc~I1C~~~.V~~ ~0"~ ~.11C~ C~~~~t1Il~ ~~ ~0~(~~I1~ ~~~~' "~~~". II] ~1~U ~~ I~~C~1~1~~tla~
af ~he A~~RD form, sepa~~.~e p~~ic~ endarsement~ addressin~ the ~~me Sll~]S~~t]t1V~
re~uiren~~nt~ are ~nand~~ary, .
'~ The narrxe ~f th~ pro~e~~ mu~t be Iiste~ under "Descript~~n of ~peration~"
~ At a min~~num, a 3~-d~y ~vritten ~oti~e ~f ~a~terial cha~~e, non-~~ne~val, ~ern~.~n~ti~n or
cancel~at~on is re~utred.
~. ~f the ~erti~ca~t~ of ~n~uranc~ ar~ i~s face does nat shov~ the e~i~ten~~ of t~e ~ov~~a~e requi~ed by
items l.B ~1}-~7}, ~ ~lt~~lOI'IZ~ ~~~~'~~~I]t~tl~~ Q~ ~7~ 1I~~U~'~.t1C~ ~Ol~l~~t]~ 3~]L15~ ~~1C~llC~~ ~ ~~~~~
~peci~c~ll~ ~tating ~h~the~ items ~ .B. ~~ }-~7} are i~acluded ar excl~~ed.
~~d7 Airport l~ase - buiXd o~t contra~tox~ ~ns. req.
7-1 ~W~7 ep Ri~~ ~gmt.
_~~_