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2.0.5 The Operator will not operate another Airport or own, lease or operate a business <br /> that competes with the San Marcos Airport located within the "I-35 Airport <br /> Corridor." For purposes of this Agreement the "1-35 Airport Corridor" shall be <br /> defined as: an area located within a 35 nautical mile circular radius of the San <br /> Marcos Regional Airport but also including Burnett Municipal Airport and <br /> Smithville Crawford Municipal Airport. A copy of the I-35 Airport Corridor is <br /> depicted in Exhibit B and attached hereto and incorporated herein by reference. <br /> Where a conflict exists between the description and the description in this section, <br /> the description in this Section shall control. <br /> 2.0.6 Operator may not own,operate,furnish services to or have any financial interest in <br /> any current or future business, lease, contract or agreement related to the Airport, <br /> Airport Property or adjacent property unless approved by the City Council.Further, <br /> Operator may not enter into any business transaction or contract with any business <br /> entity for services, labor or materials in which it has a financial interest in the <br /> performance of this Agreement unless approved by the City Council. <br /> 2.0.7 In addition, the Operator will not provide services or perform functions for third <br /> parties at the Airport that would normally be provided by a fixed based operator or <br /> any other party, unless the provision for such services are approved in writing in <br /> advance by the City, at its sole discretion. <br /> 2.0.8 The Operator shall maintain its management office on the Airport Property at a <br /> location within the Airport that is approved by the City. <br /> 2.0.9 The Operator will not,without the prior written consent of the City: <br /> a. Change the nature of the business of the Airport as currently conducted; <br /> b. Enter into any contract, commitment or transaction on behalf of the City; <br /> c. Utilize the assets of the Airport for any purpose other than the continued <br /> operation of the Airport; <br /> d. Distribute, dispose of, transfer, convey, pledge, mortgage or encumber any of <br /> the assets of the Airport; <br /> 2.0.10 Unless in accordance with a plan approved by the City, Operator shall not act or <br /> fail to act in or on the Airport in a manner which is the reasonable judgment of the <br /> City: <br /> a. Interferes with the reasonable use of the Airport by the public; <br /> b. Hinders police, firefighting or other emergency personnel in the discharge of <br /> their duties at the Airport; <br /> c. Would constitute a hazardous condition; <br /> d. Would constitute an illegal purpose or violate any applicable laws, rules or <br /> regulations; <br /> e. Is not in accordance with this Agreement; <br /> f. Degrades the value or appearance of the Airport. <br /> Page 6 of 34 <br />