i.I'iY U~ 3~:; VILt,i., 'i6>';:, Or.DINf.N(:i NG. 6:-1< ;1N OI;DINANCI BY 1'tif. i:ITY Us.+ KF'I:b.VILLt, TL5'."`~, t°UTNO%I~:'ING 'Pill: i ITY GP Kl-r'VILLi•: TO Ir''N:~T I'0 DU(~O:ii; L. T7-ti~.. L':' SEi'.VIC~. +.-f). [Nf.., :`~ {:1:~.:'.Cr`IN :3.37 :.'i~.i:~ '1"~..`~',' CP L.~•.ND OU'S GF ~ND i' A.'C OI' TtiF G.Y. b.pHINE;[3N SULVtr3 Nti. 44, AH:17:(.,'.CT N(l. 2t3G, 'i'H, y. PT; DE.ING p .;,Z' QF `Cli', 3AUIS :-CHF:'.; INE. ^Ii: FIF.U], KY;i.€,VILLb hiUNlt:I:AL 'Ir~i'9tT, LfTt;''}D IN KI`i;b ;BOUNTY, '?`l :'., Q~`NED DY 't'H?' i ITY 0'x' R£i:iV [ LJ ND THE t;[7UN`I'Y OF 1CE:hTx, 'ND i'.NAf:TING OTlibi. F>hOVL- STON5 INGIDLNI' AND ~1.L,'TING 'i'C THl': ::UBJTCT ND 'Ul i'oE;t' CF 'iiLS ~_;i'.DINANCS . itEkr ~, Dugcsh ;,ircr£t .service iv. Ine., :nixnitted a t;r:>vc: c•a least ai;;-cement to ).ease t~ 3. i7 sere tr4c:t n 1^nd ].oc~ tc c.~ et 'tre ~.ity-:.ozmty :ssaned .'ix~ort upon trrmS ~nci condicioaas a•nd chr~r'ges fret :orth in saic ie.~5e a~,rersnc-n?_ and fik:;,E.:>, the . ity ... Kerrville hc;s ,:c:thnritY t:;eneraiZy to tit::;., title ardin-+xticulr:r is -uttroi.i c•ci by the Iitmicinsi ~-i.a zusrtr .fit t ~~.r f;}.vices E+6d-l to L~Gd-le, V. T. .. -. , to ~~ntea ntc said I.~asE• .=~reement; :in+i i+J:: P ;7, it is necesQr~ry axu' 4xoiaez Lh.Rr the city t;auncil av the- ~..ity ::. Hrreil;e, '3'ex:r:;, inter into the lease ag;reemene oP snid px:anert}' %nu do utttez ttrings incident thcretr.; no ~, the>c-fore., $i. IT C~i:DMIN2:J BY l'i'lt. i.i1'Y eGiJNGEL OF ~L'ii7~ CZTY 0,' CJn~JILLF, iCl,i(F ::C)U,T7Yr T'F_R<. b .;l.t.'i'ICN 1. "Thn rr+gr. ph i, ~;;xon rief terms 'nd conditions c,e.n!`ained i.n •~xxch lease a,rreement herein..;:ter cet Yoztir. t51CTIUN j. The i~iycr is s±:thori ed to exacutc s.nd tk:e ~.ity ~iext: tc. r'tt€•st rnd caf~ir. the c:oa'rn~=atE Neal oz t.ite i.ty o:t Xcrrvitie, 's"ex.s u:pnn chc Folltnring ?e;>e s,Z;zeearent, s~hieh i.: substNncs. lly in the fcil+so-inD ':ur¢r, to- ~.•it: _l_ SEt_'TION :~: 'ih~:e ,cy r:nd all -;they necess:~ry ^nd xel~ted instruments or documents incident to the ce•rryin~, c,ut ei the purpoaae of this orctnnce ahc11 be :signed by the Mayor anti .~ttet,ted by the :..ty .leg-k, o.nd the :orpoxste seal of the .ity of Kerrville, shall, be impressed upon each o, such inst:zuinenta, snd, further, .~h~. tiryoz, the cffi~c~.ss rand employees of thc. ~.'.ity o~ ~Kerrvillc b~~~, ind they c?re ire?:eby ruthori.ed anti directed to do all. things rtecess~sy :nd prepet to carry out tlae terms ~~nd purposes of thi ordinance. tiCSG~B <~Nll ^ Fi'1-.OVl~ll UN FIi~ST eid1UINC= this the 12th day of l~u};ust, ;.'~e='~a ?:;:.~liD ND 'i OVF,D ON 71i t'nmposcd ref the CiTY ~)r KI?RIZVTLf ,l?, which ir, ,~ nnuiirip,~I ~ nrpnrn*i~m iuul~~r Cllr Inwr; nl iln~ `;inT~~ ~~f'1 ~•~ns anil is Ih~~ t'nnnty ti~~nl ail I~:~ rr ~'~,nnry, '1,•~nr;, ,irtii~f{ li~~n~in b~d :nil tlu'ouch its Mn~+or and (',iCv ('I~rl:, duly authorixrd to ~~i•rutc I~liis instrument by ordinance h~•rctofrn'c prnp~ rly passed by t.hr ('it~~ (;nuncil of Sald (.ItV n~ ~~CI-TVII~~'~ ^n~l th^ (~nilntV O~ l«~r ~'~ Slat C' U~ T~"!lL:~ which is a 4,ovcrnnx~nta! ~nih~livi~ion ol~ the State of Tr~an, artlnq h~~rc- in by and thrnu~;li itr, t'~nnnty ludyr~~, duly anthorizcd to so art by ~n~d~~r herctotorc p:~ssud by the ('~ommissioncrs (;Dort of Kerr ('rnu~ty, 'hcxas, ;iit surf nnri~osc as is rccnr-dc~i in the A~1inittc~.e oC said ~'oart, nail th<~ said ~'TT1' ami COtiNTY fining joint owners of the. hF~r~~in,~ftrn- dcs- rrihc~l pn~~n rty and Ihit~osh Aircraft firrvicc ('~>. Inc., a "I~~xnti cor- poration, li~~rcinalicr cn1l<~d L~~ssc'c. l",~I"hNl~:tiSl~"I'I A: 5[1RiL~:T MATTL:I'~ LeSSOrs have this day Lensed aml let, and by these presr nts do tease, let and demise unto Lessee, upon the terms and conditions and suhj<~ct to the nvrttcrs he~'cinaftcr srt forth, al] of th~• following dcs- crihcd r~•al estate in I:in}~, a U~tni ~~f ;;_ ,5;, ucr~~~~; of I,uid nut of ~h i~~;innl Fur~~cy No. X14, (~. A~. Fobinson, .1Yistract Nn. 2~'lJ., being fart of the Fcrrvill~~ iA9unicipa] Airport and being morn par- ticularly described by metes and hounds, as follows, to wit: Rf?GINNiNG at an iron stake for the Northeast cornc~c of that 4. I acct tract previously latsed to I~ug'osh Aircraft Srrvirc (;n. fnc. in thr West line of a 7O foot wide ,trip reserved tot an access marl, said rrn-ncr hcinl; ;0 feat S. R3"W. from the. Northwest corm•r oC L,ot No. 17 of Shndv Gruvc Subdivision ns recorded in Volum~° I nt I'ag;c d8 of th~~ Plat Rr~~ords of Kcer C'ount_v, and a re-entrant cnrn~_ r ni the said uirpurl prop~'rty: I I IifN(',I? with t:hc Nnrtl~ line oi' alorusaid 4. I acn tract previously leased to I~ugosh Aircraft Service Co. lne. , S. RK"W. 3O0 feet to an iron stake marking; the Nrn~thwcst corner of thc~ said =4. 1 acre tract for the Southwest corner of Chis tract; T[ I l?N~ a~ along the extension or continuation of the West line of aforesaid 4. 1 acre tract, N. 2°W. hNFi. 6 feet to an iron stake set for the Northwest conicr n; this tract; TI fLINCL N. 8,4"L. :3O0 feet to an iron stake in the WcNt line of aforesaid 7(1 foot wide strip of land resrrved for a rondw;iy for the Northcn:,t corm r of thi:, t~-acC; 'llll_N<:f? with the West line nl said i0 foot roadway tract S. 2 1i. -}86. 6 foci to the place of l'>>=GINNING. l 't )NSI I )I C IZ i1' I' I ON in consideration ofthc•fore~oing, Lr~ssrc is hound and obligated: (a) 'I'o p,~y to the Lessors nt Kc°rrvillr, Kerr ('aunty, '1"r xas, Cllr sum of Thirty-Llirce :m~ i0/U)0 (',33.50) and payable on Lhe ten tl~lOth d~ of each month. (b) 'fo prnvid~ and nu~intain his awn water supply with finch wah"r nu~•ting lbr re~luirements far •tiCate approval. !rl "I'n m;iuriain all huildini~s constructed nn said lands in a ::I.iC~• of I~oo~l r~y~aii ;il all tini~•r: Burin}'; Ib~~ life of this; I~•as~". (.I) I.. •;.iv~~ .nnl ~~•~•p li,ii nil~~,.+ I es:;~n~:~• iu all i~•up~~~ (r. I~~' reason of its orcupnnc} and use of any porCion of the airfi~_•Id, and hy, reason of any acts of its as~,cnts, employees, servants and any other parson or thing on said premises, to c1"fcctuatc which I,essec• shall carry liability insurance in the amounts of not less than ."l.~(l,llOO each person, ~II)O,O(I(1 each ^rcidcnt, and .`,SSO,000 prapcety dama~,e, showing ihigosb ~ireraft ti~•rvicc C;u., loc. as Operator and Lessee, and the policy cndors~d showing the C=ity of Kerrville, Tt'YaS and ~~~ rr (:aunty, Texas, as collateral interest as (hvncrs and Lessors. All insurance polirie.~ cavcrinl, all intc~rest specified in this lease skill be submitted Co I,es;arF and shrill be subject to acccptancc by Lessors by their ::Unulard:; as to company and 'or group stability. (~) Le:::e~• :;ball al .ill Cinu:; dni inl', the rontiunanc~• nl thi:; agrccnirnt, al lii~~. own ~~~pensc, provide for ade~luute and :;anit;u v disposal of sewage in aecordance with State I Icalth I>ep;n-tmcnt rccanr mcndations; ke~yi the said premises free fiom trash, junk and garbage, and provide for the olf-airporT premises disposal of any such trash, junk and~'or garbage. :;, "l f?Ri\~ OT7 Lf'~1SE '1'hc LcaSe nl the above dcsrrihcd premises shall he for a term of twenty (°(1) veai~s, commencing from dntr~ of ~~ecrution; provided, bowevei', Ihat an of bclore the ex piratinn date al tb~ prinen~v G"i ni ul' this lease cbaC I,evsec r;hall have the righC and option to renew Chis lease for an additional Ll) wars far the same rental and under the. saute terms, cov~,nants and agreements of this lease. Lessee shall have the right to exercise said option hV giving notice in writing by Itcgistered mail, addressed to Lessor at the same address rcnCal specks arc mailed to, on or before ninety (')O) days of the date of expiration of this lease. ~. I'I~RPOSL nl~ LEnSI? I'liir: I.:ir~ i:; eke ruled for the nnrtu;il ndvnnta)~,< of the parties hereto and foi for benefit nl I,eSHal'v~ their popula[ion and the g=eneral public. It is particularly stipulated by the parties to this Icase agrcc- ment that the buildings and premises hcrcinabove dcsrrihcd and hereby Icase~d arc to be used Rn- the purpose ai maintenance, serviec, repair, modification and testing of aircraft, aireralt engines and power plants, and the manufacturing and sale of aircraft and aircraft parts, components anil accessories, aircraft instruments, aircraft engines ^nd power plants, and such other ptn-poscs as may be incidental hereto, servicing and storage of aircraft and for all other purposes allied with aerospace ur aviation, cxrluding, huwev~~r, hcr~~frotn the right to cngag~~ in tlic sale of petroleum products usu~i fur aircraft fuel arn] c~nginc lubrlcantn; and after nugust I, .197-I, for the further purposes of flying instructions and charter sr~rvice. ~. CUMPLInNCL W[TII REGIII,,1TiONS Lcsncr obligat~n hims~ If to comply with all rrt,ul,tlionr; n~•t up by the (~c~(~~ral nviation /1l;cncy, Ccdcral, ntatr ;nti1 nnmicihal Inw•ti, and will not pc emit the prcn;inc~s ~'~>vcrcd by this Ira tic ngrccnirnt to be usc~l fur any unlawful ur impntprr purposes. ct. '1'LIiMW~1'hl(~N This lease agrcr~m~•nt muy br tcrmhutt~d bv: (a) Lapnc of tiny.; (h) ;\R~ i' the ~ zpiraCiult of one (I) y~ni li uni ~ unun~nc~_ ins nC of uld Lessee's opera- tions be discontinued for mucc than sis (6) months as a r~;5ult of a stril.~~ ur vis major, su~'h dlscontiuuauc~ shad nul be cunnidcrcd as ground Fbr tccmination of this lca;;c agrreui~nC. (c) The lL~itcd Stntcs Govcnnncnt rcyuiring the u•n~~ ul' nnid prc~inisrti in the rv~•nt ul a national rnu•rg~ ncy ur tier any drlrn~~r I~ru- r,t'nnt ur ~Icfr~n•rfritur~+, demanil of the government, or otherwise, normal wear anal tear chrepCe~l. '1. Sl ll~-L1:;1S1' I.CSSee shall nut be pcrmittc~l to sublet Chc whole of the premises hereby lcasral r~eept with the written cunscnt ut Lessors, however, Le.secc shall be prnnittuil to hypothecate un~i ruurtgagc the prcmiecs P[ereof without the consent cat the Lessul-s. In Chc evcnC oI a toreelosu> c by such nuntgagec, then the purchaser at any such forerlusure sale (inclu~lingthe morCgagcc if it be the purchaser) shall be substilatto~l as Lessee wtiler the terms of Lhis lease ana this lease shall continue in frill force anal effect areor~iing to its terms; provi~leci, however, that sorb subrtrtut,~,l Lrsse~~ ::hall prunlptly p,iv Cu L,~ssor ally nrr~~ar:; .,I' r~•nl, it airy Un•I ~~ b,~, nu~i uth~•Iwi:;,~ prnp~~l v In•i I„rul .iny r~w~~n.lnl:~. ul tl,i:; Icas~• which Lcstieu hail tlicrcWlul ~_~ lail.vl ur relus~~,l to perlul nl. SUPPLY OI~ Vlil'TLIZLAL,S, LTC. 1C i:; lurthc r' at;ree~l Chat should ^ ~Ielav ul ~lisruntinu.ulrc in Lessee's uprrltiuns be occasionc~i us a result ul Inability to purcbn>ac materials, equipment or other essential cuutpouents anal pat-ts rcquire~i in Lessee's operations ns a result nl shol C supply, ur shnul~l such nlatc- i inl:;, ~ cluipnl~ nt ur rumpunrnC:; ;ul~l pnr[:: b~ rla::,,ili~ ~l by i:b~ I IniteJ Statrs Govcnuncnt as strategic and a priority be placed thereon by the governulcnt thereby rendering it impossible for the I.csseu to obtain aan~ic lur iGs operation, then and in either of such ~vcnts sorb period of Link shall not be eonsidcre~l as a ground lur Lermin:rtion under the one (L) year clause or otherwise. 11\Ai\IN'I'I(NANCL_ UI' ;\11(1'O1('1' I.eSSUrs agree and arc hen'by obli~~atrd to continue operations of I •ouis 5climincr Air ~ietd, hrrrville Municipal rAirpurt, during the pcrio~i of this lease agreement, and to maintain said airlicld in ~~uurl, asable condition and repair, for which purpose it was created. I -' lil\)T~ URCLM L'N"1' nllV t';1U:;i' X11 at'LUm ;1I~ISllil', 1H11 ~~I Jnd hV VII tld' ~~I Ih~' L~•I 111 l) Lhi:; .i~;r~~~~ni~~ul ~,linll b~ nciinLainable in hri i ~'.ounty, I~r~.i::, only. l 3. SU(;CIiSSURS ANU ASSIGNS Phis as,ruemrnt shall he binding upon the p:u tics hereto, their successors, Irgul representatives and assigns; and it is ~~xprossly agreed and undrrstuod that rl any portion ui this lease agrcciuent sha11 be declared invalid by the uix'ration ul uny statute ur by any court de- cision, thrn and in either ~_~vcnt, such partial invalidity shall never dc- ~Croy ur vitiutr d:hr .'ntir~~ty nfi this l~_c~ve. IN \VI'I'NI ,SS WIII(I(I Ui the par ics hcieby h;iv~ hei~untu sit Lhcir bands in duplicate un this the ~_ day ul (~~~ 1~1(~~>, pursuanC to Lhe ordinance and resolution herrtulore rnaeC~'d, duly auLhor- i~iug the oxecution ul this lease by the signatories appendcel thereto. LI~SSURS: ~'I"I'I~:;~ (.i ~ ~ (;lerl. CITY (~I~ hI'I(I(VI ,I I?, 'I'I'\Ati 13y - ~~ ~/I a u i _~_ ~111hi' (~,(~nllll l.`::;lc~nt'I~ti (.(~U rt Ul hel~l~ (~.~Hll llv 'I ~~"„I.'. -~ ~ ~ ~ ~; ~' ., i ~T .; \ Secretary r,l ssrl l~liG ,' I IZ~'R~11~"I',til~' iVl("I~: (' ., fNt:. I i_V _ _ ~ (,harlie I,croy I)Etgr~sL, resi~ler {~ i. ?. _'%>?~.., ate- ~, .'_ ' ~~ ~ _~ htiP 4iG i --i.C ~, /__ ~~z ~ ~//J/~ ~ s ~~~.c ALL C% - ~ Lt~-'-~ .S %" ~. ~-!+ 'tom ~.Fi ~ ", - « x_ ~,-' -, -, ~.~ ~ ~; F'3~FD DAY OF A. D. 98`l'y~ L J G ,®- CLSrtrtGU:i:dEa cc~_~ E. ~tE.an c-ur~ra, -, >:ca6