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AGREEMENT AUTHORIZING USE OF AIRPORT PROPERTY FOR OPERATION OF BUSINESS Section 1. Parties. This agreement (this "Agreement") is made between Officers Club AeroVentures San Marcos #l, LP, SPECIALIZED AERO SERVICES, and the City of San Marcos (the "City"). Section 2. Background. The City is the owner of the San Marcos Municipal Airport (the "Airport"), situated in San Marcos, Caldwell County, Texas. The City and Officers Club AeroVentures San Marcos #l, LP previously entered into: a) a Lease of Unimproved Airport Property For Construction and Operation of Business Facilities approved on April 19, 2005; b) Amendment Number One To Lease of Airport property approved on September 20, 2005; c) Amendment Number Two To Lease of Airport property, approved on December 1 1, 2007, to allow business activities in addition to hangar rental; and d) Amendment Number Three To Lease of Airport Property, approved on February 19, 2008, which added Officers Club AeroVentures San Marcos #2, LP as an additional Lessee. The original lease and the three amendments just described shall hereinafter be referred to as the "City Lease." Officers Club AeroVentures San Marcos #2, LP has renovated a commercial facility (the "Facility") on the Property, and Officers Club AeroVentures San Marcos #2, LP and SPECIALIZED AERO SERVICES have entered into a Sublease of Airport Property dated December 1, 2007 (the "Sublease"). Section 3. Authorization for Operation of Airport Business by SPECIALIZED AERO SERVICES. This Agreement authorizes SPECIALIZED AERO SERVICES to operate a business within the Facility, subj ect to the terms of this Agreement. Section 4. Acceptance of Terms of City Lease. SPECIALIZED AERO SERVICES acknowledges that it has received a copy of the documents comprising the City Lease. Officers Club Aero Ventures San Marcos #2, LP and SPECIALIZED AERO SERVICES agree that the Sublease is subject to all terms and conditions of the City Lease, and that any provision in the Sublease that conflicts with any provision of the City Lease is null and void and of no force or effect. Officers Club AeroVentures San Marcos #2, LP and SPECIALIZED AERO SERVICES agree not to execute any amendment to the Sublease without obtaining the prior written approval of the City. Section 5. Continuing Responsibility of Officers Club AeroVentures San Marcos #2, LP under City Lease. The City and Officers Club AeroVentures San Marcos #2, LP agree that the City's approval of the Sublease, and its authorization in this Agreement for SPECIALIZED AERO SERVICES to conduct business at the Airport, do not affect Officers Club AeroVentures San Marcos #2, LP's obligations under the City Lease, and Officers Club AeroVentures San Marcos #l, LP remains fully responsible to the City for compliance with all provisions of the City Lease. Officers Club AeroVentures San Marcos #2, LP remains fully responsible to the City for compliance with all provisions of the City Lease. Officers Club AeroVentures San Marcos #2, LP shall remain jointly responsible with Officers Club AeroVentures San Marcos #l, LP to continue making lease payments to the City in accordance with the City Lease.