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a.a terminal building (the “FBO Space”), the location of which is more particularly <br />described in Exhibit Aattached hereto; <br />b.two (2) City-owned above ground fuel storage tanks and above ground appurtenances <br />thereto (the “Fuel Facilities”), the location of which is more particularly described in <br />Exhibit Battached hereto; and <br />c.a self-service 100LL fuel pump and above ground appurtenances thereto (the “Self <br />Service Facility”), the location of which is more particularly described in Exhibit C <br />attached hereto. <br />1.03Acceptance. Lessee acknowledges that, subject to Lessor’s obligations under paragraph 1.05 <br />below: (i) Lessor makes no representations or warranty regarding the suitability of the Leased <br />Premises for Lessee’s intended purposes, or the presence of environmental, geologic,or other site <br />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 purposes; <br />(iii) Lessee has inspected and performed all desired tests and investigations of the Leased <br />Premises for its intended purposes; and (iv) Lessee accepts the Leased Premises in their present <br />condition. <br />1.04Rules and Regulations; Minimum Standards. Lessee agrees to comply with the (i) San Marcos <br />Regional Airport Rules and Regulations adopted November 2, 2015, pursuant to City Ordinance <br />Number 2015-46 (the “Rules and Regulations”), a copy of which is attached hereto as Exhibit D, <br />and (ii) San Marcos Regional Airport Minimum Standards last updated August 18, 2015, as <br />amended with respect to the fuel flowage fee on June 5, 2018 (the “Minimum Standards”), a <br />copy of which standards as of August 18, 2015, are attached hereto as Exhibit E. Provided the <br />same do not impair the material rights of Lessee hereunder or adversely affect Lessee’s ability to <br />use the Leased Premises for the Authorized Use (as defined below), Lessor has the right to amend <br />and/or restate the Rules and Regulations and/or the Minimum Standards and Lessee shall comply <br />with the same. <br />1.05Airport Operation.During the Term, Lessor covenants and agrees to operate and maintain the <br />Airport and appurtenant facilities (including, without limitation, runways, taxiways, landing <br />areas, entrance roads, driveways and existing parking lots leading to and/or contiguous to the <br />Leased Premises) as a public airport consistent with, at a minimum, current operations and the <br />“sponsor” assurances given by Lessor to the United States of America and, as applicable, the <br />State of Texas. In connection with such sponsor assurances, alist of which is set forth in Exhibit <br />Fattached hereto, Lessee agrees that this Lease and Lessee’s rights and privileges hereunder shall <br />be subordinate to such sponsor assurances. <br />1.06Ingress and Egress. Lessor agrees that Lessee, its officers, directors, agents, representatives, <br />contractors, employees, invitees and licensees shall have the right of ingress and egress to and <br />from the Leased Premises by means of roadways owned by the City for automobiles and taxiways <br />at the Airport for aircraft, including access during the construction phase of Airport <br />improvements, unless otherwise agreed to in writing by both parties. Such rights shall be <br />consistent with the Rules and Regulations and applicable laws, rules and regulations (“Applicable <br />Law”) of the City, the Federal Aviation Administration (“FAA”) and other governmental <br />authorities with jurisdiction over the Airport and this Lease. <br />2 <br /> <br />