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CITY OF SAN MARCOS,TEXAS <br /> SAN MARC05 REGIONAL AIRPORT <br /> AIRPORT FACILITY LEASE AGREEMTNT <br /> FOR COMMERCIAL USE <br /> THIS AIRPORT FACILITY LEASE AGREEMENT FOR COMIERCLAL USE(`Lease) <br /> is made between the City of Sart Marcos,a municipal corporation of the State of Texas("Lessor"or"City'), <br /> and Redbird Plight Simulations,Inc.,a Texas corporation("Lessee'. <br /> ARTICLE 1: LEASE OF PREMISES;ACCEPTANCE OF EXISTING CONDITIONS; <br /> CONTLLANCE WITH REGULATIONS <br /> 1.01 Ai1port. Lessor is the owner of the San Marcos Regional Airport (the "Airporf), situated in <br /> Caldwell County,Texas,by virtue of deeds from the United States of America. <br /> 1.02 Demise. For and in consideration of: and subject to,the terms, conditions, and covenants herein, <br /> Lessor hereby demises and leases unto Lessee,and Lessee hereby leases from Lessor,the following <br /> described regi property(hereinafter referred to as the"Leased Premises'),located at the Airport in <br /> Caldwell County,Texas: <br /> a. an approximately 900 square foot office with an address of 1827 Airport Drive(the"Office <br /> Site"),the location of which is more particularly described in Exbibit B attached hereto. <br /> 1.03 Acceptance. 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; and (ii) Lessee accepts full <br /> responsibility for determining the suitability of the Leased Premises for its intended purposes. <br /> 1.04 Rules and Regulations; Minimum Standards. Lessee agrees to comply with the (i) San Marcos <br /> Regional .Airport Rules and Regulations (the "Rules and ReguArdo rs"), and (ii) Satz Marcos <br /> Regional Airport Minimum Standards (the "Minimum Standards"). Provided the same do not <br /> impair the material rights of Lessee hereunder or adversely affect Lessee's ability to use the Leased <br /> Premises for the Authorized Use(as defined below),Lessor has the right to amend and/or restate <br /> the Rules and Regulations and/or the Minimum Standards and Lessee shall comply with the sante. <br /> 1.05 Airport Operation. During the Term, Lessor covenants and agrees to operate and maintain the <br /> Airport and appurtenant facilities(including,without lim.itatioaz,runways,taxiways,landing areas, <br /> entrance roads, driveways and existing parking lots leading to and/or contiguous to the Leased <br /> Premises)as a public airport consistent with,at a minimum, current operations and the"sponsor" <br /> assurances given by Lessor to the United States of America and,as applicable,the State of Texas. <br /> In connection with such sponsor assurances,Lessee agrees that this Lease and Lessee's rights and <br /> privileges hereunder shall be subordinate to such sponsor assurances. <br /> 1.06 IMess 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 from <br /> the Leased Premises by means of roadways and gated entrances owned by the City for automobiles <br /> . ................................................................. <br />