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AMENDMENT NUMBER TWO TO LEASE OF AIRPORT <br />PROPERTY BETWEEN OFFICERS CLUB AV SAN MARCOS #1, LP <br />AND THE CITY OF SAN MARCOS <br />STATE OF TEXAS <br />COUNTIES OF HAYS AND CALDWELL <br />The City of San Marcos, Texas, a Texas municipal corporation (the "City"), and <br />Officers Club AV San Marcos #1, LP (the "Lessee"), agree to amend their lease agreement <br />(the "Lease") entered into on April 29, 2005, related to a tract of property at the San <br />Marcos Municipal Airport in Caldwell County, Texas. <br />The Lessee has requested that the Lease be amended to allow business activities <br />other than hangar rental. Lessee wishes to sublease to other aircraft service businesses. <br />The City is willing to amend the Lease to permit this under the terms and conditions of this <br />amendment. <br />Inconsideration of the mutual covenants contained in this amendment, the City and <br />the Lessee agree to amend the Lease as follows: <br />1. Article 3.01 of the Lease is amended to read as follows: <br />3.01. The use of the Leased Premises by the Lessee shall be restricted to aviation <br />purposes, unless otherwise approved in writing by the City. Specifically, the Leased <br />Premises shall be used and occupied for the businesses of operating an aviation office, <br />hangar rental, aircraft maintenance and inspections, and other aircraft service or aviation <br />related businesses and for no other purposes without the advance written consent of the <br />City. The Lessee shall use the Leased Premises in good faith continuously for this <br />purpose throughout the term of this Lease. The Lessee shall not leave the Leased <br />Premises vacant at any time, and shall keep the Leased Premises open to the public for <br />business during normal business hours. <br />2. In all other respects, except as modified in this amendment, all of the terms and <br />provisions of the Lease, including those related to maintenance responsibilities, insurance <br />and indemnification, default and termination, shall remain in full force and effect as to all of <br />the Leased Premises. This amendment does not amend the term of the Lease. <br />EXECUTED on December 12 , 2007. <br />LESSOR: <br />City Of San Marcos <br />