HomeMy WebLinkAboutContract 9748 FIXED BASE OPERATOR LEASE ` ITY SECRETARY
rQHTR-AC_f No.
THE STATE OF TEXAS §
COUNTY OF TARRANT §
THIS CONTRACT AND LEASE AGREEMENT is made by and between
the City of Fort Worth, a municipal corporation in the State
of Texas, acting by and through Morris C. Matson, its duly
authorized City Manager, hereinafter called "Lessor" and the
Marshall R. Young Oil Co., an independent contractor, acting
by and through W. K. Young, its duly authorized President,
hereinafter called "Lessee";
W I T N E S S E T H
WHEREAS, Lessor owns and operates Meacham Field (herein-
after called "Airport") , located in the County of Tarrant,
State of Texas; and
WHEREAS, Lessor deems it advantageous to itself and to its
operation of the Airport to lease unto Lessee certain privi-
leges, rights, uses and interests therein, as hereinafter set
out; and
WHEREAS, Lessee proposes to lease on a generally net basis
from Lessor certain ground space, and to avail itself of
certain privileges, uses and rights pertaining thereto; and
WHEREAS, Lessee further proposes to make certain improve-
ments on the ground demised hereunder; and
WHEREAS, Lessee has indicated a willingness and ability to
properly keep, maintain, and improve said premises in accordance
with standards established by Lessor, if granted a lease of
sufficient term on said ground area; and
WHEREAS, Lessor and Lessee now desire to execute a lease
of an area of land at Meacham Field providing for the construc-
tion of aviation-related improvements thereon, (�
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NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS :
ARTICLE I.
That for and in consideration of the terms, conditions and
covenants of this Lease to be performed by Lessee, all of which
Lessee accepts, Lessor hereby leases to Lessee and Lessee hereby
hires from Lessor certain property, together with any improvements
thereon (hereinafter called "demised premises") , and certain
attendant privileges, uses and rights, as hereinafter specifically
set out.
A. DESCRIPTION OF PREMISES DEMISED. The demised premises
are as described in field notes marked Exhibit "A" and outlined
in red on the plat marked Exhibit "B", both Exhibits being
attached hereto apd incorporated herein for all purposes incident
to this agreement,
B. DESCRIPTION Of GENERAL PRIVILEGES, USES AND RIGHTS,
Lessor hereby grapts to j,essee the following general privileges,
uses and rights, in common with others, all of which shall be
subject to the terms, conditions and covenants hereinafter set
forth and all of which shall be non-exclusive on the Airport:
(1) The use in common with the public generally of
all public airport facilities and improvements
which are now or may hereafter be connected with or
appurtenant to said Airport, except as hereinafter
provided, to be used by Lessee for commercial or
non-commercial aviation activities and fixed
base operations, and all activities in connection
with or incidental to said business or operation,
as herein defined.
For the purpose of this Lease, "Public airport
facilities" shall include all necessary landing
area appurtenances, including, but not limited to,
approach areas, runways, taxiways, public aprons,
public automobile parking areas, public roadways,
public sidewalks, navigational and avigational
aids, lighting facilities, public terminal facili-
ties or other public facilities appurtenant to
said Airport.
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(2) The right of ingress to and egress from the demised
premises over and across public roadways serving
the Airport for Lessee, its agents and servants,
patrons and invitees, suppliers of service and
furnishers of material.
(3) Said rights above shall be subject to such
ordinances, rules and regulations as now or
may hereafter have application at the Airport.
C. DESCRIPTION OF SPECIFIC PRIVILEGES, USES AND RIGHTS.
In addition to the general privileges, uses and rights herein-
above described and without limiting the generality thereof,
Lessor hereby grants to Lessee the right to engage in commercial
aviation activities, as defined in Paragraph D below, subject to
the conditions and covenants hereinafter set out.
D. DEFINITION OF COMMERCIAL AVIATION ACTIVITIES AND
FIXED BASE OPERATION. "Commercial Aviation Activities
and Fixed Base Operation" are hereby defined as those activities
which involve the sale pf aviation services for profit to the
general public. Said aviation services shall include:
(1) The loading and unloading of aircraft in any lawful
activity as incidental to the conduct of any services
or operations outlined in this paragraph.
(2) The maintenance, repair and storage of aircraft,
which shall include overhauling, rebuilding, re-
pairing, inspection and licensing of same, and the
purchase and sale of parts, equipment and accessories
therefor.
(3) The operation of a business of buying and selling
aircraft and parts and accessories therefor, and
aviation equipment of all descriptions either at
retail, wholesale or as dealer.
(4) The training on the Airport of personnel in the
employ of Lessee and/or Lessee's tenants and sub-
lessees and the training on the Airport of members
of the general public as students, or otherwise
in any art, science, craft or skill pertaining
directly or indirectly to aircraft.
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(5) The location, construction, erection, maintenance
and removal of improvements, in any lawful manner,
upon or in the demised premises for the purpose of
carrying out any of the activities provided for
herein, subject, however, to the conditions herein
generally or particularly set forth.
(6) The operation and sale of sightseeing service.
(7) The operation and sale of aerial survey, photography
and mapping services.
(8) The operation of non-scheduled air taxi and
charter transportation of passengers.
(9) The operation of schools for the instruction of
flying, navigation, mechanics, aerial survey,
photography, aircraft design, theory and con-
struction.
(10) The renting and leasing of space in hangars to be
constructed hereunder for the private storage of
aircraft on a daily, weekly, monthly, or annual
basis.
(11) Subject to the prior written approval of Lessor,
the undertaking of any phase of aviation activity
in any Way contributing to air transportation or
aerial navigation.
E. CONDITIONS do PRANTING LEASE. The granting of th#s
Lease is conditioned upon the following covenants;
(1) That the right to use said public airport facilities
as well as any and all of Lessee 's rights hereunder
shall be exercised only subject to and in accordance
with the laws of the United States of America, the
State of Texas, and the City of Fort Worth; the rules
and regulations promulgated by their authority with
reference to aviation and air navigation; and all
applicable rules and regulations and ordinances of
Lessor now in force or hereafter ordained or promul-
gated.
(2) That Lessee will not, on the grounds of religion, race,
color or national origin, discriminate or permit discrimin-
ation against any person or group of persons in any
manner prohibited by Federal Aviation Administration
regulations.
ARTICLE II
OBLIGATIONS OF LESSOR
A. CLEAR TITLE. Lessor covenants and agrees that at and
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until the granting of this Lease it is well seized of the leased
premises and has good title thereto, free and clear of all liens
and encumbrances having priority over this Lease; and that Lessor
has full right and authority to lease the same as herein set forth.
Lessor further covenants that all things have happened and
been done to make its granting of said Lease effective and Lessor
warrants to Lessee peaceful possession and quiet enjoyment of
the leased premises during the term hereof, upon performance of
Lessee's covenants herein.
B. OPERATION AS A PUBLIC AIRPORT. Lessor covenants and
agrees that during the term of this Lease it will operate and
maintain the Airport and its public airport facilities, as
defined hereinabove, as public airport consistent with and pur-
suant to the Sponsor's Assurances given by Lessor to the United
States Government through the Federal Airport Act.
C. CONDITION ANP MAINTENANCE OF PREMISL•'S. Upon execution
of this agreement, Lessor shall assume no further responsibility
or liability as to the condition of all the premises demised here-
under and shall not assume responsibility or liability for main-
tenance, upkeep, or repair necessary to keep said premises in a
safe and serviceable condition.
ARTICLE III
OBLIGATIONS OF LESSEE
A. NET LEASE. Except as herein specifically provided,
the use and occupancy of the demised premises by Lessee shall
be without cost or expense to Lessor. It shall be the sole
responsibility of Lessee to keep, maintain, repair and operate
the entirety of all the premises leased hereunder and all im-
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provements and facilities thereon at Lessee's sole cost and expense.
B. CONDITION OF PREMISES. Lessee accepts all the premises
demised hereunder in their present condition, and, without ex-
pense to Lessor, will repair and maintain any installation thereon,
and remove or cause to be removed any debris to the extent required
to keep said premises in a neat and presentable condition at all
times.
C. OBLIGATION TO CONSTRUCT. Lessee shall provide for
the location, construction, erection and maintenance of improve-
ments upon the demised premises for the purpose of carrying out
the activities provided for herein. Said improvements shall
include:
Construction on the leased premises described in
Exhibit "A" and shown on Exhibit "B" attached
hereto, said construction to consist of one colored,
all metal, two-bay hangar with a minimum of Eighteen
Thousand (18,000) square feet of building space, with
dimensions of 150 feet x 120 feet, with a concrete
floor, aircraft parking ramp, and taxiway connecting
the aircraft parking ramp to the general taxiway or
runway.
All plans and specifications for the construction of building
and improvements and other facilities (including landscaping)
contemplated hereunder shall be prepared as hereinafter set out
and shall require the written approval of Lessor before any con-
struction or installation may be undertaken.
D. MINIMUM IMPROVEMENT STANDARD. As part of the consider-
ation herefor, Lessee further covenants and agrees:
(1) That it shall construct said hangar
facilities on a portion of the leased
premises described in Exhibit "A" and
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shown on Exhibit "B", and that said hangar
will be a minimum of Eighteen Thousand
(18,000) square feet of building space;
and that Lessee will expend on such con-
struction an estimated sum of Two Hundred
Thousand and N01100 Dollars ($200,000.00) .
(2) That it shall construct on a portion of the
premises hereby demised an aircraft parking
ramp and taxiway connecting the aircraft
parking ramp to the general taxiway or runway.
Such aircraft parking ramp and taxiway shall
be paved at Lessee's sole expense and shall
be constructed in accordance with the Lessor's
specifications, subject to Lessor's inspection
and approval.
E. SUBMISSION OF PLANS. Within ninety days after the
approval of this Agreement by the City Council of the City of
Fort Worth, Lessee shall submit to Lessor final plans and
specifications for the construction of the improvements and
facilities contemplated hereunder. All plans, specifications
and work shall be subject to the approval of the Director of
Public Works and must conform to all local, State and Federal
codes, laws, ordinances and regulations now in force or here-
after prescribed by authority of law. Lessee shall at its sole
cost and expense obtain all necessary licenses and permits.
F. CONSTRUCTION SCHEDULE. All construction shall be
completed by June 1, 1978.
Upon completion of construction, title to all permanent
improvements shall vest in Lessor. All other improvements, of
a non-permanent nature, and all trade fixtures, machinery and
f urrishings made or installed by Lessee may be removed from the
leased premises at any time by Lessee except as otherwise
provided in this Lease.
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G. MAINTENANCE. Lessee shall, at its sole cost and
expense, maintain all the premises demised hereunder and the
improvements and appurtenances thereto in a presentable con-
dition consistent with good business practice in a safe, neat,
sightly and good physical condition. Lessee shall repair all
damages to said premises caused by its employees, patrons, or
its operation thereon; shall maintain and repair all equipment
thereon, including any drainage installations, paving, curbs,
islands, buildings and improvements; and shall repaint and
reglaze its own buildings and facilities as necessary.
Lessee agrees that in the event it shall become necessary
to make changes within the area covered by this Lease of
plumbing, any wiring or similar installations, Lessee will
promptly make such changes and installations at its sole expense,
subject to the approval. pf Lessor and in accordance with all
applicable Federal.,' Pfate and municipal laws or regulations,
Lessor in its reasonable discretion shall be the sole judge
of the quality of maintenance. Upon written notices by Lessor
to Lessee, Lessee shall be required to perform whatever main-
tenance Lessor deems necessary. If such maintenance is not
undertaken by Lessee within ten (10) days after receipt of
written notice, Lessor shall have the right to enter upon the
demised premises and perform such maintenance, the cost of
which shall be borne by Lessee.
H. COMMERCIAL AVIATION OPERATIONS BY LESSEE. Lessee
agrees that any commercial aviation operations on the premises
shall be conducted in a proper, efficient and courteous manner.
Lessee agrees to promote aviation activity on the Airport.
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Lessee further agrees that all said services shall be
furnished on a fair, equal and non-discriminatory basis to
all users thereof, and that only fair, reasonable and non-
discriminatory prices for each unit of sale or service will
be charged.
I. UTILITIES. Lessee shall assume and pay for all costs
or charges for utility services furnished to Lessee during the
term hereof. Lessee shall have the right to connect to any
and all storm and sanitary sewers and all water and public
utilities at its own cost and expense, and Lessee shall pay
for any and all service charges incurred therefor.
J. TRASH, FIRE EXTINGUISHERS, ETC. Lessee shall provide
a complete and proper arrangement for the adequate sanitary
handling and disposal aw4y from the Airport of all trash,
garbage, and other refuse caused as a result of the operation
of its business. Lesaae shall provide and use suitable covered
metal receptacles for all such garbage, trash and other refuse.
Piling of boxes, cartons, barrels or other similar items in an
unsightly or unsafe manner on or about the demised premises
shall not be permitted.
Lessee shall also provide and maintain in proper condition
readily accessible fire extinguishers in a number and of a type
approved by fire underwriters for the particular hazard involved.
K. SIGNS. Lessee shall not maintain upon the outside of
any improvements or elsewhere on the demised premises any bill-
boards or advertising signs without the prior written consent
of the Airport Manager. Flashing lighted signs shall be pro-
hibited.
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L. FIELD USE CHARGES. Nothing herein shall be deemed to
relieve Lessee and its tenants, sublessees, patrons, invitees,
and others from such field use charges, including fuel flowage
fees, as are levied generally by Lessor directly or indirectly
at the Airport.
M. PREFERENCE LIEN. Lessee hereby gives, grants and
pledges unto Lessor a contractual preference lien upon all
property, tangible or intangible, and property rights be-
longing to Lessee now or at any time hereafter placed in or
upon the demised premises to secure the prompt payment of all
rentals and fees and the performance of any or all covenants
and obligations to be kept and performed by Lessee hereunder.
ARTICLE IV
TERM OF LEASEHOLD
A. TERM. The term of this lease shall be for a period
of thirty (30) years commencing February 1, 1978, and ending
January 31, 2008. If Lessee exercises and performs all of its
duties and obligations hereunder during the term hereof, then
upon applying in writing not less than six months nor more
than nine months before the end of the said term, Lessee shall
have the first right of refusal to execute a new lease of the
demised premises for two additional consecutive five-year per-
iods, with each lease for such additional period to be on such
terms and conditions as Lessor may prescribe and with the ren-
tals provided for therein to be based on rental rates of com-
parable properties at Meacham Field at the time of the execu-
tion of each additional lease agreement. Any increase in
said rental payments shall not exceed ten percent (10%) of the
rental amount theretofore payable under the then expiring lease
agreement.
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ARTICLE V
A. GROUND RENTAL. As annual ground rental for the
ground area leased hereunder, as described in Exhibit "A"
and shown on Exhibit "B" attached hereto, said area containing
a total of Forty-Two Thousand, Two Hundred Fifty-Three (42,253)
square feet, Lessee shall pay to Lessor Eight (8) cents per square
foot per year for an annual rental of Three Thousand, Three
Hundred and Eighty and 24/100 Dollars ($3,380.24) for each year
of the term of this agreement. Rental payments shall commence on
June 1, 1978.
B. ADJUSTMENT OF RENTALS. Upon written notice from Lessor
to Lessee delivered within 30 days prior to the end of each five
(5) year period during the term of this Lease, Lessor shall have
the right but not the duty to adjust the ground rental payable
hereunder to conform same to rentals then prevailing at the
airport for comparable ground space, any increase in ground rental
not to exceed ten percent (10%) of the amount theretofore payable
under the then expiring five (5) year period.
C. TIME OF PAYMENT. All rentals shall be paid monthly in
advance, in amounts each month equal to one-twelfth (1/12) of the
annual rental, the first payment in the amount of Two Hundred
Eighty-One and 69/100 Dollars ($281.69) being due on or before
the first day of June 1978, and a like payment shall be due on
or before the first day of each successive month thereafter during
the term hereof.
ARTICLE VI
INSURANCE AND INDEMNIFICATION
A. FIRE INSURANCE. During the full term of this Lease,
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Lessee shall, at its sole cost and expense, cause all improve-
ments constructed in the demised premises to be kept insured
to the full insurable value thereof against the perils of
explosion, fire and like perils.
Said insurance shall be procured from a company authorized
to do business in the State of Texas and satisfactory to Lessor,
and Lessee shall provide evidence satisfactory to Lessor that
such coverage has been procured and is being maintained.
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 in the opinion of Lessor.
Property insurance policies required by this paragraph
shall contain waiver of subrogation endorsements and shall con-
tain a provision that no change, cancellation or renewal of
such insurance shall take effect until at least 30 days after
notice thereof in writing has been delivered to Lessor.
B. INDEMNIFICATION. Lessor shall stand indemnified by
Lessee as herein provided. Lessee is and shall be deemed to
be an independent contractor and operator responsible to all
parties for its respective acts or omissions, and Lessor shall
in no way be responsible therefor. Lessee covenants and
agrees to indemnify, hold harmless and defend Lessor, its officers,
agents, servants or employees from and against any and all claims
or suits for damages or injury, including death, to any and all
persons or property, of whatsoever kind or character, arising out
of or incident to the leasing of or the use, occupancy, or main-
tenance of the premises by Lessee, its officers, agents, employees,
patrons, contractors, subcontractors, licensees or invitees; and Lessee
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does hereby assume all liability and responsibility for any
and all claims or suits for damages or injuries, including
death, to any and all persons or property, of whatsoever kind
or character, whether real or asserted, occurring during the
term of this lease in connection with the use, occupancy or
maintenance of the premises by Lessee, its officers,agents,
employees, patrons, contractors, subcontractors, licensees or
invitees. Lessee shall pay promptly when due all bills or
charges for construction or maintenance as well as any other
amounts due for material, services and labor furnished in
connection herewith, and shall indemnify Lessor for non-payment of
same. Lessee shall indemnify Lessor against any and all mechanics
and materialmen's liens pr any other type of claims or lienp
imposed upon the premises demised hereunder arising as a result
of Lessee's conduct or ipactivity.
Lessee shall promptly, after the execution of this Lease,
provide public liability insurance for personal injuries/death
growing out of any one accident or other cause in a minimum sum
of One Hundred Thousand Dollars ($100,000.00) for one person
and Three Hundred Thousand Dollars ($300,000.00) for two or more
persons; and shall provide property damage liability insurance
in a minimum sum of Three Hundred Thousand Dollars ($300,000.00) for
property damage growing out of any one accident or other cause .
Lessee shall maintain said insurance with insurance under-
writers authorized to do business in the State of Texas and
approved by Lessor. Lessee shall furnish Lessor with a certificate
from the insurance carrier showing such insurance to be in full
force and effect during the entire term of this Lease, or shall deposit
with the Lessor copies of said policies.
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Said policies or certificates shall contain a provision
that written notice of cancellation or of any material change
in said policy by the insurer shall be delivered to Lessor
thirty (30) days in advance of the effective date thereof.
ARTICLE VII
CANCELLATION ASSIGNMENT AND TRANSFER
A. CANCELLATION BY LESSOR. This Lease shall be subject
to cancellation by Lessor in the event Lessee shall:
(1) Be in arrears in the payment of the whole or any
part of the amounts agreed upon hereunder for a
period of fifteen (15) days after the time such
payments become due.
(2) Make a voluntary or involuntary assignment for the
benefit of creditors.
(3) File a Voli4ntary petition in bankruptcy.
(4) Abandon the demised premises.
(5) Fail to replace any improvements by Lessee
which have been destroyed by fire, explosion,
etc., within six (6) months from the date of
such destruction, or,
(6) Default in the performance of any of the
covenants, and conditions required herein.
In any of the aforesaid events, Lessor may forcibly, if
necessary, re-enter and take immediate possession of the demised
premises and remove or seize Lessee's effects under the preference
lien granted to secure performance of Lessee's obligations here-
under without being deemed guilty of any nature of trespass.
This lease, or a copy hereof, shall be sufficient warrant for
any person. Upon re-entry by Lessor under this paragraph, this
Lease shall terminate. All rental due hereunder shall be payable
to said date of termination.
Failure of Lessor to declare this Lease terminated upon
the default of Lessee for any of the reasons set out shall not
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operate to bar or destroy the right of Lessor to cancel this
Lease by reason of any subsequent default or violation of the
terms hereof.
B. ASSIGNMENT AND TRANSFER. This Lease shall not be
assigned in whole or in part by Lessee without the prior
written consent of Lessor, and any attempted assignment with-
out such prior written consent shall be void.
C. SUSPENSION OF LEASE. During the time of war or
national emergency, Lessor shall have the right to lease the
landing area of any part of said Airport to the United States
Government for military or naval use. If any such lease is
executed, any provisions of this instrument which are incon-
sistent with the provisions of the lease to the Government
shall be suspended. Nothing contained in this lease shall
prevent Lessee from pursying any rights which Lessee may
have for reimbursement from the United States Government for
the taking of any part of this leasehold or for any loss or
damage caused to Lessee by the United States Government.
ARTICE VIII
RIGHTS UPON TERMINATION
A. PERSONAL PROPERTY. Upon termination of this Lease
other than under Article VII A hereof, Lessee shall immediately
remove all personal property from the demised premises and
return the premises and improvements thereon to Lessor in
a good state of repair. Any property remaining on the premises
after termination shall, at Lessor's sole option, become the
property of Lessor or same may be removed and/or disposed of
in any manner deemed appropriate by Lessor. Lessor shall not
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be liable in any manner for such removal and/or disposal; and
the cost and expense of such removal and/or disposition shall
be paid by Lessee.
ARTICLE IX
GENERAL PROVISIONS
A. CONCESSIONS EXCLUDED. It is specifically agreed and
stipulated that the following concessions and the establishment
thereof are excluded from this Lease, to wit:
(1) Ground transportation for hire.
(2) Auto rental.
(3) Food sales.
(4) News and sundry sales.
(5) Barber and valet service.
(6) Alcoholic beverages.
(7) Aviation fuel sales.
B. ATTORNEY'S FEES. In any action brought by Lessor for
the enforcement of the obligations of Lessee, Lessor shall be
entitled to recover interest and reasonable attorney's fees.
C. TAXES. Lessee agrees to pay any taxes or assessments
which may be lawfully levied against Lessee's occupancy or use
of the demised premises or any improvements or property placed
thereon as a result of Lessee's occupancy.
D. SUBORDINATION OF LEASE. This Lease shall be subor-
dinated to the provisions of any existing or future agreement
between Lessor 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 to the expenditure
of Federal funds for the development of the Airport.
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E. PARAGRAPH HEADINGS. The paragraph headings contained
herein are for the convenience in reference and are not intended
to define or limit the scope of any provision of this lease.
F. NOTICES. Notices to Lessor provided for herein shall
be sufficient if sent by certified mail, postage prepaid, addressed
to Airport Manager, Fort Worth Municipal Airport, Meacham Field,
Fort Worth, Texas, and notices to Lessee if sent by certified
mail, postage prepaid, addressed to Marshall R. Young Oil Co.,
%W. K. Young, President, Meacham Field, Fort Worth, Texas, or to
such other addresses as the parties may designate to each other
in writing from time to time.
G . SUCCESSORS AND ASSIGNS. All of the terms, covenants,
and agreements herein contained shall be binding upon and shall
inure to the benefit of successors and assigns of the respective
parties hereto.
H. VENUE. The venue of any action brought on this contract
shall lie in Tarrant County, Texas.
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EXECUTED at Fort Worth, Tarrant County, Texas, this 2 V' day
of 1978.
ATTEST: CITY OF FORT WORTH, LESSOR
C 'ty Secretary City Manager
r ,
APPROVED AS TO FORM AND LEGALITY
V
City Attorney MARSHALL R. YOUNG OIL CO. , LESSEE
ATTEST: By: A A-e-'t,
W. K. Y ng, P esident
Secretary
!iITI' CiV D DY CI'CY CGUPICIL
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Ci�y Secretary
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