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HomeMy WebLinkAboutContract 20061 I I i i I LEASE AGREEMENT i BETWEEN I THE CITY OF FORT WORTH, TEXAS AND ALLIANCE AIR SERVICES, INC. (December dam, 1993) ,I fJFrRNliAlkL i C O N T E N T S Article page Introduction. . . . . . . . . . . . . . . . 1 1 Term. . . . . . . . . . . . . . . . . . . 2 2 Leased Premises 5 3 Use of Leased Premises . 7 4 Rent and Use Fees . . . . . . . . . . . 7 5 Acceptance, Care, Maintenance, Improvements and Repair . . . . . . . . . . , 12 6 Additional Obligations of Lessee. . . . . . . . . . . 19 7 Ingress and Egress . . . . . . . . . . . . . . . . . . 27 8 Insurance, Damage or Destruction. . . . . . , . . . . 28 9 Liabilities, Insurance and Indemnification. . . . . 34 10 Rules and Regulations and Minimum Standards . . , . . 37 11 Signs . , . , . . . . . . . . . . . . . 38 12 Leasehold Mortgages , Subletting, and Assignment . . . 39 13 Condemnation. . . . . . . . . . . . . . . . . . . . . 46 14 Non-Discrimination. . . . . . . . . . . . . . . . . . 47 15 Governmental Requirements . . . . . . . . . . . . . . 51 16 Rights of Entry Reserved. . . . . . . . . . . . . . . 53 17 Additional Rents and Charges . . . . . . . . . . . . . 56 18 Termination by. the City . . . . . . . . . . . . . . . 57 19 Termination; Remedies; Surrender; and Right of Re-Entry . . . . . . . . . . . . . . . . 64 20 Services to Lessee. . . . . . . . . . . . . . . . . . 69 21 [ INTENTIONALLY LEFT BLANK] . . . . . . . . . . . . . . 70 22 [ INTENTIONALLY LEFT BLANK] . . . . . . . . . . . . 70 23 Limitation of Rights and Privileges Granted . . . . . 70 24 Notices . . . . . . . . . . . . . . . . . . . . . . . 71 25 Holding Over . . . . . . . . . . . . . . . . . . . . 74 26 Invalid Provisions . . . . . . . . . . . . . . . . . 75 27 Miscellaneous Provisions . . . . . . . . . . . . . . . 75 28 Subordination Clauses . . . . . . . . . . . . . . . . 82 29 Venue . . . . . . . . . . . . . . . . . . . . . . . . 87 30 Entire Agreement. . . . . . . . . . . . . . . . . . . 87 ScheduleA. . . . . . . . . . . . . . . . . . . . . . 89 Appendix A. . . . . . . . . . . . . . . . . . . . . . 92 - i - Exhibit A-1 : Legal Description of Parcel No . 3 Exhibit A-2 : Legal Description of the "Fire Station Tract" Exhibit A-3 : Diagram of Transient Apron Areas Exhibit B: Minimum Standards Exhibit C: Pledge Agreement Exhibit D: Legal Description of Parcels No. 1, No. 2, and No. 4 Exhibit E: Right of First Refusal/opportunity Exhibit E-1 : Description of Refusal Property i LEASE AGREEMENT This Agreement of Lease, made and entered into this 5 day of December, 1993, by and between: CITY OF FORT WORTH, TEXAS, having offices at 1000 Throckmorton, Ft. Worth, TX. 76102, hereinafter referred to as the "City"; and ALLIANCE AIR SERVICES, INC. , a formerly known as Pinnacle Air Services, Inc. , Texas corporation,A having an office at 2250 Alliance Boulevard, Fort Worth, Texas 76117, hereinafter referred to as the "Lessee" . Lessee ' s Federal Identification Number is 75-2287869 . WITNESSETH THAT: WHEREAS, the City is the owner of an airport consisting of approximately 520 acres of land and facilities known as the Fort Worth Alliance Airport, located in the Counties of Denton and Tarrant in the State of Texas, hereinafter, the "Airport" ; and WHEREAS, the City desires to accommodate, promote, and enhance both general and commercial aviation at the Airport, and Lessee desires to provide aeronautical facilities at the Airport; and - 1 - WHEREAS, the City and the Lessee are mutually desirous of entering into a Lease Agreement (hereinafter , the "Agreement" ) to accomplish the above—described objectives . NOW, THEREFORE, in consideration of the premises and of the rents, covenants, and conditions herein contained, the City does hereby lease to the Lessee the area of the Airport described in Article 2 hereof, hereinafter referred to as "the Leased Premises" , during the term hereof for the term and pursuant to the conditions hereinafter set forth. ARTICLE 1 TERM The term of this lease shall be for a period of 30 years beginning on the "Effective Date" , unless sooner terminated in accordance with the provisions hereof . The "Effective Date" is defined to be the date on which the City approves plans and specifications and issues a building permit for the "Initial Improvements" (as defined in Section 4 . 4 below) . 1 .2 Lessee shall have the right to divide the Leased Premises (hereinafter defined) into separately platted portions (a "Platted Portion" ) for the sole purpose of constructing Improvements (hereinafter defined) on such 2 Platted Portions; including the right to further divide such Platted Portions for the sole purpose of accommodating additional construction. When Lessee desires to divide any portion of the Leased Premises into Platted Portions, Lessee shall , at Lessee ' s expense., prepare a map and legal descriptions of such Platted Portions and shall submit such map and descriptions to the City Manager of the City of Fort Worth for the Manager ' s approval . The City Manager shall approve such map and legal descriptions if the Manager determines that the Leased Premises are being divided into Platted Portions in such manner that each Platted Portion retains reasonable access to the Transient Apron (hereinafter defined) and to adjacent public roadways . It is agreed and understood that any such map and legal descriptions shall be used only for the purpose of describing portions of the Leased Premises and shall not constitute a plat or a subdivision of land within the meaning of Chapter 212, Subchapter A of the Texas Local Government Code. The City and Lessee shall execute a separate lease agreement ( in substantially the form of this Agreement, to 3 the extent applicable; provided, however, that (i) plans and specifications for subsequently constructed Improvements must be submitted within 12 months after any request to plat or replat a Platted Portion and construction of such Improvements must be substantially completed within 18 months after the City has approved the plans and specifications and issued a building permit and ( ii) the term of all separate leases shall begin when certificates of occupancy are issued for such Improvements and shall be concurrent with the term of this Agreement) for each such Platted Portion; whereupon, such Platted Portion shall become the leased premises for the purposes of such separate lease. Upon the execution of such separate lease, the Platted Portion covered thereby shall no longer be part of the Leased Premises under this Agreement; and no default under this Agreement shall be a default under any such separate lease; and no default under such separate lease shall be a default under this Agreement or under any other separate lease. Lessee ' s obligations described in Sections 4 .4 and 4 . 6 of this Agreement shall only apply to the separate lease for the - 4 - Platted Portion on which the Initial Improvements will be constructed. ARTICLE 2 LEASED PREMISES 2 . 1 The "Leased Premises" consist of : 2 . 1 . 1 The real property (identified as "Parcel No. 3" ) described in Exhibit A-1 attached hereto and made a part hereof (save and except those portions of said Parcel No. 3 that are currently being leased to Pinnacle Air Services, Inc. pursuant to written leases from the City) ; which parcel includes approximately 175,067 net square feet of unimproved land; 2 . 1 . 2 The real property ( identified as the "Fire Station Tract" ) described on Exhibit A-2 attached hereto and made a part hereof; 2 . 1 .3 Upon expiration of the written leases referenced in Section 2 . 1 . 1 above, the real property (but not the improvements located or constructed thereon) covered by such leases; and 5 2 . 1 . 4 All improvements (collectively, the "Improvements" ) currently constructed on the Fire Station Tract and hereafter constructed on the real property described in Section 2 . 1 . 1 above. 2 . 2 Lessee shall also have the non-exclusive use of that portion of the paved aircraft parking apron (the "Transient Apron" " ) that abuts Parcel No. 3 . The apron area for the leased parcel is shown on Exhibit A-3 attached hereto . If at any time during the term of this Agreement Lessee is not the operator of the Airport, then Lessee, as further consideration for Lessee ' s use of the Transient Apron, shall keep and maintain the Transient Apron free of trash, debris, and other foreign objects that result from the use of the Transient Apron by Lessee or anyone claiming a right by, through, or under Lessee. The City or the Airport operator shall otherwise be responsible at all times for the maintenance and reconstruction of the Transient Apron and shall maintain and keep the Transient Apron free from snow and ice; all at the sole cost and expense of the City or the Airport operator . The timing of such maintenance and reconstruction shall be at the City' s sole discretion. 6 2 .3 The Transient Apron is not a part of the Leased Premises . ARTICLE 3 USE OF LEASED PREMISES Lessee shall occupy and use the Leased Premises for any lawful purpose and in a manner which conforms to the City' s Minimum Standards for Fixed Base Operators and Other Airport Tenants, as may be amended from time to time . ARTICLE 4 RENT AND USE FEES 4 . 1 For use and occupancy of the Leased Premises and privileges herein granted, the Lessee agrees to pay to the City: 4 . 1 . 1 During the period commencing on the Effective Date, an annual rental equal to ( i) 190 per square foot multiplied times ( ii) the number of square feet within the Leased Premises (determined in accordance with Section 2 . 1 . 1 and Section 2 . 1 .3 above) , subject to adjustment pursuant to Section 1 .2 above and Sections 7 4 . 2 and 4 . 7 below and pursuant to Article 19 hereof (upon partial termination) ; plus 4 . 1 . 2 During the period commencing when this Agreement is fully executed and ending December 31, 2007, an amount per year equal to $10,000 . 00 (which sum shall be used for debt service payments on bond indebtedness issued by the City to finance the improvements on the Fire Station Tract) ; plus 4 . 1 . 3 During the period commencing January 1 , 2008, rental ( in addition to the rental paid pursuant to Section 4 . 1 . 1 above) equal to ( i) $2 . 00 per square foot multiplied times ( ii) the number of usable square feet contained in any permanent improvements currently constructed on the Fire Station Tract, subject to adjustment (beginning on January 1, 2009) according to the formula described in Section 4 . 2 below. 4 .2 Commencing on the first anniversary of the Effective Date, and on each anniversary thereof during the remainder of the term of this Agreement and any extension thereof , the ground rental rate set forth in Section 4 . 1 . 1 above shall be adjusted based upon the percentage change in the Consumer Price Index for the Dallas/Fort Worth Metropolitan Area as announced by - 8 - the United States Department of Labor during any preceding 12-month period or in accordance with the formula, index or other method, if any, that is most favorable to Lessee of -any of the formulas, indices, or methods being used and actually applied by the City for the adjustment of any rental rates at Alliance. 4 . 2 . 1 Notwithstanding the per-square-foot rate specified in Section 4 . 1 . 1 above and notwithstanding any adjustment thereof that would result from the application of Section 4 . 2 above, in no event shall the "effective" rental rate paid to the City by Lessee exceed the "effective" rental rate being paid to the City by any other lessee or tenant at Alliance Airport (excluding any lease between the City and the FAA or other U. S . governmental entities) . The "effective" rate shall take into account all financial incentives, as well as non-cash consideration, available to such other lessee or tenant as negotiated by the City. 4 .3 The annual rent payable hereunder shall be paid in equal monthly installments . Each installment shall be made no later than the first day of that month for which payment is due and shall be made at the office of the Airport operator or at such other office as may be directed in writing by the City. The initial - 9 - annual rental pursuant to Section 4 . 1 . 1 shall be $33,262 . 73, payable in monthly installments of $2,771 . 89 . The annual rental payable pursuant to Section 4 . 1 .2 shall be $10 ,000 . 00, payable in monthly installments of $833 .33 . The initial annual rental pursuant to Section 4 . 1 .3 shall be $9 , 000 . 00 , payable in monthly installments of $750 . 00 . 4 . 4 The Lessee, as additional rent, shall construct improvements on Parcel No. 3 (the "Initial Improvements" ) , the size and scope of which Initial Improvements will be determined by Lessee based on market demands; however, Lessee agrees that the Initial Improvements will conform to the provisions of Appendix A attached hereto . Notwithstanding any other provision of this Agreement to the contrary, the Initial Improvements will only be required to conform to the Minimum Standards attached hereto as Exhibit B. - Plans and specifications for the Initial Improvements must be submitted to the City within 12 months after this Agreement is fully executed, and Lessee shall substantially complete the Initial Improvements within 18 months after the City has approved Lessee' s plans and specifications and issued a building permit . 10 - 4 . 5 The Lessee hereby agrees to pay all fuel flowage fees, landing fees and tie down fees imposed by the City from time to time, provided such fees are not unjustly discriminatory. 4 . 6 Lessee further agrees to obtain, or to cause a professional third party to obtain, an FBO permit on or before the date on which the Initial Improvements are substantially complete. Notwithstanding anything in this Agreement to the contrary, however, the standards applicable to obtaining said FBO permit shall be the Minimum Standards attached herewith as Exhibit B. Notwithstanding the foregoing, Lessee (or a professional party) shall have a non—exclusive right to conduct FBO operations from temporary facilities (located on property currently being leased to Pinnacle Air Services, Inc . pursuant to written leases from the City) until the Initial Improvements are operational . The size and scope of such temporary facilities and interim FBO operations will be determined by Lessee based on market demands . 4 . 7 Notwithstanding any other provision of this Agreement, in the event the enforceability or validity of any provision of the Management Agreement between the City and Alliance Air Services, Inc. (dated December 1993) for the Management, Operation, and Maintenance of Fort Worth Alliance Airport) is hereafter challenged by the City or any third party:. (i) and such challenge results in termination of said Management Agreement, then Lessee shall be entitled to offset against rental and other sums owed by Lessee to the City hereunder the amount, if any, of Alliance' s "Risk Amount" (as defined in said .. Management Agreement) ; and (ii) if such challenge does not result in such a termination, then Lessee shall be entitled to a similar offset in an amount equal to all actual and reasonable costs and expenses paid or incurred by Alliance in responding to and defending against such challenge; but such amount shall not exceed the net ground rental paid to the Airport operator (excluding any ground rental paid directly to the City) during the first 20 years of this Agreement . ARTICLE 5 ACCEPTANCE, CARE, MAINTENANCE, IMPROVEMENTS AND REPAIR 5 . 1 Lessee warrants it has inspected the Leased Premises and accepts possession of the Leased Premises and the improvements thereon "as is" in its present condition, and subject to all limitations imposed upon the use - 12 - thereof by the rules and regulations of the Federal Aviation Administration and by ordinances of the City, and admits its suitableness and sufficiency for the uses permitted hereunder . Except as may otherwise be provided for herein, the City shall not be required to maintain nor to make any improvements, repairs, or restoration upon or to the Leased Premises or to any of the improvements presently located thereon. The City shall not have any obligation to repair , maintain, or restore, during the term of this Agreement, any improvements placed upon the Leased Premises by the Lessee, its successors and assigns . 5 . 2 The Lessee shall , throughout the term of this Agreement, assume the entire responsibility, cost, and expense, for all repair and maintenance whatsoever on the Leased Premises and all Improvements thereon in a good workmanlike manner, whether such repair or maintenance be ordinary or extraordinary, structural or otherwise. Additionally, the Lessee, without limiting the generality hereof, shall : 5 . 2 . 1 Keep at all times , in a clean and orderly condition and appearance, the Leased Premises, all Improvements thereon and all of the Lessee ' s fixtures, equipment - 13 - and personal property which are located on any part of the Leased Premises . 5 . 2 . 2 Provide and maintain on the Leased Premises all obstruction lights and similar devices, and safety equipment required by law. 5 .2 . 3 Repair any damage caused by Lessee to paving or other surface of the Leased Premises caused by any oil , gasoline, grease, lubricants or other flammable liquids and substances having a corrosive or detrimental effect thereon. 5 . 2 . 4 Take measures to prevent erosion, including but not limited to, the planting and replanting of grasses with respect to all portions of the Leased Premises not paved or built upon, and in particular shall plant, maintain and replant any landscaped areas . 5 . 2 . 5 Be responsible for the maintenance and repair of all utility services lines placed on the Leased Premises and used by the Lessee exclusively, including, but not limited to, water lines, gas lines, electrical power and telephone conduits and lines, sanitary sewers and storm sewers . - 14 - 5 . 3 In the event the Lessee fails : (a) to commence to maintain, clean, repair, replace, rebuild or repaint within a period of thirty (30)* days after written notice from the City to do any maintenance or repair work required to be done under the provisions of this Agreement, other than preventive maintenance; (b) or within a period of ninety (90) days if the said notice specifies that the work to be accomplished by the Lessee involves preventive maintenance only; (c) or to diligently continue to completion any repairs , replacement, rebuilding, painting or repainting as required under this Agreement; then, the City may enter the Leased Premises involved, without such entering causing or constituting a termination of this Agreement or an interference with the possession of the Leased Premises, and repair, replace, rebuild or paint all or any part of the Leased Premises or the Improvements thereon, and do all things reasonably necessary to accomplish the work required, and the cost and expense thereof shall be payable to the City by the Lessee on demand. Provided, however , if in the opinion of the City, the Lessee' s failure to perform any such maintenance endangers the safety of the public, the employees or property of the City or other tenants at the Airport, and the City so states same in its notice to the Lessee, the City may elect to - 15 perform such maintenance at any time after the giving of such notice, and the Lessee agrees to pay to the City the cost and expense of such performance, on demand. The City' s* costs and expenses shall include, but not be limited to, all direct and indirect costs and expenses of the City, its agents, contractors, and employees and all financing charges, if any, and all allocations of fringe benefits, overhead, legal , and administration charges the City deems appropriate. Furthermore, should the City, its officers , employees or agents undertake any work hereunder, the Lessee hereby waives any claim for damages , consequential or otherwise, as a result therefrom except for claims for damages arising from the negligence of the City, its agents and contractors . The foregoing shall in no way affect or alter the primary obligations of Lessee as set forth in this Agreement, and shall not impose or be construed to impose upon the City any obligations to maintain the Leased Premises, unless specifically stated otherwise herein. 5. 4 Final plans and specifications for all repairs, construction, alterations, modifications , additions or replacements of Improvements shall be submitted to the City by Lessee pursuant to Section 4 . 4 of this Agreement and be accompanied by the City' s Building 16 Permit Application. The plan shall include landscaping, architectural details and color schemes . The Building Permit Application must receive the written approval of the City, and no such work shall be commenced until such written approvals are obtained from the City which approval shall not be unreasonably withheld or delayed, provided the architectural detail and aesthetics of the Improvements are reasonably satisfactory to the City. The City shall advise the Lessee within thirty (30) days after receipt of the written request, together with copies of the plans and specifications for the proposed Improvements in sufficient detail to make a proper review thereof, of its approval or disapproval of the proposed Improvements, and, in the event it disapproves , stating its reasons therefor . In determining whether to approve a major repair, construction, alteration, modification, addition or replacement, the City shall be guided by the criteria set forth in Section 2 of Appendix A to this Agreement. 5 . 5 If the Lessee makes any Improvements without City approval that are disapproved by the City, then, upon reasonable notice to do so, the Lessee shall remove the same or at the option of the City cause the same to be changed to the reasonable satisfaction of the - 17 - City. If the Lessee fails to comply with such notice within thirty (30) days or to commence to comply and pursue diligently to completion, the City may effect the removal or change without any liability by the City for such removal or change, and the Lessee shall pay the cost thereof (as defined in Section 5 . 3 hereof) to the City. 5 . 6 Upon the completion of construction or installation, title to all Improvements located on the Leased Premises shall remain in the Lessee until the expiration or earlier termination of this Agreement, at which time title shall immediately vest in the City free and clear of any and all claims on the part of the Lessee and free and clear of any mechanics ' and materialmen' s liens by any person on account of any repair or improvement work done or to be done under the terms hereof by the Lessee. This vesting of title in the City at the time specified is a part of the consideration for this Agreement , The City shall not be liable (i) to assume, take subject to, or otherwise be responsible for the payment or performance under any Leasehold Mortgage or ( ii) to the Lessee or the Lessee' s contractors, Sublessees , or anyone else, for 18 the value of any Improvements constructed or located on the Leased Premises . 5 . 7 Lessee agrees to secure its obligations to maintain and repair the Leased Premises through the execution and delivery of a "Pledge Agreement" in the form attached hereto as Exhibit C. A separate pledge agreement will be executed for each Improvement constructed pursuant to this Agreement . The value of the collateral held pursuant to each pledge agreement shall equal or exceed $2 . 00 per net rentable square foot of the applicable Improvement . ARTICLE 6 ADDITIONAL OBLIGATIONS OF LESSEE 6 . 1 The Lessee shall conduct its operations hereunder in an orderly and proper manner, considering the nature of such operation so as not to unreasonably annoy, disturb, endanger or be offensive to others . 6.2 Further, the Lessee shall take all reasonable measures : 6 . 2 . 1 To reduce to a practicable minimum vibrations tending to damage any equipment, structure, buildings or portions of buildings . 19 - Ii 6 .2 .2 Not to produce on the Airport through the operation of machinery or equipment any electrical, electronic or other disturbance that interferes with the operation by the City or the Federal Aviation Administration of air navigational , communication or flight equipment on the Airport or on aircraft using the Airport, or with ground transportation communications . 6. . 3 The Lessee shall control the conduct and demeanor of its officers , agents, employees, invitees and, upon objection from the City concerning the conduct, demeanor of any such person, the Lessee shall immediately take all lawful steps necessary to remove the cause of the objection, If the City shall so request, the Lessee agrees to supply and require its employees to wear badges or other suitable means of identification, which shall be subject to the prior and continuing approval of the Airport operator . 6 .4 The Lessee shall comply with all health and safety laws and requirements and any other federal, state or municipal laws, ordinances, rules, regulations and requirements, applicable to the Leased Premises and the improvements thereon and its operations at the Airport hereunder . 20 - 6 . 5 The Lessee shall comply with all written instructions of the City in disposing of its trash and 'refuse at Lessee' s expense. The Lessee shall be responsible for removal from the Airport, or otherwise disposing of in a manner approved by the City, all garbage, debris and other waste materials (whether solid or liquid) arising out of its occupancy of the Leased Premises or out of its operations . The Lessee shall provide and use suitable covered metal or other rigidly and sturdily constructed receptacles, suitably screened from public view, for all garbage, trash and other refuse created on or arising in connection with the activities conducted on the Leased Premises . Piling of boxes, cartons, barrels or other similar items , in an unsightly or unsafe manner, on or about the Leased Premises is forbidden. The manner of handling and disposing of trash, garbage and other refuse and the frequency of removal thereof from the Airport shall at all times be subject to the rules, regulations and approval of the City. Lessee shall use extreme care when handling, disposing of, and removing all such waste to prevent littering the Airport. 6 . 6 The Lessee shall cause no nuisance, waste or injury on or to the Leased Premises , and shall not do, or permit — 21 — to be done, anything which may result in the creation, commission or maintenance of such nuisance, waste or injury on or to the Leased Premises . 6 . 7 The Lessee shall not do, nor permit to be done, anything which may interfere with the effectiveness or accessibility of the drainage system, sewerage system, fire protection system, sprinkler system, alarm system and fire hydrants and *hoses , if any, installed or located on the Leased Premises . 6 . 8 The Lessee shall take measures to insure security in compliance with Federal Aviation Regulations and the Airport Security Plan. 6 . 9 The Lessee shall not overload any floor, structure, structural member or paved area on the Leased Premises, or paved area elsewhere on the Airport, and shall repair at the Lessee ' s expense any floor, structure, structural member, or any paved area damaged by overloading without limiting the Lessee' s obligations pursuant to Article 5 above. 6 .110 The Lessee shall not do, nor permit to be done, any act or thing upon the Leased Premises : 22 - 6 . 10 . 1 which will invalidate or conflict with any fire insurance policies or regulations applicable to the Leased Premises or any part thereof; nor, 6 . 10 .2 which may constitute a hazardous condition that increases the risks attendant upon the operations permitted by this Agreement . 6 . 11 The Lessee shall not use any flammable liquids within any covered or enclosed portion of the Leased Premises, except those oils, solvents and fuels and other liquids used to repair and maintain aircraft and ground equipment as long as such liquids are kept only in working supply quantities . Any other supplies of such liquids shall be kept and stored in safety containers of a type approved by the Underwriters Laboratories . The term "working supply" as used in this Section 6 . 11 shall mean the amount consumed by the Lessee and other parties using the Leased Premises during any normal work day. 6 . 12 From time to time, the City may conduct pressure, water flow, and other appropriate tests of the fire extinguishing system and apparatus, if installed, which constitutes a part of the Leased Premises and the Lessee ' s proportionate share of the cost of such 23 - tests shall be paid to the City by the Lessee upon demand. 6 . 13 Except for uses permitted under Article 3 hereof to be performed by the Lessee or the Lessee ' s subcontractors, the Lessee shall provide prompt written notice to the City of any person, firm or corporation performing aircraft maintenance work, flight instruction of any sort, air taxi , aircraft charter or aircraft leasing of any sort , or any ground taxi services and any other ground transportation for hire on the Leased Premises for commercial purposes without a valid permit from the City. 6 . 14 It is the intent of the parties hereto that noise, including, but not limited to, noise caused by aircraft engine operation, shall be held to a reasonable minimum. To this end, the Lessee will conduct its operations in such a manner as to keep the noise produced by aircraft engines and component parts thereof, or any other noise, to a reasonable minimum by such methods as are practicable, considering the extent and type of the operations of the Lessee. In addition, the Lessee will employ noise arresting and noise reducing devices that are available and economically practicable, considering the extent of 24 - li the operations of the Lessee but in no event less than those devices required by federal , state or local law. In its use of the Leased Premises, the Lessee shall take all reasonable care, caution and precaution and shall use all reasonable efforts to minimize prop or jet blast interference to aircraft operating on taxiway or to buildings, structures and roadways, now located on or which in the future may be located on areas adjacent to the Leased Premises . In the event the City determines that the Lessee has not used all reasonable efforts to curb the prop or jet blast interference, the Lessee hereby covenants and agrees to erect and maintain at its own expense such structure or structures as may reasonably be necessary to prevent prop or jet blast interference, subject , however, to the prior written approval of the City as to type, manner and method of construction, which approval shall not be unreasonably withheld. 6 . 15 In the event of any product spills: or other environmentally polluting discharges arising from Lessee ' s equipment or caused by Lessee, its employees , agents or servants, clean up of such spills or discharges and the payment of all fines and penalties (including the cost of such cleanup) shall be the sole responsibility of the Lessee. The Lessee shall 25 — immediately commence containment and clean up operations as necessary for operational or safety consideration and shall notify the City and the appropriate state and federal authorities immediately of the spill and such cleanup operation. Such cleanup shall be to the standards required by the U. S . Environmental Protection Agency and any other agency with jurisdiction over the Leased Premises . A spill or discharge means a discharge of any petroleum or hazardous substance which is in such quantity or concentration as may be harmful or which poses a foreseeable risk of harm to public health or welfare or to natural resources or which is defined as a spill or discharge by federal , state, or local laws , or ordinances . All costs of containment or clean up for such spill or discharge shall be borne by the Lessee . The Lessee shall comply with all applicable federal and state laws, regulations and rules regarding aboveground and underground storage tanks . The obligations of Lessee under this Section 6 . 15 shall survive the termination of this Agreement . - 26 - I. ARTICLE 7 INGRESS AND EGRESS 7 . 1 The Lessee shall have the right of ingress and egress between the Leased Premises and the public landing areas at the Airport by means of connecting taxiways; and..between the Leased Premises and the entrance(s) to the Airport by means of connecting paved roads . Such rights of ingress and egress shall be in common with others having rights of passage thereon. 7 .2 The use of any such roadway or taxiway shall be subject to the Rules and Regulations of the Airport which are now in effect or which may hereafter be promulgated. The City may, at any time, temporarily or permanently, close or consent to, or request the closing of, any such roadway or taxiway and any other way at, in or near the Leased Premises presently or hereafter used as such, so long as a reasonable means of ingress and egress as provided above remains available to the Lessee. The Lessee hereby releases and discharges the City, its officers , employees and agents, all other governmental authorities and their respective successors and assigns, of and from any and all claims, demands, or causes of action which the Lessee may now or at any time hereafter have against - 27 - any of the foregoing, arising or alleged to arise out of the closing of any street, roadway or other area, provided that a reasonable means of access to the Leased premises remains available to the Lessee. The Lessee shall not do or permit anything to be done which will interfere with the free access and passage of others to space adjacent to the Leased Premises or in any streets or roadways on the Airport . ARTICLE 8 INSURANCE, DAMAGE OR DESTRUCTION 8 . 1 To safeguard the interest and property of the City, the Lessee at its sole cost and expense shall procure and maintain throughout the term of this Agreement insurance protection for all risk coverage on the Improvements and structures located on the Leased Premises, to the extent of one hundred percent (100%) of the actual replacement cost thereof . Such insurance shall be written by insurers of recognized financial standing and authorized to conduct business in the State of Texas . If said insurers become financially incapable of performing under the terms of said policy, the Lessee shall promptly obtain a new policy issued by a financially responsible and 28 authorized carrier and shall submit such new policy as previously provided. 8 . 1 . 1 The property insurance shall provide for thirty (30) days notice of cancellation or material change, by registered mail , to the City, Attention: City Manager, and the Airport Manager . 8 . 1 . 2 The Lessee shall settle all losses with the insurance carrier and shall consult with the City and use all reasonable efforts to obtain a settlement that covers the cost of repairing or rebuilding. 8 . 1 . 3 The Lessee shall provide certificates of insurance, marked "premium paid" , evidencing existence of all insurance required to be maintained prior to the commencement of this Agreement . Upon the failure of the Lessee to maintain such insurance as above provided, the City, at its option, may take out such insurance and charge the cost thereof to the Lessee, or City may give notice of default hereunder pursuant to Article 18 herein. 8 . 2 In the event any Improvements, insurable or uninsurable, on the Leased Premises are damaged or destroyed, the use of all insurance proceeds and - 29 - Lessee' s obligations, if any, to rebuild shall be governed solely by any Leasehold Mortgage(s) that covered the Improvements at the time of the damage or destruction. If the damaged or destroyed Improvements are not covered by any Leasehold Mortgages (or if covered by a Leasehold Mortgage, the Leasehold Mortgagee does not require Lessee to rebuild) , the Lessee shall have the election of repairing or reconstructing the Improvements substantially as they were immediately prior to such casualty or in a new or modified design, subject to the provisions of Sections 8 .3 and 8 . 4 below, Article 5 hereof, and applicable building codes existing at the time of repairing or rebuilding; or, notwithstanding the provisions of Article 5 hereof, not to reconstruct the Improvements, in which case the provisions of Section 8 . 5 below shall apply. The Lessee shall give the City written notice of its election hereunder within sixty (60) days after the occurrence of such casualty or the adjustment of the claim, whichever is later . In the event of damage or destruction to any of the Improvements upon the Leased Premises , the City shall have no obligation to repair or rebuild the Improvements or any fixtures, equipment or other personal property installed by the Lessee pursuant to this Agreement . - 30 8 . 3 I£ the damaged or destroyed Improvements are not covered by any Leasehold Mortgages, the insurance proceeds shall be paid to an escrow agent (the "Escrow Agent") mutually agreed upon by the Lessee and the City. If the Lessee elects to repair or reconstruct the damaged Improvements, to the extent that any loss is recouped by payment to the Escrow Agent of the proceeds of the insurance, the amount of such proceeds, together with any interest thereon, will be paid to the Lessee to the extent necessary to cover its costs of rebuilding or repairing the portion or all of the Leased Premises which have been damaged or destroyed. Such payments will be made by the Escrow Agent to the Lessee, subject to the prior written approval of the City, in installments as work progresses provided that as to each request for payment the Lessee shall certify to the Escrow Agent and the city by a responsible officer or authorized representative that the amounts requested are due and payable to its contractor for work completed. Upon completion of all the work, the Lessee shall certify to the Escrow Agent and the City by a responsible officer or authorized representative that such rebuilding and repairs have been completed, that all costs in connection therewith have been paid by the - 31 - Lessee and said costs are fair and reasonable and said certification shall also include an itemization of costs . If the insurance proceeds are not sufficient, the Lessee agrees to bear and pay the deficiency. If the insurance proceeds are in excess of all costs incurred, the Escrow Agent shall pay such excess proceeds to Lessee. Nothing herein contained shall be deemed to release the Lessee from any of its repair , maintenance or rebuilding obligations under this Agreement . 8 .4 In the event the Lessee elects to repair or reconstruct as provided in Section 8 .3 above, Lessee, if it elects to continue its operation on the Airport , shall , at its expense, replace and repair any and all fixtures, equipment and other personal property necessary to properly and adequately continue its airport business on the Airport, but in no event shall Lessee be obligated to provide equipment and fixtures in excess of those existing prior to such damage or destruction except for requirements of construction codes existing at the time of repair or replacement . During such period of repair or replacement, the rentals provided for elsewhere herein shall be proportionately abated during the period from the date of such damage, destruction or loss until the same is 32 - repaired, replaced, restored or rebuilt, according to the portion of the Improvements on the Leased Premises that are used only for repair or rebuilding of same and not for the uses described in Section 3 . 1 . Such abatement shall not exceed the actual time required for arranging for and the doing of such work. The proportional amount of reduction of rentals will be reasonably determined by the City. The Lessee agrees that such work will be promptly commenced and prosecuted to completion with due diligence; subject to delays beyond the Lessee ' s control . 8 . 5 If the damaged or destroyed Improvements are not covered by any Leasehold Mortgages (or if covered by a Leasehold Mortgage, the Leasehold Mortgagee does not require Lessee to rebuild) and if the Lessee shall elect not to repair or to reconstruct the damaged Improvements, the Lessee shall, at its own cost and expense remove all debris resulting from - such damage to the Leased Premises including foundations, concrete piers, pavement, etc . , stub up utilities and restore the surface to a level condition at its original elevation and the Escrow Agent shall deliver the balance of the insurance proceeds to the City. Upon completion of such debris removal and restoration, and the insurance proceeds payment by the Escrow Agent to 33 - the City, Lessee may elect to terminate this Agreement or continue to use the Leased Premises for other aeronautical purposes . There shall be no obligation on the part of the City or the Escrow Agent to reimburse the Lessee from the insurance proceeds for the loss or damage to fixtures, equipment or other personal property of the Lessee. The Lessee, for its own protection, may separately insure such fixtures , equipment or other personal property as its interests may appear . ARTICLE 9 LIABILITY, INSURANCE AND INDEMNIFICATION 9 . 1 The City shall in no way, nor under any circumstances be responsible for any property belonging to the Lessee, its officers, agents, employees, licensees, invitees, tenants, guests , patrons , contractors and subcontractors, which may be stolen, destroyed or in any way damaged, and Lessee hereby covenants and agrees to indemnify, hold harmless, and defend the City, and its officers, agents and employees from and against any and all such claims . 9 .2 The Lessee hereby covenants and agrees to ( i) indemnify, hold harmless , and defend the City, and its - 34 officers, agents and employees from and against any and all claims or suits for property damage and/or personal injury, including death, to any. and all persons, of whatsoever kind or character, whether real or asserted, arising out of or in connection with the operation, maintenance, use, or occupancy of the Leased Premises by the Lessee, its officers, employees, contractors, subcontractors, licensees, or tenants, and ( ii) provide such insurance as required in Section 9 . 3 hereof covering the acts and omissions of all named insureds, including the City; and the Lessee hereby assumes all liability and responsibility for such claims or suits . The Lessee likewise shall assume all responsibility and liability for, and shall indemnify and hold harmless the City for any and all injury or damage to Alliance Airport, the Leased Premises or their facilities, arising out of or in connection with the operation, maintenance, use or occupancy of the Leased Premises, by the Lessee, its officers, employees, contractors, subcontractors , licensees, or tenants . Upon the filing with the City of a claim for damages or injuries arising out of or in connection with the incidents for which the Lessee herein agrees to indemnify and hold the City harmless, the City shall - 35 - immediately notify the Lessee of such claim, and in the event the Lessee does not settle or compromise such claim, then the Lessee shall provide, at Lessee ' s expense, the legal defense for the City should any litigation or arbitration result from such claim. 9 .3 In addition to the Lessee' s undertaking, as stated in this Article, and as a means of further protecting the City, its officers, agents, servants and employees, the Lessee shall at all times during the term of this Agreement obtain and maintain in effect insurance coverage consistent with the requirements of Section 9 .2 hereof and Schedule A attached hereto and made a part hereof . In this connection, the Lessee agrees to require its contractors doing work on the Airport, and the Lessee ' s tenants and sublessees, to carry adequate insurance coverage. 9 .3 . 1 The Lessee shall review its coverage annually and increase the minimum liability insurance set forth in Schedule A to an amount when, in the Lessee ' s opinion, the risks attendant to the Lessee ' s operations hereunder have increased. The City shall not be liable for any shortfall in Lessee ' s coverage or the coverage of Lessee' s tenants or sublessees . In no event shall the Lessee allow such insurance coverage - 36 - to be below the minimum requirements set forth in Schedule A. Failure to maintain such insurance in the types and amounts specified herein shall c-)nstitute a material and substantial breach of this Lease Agreement . 9 . 4 The Lessee represents that it is the owner of or fully authorized to use any and all services ,':. processes machines, articles, marks, names or slogans used by it in its operations under or anywise connected with this Lease Agreement . The Lessee agrees to save and hold the City, its officers, employees , agents and representatives free and harmless of and from any loss , liability, expense, suit or claim for damages in connection with any actual or alleged infringement of any patent, trademark or copyright, or arising from any alleged or actual unfair competition or other similar claim arising out of the operations of the Lessee under or in anywise connected. with this Agreement . ARTICLE 10 RULES AND REGULATIONS AND MINIMUM STANDARDS From time to time the City may adopt and enforce Rules and Regulations and Minimum Standards with respect to - 37 - the occupancy and use of the Airport . The Lessee agrees to observe and obey any and all such Rules and Regulations and Minimum Standards and all other Federal, State and municipal rules, regulations and laws in effect from time to time and to require its officers, agents, employees, tenants, sublessees, contractors, and suppliers, to observe and obey the same. This provision will include compliance with the Airport ' s Noise Abatement Plan, as promulgated. The City reserves the right to deny access to the Airport and its facilities to any person, firm or corporation that fails or refuses to obey and comply with such Rules and Regulations, laws and Minimum Standards . ARTICLE 11 SIGNS The Lessee shall have the right to install and maintain one or more * signs on the Leased Premises identifying it and its operations, provided, however , the subject matter, type, design, number, location and elevation of such signs, and whether lighted or unlighted, shall be subject to and in accordance with the written approval of the City. No sign will be approved which, in the City' s opinion, may be confusing to aircraft pilots or automobile drivers or - 38 - other traffic or which fails to conform to the architectural scheme of the Airport or meet the requirements of the City. ARTICLE 12 LEASEHOLD MORTGAGES, SUBLETTING, AND ASSIGNMENT 12 . 1 Lessee shall have the right, at any time and from time to time, without the City' s consent, and on terms and conditions determined by Lessee to be appropriate, to mortgage, pledge, grant deed(s) of trust, or otherwise encumber all or any portion of the leasehold estate created hereby and all or any portion of the right, title, and interest of Lessee hereunder (including Lessee ' s interest in the Improvements) , and to assign, hypothecate, or pledge the same as security for the payment of any debt to any holder of a promissory note or other evidence of indebtedness (such notes, mortgages, deeds of trust, and other documents evidencing and securing such loans shall be referred to as a "Leasehold Mortgage" ; and a holder of a Leasehold Mortgage as a "Leasehold Mortgagee" ) . No Leasehold Mortgagee, trustee, or other person claiming by, through, or under any Leasehold Mortgagee shall by virtue thereof acquire any liens on the fee interest of the City in the Leased Premises or any greater - 39 - right in the Leased Premises than Lessee then had under this Agreement, except for the rights expressly granted to such Leasehold Mortgagee, trustee, or other person under the terms of this Agreement . All Leasehold Mortgages shall be subject to all of the conditions, covenants, and obligations of this Agreement and to all of the rights of the City hereunder . Lessee shall also have the right to finance any Improvements (or any additions , alterations , or improvement thereof) through the issuance of bonded indebtedness secured, in whole or in part, by the Leased Premises, the Improvements , or any rents or other revenues resulting therefrom. After the execution and recordation of any Leasehold Mortgage, Lessee or the Leasehold Mortgagee shall notify the City in writing that such Leasehold Mortgage has been given and executed by Lessee and shall furnish the City with the address to which copies of notices should be mailed. The City agrees that it will thereafter give to the Leasehold Mortgagee, at the address so given, duplicate copies of any and all notices in writing which the City may from time to time give or serve upon Lessee under and 40 - pursuant to the terms and provisions of this Agreement . Such Leasehold Mortgagee shall have the same cure rights available to Lessee with respect to any alleged failure by the Lessee to perform under this Agreement, and if the alleged failure is cured, the City will accept such cure tendered by such Leasehold Mortgagee. In addition to the cure rights of a Leasehold Mortgagee as described above, each Leasehold Mortgagee shall also have the right to partially cure any alleged default by the Lessee under this Agreement to the extent that such default affects any portion of the Leased Premises or Improvements covered by its Leasehold Mortgage ( including, but not limited to, a prorated payment of rent and use fees as set forth in Article 4 hereof) . In the event of such a partial cure by a Leasehold Mortgagee, the City agrees that this Agreement shall continue in full force and effect with respect to the portion of the Leased Premises and Improvements covered by the Leasehold Mortgage of such Leasehold Mortgagee; provided, however, all reasonable and necessary City costs related to such documentation, including reasonable and necessary attorneys ' fees, shall be paid to the City by Lessee . The City agrees to reasonably cooperate with Lessee - 41 - and any prospective Leasehold Mortgagee in documenting these partial cure rights in a manner reasonably requested by such Leasehold Mortgagee. No Leasehold Mortgagee shall be or become liable to the City as an assignee of this Agreement or otherwise until it expressly assumes such liability in writing, and no assumption shall be inferred or result from foreclosure or other appropriate proceedings in the nature thereof or as the result of any other action or remedy provided for by any Leasehold Mortgage or other instrument executed in connection with such Leasehold Mortgage or from a conveyance from Lessee pursuant to which the purchaser at foreclosure (or grantee or transferee in lieu thereof) shall acquire the rights and interests of Lessee under the terms of this Agreement . 12 . 2 Lessee may enter into agreements (collectively, "Subleases" ) with sub-lessees, licensees, and concessionaires (collectively, "Sublessees" ) for the right to use or occupy the Leased Premises or the Improvements or any part thereof without the consent of the City; provided, however, all Sublessees must still obtain FBO permits or commercial operating permits, as applicable, from the City in accordance 42 - with the Minimum Standards in effect from time to time. All Subleases shall be subordinate to all the terms, conditions, and covenants of this Agreement, and no such Sublease shall extend beyond the term of this Agreement . 12 .3 Except as provided in Sections 12 . 1 and 12 .2 above, the Lessee covenants and agrees that it will not sell , convey, transfer, mortgage, pledge, or assign this Agreement, or any part hereof, or any interests herein, or any rights created hereby, without the prior written consent of the City. The foregoing notwithstanding, the City, in consideration of the investments by Lessee, agrees that ( i) Lessee may, without the consent of the City, assign all or any portion of its interest in this Agreement, the Leased Premises, or the Improvements to any "Affiliate" ( i .e. , any entity that controls, is controlled by, or is under common control with the Lessee) of Lessee and (ii) the City will consent to the assignment of this Agreement by the Lessee to a responsible third party, provided, that the request for the City' s consent is in writing and presented at least sixty days prior to the date of assignment and provided, further , that the City determines, in its sole discretion and to its satisfaction, that the prospective assignee is - 43 - financially and operationally responsible to fulfill the duties and responsibilities prescribed by this Lease Agreement. The City shall not unreasonably delay action on the Lessee ' s request for its consent; provided, however, that any such consent shall be given only by formal action of the City Council of the City of Fort Worth. 12 . 4 Except as provided in Section 12 . 1 and Section 12 . 2 above, any attempted assignment or transfer of this Agreement, or any rights of the Lessee hereunder , without the prior written consent of the City, shall be void. 12 . 5 Any assignment of this Agreement shall be on the condition that the assignee accepts and agrees to all of the terms, conditions and provision of this Agreement, and agrees to accept and discharge all of the covenants and obligations of the Lessee hereunder, including but not limited to, the payment of all sums due and to become due by Lessee under the terms hereof . 12 . 6 No Sublease shall in any way relieve the Lessee of any of its obligations to the City set forth or arising from this Agreement . Any termination of the Lessee ' s rights hereunder shall only give the City the right to 44 - terminate "below-market" Subleases with Affiliates (defined in Section 12 .3 above) of Lessee. All other Subleases, however, shall survive any termination of Lessee' s rights hereunder, and the rights of such Sublessees shall not be disturbed so long as they perform in accordance with their respective Subleases . Any surviving Sublessee shall be deemed to have agreed to attorn to the City, and from that time the City shall have all of the rights and remedies of Lessee under all such Subleases . 12 . 7 If the Lessee assigns, sells, conveys, transfers , mortgages, or pledges this Agreement in violation of the foregoing provisions of this Article, the City may collect from such assignee or anyone else who claims a right to this Agreement or who occupies the Leased Premises any charges or fees payable by it and may apply the net amount collected to the rents hereuder and no such collection shall be deemed a waiver by the City of the agreements contained in this .' Article nor of acceptance by the City of any assignee, claimant, or occupant, nor as a release of the Lessee by the City from the further performance by the Lessee of the agreements contained herein. - 45 - ARTICLE 13 CONDEMNATION 13 . 1 In the event that the Leased Premises or any part thereof shall be condemned and taken by authority of eminent domain for any purpose during the term of this Agreement or sold to such authority in lieu of a taking (collectively, a "condemnation" ) , any award which shall be made as a result of such condemnation ( i) if for the fee interest in the Leased Premises , shall be paid to the City and ( ii ) if for the leasehold interest in the Leased Premises or for any interest in any Improvements placed, located, or constructed thereon, shall be paid to Lessee and any Leasehold Mortgagees in accordance with the rights under any Leasehold Mortgages, it being understood that the City has fee title to the real property and title to all Improvements thereon is vested in the Lessee until the expiration or earlier termination of this Agreement . Either party, consistent with its rights under applicable law, may appear in any such condemnation proceeding and present its claims for damages , if any, arising from such condemnation. 13 .2 Rentals for that portion of the Leased Premises condemned shall be abated from the date that the - 46 Lessee is dispossessed therefrom; provided, however, if all of the Leased Premises are condemned or if a portion of the Leased Premises are condemned and in the Lessee' s judgment, the remaining portion of the Leased Premises is insufficient for the Lessee ' s operations authorized hereunder, the Lessee may terminate this Agreement and all of its rights and unaccrued obligations hereunder effective as of the date of the taking of the condemned portion by giving the City written notice of its desire to terminate . 13 .3 The Lessee shall be entitled to the award made for a temporary taking of possession of all or part of the Leased Premises for any period of time within the term of this Lease. Such award shall be full compensation to the Lessee for such temporary taking and no claims for damages arising out of the temporary taking shall be made against the City. ARTICLE 14 NON-DISCRIMINATION 14 . 1 The Lessee, for itself and on behalf of its heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with - 47 - the land that in the event facilities are constructed, maintained, or otherwise operated on the Leased Premises, for a purpose for which a United States Government program or activity is extended, the Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21 , Nondiscrimination in Federally-assisted programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964 , and as said Regulations may be amended . 14 .2 The Lessee, for itself and on behalf of its personal representatives, successors in interest and assigns , as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that ( i) no person on the grounds of race, color , or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of the Leased Premises; (ii) that in the construction of any Improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from - 48 - participation in, denied the benefits of, or otherwise be subjected to discrimination, ( iii) that the Lessee shall use the Leased Premises in compliance with all other requirements imposed by or pursuant to Title 49 , Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-assisted programs of . the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended, 14 . 3 In this connection, the City reserves the right to take whatever action it might be entitled by law to take in order to enforce this provision. This provision is to be considered as a covenant on the part of the Lessee, a breach of which, continuing after notice by the City to cease and desist, will constitute a material breach of this Agreement and will entitle the City, at its option, to exercise its right of termination as provided for herein, or take any action that it deems necessary to enforce compliance herewith. 14 .4 The Lessee shall include the foregoing provisions in every agreement or concession pursuant to which any person or persons, other than the Lessee, operates any - 49 - facility at the Leased Premises providing service to the public and shall include therein a provision granting the City a right to take such action as the United States may allow or direct to enforce such covenant . 14 . 5 The Lessee shall indemnify and hold harmless the City from any claims and demands of third persons, including the United States of America, resulting from the Lessee ' s noncompliance with any of the provisions of this Section and the Lessee shall reimburse the City for any loss or expense incurred by reason of such noncompliance. 14 . 6 To the extent legally required and applicable, the Lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E and 49 CFR Part 23 , Subparts E & F, if .applicable, to insure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participation in any employment activities covered in 14 CFR Part 152 , Subpart E and 49 CFR Part 23 , Subparts E & F, if applicable. The Lessee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity- - 50 covered by this subpart. The Lessee assures that it will require that its tenants and sublessees and its covered tuborganizations provide assurances to the Lessee that . they similarly will undertake affirmative action programs and that they will require assurances from their suborgani zat ions, to the extent required by 14 CFR Part 152, Subpart E and 49 CFR Part 23, Subparts E & F, if applicable, to the same effect . ARTICLE 15 GOVERNMENTAL REQUIREMENTS 15 . 1 The Lessee shall procure all licenses, certificates, permits, or other authorization from all governmental authorities, if any, having jurisdiction over the Lessee ' s operations at the Leased Premises which may be necessary for the Lessee' s operations thereat . 15 . 2 The Lessee shall pay all taxes, license, certification, permit and examination fees; and excise taxes which may be assessed, levied, exacted, or imposed on the Leased Premises or operation hereunder or on the gross receipts or gross income to the Lessee therefrom, and shall make all applications, reports and returns required in connection therewith. 51 - 15 .3 In addition to compliance by the Lessee with all laws, ordinances, governmental rules, regulations , and orders now or at any time in effect during the term hereunder which as a matter of law are applicable to the operation, use or maintenance by the Lessee of the Leased Premises or the operations of the Lessee under this Agreement, the Lessee agrees that it shall conduct all its operations under this Agreement and. shall operate, use, and maintain the Leased Premises in such manner that there will be at all times a practicable minimum of air pollution or any other type of pollution, and in accordance with Section 6 . 14 , a practicable minimum of noise emanating from, arising out of , or resulting from the operation, use, or maintenance of the Leased Premises by the Lessee and from the operations of the Lessee under this Agreement . 15 .3 . 1 The City hereby reserves the right from time to time and at any time during the term of this Agreement to require the Lessee and the Lessee agrees to design and construct at its sole cost and expense such reasonable structures, fences, equipment, devices, and other facilities as may be necessary or appropriate to accomplish the objective as set forth in Section 15 .3 hereof . All locations, the manner , type, and method - 52 - of construction and the size of any of the foregoing shall be determined by the City. II 15 .3 . 2 The Lessee shall submit for City approval an application together with its plans and specifications covering the required work or any other work and, subject to receiving such approval , shall proceed diligently to construct the same. ARTICLE 16 RIGHTS OF ENTRY RESERVED 16 . 1 The City, by its officers, employees, agents , representatives , and contractors shall have the right at all reasonable times to enter upon the Leased Premises for any and all reasonable purposes not inconsistent with this Agreement . 16 . 2 Without limiting the generality of the foregoing, the City, by its officers, employees, agents, representatives, contractors, and furnishers of utilities and other services, shall have the right, at its own cost and expense, whether for its own benefit, or for the benefit of others than the Lessee at the Airport, to maintain existing and future underground mechanical , underground electrical and other - 53 - underground utility systems and to enter upon the Leased Premises at all reasonable times, and upon notice to Lessee, to make such repairs, replacements, or alterations thereto, as may, in the opinion of the City, be deemed necessary or advisable, and from time to time (with the prior written approval of Lessee, which approval will not be unreasonably withheld) to .construct or install under the Leased Premises such underground systems or parts thereof and, in connection with such maintenance, use the Leased Premises for access to such underground systems . The City agrees that in the event it exercises the rights reserved in this Section 16 . 2 , the City, at its costs and expense, shall repair any damage to the Leased Premises that result therefrom ( including damage caused by the City or its employees, agents, representatives, contractors, or any other person to whom such rights have been assigned) . It is specifically understood and agreed that the reservation of the aforesaid right by the City shall not impose or be construed to impose upon the City any obligation to repair, replace, or alter any utility service lines now or hereafter located on the Leased Premises for the purpose of providing utility services only to the Leased Premises . 54 - 16 . 3 In the event that any personal property of the Lessee shall obstruct the access of the City, its officers, employees, agents, or contractors, or the utility company furnishing utility service to any of the underground utility systems described in Section 16 . 2 above, and thus shall interfere with the inspection, maintenance, or repair of any such system pursuant to Section 16 . 2, the Lessee shall move such property, as directed by the City or said utility company, in order that access may be had to the system or part thereof for inspection, maintenance or repair . If the Lessee shall fail to so move such property after direction from the City or said utility company to do so, the City or the utility company may move it, and the Lessee hereby agrees to pay the cost of such moving upon demand, and further the Lessee hereby waives any claim against the City for damages as a result therefrom. 16 .4 Exercise of any or all of the foregoing rights in this Article, by the City, or others under right of the City, shall not be, nor be construed to be, an eviction of the Lessee, nor be made the grounds for any abatement of rental nor any claim or demand for damages against the City, consequential or otherwise . - 55 - ARTICLE 17 ADDITIONAL RENTS AND CHARGES 17 . 1 Except as provided in Section 5 .3 (b) in the event the Lessee fails within thirty (30) days after receipt of written notice from the City to perform or commence to perform any obligation required herein to be performed by the Lessee, the City may enter the Leased Premises (without any liability for such entry and without such entering causing or constituting a cancellation of this Agreement or an interference with the possession of such Leased Premises by the Lessee) and do all things reasonably necessary to perform such obligation, charging to the Lessee the cost and expense thereof, and the Lessee agrees to pay to the City upon demand such charge in addition to any other amounts payable by the Lessee hereunder . Provided, however, that if the Lessee ' s failure to perform any such obligation endangers the safety of the public or employees or property of the City, or other tenants of the Airport, and the City so states in its notice to the Lessee, the City (without any liability to the Lessee) may perform such obligation of the Lessee at any time after the giving of such notice, and charge to the Lessee the reasonable cost and expense thereof which the Lessee shall pay upon demand. - 56 - 17. 2 If the City elects to pay any sum or sums or incur any obligation or expense by reason of the failure, neglect, or refusal of the Lessee to perform or fulfill any one or more of the conditions, covenants, or agreements contained in this Agreement, or as the result of any act or omission of the Lessee contrary to said conditions , covenants, or agreements, the Lessee hereby agrees to pay the sum or sums so paid or expense so incurred by the City as the result of such failure, neglect , or refusal of the Lessee, including interest, not to exceed twelve percent ( 12%) per annum, together with all costs, damages and penalties . In such event, the total of such amounts may be added to any installment of rent thereafter due hereunder , and each and every part of the same shall be and become additional rent recoverable by the City in the same manner and with like remedies as if it were originally a part of the rent provided for in this Agreement . ARTICLE 18 TERMINATION BY THE CITY 18. 1 In the event Lessee (or any successor in interest to Lessee) ceases to pay the full amount of rental or any 57 - other charges required by this Agreement to be paid to the City, the City shall give written notice to the Lessee of such default . If, within fifteen. ( 15) days after the date the City gives such notice, the Lessee has not corrected said default, and paid -:he delinquent amount in full , the City may by written notice to the Lessee terminate this Agreement and all rights and privileges granted hereby in and to the Leased Premises . 18 . 2 Upon the default by the Lessee in the performance of any covenant or conditions required to be performed by the Lessee, and the failure of the Lessee to commence to remedy such default for a period of thirty (30) days after receipt from the City of written notice to remedy the same (except as otherwise provided in Section 5 .3(b) above) and thereafter diligently pursue the completion of such remedy and, except default in the timely payment of any money due the City, within fifteen (15) days after notice to Lessee, the City shall have the right to terminate this Agreement for such cause by giving written notice of termination to the Lessee. Notwithstanding the fact that Lessee may be diligently pursuing the completion of any remedy, Lessee must substantially complete such remedy within nine months after beginning same . 58 18 .3 Upon the default by Lessee, and the giving of notice of the default by the City as provided for- elsewhere herein, and the expiration of all applicable cure periods, the notice of termination shall become final ; provided, however, that should the City determine that the Lessee is diligently remedying such default to completion, the City may withhold said notice of termination. If, however, the City determines, in its reasonable discretion, that such default is no longer being diligently remedied to conclusion, the City shall have the right to issue said notice of termination, and said notice of termination shall no longer be held in abeyance for any reason and shall become final upon notice to the Lessee. 18 .4 Upon termination of this Agreement for any reason, all rights of the Lessee shall terminate. The rights of any Sublessees who are Affiliates of Lessee and who occupy the Leased Premises at "below-market" rates shall also terminate . The rights of other Sublessees , however , shall not terminate and their rights shall not be disturbed so long as they perform in accordance with their respective Subleases . Upon such termination, the Leased Premises , except for Lessee ' s equipment, fixtures, and other personal property which - 59 - may be removed from said Leased Premises as provided elsewhere herein, shall be free and clear of all claims of the Lessee, and the City shall have immediate right of possession to the Leased Premises . The City shall not be liable ( i) to assume, take subject to, or otherwise be responsible for the payment or performance under any Leasehold Mortgage or (ii) to Lessee or Lessee ' s contractors, Sublessees , or anyone else, for the value of Improvements constructed or located on the Leased Premises . 18 . 5 Failure by the City to take any authorized action upon default by the Lessee of any of the terms, covenants or conditions required to be performed, kept, and observed by the Lessee shall not be construed to be, nor act as, a waiver of said default nor of any subsequent default of any of the terms , covenants and conditions contained herein to be performed, kept, and observed by the Lessee. Acceptance of rentals by the City from the Lessee, or performance by the City under the terms hereof, for any period or periods after a default by the Lessee of any of the terms, covenants, and conditions herein required to be performed, kept and observed by the Lessee shall not be deemed a waiver or estoppel of any right on the part of the City to cancel this Agreement for any subsequent - 60 - failure by the Lessee to so perform, keep, or observe any of said terms, covenants or conditions . 18 . 6 Foreclosure by Leasehold Mortgagee. Notwithstanding anything in this Agreement to the contrary, the City shall not be entitled to exercise its right to terminate this Agreement as provided in this Article 18 during the period that a Leasehold Mortgagee shall require to ( i) foreclose its mortgage or otherwise to fulfill or complete its remedies under. its Leasehold Mortgage or (ii) cure any default under this Agreement; provided, however, such period shall not exceed 180 days after the City gives notice of termination pursuant to Section 18 . 1 and Section 18 . 2 hereof and provided further that within such period: (a) such Leasehold Mortgagee proceeds promptly and with due diligence with its remedies under its Leasehold Mortgage or its cure under this Agreement; (b) there is timely paid to the City the rental and all other sums which have, or may, become due and payable with respect to the portion of the Leased Premises or Improvements covered by the Leasehold Mortgage of such Leasehold Mortgagee and (c) and all other terms and provisions of this Agreement, to the extent they are applicable to the portion of the Leased Premises covered by the Leasehold Mortgage of 61 - such Leasehold Mortgagee are duly complied with by such Leasehold Mortgagee. 18 . 7 No Voluntary Surrender of Leasehold Estate Without Consent of Leasehold Mortgagee. So long as there exists an unpaid or undischarged Leasehold Mortgage on the estate of Lessee created hereby, the City expressly agrees for the benefit of the Leasehold Mortgagee that it will not accept from Lessee a voluntary surrender of the Leased Premises or a cancellation or amendment of this Agreement prior to the expiration of this Agreement without the written consent of the Leasehold Mortgagee. 18 . 8 New Lease with Leasehold Mortgagee upon Termination. If this Agreement shall terminate for any reason, the City agrees that the Leasehold Mortgagee shall have the right, for a period of 90 days subsequent to such termination of this Agreement, to deliver to the City written notice of the Leasehold Mortgagee ' s election to execute a new lease of the Leased Premises of the character and, when executed and delivered and possession of the Leased Premises is taken thereunder, having the effect hereinafter set forth. The new lease shall be executed by the City and the Leasehold Mortgagee within 15 days after the receipt by the City - 62 of such written notice. Such- new -lease shall be for a term to commence at the termination of this Agreement and shall have as the date for the expiration thereof the same date stated in this Agreement as the date for the expiration hereof . The rent thereof shall be at the same rate as would have been applicable during such term under the provisions of this Agreement had this Agreement not so terminated, and all the rents, covenants, conditions, and provisions of such new lease, including, but not limited to, the conditional limitations set forth in this Agreement , shall be the same as the terms, conditions and provisions of this Agreement . The Leasehold Mortgagee shall , at the time of the execution and delivery of such new lease, pay to the City all rental and other sums which would have become payable hereunder by Lessee to the City to the date of the execution and delivery of such new lease had this Agreement not terminated, and which remain unpaid at the time of the execution and delivery of such new lease, together with reasonable attorney' s fees and expenses in connection therewith. Any such new lease as contemplated in this Section 18 . 8 may, at the option of the Leasehold Mortgagee, be executed- by a nominee of such holder, without the Leasehold Mortgagee assuming the burdens and obligations of - 63 - Lessee thereunder beyond the period of its ownership of the leasehold estate created hereby. ARTICLE 19 TERMINATION; REMEDIES; SURRENDER; AND RIGHT OF RE-ENTRY 19 . 1 Termination Rights . 19 - 1 . 1 If Lessee fails to submit plans and specifications for the Initial Improvements (as described in Section 4 . 4 hereof) within 12 months after this Agreement is fully executed, the sole and exclusive remedy of the City shall be to terminate this Agreement with respect to the real property described in Section 2 . 1 . 1 hereof; whereupon ( i) neither party shall have any further rights, obligations, or remedies hereunder with respect to the terminated land; and ( ii) the remainder of this Agreement, to ' the extent applicable, shall remain in full force and effect . 191 . 1 . 2 If Lessee fails to substantially complete construction of the Initial Improvements within 18 months after the City has approved Lessee' s plans and specifications and issued a building permit for the Initial Improvements, the sole and exclusive remedy of the City shall be to terminate this Agreement with respect - 64 - to the Platted Portion for which the building permit was issued and construction was begun; whereupon ( i) Lessee shall be liable for the actual costs and expenses of completing the facilities in accordance with the approved plans and specifications; ( ii) except as provided by the immediately preceding clause " (i) " , neither party shall have any further rights, obligations, or remedies hereunder with respect to the terminated land; ( iii) rent and use fees (other than annual rental pursuant to Sections 4 . 1 . 2 and 4 . 1 .3 hereof) will be reduced on a pro rata basis ; and ( iv) the remainder of this Agreement, to the extent applicable, shall remain in full force and effect . it 19 . 1 .3 If Lessee or a professional third party fails to obtain an FBO permit on or before the date on which the Initial Improvements are substantially complete, the sole and exclusive remedy of the City shall be to terminate this Agreement with respect to the real property described in Section 2 . 1 . 1 hereof; whereupon, ( i) Lessee shall be liable for the actual costs and expenses of completing the facilities in accordance with the approved plans and specifications; ( ii) except as provided in the immediately preceding clause " M " , neither party shall have any further rights, obligations . or remedies hereunder with respect to the - 65 - terminated land; and ( iii) the remainder of this Agreement, to the extent applicable, shall remain in full force and effect. 19 . 1 . 4 Lessee shall have the right to terminate this Agreement with respect to the Fire Station Tract (and all improvements located and constructed thereon) upon not less than 180 days ' advance written notice to the City; whereupon, ( i) neither party shall have any further rights, obligations, or remedies hereunder with respect to the terminated land; and ( ii ) the remainder of this Agreement, to the extent applicable, shall remain in full force and effect . 19 . 2 Limitation on City' s Remedies . Notwithstanding any other provision in this Agreement to the contrary, upon any default by Lessee of any provision of this Agreement or upon any termination of this Agreement for any reason ( including, but not limited to, any such default by Lessee) , the City' s sole and exclusive remedy shall be to re-enter and take possession of the Leased Premises (or portion thereof) and to take title to and possession of the Improvements (or portion thereof) then located, placed, or constructed thereon, free from any claims by Lessee. The exercise of such remedy (i) shall not obligate the City to assume, take - 66 - subject to, or otherwise be responsible for the payment or performance under any Leasehold Mortgage and (ii) shall not affect the rights of any Sublessee (except Sublessees that are Affiliates of Lessee and that occupy the Lease Premises at "below-market" rates) . The remedy limitation set forth in this Section 19 . 2 shall not apply to (a) the liability of Lessee (pursuant to Section 19 . 1 . 2( 1) and Section 19 - 1 . 3( 1) for the actual costs and expenses of completing facilities; (b) any indemnity obligations of Lessee set forth in this Agreement; (c) to the repayment obligations of Lessee pursuant to Sections 5 .3 or 5 . 4 hereof; or (d) to the obligations of Lessee pursuant to Section 6 . 15 hereof . In addition, nothing contained in this Agreement shall be interpreted to constitute the personal obligations of Lessee to pay or perform under or in accordance with any Leasehold Mortgage. 19 .3 Upon the expiration or termination of this Agreement pursuant to any terms hereof, the Lessee agrees peaceably to surrender up the Leased Premises to the City in the same condition as they are at the time of the commencement of the term hereof, and as they may hereafter be repaired and improved by the Lessee; save and except, (a) such normal wear and tear thereof as - 67 - could not have been prevented by ordinary and usual repairs and maintenance, (b) obsolescence in spite of repair , and (c) damage to or destruction of the Improvements for which insurance proceeds are received by the City. Upon such termination, the City may re-enter and repossess the Leased Premises together with all Improvements . Furthermore, upon such termination, and for a reasonable time thereafter (not exceeding thirty (30) days after such termination, and for which period the Lessee will pay to the City current lease rentals) , or during the term of this Agreement, if the Lessee is not in default in rentals or any other charges or obligations due the City, the Lessee shall have the right to remove its personal property, fixtures and trade equipment which it may have on the Leased Premises , provided the removal thereof does not impair, limit, or destroy the utility of said Leased Premises or building for the purpose for which they were constructed or improved, and provided, further, that the Lessee repairs all damages that might be occasioned by such removal , and restore the Leased Premises to the condition above required. - 68 ARTICLE 20 SERVICES TO LESSEE 20 . 1 The City covenants and agrees that during the term of this Agreement it will operate the Airport as such for the use and benefit of the public provided however , III that the City may prohibit or limit any given type, kind, or class of aeronautical use of the Airport if such action is necessary for the safe operation of the Airport or necessary to serve the civil aviation needs of the public . The City further agrees to use its best efforts to maintain the runways and taxiways in good repair . The City agrees to keep in good repair hard-surfaced public roads for access to the Leased Premises . The City also agrees to provide and maintain water and sanitary sewer services in areas designated for utilities or easements adjacent to the Leased Premises for access thereto by the Lessee in accordance with the City policy governing same. 20 . 2 The Lessee will contract with and obtain all required permits from the appropriate departments for any utility services provided by the City for the Lessee, paying any required connection fees, including those to be paid by owners, and all such services will be - 69 - it provided at rates and on terms and conditions established by the City for similar users in the City. 20 .3 The Lessee will also contract with the furnishers of all other utilities for the furnishing of such services to the Leased Premises and shall pay for all water, gas , electricity, sanitary sewer service, other utilities , telephone, private security and fire protection services furnished to the Leased Premises . The City shall allow the providers of such utilities reasonable access to the boundaries of the Leased Premises for the installation of their utility systems , ARTICLE 21 THIS ARTICLE 21 INTENTIONALLY LEFT BLANK ARTICLE 22 THIS ARTICLE 22 INTENTIONALLY LEFT BLANK ARTICLE 23 LIMITATION OF RIGHTS AND PRIVILEGES GRANTED 23 . 1 Except the exclusive right of the Lessee to possession of the Leased Premises , no exclusive rights at the Airport are granted by this Agreement and no greater rights or privileges with respect to the use of the - 70 - Leased Premises or any part thereof are granted or intended to be granted to the Lessee by this Agreement, or by any provision thereof, than the rights and privileges expressly and specifically granted hereby. ARTICLE 24 NOTICES 24 . 1 All notices, consents and approvals required or desired to be given by the parties hereto shall be sent in writing, and shall be deemed given when received at the recipient ' s notice address except that notice that must be given by a certain time to be effective and is sent registered or certified mail , postage prepaid, return receipt requested, addressed to the recipient ' s address shall be deemed given when posted. Notice that starts the running of a time period and is delivered on a non-business day shall be deemed delivered on the next business day, if left at the notice address, or the next business day on which it is redelivered if it is not left at the notice address . - 71 - 24 . 2 The notice addresses of the parties are as follows : i To the City: City Manager Mana g City of Fort Worth 1000 Throckmorton Ft . Worth, Texas 76102 and Director Airport Systems Meacham Airport 4201 North Main Street Ft. Worth, Texas 76106 To The Lessee : Alliance Air Services , Inc . Attn: Timothy D. Ward 2250 Alliance Boulevard Ft . Worth, Texas 76117 and Hillwood Development Corporation Attn: Rick Patterson 2421 Westport Parkway Suite 200 Ft . Worth, Texas 76177 Such addresses shall be subject to change from time to time to such other representatives or addresses as may have been specified in written notice given by the intended recipient to the sender . 24 .3 . Notice to Leasehold Mortgagee. Notwithstanding anything in this Agreement to the contrary, the 'City agrees, if and so long as the leasehold estate of Lessee is encumbered by any Leasehold Mortgages in favor of any Leasehold Mortgagees, to give the - 72 - Leasehold Mortgagees (at such address or addresses as may be specified by said Leasehold Mortgagees to the City in writing) duplicate copies of any and all notices in writing which the City may from time to time give or serve upon Lessee under and pursuant to the terms and provisions of this Agreement, and no i such notice to Lessee shall be effective or be deemed to have been given to Lessee hereunder unless such notice is also given to said Leasehold Mortgagees; and said Leasehold Mortgagees shall have the right, within the same period of time as given to Lessee, and to the same extent and with the same effect as though done by Lessee, to take such action or to make such payment as may be necessary or appropriate to cure any event of default, it being the intention of the parties hereto that the City shall not terminate this Agreement or Lessee' s rights of possession hereunder without first affording to said Leasehold Mortgagees the same rights and the same notices with respect to any such default and the same period or periods of time within which to cure the same, including the right to enter into possession of the Leased Premises . 73 ARTICLE 25 HOLDING OVER 25 . 1 No holding over by the Lessee after the termination of this Agreement shall operate to extend or renew this Agreement for any further term whatsoever; but the Lessee will by such holding over become a tenant at will of the City and, after written notice by the City to vacate such premises, continued occupancy thereof by the Lessee shall constitute the Lessee a trespasser . 25 . 2 Any holding over by the Lessee beyond the thirty (30) day period permitted for removal of fixtures without the written consent of the City shall make the Lessee liable to the City for damages equal to double the rentals provided for herein and which were in effect at the termination of this Agreement . 25 . 3 All insurance coverage that the Lessee is required under the provisions hereof to maintain in effect shall continue in effect for so long as the Lessee, or any of the Lessee ' s sublessees or tenants occupy the Leased Premises or any part thereof . - 74 ARTICLE 26 INVALID PROVISIONS 26 . 1 The invalidity of any provisions, articles, paragraphs, portions, or clauses of this Agreement shall have no effect upon the validity of any other part or portion hereof, so long as the remainder shall constitute an enforceable agreement . ARTICLE 27 MISCELLANEOUS PROVISIONS 27 . 1 Non-Waiver of Rights The failure by either party to exercise- any right, or rights accruing to it by virtue of the breach of any covenant, condition or agreement herein by the other party shall not operate as a waiver of the exercise of such right or rights in the event of, any subsequent breach by such other party, nor shall such other party be relieved thereby from its obligations under the terms hereof . 27 .2 Non-liability of Individuals . No director, officer, agent or employee of either party hereto shall be charged personally or held contractually liable by or to the other party under - 75 - any term or provision of this Agreement or of any supplement, modification or amendment to this Agreement because of any breach thereof , or because of his or their execution or attempted execution of the same. 27 .3 Quiet Enjoyment . The City covenants that as long as the Lessee is not in default of any provision of this Agreement, the Lessee shall and may peaceably and quietly have, hold and enjoy the Leased Premises exclusively to it and the rights appurtenant to the Leased Premises granted in this Agreement during the term hereof unless sooner canceled as provided in this Agreement . 27 . 4 Estoppel Certificates . At the request of the Lessee in connection with any Leasehold Mortgage, Sublease, or assignment, the City shall execute and deliver a written statement addressed to such Leasehold Mortgagee, Sublessee, or assignee identifying it as the Lessor under this Agreement and certifying: ( i) the documents that then comprise this Agreement, ( ii) that this Agreement is in full force and effect, ( iii) the then current annual amount of rent and the date through which it has been paid, ( iv) the expiration date of this - 76 - Agreement, (v) that no amounts are then owed by the Lessee to the City (or, if amounts are owed, specifying the same) , (vi) to the knowledge of the City, there are no defaults by the Lessee, under this Agreement or any facts which but for the passage of time, the giving of notice or both would constitute such a default, (vii) that the rights of Sublessees (except Sublessees that are Affiliates of Lessee and that occupy the Leased Premises at "below-market" rates) will not be disturbed by any default of Lessee, and (viii) any other fact or information reasonably requested by such Leasehold Mortgagee, Sublessee, or assignee. The person or entity to whom such statement is addressed shall be entitled to rely conclusively upon such written statement . 27 . 5 Short Form of Lease. This Agreement shall. not be recorded, but at the request of either party, the other shall execute a memorandum or short form of lease for recording. 27 . 6 General Provisions . Lessee shall not use, or permit the use of, the Leased Premises , or any part thereof, for any purpose or use other than those authorized by this Agreement . - 77 27 . 7 This Agreement shall be performable and enforceable in Tarrant County, Texas, and shall be construed in accordance with the laws of the State of Texas . 27 . 8 This Agreement is made for the sole and exclusive benefit of the City and the Lessee, their successors and assigns, and is not made for the benefit of any third party. 27 . 9 In the event of any ambiguity in any of the terms of this Agreement , it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 27 . 10 All covenants , stipulations and agreements in this Agreement shall extend to and bind each party hereto, its legal representatives, successors and assigns . 27 . 11 The titles of the several articles of this Agreement are inserted herein for convenience only, and are not intended and shall not be construed to affect in any manner the terms and provisions hereof, or the interpretation or construction thereof . 27 . 12 Nothing herein shall be construed as creating a joint enterprise or partnership between the City and - 78 - Lessee. Lessee shall at all times be considered an independent contractor in the performance of the terms and conditions of this Agreement, and shall - be solely responsible for the servants, employees, contractors, and subcontractors . The doctrine of respondeat superior shall have no application as between the City and the Lessee. 27 . 13 Leasehold Mortgagee Protection. The City and Lessee shall cooperate in including in this Agreement by suitable amendment from time to time any provision which may reasonably be requested by any proposed Leasehold Mortgagee for the purpose of implementing the mortgagee protection provisions contained in this Agreement and allowing such mortgagee reasonable means to protect or preserve the lien of the Leasehold Mortgage on the occurrence of a default under the terms of this Agreement . The City and Lessee each agree to execute and deliver (and to acknowledge, if necessary, for recording purposes) any agreement necessary to effect any such amendment; provided, however, that any such amendment shall not in any way affect the term or rent under this Agreement nor otherwise in any material respect adversely affect any rights of the City under this Agreement . It is understood and agreed, however , that - 79 - if such amendments or agreements vary the substantive rights of the parties as set forth in this Agreement, then such amendments or agreements must be approved by the City Council of the City. 27 . 14 Nonmerger . There shall be no merger of this Agreement or the leasehold estate created hereby with the fee estate in and to the Leased Premises by reason of the fact that this Agreement or the leasehold estate created hereby, or any interest in either of them, may be held directly or indirectly by or for the account of any person who shall own the fee estate in and to the Leased Premises, or any portion thereof , and no such merger shall occur unless and until all persons at the time having any interest in the fee estate and all persons having any interest in this Agreement or the leasehold estate, including the holder of any mortgage upon the fee estate, shall join in a written instrument effecting such merger . 27 . 15 Force Majeure. Any time period specified in this Agreement for the performance of any duty or obligation by either the City or Lessee shall be extended to include delays - 80 II that result from any cause beyond the reasonable control of either party. 27 . 16 Other Ground Leases . If at anytime during the term of this Agreement the City, as lessor, enters into any other ground lease of real property located at Alliance Airport, and if such other ground lease contains any terms, conditions, or other provisions ( including, but not limited to, the payment of rent and use fees, but excluding any provision that would extend the 30-year term of this Agreement) which, directly or indirectly, are more favorable or beneficial to the lessee thereunder than are the terms, conditions, and provisions of this Agreement to Lessee; then the terms, conditions , and other provisions of this Agreement shall be deemed to be automatically amended to the extent necessary to confer substantially the same favorable or beneficial treatment upon Lessee. 27 . 17 Use of Parcels No. 1 , No. 2, and No. 4 . The City agrees that until December 31, 1996, ( i) Parcels No . 1 and No. 4 described on Exhibit D attached hereto shall only be used for the construction, operation, maintenance, and use of a permanent terminal and administration building having 81 - a minimum of 25, 000 square feet plus associated parking areas, and ( ii) Parcel No . 2 described on Exhibit D shall only be used for the construction, operation, maintenance, and use for FBO or other aeronautical purposes . 27 . 18 Fire Station Tract Obligations . Lessee, at its expense, will install a water line and water meter to serve improvements located on the Fire Station Tract . 27 . 19 Right of First Refusal . The City grants to Lessee certain rights of first refusal as more particularly set forth on Exhibit E attached hereto . ARTICLE 28 SUBORDINATION CLAUSES 28 . 1 This Agreement is subject and subordinate to the following: 28 . 1 . 1 The City reserves the right to develop and improve the Airport as it sees fit, regardless of the desires or view of the Lessee, and without interference or hindrance by or on behalf of the Lessee. Accordingly - 82 - nothing contained in this Agreement shall be construed to obligate the City to relocate the Lessee. 28 . 1 .2 The City reserves the right to take any action it considers necessary to protect the aerial approaches to the Airport against obstruction, together with the right to prevent Lessee from erecting or permitting to be erected any building or other structure on the Airport which, in the opinion of the City, would limit the usefulness of the Airport or constitute a hazard to aircraft . 28 . 1 .3 This Agreement is and shall be subordinate to the provisions of existing and future agreements between the City and the United States relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent or relevant to the obtaining or expenditure of federal funds for the benefit of the Airport . II 28 . 1 . 4 During the time of war or national emergency, the City shall have the right to lease all or any part of the landing area or of the Airport to the United States for military or naval use, and if any such lease is executed, the provisions of this Agreement insofar as they may be inconsistent with the provisions of such - 83 lease to the Government, shall be suspended, but such suspension shall not extend the term of this Agreement . Abatement of rentals shall be reasonably determined by the City in proportion to the degree of interference with the Lessee' s use of the Leased Premises . 28 . 1 . 5 Except to the extent required for the performance of any obligations of the Lessee hereunder, nothing contained in this Agreement shall grant to the Lessee any rights whatsoever in the airspace above the Leased Premises other than those rights which are subject to Federal Aviation Administration rules, regulations and orders currently or subsequently effective. 28 . 1 . 6 Nothing in this Agreement obligates the City in any way to take any action that is prohibited by the 1968 Concurrent Ordinance adopted by the City of Fort Worth and the City of Dallas, Texas regarding the Dallas/Fort Worth International Airport . The Lessee agrees that in the performance of this Agreement, it will do no act and cause no omission that is inconsistent with, or that will place the City in violation of, the 1968 Concurrent Ordinance or any proceedings relating to the operation of the Dallas/Fort Worth International Airport . The parties - 84 hereto acknowledge that the rights and duties of the Lessee and the terms of this Agreement may be qualified to the extent that the provisions of the 1968 Concurrent Ordinance and proceedings relating to the operation of the Dallas/Fort Worth International Airport govern the operation of Alliance Airport . 28 . 1 . 7 Notwithstanding anything to the contrary stated herein, any contractual or statutory lien claimed by the City in all goods, wares , equipment, fixtures furniture and other personal property of Lessee presently or hereafter situated in the Leased Premises and all proceeds therefrom (collectively, the "Collateral" ) (save and except liens for ad valorem taxes levied on such personal property) shall be subject and subordinate to the rights , if any, of any Leasehold Mortgagee, any holder of any Leasehold Mortgage or any holder of a lien or security interest securing purchase money indebtedness covering any of the Collateral and the City agrees to execute such additional documents as shall be reasonably necessary to effect or evidence such subordination. Lessee agrees to pay the City all reasonable and necessary costs incurred by the City in connection with the negotiation, preparation, review, and execution of 85 - such additional documents, including, but not limited to, all reasonable and necessary attorneys ' fees . 28 . 1 . 8 It is agreed and understood that nothing in this Agreement shall be interpreted to constitute an amendment or modification to the respective rights, duties, and obligations of either the City or the Airport Operator under that certain Management Agreement between Alliance Air Services, Inc . , as Operator , and the city of Fort Worth dated December 1993 . Notwithstanding the foregoing, however, in the event there is any conflict between this Agreement and any term or provision of the Management Agreement that concerns, addresses, or deals with any ground lease of Airport property (including constructing improvements and/or providing FBO services) , this Agreement shall control . 28 . 1 . 9 Any person or entity to which this Agreement (or any rights herein) is assigned, conveyed, or otherwise transferred as a result of any foreclosure by any Leasehold Mortgagee (or as a result of any deed or other transfer in lieu of foreclosure) shall be bound by all terms and conditions of this Agreement . 86 - ARTICLE 29 VENUE . Ii Should any action, whether real or asserted, at law or in equity, arise out of or in connection with the terms and conditions of this Agreement or the performance, nonperformance or attempted performance hereof, venue for said action shall be in Tarrant County, Texas . ARTICLE 30 ENTIRE AGREEMENT 30 . 1 This Agreement consists of Articles 1 to 30 , inclusive, Exhibits A-1 , A-2, A-3, B, C, D, and E, Schedule A and Appendix A. 30 . 2 This Agreement constitutes the entire agreement of the parties hereto and may not be changed, modified, discharged or extended except by written instrument duly executed by the City and the Lessee. The parties agree that no representations or warranties shall be binding upon the City or the Lessee unless expressed in writing in this Agreement of Lease. - 87 - IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written above. LESSOR: ATTEST: CITY OF FORT WORTH, TEXAS By: qa) ICPty Manager it secretary LESSEE: Approved As to Form And Legality: ALLIANCE AIR SERVICES, INC. By: City Attorney Officer Title: Preslit 6? —Z11 eG) Contra--' Lathoriza'U'Lo'n Date - 88 - SCHEDULE A Lessee shall , at its own cost and expense, take out and maintain such insurance for the term of this Agreement as the Lessee is required to take out and maintain under the Workers ' Compensation Act; and also take out and maintain such public liability and automobile liability insurance sufficient to fulfill the Lessee' s indemnification obligations set forth in Article 9 of the Lease Agreement . The policies shall provide. the amounts of insurance specified in this Schedule A and shall name the City and its Airport Operator as additional insureds for their own acts or omissions . Upon execution of this Agreement, certificates of insurance in form acceptable to the City and marked "premium paid" must be submitted to the City. Each certificate shall have endorsed thereon: A clause naming the City of Fort Worth and its Airport Operator, Alliance Air Services , Inc . , as additional insureds under the policies . "No cancellation or change in the policy shall become effective until after thirty (30) days notice by registered mail to the City Manager, City of Ft . Worth, 1000 Throckmorton, Ft . Worth, TX. 76102 . " - 89 - Upon failure of Lessee to furnish, deliver and maintain such insurance as above provided, the City may obtain such insurance and charge Lessee the cost of the insurance plus all appropriate administrative charges and incidental expenses associated with the transaction. Failure of Lessee to take out and/or maintain, or the taking out and/or maintenance of any required insurance shall not relieve Lessee from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with the obligations of Lessee concerning indemnification. All required insurance must be in effect and so continue during the life of this Agreement in not less than the following amounts : A. Workers ' Compensation Unlimited - Statutory - in compliance with the Compensation Law of the State of Texas . B. General Liability Insurance with a maximum combined single limit of $3 ,000,000 . 00 per occurrence. This insurance shall indicate on the Certificate( s) of Insurance, marked "premium paid" , the following coverages : - 90 i Comprehensive General Liability Premises/Operations Contractual Liability i Independent Contractors Products and Completed Operations Broad Form Property Damage Personal Injury Hangar Keepers Liability C. Auto Liability (single limit or occurrence $500 , 000 . 00) . Owned, Non-owned and Hired Location of operation shall be "All locations in Tarrant and Denton Counties , Texas" . Nothing herein contained shall prevent the Lessee from taking out any other insurance for protection of its interest which it deems advisable or necessary. 91 - Appendix A Construction by Lessee 1 . Prior to the commencement of construction of any Improvements , Lessee shall submit to the City complete plans and specifications and an estimated time table for such proposed construction. 2 . The City may refuse to grant approval of Lessee ' s plans and specifications if , in its reasonable opinion, the proposed facilities as laid out and indicated by the Lessee on such plans or constructed according to such plans and specifications : 2 . 1 will be structurally unsound or unsafe or hazardous for human occupancy; 2 . 2 will not substantially comply with all the requirements of this Agreement; 2 .3 will be so located that there will not be sufficient clearances in respect to existing or planned projecting aprons, runways or taxiways adjacent thereto; - 92 2 .4 will be in violation of any state code, OSHA-70, the National Electric and Fire Protection Codes or any other laws, ordinances or regulations of any governmental authority having jurisdiction over the Airport; 2 , 5 will not be at locations or not be oriented in accordance with the approved comprehensive plans for the Airport . 3 . Upon approval of such plans and specifications by the City, the Lessee shall proceed expeditiously and with all reasonable diligence to construct, at its own expense and cost, the facilities in accordance with such approved plans and specifications and complete the facilities in accordance with the estimated time table (subject to delays beyond Lessee' s reasonable control) . 3 . 1 At any time that Lessee undertakes construction of any Improvements in excess of $25, 000 . 00 , Lessee shall, at its own cost and expense, cause to be made, executed and delivered to the City a cash deposit or a pledge of government securities (in the form attached herewith as Exhibit C) in an amount sufficient to secure Lessee ' s construction - 93 - obligations or two separate bonds in accordance with Chapter 2253 of the Texas Government Code as follows : (1) Prior to the date of commencement of construction, a contract surety bond (performance bond) in a sum equal to the full amount of the construction contract awarded. Said bond shall be drawn in a form and from such company as approved by the City; shall guarantee the faithful performance of necessary construction and completion of Improvements in accordance with approved final plans and detailed specifications; and shall guarantee the City against any losses and liability, damages, expenses, claims and judgments caused by or resulting from any failure of Lessee to perform completely the work described as herein provided. (2) Prior to the date of commencement of construction, a payment bond with Lessee ' s contractor or contractors as principal, in a sum equal to the full amount of construction contract awarded. Said bond shall guarantee payment of all wages for labor and services engaged and of all bills for materials, - 94 - supplies and equipment used in the performance of said construction contract . Bonds shall be standard performance and payment bonds provided by a licensed surety company in the State of Texas . 4 . All construction work shall be done in accordance with the following terms and conditions : 4 . 1 The Lessee hereby assumes the risk of loss or damage to all of the construction work prior to the completion thereof and the risk of loss or damage to all property of the City arising out of or in connection with the performance of the construction work. In the event of such loss or damage, the Lessee shall forthwith repair, replace and make good the construction work and the property of the City without cost or expense to the City. 4 . 2 The Lessee shall itself and shall require its contractors to indemnify, hold harmless and defend the City, its officers , agents and employees from and against any and all claims or suits for property damage and/or personal injury, including death, to any and all persons, of whatsoever kind or character, whether real or asserted, arising out of or in connection with any construction, - 95 - maintenance or repair work performed on or in connection with the Leased Premises, by the Lessee, its officers, employees, contractors, subcontractors, licensees, invitees, or tenants (and to provide such insurance as required in Section 4 . 7 of this Appendix) covering the acts and omissions of the Lessee and its contractors; and the Lessee shall itself assume and shall require its contractors to assume all responsibility and liability for such claims or suits . The Lessee shall itself assume and shall require its contractors to assume all responsibility and liability for, and shall indemnify and hold harmless the City for any and all damage to or destruction of Alliance Airport property, the Leased Premises , and their facilities, arising out of or in connection with any construction, maintenance or repair work performed on or in connection with the Leased Premises, by the Lessee, its officers , employees , contractors, subcontractors, licensees, invitees, or tenants . 4 .3 The Lessee shall identify a project manager during the construction period with whom the City may communicate at all times . 4 . 4 The City shall have the right, through its duly designated representatives, to inspect the construction 96 - work and the plans and specifications thereof, at any and all reasonable times during the progress thereof and from time to time, in its discretion, to take samples and perform testing on any part of the construction work, but the taking of samples and 'testing shall be conducted so as to minimize interference with the construction work. 4 . 5 The Lessee agrees that it shall deliver to the City as-built" drawings (capable of being reproduced) of the construction work and shall during the term of this Agreement keep said drawings current showing thereon any changes or modifications which may be made. (No changes or modifications to be made without the City' s consent not to be unreasonably withheld or delayed. ) 4 . 6 The Lessee shall pay or cause to be paid all claims lawfully made against it by its contractors, subcontractors, materialmen and workmen, and all claims lawfully made against it by other third persons arising out of or in connection with or because of the performance of any repair, maintenance or construction work, and shall cause its contractors and subcontractors to pay all such claims lawfully made against them, provided, however, that nothing herein contained shall be construed to limit the right of the Lessee to contest any claim of a contractor, subcontractor, materialman, - 97 - workman and/or other person and no such claim shall be considered to be an obligation of the Lessee within the meaning of this Section unless and until the tame shall have been finally adjudicated. The Lessee shall use its best efforts to resolve any such claims and shall keep the City fully informed of its actions with respect thereto. 4 . 7 The Lessee shall procure and maintain comprehensive general liability insurance, including automotive, with a contractual liability endorsement covering the obligations assumed by the Lessee in Sections 4 . 1 and 4 .2 of this Appendix, which shall be in addition to all policies of insurance otherwise required under this Agreement; or the Lessee may provide such insurance by requiring each contractor engaged by it for the construction work to procure and maintain such insurance including such contractual liability endorsement . Said insurance shall not contain any care, custody or control exclusions, any exclusion for explosions, collapses or damage, or any exclusions for bodily injury to or sickness, disease, or death of any employee of the Lessee or of any of its contractors which would conflict with or in anyway impair coverage under the contractual liability endorsement . Said insurance shall name the City, its.- - 98 officers, its employees and its agents as additional insureds and be in not less than the following amounts : Bodily Injury Liability: For injury to or wrongful death to one person . . . . . . . . . . . . . . . $1 , 000 , 000 For injury or wrongful death of more than one person for any one occurrence. . . $5, 000 , 000 Aggregate Products Completed Operations . . . $3 , 000 , 000 ( ii) Property Damage Liability: For all damages arising out of injury to or destruction of property in any one occurrence. . . . . . . . . . . . . . . $3 , 000 , 000 Aggregate Products Completed Operations . . . $3 , 000 , 000 Aggregate Operations . . . . . . . . . . . . $3 , 000 , 000 Aggregate Productive . . . . . . . . . . . . $3, 000 , 000 Aggregate Contractual . . . . . . . . . . . . . $3 ,000 , 000 The insurance required hereunder shall be maintained in effect during the performance of the maintenance, repair or construction work. A certified copy of each of the policies or a certificate or certificates evidencing the existence thereof , or binders, shall be delivered to the City at least fifteen ( 15) days prior to the commencement - 99 - of any work. In the event any binder is delivered, it shall be replaced within thirty (30) days by a certified copy of the policy or a certificate. Each such copy or certificate shall contain a valid provision or endorsement that the policy may not be canceled, terminated, changed or modified without giving fifteen ( 15) days ' written advance notice thereof to the City. 4 . 8 The Lessee shall procure and maintain or cause to be procured and maintained Builder ' s Risk Completed Value Insurance covering the construction work during the performance thereof, , including material delivered to the construction site but not attached to the realty, in an amount and form satisfactory to the City. Such insurance shall name the City, the Lessee and its contractors and subcontractors as additional a5sureds and such policy shall provide that the loss shall be adjusted in accordance with Article 8 of this Agreement . The policies or certificates representing this insurance shall be delivered by the Lessee to the City prior to the commencement of construction and each policy or certificate delivered shall bear the endorsement of or be accompanied by evidence of payment of the premium thereon and, also, a valid provision obligating the insurance company to furnish the City fifteen ( 15) days ' advance notice of the cancellation, termination, change or - 100 - modification of the insurance evidenced by said policy or certificate. 4 . 9 Nothing contained herein shall grant or be deemed to grant to any contractor, architect, supplier , subcontractor or any other person engaged by the Lessee or any of its contractors in the performance of any part of the construction work any right of action or claim against the City, its officers, agents and employees with respect to any work any of them may do in connection with the construction work . 4 . 10 Nothing contained herein shall create or be deemed to create any relationship between the City and any such contractor , architect, supplier, subcontractor or any other person engaged by the Lessee or any of its contractors in the performance of any part of the construction work, and the City shall not be responsible to any of the foregoing for any payments due or alleged to be due thereto for any work performed or materials purchased in connection with the construction work. 4 . 11 When the construction work is substantially completed and is ready for use by the Lessee, the Lessee shall advise the City to such effect and shall deliver to the City a certificate by an authorized officer -of the Lessee - 101 - certifying that such construction work has been constructed substantially in accordance with the approved plans and specifications and the provisions- of this Agreement and in compliance with all applicable laws , ordinances and governmental rules, regulations and orders . Thereafter, such construction work will be inspected by the City and if the same has been completed as specified by the Lessee, a certificate to such effect shall be delivered to the Lessee, subject to the condition that all risks thereafter with respect to the construction and installation of the same and any liability therefor for negligence or other reason shall be borne by the Lessee. The Lessee shall not use or permit the use of the construction work for the purposes set forth in this Agreement until such certificate is received from the City. The date of delivery of the certificate by the City shall constitute the Completion Date for the purposes of this Agreement . 6. Other Construction by Lessee Title to any construction, improvement, alteration, modification or addition performed by Lessee at or on the Leased Premises in accordance with a City approved 102 - I building permit shall vest in the Lessee and remain in Lessee until the expiration or earlier termination of this Agreement. I i i I i i i i I, i I �I i 103 — EXHIBIT A-1 4, Legal Description of Parcel No. 3 BEGINNING AT THE POINT WHERE THE WESTERLY RIGHT-OF-WAY LINE OF JET STREAM WAY INTERSECTS A NORTHERLY LINE OF SAID LOT 1, BLOCK 1,ALLIANCE AIRPORT; THENCE WITH SAID WESTERLY RIGHT-OF-WAY LINE AS FOLLOWS: S 09. 53' 13' E. 65.00 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; 73.85 FEET WITH THE ARC OF SAID CURVE TO THE'LEFT,THROUGH A CENTRAL ANGLE OP 65' 05' 56°, NTH A RADIUS OF 65.00 FEET,AND A LONG CHORD WHICH BEARS S 42' 26' 11' E, 69.94 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 34.09 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 65' 05' 560, WITH A RADIUS OF 30.00 FEET AND A LONG CHORD WHICH BEARS S 42' 26' 11' E, 32.28 FEET; S 09' 63' 13' E, 290.83 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 31.42 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 90' 00'019, WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 350 06' 47' W, 28.28 FEET TO A POINT IN THE NORTHERLY RIGHT-4F--WAY LINE OF ALLIANCE BOULEVARD; THENCE S 80' OS'47°W,14.00 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TOTHE BEGINNING OF A CURVE TO THE LEFT; THENCE 173.37 FEET WITH THE ARC OFSAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 35° 43'51°0 WITH A RADIUS OF 278..00 FEET AND A LONG CHORD WHICH BEARS S 62' 14'520 W. 170.57 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 28.18 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 80' 43'62',WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 84' 44'52°W. 25.91 FEET TO A POINT IN THE NORTHERLY RIGHT-OF--WAY LINE OF A RESTRICTED ACCESS RIGHT-OF-WAY; THENCE N 54'53' 13'W,25.09 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE LEFT; i THENCE 100.53 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-0F- WAY LINE THROUGH A CENTRAL ANGLE OF 45' 00'00r.WITH A RADIUS OF 128.00 FEET AND A LONG CHORD WHICH BEARS N 77' 23' 13"W.97.97 FEET; THENCE S 80' 06' 4T W. 119.50 FEET WITH SAID NORTHERLY RIGHT-OF-WAY UNE; THENCE N 09' 51' 30'W,406.42 FEET; THENCE N 09' 53' 130 W, 50.58 FEET TO A POINT IN THE NORTHERLY LINE OF SAID LOT 1, BLOCK 1,ALLIANCE AIRPORT; THENCE N 80° 06'4r E.394.72 FEET TO THE POINT OF BEGINNING AND CONTAINING 4.735 ACRES OR 206,267 SQUARE FEET OF LAND, MORE OR LESS. ]EXHIBIT A-2 FIELD NOTES FOR A 4,230 SQUARE FEET LEASE AREA AT ALLIANCE AIRPORT Being a tract of land situated in the J. Evans Survey, Abstract No. 470, City of Fort Worth, Tarrant County, Texas, and also being a portion of Lot 1, Block 1, Alliance Airport according to the plat recorded in Cabinet A, Slide 622, Plat Records, Tarrant County, Texas, and being more particularly described as follows: COMMENCING at the east most southeast comer of Alliance Airport, said comer being at the intersection of the east right-of-way line of Jet Stream Way and the south right-of-way line of Flight Line Road; THENCE south 80 degrees 06 minutes 47 seconds West, 401.62 feet to a point; THENCE North 09 degrees 53 minutes 13 seconds West, 330.76 feet to the southeast comer of a one story metal building, and the POINT OF BEGINNING; THENCE South 80 degrees 08 minutes 16 seconds West, 70.20 feet along the south line of said building to its southwest comer; THENCE North 09.degrees 51 minutes 44 seconds West 60.25 feet along the west line of said building to its northwest comer; THENCE North 80 degrees 08 minutes 16 seconds East, 70.20 feet along the north line of said building to its northeast comer; THENCE South 09 degrees 51 minutes 44 seconds West, 60.25 feet along the east line of said building to its southeast comer, and the POINT OF BEGINNING, and encompassing 4,230 square feet more or less. 14 0 EiIBIT A-3 c Diagram of Transient Apron Areas . I � 1 I C /h V4 4 a fa 64 1 c a f�.t 4 Iii {li I = H fa - i 1 i I ALLIANCE BLVD. In I0� b a a ri H W 1 I BV o c "4 V4 05 05 o P4 61 V4 O� L c ell `Q 0 gV i--— r4 n k 1 w a 1 r, I w in h a In 1 0 I - � I FLIGHT LINE RD. Exhibit A-3 Exhibit B CITY OF FORT WORTH AVIATION DEPARTMENT MINIMUM STANDARDS FOR FIXED BASE OPERATORS AND OTHER AIRPORT TENANTS ALLIANCE - i MEAL AM KTH AVIAIIUIN D EPA Kw%TM EN T SINKS. ADOPTED BY THE FORT WORTH CITY COUNCIL JUNE 16, :1992 CITY OF FORT WORTH * AVIATION DEPARTMENT TERHINAL BUILDING SUITE 228 '* FORT WORTH, TEXAS 76106 (8171 .624-1127 i I 1 i GENERAL Articles I. through XX of the City of Fort 'Worth Minimum Standards for Fixed Base Operators and Other. Airport Tenants are relevant to activities that take . place at .any airport owned and operated by the City of Fort Worth, , Texas. Additional Appendices contain information specific to only that airport. identified in the individual Appendix. 2 CITY OF FORT WORTH AVIATION DEPARTMENT MINIMUM STANDARDS FOR FIXED BASE OPERATORS AND OTHER AIRPORT TENANTS Article I Definitions Article II Fixed Base Operator Permits Article III Flight Training Article IV Air Taxi Service Article V Specialized Commercial Plight Services Article VI Aerial Applications Article VII Aircraft Sales Article VIII Aircraft Rental .Article IX Airframe and/or PowerPlant Repair Article X Radio, instrument, or Propeller Repair Article XI Multiple Services Article XII Flying Clubs Article XIII Airport Tenant Article XIV - Standard Lease Provisions/Minimum Requirements Article XV RESERVED Article XVI Schedule of Rates and Charges Article -XVII Airport Development Procedures Article XVIII Nonpublic Aircraft Fuels Dispensing Agreement Article XIX RESERVED Article XX RESERVED 3 Appendix A Fort Worth Meacham Airport Appendix B Fort Worth Spinks Airport Appendix C Fort Worth Alliance Airport i I� I'I I i 4 ARTICLE I DEFINITIONS A. DEFINITIONS. As used herein, the following terms shall be defined as follows: 1) Aeronautical Activity. Any activity which* involves.- makes possible, or is required for the •operation of aircraft, or which contributes to or is required for the safety' of such operations. The following activities, commonly conducted on airports, are aeronautical within this definition: pilot trainingo aircraft rental; FAR Part 135 and 1.21' charter operations, sightseeing; aerial photography, crop dusting, aerial advertising or surveying; scheduled and non-scheduled Part 121 operations; aircraft sales; sales of aviation petroleum products ( whether or not conducted in conjunction with other included activities); 'service, repair and maintenance of aircraft; sale of aircraft parts and accessories; radio and instrument sales, repair and maintenance; and any other activity which because of its direct relationship to the operation of aircraft, can be regarded as an aeronautical activity. 2) Airport. City of Fort Worth Meacham, Spinks, or Alliance Airports, Fort Worth, Texas, or any other airport owned and operated by the City of Fort Worth, except for the Dallas- Fort Worth International Airport.. 3) Airport Tenant. Defined as any person, firm or corporation leasing property from the City of Fort Worth on any city owned and operated airport for aeronautical purposes who is not a Fixed Based operator. An Airport Tenant may hangar his aircraft on his leased property subject to the provisions contained in Article XIII herein set forth. 4) Airport Tenant Sublessee. Any person, firm or corporation leasing property on the airports from any Airport. Tenant (described above) for aeronautical purposes who is not an FBO. 5) Fixed Base Operator or FEO. A Fixed Base Operator is defined as any person, firm, or corporation performing any of the functions or furnishing any of the services as hereafter set out for fixed based operators at the Fort Worth Meacham, Spinks or Alliance Airports, or any other airport owned and operated by the City of Fort Worth, except for the Dallas-Fort Worth International Airport. 5 No person, firm, or corporation shall engage in any commercial activity as a Fixed Base Operator as herein defined unless the same is done in full compliance with the standards, rules and regulations herein set forth. A person shall qualify as a Fixed Based Operator only upon providing the minimum services as described in ARTICLE II. 6) Person(s) . Any individual , firm, partnership, corporation, association, or company (including any assignee, receiver, trustee, or similar representative thereof) or the ' United States of America or any foreign government, or any state or political subdivision thereof. 7) Through the Fence. operations that are 'conducted off the actual airport ' or city property that have aeronautical access to any portion of the -Movement Area or Air Operations Area of the airports. 8) CSL. Combined Single Limit 9)' Commercial Tenant. Any person performing any of the services as herein described and set forth, who is not categorized as an FBO or Airport Tenant . 10) Commercial Tenant Sublessee. Any person performing any of the services as herein described and set forth, who is not categorized as an FBO or Airport Tenant, and is - leasing property from a Commercial Tenant on the airport. 7 F equipment necessary to remove disabled aircraft up to 12 ,500 lbs. from the airfield; G. APU/GPU starting service; H. tug and aircraft towing service; I . UNICOM service. 11) Provide for the following services . as a minimum: A. auto rental service; B. air taxi service; C. aircraft catering. service; and D. aircraft -rental . B. Certification. Prior to the commencement of FBO activities, said Airport tenant shall submit to the City of Fort Worth, a properly executed Statement of Compliance with the minimum qualifications set forth in Article II paragraph A of this document and with the applicable requirements specified in Article IX, or other specific requirements as maybe prescribed. The City of Fort Worth shall have the right at any reasonable time to inspect the premises to assure compliance.- C. Authorized Activities. FBO shall have the right to engage in other aeronautical activities as set forth in Articles III, IV, V, VI, VII, VIII, or X, by complying with the minimum standards- of the activities desired to be performed.. FBO shall provide written notification to the City of Fort Worth of it "s intent to, engage in those activities described in Articles II through X, and shall provide a Statement of Compliance. If the FBO wishes to engage in any aeronautical activity not set forth in Articles III through VIII , or X, it shall provide the City of Fort Worth with written notification of said intent and shall comply with specific minimum standards as determined by the City of Fort Worth. Permission to engage in the activities described herein shall not be granted until compliance with this Article, and all Federal , State and local laws, including Certificates of occupancy, Building Permits, Codes, etc. , have been met for all associated facilities (i .e. hangars, offices, etc. ) . In the event that said facilities fall below, or no longer meet compliance standards of Federal , State or local laws, the City has the right to suspend or revoke, temporarily or permanently, the right, to engage in the FBO activities described herein. 6 ARTICLE II FIXED BASE OPERATOR PERHIT A. Qualifications. A person shall qualify as an FBO upon proof that said person is a financially stable and responsible business enterprise, proof that capital is available to perform the activities contemplated, and a pro-forma of the activities contemplated. In addition, said Airport tenant shall demonstrate and provide proof , that the premises from which it intends to operate on the Airport(s) and the personnel employed by it comply with the following minimum requirements : 1) A - minimum of two (2) acres of land for the conduct of activities contemplated; 2) General aviation service facilities containing a minimum of 20,000 square feet. If no facilities exists, tenant must agree to construct suitable buildings within 12 months to fulfill the requirements defined herein; 3) A staffed office facility; 4) A heated and air-conditioned waiting room for passengers and flight planning facilities for crews of itinerant aircraft; 5) Sanitary restroom facilities; 6) Public telephones; 7) Parking sufficient to accommodate employees and customers; 8) Personnel on duty seven (7 ) days a week during normal working hours and additional employees available on call during non-business hours . Personnel shall be neatly uniformed. 9) Availability of fuel for the public, and properly trained personnel and equipment adequate to perform fueling services, as outlined in Paragraph D below. 10) Provide the following additional services: A. aircraft maintenance available to the general public as outlined in Article IX herein; B. client/passenger services to. include flight planning and weather briefing; C. appropriate grades of aircraft. lubricants; D. oxygen; E. aircraft storage and tiedown for permanent and transient aircraft; 9 Fuel Farm (as designated in the Airport Master Plan Study, if applicable) , and shall comply with applicable, Uniform Building Code Standards, fire codes and ordinances of the City of Fort Worth, Federal and State regulations, and recommendations of the National Fire Protection. Association. Aviation fuel tanks shall h'ave walk in capabilities for cleaning and maintenance. 3. Fuel storage, tanks shall comply with requirements set out by Environmental Protection Agency, the Federal Aviation Administration, Texas Water Commission, and local fire codes. 4. All plans and specifications for improvements on Tank Farm (including landscaping) shall be prepar'ed and presented to City of Fort Worth. and shall require the written approval of the Director of Airport Systems before any construction or installation may be undertaken. 5. The FBO shall store, handle and dispose of any hazardous waste or contaminated fuel in accordance with all Federal , State, and local laws, regulations and ordinances now or hereafter enacted. FBO shall bear all costs for cleanup of hazardous waste. The FBO shall make available at the request of the Director of Airport Systems or ' his designated representative, copies of all manifested waste and certification of approved disposal site. All hazardous waste shall be disposed of - off the airport property. E. INSURANCE AND INDEMNIFICATION 1. Fire Insurance During the full term of the FBO Permit, the FBO shall , at its sole cost and expense, cause all improvements constructed or installed on FBO's leased premises to be kept insured to the full insurable value thereof against the perils of fire, extended coverage, vandalism, explosion and like perils. Said insurance shall be procured from a company authorized to do business in the State of Texas, and FBO shall provide City with 'evidence satisfactory to City that such coverage has been procured and is being maintained. 8 The FBO shall display in a public area and in public view within the FBO facility, the Fixed Base Operator Permit issued by the City, indicating the FBO's compliance with the provisions of this Article. D. Public Aircraft Fuels Dispensing. 1. FUEL A. Prior to the presentation of a request for an FBO Permit, the .prospective FBO shall furnish a letter of product commitment from an oil company acceptable to the City of - Fort Worth. B. The FBO shall provide at least two grades of aircraft fuel , including 100 Octan6 and Jet A. Said fuel shall be that 'of a nationally recognized company acceptable to the City of Fort Worth. Fuel prices shall be posted in public view either on fuel trucks and/or Fixed Base Operator Line Building. 2. FUELING FACILITIES A.. Trucks The FBO shall furnish mobile dispensing trucks, at least one for each- type of fuel , having a minimum capacity of 750 gallons of 100 Octane and 2,200 gallons of Jet A. Separate filter-equipped, dispensing pumps and meters for each type of fuel shall be required. Trucks shall be properly maintained, operated, and equipped in accordance with applicable Federal Aviation Administration recommendations , regulations, and requirements . Each truck will be equipped with a ground controlled radio capable of communicating with the Control Tower. B. Tank Farm 1. The FBO shall furnish a minimum of two aircraft fuel storage tanks with a capacity of 10,000 gallons each. Unless FBO's fuel trucks are licensed for public road operation, FBO shall also provide a minimum 450 gallon automotive fuel storag6 tank. 2. Fuel storage tanks shall be above ground or under ground and such installations shall be in a location approved by the City of Fort Worth in the 10 The proceeds of any such insurance, paid on account of any of the perils aforesaid, shall be used to defray the cost of repairing, restoring or reconstructing said improvements, as necessary; provided, however, that if the permit is canceled, such proceeds shall be paid to the City for it's exclusive use and benefit . Property insurance policies required by this paragraph shall contain waiver of subrogation endorsements and shall contain a provision that City shall be notified by the insurance company of any renewals, changes or cancellations of such insurance coverage by at least thirty (30) days written notice to City, and shall name the City as an additional insured. 2. Indemnification City shall stand indemnified by FBO as. herein provided. FBO is and shall be deemed to be an independent contractor and operator responsible to all parties for its respective -acts or omissions, and City shall in no way be responsible therefor. FBO covenants and agrees to indemnify, hold harmless and defend City, its jofficers, agents, servants and employees from and against any and all claims for damages or injury to persons or property arising out of or . incident to the leasing of or the use .and occupancy of the premises by FBO, its employees, patrons , contractors or subcontractors, and FBO does hereby assume all liability and responsibility for injuries , claims or suits for damages to persons or property of whatsoever kind or character whether real or asserted, occurring during the term of this permit in connection with the use or occupancy of the premises by FBO, its employees, patrons, contractors, or subcontractors. FBO shall pay promptly when due all bills or charges for construction or maintenance as well as any other amounts due for material or services furnished in connection therewith, and FBO shall indemnify City against any and all mechanics and materialmen's liens or any other types of liens imposed upon the premises demised hereunder arising as a result of FBO's conduct or inactivity. FBO shall promptly, after the execution, of its FBO Permit, provide public liability insurance for personal injuries, including death, growing out of any one accident or other cause in a minimum sum of Three Million and No/100 dollars ($3,006;000.00) for one person and Three million and NO/100 dollars ($3,000,000.00) for two or more persons, shall provide property damage liability insurance in. a minimum sum of Three Million and No/1-00 Dollars ($3,000,000 .00) for property damage growing out of any one accident or other cau.se'; . shall provide products liability insurance in a minimum sum of Three Million -and No/100 dollars ($3,000,000.00) , and shall provide hangar keeper's liability insurance in a minimum of Three Million and No/100 Dollars ($3,000,000 .00) . FBO shall maintain said insurance with insurance underwriters authorized to do business in the State of Texas satisfactory to City. FBO shall furnish City with a certificate from the insurance carrier showing such insurance to be in full force and effect during the entire term of this permit,- or shall deposit with City copies of said policies. Said policies or certificates shall contain a provision that written notice of cancellation or of any material change in said policy to the i*nsuker shall be delivered to City thirty days in advance of the effective date thereof, and said policy shall name the 'City as . an additional insured. F. FEES 1. Registration The FBO shall be responsible for registering all above and below ground fuel *storage tanks with the Texas Water Commission, City of Fort Worth, and any other agency now or here'after requiring so, and be solely responsible for payment of all registration fees and other associated costs. 2. Fuel Flowage Fee For the privilege of securing the right to dispense aircraft fuels , FBO shall pay to City a fuel flowage fee on the rate scale established by the City Council of the City of Fort Worth. Such fuel flowage fee rate scale may be adjusted by City at any time during the term of the agreement but in no case shall the rate be greater than that paid by any other FBO on the Airport. 3. Parking Fees Any and all aircraft parking fees as established by the City and collected by FBO for parking on the public use transient apron or on any other property of City, not leased out on an exclusive basis, shall be paid to the City subject to the terms of any agreements for the collection of those fees. 12 4 . Time of Payment Fuel flowage fees and the payments on aircraft parking fees shall be due on the tenth day of the month succeeding that in which the aircraft fuels were supplied by FBO and/or parking -fees collected, and shall be delinquent if unpaid before the fifteenth day of each month. G. RECORDS OF FBO The FBO shall keep true and accurate records and books which shall show all fuel deliveries made to FBO at said Airport and all parking fees collected. FBO's fuel supplier shall furnish monthly delivery reports to the Director of Airport Systems upon request . With the payment of the fuel flowage fees and the aircraft parking fees as set forth in Paragraph F. 2 and F.3 above, FBO 'shall submit to City detailed statements of such parking fees collected and of all fuel sales for the preceding calendar month. These statements shall be in a form and show such reasonable detail and breakdown as may- be required by City. H. AUDIT Within thirty days after the end of each of City's fiscal years, FBO shall submit to City detailed statement of total gallons of fuel delivered into the Tank Farm and total parking fees collected. Such statement shall be prepared by independent Certified Public Accountant . and any adjustment due on payments made during the previous year shall be accomplished at that time. In addition, City shall have the right at any time during the term of its agreement with FBO to authorize an audit of FBO's records pertaining to its FBO operation on the Airport . Such audits shall be undertaken by an independent Certified Public Accountants, satisfactory to City. The cost of such audit shall be borne by' City. I. CANCELLATION 1. Cancellation by FBO, FBO Permits shall be.subject to cancellation by FBO after the happening of one or more of the following events: i i 13 a. The permanent abandonment of the Airport . b. The lawful assumption by the United States Government, or any authorized agency thereof, of the operation, control or use -of the Airport , or any substantial part or parts thereof, in such a manner as substantially to restrict FBO for a period of at least ninety days from operating thereon. C. Issuance by any court of competent jurisdiction of any injunction in any way preventing or restraining the use of the Airport, and the remaining in force of such injunction for a period. of at least ninety days. d. The default by City in the performance of � any covenants or agreement required to be performed by City and the failure of City to remedy such default for a period of sixty days after receipt from FBO of written notice to remedy the same. FBO may exercise such right of termination by written notice to City at any time after the elapse of the applicable periods of time and the permit. shall terminate as of that date. Rentals due shall be payable only to the date of said termination. Upon cancellation, FBO must submit an independent, certified engineering report indicating all facilities are in compliance with all Federal , State and local regulations. 2.. Cancellation by City FBO Permits shall be subject to cancellation by City in the event of any of the following acts or omissions by FBO: a. Be in arrears in payment of the whole or any part of the amounts agreed upon for a period of ten days after the time such payments become due, b. Make a general assignment for . the benefit of creditors; c. File a voluntary petition of bankruptcy; d. Abandon the demised premises; e. Discontinue required service to the public; 14 f Fail to replace any improvements which have been destroyed by fire, explosion, etc. within six months from the date of such destruction; 9. Default .in the performance of any of the covenants and conditions required herein (except . rental payments) to be kept and performed by FBO, and such default continues for a period of thirty days after receipt of a written notice from City of said default; or h. Fall below or be in. non-compliance with any Federal , State or local laws governing the occupancy of associated facilities such as hangars , offices, etc. In any of the aforesaid events, City may take immediate possession of the demised premises and remove FBO's effects, forcibly, it necessary, without being deemed guilty of trespassing. Upon said entry, the permit shall terminate. Any fees due shall be payable to said date of termination. Failure of City to declare the permit terminated upon the default of FBO for any of the reasons set forth herein, shall not operate to bar or destroy the right of City to cancel the permit by reason of any subsequent violation of the terms hereof. J. ASSIGNMENT, TRANSFER OR SUBLETTING The FBO shall not assign, sublet or transfer its FBO Permit or any privileges herein contained without prior written consent of City. Lt is specifically stipulated and agreed that FBO will not enter ' into any tie-in agreements with other operators or sublet any of the rights herein whereby other operators share in the privileges or the services stipulated in this permit . K. SUSPENSION OF PERMIT During the time of war or national emergency, City shall have the right to lease the landing area or any part thereof to the United States Government for military use. if any such lease is executed, any 15 provisions of FBO's permit which are inconsistent with the provisions of the " lease to the Government will be suspended. L. ATTORNEY'S FEES In any action brought by City for the enforcement of the 'obligations of FBO, City shall be entitled to recover interest and reasonable attorney's fees. M. TAXES The FBO agrees to pay any taxes or assessments which may be lawfully levied against FBO's occupancy *or use of the demised premises or any improvements placed thereon as a result of FBO's occupancy. N. RELOCATION OF IMPROVEMENTS In the event City requires any of the Tank Farm premises for expansion or development of the Airport , City reserves the right, on six months notice, to relocate or replace the improvements made by those FBO's whose fuel tanks are located within the City's designated fuel farm area in substantially similar form at another generally comparable location on said Airport. The City shall have the right to one (1) year to complete the relocation construction from the time FBO is notified. O. SUBORDINATION OF AGREEMENT The FBO permit shall be subordinate to the provisions of any existing or future agreement between City and the United States relative to the operation or maintenance of the Airport , the execution of which has or may be required as a condition precedent to the expenditure of Federal funds for the development of the Airport. 16 ARTICLE III. - FLIGHT TRAINING Any .person, Airport Tenant , Airport Tenant Sublessee, Commercial Tenant, or Commercial Tenant Sublessee desiring to engage in flight training shall provide as a 'minimum the following: A. Land. Sufficient area for the proposed operations including automobile parking, training, aircraft tiedowns and/or hangar space to accommodate leased or owned aircraft. B. Buildings. Lease or construct, within 12 months, adequate, and properly air-conditioned,' lighted and heated floor space to provide classroom, briefing room, pilot lounge, rest rooms, office space and public use telephone. The above mentioned floor space shall be sufficient to accommodate the requirements of its program. C. Personnel . At least one (1) properly FAA certificated flight/ground instructor to cover the type training offered. D. Aircraft. At least one (1) owned/leased properly certificated aircraft equipped for the type flight instruction to be offered.. If leased, documentation authorizing the operator to utilize said aircraft for flight instruction must be provided. E. Hours of Operation. The hours of operation shall be a minimum of eight .(8) hours daily, a minimum of five (5) days a week. F. Insurance Coverage for owned/Leased Aircraft. Aircraft Liability Bodily Injury & Property Damage 600,000 CSL Passenger Liability 100,000 each person 300,000 each occurrence Student/Renter Pilot Coverage Comprehensive Public Liability/P'roRerty 'Damage Bodily Injury & Property Damage 600,000 CSL Ii 17 ARTICLE IV AIR TAXI SERVICE Any persons, Airport Tenants, Airport Tenant Sublessees, Commercial Tenants, Commercial Tenant Sublessees and FBOs desiring to engage in air taxi service must hold an FAA Air Taxi- Commercial Operator Certificate with ratings appropriate to the functions to be accomplished, and provide as a minimum the following: A. Land. Sufficient area for the proposed operations including automobile parking, aircraft tiedown and or hangar space to accommodate leased or owned aircraft. B. Buildings. Lease or construct, within 12 months, adequate, and properly air- conditioned and lighted floor space for office, public lounge, rest rooms and public use telephone. Building should also accommodate satisfactory arrangements for the checking in of passengers, handling of luggage, ticketing, ground transportation, and other related activities. C. Personnel . Properly FAA certificated pilot(s) rated to conduct the air taxi services offered. D. Aircraft. A minim'um of one (1) four place aircraft meeting all the requirements of the Air Taxi/Commercial Operator Certificate held. Aircraft shall be owned or leased by agreement in writing and meet all the relevant requirements of Pait­135 of the FAA Regulations. E. Hours of Operation. The hours " of operation shall be a minimum of 8 hours daily, a minimum of 6 days a week. on call service during non-operating hours shall be provided. F. Insurance. Aircraft Liability Bodily injury & 600,000 CSL Property Damage Passenger Liability 600,000 each passenger GENERAL LIABILITY Bodily Injury Property Damage 600,000 CSL 18 ARTICLE V SPECIALIZED COMMERCIAL FLIGHT SERVICES Persons, Airport Tenants, Airport Tenant Lessees , Commercial Tenants, Commercial Tenant Sublessee, and FBO's desiring to engage in specialized commercial air activities, including but not limited to, those listed below shall comply with the minimum standards specified herein: Banner towing and aerial advertising Aerial photography or survey Fire fighting/fire patrol Powerline/pipeline patrol Any other operation specifically excluded from Part 135 of the Federal Aviation Regulations. A. Land. Sufficient aircraft ramp and/or hangar space to accommodate leased/owned ,aircraft . Land area should be capable of. ,providing facilities for auto parking, paved hangar apron and other area as needed to perform the operations contemplated. B. Buildings. Lease or construct, within 12 months, adequate, and properly heated, ' air-conditioned, and lighted floor space for office and rest . rooms. If aircraft maintenance is to be performed on site, a building space is required for shop and storage space. C. Personnel . - A minimum of one (1) properly certificated Commercial Pilot with appropriate ratings for the aircraft to be flown and operations to be conducted. D. Aircraft. A minimum of one (1) properly certificated aircraft (single/multi-engine) meeting the requirements for the operations to be conducted. Aircraft owned or leased must meet all airworthy requirements of the FARs. E. Hours of Operations. The normal hours of operation shall be at the operators discretion, but services should be reasonably available to the public. F. Insurance. Aircraft Liability Bodily Injury & Property Damage 600,000 CSL GENERAL LIABILITY Bodily Injury Property Damage 600,000 CSL 19 ARTICLE VI AERIAL APPLICATIONS Persons, Airport Tenants, Airport Tenant Lessees, Commercial - Tenants , Commercial Tenant Sublessees, and FBO's desiring ' to engage in aerial application operations must, hold an Agricultural Aircraft operator certificate issued by the FAA; comply with the requirements of all Federal , State of Texas, and any local laws and/or regulations applicable to aerial application operations . A. Land. Sufficient paved aircraft parking apron and space for the loading. and unloading of vehicles and equipment. An area must be set aside specifically for the cleaning and servicing of aircraft . B. Facilities. A segregated chemical storage area protected from public access. Wash down of agricultural spraying aircraft and flushing of agricultural aircraft spray tanks will be accomplished only in areas so designated and in accordance with applicable EPA, State 'Water Commission, State Department of Agriculture,. State Department of Health and other Federal , State, and local rules and regulations. Empty chemical containers will be disposed of off the airport in accordance with applicable Federal and State laws. A centrally drained, paved area for aircraft loading/unloading, servicing and dumping, tank truck handling and for the mixing of compounds shall contain an adequate area and meet all government • requirements.. Adequate ground equipment for. the handling and loading of dusting materials shall be provided. C. Personnel . A minimum of one (1) properly FAA certificated commercial pilot, properly rated for the aircraft to be used and meeting the requirements of all appropriate FAA Regulations and applicable State and local regulations. D. Aircraft. A minimum of one (1) airworthy aircraft meeting all the requirements of the appropriate FAA Regulations and applicable State and local regulations. Leased aircraft shall be by written agreement and based on the Lessee's premises. E. Hours of Operation. Available or on call . 24 hours during normal aerial application season. 20 F. Insurance. Aircraft Liability Bodily Injury & j Property Damage 600,000 CSL General Liability Bodily Injury & Property Damage 600,000 CSL Environmental Impairment Liability (EIL) 1,000,000 each occurrence Agricultural spraying operations will be conducted in accordance with procedures approved by the City of Fort Worth and only from the areas designated on the Airport(s) . Careless* handling of chemicals Will result in appropriate legal action. 21 I ARTICLE VII - AIRCRAFT SALES Persons, Airport Tenants , Airport Tenant Lessees, Commercial Tenants, Commercial Tenant Sublessees, and FBO°s desiring to engage in the business of the sale' of new or used aircraft must lease and/or provide as a minimum the following:. A. Land. Sufficient land area to adequately store, display and service aircraft. B. Buildings. Lease or construct, within 12 months, a minimum of 2,000 square feet of properly lighted, air-conditioned and heated space for office, public lounge, rest rooms and public use telephones . C. Personnel . . A minimum of One (1) current properly certificated FAA Commercial Pilot with rating appropriate for the types of aircraft to be demonstrated and to conduct the operations contemplated. D. Dealerships. New aircraft dealers shall hold an authorized factory or subdealership. All aircraft dealers shall hold a dealership license or permit, if required by state or local regulations. E. Used Aircraft. A Lessee engaged in the sale of used aircraft must conform to the provisions of FAR Part 47, Subpart C, and must possess a valid "Dealers Aircraft Registration Certificate", FAA Form 8050. F. Aircraft. A dealer of new aircraft shall have available or on call one (1) current model demonstrator. G. Services . Provide for adequate parts and servicing of aircraft and accessories during warranty periods for new aircraft. H. Hours of Operation: The normal operating hours shall be at the operators discretion, but should services should be reasonably available to the public. I . Insurance. Aircraft Liability Bodily Injury & Property Damage 600,000 CSL Passenger Liability 600,000 each passenger I 22 I i General Liability Bodily Injury & Property Damage 600,000 CSL I The above coverage shall include aircraft held for sale and demonstration by the Lessee but owned by others. Products & Completed Operations Liability- 3,000,000 each occurrence Hangar Keepers Liability 500 ,000 each aircraft 1 ,000,000 each occurrence J. Sales Tax Permit. Each lessee shall hold and conspicuously display a current Sales Tax Permit issued by the State of Texas. 23 ARTICLE VIII AIRCRAFT RENTAL Any person, Airport Tenant, Airport Tenant Lessee, Commercial Airport Tenant, Commercial Tenant Sub-Lessee, or FBO desiring to engage in the rental of aircraft to the public must provide as a minimum the following: A. LAND. Sufficient land for the parking and storage of as many aircraft as are available for rent. B. BUILDINGS. Lease or construct, within 12 months, a building which will provide adequate and properly air-conditioned, "heated and lighted space for office, public lounge, rest rooms and public use telephones. If . aircraft maintenance is to be performed on site, additional adequate area will be required for shop and storage space. C. PERSONNEL. One- person having a current commercial pilot certificate with appropriate ratings for the type of aircraft and training to be offered. if aircraft maintenance is to be performed -on site, proper certification is required for shops and personnel . D. AIRCRAFT. At least one airworthy aircraft owned or leased in writing to the lessee, which shall be certified for flight under instrument conditions. E. HOURS OF OPERATION. Hours of operation will be a minimum of 6 days per week, 8 hours per day. F. INSURANCE COVERAGE FOR OWNED OR LEASED AIRCRAFT Aircraft Liability Bodily Injury & Property Damage 600,000 CSL Student and Renter Pilot Coverage General Liability Bodily Injury & Property Damage 600,000 CSL 27 . 7 This Agreement shall be performable and enforceable in Tarrant County, Texas, and shall be construed in accordance with the laws of the State of Texas . 27 . 8 This Agreement is made for the sole and exclusive benefit of the City and the Lessee, their successors and assigns, and is not made for the benefit of any third party. 27 . 9 In the event of any ambiguity in any of the terms of this Agreement , it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 27 . 10 All covenants , stipulations and agreements in this Agreement shall extend to and bind each party hereto, its legal representatives, successors and assigns . 27 . 11 The titles of the several articles of this Agreement are inserted herein for convenience only, and are not intended and shall not be construed to affect in any manner the terms and provisions hereof, or the interpretation or construction thereof . 27 . 12 Nothing herein shall be construed as creating a joint enterprise or partnership between the City and - 78 - Lessee. Lessee shall at all times be considered an independent contractor in the performance of the terms and conditions of this Agreement, and shall - be solely responsible for the servants, employees, contractors, and subcontractors . The doctrine of respondeat superior shall have no application as between the City and the Lessee. 27 . 13 Leasehold Mortgagee Protection. The City and Lessee shall cooperate in including in this Agreement by suitable amendment from time to time any provision which may reasonably be requested by any proposed Leasehold Mortgagee for the purpose of implementing the mortgagee protection provisions contained in this Agreement and allowing such mortgagee reasonable means to protect or preserve the lien of the Leasehold Mortgage on the occurrence of a default under the terms of this Agreement . The City and Lessee each agree to execute and deliver (and to acknowledge, if necessary, for recording purposes) any agreement necessary to effect any such amendment; provided, however, that any such amendment shall not in any way affect the term or rent under this Agreement nor otherwise in any material respect adversely affect any rights of the City under this Agreement . It is understood and agreed, however , that - 79 - if such amendments or agreements vary the substantive rights of the parties as set forth in this Agreement, then such amendments or agreements must be approved by the City Council of the City. 27 . 14 Nonmerger . There shall be no merger of this Agreement or the leasehold estate created hereby with the fee estate in and to the Leased Premises by reason of the fact that this Agreement or the leasehold estate created hereby, or any interest in either of them, may be held directly or indirectly by or for the account of any person who shall own the fee estate in and to the Leased Premises, or any portion thereof , and no such merger shall occur unless and until all persons at the time having any interest in the fee estate and all persons having any interest in this Agreement or the leasehold estate, including the holder of any mortgage upon the fee estate, shall join in a written instrument effecting such merger . 27 . 15 Force Majeure. Any time period specified in this Agreement for the performance of any duty or obligation by either the City or Lessee shall be extended to include delays - 80 II that result from any cause beyond the reasonable control of either party. 27 . 16 Other Ground Leases . If at anytime during the term of this Agreement the City, as lessor, enters into any other ground lease of real property located at Alliance Airport, and if such other ground lease contains any terms, conditions, or other provisions ( including, but not limited to, the payment of rent and use fees, but excluding any provision that would extend the 30-year term of this Agreement) which, directly or indirectly, are more favorable or beneficial to the lessee thereunder than are the terms, conditions, and provisions of this Agreement to Lessee; then the terms, conditions , and other provisions of this Agreement shall be deemed to be automatically amended to the extent necessary to confer substantially the same favorable or beneficial treatment upon Lessee. 27 . 17 Use of Parcels No. 1 , No. 2, and No. 4 . The City agrees that until December 31, 1996, ( i) Parcels No . 1 and No. 4 described on Exhibit D attached hereto shall only be used for the construction, operation, maintenance, and use of a permanent terminal and administration building having 81 - a minimum of 25, 000 square feet plus associated parking areas, and ( ii) Parcel No . 2 described on Exhibit D shall only be used for the construction, operation, maintenance, and use for FBO or other aeronautical purposes . 27 . 18 Fire Station Tract Obligations . Lessee, at its expense, will install a water line and water meter to serve improvements located on the Fire Station Tract . 27 . 19 Right of First Refusal . The City grants to Lessee certain rights of first refusal as more particularly set forth on Exhibit E attached hereto . ARTICLE 28 SUBORDINATION CLAUSES 28 . 1 This Agreement is subject and subordinate to the following: 28 . 1 . 1 The City reserves the right to develop and improve the Airport as it sees fit, regardless of the desires or view of the Lessee, and without interference or hindrance by or on behalf of the Lessee. Accordingly - 82 - nothing contained in this Agreement shall be construed to obligate the City to relocate the Lessee. 28 . 1 .2 The City reserves the right to take any action it considers necessary to protect the aerial approaches to the Airport against obstruction, together with the right to prevent Lessee from erecting or permitting to be erected any building or other structure on the Airport which, in the opinion of the City, would limit the usefulness of the Airport or constitute a hazard to aircraft . 28 . 1 .3 This Agreement is and shall be subordinate to the provisions of existing and future agreements between the City and the United States relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent or relevant to the obtaining or expenditure of federal funds for the benefit of the Airport . II 28 . 1 . 4 During the time of war or national emergency, the City shall have the right to lease all or any part of the landing area or of the Airport to the United States for military or naval use, and if any such lease is executed, the provisions of this Agreement insofar as they may be inconsistent with the provisions of such - 83 lease to the Government, shall be suspended, but such suspension shall not extend the term of this Agreement . Abatement of rentals shall be reasonably determined by the City in proportion to the degree of interference with the Lessee' s use of the Leased Premises . 28 . 1 . 5 Except to the extent required for the performance of any obligations of the Lessee hereunder, nothing contained in this Agreement shall grant to the Lessee any rights whatsoever in the airspace above the Leased Premises other than those rights which are subject to Federal Aviation Administration rules, regulations and orders currently or subsequently effective. 28 . 1 . 6 Nothing in this Agreement obligates the City in any way to take any action that is prohibited by the 1968 Concurrent Ordinance adopted by the City of Fort Worth and the City of Dallas, Texas regarding the Dallas/Fort Worth International Airport . The Lessee agrees that in the performance of this Agreement, it will do no act and cause no omission that is inconsistent with, or that will place the City in violation of, the 1968 Concurrent Ordinance or any proceedings relating to the operation of the Dallas/Fort Worth International Airport . The parties - 84 hereto acknowledge that the rights and duties of the Lessee and the terms of this Agreement may be qualified to the extent that the provisions of the 1968 Concurrent Ordinance and proceedings relating to the operation of the Dallas/Fort Worth International Airport govern the operation of Alliance Airport . 28 . 1 . 7 Notwithstanding anything to the contrary stated herein, any contractual or statutory lien claimed by the City in all goods, wares , equipment, fixtures furniture and other personal property of Lessee presently or hereafter situated in the Leased Premises and all proceeds therefrom (collectively, the "Collateral" ) (save and except liens for ad valorem taxes levied on such personal property) shall be subject and subordinate to the rights , if any, of any Leasehold Mortgagee, any holder of any Leasehold Mortgage or any holder of a lien or security interest securing purchase money indebtedness covering any of the Collateral and the City agrees to execute such additional documents as shall be reasonably necessary to effect or evidence such subordination. Lessee agrees to pay the City all reasonable and necessary costs incurred by the City in connection with the negotiation, preparation, review, and execution of 85 - such additional documents, including, but not limited to, all reasonable and necessary attorneys ' fees . 28 . 1 . 8 It is agreed and understood that nothing in this Agreement shall be interpreted to constitute an amendment or modification to the respective rights, duties, and obligations of either the City or the Airport Operator under that certain Management Agreement between Alliance Air Services, Inc . , as Operator , and the city of Fort Worth dated December 1993 . Notwithstanding the foregoing, however, in the event there is any conflict between this Agreement and any term or provision of the Management Agreement that concerns, addresses, or deals with any ground lease of Airport property (including constructing improvements and/or providing FBO services) , this Agreement shall control . 28 . 1 . 9 Any person or entity to which this Agreement (or any rights herein) is assigned, conveyed, or otherwise transferred as a result of any foreclosure by any Leasehold Mortgagee (or as a result of any deed or other transfer in lieu of foreclosure) shall be bound by all terms and conditions of this Agreement . 86 - ARTICLE 29 VENUE . Ii Should any action, whether real or asserted, at law or in equity, arise out of or in connection with the terms and conditions of this Agreement or the performance, nonperformance or attempted performance hereof, venue for said action shall be in Tarrant County, Texas . ARTICLE 30 ENTIRE AGREEMENT 30 . 1 This Agreement consists of Articles 1 to 30 , inclusive, Exhibits A-1 , A-2, A-3, B, C, D, and E, Schedule A and Appendix A. 30 . 2 This Agreement constitutes the entire agreement of the parties hereto and may not be changed, modified, discharged or extended except by written instrument duly executed by the City and the Lessee. The parties agree that no representations or warranties shall be binding upon the City or the Lessee unless expressed in writing in this Agreement of Lease. - 87 - IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written above. LESSOR: ATTEST: CITY OF FORT WORTH, TEXAS By: qa) ICPty Manager it secretary LESSEE: Approved As to Form And Legality: ALLIANCE AIR SERVICES, INC. By: City Attorney Officer Title: Preslit 6? —Z11 eG) Contra--' Lathoriza'U'Lo'n Date - 88 - SCHEDULE A Lessee shall , at its own cost and expense, take out and maintain such insurance for the term of this Agreement as the Lessee is required to take out and maintain under the Workers ' Compensation Act; and also take out and maintain such public liability and automobile liability insurance sufficient to fulfill the Lessee' s indemnification obligations set forth in Article 9 of the Lease Agreement . The policies shall provide. the amounts of insurance specified in this Schedule A and shall name the City and its Airport Operator as additional insureds for their own acts or omissions . Upon execution of this Agreement, certificates of insurance in form acceptable to the City and marked "premium paid" must be submitted to the City. Each certificate shall have endorsed thereon: A clause naming the City of Fort Worth and its Airport Operator, Alliance Air Services , Inc . , as additional insureds under the policies . "No cancellation or change in the policy shall become effective until after thirty (30) days notice by registered mail to the City Manager, City of Ft . Worth, 1000 Throckmorton, Ft . Worth, TX. 76102 . " - 89 - Upon failure of Lessee to furnish, deliver and maintain such insurance as above provided, the City may obtain such insurance and charge Lessee the cost of the insurance plus all appropriate administrative charges and incidental expenses associated with the transaction. Failure of Lessee to take out and/or maintain, or the taking out and/or maintenance of any required insurance shall not relieve Lessee from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with the obligations of Lessee concerning indemnification. All required insurance must be in effect and so continue during the life of this Agreement in not less than the following amounts : A. Workers ' Compensation Unlimited - Statutory - in compliance with the Compensation Law of the State of Texas . B. General Liability Insurance with a maximum combined single limit of $3 ,000,000 . 00 per occurrence. This insurance shall indicate on the Certificate( s) of Insurance, marked "premium paid" , the following coverages : - 90 i Comprehensive General Liability Premises/Operations Contractual Liability i Independent Contractors Products and Completed Operations Broad Form Property Damage Personal Injury Hangar Keepers Liability C. Auto Liability (single limit or occurrence $500 , 000 . 00) . Owned, Non-owned and Hired Location of operation shall be "All locations in Tarrant and Denton Counties , Texas" . Nothing herein contained shall prevent the Lessee from taking out any other insurance for protection of its interest which it deems advisable or necessary. 91 - Appendix A Construction by Lessee 1 . Prior to the commencement of construction of any Improvements , Lessee shall submit to the City complete plans and specifications and an estimated time table for such proposed construction. 2 . The City may refuse to grant approval of Lessee ' s plans and specifications if , in its reasonable opinion, the proposed facilities as laid out and indicated by the Lessee on such plans or constructed according to such plans and specifications : 2 . 1 will be structurally unsound or unsafe or hazardous for human occupancy; 2 . 2 will not substantially comply with all the requirements of this Agreement; 2 .3 will be so located that there will not be sufficient clearances in respect to existing or planned projecting aprons, runways or taxiways adjacent thereto; - 92 2 .4 will be in violation of any state code, OSHA-70, the National Electric and Fire Protection Codes or any other laws, ordinances or regulations of any governmental authority having jurisdiction over the Airport; 2 , 5 will not be at locations or not be oriented in accordance with the approved comprehensive plans for the Airport . 3 . Upon approval of such plans and specifications by the City, the Lessee shall proceed expeditiously and with all reasonable diligence to construct, at its own expense and cost, the facilities in accordance with such approved plans and specifications and complete the facilities in accordance with the estimated time table (subject to delays beyond Lessee' s reasonable control) . 3 . 1 At any time that Lessee undertakes construction of any Improvements in excess of $25, 000 . 00 , Lessee shall, at its own cost and expense, cause to be made, executed and delivered to the City a cash deposit or a pledge of government securities (in the form attached herewith as Exhibit C) in an amount sufficient to secure Lessee ' s construction - 93 - obligations or two separate bonds in accordance with Chapter 2253 of the Texas Government Code as follows : (1) Prior to the date of commencement of construction, a contract surety bond (performance bond) in a sum equal to the full amount of the construction contract awarded. Said bond shall be drawn in a form and from such company as approved by the City; shall guarantee the faithful performance of necessary construction and completion of Improvements in accordance with approved final plans and detailed specifications; and shall guarantee the City against any losses and liability, damages, expenses, claims and judgments caused by or resulting from any failure of Lessee to perform completely the work described as herein provided. (2) Prior to the date of commencement of construction, a payment bond with Lessee ' s contractor or contractors as principal, in a sum equal to the full amount of construction contract awarded. Said bond shall guarantee payment of all wages for labor and services engaged and of all bills for materials, - 94 - supplies and equipment used in the performance of said construction contract . Bonds shall be standard performance and payment bonds provided by a licensed surety company in the State of Texas . 4 . All construction work shall be done in accordance with the following terms and conditions : 4 . 1 The Lessee hereby assumes the risk of loss or damage to all of the construction work prior to the completion thereof and the risk of loss or damage to all property of the City arising out of or in connection with the performance of the construction work. In the event of such loss or damage, the Lessee shall forthwith repair, replace and make good the construction work and the property of the City without cost or expense to the City. 4 . 2 The Lessee shall itself and shall require its contractors to indemnify, hold harmless and defend the City, its officers , agents and employees from and against any and all claims or suits for property damage and/or personal injury, including death, to any and all persons, of whatsoever kind or character, whether real or asserted, arising out of or in connection with any construction, - 95 - maintenance or repair work performed on or in connection with the Leased Premises, by the Lessee, its officers, employees, contractors, subcontractors, licensees, invitees, or tenants (and to provide such insurance as required in Section 4 . 7 of this Appendix) covering the acts and omissions of the Lessee and its contractors; and the Lessee shall itself assume and shall require its contractors to assume all responsibility and liability for such claims or suits . The Lessee shall itself assume and shall require its contractors to assume all responsibility and liability for, and shall indemnify and hold harmless the City for any and all damage to or destruction of Alliance Airport property, the Leased Premises , and their facilities, arising out of or in connection with any construction, maintenance or repair work performed on or in connection with the Leased Premises, by the Lessee, its officers , employees , contractors, subcontractors, licensees, invitees, or tenants . 4 .3 The Lessee shall identify a project manager during the construction period with whom the City may communicate at all times . 4 . 4 The City shall have the right, through its duly designated representatives, to inspect the construction 96 - work and the plans and specifications thereof, at any and all reasonable times during the progress thereof and from time to time, in its discretion, to take samples and perform testing on any part of the construction work, but the taking of samples and 'testing shall be conducted so as to minimize interference with the construction work. 4 . 5 The Lessee agrees that it shall deliver to the City as-built" drawings (capable of being reproduced) of the construction work and shall during the term of this Agreement keep said drawings current showing thereon any changes or modifications which may be made. (No changes or modifications to be made without the City' s consent not to be unreasonably withheld or delayed. ) 4 . 6 The Lessee shall pay or cause to be paid all claims lawfully made against it by its contractors, subcontractors, materialmen and workmen, and all claims lawfully made against it by other third persons arising out of or in connection with or because of the performance of any repair, maintenance or construction work, and shall cause its contractors and subcontractors to pay all such claims lawfully made against them, provided, however, that nothing herein contained shall be construed to limit the right of the Lessee to contest any claim of a contractor, subcontractor, materialman, - 97 - workman and/or other person and no such claim shall be considered to be an obligation of the Lessee within the meaning of this Section unless and until the tame shall have been finally adjudicated. The Lessee shall use its best efforts to resolve any such claims and shall keep the City fully informed of its actions with respect thereto. 4 . 7 The Lessee shall procure and maintain comprehensive general liability insurance, including automotive, with a contractual liability endorsement covering the obligations assumed by the Lessee in Sections 4 . 1 and 4 .2 of this Appendix, which shall be in addition to all policies of insurance otherwise required under this Agreement; or the Lessee may provide such insurance by requiring each contractor engaged by it for the construction work to procure and maintain such insurance including such contractual liability endorsement . Said insurance shall not contain any care, custody or control exclusions, any exclusion for explosions, collapses or damage, or any exclusions for bodily injury to or sickness, disease, or death of any employee of the Lessee or of any of its contractors which would conflict with or in anyway impair coverage under the contractual liability endorsement . Said insurance shall name the City, its.- - 98 officers, its employees and its agents as additional insureds and be in not less than the following amounts : Bodily Injury Liability: For injury to or wrongful death to one person . . . . . . . . . . . . . . . $1 , 000 , 000 For injury or wrongful death of more than one person for any one occurrence. . . $5, 000 , 000 Aggregate Products Completed Operations . . . $3 , 000 , 000 ( ii) Property Damage Liability: For all damages arising out of injury to or destruction of property in any one occurrence. . . . . . . . . . . . . . . $3 , 000 , 000 Aggregate Products Completed Operations . . . $3 , 000 , 000 Aggregate Operations . . . . . . . . . . . . $3 , 000 , 000 Aggregate Productive . . . . . . . . . . . . $3, 000 , 000 Aggregate Contractual . . . . . . . . . . . . . $3 ,000 , 000 The insurance required hereunder shall be maintained in effect during the performance of the maintenance, repair or construction work. A certified copy of each of the policies or a certificate or certificates evidencing the existence thereof , or binders, shall be delivered to the City at least fifteen ( 15) days prior to the commencement - 99 - of any work. In the event any binder is delivered, it shall be replaced within thirty (30) days by a certified copy of the policy or a certificate. Each such copy or certificate shall contain a valid provision or endorsement that the policy may not be canceled, terminated, changed or modified without giving fifteen ( 15) days ' written advance notice thereof to the City. 4 . 8 The Lessee shall procure and maintain or cause to be procured and maintained Builder ' s Risk Completed Value Insurance covering the construction work during the performance thereof, , including material delivered to the construction site but not attached to the realty, in an amount and form satisfactory to the City. Such insurance shall name the City, the Lessee and its contractors and subcontractors as additional a5sureds and such policy shall provide that the loss shall be adjusted in accordance with Article 8 of this Agreement . The policies or certificates representing this insurance shall be delivered by the Lessee to the City prior to the commencement of construction and each policy or certificate delivered shall bear the endorsement of or be accompanied by evidence of payment of the premium thereon and, also, a valid provision obligating the insurance company to furnish the City fifteen ( 15) days ' advance notice of the cancellation, termination, change or - 100 - modification of the insurance evidenced by said policy or certificate. 4 . 9 Nothing contained herein shall grant or be deemed to grant to any contractor, architect, supplier , subcontractor or any other person engaged by the Lessee or any of its contractors in the performance of any part of the construction work any right of action or claim against the City, its officers, agents and employees with respect to any work any of them may do in connection with the construction work . 4 . 10 Nothing contained herein shall create or be deemed to create any relationship between the City and any such contractor , architect, supplier, subcontractor or any other person engaged by the Lessee or any of its contractors in the performance of any part of the construction work, and the City shall not be responsible to any of the foregoing for any payments due or alleged to be due thereto for any work performed or materials purchased in connection with the construction work. 4 . 11 When the construction work is substantially completed and is ready for use by the Lessee, the Lessee shall advise the City to such effect and shall deliver to the City a certificate by an authorized officer -of the Lessee - 101 - certifying that such construction work has been constructed substantially in accordance with the approved plans and specifications and the provisions- of this Agreement and in compliance with all applicable laws , ordinances and governmental rules, regulations and orders . Thereafter, such construction work will be inspected by the City and if the same has been completed as specified by the Lessee, a certificate to such effect shall be delivered to the Lessee, subject to the condition that all risks thereafter with respect to the construction and installation of the same and any liability therefor for negligence or other reason shall be borne by the Lessee. The Lessee shall not use or permit the use of the construction work for the purposes set forth in this Agreement until such certificate is received from the City. The date of delivery of the certificate by the City shall constitute the Completion Date for the purposes of this Agreement . 6. Other Construction by Lessee Title to any construction, improvement, alteration, modification or addition performed by Lessee at or on the Leased Premises in accordance with a City approved 102 - I building permit shall vest in the Lessee and remain in Lessee until the expiration or earlier termination of this Agreement. I i i I i i i i I, i I �I i 103 — EXHIBIT A-1 4, Legal Description of Parcel No. 3 BEGINNING AT THE POINT WHERE THE WESTERLY RIGHT-OF-WAY LINE OF JET STREAM WAY INTERSECTS A NORTHERLY LINE OF SAID LOT 1, BLOCK 1,ALLIANCE AIRPORT; THENCE WITH SAID WESTERLY RIGHT-OF-WAY LINE AS FOLLOWS: S 09. 53' 13' E. 65.00 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; 73.85 FEET WITH THE ARC OF SAID CURVE TO THE'LEFT,THROUGH A CENTRAL ANGLE OP 65' 05' 56°, NTH A RADIUS OF 65.00 FEET,AND A LONG CHORD WHICH BEARS S 42' 26' 11' E, 69.94 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 34.09 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 65' 05' 560, WITH A RADIUS OF 30.00 FEET AND A LONG CHORD WHICH BEARS S 42' 26' 11' E, 32.28 FEET; S 09' 63' 13' E, 290.83 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 31.42 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 90' 00'019, WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 350 06' 47' W, 28.28 FEET TO A POINT IN THE NORTHERLY RIGHT-4F--WAY LINE OF ALLIANCE BOULEVARD; THENCE S 80' OS'47°W,14.00 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TOTHE BEGINNING OF A CURVE TO THE LEFT; THENCE 173.37 FEET WITH THE ARC OFSAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 35° 43'51°0 WITH A RADIUS OF 278..00 FEET AND A LONG CHORD WHICH BEARS S 62' 14'520 W. 170.57 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 28.18 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 80' 43'62',WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 84' 44'52°W. 25.91 FEET TO A POINT IN THE NORTHERLY RIGHT-OF--WAY LINE OF A RESTRICTED ACCESS RIGHT-OF-WAY; THENCE N 54'53' 13'W,25.09 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE LEFT; i THENCE 100.53 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-0F- WAY LINE THROUGH A CENTRAL ANGLE OF 45' 00'00r.WITH A RADIUS OF 128.00 FEET AND A LONG CHORD WHICH BEARS N 77' 23' 13"W.97.97 FEET; THENCE S 80' 06' 4T W. 119.50 FEET WITH SAID NORTHERLY RIGHT-OF-WAY UNE; THENCE N 09' 51' 30'W,406.42 FEET; THENCE N 09' 53' 130 W, 50.58 FEET TO A POINT IN THE NORTHERLY LINE OF SAID LOT 1, BLOCK 1,ALLIANCE AIRPORT; THENCE N 80° 06'4r E.394.72 FEET TO THE POINT OF BEGINNING AND CONTAINING 4.735 ACRES OR 206,267 SQUARE FEET OF LAND, MORE OR LESS. ]EXHIBIT A-2 FIELD NOTES FOR A 4,230 SQUARE FEET LEASE AREA AT ALLIANCE AIRPORT Being a tract of land situated in the J. Evans Survey, Abstract No. 470, City of Fort Worth, Tarrant County, Texas, and also being a portion of Lot 1, Block 1, Alliance Airport according to the plat recorded in Cabinet A, Slide 622, Plat Records, Tarrant County, Texas, and being more particularly described as follows: COMMENCING at the east most southeast comer of Alliance Airport, said comer being at the intersection of the east right-of-way line of Jet Stream Way and the south right-of-way line of Flight Line Road; THENCE south 80 degrees 06 minutes 47 seconds West, 401.62 feet to a point; THENCE North 09 degrees 53 minutes 13 seconds West, 330.76 feet to the southeast comer of a one story metal building, and the POINT OF BEGINNING; THENCE South 80 degrees 08 minutes 16 seconds West, 70.20 feet along the south line of said building to its southwest comer; THENCE North 09.degrees 51 minutes 44 seconds West 60.25 feet along the west line of said building to its northwest comer; THENCE North 80 degrees 08 minutes 16 seconds East, 70.20 feet along the north line of said building to its northeast comer; THENCE South 09 degrees 51 minutes 44 seconds West, 60.25 feet along the east line of said building to its southeast comer, and the POINT OF BEGINNING, and encompassing 4,230 square feet more or less. 14 0 EiIBIT A-3 c Diagram of Transient Apron Areas . I � 1 I C /h V4 4 a fa 64 1 c a f�.t 4 Iii {li I = H fa - i 1 i I ALLIANCE BLVD. In I0� b a a ri H W 1 I BV o c "4 V4 05 05 o P4 61 V4 O� L c ell `Q 0 gV i--— r4 n k 1 w a 1 r, I w in h a In 1 0 I - � I FLIGHT LINE RD. Exhibit A-3 Exhibit B CITY OF FORT WORTH AVIATION DEPARTMENT MINIMUM STANDARDS FOR FIXED BASE OPERATORS AND OTHER AIRPORT TENANTS ALLIANCE - i MEAL AM KTH AVIAIIUIN D EPA Kw%TM EN T SINKS. ADOPTED BY THE FORT WORTH CITY COUNCIL JUNE 16, :1992 CITY OF FORT WORTH * AVIATION DEPARTMENT TERHINAL BUILDING SUITE 228 '* FORT WORTH, TEXAS 76106 (8171 .624-1127 i I 1 i GENERAL Articles I. through XX of the City of Fort 'Worth Minimum Standards for Fixed Base Operators and Other. Airport Tenants are relevant to activities that take . place at .any airport owned and operated by the City of Fort Worth, , Texas. Additional Appendices contain information specific to only that airport. identified in the individual Appendix. 2 CITY OF FORT WORTH AVIATION DEPARTMENT MINIMUM STANDARDS FOR FIXED BASE OPERATORS AND OTHER AIRPORT TENANTS Article I Definitions Article II Fixed Base Operator Permits Article III Flight Training Article IV Air Taxi Service Article V Specialized Commercial Plight Services Article VI Aerial Applications Article VII Aircraft Sales Article VIII Aircraft Rental .Article IX Airframe and/or PowerPlant Repair Article X Radio, instrument, or Propeller Repair Article XI Multiple Services Article XII Flying Clubs Article XIII Airport Tenant Article XIV - Standard Lease Provisions/Minimum Requirements Article XV RESERVED Article XVI Schedule of Rates and Charges Article -XVII Airport Development Procedures Article XVIII Nonpublic Aircraft Fuels Dispensing Agreement Article XIX RESERVED Article XX RESERVED 3 Appendix A Fort Worth Meacham Airport Appendix B Fort Worth Spinks Airport Appendix C Fort Worth Alliance Airport i I� I'I I i 4 ARTICLE I DEFINITIONS A. DEFINITIONS. As used herein, the following terms shall be defined as follows: 1) Aeronautical Activity. Any activity which* involves.- makes possible, or is required for the •operation of aircraft, or which contributes to or is required for the safety' of such operations. The following activities, commonly conducted on airports, are aeronautical within this definition: pilot trainingo aircraft rental; FAR Part 135 and 1.21' charter operations, sightseeing; aerial photography, crop dusting, aerial advertising or surveying; scheduled and non-scheduled Part 121 operations; aircraft sales; sales of aviation petroleum products ( whether or not conducted in conjunction with other included activities); 'service, repair and maintenance of aircraft; sale of aircraft parts and accessories; radio and instrument sales, repair and maintenance; and any other activity which because of its direct relationship to the operation of aircraft, can be regarded as an aeronautical activity. 2) Airport. City of Fort Worth Meacham, Spinks, or Alliance Airports, Fort Worth, Texas, or any other airport owned and operated by the City of Fort Worth, except for the Dallas- Fort Worth International Airport.. 3) Airport Tenant. Defined as any person, firm or corporation leasing property from the City of Fort Worth on any city owned and operated airport for aeronautical purposes who is not a Fixed Based operator. An Airport Tenant may hangar his aircraft on his leased property subject to the provisions contained in Article XIII herein set forth. 4) Airport Tenant Sublessee. Any person, firm or corporation leasing property on the airports from any Airport. Tenant (described above) for aeronautical purposes who is not an FBO. 5) Fixed Base Operator or FEO. A Fixed Base Operator is defined as any person, firm, or corporation performing any of the functions or furnishing any of the services as hereafter set out for fixed based operators at the Fort Worth Meacham, Spinks or Alliance Airports, or any other airport owned and operated by the City of Fort Worth, except for the Dallas-Fort Worth International Airport. 5 No person, firm, or corporation shall engage in any commercial activity as a Fixed Base Operator as herein defined unless the same is done in full compliance with the standards, rules and regulations herein set forth. A person shall qualify as a Fixed Based Operator only upon providing the minimum services as described in ARTICLE II. 6) Person(s) . Any individual , firm, partnership, corporation, association, or company (including any assignee, receiver, trustee, or similar representative thereof) or the ' United States of America or any foreign government, or any state or political subdivision thereof. 7) Through the Fence. operations that are 'conducted off the actual airport ' or city property that have aeronautical access to any portion of the -Movement Area or Air Operations Area of the airports. 8) CSL. Combined Single Limit 9)' Commercial Tenant. Any person performing any of the services as herein described and set forth, who is not categorized as an FBO or Airport Tenant . 10) Commercial Tenant Sublessee. Any person performing any of the services as herein described and set forth, who is not categorized as an FBO or Airport Tenant, and is - leasing property from a Commercial Tenant on the airport. 7 F equipment necessary to remove disabled aircraft up to 12 ,500 lbs. from the airfield; G. APU/GPU starting service; H. tug and aircraft towing service; I . UNICOM service. 11) Provide for the following services . as a minimum: A. auto rental service; B. air taxi service; C. aircraft catering. service; and D. aircraft -rental . B. Certification. Prior to the commencement of FBO activities, said Airport tenant shall submit to the City of Fort Worth, a properly executed Statement of Compliance with the minimum qualifications set forth in Article II paragraph A of this document and with the applicable requirements specified in Article IX, or other specific requirements as maybe prescribed. The City of Fort Worth shall have the right at any reasonable time to inspect the premises to assure compliance.- C. Authorized Activities. FBO shall have the right to engage in other aeronautical activities as set forth in Articles III, IV, V, VI, VII, VIII, or X, by complying with the minimum standards- of the activities desired to be performed.. FBO shall provide written notification to the City of Fort Worth of it "s intent to, engage in those activities described in Articles II through X, and shall provide a Statement of Compliance. If the FBO wishes to engage in any aeronautical activity not set forth in Articles III through VIII , or X, it shall provide the City of Fort Worth with written notification of said intent and shall comply with specific minimum standards as determined by the City of Fort Worth. Permission to engage in the activities described herein shall not be granted until compliance with this Article, and all Federal , State and local laws, including Certificates of occupancy, Building Permits, Codes, etc. , have been met for all associated facilities (i .e. hangars, offices, etc. ) . In the event that said facilities fall below, or no longer meet compliance standards of Federal , State or local laws, the City has the right to suspend or revoke, temporarily or permanently, the right, to engage in the FBO activities described herein. 6 ARTICLE II FIXED BASE OPERATOR PERHIT A. Qualifications. A person shall qualify as an FBO upon proof that said person is a financially stable and responsible business enterprise, proof that capital is available to perform the activities contemplated, and a pro-forma of the activities contemplated. In addition, said Airport tenant shall demonstrate and provide proof , that the premises from which it intends to operate on the Airport(s) and the personnel employed by it comply with the following minimum requirements : 1) A - minimum of two (2) acres of land for the conduct of activities contemplated; 2) General aviation service facilities containing a minimum of 20,000 square feet. If no facilities exists, tenant must agree to construct suitable buildings within 12 months to fulfill the requirements defined herein; 3) A staffed office facility; 4) A heated and air-conditioned waiting room for passengers and flight planning facilities for crews of itinerant aircraft; 5) Sanitary restroom facilities; 6) Public telephones; 7) Parking sufficient to accommodate employees and customers; 8) Personnel on duty seven (7 ) days a week during normal working hours and additional employees available on call during non-business hours . Personnel shall be neatly uniformed. 9) Availability of fuel for the public, and properly trained personnel and equipment adequate to perform fueling services, as outlined in Paragraph D below. 10) Provide the following additional services: A. aircraft maintenance available to the general public as outlined in Article IX herein; B. client/passenger services to. include flight planning and weather briefing; C. appropriate grades of aircraft. lubricants; D. oxygen; E. aircraft storage and tiedown for permanent and transient aircraft; 9 Fuel Farm (as designated in the Airport Master Plan Study, if applicable) , and shall comply with applicable, Uniform Building Code Standards, fire codes and ordinances of the City of Fort Worth, Federal and State regulations, and recommendations of the National Fire Protection. Association. Aviation fuel tanks shall h'ave walk in capabilities for cleaning and maintenance. 3. Fuel storage, tanks shall comply with requirements set out by Environmental Protection Agency, the Federal Aviation Administration, Texas Water Commission, and local fire codes. 4. All plans and specifications for improvements on Tank Farm (including landscaping) shall be prepar'ed and presented to City of Fort Worth. and shall require the written approval of the Director of Airport Systems before any construction or installation may be undertaken. 5. The FBO shall store, handle and dispose of any hazardous waste or contaminated fuel in accordance with all Federal , State, and local laws, regulations and ordinances now or hereafter enacted. FBO shall bear all costs for cleanup of hazardous waste. The FBO shall make available at the request of the Director of Airport Systems or ' his designated representative, copies of all manifested waste and certification of approved disposal site. All hazardous waste shall be disposed of - off the airport property. E. INSURANCE AND INDEMNIFICATION 1. Fire Insurance During the full term of the FBO Permit, the FBO shall , at its sole cost and expense, cause all improvements constructed or installed on FBO's leased premises to be kept insured to the full insurable value thereof against the perils of fire, extended coverage, vandalism, explosion and like perils. Said insurance shall be procured from a company authorized to do business in the State of Texas, and FBO shall provide City with 'evidence satisfactory to City that such coverage has been procured and is being maintained. 8 The FBO shall display in a public area and in public view within the FBO facility, the Fixed Base Operator Permit issued by the City, indicating the FBO's compliance with the provisions of this Article. D. Public Aircraft Fuels Dispensing. 1. FUEL A. Prior to the presentation of a request for an FBO Permit, the .prospective FBO shall furnish a letter of product commitment from an oil company acceptable to the City of - Fort Worth. B. The FBO shall provide at least two grades of aircraft fuel , including 100 Octan6 and Jet A. Said fuel shall be that 'of a nationally recognized company acceptable to the City of Fort Worth. Fuel prices shall be posted in public view either on fuel trucks and/or Fixed Base Operator Line Building. 2. FUELING FACILITIES A.. Trucks The FBO shall furnish mobile dispensing trucks, at least one for each- type of fuel , having a minimum capacity of 750 gallons of 100 Octane and 2,200 gallons of Jet A. Separate filter-equipped, dispensing pumps and meters for each type of fuel shall be required. Trucks shall be properly maintained, operated, and equipped in accordance with applicable Federal Aviation Administration recommendations , regulations, and requirements . Each truck will be equipped with a ground controlled radio capable of communicating with the Control Tower. B. Tank Farm 1. The FBO shall furnish a minimum of two aircraft fuel storage tanks with a capacity of 10,000 gallons each. Unless FBO's fuel trucks are licensed for public road operation, FBO shall also provide a minimum 450 gallon automotive fuel storag6 tank. 2. Fuel storage tanks shall be above ground or under ground and such installations shall be in a location approved by the City of Fort Worth in the 10 The proceeds of any such insurance, paid on account of any of the perils aforesaid, shall be used to defray the cost of repairing, restoring or reconstructing said improvements, as necessary; provided, however, that if the permit is canceled, such proceeds shall be paid to the City for it's exclusive use and benefit . Property insurance policies required by this paragraph shall contain waiver of subrogation endorsements and shall contain a provision that City shall be notified by the insurance company of any renewals, changes or cancellations of such insurance coverage by at least thirty (30) days written notice to City, and shall name the City as an additional insured. 2. Indemnification City shall stand indemnified by FBO as. herein provided. FBO is and shall be deemed to be an independent contractor and operator responsible to all parties for its respective -acts or omissions, and City shall in no way be responsible therefor. FBO covenants and agrees to indemnify, hold harmless and defend City, its jofficers, agents, servants and employees from and against any and all claims for damages or injury to persons or property arising out of or . incident to the leasing of or the use .and occupancy of the premises by FBO, its employees, patrons , contractors or subcontractors, and FBO does hereby assume all liability and responsibility for injuries , claims or suits for damages to persons or property of whatsoever kind or character whether real or asserted, occurring during the term of this permit in connection with the use or occupancy of the premises by FBO, its employees, patrons, contractors, or subcontractors. FBO shall pay promptly when due all bills or charges for construction or maintenance as well as any other amounts due for material or services furnished in connection therewith, and FBO shall indemnify City against any and all mechanics and materialmen's liens or any other types of liens imposed upon the premises demised hereunder arising as a result of FBO's conduct or inactivity. FBO shall promptly, after the execution, of its FBO Permit, provide public liability insurance for personal injuries, including death, growing out of any one accident or other cause in a minimum sum of Three Million and No/100 dollars ($3,006;000.00) for one person and Three million and NO/100 dollars ($3,000,000.00) for two or more persons, shall provide property damage liability insurance in. a minimum sum of Three Million and No/1-00 Dollars ($3,000,000 .00) for property damage growing out of any one accident or other cau.se'; . shall provide products liability insurance in a minimum sum of Three Million -and No/100 dollars ($3,000,000.00) , and shall provide hangar keeper's liability insurance in a minimum of Three Million and No/100 Dollars ($3,000,000 .00) . FBO shall maintain said insurance with insurance underwriters authorized to do business in the State of Texas satisfactory to City. FBO shall furnish City with a certificate from the insurance carrier showing such insurance to be in full force and effect during the entire term of this permit,- or shall deposit with City copies of said policies. Said policies or certificates shall contain a provision that written notice of cancellation or of any material change in said policy to the i*nsuker shall be delivered to City thirty days in advance of the effective date thereof, and said policy shall name the 'City as . an additional insured. F. FEES 1. Registration The FBO shall be responsible for registering all above and below ground fuel *storage tanks with the Texas Water Commission, City of Fort Worth, and any other agency now or here'after requiring so, and be solely responsible for payment of all registration fees and other associated costs. 2. Fuel Flowage Fee For the privilege of securing the right to dispense aircraft fuels , FBO shall pay to City a fuel flowage fee on the rate scale established by the City Council of the City of Fort Worth. Such fuel flowage fee rate scale may be adjusted by City at any time during the term of the agreement but in no case shall the rate be greater than that paid by any other FBO on the Airport. 3. Parking Fees Any and all aircraft parking fees as established by the City and collected by FBO for parking on the public use transient apron or on any other property of City, not leased out on an exclusive basis, shall be paid to the City subject to the terms of any agreements for the collection of those fees. 12 4 . Time of Payment Fuel flowage fees and the payments on aircraft parking fees shall be due on the tenth day of the month succeeding that in which the aircraft fuels were supplied by FBO and/or parking -fees collected, and shall be delinquent if unpaid before the fifteenth day of each month. G. RECORDS OF FBO The FBO shall keep true and accurate records and books which shall show all fuel deliveries made to FBO at said Airport and all parking fees collected. FBO's fuel supplier shall furnish monthly delivery reports to the Director of Airport Systems upon request . With the payment of the fuel flowage fees and the aircraft parking fees as set forth in Paragraph F. 2 and F.3 above, FBO 'shall submit to City detailed statements of such parking fees collected and of all fuel sales for the preceding calendar month. These statements shall be in a form and show such reasonable detail and breakdown as may- be required by City. H. AUDIT Within thirty days after the end of each of City's fiscal years, FBO shall submit to City detailed statement of total gallons of fuel delivered into the Tank Farm and total parking fees collected. Such statement shall be prepared by independent Certified Public Accountant . and any adjustment due on payments made during the previous year shall be accomplished at that time. In addition, City shall have the right at any time during the term of its agreement with FBO to authorize an audit of FBO's records pertaining to its FBO operation on the Airport . Such audits shall be undertaken by an independent Certified Public Accountants, satisfactory to City. The cost of such audit shall be borne by' City. I. CANCELLATION 1. Cancellation by FBO, FBO Permits shall be.subject to cancellation by FBO after the happening of one or more of the following events: i i 13 a. The permanent abandonment of the Airport . b. The lawful assumption by the United States Government, or any authorized agency thereof, of the operation, control or use -of the Airport , or any substantial part or parts thereof, in such a manner as substantially to restrict FBO for a period of at least ninety days from operating thereon. C. Issuance by any court of competent jurisdiction of any injunction in any way preventing or restraining the use of the Airport, and the remaining in force of such injunction for a period. of at least ninety days. d. The default by City in the performance of � any covenants or agreement required to be performed by City and the failure of City to remedy such default for a period of sixty days after receipt from FBO of written notice to remedy the same. FBO may exercise such right of termination by written notice to City at any time after the elapse of the applicable periods of time and the permit. shall terminate as of that date. Rentals due shall be payable only to the date of said termination. Upon cancellation, FBO must submit an independent, certified engineering report indicating all facilities are in compliance with all Federal , State and local regulations. 2.. Cancellation by City FBO Permits shall be subject to cancellation by City in the event of any of the following acts or omissions by FBO: a. Be in arrears in payment of the whole or any part of the amounts agreed upon for a period of ten days after the time such payments become due, b. Make a general assignment for . the benefit of creditors; c. File a voluntary petition of bankruptcy; d. Abandon the demised premises; e. Discontinue required service to the public; 14 f Fail to replace any improvements which have been destroyed by fire, explosion, etc. within six months from the date of such destruction; 9. Default .in the performance of any of the covenants and conditions required herein (except . rental payments) to be kept and performed by FBO, and such default continues for a period of thirty days after receipt of a written notice from City of said default; or h. Fall below or be in. non-compliance with any Federal , State or local laws governing the occupancy of associated facilities such as hangars , offices, etc. In any of the aforesaid events, City may take immediate possession of the demised premises and remove FBO's effects, forcibly, it necessary, without being deemed guilty of trespassing. Upon said entry, the permit shall terminate. Any fees due shall be payable to said date of termination. Failure of City to declare the permit terminated upon the default of FBO for any of the reasons set forth herein, shall not operate to bar or destroy the right of City to cancel the permit by reason of any subsequent violation of the terms hereof. J. ASSIGNMENT, TRANSFER OR SUBLETTING The FBO shall not assign, sublet or transfer its FBO Permit or any privileges herein contained without prior written consent of City. Lt is specifically stipulated and agreed that FBO will not enter ' into any tie-in agreements with other operators or sublet any of the rights herein whereby other operators share in the privileges or the services stipulated in this permit . K. SUSPENSION OF PERMIT During the time of war or national emergency, City shall have the right to lease the landing area or any part thereof to the United States Government for military use. if any such lease is executed, any 15 provisions of FBO's permit which are inconsistent with the provisions of the " lease to the Government will be suspended. L. ATTORNEY'S FEES In any action brought by City for the enforcement of the 'obligations of FBO, City shall be entitled to recover interest and reasonable attorney's fees. M. TAXES The FBO agrees to pay any taxes or assessments which may be lawfully levied against FBO's occupancy *or use of the demised premises or any improvements placed thereon as a result of FBO's occupancy. N. RELOCATION OF IMPROVEMENTS In the event City requires any of the Tank Farm premises for expansion or development of the Airport , City reserves the right, on six months notice, to relocate or replace the improvements made by those FBO's whose fuel tanks are located within the City's designated fuel farm area in substantially similar form at another generally comparable location on said Airport. The City shall have the right to one (1) year to complete the relocation construction from the time FBO is notified. O. SUBORDINATION OF AGREEMENT The FBO permit shall be subordinate to the provisions of any existing or future agreement between City and the United States relative to the operation or maintenance of the Airport , the execution of which has or may be required as a condition precedent to the expenditure of Federal funds for the development of the Airport. 16 ARTICLE III. - FLIGHT TRAINING Any .person, Airport Tenant , Airport Tenant Sublessee, Commercial Tenant, or Commercial Tenant Sublessee desiring to engage in flight training shall provide as a 'minimum the following: A. Land. Sufficient area for the proposed operations including automobile parking, training, aircraft tiedowns and/or hangar space to accommodate leased or owned aircraft. B. Buildings. Lease or construct, within 12 months, adequate, and properly air-conditioned,' lighted and heated floor space to provide classroom, briefing room, pilot lounge, rest rooms, office space and public use telephone. The above mentioned floor space shall be sufficient to accommodate the requirements of its program. C. Personnel . At least one (1) properly FAA certificated flight/ground instructor to cover the type training offered. D. Aircraft. At least one (1) owned/leased properly certificated aircraft equipped for the type flight instruction to be offered.. If leased, documentation authorizing the operator to utilize said aircraft for flight instruction must be provided. E. Hours of Operation. The hours of operation shall be a minimum of eight .(8) hours daily, a minimum of five (5) days a week. F. Insurance Coverage for owned/Leased Aircraft. Aircraft Liability Bodily Injury & Property Damage 600,000 CSL Passenger Liability 100,000 each person 300,000 each occurrence Student/Renter Pilot Coverage Comprehensive Public Liability/P'roRerty 'Damage Bodily Injury & Property Damage 600,000 CSL Ii 17 ARTICLE IV AIR TAXI SERVICE Any persons, Airport Tenants, Airport Tenant Sublessees, Commercial Tenants, Commercial Tenant Sublessees and FBOs desiring to engage in air taxi service must hold an FAA Air Taxi- Commercial Operator Certificate with ratings appropriate to the functions to be accomplished, and provide as a minimum the following: A. Land. Sufficient area for the proposed operations including automobile parking, aircraft tiedown and or hangar space to accommodate leased or owned aircraft. B. Buildings. Lease or construct, within 12 months, adequate, and properly air- conditioned and lighted floor space for office, public lounge, rest rooms and public use telephone. Building should also accommodate satisfactory arrangements for the checking in of passengers, handling of luggage, ticketing, ground transportation, and other related activities. C. Personnel . Properly FAA certificated pilot(s) rated to conduct the air taxi services offered. D. Aircraft. A minim'um of one (1) four place aircraft meeting all the requirements of the Air Taxi/Commercial Operator Certificate held. Aircraft shall be owned or leased by agreement in writing and meet all the relevant requirements of Pait­135 of the FAA Regulations. E. Hours of Operation. The hours " of operation shall be a minimum of 8 hours daily, a minimum of 6 days a week. on call service during non-operating hours shall be provided. F. Insurance. Aircraft Liability Bodily injury & 600,000 CSL Property Damage Passenger Liability 600,000 each passenger GENERAL LIABILITY Bodily Injury Property Damage 600,000 CSL 18 ARTICLE V SPECIALIZED COMMERCIAL FLIGHT SERVICES Persons, Airport Tenants, Airport Tenant Lessees , Commercial Tenants, Commercial Tenant Sublessee, and FBO's desiring to engage in specialized commercial air activities, including but not limited to, those listed below shall comply with the minimum standards specified herein: Banner towing and aerial advertising Aerial photography or survey Fire fighting/fire patrol Powerline/pipeline patrol Any other operation specifically excluded from Part 135 of the Federal Aviation Regulations. A. Land. Sufficient aircraft ramp and/or hangar space to accommodate leased/owned ,aircraft . Land area should be capable of. ,providing facilities for auto parking, paved hangar apron and other area as needed to perform the operations contemplated. B. Buildings. Lease or construct, within 12 months, adequate, and properly heated, ' air-conditioned, and lighted floor space for office and rest . rooms. If aircraft maintenance is to be performed on site, a building space is required for shop and storage space. C. Personnel . - A minimum of one (1) properly certificated Commercial Pilot with appropriate ratings for the aircraft to be flown and operations to be conducted. D. Aircraft. A minimum of one (1) properly certificated aircraft (single/multi-engine) meeting the requirements for the operations to be conducted. Aircraft owned or leased must meet all airworthy requirements of the FARs. E. Hours of Operations. The normal hours of operation shall be at the operators discretion, but services should be reasonably available to the public. F. Insurance. Aircraft Liability Bodily Injury & Property Damage 600,000 CSL GENERAL LIABILITY Bodily Injury Property Damage 600,000 CSL 19 ARTICLE VI AERIAL APPLICATIONS Persons, Airport Tenants, Airport Tenant Lessees, Commercial - Tenants , Commercial Tenant Sublessees, and FBO's desiring ' to engage in aerial application operations must, hold an Agricultural Aircraft operator certificate issued by the FAA; comply with the requirements of all Federal , State of Texas, and any local laws and/or regulations applicable to aerial application operations . A. Land. Sufficient paved aircraft parking apron and space for the loading. and unloading of vehicles and equipment. An area must be set aside specifically for the cleaning and servicing of aircraft . B. Facilities. A segregated chemical storage area protected from public access. Wash down of agricultural spraying aircraft and flushing of agricultural aircraft spray tanks will be accomplished only in areas so designated and in accordance with applicable EPA, State 'Water Commission, State Department of Agriculture,. State Department of Health and other Federal , State, and local rules and regulations. Empty chemical containers will be disposed of off the airport in accordance with applicable Federal and State laws. A centrally drained, paved area for aircraft loading/unloading, servicing and dumping, tank truck handling and for the mixing of compounds shall contain an adequate area and meet all government • requirements.. Adequate ground equipment for. the handling and loading of dusting materials shall be provided. C. Personnel . A minimum of one (1) properly FAA certificated commercial pilot, properly rated for the aircraft to be used and meeting the requirements of all appropriate FAA Regulations and applicable State and local regulations. D. Aircraft. A minimum of one (1) airworthy aircraft meeting all the requirements of the appropriate FAA Regulations and applicable State and local regulations. Leased aircraft shall be by written agreement and based on the Lessee's premises. E. Hours of Operation. Available or on call . 24 hours during normal aerial application season. 20 F. Insurance. Aircraft Liability Bodily Injury & j Property Damage 600,000 CSL General Liability Bodily Injury & Property Damage 600,000 CSL Environmental Impairment Liability (EIL) 1,000,000 each occurrence Agricultural spraying operations will be conducted in accordance with procedures approved by the City of Fort Worth and only from the areas designated on the Airport(s) . Careless* handling of chemicals Will result in appropriate legal action. 21 I ARTICLE VII - AIRCRAFT SALES Persons, Airport Tenants , Airport Tenant Lessees, Commercial Tenants, Commercial Tenant Sublessees, and FBO°s desiring to engage in the business of the sale' of new or used aircraft must lease and/or provide as a minimum the following:. A. Land. Sufficient land area to adequately store, display and service aircraft. B. Buildings. Lease or construct, within 12 months, a minimum of 2,000 square feet of properly lighted, air-conditioned and heated space for office, public lounge, rest rooms and public use telephones . C. Personnel . . A minimum of One (1) current properly certificated FAA Commercial Pilot with rating appropriate for the types of aircraft to be demonstrated and to conduct the operations contemplated. D. Dealerships. New aircraft dealers shall hold an authorized factory or subdealership. All aircraft dealers shall hold a dealership license or permit, if required by state or local regulations. E. Used Aircraft. A Lessee engaged in the sale of used aircraft must conform to the provisions of FAR Part 47, Subpart C, and must possess a valid "Dealers Aircraft Registration Certificate", FAA Form 8050. F. Aircraft. A dealer of new aircraft shall have available or on call one (1) current model demonstrator. G. Services . Provide for adequate parts and servicing of aircraft and accessories during warranty periods for new aircraft. H. Hours of Operation: The normal operating hours shall be at the operators discretion, but should services should be reasonably available to the public. I . Insurance. Aircraft Liability Bodily Injury & Property Damage 600,000 CSL Passenger Liability 600,000 each passenger I 22 I i General Liability Bodily Injury & Property Damage 600,000 CSL I The above coverage shall include aircraft held for sale and demonstration by the Lessee but owned by others. Products & Completed Operations Liability- 3,000,000 each occurrence Hangar Keepers Liability 500 ,000 each aircraft 1 ,000,000 each occurrence J. Sales Tax Permit. Each lessee shall hold and conspicuously display a current Sales Tax Permit issued by the State of Texas. 23 ARTICLE VIII AIRCRAFT RENTAL Any person, Airport Tenant, Airport Tenant Lessee, Commercial Airport Tenant, Commercial Tenant Sub-Lessee, or FBO desiring to engage in the rental of aircraft to the public must provide as a minimum the following: A. LAND. Sufficient land for the parking and storage of as many aircraft as are available for rent. B. BUILDINGS. Lease or construct, within 12 months, a building which will provide adequate and properly air-conditioned, "heated and lighted space for office, public lounge, rest rooms and public use telephones. If . aircraft maintenance is to be performed on site, additional adequate area will be required for shop and storage space. C. PERSONNEL. One- person having a current commercial pilot certificate with appropriate ratings for the type of aircraft and training to be offered. if aircraft maintenance is to be performed -on site, proper certification is required for shops and personnel . D. AIRCRAFT. At least one airworthy aircraft owned or leased in writing to the lessee, which shall be certified for flight under instrument conditions. E. HOURS OF OPERATION. Hours of operation will be a minimum of 6 days per week, 8 hours per day. F. INSURANCE COVERAGE FOR OWNED OR LEASED AIRCRAFT Aircraft Liability Bodily Injury & Property Damage 600,000 CSL Student and Renter Pilot Coverage General Liability Bodily Injury & Property Damage 600,000 CSL 68 ADJUSTMENT OF RATES AND CHARGES Rates and Charges imposed at the City's airports by the Fort Worth City Council maybe adjusted by the Council at its discretion and are also subject to an annual adjustment based upon the percentage change in the Consumer Price Index(CPI) for the Dallas/Fort Worth Metropolitan Area as announced by the United States Department of Labor during any preceding twelve (12) month period. * LATE FEES Monthly rents, including monthly installments on annual rents, are subject to a late charge at the rate of ten (10) percent of the monthly rental rate for each month or portion of the month that any monthly installment is past due, and a separate computation and payment of such late charge shall be made on the outstanding balance that is past due, so that if two monthly installments are past due, the late charges shall accrue on the outstanding balance and so on. * LEASE EXPIRATI®N PENALTY Any tenant lease agreement that expires prior to the execution of a renewal lease, option, first right of refusal, or other agreement for the continued occupancy of the leased premises shall be subject to a Lease Expiration Penalty. Any tenant agreement that expires will automatically revert to a month-by-month occupancy status and said tenant will be required to pay in addition to the standard base rental rate, a premium equal to ten percent(10°x)of the standard base rental rate until such time as either a permanent lease is executed or the tenant vacates the premises because of failure to negotiate and execute a;new lease agreement. The Lease Expiration Penalty shall apply when the expiration of the lease results from the tenant's failure to execute the new lease, where the tenant had at least 30 days to execute the new lease prior to the expiration of the existing lease. T WORTH CITY CODE 13-271 FOR I ARTICLE VII.FORT WORTH ALLIANCE AIRPORT ACCESS Sec. 3-280. Short title. This article shall be known and may be cited as the"Fort Worth Alliance Airport Access Chdinance." (Ord.No. 10113, $ 1,5-17-88) Sec. 3.281. Definitions. The following terms as used in this article shall have the following meanings: Access area means that portion of an off-airport parcel that is designated by the off-airport user of that parcel as the only area of such parcel in which aircraft may be maneuvered,stored,repaired, operated or otherwise permitted, except for air. craft in the process of original manufacture,which will be permitted on any part of such parcel until the original manufacturing process for such air• craft has been completed. The access area shall not include any part of an access taxiway. Access taxiway means an aircraft taxiway lo- cated on property other than the airport that con- nects into a taxiway on the airport and that is constructed for the purpose-of allowing aircraft to taxi between the airport and off-airport parcels. Affiliate means a, person or entity owning a majority interest in or majority owned by an owner or user of an off-airport parcel or a family mem. ber of an owner or user of an off-airport parcel. Airport means the area of land known as the Fort Worth Alliance Airport which is now or here- after designated and set aside for the landing and taking off of aircraft and for accessory uses thereto and used or to be used in the interest of the public for such purpose. City means the City of Fort Worth,Texas. FAA means the Federal Aviation Administration. Off-airport parcel means any tract of land not located on the airport that abuts or will abut an 240 3-283 AIRPORTS AND AIRCRAFT ess taxiway as such may exist from time to the access area to inspect or perform other regu- acc latory requirements. All safety and operational time. rules and regulations (hereinafter "regulations") Off-airport user means an owner or user(or its applicable to the airport shall be applicable to affiliate of an off-airport parcel who desires to access areas. No rules or regulations of the city operate aircraft directly between its off-airport shall affect the access right, other than this arti- parcel and the airport. cle and the regulations. - Other terms used in the article are defined else- (b) An off airport user may construct access taxi- where herein. ways to connect its parcel with airport taxiways. (Ord. No. 10113, $ 1,5-17-88) The number, exact location and configuration of the access taxiways will be determined from time Sec. 3-282. Access right. to time by the off-airport users, subject to hove rt is granted to off-airport approval of the city and the FAA;provided, (a) Access to the airpo users, subject to the terms and conditions of imam flexibility as to thesnulmber, location d e off-airport users article and of the access permit granted alibi of the access taxiways subject only off-airport user, as provided in section 3-284 of to configuration limitations sir this article,(the"access right').The access granted �. limitations imposed by reason of operational shall be for the purpose of allowing the off-airport safety and efficiency considerations as determined user to conduct aviation related activities its off- available for use by off-airport users on off-airport aircraft operations on the access area o such taxiways, it airport parcel, so that it will have unobstructed unwa s f being the intent abutting of the ity to maximize the num- access to airport taxiways leading to runways, e of the purpose of maneuvering,taking off,and land- ber of off-airport users that can akee advantag anted for bud. gtaxi- ing of aircraft.The access right granted is irrevo- the access right. �� �`d specifications cable and shall 6 c force and effect so long as ways shall be approved by city prior to construe- the airport is used for airport purposes. lion,and taxiways shall be designed and constructed to meet the same standards of taxiway construe. (b) The city shall execute•a written grant, in tion as those for airport taxiways.Off airport ors ' the form of the attached Exhibit"A," granting shall plat access taxiways according to state stst- and establishing this access right as a property sites and city procedures for platting; provided, right appurtenant to off-airport parcels(the "ac- however, that simultaneous platting of the prop- cess grant").The city manager is authorized and erty adjacent to such taxiways shall not be required. directed to execute and record in the deed records letion of construction,inspection Of Tarrant and Denton Counties,Texas,an access (c) �vacel by city,the access taxiways shall be grant covering off-airport parcels, when requested and app maintained to do so by the owner or user of the parcel. dedicated li city shall maintaian the access taxiways (Ord.No. 10113,11.5-17-88) and related lighting in accordance with commer 3.283. Off�airi� parcel uses;access area; cial aviation standards for maintenance of public See. taxiways, following the same procedure that is access taxiways;prohibited uses. applicable to the maintenance of public streets. (a) Each off-airport parcel may contain an ac- The cost of such maintenance will be part of the cess area,as defined in section 3-281 of this anti- regular operating costs of the city and be paid cle.The access area shall be separated from the from the general city funds and not from funds remainder of the off-airport parcel by a wall,fence dedicated to the airport. or other physical barrier. The city or any other regulatory authority responsible for operation and (d) Fixed-based operators("FBO's")will be op- safety of the airport shall.bave the right to enter the eeneral public FBO seNrvices�will operate on •Editor's note—Exhibit"A"to Ordinance No.10113,crane g rt reel.Services offered by FBO's to of Access Right,is not included herein but is kept on file and an off airpo u lie are maintenance and repair of available for inspection at the office of the city clerk. the general p Supp.No.6 241 e . ' FORT WORTH CITY CODE aircraft;aircraft storage;inspection and licensing complies with the provision of this article and the Of aircraft; sale of miscellaneous aircraft parts, regulations. The fee shall be adjusted appropri. equipment and accessories; flight training for small ately due to any change in any access area. general aviation aircraft; and sale of fuel. Not- (d) Revocation; reinstatement The aviation di- withstanding the above;an off-airport user is not rector may revoke the access permit of any off- precluded from conducting aviation uses on an airport user who either(1)fails to pay its applica- off-airport parcel which(1)support the off airport ble fee or otherwise to comply with any provision user's own aircraft (i.e., storage corporate flight of this article or the regulations, with such fail. department,maintenance and self-fueling), or(2) ure not being corrected within twenty (20) days are associated with an off-airport user's aviation after written notice thereof is given by the avia- related business of manufacturing of or perform• tion director to such user,or(2)fails to pay prior ing major repairs and modifications on aircraft or to delinquency, the lawfully assessed and levied aircraft parts and and components. Except as city ad valorem texas on its off-airport parcel. specifically referenced above, an off airport parcel revoked shall be sub'ect to a h Any access permit that has been may be used for any lawful purpose, ) pp - reinstated upon payment of such fee, the correc- table zoning regulations. tion of any such noncompliance or the payment of (Ord.No. 10113, $ 1,5-17.88) such taxes plus all penalties and interest, as Sec. 3-284. Access permit. applicable. (a) Application; of permit Any off airport (e) Prohibition against unpermifled access; pen- user who desires access to the airport from an alty. It shall be unlawful for any person to utilize off-airport parcel shall apply to the city's aviation an access right unless such person holds a valid director for an access permit.The off-airport user access permit. Violation of this provision shall shall deliver to the aviation director a survey plat constitute a misdemeanor and be punishable as of the access area,including a computation of the Provided in secton 1-6 of this Cade. size of the access area in square footage, on that (Ord.No. 10113, $ 1,5-17-88) user's off-airport parcel. The aviation director tl shall ins such access area. s permit fee; time for pay- promp y inspect Sec. 3-285. Acces p e i (b) Conditions for granting access permit gram pay- ment; amount of fee; abatement ect If the survey plat and access area comply with of fee;use of fees by city. terms and conditions of this article and the regu- (a) At the time of issuance of an access permit j latians,the aviation director shall issue an access pursuant to section 3-284, off-airport users shall permit. The granting of the access permit shall be charged a permit fee(the 'Yee'). No other fee entitle the holder to commence using the access shall be charged for use of the access right. right granted in section 3-282. The permit shall continue for an indefinite period,unless surrend- (b) The fee shall be payable beginning on the ered by the holder or revoked by the aviation effective date of such user's access permit and director. thereafter for so long as such access permit re- mains effective. The fee shall be charged on a (c) Contents of permit; amendment of permit calendar year basis and shall be prorated for any The access permit shall specify the size of the partial year during which such user's access permit access area and the initial fee to be charged pur- is effective. The fee due by such user shall be suant to section 3-285 of this division.An off-airport billed by the city by no later than November 1 of user shall have the right to change the access the year for which such fee is due, and shall be area on its off-airport parcel from time to time due and payable by no later than December 1 of provided that such user notifies the aviation di- that-year. rector of such change,and provides a new survey ear durin which of the revised access area, and applies for an ac- (e) 6) The annual fee in any Y g cess permit for such revised access area, which such users access permit is effective shall permit shall be issued if such revised access area be the greater of either (1) an amount Supp.No.S 242 AIRPORTS AND AIRCRAFT 13-285 - 'n the total (g) All revenues generated from the airport, equal to the product of multiplying square footage of that off airport user's ac- including, but not limited to, the fees from off- cess area by the per square foot access rate the c ,users neral fund l to the c ty airport perat- in effect for that year(the access rate"),or Y (2)the minimum fee(as hereinafter defined) fees,shall first be used by the ci , city toope ate and in effect for that year. maintain the airport as a high quality,first class i The access rate effective until the end of airport. Any excess funds may be used fcr opera the first full calendar year following the tions at other city-owned airports. opening of the airport shall be $0.165 per (Ord.No. 10113, § 1,5-17-88) square foot. The minimum annual fee ef- fective until the end of the-first full calen- dar year following the opening of the air- port shall be twenty-four thousand seven hundred fifty dollars($24,750.00)(the"min- imum fee"). Thereafter,the access rate shall be adjusted each year by a percentage amount not to Con- sumer the Index f gchange allas(Fort Worth sumer Puce I Metropolitan Area—All Items as announced by the U.S.Department of Labor(the"CPr7 from one year to the next. The minimum fee shall be adjusted each year thereafter by a percentage amount not to exceed the percentage change in the'CPI from one year to the next. (d) Notwithstanding the above,the fee will not be charged in any year in which d andyorem taxes assessed against Parcel(on improve- ments on such user's entire P which its access area is located) is greater than twice the amount of the minimum fee in effect for that year. (e) In any year in which the fee is not charged - as provided above the city shall transfer from the city's general fund to the city's airport operating fund an amount equal to the lesser of(1)the fee that otherwise would have been charged to such user in that year, or (2) fifty (50) Percent of the city ad valorem taxes assessed for that year on the land and improvements on such user's entire official airport parcel. (f) In addition to the fee, an off-airpo will conducting self-fueling on its off-airport parcel pay the uniform fuel flowage fee established from time to time for any fueling operations on the airport. Supp.No.8 243 EXHIBIT "C" PLEDGE AGREEMENT THIS PLEDGE AGREEMENT (the "Pledge Agreement") , entered into as of by and among Alliance Air Services, . Inc. ( "Lessee" ) , the City of Fort Worth, Texas, a municipal corporation of Tarrant and Denton Counties, Texas ( "Fort Worth") and NationsBank of Texas, N.A. , a national banking association ( "NationsBank") . W I T N E S S E T H: WHEREAS, Lessee and Fort Worth have entered into that certain Lease Agreement dated December 1993, (the "Lease") ; and WHEREAS, the Lease provides that Lessee shall submit to Fort Worth security acceptable to the City (the "Intended Security") for the purpose of guaranteeing satisfactory completion by Lessee of the Improvements (defined below) to be constructed in accordance with the Lease (the "Secured Obligations") ; and WHEREAS, Lessee and Fort Worth desire and agree that Lessee be allowed to pledge Securities (as defined below) to Fort Worth, to be held by NationsBank as escrow agent, in lieu of and in complete satisfaction of the obligation to submit the Intended Security to secure the performance of the Secured Obligations; NOW THEREFORE, for and in consideration of the premises, ten dollars ($10. 00) and other good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged and confessed, the parties hereto hereby agree as follows: SECTION 1. DEFINED TERMS. For the purposes of this Pledge Agreement, unless the context otherwise clearly requires, the following terms shall have the following meanings: "Initial Security" shall mean the Securities identified on Exhibit "All attached hereto having an aggregate Market Value of not less than $ f which sum represents 100 percent of the estimated cost of constructing the following improvements (the "Improvements") : (DESCRIPTION OF IMPROVEMENTS) "Lien" shall mean any lien, security interest, charge, tax lien, pledge, encumbrance, conditional sales or other title retention arrangement or any other interest in property designed to secure the repayment of indebtedness or the satisfaction of any other obligation. "Market Value" shall mean the price, as of any date, obtained on such date from a generally recognized source agreed to by the parties or the most recent closing bid quotation obtained from such a source, excluding accrued interest. The parties agree in advance to any source acceptable to NationsBank that is a nationally recognized exchange. "Securities" shall mean (a) securities that are direct obligations of the United States having a maturity of not more than twenty (20) years and (b) municipal bonds having a maturity of not more than twenty (20) years which are approved by Fort Worth and which are rated "AAA" by Moody' s or by Standard & Poorls. SECTION 2 . PLEDGE. As security for the full and punctual performance of the Secured Obligations, Lessee hereby pledges, hypothecates, assigns, transfers, and sets over to Fort Worth, and hereby grants to Fort Worth a security interest in, the Initial Security and all rights and privileges pertaining thereto with the exception of the interest income to be derived therefrom, which interest income shall remain the property of Lessee and shall be distributed by NationsBank in accordance with Lessee' s periodic instructions (all such Initial Security, substitutions therefor as permitted hereunder, and other property and rights described are collectively called the "Pledged Collateral") ; TO HAVE AND TO HOLD the Pledged Collateral, together with all rights, titles, interests, privileges, and preferences appertaining to or incidental thereto, unto Fort Worth subject, however, to the terms covenants, and conditions hereinafter set forth. The security interest granted and the assignments made hereunder are made as security only and shall not subject Fort Worth or NationsBank to, or transfer or in any way affect or modify, any obligation of Lessee with respect to any of the Pledged Collateral or any transaction involving or giving rise thereto. SECTION 3. PHYSICAL POSSESSION OF PLEDGED COLLATERAL Concurrently with the execution of this Pledge Agreement, Lessee shall have delivered to and deposited with NationsBank the certificates or instruments representing or evidencing the Pledged Collateral. The parties acknowledge and agree that NationsBank shall be required to segregate the Pledged Collateral from other securities held in trust by NationsBank for Lessee in accordance with the normal practices of NationsBank. NationsBank shall return all certificates or instruments representing or evidencing the Pledged Collateral remaining in its possession to Lessee (or take such other action as Lessee may request or direct) immediately after receipt of written notice from Fort Worth that the Secured Obligations have been fully performed. During such time as NationsBank has possession of the Pledged Collateral, NationsBank shall furnish to the City (when requested by the City) written acknowledgments signed by a trust officer listing the Pledged Collateral by name of security, type of security, maturity date, interest rate, and CUSIP number and acknowledging that such collateral has been pledged to the City pursuant to this Pledge Agreement. SECTION 4. REPRESENTATIONS AND WARRANTIES. Lessee does hereby represent and warrant to Fort Worth and NationsBank that: (a) The Pledged Collateral is free and clear of all Liens except those created by this Pledge .Agreement; (b) Lessee (i) is the owner of the Pledged Collateral or (ii) has obtained the consent of the owner of the Pledged Collateral to use the Pledged Collateral in the manner contemplated in this Pledge Agreement; (c) Lessee has lawful authority to pledge the Pledged Collateral in the manner hereby contemplated; (d) no consent or approval of any governmental body or regulatory authority is necessary to the validity of the rights created hereunder; (e) the execution, delivery and consummation of this Pledge Agreement will not violate any law, regulation, mortgage, indenture, contract, instrument, judgment or decree applicable to or binding on Lessee; and (f) this Pledge Agreement has been duly authorized, executed and delivered by Lessee and constitutes a legal, valid, and binding obligation of Lessee enforceable in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency, moratorium, or other similar laws affecting creditors, rights generally and except as enforceability may be limited by general principles of equity. The delivery at any time by Lessee to NationsBank for the benefit of Fort Worth of instruments, cash or other items evidencing the Pledged Collateral shall constitute a representation and warranty by Lessee that, with respect to such Pledged Collateral, the matters heretofore warranted in clauses (a) through (f) immediately above are true and correct on, and as if they were made upon, the date of such delivery. SECTION 5. COVENANTS (a) Affirmative Covenants. So long as any of the Secured Obligations remain unperformed, Lessee covenants and agrees that Lessee will: (i) from time to time execute and deliver to Fort Worth all such assignments, certificates, supplemental writings, and other items and do all other acts or things as Fort Worth may reasonably request in order to evidence and perfect the security interest of Fort Worth in the Pledged Collateral; (ii) furnish Fort Worth with information which Fort Worth may reasonably request concerning the Pledged Collateral; and (iii) notify Fort Worth of any claim, action, or proceeding affecting title to the Pledged Collateral or Fort Worth's security interest therein. (b) Negative Covenants. So long as any of the Secured Obligations remain unperformed, Lessee covenants and agrees that Lessee will not: (i) sell, assign or transfer any rights of Lessee in the Pledged Collateral; or (ii) create any Lien in the Pledged Collateral, or any part thereof, or permit the same to be or become subject to any Lien except the security interest herein created in favor of Fort Worth. SECTION 6. VOTING RIGHTS: DIVIDENDS, ETC. , PRIOR TO DEFAULT. So long as no Default exists, Lessee shall be entitled to receive, retain, and expend any interest income payable with respect to the Pledged Collateral and any and all other distributions made on or with respect to the Pledged Collateral. If a Default shall have occurred and be continuing, any interest income payable on the Pledged Collateral, and any and all other distributions made on or with respect to the Pledged Collateral, shall be and become part of the Pledged Collateral and shall be held in trust for the benefit of Fort Worth. Fort Worth shall have the right, during the continuance of any Default, to direct NationsBank to notify and direct, and NationsBank shall have the right to notify and direct, the issuer of the Pledged Collateral to make all payments and distributions directly to NationsBank for the benefit of Fort Worth. The issuer of the Pledged Collateral making any such payments or distributions shall be fully protected in relying on the written notice from NationsBank. SECTION 7 . EVENTS OF DEFAULT. Lessee shall be in default under this Pledge Agreement only upon the happening of any the following events (a "Default.") : (a) default in the timely performance of the Secured Obligations after written notice thereof has been given to Lessee and NationsBank and such default is not cured within the time periods provided in the Lease; (b) any warranty or representation made to Fort Worth by Lessee in connection with this Pledge Agreement proves to have been false in any material respect when made; or (c) default in delivery of the Additional Securities as provided in Section 13 hereof. SECTION 8. RIGHTS AND REMEDIES OF FORT WORTH UPON AND AFTER DEFAULT. (a) Remedy. Upon the occurrence of a Default, Fort Worth shall have the right to direct NationsBank to sell or otherwise dispose of all or any part of the Pledged Collateral in accordance with normal banking procedures. NationsBank is hereby authorized to sell or otherwise dispose of the Pledged Collateral immediately upon the receipt of a written statement purporting to be executed by an authorized representative of Fort Worth stating that: (i) a Default by Lessee has occurred under the Lease with respect to construction of the Improvements; and III (ii) written notice of such Default has been given by Fort Worth to Lessee and NationsBank and such Default was not cured within the time periods provided in the Lease; and (iii) Fort Worth is entitled to have the Pledged Collateral sold or disposed of in accordance with the Pledge Agreement. In the event of sale, NationsBank shall not be liable for any fluctuation in Market Value of the * Pledged Collateral, and any such sale or other disposition may be as a unit or in parcels (it being agreed that the sale of any part of the Pledged Collateral shall not exhaust the power of sale granted hereunder, but sales may be made from time to time until all of the Pledged Collateral has been sold or until the Secured Obligations have been fully performed) . Fort Worth shall be liable for, and shall return to Lessee, the amount, if any, by which the sales proceeds exceed the amount necessary to complete performance of the Secured Obligations. (b) Sale of Pledged Collateral. Upon the consummation of any sale, NationsBank shall have the right to deliver, assign, and transfer to the purchaser the Pledged Collateral sold. Each purchaser at any such sale shall hold the property sold free from any claim or right of whatsoever kind, and Lessee hereby waives (to the extent permitted by law) all rights of redemption, stay, and/or appraisal. (c) Notices. Any notice required or permitted to be given to Lessee or Fort Worth shall be given in writing and shall be personally delivered or mailed by prepaid certified or registered mail to such party at the address set forth below. Any notice required or permitted to be given to NationsBank shall be given in writing and shall be effective when actually received. Alliance Air Services, Inc. ATTN: President 2250 Alliance Boulevard Ft. Worth, Texas 76177 City of Fort Worth Attn: City Manager 1000 Throckmorton Street Fort Worth, Texas 76102 NationsBank of Texas, N.A. Attn: Ray Colvin, Trust Department P. 0. Box 830241 Dallas, Texas 75283-0241 Any such notice shall be deemed to have been given (whether actually received or not) on the day personally delivered as aforesaid or, if mailed, on the day it is mailed as aforesaid. Any party may change its address for notice by giving all other parties hereto notice of such change in the manner set forth in this Section 8 (c) not later than 10 days before the effective date of such new address. SECTION 9. CERTAIN OTHER RIGHTS AND DUTIES OF FORT WORTH AND NATIONSBANK. (a) Responsibility for Pledged Collateral. Fort Worth and NationsBank shall not have a duty to fix or preserve rights against parties who may have had a prior interest in the Pledged Collateral or to collect any amount payable with respect to the Pledged Collateral, but shall be liable only to the account of Lessee for what Fort Worth and NationsBank may actually collect or receive thereon. (b) Nondisclosure. In so far as permitted by Art. 6252-17, Texas Revised Civil Statutes, Fort Worth shall not discuss or disclose the Pledged Collateral with any persons who are not employed by Fort Worth, and then only to the extent such discussion or disclosure is absolutely required. SECTION 10. NONEXCLUSIVE RIGHTS AND REMEDIES. If the Lessee fails to timely perform the Secured Obligations, Fort Worth is entitled to exercise its rights as set forth in Section 8 hereof. SECTION 11. SUBSTITUTION OF COLLATERAL. Notwithstanding any contrary provision in this Pledge Agreement, Lessee shall have the right (without the consent of Fort Worth) , at any time and from time to time, to obtain releases of all or any part of the Pledged Collateral (hereinafter called the "Released Collateral") upon satisfaction of the following conditions: (a) Lessee shall provide Fort Worth and NationsBank written notice (the "Substitution Notice") that Lessee desires to obtain Released Collateral (as specified and described in such notice) in exchange for a contemporaneous substitution of different Securities for collateral (as also specified and described in the Substitution Notice) ; and (b) Lessee shall pledge to Fort Worth, and deliver to NationsBank for the benefit of Fort Worth, substituted Securities (the "Substituted Collateral") the Market Value of which Substituted Collateral together with the Market value of the remaining non-released Pledged Collateral -shall in the aggregate be at least equal to 1000 of the cost to construct the Improvements. All Substituted Collateral shall be deemed to be Pledged Collateral for purposes of this Pledge Agreement. Upon satisfaction of the above-specified conditions, NationsBank shall be authorized (without the consent of Fort Worth) to return to Lessee any original certificates or instruments In NationsBank's possession that represent or evidence the Released Collateral or take such other action with respect to the Released Collateral as Lessee may request or direct. Lessee shall pay the expenses incurred by NationsBank in connection with obtaining each such release and substitution. SECTION 12 . PERIODIC WITHDRAWAL OF COLLATERAL. Notwithstanding any contrary provision in this Pledge Agreement, Lessee shall have the right to monthly withdrawals of the Pledged Collateral (hereinafter called the "Withdrawn Collateral") , upon satisfaction of the following conditions: (a) Lessee shall provide Fort Worth and NationsBank written notice (the "Withdrawal Notice") that Lessee desires to obtain the Withdrawn Collateral; and (b) the aggregate Market Value of the Pledged Collateral after withdrawal of the Withdrawn Collateral is at least equal to the estimated value of the Secured Obligations then remaining to be performed (such remaining value is hereinafter called the "Estimated Cost to Complete") . The Withdrawal Notice shall include a description of the Withdrawn Collateral and Lessee' s calculation of the Estimated Cost to Complete. Upon receipt of the Withdrawal Notice, Fort Worth shall have ten (10) calendar days to notify Lessee of Fort Worth's calculation of the Estimated Cost to Complete. If Fort Worth fails to so notify Lessee, then, Lessee's calculation shall be deemed to have been accepted and approved by Fort Worth. If Fort Worth' s calculation is less than, or not more than five percent (59.-) higher than, Lessee's calculation, then Fort Worth' s calculation shall be deemed to have been accepted and approved by Lessee. If Fort Worth's calculation exceeds Lessee' s calculation by more than five percent (5°s) , Fort Worth and Lessee shall jointly approve a Estimated Cost to Complete. Within thirty days of ' receipt of Withdrawal Notice, Fort Worth shall execute a release authorizing NationsBank to return to Lessee any original certificates or instruments in NationsBank' s possession that represent or evidence the Withdrawn Collateral or take such other action with respect to the Withdrawn Collateral as Lessee may request or direct. Lessee shall pay the expenses incurred by NationsBank in connection with obtaining each such release. SECTION 13 . PERIODIC VALUATION OF PLEDGED COLLATERAL. At any time and from time to time (but not more frequently than once each month) Fort Worth, at Lessee' s sole cost and expense, may request NationsBank to obtain or provide the Market Value of the Pledged Collateral. Fort Worth may cause Lessee to pledge additional Securities (the "Additional Securities") as Pledged Collateral upon satisfaction of the following conditions: (a) Fort Worth shall provide Lessee and NationsBank a written notice setting forth the Market Value of the Pledged Collateral and requesting Lessee to pledge Additional Securities having a specified Market Value; and (b) the aggregate Market Value of the Pledged Collateral (including the Additional Securities) shall be equal to (or, at Lessee' s option, greater than) the last-determined Estimated Cost to Complete (or the estimated cost to construct the Improvements if no Estimated Cost to Complete has yet been determined hereunder) . .Lessee shall have five days from receipt of such notice to pledge to Fort Worth, and deliver to NationsBank for the benefit of Fort Worth, all certificates or instruments representing or evidencing Additional Securities, the market value of which Additional Securities shall be confirmed by NationsBank within five (5) business days after receipt of same. SECTION 14. NON-ASSIGNABILITY OF FORT WORTH'S RIGHTS. The rights, powers, and interest held by Fort Worth hereunder in and to the Pledged Collateral may not be transferred or assigned by Fort Worth in whole or in part. Any attempted transfer or assignment shall be absolutely void and shall entitle Lessee to a release of all Pledged Collateral. SECTION 15. NO WAIVER. No waiver by Fort Worth of any Default shall be deemed to be a waiver of any other subsequent Default. No delay or omission by Fort Worth in exercising any right or power hereunder shall impair any such right or power or be construed as a waiver thereof, nor shall any single or partial exercise of any such right or power preclude other or further exercise thereof. SECTION 16. BINDING EFFECT. This Pledge Agreement shall be binding on the parties, their successors and assigns. No provision of this Pledge Agreement may be amended, waived, or modified except pursuant to a written instrument executed by Fort Worth, NationsBank, and Lessee. SECTION 17 . CHOICE OF LAW. This Pledge Agreement is to be construed and interpreted in accordance with the laws of the State of Texas. SECTION 18. COUNTERPARTS. This Pledge Agreement may be executed in any number of multiple counterparts and by different parties on separate counterparts, all of which when taken together shall constitute one and the same agreement. SECTION 19 . NATIONSBANK INDEMNITY. Lessee hereby agrees to release, hold harmless, and indemnify NationsBank (and its directors, officers, employees, agents and representatives) from and against all claims, damages, expenses, costs, suits, and other liability of any kind whatsoever that arise out of or are directly or indirectly related to the performance by NationsBank of its duties hereunder except for the gross negligence or willful misconduct of NationsBank or its directors, officers, employees, agents, or representatives. ALLIANCE AIR SERVICES, INC. By: Title: Date: CITY OF FORT WORTH, TEXAS By: Title: Date: i i I NATIONSBANK OF TEXAS, N.A. By: Title: Date: EXHIBIT A United States Treasury Bills CUSIP No. Due f MCHIBIT D Legal Description of Parcels No. 1, No. 2, and No. 4 PARCEL 1 j COMMENCING AT THE POINT WHERE THE WESTERLY RIGHT-0F-WAY LINE OF JET STREAM WAY INTERSECTS A NORTHERLY LINE OF SAID LOT 1, BLOCK 1,ALLIANCE AIRPORT; i THENCE WITH SAID WESTERLY RIGHT-OF-WAY LINE AS FOLLOWS. S 09. 53' 13'E.65.00 FEET TO THE BEGINNING OF A CURVE TO THE LEFT. 73.85 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL.ANGLE OF 650 05'6W,WITH A RADIUS OF 65.00 FEET,AND A LONG CHORD WHICH BEARS S 42' 26' 11'E,69.94 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 34.09 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT.THROUGH A CENTRAL ANGLE OF 65. 05'56',WITH A RADIUS OF 30.00 FEET AND A LONG CHORD WHICH BEARS S 42' 26' 11'E,32.28 FEET; S 09' S3' 13°E,290.83 FEET TO.-THE BEGINNING OF A CURVE TO THE RIGHT; 31.42 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 90' 00'01',WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHIM BEARS S 35' W 4T W, 28.28 FEET TO A POINT IN THE NO LY.RIGHT-OF WAY LINE OF ALLIANCE BOULEVARD; i THENCE S 80. OS'47'W.14.00 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE ; THENCE 173.37 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 35' 43'51'.WITH A RADIUS OF 278.00 FEET AND A LONG CHORD WHICH BEARS S 62' 14'Sr W. 170.57 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 28.18 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 80. 43'Sr.WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 84° 44'Sr W, 25.91 FEET TO A POINT IN THE NORTHERLY RIGHT-OF-WAY LINE OF A RESTRICTED ACCESS RIGHT-OF--WAY; THENCE N 54. 53'13'W,25.09 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO.THE LEFT; C&B NO. 89020583F 03/06/91 PAGE 1 OF 3 THENCE 100.53 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-0F- WAY LINE THROUGH A CENTRAL ANGLE OF 45. 00'00',WITH A RADIUS OF 128.00 FEET AND A LONG CHORD WHICH BEARS N 7r 23' 13'W. 97.97 FEET; THENCE S 80* 06' 4r W, 124.08 FEET WITH SAID NORTHERLY RIGHT-OF-WAY UNE; THENCE S 09* 53' 130 E, 56.00 FEET WITH THE WEST LINE OF SAID RESTRICTED ACCESS RIGHT-OF- WAY TO ITS SOUTHERLY RIGHT-OF-WAY LINE; THENCE N 80* 06'4r E, 4.66 FEET TO THE POINT OF BEGINNING; THENCE N 80.06'47'E,119.53 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TOTHE BEGINNING OF A CURVE TO THE RIGHT; THENCE 56.55 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 45' 00'00'.WITH A RADIUS OF MOO FEET AND A LONG. CHORD WHICH BEARS S 77' 23' 13' E, 55.11 FEET; THENCE S 540 63' 130 E.25.09 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 41.72 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 1190 31'41'.WITH A RADIUS OF 20M FEET AND A LONG CHORD WHICH BEARS S W 52' 390 W, 34.56 FEET TO A POINT IN THE WESTERLY RIGHT-OF-WAY LINE OF ALLIANCE BOULEVARD,AND THE BEGINNING OF A CURVE TO THE LEFT; THENCE WITH THE WESTERLY RIGHT-OF-WAY LINE OF ALLIANCE BOULEVARD AS FOLLOWS: 15.42 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 440 OW Mr, WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 42* 33'340 W, 15.04 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; 305.26 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 60" 43'46', WITH A RADIUS OF 288.00 FEET AND A LONG CHORD WHICH BEARS S 090 53' 13' E, 291.17 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; 15.42 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 440 09' 50a.WITH A RADIUS OF 20.00 FEET, AND A LONG CHORD WHICH BEARS S 62" 20'0220 E, 15.04 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT, 41.72 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 1190 31' 430,WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 24* 39' W E, 34.56 FEET TO A POINT IN THE NORTHERLY RIGHT-OF-WAY LINE OF A RESTRICTED ACCESS RIGHT-OF-WAY, THENCE S 35.06'48m W,25.09 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; C&B NO. 89020583F 03/06/91 PAGE 2 OF 3 • i PARCEL 2 COMMENCING AT THE POINT WHERE THE WESTERLY RIGHT-OF-WAY LINE OF JET STREAM WAY INTERSECTS A NORTHERLY LINE OF SAID LOT 1, BLOCK 1, ALLIANCE AIRPORT; THENCE WITH SAID WESTERLY RIGHT-OF-WAY LINE AS FOLLOWS: i i S 090 53' 13' E, 65.00 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; 73.85 FEET NTH THE ARC OF S AID CU RVE TO THE LEFT THR OUGH A C ENTRAL ANGLE OF 65' 05' 568, WITH A RADIUS OF 65.00 FEET, AND A LONG CHORD WHICH BEARS S 42' 26' 11'E.69.94 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; r 34.09 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 65° 05' 5W, WITH A RADIUS OF 30.00 FEET AND A LONG CHORD WHICH BEARS S 420 26' 11' E.32.28 FEET; S 09' 63' 13' E. 290.83 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 31.42 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 90' 00' 01", WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 35' 06' 47' W. 28.28 FEET TO A POINT IN THE NORTHERLY RIGHT-OF--WAY LINE OF ALLIANCE BOULEVARD; THENCE S 800 06'4r W,14.00 FEET WITH SAID NORTHERLY RIGHT-0F-WAY LINE TO THE BEGINNING OF A CURVE TO THE LEFT; THENCE 173.37 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 35. 43'510.WITH A RADIUS OF 278.00 FEET AND A LONG CHORD WHICH BEARS S 620 14'S2'W. 170.57 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 28.18 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-0F- WAY LINE,THROUGH A CENTRAL ANGLE OF 80. 43'52'.WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 84' 44'S2'W. 25.91 FEET TO A POINT IN THE NORTHERLY RIGHT-OF-WAY LINE OF A RESTRICTED ACCESS RIGHT-OF--WAY; THENCE N 540 53' 130 W.25.09 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE LEFT; THENCE 100.53 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-OF- WAY LINE THROUGH A CENTRAL ANGLE OF 450 00'000.WITH A RADIUS OF 128.00 FEET AND A LONG CHORD WHICH BEARS N 77' 23' 13'W. 97.97 FEET; THENCE S 80' 06' 4r W. 124.08 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE; THENCE S 09' 63' 13'E, 56.00 FEET WITH THE WEST LINE OF SAID RESTRICTED ACCESS RIGHT-0F- WAY TO ITS SOUTHERLY RIGHT-OF-WAY LINE; THENCE N 80' 06' 47' E, 4.55 FEET; C&B NO. 89020583F 03/06/91 PAGE 1 OF 3 i THENCE 56.55 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-0F- WAY LINE THROUGH A CENTRAL ANGLE OF 45° 00'000,WITH A RADIUS OF 72.00 FEET AND A LONG CHORD WHICH BEARS S 57° 36'47°W, 55.11 FEET; THENCE S 80. 06'4r W, 119.76 FEET WITH SAID NORTHERLY RIGHT-0F-WAY LINE: THENCE N 094 51'300 W. 454.00 FEET TO THE POINT OF BEGINNING, CONTAINING 1.603 ACRES OR 69,834 SQUARE FEET OF LAND, MORE OR LESS. i I C&B NO. 890205MF 03/06/91 PAGE 3OF3 THENCE N 800 O6'4T E,119.53 FEET WITH SAID SOUTHERLY RIGHT.OF--WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 56.55 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-0F- WAY LINE,THROUGH A CENTRAL ANGLE OF 45' 00'00'.WITH A RADIUS OF 72.00 FEET AND A LONG CHORD WHICH BEARS S 770 23' 13' E, 55.11 FEET; THENCE S 540 53'130 E.25.09 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 41.72 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-0F- j WAY LINE.THROUGH A CENTRAL ANGLE OF 11W 31'41',WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEAMS S 04. 52' 39'W. 34.56 FEET TO A POINT IN THE WESTERLY RIGHT-OF--WAY LINE OF ALLIANCE BOULEVARD,AND THE BEGINNING OF A CURVE TO THE LEFT; THENCE WITH THE WESTERLY RIGHT-OF-WAY LINE OF ALLIANCE BOULEVARD AS FOLLOWS: 15.42 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 440 09' 500,WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 420 33' 340 W, 15.04 FEET TO THE BEGINNING OF A CURVE TO THE LEFT, 305.26 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 600 43' 460,WITH A RADIUS OF 288.00 FEET AND A LONG CHORD WHICH BEARS S 090 53' 13' E.291.17 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; 15.42 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 440 09' S0'.WITH A RADIUS OF 20.00 FEET, AND A LONG CHORD WHICH BEARS S 620 20'020 E. 15.04 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 41.72 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 1190 31' 430,WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 240 39' Or E. 34.56 FEET TO A POINT IN THE NORTHERLY RIGHT-OF WAY LINE OF A RESTRICTED ACCESS RIGHT-OF-WAY; THENCE S 35' 06'48'W.25.09 FEET WITH SAID NORTHERLY RIGHT-OF--WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 56.55 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-OF- WAY LINE THROUGH A CENTRAL ANGLE OF 45' 00'00',WITH A RADIUS OF 72.00 FEET AND A LONG CHORD WHICH BEARS S Sr 36' 47'W. 55.11 FEET; THENCE S 800 06' 4r W, 119.76 FEET WITH SAID NORTHERLY RIGHT-OF--WAY LINE; THENCE S 09' 63' IT E,56.00 FEET WITH THE WEST LINE OF SAID RESTRICTED ACCESS RIGHT-OF- WAY TO ITS SOUTHERLY RIGHT-OF--WAY LINE; THENCE N 800 06' 4r E, 4.29 FEET TO THE POINT OF BEGINNING; C&B NO. 89020583E 03/06/91 PAGE 2 OF 3 i, THENCE N 80°06'4"r E,119.79 FEET WITH SAID SOUTHERLY RIGHT-OF--WAY LINE TO THE BEGINNING OF A CURVE TO THE LEFT; THENCE 100.53 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID SOUTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 45° 00'000,WITH A RADIUS OF 128.00 FEET AND A LONG CHORD WHICH BEARS N 576 36' 4T E. 97.97 FEET; THENCE N 35° 06'480 E,25.09 FEET WITH SAID SOUTHERLY RIGHT-OF--WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 28.18 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 80° 43'51-,WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS N 750 28' 43' E. 25.91 FEET TO A POINT IN THE SOUTHERLY RIGHT-OF--WAY LINE OF ALLIANCE BOULEVARD AND THE BEGINNING OF A CURVE TO THE LEFT; THENCE 173.37 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID SOUTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 35' 43'51 0.WITH A RADIUS OF 288.00 FEET AND A LONG CHORD WHICH BEARS S 82' 01' 18' E, 170.57 FEET; THENCE N 80° 06'48!E. 14.00 FEET WITH SAID SOUTHERLY RIGHT-OF--WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 31:42 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-0F- i WAY LINE THROUGH A CENTRAL ANGLE OF 89®59'59'.WITH A RADIUS OF 20.00 FEET AND A LONG : CHORD WHICH BEARS S 54® 53'130 E.28.28 FEET TO A POINT IN THE WESTERLY RIGHT-OF-WAY LINE OF JET STREAM WAY; THENCE S 090 53' 13' E. 252.00 FEET WITH SAID WESTERLY RIGHT-OF-WAY LINE; THENCE S 80® 06'47'W.450.28 FEET; THENCE N 09' 51'300 W,267.00 FEET TO THE POINT OF BEGINNING, CONTAINING 2.921 ACRES OR 127,238 SQUARE FEET OF LAND, MORE OR LESS. C&B NO. 890205WF 03/06/91 PAGE 3OF3 i PARCEL 4 COMMENCING AT THE POINT WHERE THE WESTERLY RIGHT-0F-WAY LINE OF JET STREAM WAY INTERSECTS A NORTHERLY LINE OF SAID LOT 1, BLOCK 1.ALLIANCE AIRPORT; THENCE S 15' W 46'E,518.22 FEET TO THE POINT WHERE THE WESTERLY RIGHT-0F-WAY LINE OF JET STREAM WAY INTERSECTS THE SOUTHERLY RIGHT-0F-WAY LINE OF THE NORTHERLY LOOP OF ALLIANCE BOULEVARD AND THE POINT OF BEGINNING; THENCE S 09° 53' 13° E,98.71 FEET WITH SAID WESTERLY RIGHT-0F-WAY LINE; THENCE S 80° 06'47°W.34.00 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; ti• 'I THENCE 108.91 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL.ANGLE OF 4W 31' 208, WITH A RADIUS OF 126.00 FEET AND A LONG CHORD WHICH BEARS S SW 21' OT W, 105.55 FEET; THENCE S 590 24' 33' E. 16.00 FEET TO THE BEGINNING OF A NON TANGENT CURVE TO THE LEFT; THENCE.155.42 FEET WITH THE ARC OF SAID NON-TANGENT CURVE TO THE LEFT. THROUGH A CENTRAL ANGLE OF 804 57'200.WITH A RADIUS OF 110.00 FEET AND A LONG CHORD WHICH BEARS S 090 53' 130 E, 142.81 FEET; THENCE S 3W 38'07 W, 16.00 FEET TO THE BEGINNING OF A NON TANGENT CURVE TO THE LEFT; THENCE 108.91 FEET WITH THE ARC OF SAID NON TANGENT CURVE TO THE LEFT. THROUGH A CENTRAL ANGLE OF 49® 31'200.WITH A RADIUS OF 126.00 FEET AND A LONG CHORD WHICH BEARS S 75® OT 330 E, 105.55 FEET; THENCE N 800 O6' 47° E, 34.00 FEET TO A POINT IN THE WESTERLY RIGHT-OF-WAY LINE OF JET STREAM WAY; THENCE S 09° 53' 130 E, 98.71 FEET WITH SAID WESTERLY RIGHT-0F-WAY LINE TO A POINT IN THE NORTHERLY RIGHT-OF--WAY LINE OF THE SOUTHERLY LOOP OF ALLIANCE BOULEVARD AND THE BEGINNING OF A NON TANGENT CURVE TO THE RIGHT; THENCE 27.34 FEET WITH THE ARC OF SAID NON TANGENT CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-OF-WAY LINE,THROUGH A CENTRAL ANGLE OF 310 19'6W.WITH A RADIUS OF 50.00 FEET AND A LONG CHORD WHICH BEARS S 640 26' QV W. 27.00 FEET; THENCE S 800 06'41r W.8.00 FEET WITH SAID NORTHERLY RIGHT-0F-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT', THENCE 728.85 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID RIGHT-OF-WAY LINE, THROUGH A CENTRAL ANGLE OF 1800 00'001,WITH A RADIUS OF 232.00 FEET AND A LONG CHORD WHICH BEARS N OW WIT W,464.00 FEET TO THE SOUTHERLY RIGHT-OF--WAY LINE OF AFORESAID NORTHERLY LOOP OF ALLIANCE BOULEVARD; C&B NO. 89020583F 03/06/91 PAGE 1 OF 2 i THENCE N 80° 06'47° E.8.00 FEET WITH SAID SOUTHERLY RIGHT-OF--WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 27.34 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-0F- WAY LINE,THROUGH A CENTRAL ANGLE OF 310 19'W.WITH A RADIUS OF 50.00 FEET AND A LONG CHORD WHICH BEARS S 84° 13' 15° E, 27.00 FEET TO THE POINT OF BEGINNING AND CONTAINING 1.592 ACRES OR 69,347 SQUARE FEET OF LAND, MORE OR LESS. C&B NO. 890205MF 03/06/91 PAGE 2 OF 2 the proposed schedule for negotiations (including a "target date" for submission to the city council) and shall provide an* estimate of the type, size, cost, and construction schedule for any improvements being contemplated. The City shall also give Lessee written notice (the "Refusal Notice") of any proposed agreement to lease all or any portion of the Refusal Property within three days after the city manager ' s office is prepared to recommend approval of such agreement (the "Recommended Ground Lease" ) to the city council . The Refusal Notice shall include the Recommended Ground Lease, together with copies of the city manager ' s recommendation, the applicable "M&C" prepared for the city council, and any other written materials or information in the City' s possession or control that is reasonably necessary or convenient to understanding the Recommended Ground Lease. Lessee shall have a period of 30 days after receipt of the Refusal Notice during which to notify the City that Lessee desires to lease the Refusal Property covered by the Recommended Ground Lease. If Lessee gives such notice, the City and Lessee shall enter into a lease covering such Refusal Property, which lease ( 1) shall be for a term of 30 years beginning upon full execution thereof; (2) shall have an initial ground rental rate per square foot equal to the then existing rate being charged by the City for unimproved land at Exhibit E — Page 2 of 6 EXHIBIT E RIGHT OF FIRST REFUSAL/OPPORTUNITY 1 . LESSEE'S REFUSAL RIGHT The City hereby grants to Lessee a right of first refusal (the "Refusal Right") to lease all or any portion of the property III described on Exhibit E-1 (the "Refusal Property") . The Refusal Property shall exclude property (which is part of the property identified as Parcel No. 1 on Exhibit E-1) that is currently being leased to Pinnacle Air Services, Inc . pursuant to written leases from the City until expiration of such leases; whereupon, such currently leased property shall become part of the Refusal Property. Lessee may, from time to time, terminate the Refusal Right with respect to all or any portion of the Refusal Property upon giving written notice to. the City. The Refusal Right shall continue until the earlier to occur of (i) 30 years after the Agreement is fully executed or ( ii) termination of the Agreement upon an event of default by Lessee (other than a termination pursuant to Section 19 . 1 . 1 of the Agreement) . The City shall give Lessee written notice within 10 days after beginning negotiations with any party to lease all or any portion of the Refusal Property, which notice shall describe Exhibit E - Page 1 of 6 exercise of its Refusal Right . The Opportunity Right with respect to each individual Constructed Improvement shall continue until termination (upon an event of default) of the lease pursuant to which such Constructed Improvement was constructed (whether such lease is the Agreement, any separate lease of any Platted Portion [as contemplated by Section 1 . 2 of the Agreement] , or any other lease of Refusal Property P to the exercise by Lessee of its Refusal Right as described in Paragraph 1 above) ; and if no such termination for default occurs Constructed until the last of such Con Improvements ceases to exist . Upon the expiration or termination (other than upon an event of default by Lessee) of any lease between the City and Lessee, the City and Lessee agree to begin (and thereafter use their best efforts to complete) negotiations of a new lease of any Constructed Improvements (or such portion thereof as Lessee desires) covered by such expired or terminated lease. If the City and Lessee are unable to negotiate such a new lease, the City shall then be free to solicit offers from third parties to lease such improvements . The City shall give Lessee written notice within ten days after 'beginning negotiations with any party to lease all or any portion of any Constructed Improvements, which notice Exhibit E — Page 4 of 6 Alliance Airport; (3) shall obligate the lessee thereunder to construct FBO or other aeronautical facilities (the size and scope of which shall be determined by said lessee based on then-existing market demand) according to a schedule that will result in the utilization of such Refusal Property within the time frame reflected by the Recommended Ground Lease; and (4) shall otherwise be in substantially the form of the Agreement, to the extent applicable. In the event Lessee fails to give notice of its intent to lease the Refusal Property covered by the Recommended Ground Lease within the above-described, 30-day period, the City shall be free to enter into the Recommended Ground Lease; provided, however, if any material term or provision of the Recommended Ground Lease is changed before it is executed, Lessee' s Refusal Right, as described above, will again apply to the changed agreement . 2 . LESSEE'S OPPORTUNITY RIGHT The City hereby grants to Lessee a right of first opportunity (the "Opportunity Right" ) to lease all or a portion of any improvements constructed by Lessee (the "Constructed Improvements" ) on Parcel No . 3 pursuant to the Agreement or constructed on any Refusal Property as a result of Lessee ' s Exhibit E - Page 3 of 6 3 . CONSIDERATION As consideration for the Refusal Right and the Opportunity Right (for the full terms thereof as described above) , Lessee shall pay to the City annually in advance (beginning when the Agreement is fully executed and upon each subsequent anniversary thereof for so long as any Refusal Property continues to exist) a sum equal to the product of (i) $0 . 05 multiplied times (ii) the number of gross square feet contained within the Refusal Property on the applicable anniversary date. In the event Lessee fails to make any annual payment when due, the City shall give written notice thereof to Lessee . If Lessee has not made the payment within 15 days after such notice, the City may terminate the Refusal Right, the Opportunity Right, or both. Exhibit E Page 6 of 6 shall describe the proposed schedule for negotiations ( including a "target date" for submission to the city council) . The City shall also give Lessee written notice (the "Opportunity Notice" ) of any proposed lease of all or a portion of any Constructed Improvements within three days after the city manager ' s office is prepared to recommend approval of such agreement (the "Recommended Building Lease" ) to the city council . The Opportunity Notice shall include the Recommended Building Lease, together with copies of the city manager ' s recommendation, the applicable "M&C" prepared for the city council , and any other written materials or information in the City' s possession or control that is reasonably necessary or convenient to understanding the Recommended Building Lease. Lessee shall have a period of 30 days after receipt of the Opportunity Notice during which to notify the City that Lessee desires to lease the Constructed Improvements upon the same terms and conditions contained in the Recommended Building Lease . Exhibit E - Page 5 of 6 THENCE 100.53 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-0F- WAY LINE THROUGH A CENTRAL ANGLE OF 45. 00'00',WITH A RADIUS OF 128.00 FEET AND A LONG CHORD WHICH BEARS N 77. 23' 13'W. 97.97 FEET; THENCE S 80' 06' 4r W. 124.08 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE; THENCE S 09' 53' 13'E, 56.00 FEET WITH THE WEST LINE OF SAID RESTRICTED ACCESS RIGHT-0F- WAY.TO ITS SOUTHERLY RIGHT-OF-WAY LINE; THENCE N 80' 06' 4r E, 4.55 FEET TO THE POINT OF BEGINNING; i THENCE N 80. 06'47'E,119.53 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 56.55 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-0F- WAY LINE,THROUGH A CENTRAL ANGLE OF 45' 00'00',WITH A RADIUS OF 72.00 FEET AND A LONG CHORD WHICH BEARS S 77' 23' 130 E, 55.11 FEET; THENCE S 640 ,53' 13'E.25.09 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 41.72 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 119° 31'41',WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 04' 62' 390 W. 34.56 FEET TO A POINT IN THE WESTERLY RIGHT-OF-WAY LINE OF ALLIANCE BOULEVARD,AND THE BEGINNING OF A CURVE TO THE LEFT; THENCE WITH THE WESTERLY RIGHT-OF-WAY LINE OF ALLIANCE BOULEVARD AS FOLLOWS: 15.42 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 440 09'500, WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 42' 33'34'W. 15.04 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; 305.26 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 60' 43' 460, WITH A RADIUS OF 288.00 FEET AND A LONG CHORD WHICH BEARS S 09' 63' 13' E, 291.17 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; 15.42 FEET WITH THE ARC OF SAID CURVE TO THE LEFT, THROUGH A CENTRAL ANGLE OF 446 09' S0',WITH A RADIUS OF 20.00 FEET,AND A LONG CHORD WHICH BEARS S 62' 20'0220 E. 15.04 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 41.72 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 119° 31' 430, WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 24. 39' 04' E, 34.56 FEET TO A POINT IN THE NORTHERLY RIGHT-OF--WAY LINE OF A RESTRICTED ACCESS RIGHT-OF-WAY; THENCE S 35' 06'480 W,25.09 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; C&B NO. 890205MF 03/06/91 PAGE 2 OF 3 1 MCHIBIT E-1 REFUSAL PROPERTY I PARCEL 1 COMMENCING AT THE POINT WHERE THE WESTERLY RIGHT-OF-WAY LINE OF JET STREAM WAY INTERSECTS A NORTHERLY LINE OF SAID LOT 1,BLOCK 1,ALLIANCE AIRPORT; i THENCE WITH SAID WESTERLY RIGHT-OF--WAY LINE AS FOLLOWS: S 09' 53' 13' E.65.00 FEET TO THE BEGINNING OF A CURVE TO THE LEFT, 73.85 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL.ANGLE OF 65' 05' 560,WITH A RADIUS OF 65.00 FEET,AND A LONG CHORD WHICH SEARS S 42' 26' 11'E.69.94 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 34.09 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 65' 05'5W.WITH A RADIUS OF 30.00 FEET AND A LONG CHORD WHICH BEARS S 42' 26' 11'E,32.28 FEET; S 09' 53' 13'E,280.83 FEET TO.-THE BEGINNING OF A CURVE TO THE RI ; 31.42 FEET WITH THE ARC OF SAID CURVE TO 7W RIGHT,THROUGH A CENTRAL ANGLE OF 90' 00'010,WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 35' 06' 47' W, 28.28 FEET TO A POINT IN THE NORTHERLY RIGHT WAY LINE OF ALLIANCE BOULEVARD; THENCE S 80' 06'47°W.14.00 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE LEFT; THENCE 173.37 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 35' 43'St',WITH A RADIUS OF 278.00 FEET AND A LONG CHORD WHICH BEARS S 620 14'S2'W. 170.57 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 28.18 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF SO' 43'5r.WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 84' 44'62'W. 25.91 FEET TO A POINT IN THE NORTHERLY RIGHT-0F-WAY LINE OF A RESTRICTED ACCESS RIGHT-OF-WAY. THENCE N 54' 53'13"W.25.09 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE LEFT; CSB NO. 89020583F 03/06/91 PAGE 1 OF 3 PARCEL 2 COMMENCING AT THE POINT WHERE THE WESTERLY RIGHT-0F-WAY LINE OF JET STREAM WAY INTERSECTS A NORTHERLY LINE OF SAID LOT 1, BLOCK 1, ALLIANCE AIRPORT; THENCE WITH SAID WESTERLY RIGHT-0F-WAY LINE AS FOLLOWS: S 09' 53' 130 E. 65.00 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; 73.85 FEET WITH THE ARC OF SAID CURVE TO THE LEFT, THROUGH A CENTRAL ANGLE OF 65' 05' W. WITH A RADIUS OF 65.00 FEET, AND A LONG CHORD WHIC 1 BEARS S 42. 26' 11' E. 69.94 FEET TO THE BEGINNING'OF A CURVE TO THE RIGHT; 34.09 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE'OF 65' 05' 660, WITH A RADIUS OF 30.00 FEET AND A LONG CHORD WHICH BEARS j S 42' 26' 11' E, 32.28 FEET; !, S 09' 53' 13' E, 290.83 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 31.42 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT,THROUGH A CENTRAL ANGLE OF 90' 00' 010, WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 35' 06' 47° W. 28.28 FEET TO A POINT IN THE NORTHERLY RIGHT-0F-WAY LINE OF ALLIANCE BOULEVARD; THENCE S 80' 06'4r W.14.00 FEET WITH SAID NORTHERLY RIGHT-0F-WAY LINE TO THE BEGINNING OF A CURVE TO THE LEFT; THENCE 173.37 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID NORTHERLY RIGHT-0F- WAY LINE,THROUGH A CENTRAL ANGLE OF 35' 43'51'.WITH A RADIUS OF 278.00 FEET AND A LONG CHORD WHICH BEARS S 62' 14'S2'W. 170.57 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 28.18 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-0F- WAY LINE,THROUGH A CENTRAL ANGLE OF SW 43'52'.WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 84' 44'62w W. 25.91 FEET TO A POINT IN THE NORTHERLY RIGHT-OF--WAY LINE OF A RESTRICTED ACCESS RIGHT-0F-WAY; THENCE N 54.53' 13'W.25.09 FEET WITH SAID NORTHERLY RIGHT-OF--WAY LINE TO THE BEGINNING OF A CURVE TO THE LEFT; THENCE 100.53 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID'NORTHERLY RIGHT-0F- WAY LINE THROUGH A CENTRAL ANGLE OF 45' 00'006,WITH A RADIUS OF 128.00 FEET AND A LONG CHORD WHICH BEARS N 7r 23' 13'W, 97.97 FEET; THENCE S 80' 06' 4r W. 124.08 FEET WITH SAID NORTHERLY RIGHT-0F-WAY LINE; THENCE S 09' 63' 13'E, 56.00 FEET WITH THE WEST LINE OF SAID RESTRICTED ACCESS RIGHT-0F- WAY TO ITS SOUTHERLY RIGHT-OF-WAY LINE; THENCE N 80' 06' 4r E. 4.55 FEET; C&B NO. 89020583F 03/06/91 PAGE 1 OF 3 i THENCE 56.55 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-0F- WAY LINE THROUGH A CENTRAL ANGLE OF 45' 00'00".WITH A RADIUS OF 72.00 FEET AND A LONG CHORD WHICH BEARS S 57° 36'4T W, 55.11 FEET; i THENCE S 80. 06' 4r W, 119.76 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE; THENCE N 090 61'300 W, 454.00 FEET TO THE POINT OF BEGINNING, CONTAINING 1.603 ACRES OR 69,834 SQUARE FEET OF LAND, MORE OR LESS. 4 i I C&B NO. 89020583F 03/06/91 PAGE 3 OF 3 THENCE N 800 W 47-E., 119.79 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE LEFT; THENCE 100.53 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID SOUTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 45- 00'00r.WITH A RADIUS OF 128.00 FEET AND A LONG CHORD WHICH BEARS N 570 36' 4r E, 97.97 FEET; THENCE N 356 06'480 E.25.09 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TO THE BEGINMIslGil OF A CURVE TO THE RIGHT; THENCE 28.18 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 80- 43'51'.WITH A RADIUS OF 20.00 FEET AND ALONG CHORD WHICH BEARS N 760 28' 438 E. 25.91 FEET TO A POINT IN THE SOUTHERLY RIGHT-OF-WAY LINE OF ALLIANCE BOULEVARD AND THE BEGINNING OF A CURVE TO THE LEFT; THENCE 173.37 FEET WITH THE ARC OF SAID CURVE TO THE LEFT AND SAID'SOUTHERLY--RIGHT-OF- WAY LINE,THROUGH A.CENTRAL ANGLE OF 35* 43'510,WITH A RADIUS OF 288.00 FEET AND A LONG CHORD WHICH BEARS S 82* 01' ISO E, 170.57 FEET; THENCE N 80* 06'480 E, 14.00 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 31.42 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-OF- WAY LINE THROUGH A CENTRAL ANGLE OF 89' SW 59'.WITH A RADIUS OF 20.00 FEET AND A LONG� CHORD WHICH BEARS S W 63'13'E,28.28 FEET TO A POINT IN THE WESTERLY RIGHT-OF-WAY LINE OF JET STREAM WAY; THENCE S 090 63' 130 E. 252.00 FEET WITH SAID WESTERLY RIGHT-OF-WAY LINE; THENCE S 800 06'4"r W. 450.28 FEET; THENCE N 09* 61'300 W. 267.00 FEET TO THE POINT OF BEGINNING, CONTAINING 2.921 ACRES OR 127,238 SQUARE FEET OF LAND, MORE OR LESS. C&B NO. 89020583F 03/06/91 PAGE 3 OF 3 I THENCE N 80' O6'4T E. 119.53 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 56.55 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-0F- WAY LINE,THROUGH A CENTRAL ANGLE OF 45' 00'00',WITH A RADIUS OF 72.00 FEET AND A LONG CHORD WHICH BEARS S 77' 23' 13' E. 55.11 FEET; THENCE S 54' 53' 13' E.25.09 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 41.72 FEET WITH THE ARC OF SAID CURVE TO THE.RIGHT AND SAID SOUTHERLY RIGHT-0F- WAY LINE,THROUGH A CENTRAL ANGLE OF 119° 31'41'.WITH A RADIUS OF 20.00 FEET AND A LONG j CHORD WHICH BEARS S 04. 62' 3V W. 34.56 FEET TO A POINT IN THE WESTERLY RIGHT-OF--WAY LINE OF ALLIANCE BOULEVARD,AND THE BEGINNING OF A CURVE TO THE LEFT; THENCE WITH THE WESTERLY RIGHT-OF--WAY LINE OF ALLIANCE BOULEVARD AS FOLLOWS: 15.42 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 44' 09' 500, WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 42' 33'348 W, 15.04 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; 305.26 FEET WITH THE ARC OF SAID CURVE TO THE LEFT.THROUGH A CENTRAL ANGLE OF 60. 43'46',WITH A RADIUS OF 288.00 FEET AND A LONG CHORD WHICH BEARS S 09' S3' 13' E. 291.17 FEET TO THE BEGINNING OF A CURVE TO THE LEFT. 15.42 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 44' 09'50',WITH A RADIUS OF 20.00 FEET, AND A LONG CHORD WHICH BEARS S 62' 20'02'E, 15.04 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 41.72 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT.THROUGH A CENTRAL ANGLE OF 119' 31' 43.WITH A RADIUS OF 20.00 FEET AND A LONG CHORD WHICH BEARS S 24' 39' 04' E, 34.56 FEET TO A POINT IN THE NORTHERLY RIGHT-OF-WAY LINE OF A RESTRICTED ACCESS RIGHT-OF--WAY; THENCE S 35' 06'48'W,25.09 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 56.55 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-OF- WAY LINE THROUGH A CENTRAL ANGLE OF 45' 00'000.WITH A RADIUS OF 72.00 FEET AND A LONG CHORD WHICH BEARS S Sr 36' 47'W. 55.11 FEET; THENCE S 80' 06' 4r W. 119.76 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE; THENCE S 09' 53' 13' E.66.00 FEET WITH THE WEST LINE OF SAID RESTRICTED ACCESS RIGHT-OF- WAY TO ITS SOUTHERLY RIGHT-OF--WAY LINE; THENCE N 800 06'4r E, 4.29 FEET TO THE POINT OF BEGINNING; C&B NO. 89020583F 03/06/91 PAGE 2 OF 3 .. I THENCE N 80. 06'47'E,8.00 FEET WITH SAID SOUTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 27.34 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID SOUTHERLY RIGHT-OF- WAY LINE,THROUGH A CENTRAL ANGLE OF 31° 19'66',WITH A RADIUS OF 50.00 FEET AND A LONG CHORD WHICH BEARS S 840 13' 150 E, 27.00 FEET TO THE POINT OF BEGINNING AND CONTAINING 1.592 ACRES OR 69,347 SQUARE FEET OF LAND, MORE OR LESS. i i I� I I C&B NO. 89020583F 03/06/91 PAGE Z OF 2 I PARCEL 4 COMMENCING AT THE POINT WHERE THE WESTERLY RIGHT-OF-WAY LINE OF JET STREAM WAY INTERSECTS A NORTHERLY LINE OF SAID LOT 1. BLOCK 1, ALLIANCE AIRPORT; THENCE S 150 58'46'E,518.22 FEET TO THE POINT WHERE THE WESTERLY RIGHT-OF-WAY LINE OF JET STREAM WAY INTERSECTS THE SOUTHERLY RIGHT-OF-WAY LINE OF THE NORTHERLY LOOP OF ALLIANCE BOULEVARD AND THE POINT OF BEGINNING; THENCE S 09' 53' 130 E,98.71 FEET WITH SAID WESTERLY RIGHT-OF-WAY LINE; THENCE S 80' W 47'W.34.00 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; THENCE 108.91 FEET WITH THE ARC OF SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 49° 31' 20'. WITH A RADIUS OF 126.00 FEET AND A LONG CHORD WHICH BEARS S 55' 21' OT W, 105.55 FEET; THENCE S 59' 24'330 E, 16.00 FEET TO THE BEGINNING OF A NON TANGENT CURVE TO THE LEFT; THENCE 155.42 FEET WITH THE ARC OF SAID NON TANGENT CURVE TO THE LEFT, THROUGH A CENTRAL ANGLE OF 80' Sr 20',WITH A RADIUS OF 110.00 FEET AND A LONG CHORD WHICH BEARS S 09' 63' 13' E. 142.81 FEET; THENCE S 39. 38'07 W, 16.00 FEET TO THE BEGINNING OF A NON-TANGENT CURVE TO THE LEFT; THENCE 108.91 FEET WITH THE ARC OF SAID NON TANGENT CURVE TO THE LEFT, THROUGH A CENTRAL ANGLE OF 49' 31'2W.WITH A RADIUS OF 126.00 FEET AND A LONG CHORD WHICH BEARS S 75' OT 33' E, 105.55 FEET; THENCE N 800 W 47 E, 34.00 FEET TO A POINT IN THE WESTERLY RIGHT-OF-WAY LINE OF JET STREAM WAY; THENCE S 09' 53' 13' E,98.71 FEET WITH SAID WESTERLY RIGHT-OF-WAY UNE TO A POINT IN THE NORTHERLY RIGHT-OF--WAY LINE OF THE SOUTHERLY LOOP OF ALLIANCE BOULEVARD AND THE BEGINNING OF A NON TANGENT CURVE TO THE RIGHT; THENCE 27.34 FEET WITH THE ARC OF SAID NON TANGENT CURVE TO THE RIGHT AND SAID NORTHERLY RIGHT-OF--WAY LINE,THROUGH A CENTRAL ANGLE OF 31. 19'56',WITH A RADIUS OF 50.00 FEET AND A LONG CHORD WHICH BEARS S 640 26'49'W,27.00 FEET; THENCE S 800 06'4W W,8.00 FEET WITH SAID NORTHERLY RIGHT-OF-WAY LINE TO THE BEGINNING OF A CURVE TO THE RIGHT' 728.85 FEET WITH THE ARC OF SAID CURVE TO THE RIGHT AND SAID RIGHT-0F-WAY LINE, THROUGH A CENTRAL ANGLE OF 180' 00'00',WITH A RADIUS OF 23200 FEET AND A LONG CHORD WHICH BEARS N 09° 53'13'W.464.00 FEET TO THE SOUTHERLY RIGHT-0F-WAY LINE OF AFORESAID NORTHERLY LOOP OF ALLIANCE BOULEVARD; C&B NO.89020583F 03/06/91 PAGE 1 OF 2