~~' -- , ,, THE STATE OF TEXAS ~ § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF KERR ~ THIS LEASE AGREEMENT, made and entered into by and between the Lessors as composed of the CITY OF KERRVILLE, which is a municipal corporation under the laws of the State of Texas and is the County Seat of Kerr County, Texas, acting herein by and through its Mayor and City Clerk, duly authorized to execute this instrument by ordinance heretofore properly passed by the City Council of said City of Kerrville, and the County of Kerr, State of Texas, which is a governmental subdivision of the State of Texas, acting herein by and through its County Judge, duly autho- rized to so act by order heretofore passed by the Commissioners Court of Kerr County, Texas, for such purpose as is recorded in the Minutes of said Court, and the said CITY and COUNTY being joint owners of the hereinafter described property and Dugosh Aircraft Service Co., Inc., a Texas corporation, hereinafter called Lessee. This lease agreement is entered into by all parties hereto as a substitute and renewal and extension and consolidation lease for two certain leases heretofore executed, one on or about November 5, 1965 and one on or about August 26, 1969 releasing certain lands covered in these two certain leases and taking in lieu thereof other lands not heretofore covered by lease between the parties hereto. WITNESSETH: 1. SUBJECT MATTER Lessors have this day leased and let, and by these presents do lease, let and demise unto Lessee, upon the terms and conditions and subject to the matters hereinafter set forth, all of the follow- ing described real estate in Kerr County, Texas, to-wit: A 7.40 acre tract of land out of the O. V. Robinson Survey No. 44, Abstract No. 282, located in the Louis Schreiner Field Tract, Kerr County, Texas and being more particularly described by metes and bounds_as follows: BEGINNING at an iron stake set in the West line of a 70' road easement, said point being located S 88° 00' W. 70.0 feet and N 2° 00' W. 149.1 feet from the Northwest corner of Lot No. 17 of the Shady Grove Subdivision as recorded in Vol. 1, at Page 48 of the Plat Records of Kerr County, Texas for the Northeast corner of this tract; THENCE S 88° 00' W. a distance of 501.00 feet to an iron stake set for the Northwest corner of this tract; THENCE S 2° 00' E. a distance of stake set for the Southwest corner of THENCE approximately parallel to Louis Schreiner Fidld, S 48° 47' E. a to a point in the West line of said 7 Southeast corner hereof; 408.36 feet to an iron this tract; the main runway of said distance of 687.45 feet J.0 foot road for the THENCE the West line of said 70.0 foot road, N 2° 00' W. a distance of 879.10 feet to the place of beginning and containing 7.404 Acres of land more or less. _, ~- - --- z. CONSIDERATION In consideration of the foregoing, Lessee is bound and obligated: (a) To pay to the Lessors at Kerrville, Kerr County, Texas, the sum of Seventy-three and 50/100 ($73.50) Dollars and payable on the tenth (10th) day of each month. (b) To provide and maintain his own water supply with such water meeting the requirements for State approval. (c) To maintain all buildings constructed on said lands in a state of good repair at all times during the life of this lease. (d) To save and keep harmless Lessors in all respects by reason of its occupancy and use of any portion of the airfield, and by reason of any acts of its agents, employees, servants and any other person or thing on said premises, to effectuate which Lessee shall carry liability insurance in the amounts of not less than $50,000 each person, $100,000 each accident, and $50,000 property damage, showing Duqosh Aircraft Service Co., Inc. as Operator and Lessee, and the policy endorsed showing the City of Kerrville, Texas and Kerr County, Texas, as collateral interest as Owners and Lessors. All insurance policies covering all interest specified in this lease shall be submitted to Lessors and shall be subject to acceptance by Lessors by their standards as to company and/or group stability. (e) Lessee shall at all times during the continuance of this agreement, at his own expense, provide for adequate and sanitary disposal of sewage in accordance with State Health Department recommendations; keep the said premises free from trash, junk and garbage, and provide for the off-airport premises disposal of any such trash, junk and/or garbage. 3. TERM OF LEASE The Lease of the above described premises shall be for a term of twenty (20) years, commencing from the original date of execu- tion being August 26, 1969; provided, however, that on or before the expiration date of the primary term of this lease that Lessee shall have the right and option to renew this lease for an additional 10 years for the same rental and under the same terms, covenants and agreements of this lease. Lessee shall have the right to exercise said option by giving notice in writing by Registered mail, addressed to Lessor at the same address rental checks are mailed to, on or before ninety (90) days of the date of expiration of this lease. 4. PURPOSE OF LEAS$• This lease is executed for the mutual advantage of the parties hereto and for the benefit of Lessors, their population and the general public. It is particularly stipulated by the parties to this lease agreement that the buildings and premises hereinabove described and hereby leased are to be used for the purpose of maintenance, service, repair, modification and testing of aircraft, aircraft engines and power plants, and the manufacturing and sale of aircraft and aircraft parts, components and accessories, aircraft instruments, aircraft engines and power plants and such other purposes as may be incidental hereto, servicing and storage of aircraft and for all other purposes allied with aerospace or aviation, and - 2 - for the further purposes of flying instructions and charter service, excluding, however, herefrom the right to engage in the sale of petroleum products used for aircraft fuel and engine lubricants. 5. COMPLIANCE WITH REGULATIONS Lessee obligates himself to comply with all regulations set up by the Federal Aviation Agency, federal, state and municipal laws, and will not permit the premises covered by this lease agreement to be used for any unlawful or improper purposes. 6. TERMINATION This lease agreement may be terminated by: (a) Lapse of time; (b) After the expiration of one (1) year from commencement of operations, forfeiture in the event Lessee fails for any con- secutive six (6) months to have on its payroll three (3) regular employees employed either on the lease premises or on any premises leased by Lessee from Lessor heretofore, which condition of affairs would render this lease agreement subject to cancellation, and in which event Lessee agrees to deliver up said premises. Should Lessee's operations be discontinued for more than (6) months as a result of a strike or vis major, such discontinuance shall not be considered as ground for termination of this lease agreement. (c) The United States Government requiring the use of said premises in the event of a national emergency or for any defense program or defense purpose on the part of the government, in which eve..^.t Lessee agrees to deliver up possession within ninety (90) days after notice. After use by the United States Government has terminated, if in fact the government has taken over the airport, then the said Lessee is entitled to re-enter the lease premises covered by this lease agreement and resume its operation, and such loss of time shall be added to the term of the lease agreement so that the full term may be enjoyed by Lessee without being penalized with the occupancy of the United States Government. If the United States Government does take over said airport as here provided, then such time of occupancy by the government would be construed as coming within the provisions of subsection (b) of this item 6, and shall not be considered as a lapse of this agreement. (d) Provided always, and these presents are upon this condition, that if Lessee does not or shall neglect or fail to perform and observe any or either of the covenants contained in this instru- ment which on its part are to be performed, or shall be declared bankrupt according to law, or if any assignment shall be attempted to be made of said property for the benefit of creditors, then in either of said cases, but subject to subsection (e) hereinbelow, Lessors lawfully may immediately or at any time thereafter, and whilst such neglect or default continues, and after thirty (30) days notice or demand, enter into and upon the said premises or any part thereof in the name of the whole and repossess the same as of their former estate, and expel the Lessee and remove his effects (forcibly, if necessary) without being taken or deemed guilty of any manner of - 3 - --~---~-,-,.-,r-~ .~,~- - - - -----~--~-~---,---^^--~-r--.^^.'--- t ~ trespass, and without prejudice otherwise be used for possession that upon entry as aforesaid the shall cease and be ended; to any remedies which might or for arrears of rent, and rights of Lessee in this lease (e) Should Lessee fail to perform and observe or neglect to perform for a period of ninety (90) days within which time Lessee shall have the opportunity to correct such neglect or omission, after which period of time inspection shall be had (to be made by competent engineers) to determine whether compliance has been met before such failure or neglect to perform may be considered as a ground for termination. 7. REMOVAL OF IMPROVEMENTS Lessee will from time to time erect additional improvements upon the leased premises and it is specifically recognized that all such improvements so installed heretofore or hereafter by Lessee are recognized as Lessee's property by Lessor and Lessors have heretofore and now recognized the right of Lessee to remove all improvements placed on said premises after the termination of the lease agreements, provided that such removal shall be at the sole expense of Lessee. 8. DELIVERY OF POSSESSION Lessee obligates himself to deliver up possession of the premises covered by this lease agreement in a good state of repair at the termination of this contract, whether terminated by lapse of time, forfeiture, demand of the government, or otherwise, normal wear and tear excepted. 9. SUB-LEASE Lessee shall not be permitted to sublet the whole of the premises hereby leased except with the written consent of Lessors, however, Lessee shall be permitted to hypothecate and mortgage the premises hereof without the consent of the Lessors. In the event of a foreclosure by such mortgagee, then the purchaser at any such foreclosure sale (including the mortgagee if it be the pur- chaser) shall be substituted as Lessee under ther terms of this lease and this lease shall continue in full force and effect according to its terms; provided, however, that such substituted Lessee shall promptly pay to Lessor any arrears of rent, if any there be, and otherwise properly perform any covenants of this lease which Lessee had theretofore failed or refused to perform. 10. SUPPLY OF MATERIALS, ETC. It if further agreed that should a delay or discontinuance in Lessee's operation be occasioned as a result of inability to purchase materials, equipment or other essential components and parts re- quired in Lessee's operations as a result of short supply, or should each materials, equipment or components and parts be classified by - 4 - ~_ ~ __ .n r yY .51. ~y' the United States Government as strategic and a priority be placed thereon by the government thereby rendering it impossible for the Lessee to obtain same for its operation, then and in either of such events such period of time shall not be considered as a ground for termination under the one (1) year clause or otherwise. 11. INTENANCE OF AIRPORT Lessors agree and are hereby obligated to continue operations of Louis Schreiner Air Field, Kerrville Municipal Airport, during the period of this lease agreement, and to maintain said airfield in good, usable condition and rapair, for which purpose it was created. 12. ENFORCEMENT Any cause of action arising out of and by virtue of the term of this agreement shall be maintainable in Kerr County, Texas, only. 13. SUCCESSORS AND ASSIGNS This agreement shall be binding upon the parties hereto, their successors, legal representatives and assigns; and it is expressly agreed and understood that if any portion of this lease agreement shall be declared invalid by the operation of any statute or by any court decision, then and in either event, such partial invalidity shall never destroy or vitiate the entirety of this lease. IN WITNESS WHEREOF, the parties hereby have hereunto set their hands in duplicate on this the day of , 1976, pursuant to the ordinance and resolution heretofore enacted, duly authorizing the execution of this lease by the signatories appended thereto. LESSORS: CITY OF KERRVILLE, TEXAS n , Mayor ATTEST• ' ~ t/Y ! f City Clerk B~ ATTEST: ~,-' < , ~ _.. County Clerk and Ex Officio Clerk of the Commissioners Court of Kerr County, Texas - 5 - yy ~ 4 F' C(1TINTV (1F KF.RR KER?.NIECE-KERB COUN'I'X~JOINT AIRPOI'~T BOARD ~ -'' /'~ //_ ~/ f arry A Turnpaugh.,, hai an .Jack Auld, Vice-Chairman ~,, ,!;1 C ' G. i ,_ - is %. Dr. C. C. Jones~'Jr., Member `- __ 4~ oR sa Lea Meek, Membe r L. W-W~~~~~~. Vansant, Member ATTEST: ~ ~ ,~ i Mrs. Gene-Barton, Secretary LESSEE: DUGOSH AIRCRAFT SERVICE CO., INC. `Charlie Leroy ~Y[igosh, ~ esident ATTEST: ,, / j A4rs. Barbara Dugosh, Secretary Approved by Action taken at a meeting of the Kerrville--Kerr County Joint Airport Board, January 27, 1976. ,> Gene Barton, City Clerk City of Kerrville, Texas - 6 - ~iM~i~i~C ~ ^.. i~ ~ ~h ~ ~ ~ I °~11 ~'r.]V __ _ ~ -- ~~ I ~~ iG ~ ~-~k 1 '~ ~~s r.;f= ;~~ ~.~' P z ' - ..~,; ~n ' ~ l~ -1 c. ti C. 16 ~ y t __..._ r ,~~; i ~.,~ t ~ t I +~r f X7,11 i?y ' ~' ±ra~ l~' {{P } j~jl i iC) }11 1 .} ;; , ~' ~~ ~. ~I 4 ~, ;?;, ~: ,. 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