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City of San Marcos Airport <br />dimensions that differ by 25% or less from the dimensions which appear on the <br />Exhibit "A" attached to this LEASE on the date hereof. In addition, changes in the <br />number or size of the hangar units constructed in the FACILITIES will not be <br />considered substantial changes to the plans. Any other substantial deviation to <br />either the area of the LEASED PREMISES or the size and specifications of the <br />FACILITIES must be approved by the LESSOR'S governing body. <br />1.02. The LESSEE acknowledges that, subject to the LESSOR'S obligations under <br />paragraph 1.04 below, 1) the LESSOR makes no representations or warranty <br />regarding the suitability of the LEASED PREMISES for the LESSEE's intended <br />purposes, or the presence of environmental, geologic, or other site conditions that <br />may off ect the LESSEE's use of the LEASED PREMISES; 2) the LESSEE accepts <br />full responsibility for determining the suitability of the LEASED PREMISES for its <br />intended purposes; 3) the LESSEE has inspected and performed all tests and <br />investigations of the LEASED PREMISES for its intended purposes; and 4) the <br />LESSEE is accepting the LEASED PREMISES in their present condition, and the <br />LESSEE agrees to perform all preparation, repairs, remediation and other activities <br />necessary to use the LEASED PREMISES for the LESSEE's intended purposes. <br />1.03. The LESSEE agrees to comply with the SAN MARCOS MUNICIPAL <br />AIRPORT STANDARD OPERATING PROCEDURES AND <br />REGULATIONS and the MINIMUM STANDARDS FOR FIXED BASE <br />OPERATORS AND AIRPORT TENANTS, as they now exist or may be <br />amended during the term of this LEASE, and any conflict between this LEASE and <br />these procedures, regulations and standards will be resolved in favor of the <br />procedures, regulations and standards. <br />1.04. The LESSOR agrees to construct the INFRASTRUCTURE IMPROVEMENTS within <br />18 calendar months of the date hereof, in a good and workmanlike manner and in <br />accordance with all applicable laws, statutes, and ordinances. The <br />INFRASTRUCTURE IMPROVEMENTS will be deemed completed on the date of final <br />inspection and approval by the City of San Marcos. The LESSOR acknowledges and <br />agrees that the LESSEE'S obligations under this LEASE are expressly contingent <br />upon the LESSOR completing the INFRASTRUCTURE IMPROVEMENTS as <br />contemplated herein. If the LESSOR fails to complete the INFRASTRUCTURE <br />IMPROVEMENTS as contemplated herein, then the LESSEE may terminate this <br />LEASE, without penalty, by giving written notice to the LESSOR. As used herein, <br />"INFRASTRUCTURE IMPROVEMENTS" means the improvements to be completed <br />by Lessor and listed on Exhibit "B" attached to and made a part of this LEASE for <br />all purposes. <br />1.05. The LESSOR covenants and agrees that during the term of this LEASE it will <br />operate and maintain the AIRPORT and its facilities as a public airport consistent <br />with and pursuant to the sponsor's assurances given by the LESSOR to the United <br />Commercial Land Lease Page 2 of 22 <br />