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ARTICLE 4: CONSTRUCTION OF FACILTTIES• ALTERATIONS AND FIXTURES <br />4.01. Lessee, at its sole cost and expense, shall provide for the installation of a _4,032 square foot <br />modular building, as depicted and described in the attached Exhibit B, on the Leased Premises for <br />the purpose of carrying out the activities provided for herein. The installation shall be accordance <br />with the City of San Marcos approved permit. The plans and the time schedule must be approved <br />by Lessor and Airport Manager prior to the commencement of installation. <br />4.02. The facility installed on the Leased Premises will include _walkways from the building to the <br />parking lot and landscapin_, as shown generally on the site plan, in the area outlined in yellow <br />on Exhibit B , attached hereto, and incorporated herein for reference for all purposes. Lessee <br />agrees to use airport -approved colors for the exterior of the building. Upon completion of the term <br />of this Lease, title to all improvements shall vest in Lessor. <br />4.03. Lessee may not undertake or allow any party to undertake any kind of alteration, erection, <br />improvement or other construction work on or to the Leased Premises unless it submits a request <br />to the FAA and receives, in writing, approval from the FAA. Such request should be submitted <br />prior to the commencement of such construction/alteration on FAA Form 7460-1, Notice of <br />Proposed Construction of Alteration, or such other form as may be required by the FAA, through <br />the Airport Manager of San Marcos Regional Airport. <br />4.04. The Lessee shall substantially begin the construction of the hangar/facility within ninety (90) days <br />of the execution of this Lease. Lessee shall diligently and continuously pursue the construction to <br />completion, and shall fully complete the hangar/facility within two (2) months of the date of <br />issuance of a building permit. Any delay or lack of progress in the construction will constitute a <br />default by the Lessee, and will authorize the Lessor to pursue all remedies available to it as <br />described in Article 15 of this Lease. <br />4.05. Lessee shall not make any further alterations, additions, or improvements to the Leased Premises <br />without the prior written consent of Lessor. <br />4.06. If Lessee chooses to make discretionary improvements or any modifications mandated by County <br />or Municipal code, state law, or federal law, all plans and specifications must receive the written, <br />prior approval of Lessor, which approval shall not be unreasonably withheld. All discretionary <br />improvements, and/or modifications mandated by County or municipal Code, state law, or federal <br />law and any other facilities (including landscaping) shall be constructed in accordance with plans <br />and specifications approved by the Airport Manager, and shall be subject to inspection. No <br />construction, modification or installation may be undertaken until written approval is obtained. All <br />plans, specifications and work shall conform to all local, state and federal rules, regulations, and <br />laws, now in force or hereafter prescribed. Notwithstanding the permissive nature of Lessee's <br />discretionary improvements, and/or modifications, Lessee agrees to make all discretionary <br />improvements, modifications, and/or alterations necessary to make the premises comply with all <br />applicable provisions of the Americans With Disabilities Act of 1990, as amended; any <br />Page 6 of 21 <br />