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CITY OF SAN MARCOS, TEXAS <br />SAN MARCOS REGIONAL AIRPORT <br />COMMERCIAL AVIATION GROUND LEASE AGREEMENT <br />THIS COMMERCIAL AVIATION GROUND LEASE AGREEMENT ("Lease") is made <br />between the City of San Marcos, a municipal corporation of the State of Texas ("Lessor" or "City"), and <br />Berry Aviation, Inc., a Texas corporation ("Lessee"). <br />AGREEMENT: <br />In consideration of the covenants and obligations set forth herein and other good and valuable <br />consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee agree as <br />follows: <br />ARTICLE 1: AIRPORT OWNERSHIP; DEMISE; ACCEPTANCE; <br />CERTAIN RULES AND OTHER MATTERS <br />1.01. Airport. Lessor is the owner of the San Marcos Regional Airport (the "Airport"), situated <br />in Caldwell County, Texas, by virtue of deeds from the United States of America. <br />1.02. Demise. For and in consideration of, and subject to, the terms, conditions and covenants <br />herein, Lessor hereby demises and leases unto Lessee, and Lessee hereby leases from <br />Lessor, the following described real property (hereinafter referred to as the "Leased <br />Premises"), located at the Airport in Caldwell County, Texas: <br />40,280 unimproved square feet as described in Exhibit A attached hereto; <br />1.03. Acceptance. Lessee acknowledges that, subject to Lessor's express obligations herein: (i) <br />Lessor makes no representations or warranty regarding the suitability of the Leased <br />Premises for Lessee's intended purpose or the presence of environmental, geologic or other <br />site conditions that may affect Lessee's use of the Leased Premises; (ii) Lessee accepts full <br />responsibility for determining the suitability of the Leased Premises for its intended <br />purposes; (iii) Lessee has had the opportunity to inspect and perform tests and <br />investigations of the Leased Premises for its intended purposes; and (iv) Lessee is accepting <br />the Leased Premises in its present condition. <br />1.04. Rules and Regulations; Minimum Standards. Lessee agrees to comply with the (i) San <br />Marcos Regional Airport Rules and Regulations adopted November 2, 2015, pursuant to <br />City Ordinance Number 2015-46 (the "Rules and Regulations"), a copy of which is <br />attached hereto as Exhibit B, and (ii) San Marcos Regional Airport Minimum Standards <br />last updated August 18, 2015 (the "Minimum Standards"), a copy of which are attached <br />hereto as Exhibit C. Provided the same do not impair the material rights of Lessee <br />hereunder or adversely affect Lessee's ability to use the Leased Premises for the <br />Authorized Use (as defined below), Lessor has the right to amend and/or restate the Rules <br />and Regulations and/or the Minimum Standards and Lessee shall comply with the same. <br />1.05. Airport Operation. During the Term, Lessor covenants and agrees to operate and maintain <br />the Airport and appurtenant facilities as a public airport consistent with, at a minimum, <br />current operations and the "sponsor" assurances given by Lessor to the United States of <br />