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<br />t. 30(h~c[518 <br /> <br />102. <br /> <br />LEASE OF UNIMPROVED AIRPORT PROPERTY FOR <br />CONSTRUCTION OF BUSINESS FACILITIES <br /> <br />022631 <br /> <br />THE STATE OF TEXAS <br /> <br />COUNTIES OF HAYS AND CALDWELL <br /> <br />This lease agreement (this "Lease") is made between the City of San Marcos, <br />Texas, a municipal corporation (the "Lessor") and Randy Kerner, d/b/a Kerner Aircraft <br />Services (the "Lessee"). <br />The Lessor is the owner of the San Marcos Municipal Airport ("Airport"), situated in <br />Caldwell County, Texas, by virtue of deeds from the United States of America. <br />This Lease is subject to approval by the Federal Aviation Administration. <br /> <br />Article 1. Lease of Premises; Acceptance of Existing Conditions; <br />Compliance with Regulations <br /> <br />1.01. In consideration of the obligation of the Lessee to pay rent and in consideration of <br />the other terms, covenants and conditions of this Lease, the Lessor leases to the Lessee, <br />and the Lessee leases from the Lessor the three tracts of real property (referred to <br />collectively as the "Leased Premises") in Caldwell County, Texas described in Exhibit "A" <br />attached to and made a part of this Lease for all purposes. <br /> <br />1.02. The Lessee acknowledges that 1) the Lessor makes no representations or warranty <br />regarding the suitability of the Leased Premises for the Lessee's intended purposes, or the <br />presence of environmental, geologic, or other site conditions that may affect the Lessee's <br />use of the Leased Premises; 2) the Lessee accepts full responsibility for determining the <br />suitability of the Leased Premises for its intended purposes; 3) the Lessee has inspected <br />and performed all tests and investigations of the Leased Premises that the Lessee <br />considers necessary to satisfy itself as to the suitability of the Leased Premises for its <br />intended purposes; and 4) the Lessee is accepting the Leased Premises in their present <br />condition, and the Lessee agrees to perform all preparation, repairs, remediation and other <br />activities necessary to use the Leased Premises for the Lessee's intended purposes. <br /> <br />1.03. The Lessee agrees to comply with the San Marcos Municipal Airport Standard <br />Operating Procedures and Regulations and the Minimum Standards for Fixed Base <br />Operators and Airport Tenants, as they now exist or may be amended during the term of <br />this Lease, and any conflict between this Lease and these procedures, regulations and <br />standards will be resolved in favor of the procedures, regulations and standards. <br /> <br />Article 2. Rent/Term <br /> <br />2.01. Rental shall accrue from the commencement date of this Lease, and shall be <br />payable at the place designated for the delivery of notices to the Lessor in paragraph <br />1 <br />