Res 2001-033 - Laserfiche WebLink

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57. AMENDMENT NUMBER FIVE TO LEASE OF AIRPORT PROPERTY/BUILDINGS BETWEEN McKEE AVIATION AND AVIONICS. INC. AND THE CITY OF SAN MARCOS VOL 272f'kCf 2Cl STATE OF TEXAS OJ.3483 COUNTY OF HAYS The City of San Marcos, Texas, a Texas municipal corporation (the "Lessor"), and McKee Aviation and Avionics, Inc. (the II Lessee") , agree to amend their lease agreement entered into originally between the Lessor and John J. Stokes, Sr. on July 29, 1986; as amended on July 26, 1988; as assigned from John J. Stokes Sr. to McKee Aviation, Inc., on January 17, 1990; and as amended on February 13, 1990, October 14, 1997 and June 23, 1998. The Lessee has requested that the lease agreement be amended to permit the Lessee to mortgage the Lessee's leasehold interest so that the Lessee can secure funding to payoff liens associated with the Lessee's original acquisition of the leasehold from John J. Stokes, Sr. The Lessor is willing to amend the lease to permit this under the terms and conditions of this amendment. In consideration of the mutual covenants contained in this amendment, the Lessor and the Lessee agree to amend the lease as follows: Lessor and Lessee agree to add Section 12.1 to the Lease, to read as follows: Section 12.1 Landlord's Lien; Mortgage of Leasehold by Lessee. a. The Lessee grants to the Lessor a valid first security interest upon all of the Lessee's goods, chattels, furniture, trade fixtures, inventory and other property upon the Leased Premises to secure all rents and other sums due or to become due to the Lessor. The Lessee expressly waives all exemption laws in favor of this security interest; and it is agreed that this express security interest shall be in addition to, and not as a waiver of or substitute for any statutory or other liens of the Lessor. In connection with this security interest, it is agreed that in the event of a breach or default by the Lessee, the Lessor may exercise all rights and remedies provided to a secured party after default under the Uniform Commercial Code ("UCC"), as adopted and amended in Texas, with respect to all such property, including, without limitation, the right to take and retain possession of the property and to sell it at public or private sale, or to use it in any other manner authorized or provided in the UCC. Upon request by the Lessor, the Lessee agrees to execute and deliver UCC Financing Statements to the Lessor from time to time as the Lessor deems necessary to perfect the Lessor's security interest in the property, and proceeds thereof under the provisions of the UCC. b. The Lessor grants permission to the Lessee for the mortgaging of the Lessee's leasehold interest in the Leased Premises for the sole purpose of obtaining funding to acquire or construct permanent improvements on the Leased Premises. The Lessee will provide written notification to the Lessor of each such mortgage within ten days after it is executed. The Lessor agrees that any lien in its favor arising under this Lease as to any such improvements will be subordinate to the lien of the mortgagee under each such mortgage. If the Lessee defaults on the mortgage, the mo.rtgagee shall be responsible for all of the Lessee's obligations to the Lessor which arise under the lease. This clause is self- operative and no further instrument of subordination need be required by any mortgagee of the Lessee. The mortgaging by the Lessee of its leasehold interest for any other purpose, however, shall require the advance written approval of the Lessor.