HomeMy WebLinkAboutResolution - 3877 - Settlement Agreement - Currey Enterprises Inc - Cause # 91-534,690 - 05_07_19921 Resolution No. 3877
' May 7, 1992
Item #4
RESOLUTION
WHEREAS, a settlement was reached by and between the City of Lubbock
and Currey Enterprises, Inc. in cause no. 91-534,690 pending in the 237th
District Court of Lubbock County, Texas; and
WHEREAS, said settlement was reached between meetings of the City
Council; and
WHEREAS, it was necessary for the Mayor to execute said settlement
agreement prior to April 30, 1992; and
WHEREAS, it is necessary to obtain Council ratification of the action
of the Mayor; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the signature of the Mayor affixed to that certain agreement
attached hereto as Exhibit "A" and made a part hereof for all purposes, is
hereby ratified by the City Council of the City of Lubbock.
Passed by the City Council this 7th day of May 1992.
1��c IN , MAYOR
ATTEST:
APPROVED AS TO CONTENT:
Kern Case, Director o Aviation
APPROVED AS TO FORM:
Ao � o� ss, Jr. ,� tty Attorney
JCR:da/AGENDA-D 1/ACURREY.ces
Resolution No. 3877
� of May 7, 1992
Item #4
SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS
This Settlement Agreement and Release of all Claims
(hereinafter referred to as "Agreement") is entered into this date
by and between CURREY ENTERPRISES, INC., d/b/a BUDGET RENT -A -CAR
and LES CURREY and LOIS CURREY, individually, (hereinafter referred
to as "Plaintiff") and the CITY OF LUBBOCK (hereinafter referred to
as "City") and BERN CASE, DIRECTOR OF AVIATION (hereinafter
referred to as "Case", both of whom will be collectively referred
to herein as "Defendants").
WHEREAS, Plaintiff and the City have previously entered into
a Lease Agreement dated July 26, 1989 (hereinafter referred to as
the "Lease"). A true and correct copy of said Lease is attached
hereto marked Exhibit "A" and is incorporated herein by this
reference as if copied herein in full.
WHEREAS, Plaintiff, pursuant to the Lease, has had a rent car
office, parking, and a service or maintenance facility located on
the premises of the Lubbock International Airport from that time to
the date of the execution of this Agreement.
WHEREAS, pursuant to the Lease, the City attempted to perform
an audit of the books and records of Plaintiff beginning in
February, 1991. This audit led to the controversies between
Plaintiff and Defendants, which controversies resulted in the
filing of a suit in the 237th District Court of Lubbock County,
Texas, styled Currey Enterprises, Inc., d/b/a Budget Rent-A-Car vs.
City of Lubbock and Bern Case, Director Of Aviation, which suit is
now pending in said court (hereinafter referred to as the "Suit" or
the "Suit Referred To Above").
WHEREAS, Plaintiff and the Defendants have agreed to this
Agreement as a full and complete settlement and compromise of all
matters arising out of or that could arise out of the matters set
forth in the Suit Referred To Above and in full and complete
satisfaction of all causes of action owned and held by either
party, Plaintiff or Defendants, arising out of the Lease, except as
may be reserved herein.
WHEREAS, Plaintiff and Defendants desire that Plaintiff remove
itself on or before April 30, 1992, from all the Lubbock
International Airport facilities held by Plaintiff pursuant to the
Lease. Such removal shall be in strict compliance with all the
terms and conditions of the Lease as may be modified herein and
that all the terms and conditions of the Lease as modified herein
will be complied with by both Plaintiff and Defendants.
WHEREAS, the Suit Referred To Above and all claims and causes
of action set forth therein will be dismissed with prejudice with
each party being responsible for its own attorney's fees and costs
incurred by it in connection with said Suit.
NOW, THEREFORE, for adequate consideration received, the
undersigned agree as follows:
1. CONSIDERATION. The consideration for this Agreement is as
follows:
A. The termination of the Lease according to its terms
and conditions, as modified by this Agreement, on April 30, 1992,
with neither party having nor claiming any right to renew, extend
or enter into a new Lease Agreement concerning the lease of any
space on Lubbock International Airport property.
B. The removal by April 30, 1992, of Plaintiff from all
space located currently by Plaintiff on Lubbock International
Airport property, including but not limited to, rental offices,
administrative offices, parking and maintenance and service
facilities. All such removal shall be pursuant to the terms and
conditions of the Lease as may be modified herein.
C. The dismissal with prejudice of all claims and
causes of action now pending in the Suit Referred To Above.
D. The mutual release of all claims, set forth later
herein, releasing the parties from any and all claims arising out
of the Lease and its termination as set forth herein.
E. The payment by each party of its own costs and
expenses incurred in the prosecution and defense of the Suit
Referred To Above and in the preparation and finalization of this
Agreement. _a
2. RELEASE OF ALL CLAIMS BY PLAINTIFF. Defendants are
hereby completely and forever compromised, settled and released
from all matters, actions, claims, causes of action, and
liabilities of any and all kinds whatsoever which are referred to
in the Suit Referred To Above and arising out of the Lease, the
termination of the Lease and the Suit Referred To Above and all
matters and things which could have been raised arising out of the
Lease, the termination of the Lease, and the Suit Referred To
Above, both known and unknown. Plaintiff does hereby release,
acquit and forever discharge Defendants, their employees,
associates, agents, representatives, officers, or any of them, and
any person or party in privity with Defendants from any and all
actions, causes of action, damages, claims and liabilities of any
and all kinds whatsoever arising out of or to arise out of the
claims of Plaintiff arising out of the Lease, the termination of
the Lease, and the Suit Referred To Above, said actions, causes of
action, damages, claims and liabilities, including but not limited
to, or arising out of or to arise out of any claim, action, cause
of action or allegation made or that could have been made by
Plaintiff against Defendants, or any agent, employees,
representative, or officer of Defendants, or any of them, or
against any person or any of them, or against any person or party
in privity with Defendants.
3. RELEASE OF ALL CLAIMS BY DEFENDANTS. Plaintiff is
hereby completely and forever compromised, settled, and released
from all matters, actions, claims, causes of action, and
liabilities of any and all kinds whatsoever which are referred to
in the Suit Referred To .Above and arising out of the Lease, the
termination.of the Lease and the Suit Referred To Above, and all
matters and things which could have been raised arising out of the
Lease, the termination of the Lease and the Suit Referred To Above,
both known and unknown. Defendants do hereby release, acquit and
forever discharge Plaintiff, its employees, associates, agents,
representatives, officers and directors, or any of them, and any
person or party in privity with Plaintiff, or any of them, from any
and all actions, causes of action, damages, claims and liabilities
of any and all kinds whatsoever arising out of or to arise out of
the claims of Defendants arising out of the Lease, the termination
of the Lease, and the Suit Referred To Above, said actions, causes
of actions, damages, claims and liabilities, including but not
limited to, or arising out of or to arise out of any claim, action,
cause of action or allegation made or that could have been made by
Defendants against Plaintiff, or any agent, employee,
representative, or officer of Plaintiff, or any of them, or against
any person or any of them, or against any person or party in
privity with Defendants.
4. RESERVED CLAIMS. Notwithstanding anything
herein to the contrary or apparently to the contrary, there is
specifically reserved herein the rights of the parties arising out
of the termination of the Lease insofar as such matters may
relate to the continued payment to the City by Plaintiff of all
rentals due and owing to the City for March, 1992, April, 1992,
and through the actual removal by Plaintiff from the Lubbock
International Airport, which removal shall take place not later
than 12:00 o'clock p.m. April 30, 1992. City further reserves
the right to assert a claim for any damage to property caused
by Plaintiff's removal from the premises. Also reserved
herein are Plaintiff's rights to sell its interest in a certain
service building pursuant to the terms and conditions of
the Lease as it may be modified by this Agreement. Also reserved
and granted to the City is the right to require that Plaintiff
provide paid receipts for the construction of the counter located
at the rental office in the Lubbock International Airport and that
if such receipts be provided and the counter not be permanently
attached to the premises, that in that event, Plaintiff will be
allowed to remove the counter from the airport premises. If such
receipts not be provided or if such counter be permanently
attached, in either event, such counter shall remain at the airport
premises and shall become the property of the City.
5. MODIFICATION'OF LEASE. -- The parties do hereby ratify and
confirm the Lease according to all of its terms and conditions,
except that the parties do hereby agree that the following
additional provisions shall be added to Article Six D. As set
forth in the Lease, Plaintiff shall have the right to negotiate for
a third party to purchase Plaintiff's interest in the service
building constructed by Plaintiff on Lubbock International Airport
property. The parties agree that Plaintiff will set its asking
price for such service building within thirty (30) days of
Plaintiff's receipt of notice by a third party of third party's
interest in such service building. Plaintiff further agrees that
if Plaintiff and third party are unable to negotiate the purchase
by third party of the service building, that Plaintiff will, within
ten (10) days of receipt of notice from third party of third
party's refusal to purchase Plaintiff's interest in the service
building at Plaintiff's offered price, Plaintiff will designate an
appraiser or appraisers pursuant to the provisions of Article
Six D 2 of the Lease. All other terms and conditions of the Lease
shall remain in full force and effect, except as modified by this
paragraph.
6. COMPLIANCE WITH LEASE TERMS THROUGH DATE OF VACANCY. The
parties agree to comply with all the terms and conditions of the
Lease, as modified herein, through and including the vacating of
the leased premises by Plaintiff.
7. NO FURTHER AGREEMENT. The parties do hereby agree and
warrant it to be a fact that in making this settlement, they are
acting of their own free will and voluntarily and are in no way
relying upon any promise, warranty, representation or agreement of
any kind whatsoever, made directly or indirectly, by any agent,
employee, lawyer, officer, director, other party or representative
of either party, or of any person or party in privity with them,
and not set out herein, and they do understand and agree that this
is a full, final and complete settlement and release of any and all
claims of every kind and character whatsoever, both known and
unknown, and held by either party against the other party, or their
agents, employees, representatives, officers, directors, or any of
them, or any person or party in privity with them, and they
understand that they will never be able to assert any further claim
or cause of action against the other party, or against any agents,
employees, representatives, officers or directors of the other
party, or any person or party in privity with the other party,
arising out of or to arise out of the occurrences, allegations,
actions, causes of actions or claims set forth or described herein
or alleged above herein, SAVE AND EXCEPT those reserved claims
specifically set forth herein.
8. NON -ADMISSION. The parties do further understand and
agree that this settlement is being made solely for the purpose of
making peace and to avoid further litigation and expense and that
in making this settlement, they are not admitting any liability but
to the contrary, liability is expressly denied.
9. UNDERSTANDING RELEASE. The parties do further warrant
and represent that they have read the above and foregoing
Settlement Agreement and Release of All Claims and every word of it
and do understand that it is a full, final and complete settlement
and release of all claims held, owned or possessed by them against
the other party or any agents, officers, directors, representatives
ff
or employees of the other party or any person or party in privity
with the other party, SAVE AND EXCEPT those reserved claims
specifically set forth herein.
10. CONSULTATION WITH COUNSEL. The parties do further
warrant and represent that they consulted with attorneys of their
own choice and selection and is entering into this settlement
Agreement and Release of All Claims after making a full and
complete investigation into the facts as set forth above herein, as
well as into the nature and extent of the injuries and damages
sustained in connectiori-,with said facts and they do further warrant
and represent that they are not relying upon any statement,
representation, or agreement not set forth herein. The parties do
further warrant and represent that they have been represented by
attorneys of their choice and selection and that they have been
fully advised of all legal rights and after having been so advised
enter into this Settlement Agreement and Release of All Claims
acting upon their own judgment exclusively.
11. ENTIRE AGREEMENT. This Settlement Agreement and Release
of All Claims represents the entire agreement of the parties and no
change, modification, or amendment thereto will be valid unless
evidenced by an instrument in writing signed by the parties.
12. BINDING EFFECT. This Settlement Agreement and Release
of All Claims shall be binding upon the undersigned, their personal
representatives, heirs, successors and assigns.
13. GOVERNING LAW AND PERFORMANCE. This Settlement
Agreement and Release of All Claims shall be governed by the laws
of the State of Texas and shall be deemed to be executed in and
performance called for in Lubbock, Lubbock County, Texas.
SIGNED and AGREED TO this ��day of 1992.
ATTEST-
LqvJs Currey, Secretary
(� ST:
'Ra ette Boyd, City Secretary
I
PLAINTIFF
CURREY ENTERPRISES, INC., d/b/a
BUDGET RENT -A -CAR
By
Currey, Press
CITY OF LUBBOCK
By/XJ7.�
B. C. "Peck" McMinn, Mayor
zll,�-
Bern Case
APPROVED AS TO FORM AND CONTENT:
J. EDWIN PRICE, P.C.
2301 Broadway
Lub ock, Te 79401
Telene: (80W 763-5626
By.
J. c win Price
St to ar No. 16300300
AT ORN Y FOR PLAINTIFF
CITY OF LUBBOCK
JOHN C. ROSS, JR.
CITY ATTORNEY
STATE BAR NO. 17303000
HAROLD WILLARD
ASSISTANT CITY ATTORNEY
STATE BAR NO. 21504200
Post Office Box 2000
Lubbock, Texas 79457
Telephone: (806) 767-2222
Telecopy: (8 762-3623
BY --��
ennis . McGill
Trial Attorney
State Bar No. 13627000
CRENSHAW, DUPREE & MILAM, L.L.P.
Post Office Box 1499
Lubbock, Texas 79408
Telephone: 806/762-5281
Telecopy: 806/762-3510
XG71-��-c___
William Wade
State Bar No. 20642000
ATTORNEYS FOR DEFENDANTS
Attachments:
Exhibit "A" - Lease Agreement
JMc, L/w/U-.CumyXW/ApA = 1992
5
�....�� Exhibit A
-Q Ck n_ :1 — N BY T:`S- PAS=, _S:
coM.T_' CF II;B:-CC.--, g
e7tered into by t' e City o` ?uibock (:e-s�-e=
•;. " to he_e_. as CI I) , a Fece Rule �-:_c__ 21ity of ?whack Co•_-. : ,
^erasa-d �F G E!' SE NG (re`_erred to herein
, as
n _ -
LESS
•n =�5, C_--.-Y O:.-..1s, controls a=d c=erates t__e T -- cc{
1.__ jars (referred tz here 'r. as s_. _a. a_
at Rc_te 3, Lr hock, Luzbock Cou-.=•:, Texas, a-nd _assesses t`_e
a::t_`_..__ty to ^•ar_t ce__—_a=_. __c*- =s Z-_ _ rivile;es
res: ect `hereto, including those here_.after set =or =h; and
a_=.,_=bile rental =e= r_c=s at the are a-.
_._s ^-al = a== of the necessary a: _._— =_ s for ground tra.-s-
_ rovided =cr passengers a_—_: _ a= an= ce_ a= `=cn
_e _ rcrction and ds-: e_=enz of air cc_.erce a:_d
**=SS= desires to -._a.,:e s=___ a: chile rental
se- ices ava_la _e at the _s __a=_fie= and has _
=o : erfc__ sa_,. services z a =_-p said fac=litres
fc_ -sa :n cc-`.ec=ic.. ..: erevith, a_-_ =_.rer desires to lease
cer=a_n s:ace and obtain certain ___ =s and __iv`_?eves with
• res_ ecz to the c_eraticn of a re-=->_-=�'r service at said a_?
i:_=cn _e =er--s and car_ditions here_.a=Ter rcvide^ "
for and in cc:-s_dera=_cn of `,=e nut, -al '
prz=:ses, ecvena_-=s, to—s and c=. ;eneral and
Y • f
special, as hereinafter set forth, CITY hereby c�-ants to LSSEE
the rights and privileges hereinafter described; LESSEE agrees to
accept the duties, responsibilities and obligations as herein-
after set fobh, and the parties hereto, for the=selves, their
successors and assigns, agree as follows:
: ART_CL O`r
LEASE OF DESCR_?-T) oR=uTSES
CITY, upon mutual execution of this agree=ert, does lease
and demise to T.=SSEE upon the terns and conditions contained
erein, the following premises located at the A=?.-ORT:
A. —_-_-r rT`_TAL - A description of this location is shc-.-n on
"Exhibit All, which Exhibit is attached to -__is
Lease Agreement and incorporated herein.
B. GRC� -ND - A description of this location, if applicah_e, is
7.
shown on "Exhibit 3", which=rh=:it is attar red -
to this Lease Agreement and incorporated he_e_,.
C. C=CS=-='_T V=:ICT P;URKING ??.15 -
"A description of these locations are shown on
nrxhibit C", whir: =-" J t is attac hed to ttis
Lease Agreement and incorporated here=n.
AF"=C_ TWO
TERM
7-1:e initi'al tern of this lease shall begin on the 1st day of
May 1989, and terminate on the 30th day of April, 1992.
_• Upon -r_i-ten application of Z=SS=?, delivered to the office
of the Director of Aviation of CIT' prior to the expiration o:
_.e Initial term of this lease, the D_=ector of A.Viation' nay
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rr• � •
extend `his lease for a period of thirty (30) drys upon tie sa-e
te^s and conditions contained herein. T.=.SS_E nay apply for as
naay thirty (30) day extensions of this Lease as deers
necessary, which nay or nay not be ranted by the Di:ectc_ of
wia=icn,in his discretion. Any extension of `his lease ^-anted
pursuant to this A--ticle shall be in vrizinc and signed by the
TT FSS_ : and t a Director of ;.viaticn.
27c'-.:itjs�anding any provision of t:is s`ticle, t::is_'eese is
subject to earlier to =inatien as hereinafter provided
• LS_ 0---7Tv--TG
The T.=SS== is canted for the stated te^ a-.d for nc =zher
pu=cse a ncn-exclusive privilege of a trans_=_-=
- a::tc=cbile rental service frc= the lease-_' -e=ises.
• ARTICLE
ID
- -= Te^final . The T.=SST_ sha1= pa•: tc the CITY as rental
the follow-;.--,- _
.en percent (10k) of _SS_E's z-_.a. cress revenue for.eac
_ ear du:_ng the tea^_ of this agree=e-t t_=t cc:.__..ts
_.:siness operations at the AI-R?0R=, __t =ore than ten :erce-t
(10%) of ninety percent (90;) of the _receding year's cress
revenue, plus nine percent (9,) of t=e re=a=-era to. percent
(10�) of such preceding year's gross revenue, and eight =srcent
- (off') of all cress revenue in excess c` sz=h _ recedi: 7 year's
cross revenue. To illustrate, if LESSEE's gross revenue for the
first year that this agreement is in effect is $600,000 and the
preceding year's gross revenue was $500,000, rental would be.
calculated as follows:
10% of (90% of $500,000) _ $45,000
9% of (101 of $500,000) = $ 41500
8$ of ($600,000 - $500,000) = $ 8,000
Total = $57,500
Notwithstanding the above language, in no ever.t'will the annual
ref. -:al for this lease be less than forty thousand ($40,000)
dollars.
The shove rental is payable month by mont: at a rate of ten
percent (10%) of the preceding month's gross revenue, or nine
percent (9%) of the preceding month's gross revenue when LESS__'s
gross revenue for the year has exceeded ninety percent (90%) cf
the preceding year's gross revenue, or eight percent (8%) of t`e
_receding=cnth's gross reven,.!e when L=SS=='s cross revenue,for
the year has exceeded the preceding year's total gross revenue.
The =cnthly rental payWents are due on or before the 20t
day of each :cnth and are to be accompanied by a verified
statement sowing the preceding month's gross revenue.
For dete --inirg the rental, due the CITY, cross revenue shall
include but not be linited to the following:
(1) All revenues received as mileage charges for rental o:
auto=cbiles, trucks or other vehicles.
-4-
(2) Charges for insurance policies sold customers, as well
as any charges'made to customers for insurance deductible
waiver features.
l (3) Sales of 11 fuel and oil.
(4) All inter -city or drop fees.
(5) All other revenues derived from business operations at
the AIRPORT other than proceeds from the sale of cars used
in such business operations and payments received from
customers for damages to automobiles while rented or for
emergency repairs made by the customers.
2. Ground lease (Service Facility): The LESSEE shall pay
to the CITY rentals for a ground lease on.an area to be used as a
service facility and consisting of 19,980 scruare feet of
exclusive lease area,.as shown on Exhibit "B", at the rate of
$.0067416 per sq. ft. per month.
3. Close -in vehicle parking areas (Ready and Return Car -
Areas): For each month that this lease is in effect, the LESSEE
shall pay to the CITY in advance the sun of SEVEN ($7.00) DOLLrRS
per space per -month for LESSEE's ,allocated parking spaces, as
shown on Exhibit "C". payment must be received by the CITY on or
'.before the loth day of each and every month during the term -of
this lease.
4. Counter area: LESSEE shall be provided space for a
counter area -as shown on Exhibit "A".
-B. LESSEE'S ABATEMENT RIGHTS
In the event that one or more of the following conditions
"- exist during the term hereof, the minimum annual guaranteed
-5-
rental hereinabove provided for shall be abated for the period of
tine the condition or conditions continue to exist:
• 1. I=, for any reason, the pu^ber of passengers deplaning
on scheduled airline flights at the AIRPORT during any
period of thirty (30) or nore consecutive days s'- he
loner = an 85% of the nun:er of such deplaning
passengers for the same period of the i=ediately
r preceding contract year or of the~ year irnediate__
preceding the first contract year.
2. If -I.e oceration of LESS-='S car rental business a= th e
AIRPORT through no fault of LESSEE is adversely
affected by shortages or other disrupticrs in the
• supply of automobiles, gasoline or other goods
-necessary for the operation therefore, and there is a
material diminution in =SSEE'S gross revenues
hereder for a period of thirty (30) or ^ore
consecutive days attributable to such shortages cr
other disruntions.
During the period of the abatetent, LESSEEwill continue to
pay to the C=_Y the monthly rentals which are based on cross
revenues and the CITY will return to LESS=E a just prcpor='_a.. of
any minimum annual guarantee payment which may have been
In the evert any o: the above conditions continue for a pericc _..
excess of six (6) =cnths, LESSEE shall have the right to
to =inate this agreement..
r• C. ?AST rAVORED NATIONS CLAUSE
In the event that any contract granted by the CITY to any
other autorobile rental concessionaire shall contain any to =s
more favorable to such concessionaire than the terms herein.
granted (other than counter location), then, at the option of
LESSEE herein, this Agreement shall be amended to include such
more favorable terms and any offsetting burdens that may be
--imposed on any such other concess-cnaire. The intent of this
provision is to insure that LESSEE will be able to ccmpete on
terms as equal as possible with any additional concessionaire a-d
to insure that no other concessionaire shall enjoy any nigh=s,
Profits 0r other conditions more favorable to such concessicna_=e
than those enjoyed by the LESSEE herein.
D. R'.CO.RDS ,
The LESSEE, following accepted acccunti practices ar.
procedures, will maintain true and accurate boors, records and
receipts which will show all of the g_css revenue of all bus -:ass
transacted umon•and within the AI-R?OR-.
--• H-thin 30 days of the end of the initial term of this lease, --
and when otherwise necessary, LESS=E shall subWit to the C7-_Y a
verified statement of its cross revenue for each year durin e
tern of'th-s lease in which Lessee conducted business operatics
:at the AIRPORT. Such statement shall be certified by LESSE:'s
financial officer and shali be accompanied by L=SS7_E1s payment of
any re=a-n-ng sums due the City for such business operations. in
_ the event =-ss_rE's prior payments to the CITY exceed the amcln=
required by this agreement, the CITY shall reimzzurse LESSEE _..
` -7-
1
s
an a=ount egsal to the difference between the sum required and
the sum paid.
E. AUD_T
All books, records and receipts of all business transacted
upon and within the AIRPORT will be kept or maintained at the
AIRPORT or other place acceptable to the CITY OF LUBBOCK'S
auditor, and will be available for inspection and examination
during regular office hours by the CITY OF LUBBOCK'S auditor or
authorizes representatives of the CITY. For the purposes of
dete =ining the accuracy of the required statements of gross
revenue, :he CITY OF LUBBOCXIS.auditor may authorize the making
of a spot test audit and base the findings for an entire period
upon such audit, provided that the audit shell include at least
twenty-five percent (25%) of the total time of the period
audited.
In a=dition, the CITY OF LUBB'OC'N" S auditor shall have the
rig::t at any time during the tern of this lease to authorize an
audit of _SSEE's records pertaining to its business operations
at the AIRPORT. Such audits shall be undertaken by a reputable
fires o-f independent Certified Public Accountants satisfactory to
the CITY. The cost of such audit shall be borne one-half by
=-SSEE and one-half by the CITY, unless results of the audit
reveal a discrepancy of more than -five percent (5%) between gross
revenue reported in accordance with Section B of this Article and
cross revenue as dete-nmined by audit. In case of a discrepancy
of more tan five percent (5$) in favor of the I-SSEE, the full
cost of the audit shall be borne by the LESSEE.
F . PAS^ _ N
'All pay --eats that become due and payable by the =-SS_ shall
be made to the CITY OF LUBBOC{ at the Office of the Direc_c= of
Aviation, Lu!�bcck International Airport, Lubbock, Texas.
G . BREAC
Any action taken by the LESSEE to induce its patrons
patrcns of other car.renta 1 concessionaires at the AIL C== tc
rent or receive.vehicles in such a manner and at such ^_aces so
as to diminish the gross revenue of car rental concessions rider
this-agree_ent shall constitute a material breach herec= z_.-= a
cause for the to =_nation of this agreement by the CITY.
ARTTCT= ' ITT'
O?LIG:,TTONS or, Tgr .cIT'V
A. CL A.R_TITL?.
The CITY covenants and agrees that at and until the ^-an=ing
and.delivery of this lease it is well seized of the leased
premises and has gccd title, free and clear -of all liens z.d
encu;brances having priority over this lease; and that he C_ry
has full =_;ght.and. authority to lease the pre^_uses'descri;e in
this contract. -
B. I :_:;?-iC� OF AIR_ 0RT
The CITY covenants and agrees that it will during the period
of 'his'agreecent o_erate and maintain the A==?ORT as a
facility consistent with and pursuant to the Assurances �_-:en by
th.e CITY OF T•USBOC{ to the United States Government under '-e
Federal Airport Act.
•' C. CONDIT. iS AND MAINTENANCE OF PtR=- aES
The CITY shall assume no responsibility as to the condition
of the leased premises and shall not assume responsibility for
maintenance, upkeep or repair necessary to keep the premises in a
safe and serviceable condition.
The CITY shall maintain roads, which may be relocated, on
the AIRPORT access to the leased premises in a good and adec-,:ate
condition for use by cars and trucks.
ARTICLE' SIX
OBLIGATIONS OF LESS7_E
A. 27ET IX S=
This lease shall be without cost to the CITY for the
develop=ent, maintenance and improvement of the leased premises.
It shall be the sole responsibility of the LZSSEZto keep,
maintain, repair and operate the entirety of the demised
premises, and all improvements and facilities placed on the
leased premises shall be at L=SSES's sole cost and eroense.
B. PRIVIL=G=S.AND CONDITIONS
. The CITY g_ants to the LESSEE' the following general
privileges, uses and rights, -'all of which are subject to to
to^s, conditions and covenants herein set forth and all of w ich
shall be non-exclusive on the AIRPORT:
1.' The'general use of all comron terminal facilities and
improvements which are now •or may hereafter be connected with or
appurtenant to the terminal building only in such a manner as .may
be necessary or convenient to the conduct of LESSZE's business.
2. The right of ingress to and egress from the leased
premises over and across coon or public roadways serving the
AIRPORT for LESSEE, its agents, employees, patrons, invitees,
suppliers of service and furnishers of materials, such right of
ingress and egress being subject to such ordinances, rules and
regulations now existing or subsequently promulgated.
3. The LESSEE is here granted the privilege of
constructing improvements within the AIRPORT Lyon the leased
premises as follows:
(1) Ter-minal: Concession Counter
(2) Grounds: Vehicle service building and vehicle
storage area
The LSSEE shall have the right to and shall provide for the
location, construction, alteration, extension and erection of new
or existing improvements, maintenance and removal of improve-
ments, in any lawful manner, upon the leased premises, for the
purpose of conducting an automobile rental service, provided that
all plans and specifications fcr the construction, alteration,
extension and erection of facilities and improve -cents, includi:g
landscaping, shall be in compliance with all laws, policies and
ordinances of the CITY Cr LUBBOCK and shall rec::ire the written
approval'of the Director of Aviation before any construction or
installation nay be undertaken.
4. The right to sell used rental vehicles with the
following restrictions:
(1) only those vehicles used at the AIRPORT may be
sold there. All signs used in connection with the sale
-11-
of such vehicles shall be approved by the Director of
Aviation.
(2) The sale of such vehicles on AIRPORT premises
shall be restricted to LESSEE's vehicle service area as
shown in Exhibit "H".
C. FAINTEITMICE
•1. The LESSEE shall, at its own expense, provide jani-
torial and custodial services for all its leased premises. Said
services may be provided by LESSEE alone or by LESSEE in conjunc-
tion with other tenants who are now or who may hereafter be
LESSEES at the AIRPORT.
2. The LESSEE accepts the leased premises in their present
condition -and shall, at its'sole cost and expense, maintain the
leased premises, grounds, fences, buildings, improvements and
appurtenances.at all times in a clean and presentable condition
free of trash, debris and weeds and consistent with good business
practice and equal in appearance and character to similar
improvements in_the terminal building and parking and service
area. The LESSEE-' shall repair all damage to the leased premises
and CITY -owned property caused by its employees, patrons or its
operations upon the AIRPORT. The CITY shall be the sole judge of
the a-aal'ity of maintenance, and upon written notice from the ~
Director of Aviation, the LESSEE shall be required to perform
such maintenance as the CITY deems necessary. Failure by LESSEE
to comply within thirty (30) days following receipt of such
written notice fro= the Director of Aviation shall give the CITY
-_ .the right to enter upon the leased premises and perform the
-12- : -
necessary maintenance, the cost of whien shall be borne by the
LESSEE.
D. PROPERTY PERMANENTLY AFFIXED TO PREMISS
Any property belonging to LESS--' which becomes permanently
attached to the premises shall become the property of the CITY
upon termination of this agreement, Whether upon ea-piraticn of
the initial -tern, any extension thereof, or earlier under any
provision of this lease agreement, except the following rased
imurovements shall be treated in the nanner described:
1. Paving, fencing, fuel storage tanks and fuel lines
shall be amortized over a period of ten (10) years. In -~e event -
that the LESSBE herein is succeeded by another operator at the
end of the initial term of this lease, or any extension thereof,
the new operator shall purchase the above named improvements from
the IZESSEE by paying LESSEE the value of the remaining
unamortized portion; otherwise, such improvements shall !:eco=e..
the property of the CITY.
2. Service buildings constructed by IZ SSEE remain t_e
property of IESSEE. However, in the event LESS-EE is succeeded by
another operator at the end of the initial term of this lease, or
any extension thereof, the new operator and LESSEE should
negotiate fcr the purchase of such service buildings. If the two
parties are unable to agree on the purchase price, each party
shall designate an appraiser who shall appraise the buildings
along with a third appraiser according to their fair nar),e=
value. The average of the three appraisals shall be binding as
the agreed price of the property. If for some reason the _SSEE
J.
to =inates its operations, the CITY has the first right of
refusal to purchase at the fair market value..
E. REMOVAL OF LESSEE'S PROPERTY
the LESSEE shall have the right, within fifteen (15) days
after the to urination of this lease, whether such termination
comes upon expiration of the initial ter=, any extension or
otherwise under any provision of this lease, to remove from the
premises all of"LESSEE's furnitures, fixtures, equipment and
furnishings which have not beccme the prcperty of the CITY, but
LESSEE shall restore the premises to their original conditicn,
nor -gal wear and tear excepted, provided the CITY shall have a
lien cn all of LEsSEE's prcperty to secure any unpaid rental cr
other charge due the CITY; and LESSEE's right to remove property
from the premises is conditioned upon all amounts due the C_:Y
from having been paid in full. Unless a renewal agree=eat
`is -executed, property left on the premises after thirty (3o) days
fro= the date of to=ination of this acreement shall be dee=ed.
abandoned and-uill become the property of the CITY, and nay be
disposed OL as ,...e C-1_ sees ate, wi,.hout any 1iabil2..y to the -.
'• r
LESSEE to account for the prcceeds of any sale; and the CTT-T•_, at
its option, may charge rent from termination of the agreement
through the day of final removal of the. property, or of
notification to the LESSEE of the abandon=ent of the property and
taking by the CITY, as the case may be, which rent shall not be
• less than the total dollar amount of the fixed rent and the
minimum guarantee required to be paid by the LESSEE to the CITY.
' F . PARRI27G
If LESSEE has a lease with the CITY in effect on April 30,
1969, LESSEE may retain its allocated parking spaces in the -Ready
and Return Car Area of the AIRPORT during the term. of this lease.
Otherwise, the Director of Aviation shall allocate parking spaces
in the Ready and Return.Car Area of the AIRPORT to LESSEE.
LESSEE agrees'to confine its automobile parking to the parking
spaces allocated to LESSEE. No additional parking area has been
provided (except in exclusive leased service area) for the
parking of LESSEE's vehicles, and LESSEE is prohibited from
parking its vehicles on any of the curbs or entrance roads to the
terminal area. Vehicles parked in the AIRPORT's paid parking lot
area shall accrue charges in accordance with current parking
rates, and the CITY has no obligation to detect or repot
L^SSEE's vehicles so parked.
G. ST;JTDAPM OF SERVICS
The LESS=E shall conduct a first class automobile rental-
service, providing adequate service at all tines to meet the
demands for such service at the AIRPORT. The LESSEE agrees to
conduct its business in a proper and courteous manner and to
furnish prcnpt and efficient service, making available to te
public &lean, late -model, low-r..ileage automobiles in good
mechanical condition.
The LESSEE agrees to charge fair, reasonable and non-
discriminatory rates and charges for the rental of vehicles,
however, the LESSEE may make reasonable and non-discriminatory
discounts, . ,bates or other similar tl s of price reductions to
volume customers.
F. BUSINESS SOLICITATIONS
All of LT_SSEE's business operations and solicitations will
be cc. -fined to the leased premises. LESSEE agrees to have its
o:.-n a=ployees in attendance at the counter during all hours of
scheduled airline operations.
I. ADVERTISING
The LESSEE will erect no signs and will distribute no
advertising in the AIRPORT or on AIRPORT prc.=erty without the
prior written consent of the Director of Aviation.
J. UT_ZLITI'ES -
The IZ-SSSS shall assume and pay for all costs .or charges for
metered utility services furnished LESSEE during the initial term
hereof, and any subsequent extension; provided•that LESSEE shall
have the right to connect to any storm and sanitary sewers and..
water and utility outlets, the cost of usage extension,
installation -and meters, where required, to be borne by the
::. P.:X_ MST OF TAX__S I FEES
The `SS=E shall pay all federal, state and local govern -went
taxes, license fees and occupation taxes levied on the business
conducted on the leased premises, or on any of LESSEE's property
used in connection therewith. The LESSrr shall render for
taxation purposes all automobiles and other property used in
connection with the business on the AIRPORT, and all such .
• -• County, Tex
• Taxation is subject to legal protest in accordance with the
provisions of the taxing authority whose levy is questioned. Any
protest is at the sole expense of I-ESSEE. Delinquency in paynent
of such obligations after any protest has been settled shall, at
the option of the CITY, be cause for te_Wination of this lease.
L. R.GUI.2%TIO:;S
The IZESSEE's officers, agents, employees and servants will
obey all rules and regulations which nav be promulgated by the
CITY or its authorized agents in charge of the AIRPORT, or by
other lawful authority, to insure the safe and orderly conduct of
operations and traffic on the AIRPORT.
F. PROHIBITION OF SUBLEASES AND ASSIG:.^.'_ 27TS
The =-SSEE will not directly or indirectly assign, sublet,
sell, hypothecate or otherwise transfer this lease or.any portion
of the leased premises, without the prior written consent of the
Director of Aviation.
X. RE-MOVAL 0: TRASH -
LESSz'E shall at is sole expense provide the complete and
adec.:ate sanitary handling and disposal, away from the AIRORcl•,
of all trash, garbage and other refuse which results from the
operation of USSEE's business.
O. ZND'E :2iI: ICATIO?7 AND INSURANCE
1. -The CITY shall stand indernified by the TL=SSr_E as
provided by this agreement. The LESSEE shall be deemed to be an
inde=endent contractor and operator responsible to all pa -ies
-17-
thereof, in such a canner as to substantially restrict LESS=r- for
a period of at least ninety (90) days from operating thereon.
If any of the aforesaid events occur, CITY may enter "he
leased premises and take iz-nediate possession of the sa=e and -
remove LESSEE'S effects. Upon said entry this lease shall
terminate, and any rental due hereunder shall be payable to said
date of termination.
It is agreed that failure to declare this lease tervinated
upon the default of LESSEE for any of the reasons set forth above
shall not operate to bar or destroy the right of CITY to declare
this lease null and void as a result of anv subsequent violation
of the'terms of this lease.
_ ARTTCLE EIGHT
GE;IER; L
A. TIME OF E.'ZRGENCY
During time of war or national emergency, the CITY shall
have the right to lease the landing area o= any part thereof to
the United States for governmental use and, if any such lease is
executed, the provisions of this inst_,=ent, insofar as they are
inconsistent with the provisions of the lease to the United
States, shall be suspended.
B. SFO SOR'S ASSU'RA iC. SUBORDINATION
This lease shall be subordinate to the provisions of any
existing or future agreement between the CITY and the United
States concerning 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
• -24-
for its respective acts and omissions; and the CITY shall in no
way be responsible therefor. In the exercise of the obligations
and in the enjoyment of the privileges granted by this agreement.,
the LESSEE shall indemnify and save harmless the CITY from any
and all losses that may proximately result to the CITY because of
any fault or negligence on the part of the LESSEE, its agents,
employees or invitees, and shall indemnify the CITY against any
and all claims, demands, suits, judgments and losses whatsoever.
2. The LESSEE shall maintain at all ties, at its sole
exmense and with an insurance underwriter authorized -to do
business in the State of Texas and acceptable to the City,
insurance against claims of general liability, automobile
liability and property damage resulting from L:SSEE's business
activities at the AIRPORT. The amount of -insurance coverage
shall be not less than FIFTY THOUSAND ($50,000.00) DOLLXRS for
property damage as a result of any one event; or less than ONE
HUNDR2D THOUSAND ($100,000.00) DOLLk S for personal injury or
death of any one person in any one event; or less than THREE
H-UN . D TF.OLTS;UID ($300, 000.00) DOLI.?RS for personal injury or
death of two or more persons in any one event. Certificates of
insurance or other satisfactory evidence of insurance shall be
filed with the Director of Aviation prior to entry upon the
premises by the LESSEE. Each policy shall name the CITY as an
additional insured, require the insurer to notify the Director of
Aviation of the City of Lubbock, Texas, of any alteration,
renewal or cancellation, and remain in full force and effect
-Is-
until at least ten (10) days after such notice of alteration,
renewal or cancellation is received by the Director of Aviation.
The LESSEE shall provide workers' compensation insurance
sufficient to meet statstory requirements. The workers'
compensation policy shall provide e=ployer's liability insurance
in the anount o. 02.E HU11DR-.D THOUSAND ($100,000.00) DOLL:RS.
P. WAGES
The LESSEE.shall pay, or require the payment of, the
prevailing wage rate for each craftsman or workman emploved by
LESSEE', or by persons or firms engaged by LESSEE, for any
alteration of the premises or installation, maintenance or repair
of vehicles, fixtures, eavipnent. and furnishings used in LESS=c's
operations, as._reauired by ordinances enacted pursuant to Article
5 159a, V.A.C.S., as amended. The ordinances and statute and
amendments thereto are incorporated herein by reference for all
pu-_-Doses.
Q. CONDUCT AND APPErR NCE O: EMPLOYEES
A,ny._employee in LESS EE's operations that may be deemed to be
discourteous or objectionable on reasonable grounds shall. be
:enoved from the premises by-TZ-SS"E on demand by CITY. CITY
likewise reserves the right to eject any objectionable person or
persons,` including I_ SSE'Z's enployees, from said premises, and
upon the exercise of this authority through CITY's agents or
e-^_ployees, LESSEE hereby waives any right and all clains for
damage against CITY or any of its agents, officials or enployees.
R. LIENS PROHIBITED
The LESSEE shall not bind or atte=pt to bind the CITY for
payment of any money in connection with construction, repairing,
alterations, additions or reconstruction work on the premises,
and LESSEE shall not permit any mechanic's, zmaterialman's or
contractor's liens to arise against the premises or improvements
thereon, or any equip-ent, machinery and fixtures therein
belonging to the CITY, and LESSEE expressly agrees that it will
keep and save the premises and the CITY ha^ less from all costs
and damages resulting from any liens of any character created or
that may be asserted through any act or thing done by the I=SS:E.
In the event any mechanic's lien or other lien or orders for
payment shall be filed against the premises or improvements
thereon, or against CITY -owned property located therein during
the initial term hereof, or during any subsequent extension.,
LESSEE shall within ten (10) days cause the same to be cancelled
and discharged of record by bond or otherwise, at the election
and expense of I-ESSEE, and shall also defend on behalf of the
CITY, at I.ESSEE's sole cost and exm ease, any action, suit or
proceeding which may be brought thereon or for the enforce_ent of
such lien or orders. Failure of the LESSEE to comply with any
require'miant of this section or paragraph shall be cause for
ir-nediate te=-;nation of this agreement by the CITY.
S . NOI7-DISCRIMINATION PRACTICES
LESSEE, its acents and employees will not discriminate
against any person or class of persons by reason of age, race,
color, handicap, religion or national origin in providing any
-20-
services or in the use of any of its facilities provided for the
public. =-SSE further agrees to co=ply with such enforcement
procedures as the United States night demand that the C-P.TY take
in order to cc=ply with the Sponsor's Assurances.
1ZSSEL agrees not to discriminate against any employee cr
applicant for employ-ent because of age, race, color, sex,
handicap, religion or national origin. The L?SS-v- agrees to take
affi Wative action to insure that applicants are employed and
that employees are tested during employment without regard to
their age, race, color, sex., handicap, religion or national
origin. Such action shall include, but not be limited to
enployaent, upgrading, devotion, transfer, recruitment, layoff,
rates of pay or other forms of compensation, and selection for
training, including apprenticeship.
T. SiNGUL .R AGREE ANT
L=SSLE shall not operate more than one rent -a -car service at
the AIRPORT nor occupy space provided for more than one passenger
car rental concession at the AIRPORT at any time during the
initial term of this agreement, or any subsequent extension. IL
L'SsEZ' has an existing lease agreement with the City that allows
LSS=S to overate a car rental concession at the AIRPORT at the
time L`SS:R enters into this agreenent, the prior lease Will be
*deemed abandoned by LESSEE'. However, LESSEE" herein agrees to pay
all outstanding rentals, fees and other charges incurred under
the prior lease within thirty (30) days of the date of execution
of this lease.
-21-
y ,
TERMINATION, C;UWCT'L?1:TI0`7
A. TERMINATION
This lease shall terminate at the end of the full to
hereof and LESSEE shall have no further right or interest in any
of the lands or improvements hereby demised, except as provided
in Article Six.
B. CANCELLATION BY LESSEE
This lease shall be subject to cancellation by L=SSZ-E after
the happening of one or.more of the following events:
1. The permanent abandonment of the AIRPORT as an air
terrinal.
2. 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 that substantially restricts LESSEE for a period of
at least ninety (90) days from operating thereon.
3. Issuance by any court of ccmpetent jurisdiction of an
injunction in any way preventing or restraining the use and
operation of the AIRPORT for a period of at least ninety (90)
days.
4.•• V: e default of the CITY in the performance of any
covenant or agreement herein required to be performed by the CITY
and the failure of the CITY to remedy such default for a period
of sixty (60) days after receipt from L'SS=E of written notice to
remedy the same. _ L
-22- „
LESSEE may exercise such right of termination by giving
thirty (30) days advance written notice to -the CITY at any time
after the lapse of the applicable periods of time and this lease
shall terminate as of the thirtieth (30th) day. Rental due
hereunder shall be payable only to the effective date of said
termination.
C. C;XCELLATION BY CITY
This lease shall be subject to cancellation by CITY after
the happening of one or more of the following events:
1. The taking by a court of co-petert jurisdiction of
LESSEE and its assets pursuant to proceedings brought under the
provisions of any federal reorganization act.
2. The appointment of a receiver of LESSEE'S assets.
3. The divestiture of LESSEE'S assets herein by other
overation of law.
4. The abandor=ent by LESSEE of its rent -a -car service at
the AIRPORT for a period of thirty (30) days or more.
5. The failure by LESSEE to pay any rentals or other
charges hereunder when due.
6. The default by L..SSBE in the perfor ance of any
covenant or agreement herein required to be performed by LESSEE
and the failure of =-SSE' to renedy such default for a period of
sixty (60) days after receipt from CITY of written notice to
renedy the sane.
7. The lawful assunption by the United States Government
.of the operation, control or use of the AIRPORT, or any
substantial part or parts thereof, or any authorized agency
-23-
thereof, in such a nanner as to substantially restrict LSS=z' for
a period of at least ninety (90) days from operating thereon..
If any of the aforesaid events occur, CITY may enter he
leased premises and take i—nediate possession of the sa=e and.
remove =SSIS'S effects. Upon said entry this lease shall
terminate, and any rental due hereunder shall be payable to said
date of termination.
It is agreed that failure to declare this lease terminated
upon the default of LESS for any of the reasons set forth above
shall not operate to bar or destroy the right of CITY to declare
this lease null and void as a result of anv subsequent violation
of the terms of this lease.
ARTICIE-TG•r.T
GENERAL
A. TIME OF F..` E RGENCY
During time of war or national emergency, the CITY shall
r have the right to lease the landing -area or any part thereof to
the United States for governmental use and, if any such lease is
executed, the provisions of this.instr•.=ent, insofar as they are
inconsistent with the provisions of the lease to the United
States, shall be suspended.
H. SPQNSOR'S ASSURA-1,CTE SUBORDINATION
This lease shall be subordinate to the provisions of any
existing or future agreement between the CITY and the United
States concerning the operation or =airtenance 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 develo_-nent
-24-
of the AIRPORT. Should the effect of such agreement with the
United States be to take any of the property under lease or
substantially destroy the co^rercial value of such i=prove=ents,
the CITY -shall not be held liable therefor.
C. Rs.PLACE::E T A; TER DA.`L;GE
It is agreed between the parties hereto that in the event
the leased premises are da=aged by fire or other accidental cause
during the term hereof so as to become totally or partially
untenantable, the CITY_-shzll.have the option to restore the
premises to their fo per condition. If the CITY elects to
exercise the option, the CITY shall give LESSEE notice _n .siting
of its election within thirty (30) days of the occurrence of such
da=age. If the CITY elects -to restore the premises, the CITY
shall proceed with due diligence and there shall be an abatement
of the rent until repairs have been Dade for the time and to the
extent for which the premises, or part thereof, have been
untenantable. Should the CITY not exercise.the ontion to.restore
the p_e=ises, the lease of such untenantable portion of the
premises shall cease and ter==inate_effec.ive with the date of
da=age by fire or other accidental cause.
D. CONTFLICT OF DDT :.=EST
The IZ-SSEE acknowledges that it is informed that Texas law
Prohibits contracts between the CITY and its "officers" and
"e=ployees," and that the prohibition extends to an officer and
employee of CITY agencies such as CITY -owned utilities and
certain CITY boards and cormissions, and to contracts with any
partnership, corporation or other organization in which _he
-25-
officer or sployee has a substantial nterest. =-SSEE.certifies
• (and this agreement is wade in reliance thereon) that neither the
1z_SsEE nor any person having an interest in this agreenent is an
officer or employee of the CITY or any of its agencies.
E. LIEF7 OR BOND
LESSEE must provide the CITY with a per_o ^lance bond in the
amount of FORTY THOUSAND DOLL.RS ($40,000), to be reviewed
annually, to secure the prompt payment of the minimum annual
guaranteed rental and all other charges hereinstipulated to be
paid for the use of the leased premises.
.In lieu of a performance bond, LESSEE may give the City of
Lubbock a secured interest with priority over the secured
interests and liens of all other creditors of LESSEE in all
vehicles, equipment, furniture, fixtures and furnishings used in
LESSEE'S car rental operation at the AIRPORT, including all
vehicles, equipment, furniture, fixtures and furnishings
hereafter accuired and so used. To insure the priority of the
secured interest granted to the CITY, LESSEE shall file with the
• Director of Aviation subordination agreements executed by'and
between the City of Lubbock and any and all persons or firms who
are secured parties with secured interests that would have
pricrity over the secured interest granted to the City
subordinating such other secured interests to the secured
interest held by the City. In addition, LESSEE shall secure
• subordination agreements between the City of Lubbock and any
person or firm who takes a purchase money secured interest in
LESSEE'S vehicles, equipment, furniture, fixtures and furnishings
-26-
during the initial tern of this lease agreement (or any extension
thereof), subordinating such purchase honey secured interest to
the secured interest held by the City. LESSEE shall further
secure and file with the Director of Aviation subordination
agreements executed by and between the City of Lubbock and any
person or fir= holding a lien against any structures or other
improvements used or installed by LESSEE upon the leased
premises, subordinating.such lien -to the CITY'S lien against such
structures or inprovenents to secure payment of all amcunts due
under this agreement. LESSEE shall execute security agreements
and sign financing statements to be filed with the County Clerk
of Lubbock County and.the Secretary of State of Texas; such
security agreements shall give the City of Lubbock a secured
interest in all vehicles, ecruipment, furniture, fixtures and
furnishings, used in LESSEE'S car rental operation on the AIRPORT,
including all such items hereafter acquired for such use, and a
lien upon all structures and improvements presently existing or
to be installed_or constructed upon the leased premises curing
the initial term of this Lease Agreement, or any extension
thereof. In addition to executing said security agreement,
LESSEE will file with the Director of Aviation a schedule showing
the motor vehicle identification and registration numbers of each
vehicle used in its car rental operation on the Airport and such
supplementary schedules as are necessary to keep the CITY
irfor-.wed as to the nu=ber and identity of such vehicles.
-27-
F. RiG:^:T OF INSPECTION
The CITY reserves the right to conduct inspections of the
leased pre=ises at reasonable times to insure that fire, safety
and sanitation regulations and other provisions contained in this
lease are being adhered to by the LESSEE.
G. TERMINATION OF I.-ASE, SUPRENDER OF L`.AS'D PPZX-1- SES AND
OinZi'PS•r.IP OF IMPROVEMZE NTS
The L'SSEE covenants and agrees that at the exn-;--ation of
.
the initial term or any extension which has been granted, or upon
earlier terrination as provided in this lease agree=ent, it will
a --,it and surrender the leased pre=ises and the improvements in
coed state and condition, reasonable wear and tear, acts of God
and other casualties excepted, and the CITY shall have the right
to take possession of the leased prerises and the i=prove=ents,
subject to the limitations provided by Article Six, Section D of
%is lease, with or without process of law.
H. i.'AD12iGS
Te paragraph headings contained herein are for convenience
in reference and are not intended to define, extend or li=it the
•
scope of any provisions of this agreement.
I. NOTICES
2latices to the CITY reouired or aoororriate under this
agree=ent shall be deemed sufficient if in writing and tailed,
registered or certified mail, postage prepaid, addressed to the
Director of Aviation, Lubbock International Airport, Route 3, Box
389, Lubbock, Texas 79401. Hotices to the L'SSEE shall be deemed
sufficient if in writing and mailed, registered or certified
-28-
nail, postage prepaid, addressed
to the LESSEE at the address on
file with the Director of Aviation.
J. ENTIRE AG =E �::T
This agreement constitutes
the entire agreerent between the
CITY and *LESSEE, and any other
written or parole agreement with
the CITY is expressly waived by
LESSEE.
EXECUTED this �1 day
of Y
- LESSEE
THE CITY OF LUBBOCR
CURR Y EEER�R-DRISE IN
KAYOR
BY:
'! T "EST: r
Title/ n .(-L,; ,24-i/
-z �
C;)
Date %� �_ d
> .
Civ.111Secrecary U
APPROVED AS TO CO::TEti
Ma_-Vin Coffee
Director of Aviation
.
APPROVED AS TO PO?Ji: -
F:arold Willard
Assistant City Attorney
-29-
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MAIN LEVEL
. _ I LUBBOCK INTERNATIONAL AIRPORT
LUDDOCK, TEXAS
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