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<br />-" ~~~_-;_.::.."cr the :r:(:'~:CrL~~i:~G ~-~:;ree (l) \f,::":iJ"',:S erE ;-:.1:is lease.. ,::nt-~ FE() .':tqr(::2S -):0 :>'lY
<br />Li~'::,~ CoLLJ(,4i.nq;
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<br />A sum of Teaney equa.l to t...~'O ce.r.ts (2~) :per sque.re rc,ot:. r~er year
<br />for 40,000 square feet of $800.00 per ye2x, p:Lus
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<br />A ~:;um of nnney 0~qual to one ce.nt (1<::) pc~r gallon :for CClCl'1 9211100 of
<br />gasoline or other uircraEt fuel pu:rnped or sold at .the 3a.~ JYI.arcos
<br />lcunicipal Airport.
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<br />Such items of consideration accruinq C1..l.:Ling- each calend:trrrDnb'L of this agree-
<br />I Jre.'1C shall be ry:).id by Fro to _,t.he City o( San l'arco~ rronthly at~i:s c;,fh~e, i", yays
<br />County, r:I.exas, and sn3.Ll re Que and payable not la'cer that the;::encn (lOLn) oayof
<br />t~h2 :colla,'7ing rronth ~
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<br />In. connection \'lith t.l-J.e fOJ:eqoing it is unc1erst.cr....d that the fL1.el for '."hich the
<br />Cit.y win receive a percentage as p:rovided in (2) above shall include fuel used by
<br />th(~ FOO, whether or not. sold, D:..lsed on d:;livery receip-t from Exxon Oil Corpora"t:lon.
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<br />X.
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<br />'1'he FBO agrees to pay all utility charges in cOPJ1ection with the premises oc-
<br />cupied and used by Fro in its a.iJ:}Xlrt operation for \'lhi~'l the City becorres liable.
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<br />XI.
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<br />It is specifically provided t:hat t11e FBO shall not make or enter into emy con-
<br />tract, order or obligation of any kind in the name of or in benalf oft.l1e City of
<br />San 1.1arcos, and no contractual or other obligation entered in-to by i-t shall be bind-
<br />ing upon the City of San Bareos without the previous vrritten authoriza-tion of the
<br />City. FEO shall maintain, at i-ts O\\1n CDst, proper and adequate property daIpage and
<br />personal irljury Liabilit:y Insw:ance (wit:.11 mini Ilium liInits of liability in an arrount
<br />of $100,000 for bodily injury, personal injury or death to anyone person up t.o
<br />$300,000 for each occurance and $200,000 for damage to property).
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<br />XII.
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<br />No rights or privileges \L"lCler this contract shall be sold, transferred, assigned
<br />or subleased by FBO nor shall L'ley pass -to any othex parson \vithout -the consent in
<br />"Kiting of the Cit:y of San l13..rcos.
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<br />XIII.
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<br />If at the expiration of the initial five (5) year term of this contract the FBO
<br />has satisfactorily complied with all of the provisions hereof, this contract may, at
<br />the option of the FEO, be extended for an additional five (5) year period comnencing
<br />on the date provided for the termination of -the initial per:i,c:d of -this contract.
<br />Should the Fro desire to exercise su~'l option to so a'Ctend this contract for aD addi-
<br />ti.onal five (5) year period, it shall give to the City of San lA.arcos notice of such
<br />intention by prepaid certified JIlilil addressed to the office of the City Manager of
<br />San Harcos, 'l'exas, act least ninety (90) days prior to the termination of the initial
<br />term of this contract. If the FBO so elects to extend this contract, all of the 'cerrrs
<br />and provisions hereof shall apply to such ex-tended term: HONever, -the consideration
<br />to be paid the City of San llarcos for the property shall be adjusted to conform to
<br />other rentals then being charged on the airport.
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<br />XIX.
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<br />All covenants, -terms and conditions of this lease must be app~-oved by the Federal
<br />Aviation Ad'1\il1.istraUon before the effective date of lease as herein stipulated.
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<br />xx.
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<br />PEa shall store its property in, and shan cccupy the Leased prop"'..xl:y and all
<br />other portions of the San_ l!careas l!clmicipal Airport at its m7n risk, "ll1.d release Lesso_c r
<br />to 'the full extent permitted by law, frC~ll all cla:i1ns of every kind resultirlg in loss
<br />of life, personal or l:xJdily injury or property Cbrrage, and Lessor shall not be re-
<br />sponsible or liable at any t:i1ne for any loss or damage of FBO 1 S rrerc.'landise, equip-
<br />Dent, fixtw:cs, machinery, ah-planes, or aiL-plane parts or any other personal property
<br />of F'PD' s business on or upon the AiJ:}Xlrt property.
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