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58 AMENDMENT #4 TO LEASE OF AIRPORT PROPERTY/BUILDINGS BETWEEN SOUTHWEST TEXAS AVIATION, INC. AND THE CITY OF SAN MARCOS, TEXAS STATE OF TEXAS § § COUNTY OF HAYS AND CALDWELL § The City of San Marcos, Texas, a municipal corporation organized and existing under the laws of the State of Texas ("Lessor") and Southwest Texas Aviation, Inc., ("Lessee"), agree to amend their lease agreement entered into on January 27, 1981. 1. Lessor and Lessee agree to an amendment of Paragraph 3 of the 1981 Lease, entitled "Consideration" is amended to read as follows: 3. Consideration: As consideration and rental for the demised premises, Lessee agrees to pay to Lessor the sum of five cents ($.05) per square foot per year, payment to be made in advance on the 10th day of October of each year of this lease. The Lessee has prepaid rental until January 1, 1997. The initial payment of $450.00 for January 1, 1997 to September 31,1997 will be made no later than January 10,1997, with all subsequent payments due in October. The Lessee will also pay an annual fee equal to one percent (1%) of the adjusted gross income of all commercial activity, excluding aircraft sales and any sales or services to federal, state, or local government or other tax exempt agencies. The sum of the lease shall be reviewed each five (5) years in relation to the consumer price index and escalated accordingly, provided that the original sum shall not be diminished. ,.-- ¡ On January 15, 2001, when ownership of th.e hangar located on this property , reverts to the Lessor, this Lease will remain in effect in accordance with , paragraph 5. Lessee will continue to pay the land rental of five cents ($.05) per square foot. On the date of execution of the 1995 Lease, Lessee pre- paid rental under this Lease in the lump sum amount of $12,500.00. This lump sum payment reflects the present value of the rental amounts for the extended term of this Lease from January 15, 2001 until October 15, 2016. If this Lease is terminated at no fault of the Lessee, the Lessor will refund a pro-rata portion of the prepayment. Unless stated otherwise, rental fees are payable at the place designated for the delivery of notices to Lessor in Paragraph 15. All airport revenue derived from Lessee and any other user of the leased premises must be allocated toward the maintenance and improvement of the Airport. This requirement shall not be considered mandatory upon the Lessor unless it is required by existing indenture or agreement with the Federal Government or any amended or substitute indentures and agreements entered into with the Federal Government. I 2. Paragraph 5 of the 1981 Lease, entitled "Term of Lease" is amended to read as ! follows: , j 5. Term of Lease: The term of this Lease for the property described in paragraph 2 as the Leased Premises and as shown on Exhibit" A" shall be for twenty years beginning January 15, 1981 and running through January 15, 2001. After January 1, 2001, the term of this Lease shall extend to October 15, 2016. Lessee agrees to conduct and operate a non-exclusive operation in accordance with the provisions of this paragraph for the entire term of this Lease.