Res 2023-019/approving an airport facility redevelopment agreement for commercial use with US Aviation Group, LLC for the lease of airport

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DocuSign Envelope ID:CFOA3C46-0329-49E2-B3D4-269B064BBEC1 EXHIBIT B RENEWAL OPTION This Renewal Option is attached to and a part of that certain Airport Facility Redevelopment Lease Agreement for Commercial Use effective as of January 17,2023 (the"Lease"),by and between the City of San Marcos, a municipal corporation of the State of Texas ("Lessor"), and US Aviation Group, LLC, a Texas limited liability corporation ("Lessee"). For and in consideration of the sum of Ten and No/100 Dollars($10.00)and other good and valuable consideration,the receipt and sufficient of which are hereby acknowledged,Lessor grants to Lessee the option to extend the Lease, as hereinafter set forth. Contingent upon satisfaction of all of the following conditions,Lessee is hereby granted the option to extend the Term(the"Primary Term")for five(5)successive periods,the first containing approximately sixty (60) calendar months and expiring on January 16, 2038 ("Renewal Term 1"),the second containing approximately sixty(60)calendar months and expiring on January 16,2043 ("Renewal Term 2"),the third containing approximately sixty (60) calendar months and expiring on January 16, 2048 ("Renewal Term 3"), the fourth containing approximately sixty (60) calendar months and expiring on January 16, 2053 ("Renewal Tenn 4"), and the fifth containing approximately sixty (60) calendar months and expiring on January 16,2058("Renewal Term 5"), said conditions being that: i. Lessee has satisfied Redevelopment plans agreed upon in Exhibit C of the Lease; and ii. Lessee shall not be in default beyond any applicable cure period at the time it attempts to exercise an option hereunder;and iii. Lessee shall have given notice to Lessor not less than one hundred eighty (180) days prior to the expiration of the Primary Tenn, Renewal Term 1, Renewal Term 2, Renewal Term 3, or Renewal Term 4,as applicable, of Lessee's exercise of such option. Time of is of the essence in the exercise of options herein granted and should Lessee fail to exercise its right to any option by timely notice, such option and all successive options shall lapse and be of no further force or effect. In the event that Lessee shall effectively exercise any option herein granted, then all of the terms and provisions of the Lease as are applicable during the Primary Term shall likewise by applicable during Renewal Term 1,Renewal Term 2,Renewal Term 3,Renewal Term 4,and Renewal Term 5,as applicable, including that Rent shall be increased per the terms of Article 2.03. Other than as provided herein,Lessee shall have no further right to renew or extend the Term.Lessee's rights under this Renewal Option shall immediately terminate if the Lease or Lessee's right to possession of this Leased Premises is terminated. References in this Renewal Option and the Lease to the"Tenn"or the"Lease Term"shall be understood to refer to both the Primary Term and (if Lessee's option therefor is effectively exercised in accordance with any provisions hereof) also the stated Renewal Term(s), as applicable, unless such interpretation is expressly negated.