Res 2018-106/Amended and Restated Airport Facility Lease Agreement for Commercial Fixed Base Operator (FBO) Use with Berry Aviation, Inc. for the FBO terminal facility and associated fueling facilities at the San Marcos Regional Airport

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ARTICLE 2: COMMENCEMENT, TERM AND RENT 2.01Commencement. Rental (“Rent”) shall accrue commencing upon the Effective Date. Rent shall be payableat the place designated in Section 2.04. 2.02Term. The term of this Lease (“Term”) will commence on the Effective Date and will terminate on December 21, 2032 (the “Expiration Date”), subject to earlier termination or renewal as provided herein. Lessee shall have the option to extend the Term in accordance with Exhibit G attached hereto. As used herein, “LeaseYear” means each period of twelve (12) full calendar months from and after the Effective Date. 2.03Rent. a.Subject to the provisions of (b) below, Lessee hereby promises and agrees to pay Lessor (i) “fixed rent” for use of the FBO Space equal to $2,295.00 per quarter, and (ii) a quarterly fuel flowage fee as approved by City Council on June 5, 2018, and stated in the Minimum Standards (e.g., nine cents \[$0.09\] multiplied by the number of gallons of aviation fuel or gasoline for aircraft use delivered to Lessee at the Leased Premises for retail sales or other uses per quarter), which fuel flowage fee may be reviewed and updated by Council no sooner than February 28, 2032. Commencing on the first day of the calendar quarter immediately succeeding the Effective Date (the “Rent Commencement Date”), fixed Rent shall be paid, in advance, in quarterly installments. Commencing on the first day of the calendar quarter immediately succeeding the Rent Commencement Date, fuel flowage fees shall be paid quarterly, in arrears. Rent will be prorated in the event of any partial calendar quarter or Lease Year. Lessee, at its option, may make advance payments of Rent up toone (1) year in advance, but there will be no discount for advance payments. b.Notwithstanding the provisions of (a) above, Lessor and Lessee acknowledge and agree that (i) as of the Effective Date, the amount of rent credits approved by Lessor pursuant to the Original Lease equals $562,011.72 (the “Approved Credit”); (ii) during the Term and any extension thereof, until such time as $133,872.48 of the Approved Credit has been depleted, Lessee may receive a credit against fixed Rent from the Approved Credit, and (iii) the remaining $421,872.48 of the Approved Credit shall be made available to Lessee as a credit against fixed rent due by Lessee pursuant to the amended and restated Hangar Lease; and (iv) in the event Lessee constructs additional capital improvements during the Term which are approved and a related rent credit is authorized by Lessor, Lessee shall receive a credit against fixed Rent equal to the related expenditures, such credit to commence immediately upon completion of construction or installation of the subject improvements and to continue during the Term and any extension thereof until such credit has been depleted. Notwithstanding Lessee’s right to a Rent credit hereunder, in no event shall Lessor be responsible for amounts in excess of Rent payable by Lessee during the Term and any extension thereof. 2.04Form and Place of Payment. Rent shall be due on or before the first day of each calendar quarter. th A payment shall be considered past due if, after the fifth (5) day of the calendar quarter in which the payment is due, Lessor has not received full payment by the end of such day (which shall end during normal working hours) physically at 4400 Airport Highway 21, San Marcos, Texas, or by mail to 1807 Airport Drive Suite 200, San Marcos, Texas 78666. Payments submitted via United States Postal Service or other means are considered paid when received, not on the date posted. 3