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HomeMy WebLinkAboutResolution - 2685 - Lease Agreement - America West Airlines - Operating Space, LIA - 11/12/1987HW:js OCCAI IITTnl11 Resolution #2685 November 12, 1987 Agenda Item #23 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Lease Agree- ment by and between the City of Lubbock and America West Airlines, Inc., at- tached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 12th day of November , 1987. E • C. MCMINN, MAYOR [ ATTEST: Ranett_Boyd, City Secretary APPROVED AS TO CONTENT: Marvin Coffee, D ctor of Aviation APPROVED AS TO FORM: .� djft _J -0C Harold Willard, Assistant City Attorney i Res.ol ut i on 0685 AIRLINE LEASE AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK, TEXAS AND AMERICA WEST AIRLINES, INC. THIS AGREEMENT IS SUBJECT TO ARBITRATION PURSUANT TO THE TEXAS GENERAL ARBITRATION ACT (ART. 224, ET SEQ. V.A.C.S.) 4 THIS AGREEMENT IS SUBJECT TO ARBITRATION PURSUANT TO THE TEXAS GENERAL ARBITRATION ACT (ART. 224, ET SEQ. V.A.C.S.) CERTIFICATED PASSENGER AIRLINE LEASE Lubbock International Airport Lubbock, Texas THIS LEASE AGREEMENT, made this 12th day of November 1987, by and between the City of Lubbock, Texas, (hereinafter referred to as "City"), and America West Airlines, Inc., a corporation incorporated under the laws of the State of Delaware, with its principal office at 222 South Mill Avenue, Tempe, Arizona 85281, (hereinafter referred to as "Lessee"). WHEREAS, City owns and operates Lubbock International Airport, located in Lubbock County, Texas, (hereinafter referred to as "Airport"); and WHEREAS, Lessee is engaged in the business of air trans- portation of persons, property and cargo, and is certificated by the Federal Aviation Administration to provide such services through Lubbock International Airport; and WHEREAS, City is currently operating a terminal building at said Airport, which was recently expanded and remodeled to provide additional space for airline ticketing and operations facilities; and WHEREAS, City seeks to coordinate this lease and other leases at the Airport to reflect the expanded and remodeled air terminal facilities; and WHEREAS, Lessee desires to lease space and facilities in the terminal building to conduct its business of air transportation at the Airport; NOW THEREFORE, for and in consideration of the mutual covenants hereof, City hereby leases to Lessee and Lessee hereby hires and takes from City certain exclusive premises (hereinafter called "Exclusive Leased Premises"), and certain non-exclusive use premises, facilities, rights and privileges in connection with and on the Airport, as hereinafter described, upon the terms and conditions as follows: DEFINITIONS Section 1.01 - Definitions. The following words, terms and phrases whenever used in this Lease shall, for the purposes of this Lease, have the following meanings: Adequate heating and air conditioning facilities - those heating and air conditioning facilities necessary to maintain a more or less constant temperature throughout the terminal building as determined by the Director of Aviation. Approved maximum gross landing weight - the maximum landing weight for an aircraft approved by the Federal Aviation Administration for that aircraft. Director of Aviation - the Director of Aviation of the City of Lubbock or his designated representative. Federal Aviation Administration - the Federal Aviation Administration created by the Federal Government under the Federal Aviation Act of 1958, or such other Federal Government authority as may be the successor thereto or be vested with the same or similar authority. Ordinance - a legislative act enacted by the City Council of the City of Lubbock, Texas. Public airport facilities - include, but are not limited to, approach areas, runways, taxiways, aprons, aircraft parking areas, roadways, sidewalks, navigational and avigational aids, lighting facilities, terminal facilities and other public facilities appurtenant to the Airport. Regulation - any rule or order promulgated by any federal or state agency which has authority to promulgate such rule or order. Relamp - the replacement of any bulb in light fixtures not functioning properly. -2- Rule - any regulation, directive or order adopted by the Airport Board of the City of Lubbock and applicable to the operation of the Airport, and any directive issued by the Director of Aviation. LEASED PREMISES AND USES Section 2.01 - Description of Exclusive Leased Premises. A. The Exclusive Leased Premises shall consist of 3,543 square feet, more or less, in the terminal building of the Airport. B. It is understood and agreed that the square footage stated herein is an estimate, and City and Lessee are obligated and hereby jointly agree to measure the actual space occupied on or before six months after occupancy thereof and to make the necessary rental rate adjustments which will be retroactive to the beneficial occupancy date, and both City and Lessee further agree that any credits or additional rental due will be applicable to the next subsequent monthly rental. The location of the Exclusive Leased Premises is designated in red on Exhibit A attached hereto and by this reference made a part hereof. Section 2.02 - Description of Non -Exclusive Use Premises. In addition to the Exclusive Leased Premises hereinabove defined, Lessee is hereby granted the non-exclusive use, in common with others elsewhere authorized, of such space and facilities as may be designated by City in and adjacent to the terminal building, which space and facilities, without limiting the generality hereof, shall consist of: (A) Ground area for the taxiing of aircraft. (B) Space for a reasonable amount of Lessee's apron equipment. (C) Loading gates. (D) Adequate and reasonably convenient vehicular parking space for use by Lessee and its employees. Such space shall be at locations designated by City in common with other Airport employees and the use thereof shall be -3- provided at the same charge per month as established for other Airport employees. Section 2.03 - Description of Privileges, Uses and Rights. Lessee shall be entitled, in common with others elsewhere authorized, to the general use of all public airport facilities and improvements which are now part of the Airport, except as hereinafter provided. Lessee's use of said public airport facilities shall be for the sole purpose of operating a transportation system for trans -porting by aircraft persons, property, cargo, express and mail (hereinafter referred to as "Air Transportation"), which use, without limiting the generality hereof, shall include: (A) The handling, ticketing, billing and manifesting of passengers, baggage, cargo, express and mail in Air Transportation by Lessee or on behalf of any other Certificated Passenger Air Transportation Company having an existing lease with City. (B) The repairing, maintaining, conditioning, servicing, testing, parking or storage of aircraft or other equipment operated by Lessee, or of any other Certificated Passenger Air Transportation Company. Such right and the rights referred to in subparagraphs (C) and (D) below shall not be construed as authorizing Lessee to conduct a separate business, but shall permit Lessee to exercise such rights only in connection with Air Transportation. (C) The training on Airport premises of personnel either employed by or to be employed by Lessee or any other Certificated Passenger Air Transportation Company. (D) The sale, lease, transfer, disposal or exchange of Lessee's aircraft engines, accessories and other equipment or supplies. Said right shall include the sale, lease, transfer or disposal of any article or goods used by or bought for use by Lessee in connection with Air Transportation; provided, however, that Lessee shall not: -4- r (1) Sell food or beverages other than for consumption by passengers on aircraft and as provided in Subparagraph (I) of this Section 2.03. (2) Sell gasoline, fuel, propellants, grease or other lubricants except when said products are of a particular grade desired by others and are not otherwise available at the Airport (except to other Certificated Passenger Air Transportation Companies). (E) Subject to approval of the Director of Aviation, the servicing by Lessee's employees or others under Lessee's control of aircraft and other equipment operated by Lessee on the apron, by truck or otherwise, with gasoline, oil, grease, lubricants and any other fuel or propellant or other supplies required by Lessee, all of which shall include, without limiting the generality hereof, the right of Lessee to install and maintain on the Airport, subject to terms and conditions mutually agreeable to the parties hereto, adequate storage facilities for such gasoline, oil, grease, lubricants and other fuel or propellant or supplies, together with the necessary pipes, pumps, motors, filters and other appurtenances incidental to the use thereof, and the installation and maintenance of pipes in connection with such facilities, as well as a pipeline or pipelines between Lessee's source of supply and said storage facilities. Lessee shall submit to the Director of Aviation for his written approval complete written plans and specifications for such storage facilities and pipelines prior to installation. Lessee's exercise of its rights hereunder shall be subject to the execution by the parties hereto of a separate lease on such terms, conditions and consideration as may be mutually agreed upon. In connection with the execution of any such separate lease, Lessee shall be responsible for the -5- cost of all excavation, resurfacing, construction, installation, maintenance and operation thereof, and Lessee shall restore the surface of the Airport damaged by such excavation, resurfacing, construction, installation, maintenance or operation. In the event Lessee discontinues the use of said storage facilities and pipelines, Lessee agrees to remove said storage facilities and pipelines and restore the surface of the Airport affected by such removal to its original condition to the satisfaction of City. In the event City determines to expand its airport facilities in such a manner as to encompass the storage facilities or pipelines hereinabove mentioned, then in such event Lessee shall at no cost and expense to the City relocate said storage facilities and pipelines to another adequate and convenient location to be provided by the City. (F) The landing, taking off, flying, taxiing, towing, parking, loading and unloading of Lessee's aircraft or other Air Transportation equipment operated by Lessee, used in connection with scheduled, shuttle, courtesy, test, training, inspection, emergency, special charter, sight-seeing and other flights, all of which shall incidentally include, without limiting the generality hereof, the right to load and unload Lessee's aircraft, or the aircraft of any other Certificated Passenger Air Transportation Company having an existing lease with City, adjacent to a convenient entrance to the terminal building at common area loading gates located on the loading apron at points to be designated by City; provided, however, that flights carrying cargo or freight only shall load and unload at convenient and accessible points to be designated by City. (G) The loading and unloading of property, cargo, express and mail at said Airport by such motor vehicles or other means of conveyance as Lessee may desire or -6- require in the operation of its Air Transportation system, with the right to designate the particular carrier or carriers which shall regularly transport Lessee's property, cargo, express and mail to and from the Airport. (H) The right to install, maintain and operate, for its own use, either by Lessee alone, or by Lessee in conjunction with other Lessees at the Airport, or through a nominee, a computer system, message system, or any other electronic system used to transmit communications of any nature whatsoever. The installation, maintenance and operation of such systems as described above shall be without cost or expense to City, and shall be subject to reasonable rental payments by Lessee to the City for any space used, as well as prior written approval of the Director of Aviation as to location, plans and specifications. (I) The right to provide food and beverages for consumption in flight by passengers and crews of Lessee or by passengers and crews of any other Certificated Passenger Air Transportation Companies or for consumption by said passengers and crews grounded at the Airport because of weather or mechanical conditions. Such food and beverages may be served on Lessee's Exclusive Leased Premises when such food and beverages were originally scheduled to be served to such passengers and crews in flight. Except to the extent hereinabove specifically provided, nothing in this subparagraph (I) shall be deemed to give Lessee the right to maintain or operate at the Airport a cafeteria, restaurant, bar, cocktail lounge or vending machines or in any manner otherwise providing for the sale of food or beverages to the public. (J) Subject to prior approval of the Director of Aviation, the right to place signs or replace existing signs identifying Lessee's business in or on the Exclusive -7- Leased Premises. Said signs shall be substantially similar to existing signs in size, type and location. A change in existing signs as to number, type, size, design and location shall be subject to the written approval of the Director of Aviation prior to installation. Such installation and operation shall be without cost or expense to City. (K) The right to install, maintain and operate singularly or in conjunction with any other Certificated Passenger Air Transportation Companies who are Lessees at the Airport, or through a nominee, such radio communications, meteorological and aerial navigation equipment and facilities in or on the Exclusive Leased Premises, without cost or expense to the City and subject to the written approval of the Director of Aviation as to location, method and type of installation prior to installation. (L) The right, except as herein otherwise specifically provided, to purchase or otherwise obtain personal property of any nature including, but not limited to, gasoline, fuel, propellants, lubricating oil, grease, food, beverages and other materials, equipment and supplies deemed by Lessee necessary or incidental to its operations, its exercise of the rights herein granted, and its discharge of the obligations herein imposed. Said purchases may be made through any person, partnership, firm, association or corporation Lessee may choose. (M) The rights and privileges granted the Lessee under subparagraphs (E), (G), (H), and (K) of this Section 2.03 may be exercised by Lessee for and on behalf of any other Certificated Passenger Air Transportation Company of, by or through a nominee of Lessee, but said nominee shall be subject to the prior written approval of the Director of Aviation. It is specifically -8- 01 t provided, however, that any such nominee shall have no greater rights than Lessee hereunder. Section 2.04 - Rights and Privileges Specifically Excluded. Except as specifically provided for in Section 2.03, nothing herein shall be deemed to give Lessee any right or permission to sell at the Airport any goods or services to the public other than Air Transportation services. Without limiting the generality of the foregoing, this prohibition includes insurance sales (except when not otherwise available at the Airport). Section 2.05 - Right of Ingress and Egress. City hereby grants to Lessee, its employees, agents, passengers, guests, patrons, suppliers of materials and furnishers of service the right of ingress to and egress from, but not the use of, except as otherwise provided in this Lease, the Exclusive Leased Premises and non-exclusive use premises described in Sections 2.01 and 2.02. Section 2.06 - Effect of Ordinances, Rules and Regulations. This Lease is subject to such ordinances, rules and regulations duly enacted or adopted for the operation, maintenance and existence of the Airport, and all such ordinances, rules and regulations enacted or adopted which relate to the health or safety of the general public shall always take precedence over the terms of this Lease. Such ordinances, rules and regulations enacted or adopted which do not affect the health or safety of the general public shall take precedence over this Lease only when such ordinances, rules and regulations are not in direct conflict with the terms of this Lease. ARTICLE III TITLE TO LESSEE Section 3.01 - Installed Improvements and Propertv. All improvements, equipment and property installed, erected or placed by Lessee in, on or about the Airport shall be deemed to be personalty and remain the property of Lessee, save and except those improvements, equipment and property which are so attached to Airport premises so as to damage the premises upon removal or impair the functional or operational use thereof. Said -9- improvements, equipment and property so attached shall be deemed permanent improvements and shall become the property of City upon installation. ARTICLE IV OBLIGATIONS OF CITY Section 4.01 - Right to Lease Property. City represents that it has the full right to lease that portion of the Airport referred to herein, together with all the premises, facilities, rights, licenses, services and privileges herein granted, and has full power and authority to enter into this Lease in respect thereof. City further represents that all things have occurred that are necessary to make the granting of this Lease effective, and City warrants to Lessee peaceful possession and quiet enjoyment of the Exclusive Leased Premises, appurtenances, facilities, rights, licenses and privileges during the term hereof upon performance of Lessee's covenants herein. Section 4.02 - Maintenance and Operation of Airport. Except as otherwise specifically provided herein, City shall, during the term of this Lease, operate, maintain and keep in good repair the terminal building, terminal apron and all airport facilities utilized by the general public, as well as the improvements, machinery and equipment placed by City in these areas. City shall not, however, be required under this Lease to perform maintenance to or make repairs to the Exclusive Leased Premises or to perform any maintenance or effect any repairs necessary due to misuse or abuse or the negligence of Lessee, its sublessees, employees, agents, servants, patrons and invitees. However, City may perform such maintenance or make such repairs as necessary and charge the cost of same to Lessee, provided Lessee has failed to perform such maintenance or make such repairs to the satisfaction of the Director of Aviation within a reasonable time after receiving a written request from said Director of Aviation. In all areas utilized by the general public, City shall provide janitorial and cleaning services, including window -10- washing, lighting and adequate heating and air conditioning facilities. The City shall be responsible for structural, exterior and roof maintenance and exterior window washing in all portions of the terminal building. City shall also provide and supply adequate lighting for vehicular parking spaces and aircraft loading ramps and adequate field lighting. The obligations assumed by City under this Article IV shall not obligate City, except as provided in Article XI hereof, to repair or rebuild any of the facilities at said Airport in the event of damage by the elements, fire, explosion or other causes beyond the control of City. City shall deliver to Lessee all of the premises leased hereunder in a condition which complies with the City's Building Code and other applicable City ordinances. Section 4.03 - Maintenance and Services on the Exclusive Leased Premises. Notwithstanding any language to the contrary in Section 4.02, City shall be responsible for and shall be obligated to perform only the following maintenance and services on the Exclusive Leased Premises: (A) Adequate heating and air conditioning. (B) Maintenance of mechanical and electrical systems installed by City, excluding relamping behind and above the ticket counter and office areas. Section 4.04 - Governmental Facilities. It is expressly agreed that if funds provided by the United States Government for the construction, maintenance and operation of the Control Tower, Instrument Landing System, and/or other air navigation aids are discontinued even though needed for Lessee's operations at the Airport, City shall not be required to provide said facilities. Section 4.05 - Restaurants. City agrees to provide space in the terminal building for a restaurant or coffee shop for the purpose of selling food and beverages to the general public. Section 4.06 - Ticket Counter. Lessee is hereby granted the right to construct and install a ticket counter shell on the -11- Y Exclusive Leased Premises. Said ticket counter shell shall be constructed and installed according to Lessee's own needs, plans and specifications, which plans and specifications shall be submitted to the Director of Aviation of City for written approval prior to construction and installation. Section 4.07 - Outbound Baggage System. Lessee is hereby granted the right to construct and install as a permanent improvement an outbound baggage system on the Exclusive Leased Premises. Such outbound baggage system shall be constructed and installed according to Lessee's own needs, plans and specifications, which plans and specifications shall be submitted to the Director of Aviation for written approval prior to construction and installation. Lessee shall maintain said outbound baggage conveyor system in good condition and shall pay all costs of repair or maintenance for said system while this Lease is in effect. OBLIGATIONS OF LESSEE Section 5.01 - Maintenance of Exclusive Leased Premises. Except as provided in Section 4.03, Lessee shall be obligated, without cost or expense to City, to maintain the Exclusive Leased Premises and every part thereof including, but not limited to, the counter shell and the outbound baggage system in good order, repair and safe condition. Lessee shall, at is own expense, provide janitorial services in the Exclusive Leased Premises, either singularly or in conjunction with other Certificated Passenger Air Transportation Companies who may now or hereafter be Lessees at the Airport. Lessee shall relamp light fixtures as necessary, and shall repaint the interior of the Exclusive Leased Premises as necessary. All such relamping and repainting shall be accomplished with materials and workmanship comparable to the original materials and workmanship. All paint colors or schemes shall harmonize with the decor of the passenger terminal area and shall be subject to the prior approval of the Director of Aviation. -12- Section 5.02 - Porter Service. Lessee may, at its option, provide porter service for the convenience of its passengers in and adjacent to the baggage claim area of the terminal building. Said service may be provided by Lessee alone, by Lessee in conjunction with other Certificated Passenger Air Transportation Companies who may now or hereafter be Lessees at the Airport, or by a nominee of Lessee if approved by the Director of Aviation. Section 5.03 - Additions, Alterations or Replacements. Lessee shall have the right to construct, alter or replace on the Exclusive Leased Premises those improvements or facilities which Lessee reasonably deems necessary for the proper conduct and operation of Lessee's business. However, Lessee shall not construct, alter or replace any such improvements or facilities without prior written approval of the Director of Aviation. Lessee shall also have the right to install on the Exclusive Leased Premises such equipment as Lessee reasonably deems necessary to conduct its Air Transportation business; however, in all instances where electrical wiring, plumbing facilities, climactic controls or other structural changes or alterations are required, Lessee shall obtain approval from the Director of Aviation prior to making such changes or alterations. In all cases where improvements or facilities installed by Lessee require structural changes or additional wiring, plumbing or climactic controls, Lessee agrees to be responsible for all costs in connection with such installations. In performing any construction or other work authorized in this Section 5.03, Lessee shall keep the Exclusive Leased Premises free from accumulation of debris as much as practically possible and perform such work so as to minimize inconvenience to the general public and other Lessees of City. Section 5.04 - Removal and Demolition. Lessee shall not remove or demolish, in whole or in part, any improvements that already exist on the Exclusive Leased Premises without the prior written consent of the Director of Aviation who may, at his discretion, condition such consent upon Lessee's agreement to replace the same improvements specified in such consent upon -13- r termination of this Lease. The Director of Aviation shall not withhold consent unreasonably and shall not impose unreasonable conditions as a prerequisite for obtaining his consent. Section 5.05 - Trash and Garbage. Lessee shall provide at its own expense a complete and proper arrangement for the adequate sanitary handling and disposal, away from the Airport, of all trash, garbage and other refuse resulting from Lessee's operations on the Airport. Lessee shall provide and use suitable covered metal receptacles for all garbage, trash and other refuse in the areas leased by Lessee. Piling of boxes, cartons, barrels or other similar items in an unsafe manner in or about Airport premises shall not be permitted. Section 5.06 - Taxes and Licenses. Lessee shall pay all taxes of whatever character that may be lawfully levied or charged upon Lessee's leasehold improvements or operations hereunder and upon Lessee's rights to use Airport property. Lessee shall obtain and pay for all licenses or permits necessary or required by law for the construction of any improvements, additions or alterations, or the installation of equipment and furnishings, and any other licenses necessary to conduct its Air Transportation business. Section 5.07 - Rules and Regulations. In conducting its operations hereunder, Lessee shall comply with all applicable laws of the United States of America and the State of Texas, the rules and regulations promulgated by their authority pertaining to aviation and air navigation, and all reasonable and applicable rules, regulations and ordinances of the City now in force or hereafter prescribed or promulgated by authority or by law, provided that such rules, regulations and ordinances of the City shall be in conformity with Section 2.06 hereof. Section 5.08 - Duty to Prevent Unauthorized Access to the Premises. Lessee shall prohibit both unauthorized persons and vehicles from entering the Exclusive Leased Premises and those Airport premises over which Lessee has control or usage of in common with others, and Lessee agrees that in the event that a civil penalty or fine is levied against the Airport or City as a -14- result of Lessee's failure to comply or act in accordance with this provision or any other applicable federal, state or local statutes, ordinances, rules and regulations affecting the use, occupancy or operation of any of said premises, Lessee shall immediately reimburse the Airport or City the full amount of the penalty or fine and correct the act or omission leading to, causing or contributing to the violation. ARTICLE VI TERM Section 6.01 - Term. A. The initial term of this Lease shall be for a period of one (1) year commencing on -November 12 , 1987, and ending on November 12 , 1988. Upon written application of Lessee, delivered to the office of the Director of Aviation of City within twenty (20) days prior to the expiration of the initial term of this Lease, the Director of Aviation may extend this lease for a period of ninety (90) days upon the same terms and conditions contained herein. Lessee may apply for as many ninety (90) day extensions of this Lease as Lessee deems necessary, which may or may not be granted by the Director of Aviation in his discretion. Any extension of this Lease granted under this Section 6.01 shall be in writing and signed by the Lessee and the Director of Aviation. B. Notwithstanding any provision of this Section 6.01, this Lease is subject to earlier termination as hereinafter provided under Article XII and to renegotiation of the rentals, fees and other charges pursuant to Article VIII of this agreement. C. On or before thirty (30) days prior to the expiration of the initial term of this Lease, or as a condition upon any ninety (90) day extension of said term, as provided in this Article, the Director of Aviation may notify Lessee in writing that this Lease shall terminate at the end of said thirty (30) day period. Lessee agrees and hereby acknowledges that it is an essential term of this Lease that before the end of said thirty (30) day period Lessee will vacate all of the premises leased hereunder, will remove all of its property and improvements -15- (other than permanent improvements) from same, and will restore said premises to the condition in which they existed at the commencement of the original term of this Lease, damage by the elements, fire, explosion or other casualty excepted unless such damage results from act or omission of Lessee. All such restoration shall be done in a manner satisfactory to the Director of Aviation and shall be completed within said thirty (30) day period. If Lessee fails to vacate said premises within said thirty (30) days after the date of written notice from City of termination, or if Lessee fails to complete such restoration within said thirty (30) day period, the City shall have the right to remove from said premises any and all of Lessee's property and improvements remaining thereon, to restore said portion of the terminal building and land adjacent thereto to the condition specified above, and to charge all costs incurred by City in so doing to Lessee. Lessee agrees to pay such costs of removal and restoration incurred by City. RENTALS AND FEES Section 7.01 - Rental for Exclusive Terminal Building Space. Rental for the Exclusive Leased Premises in the terminal building, as described in Section 2.01, shall be as follows: Exclusive Area: 3,543 Sq. Ft. of exclusive leased space within the terminal building at the rate of $13.14 per sq. ft. per year or $46,555.02 per year. Section 7.02 - Landing Fee. The fee for the use of the landing area and facilities necessary therefor as granted hereunder, except those for which rentals are specifically provided elsewhere herein, shall be .63 per 1,000 pounds of the approved maximum gross landing weight of each actual flight operated. Not later than the fifth day of each month, Lessee shall file with the Director of Aviation a report of Lessee's actual landings at the Airport for the preceding month, which report shall include the number and type of aircraft making such -16- landings. Lessee shall further provide the City with a summary of the approved maximum gross landing weights for each type of aircraft it operates at the Airport. A9 C-- f1.......... TT �.� 11 .... A. Common Bag Claim Area The common bag claim area consists of two areas that are approximately 8,316 sq. ft., and 8,509 sq. ft., as shown on Exhibit B, attached hereto and by reference made a part hereof, and the air carriers with existing leases at the Airport have jointly agreed to accept responsibility for payment of rent on the 8,316 sq. ft. common bag claim area; therefore, until such leases are renegotiated pursuant to Article VIII of this Lease, such rental shall be charged jointly to Lessee and all other Certificated Passenger Air Transportation Companies which now or may hereafter have valid leases at the Airport at the rate of 8.25 per sq. ft. per year or $68,607.00 per year. However, the Director of Aviation reserves the right to schedule or allow Lessee to use either common bag claim area at any time during the initial term of this Lease and during any extensions. Not later than the fifth day of each month, the Lessee shall file with the Director of Aviation a summary of the actual number of passenger enplanements on Lessee's aircraft and the actual number of departures of Lessee's aircraft from the Airport for the preceding month. Furthermore, the Lessee, in conjunction with other Certificated Passenger Air Transportation Companies which now or may hereafter have valid leases at the Airport, shall provide the City with a written schedule of the pro rata rental due by each Lessee hereunder, and Lessee agrees to pay its stated pro rata amount monthly. The pro rata schedule so furnished to City shall remain in effect until such time as City is provided with a revised schedule of the pro rata rental amounts executed by all said Lessees, which revised schedule shall remain in effect until similarly modified. B. Common Boarding Lounge Area The common boarding lounge area consists of an area that is approximately 26,789 sq. ft., as shown on Exhibit B -17- attached hereto. Until leases with other air carriers who are Lessees at the Airport are renegotiated pursuant to Article VIII of this Lease, rental of the 26,789 sq. ft. area shall be charged jointly to all Certificated Passenger Air Transportation Companies which now or may hereafter have such leases at the rate of $2.62 per sq. ft. per year or $70,187.18 per year. However, in addition to the foregoing, the Director of Aviation reserves the right at all times to permit Lessee herein to utilize exclusively up to 24,896 sq. ft. of non -common boarding lounge area designated on Exhibit B attached hereto. In the event Lessee is permitted to utilize portions of the non -common boarding lounge area described, Lessee shall pay the City the same rental per square foot for such area as Lessee pays for other exclusive leased space within the terminal building upon the same terms. Lessee, in conjunction with other Certificated Passenger Air Transportation Companies which now or may hereafter have valid leases at the Airport, shall provide City with a written schedule of the pro rata rental due by each Lessee hereunder, and Lessee agrees to pay its stated pro rata amount monthly. The pro rata schedule so furnished to City shall remain in effect until such time as City is provided with a revised schedule of the pro rata rental months executed by all said Lessees, which revised schedule shall remain in effect until similarly modified. Section 7.04 - Rental for Public Address System. Lessee shall pay a rental rate of $5.00 per month per microphone connection located either on the Exclusive Leased Premises or the non-exclusive use premises. The rental rate per month will be adjusted when necessary to reflect the charges imposed on the City to provide this service. The microphones located on the non-exclusive use premises will be provided for use in conjunction with other Certificated Passenger Air Transportation Companies which now or may hereafter have valid leases at the Airport. These companies shall provide City with a written schedule of the pro rata rental due by each Lessee hereunder and Lessee agrees to pay its stated pro rata -18- r amount monthly. The pro rata schedule so furnished to City shall remain in effect until such time as City is provided a revised schedule of the pro rata rental amounts executed by all said Lessees, which revised schedule shall remain in effect until similarly modified. Section 7.05 - Aircraft Storage. City shall have the right to designate apron parking areas for the storage of Lessee's aircraft. Section 7.06 - Time of Payment. Lessee agrees to pay City the rentals, fees and charges due hereunder at such place as City may from time to time designate. The rental for the Exclusive Leased Premises shall be payable monthly in advance. All other rentals, fees and charges shall be payable in monthly installments covering the preceding calendar month of operation. In the event that the commencement or termination of this agreement falls on any date other than the first or last day of a calendar month, the applicable rentals, fees and charges (except landing fees and rentals, fees and charges that are pro rated on the basis of passenger enplanements, aircraft departures and/or other such use measurements) for that month shall be paid on a pro rata basis according to the number of days during which said particular premises, facilities, rights, licenses, services and privileges were enjoyed. City shall, after the end of each calendar month, transmit to Lessee a statement of the rentals, fees and charges incurred by Lessee during said month as hereinabove provided. Payment shall be made by Lessee on or before the 25th day of the month in which such statement is transmitted. Section 7.07 - Default for Failure to Pay Rentals, Fees and Charges. It is expressly agreed that time of payment of the rentals, fees and charges hereinabove provided is of the essence in this entire Lease. Therefore, if Lessee fails to pay any rentals, fees or charges due hereunder within thirty (30) days after City transmits a statement therefor to Lessee, City may, at its option, upon fifteen (15) days written notice to Lessee (unless in such fifteen day period Lessee shall have corrected -19- ki such failure to pay) immediately, or at any time thereafter, enter into and upon the Exclusive Leased Premises, or any part thereof in the name of the whole, and repossess said premises. In said event, City may expel Lessee and those claiming by, through or under Lessee and remove Lessee's effects from Airport property forcibly, if necessary, without being deemed guilty of trespass and without prejudice to any remedy which otherwise might be used for breach of covenant or to collect rentals, fees and charges in arrears. Upon such re-entry this Lease shall terminate. ARTICLE VIII READJUSTMENT OF RENTALS, FEES AND OTHER CHARGES Section 8.01 - Basis for Readjusting Charges. On or before April 1, 1988, rentals, fees and charges for the use of the premises and facilities leased to other air carriers with leases at the Airport shall be subject to renegotiation upon written notice to such air carriers ninety (90) days prior to said date. Since the Airport was recently expanded and remodeled to provide additional space for airline ticketing and operations facilities, the City contemplates renegotiating these leases, and both the City and Lessee understand and agree that the City shall likewise have the right to renegotiate, alter and amend this agreement to conform with the readjusted terms, conditions, rentals, fees and other charges renegotiated with Lessee and other air carriers. Section 8.02 - Costs Excluded. Cost of facilities and improvements paid for by federal or state gifts or grants-in-aid, and depreciation, amortization and interest charges thereon, shall not be included in the cost factors herein. ARTICLE IX RIGHTS AND PRIVILEGES RESERVED BY CITY Section 9.01 - Right to Charge Use Fees to Others. Nothing in this Lease shall be deemed to restrict in any manner City's right to charge any person, partnership, firm, association or corporation fees and rentals for the use of City's property or any improvements thereon where such use of said property or improvements is of a regular or permanent nature, as -20- distinguished from a temporary or transitory nature, or where such use is of such a nature as to constitute the performance of a commercial business at the Airport. In addition, City shall have the right to charge persons, partnerships, firms, associations and corporations a fee no less than that set forth in mutual assistance ground services agreements, as revised from time to time. This fee shall be applicable to, but not limited to, fees for ramp use, jetway use, gate use, training flights and aircraft storage and landing fees, which shall never be less than 125% of the landing fee charged Lessee as set out in Section 7.02 hereof. Section 9.02 - Right to Improve and Protect the Airport. In addition to any other rights herein retained, City specifically reserves the following rights and privileges: (A) The right to further develop or improve the landing area and other portions of the Airport as City deems necessary, regardless of the desires or views of Lessee and without interference or hindrance therefrom. If feasible, such improvements shall be made in a manner which will cause Lessee as little inconvenience as possible. (B) The right to take any action City considers necessary to protect the aerial approaches of 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 City, would limit the usefulness of the Airport or constitute a hazard to aircraft. (C) The right during time of war or national emergency to lease the Airport or any part thereof to the United States Government for military use. In the event any such Lease is executed, the rights and privileges granted Lessee in this instrument insofar as they are inconsistent with the rights and privileges granted to the Government shall be suspended. -21- INDEMNIFICATION, INSURANCE AND BONDS Section 10.01 - Indemnification, Etc.. The parties agree that Lessee is and shall always be deemed to be an independent contractor and operator and not an agent or employee of City with respect to Lessee's acts and omissions hereunder. The Lessee agrees that it will indemnify and save the City harmless from all claims arising out of any demands of contractors, subcontractors, laborers, workers, suppliers, mechanics, materialmen and furnishers of equipment or parts thereof, which claims may be incurred by the activities of Lessee at the Airport or by reason of any improvements, alterations, construction or installation on the Exclusive Leased Premises. Lessee shall indemnify fully and save harmless the City, its officers, agents and employees from any and all claims and actions and any and all expenses incidental to the investigation and defense thereof, based upon or arising out of damages or injuries to third persons or their property, and caused by the fault or negligence of Lessee, its contractors, agents or employees in the construction, use or occupancy of the facilities, premises and privileges hereunder; provided, however, that the City shall indemnify fully and save harmless Lessee, its officers, agents and employees from any and all claims and actions and any and all expenses incidental to the investigation and defense thereof, based upon or arising out of damages or injuries to third persons or their property, and caused by the fault or negligence of the City, its agents or employees, or arising out of or as a result of the condition of any of the publicly used premises in or about said Airport. City shall give to Lessee prompt and reasonable notice of any claims or actions against City, and failure to so notify Lessee shall relieve Lessee of its obligations to indemnify the City therefor. Lessee shall have the right to investigate, compromise and defend any such claims or actions to the extent of its own interest. Section 10.02 - Insurance. Lessee shall procure and keep in effect at all times during the term of this Lease the forms of -22- insurance set forth in this Section 10.02. All policies or certificates shall contain a provision requiring the insurers to give the City written notice of cancellation or of any material change in said policies or certificates at least thirty (30) days in advance of the effective date of such cancellation or material change. Each policy shall also contain a provision waiving the right of such insurers to subrogation. Lessee shall maintain all insurance required hereunder with insurance underwriters authorized to do business in the State of Texas and satisfactory to City. All policies shall name the City, its officers, servants, agents and employees as additional insureds. Before the initial term of this agreement commences, Lessee shall furnish City with certificates of insurance which indicate that all insurance and provisions required hereunder are in full force and effect or shall provide City with certified copies of said policies. (A) Fire Insurance - Lessee shall insure for fire and extended coverage risks all of Lessee's improvements on the Exclusive Leased Premises. Such insurance shall be in an amount equal to the full insurable replacement value of such improvements. All fire insurance policies shall contain loss payable endorsements in favor of the parties as their respective interests may appear hereunder. City agrees that any payments received from such insurers as a result of loss under such policies shall be applied toward repair and reconstruction of said leasehold improvements. (B) Public Liability and Property Damage Insurance - Prior to undertaking any activities at the Airport, Lessee shall obtain comprehensive general liability insurance for the protection of the City, its officers, agents and employees. Lessee shall provide public liability insurance for personal injuries or death arising out of any one accident or event in a minimum sum of Three Hundred Thousand Dollars ($300,000.00) for one person and Two Million Dollars ($2,000,000.00) for any one -23- accident and, in addition, shall provide property damage liability insurance in a minimum sum of Two Hundred Fifty Thousand Dollars ($250,000.00) for property damage arising out of any one accident or event. Insurance coverages required of Lessee shall be subject to adjustment from time to time to comply with any -changes in minimum requirements determined by City to be necessary. ARTICLE XI DAMAGE OR DESTRUCTION OF LEASED PREMISES Section il.01- Partial Damage. If the Exclusive Leased Premises are partially damaged by fire, explosion, the elements, a public enemy or other casualty, but not rendered untenantable, the same will be repaired with due diligence by City at its own cost and expense; provided, however, that if the damage is caused by an act or omission of Lessee, its sublessees, agents or employees, Lessee shall be responsible for repairing said premises and shall pay the cost therefor. Section 11.02 - Extensive Damage. If damage from fire, explosion, the elements, a public enemy or other casualty is so extensive as to render that portion of the Exclusive Leased Premises situated within the terminal building untenantable but capable of being repaired in thirty (30) days, the same shall be repaired with due diligence by City at its own cost and expense, and the rent payable herein with respect to such premises shall be paid proportionately to the time of such damage and thereafter cease until such time as the premises are fully restored; provided, however, that if the damage is caused by an act or omission of Lessee, its sublessees, agents or employees, Lessee shall be responsible for repairing said premises and shall pay the cost therefor. During any such period where Lessee is responsible for repairing said premises under the terms of this paragraph, the usual rental shall be payable. The abatement of rental for the Exclusive Leased Premises, as aforesaid, shall not be construed as a waiver of other fees due and payable under the terms of Article VII. -24- Section 11.03 - Complete Destruction. In the event the Exclusive Leased Premises are completely destroyed by fire, explosion, the elements, a public enemy or other casualty, or so damaged that they will remain untenantable for more than thirty (30) days, City shall be under no obligation to repair or reconstruct said premises, and rent payable hereunder and attributable to such destroyed premises shall be paid proportionately to the time of such damage or destruction and shall thereafter cease until such time as the premises are fully restored. If within one hundred fifty (150) days after the time of such damage or destruction said premises shall not have been repaired or reconstructed, or other reasonable facilities provided in lieu thereof, Lessee may cancel this Lease in its entirety or such part of this Lease that pertains to the Exclusive Leased Premises by giving City written notice of such cancellation. Notwithstanding the foregoing, if the Exclusive Leased Premises and adjoining premises are completely destroyed as a result of an act or omission by Lessee, City may, in its discretion, require Lessee to repair or reconstruct the Exclusive Leased Premises and adjoining premises and pay the costs therefor. During any such period where Lessee repairs said premises under the terms of this paragraph, the usual rental shall be payable. Section 11.04 - Right to Recover Damages. Nothing in this Lease shall be construed as a waiver of the right of either City or Lessee to recover damages from the other arising out of the fault or negligence of the other. Section 11.05 - Limit of City's Obligations Defined. It is understood that in the application of the foregoing Sections 11.01, 11.02 and 11.03, City's obligations shall be limited to repair or reconstruction of the Exclusive Leased Premises to the same extent and quality that existed at the commencement of this Lease. Redecoration and replacement of furniture, equipment and supplies shall be the responsibility of Lessee and any such redecoration and refurnishing/re-equipping shall be of equivalent -25- quality to that originally installed hereunder within the Exclusive Leased Premises. ARTICLE XII TERMINATION OF LEASE CANCELLATION, ASSIGNMENT AND TRANSFER Section 12.01 - Termination. This Lease shall terminate at the end of the full term hereof, and Lessee shall have no further right or interest in the Exclusive Leased Premises or the non- exclusive use premises, except as provided in Article VI and in Article XIII. Section 12.02 - Cancellation by Lessee. This Lease shall be subject to cancellation by Lessee after the occurrence of any one or more of the following events: (A) The permanent abandonment of the Airport as an airline terminal or the permanent removal of scheduled airline service from 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 to substantially restrict Lessee for a period of at least ninety (90) days from operating thereon. (C) The issuance of an injunction by any court of competent jurisdiction which prevents or restrains the use of the Airport, or any substantial part thereof, for Airport purposes, provided such injunction remains in force for a period of at least ninety (90) days. (D) The inability of Lessee to use the Airport for a period in excess of ninety (90) days or to enjoy any of the rights, licenses, services or privileges granted to Lessee hereunder as a result of fire, explosion, earthquake or other casualty or act of God or a public enemy, provided that the same is not caused by negligence or willful acts or failure to act on the part of Lessee, its sublessees, agents or employees. -26- (E) Any failure or refusal by the Federal Aviation Administration which prevents Lessee from operating into, from or through said Airport such aircraft as Lessee may reasonably desire to operate. (F) The default by City in the performance of any covenant or agreement herein required to be performed by City and the failure of City to remedy such default for a period of ninety (90) days after receipt from Lessee of written notice to remedy the same; provided, however, that no notice of cancellation, as below required, shall be of any force or effect if City shall have remedied the default prior to the receipt of Lessee's notice of cancellation. Lessee may exercise such right of cancellation by giving the Director of Aviation sixty (60) days advance written notice at any time after the lapse of the applicable period of time herein stated, and this Lease shall terminate at the end of such sixty (60) day period. Rental due hereunder shall be payable only to the date of said termination, except such portion of the rental attributable to the Exclusive Leased Premises when such premises shall have been completely destroyed by fire, explosion, the elements, a public enemy or other casualty, and such premises remain untenantable for more than thirty (30) days, in which event the rental shall be payable as provided in Article XI, Section 11.03 hereof.' Lessee's performance of all or any part of this Lease for or during any period(s) after failure of the City to perform any of the terms, covenants and conditions herein contained shall not be deemed a waiver of any right Lessee has to cancel this Lease for any subsequent failure by City to so perform, keep or observe any of the terms, covenants or conditions hereof. Section 12.03 - Cancellation by City. This Lease shall be subject to cancellation by City after the occurrence of any one or more of the following events: -27- � A Y (A) The taking by a court of competent jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any federal reorganization act. (B) The appointment of a receiver of Lessee's assets. (C) The divestiture of Lessee's assets herein by other operation of law. (D) The abandonment by Lessee of its Air Transportation business at the Airport for a period of thirty (30) days or more. (E) The default by Lessee in the performance of any covenant or agreement herein required to be performed by Lessee and the failure of Lessee to remedy such default for a period of sixty (60) days after receipt of written notice by City to remedy same, except that default for failure to pay any rentals, fees or charges shall be governed by Section 7.07. (F) The lawful assumption 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 thereof, in such a manner as to substantially restrict Lessee for a period of at least ninety (90) days from operating thereon. (G) In addition to the foregoing, all rights, privileges and interests acquired hereunder by Lessee may, at the ninety option of City and following written notice of th=k 90 America st'.1 (go days, be suspended or finally terminated if such suspension or termination is found by City, acting in Ci y of Lubbock good faith, to be necessary to enable the City to undertake construction for expansion of the terminal building, or to secure federal financial aid for the development of the Airport, or for the development or promotion of aeronautical operations thereon. If any of the aforesaid events occur, City may enter the Exclusive Leased Premises and take immediate possession of the same and remove Lessee's effects. Upon said entry this Lease -28- 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 Lessee for any of the reasons set forth above or in Section 7.07 hereof shall not operate to bar or destroy the right of City to declare this Lease null and void as a result of any subsequent violation of the terms of this Lease. Section 12.04 - Notice of Termination. If any of the events enumerated in Section 12.03 shall occur, City may cancel and terminate this Lease by giving Lessee five (5) days written notice, such cancellation and termination to be effective upon the date specified in such notice. Rental due shall be payable only to the date of cancellation. Section 12.05 - Assignment and Subletting. Lessee shall not sell, assign or transfer this Lease, .or any part thereof, and shall not sublease all or any portion of the Exclusive Leased Premises without the prior written consent of the Director of Aviation; provided, however, that Lessee may assign this Lease to any corporation with which Lessee may merge or consolidate or which may succeed to the Air Transportation business of Lessee. PROPERTY RIGHTS UPON TERMINATION Section 13.01 - Lessee's Right of Removal. Upon cancellation or termination of this Lease for any reason, Lessee shall have the right for a period of thirty (30) days after the date on which notice of termination is placed in the United States mail, as provided in Article XIV, Section 14.18 hereinafter, to remove any or all of its property from the Airport. Furthermore, within said thirty (30) day period, Lessee shall restore said premises to the condition in which they existed at the commencement of this Lease, damage by the elements, fire, explosion or other casualty excepted, unless such damage occurs as a result of an act or omission of Lessee, its sublessees, agents or employees, in which event Lessee shall repair and restore said premises as aforesaid. -29- a Section 13.02 - City's Rights at Termination. Title to any and all improvements and property not removed by Lessee prior to the expiration of the aforesaid thirty (30) day period shall vest in City; provided, however, that City reserves the right to require Lessee to remove such improvements and property, the cost of which shall be borne by Lessee in the event City removes same on failure of Lessee to perform its obligation hereunder. City also reserves the right to charge a reasonable rental for any period of continued occupancy by Lessee after cancellation or termination of this Lease; provided, however, that no charge shall be made to Lessee if Lessee shall remove its property from the Exclusive Leased Premises within the aforesaid thirty (30) day period. ARTICLE XIV GENERAL PROVISIONS Section 14.01 - Other Ordinances. This Lease supersedes all prior ordinances and any amendments thereto passed by the City Council of City and which pertain to rental rates and landing fees at the Airport. Section 14.02 - Arbitration. In any event, and notwithstanding any provisions made in this Lease, City and Lessee agree to submit to arbitration any question or dispute, except nonpayment of rentals, fees or other charges, arising between said parties and requiring an interpretation of any term, condition or covenant herein contained, or concerning any matter of compliance or noncompliance with the terms of this Lease. Before submitting any question or dispute to arbitration, City and Lessee shall each select one arbitrator and the two so chosen shall then select a competent and disinterested third arbitrator; and the three arbitrators collectively shall then consider the question or dispute submitted to them in writing by the parties hereto. The decision in writing of any two arbitrators shall determine the particular question or dispute under consideration. The parties hereto shall bear equally the expense of said arbitration. -30- � : 9 Section 14.03 - Nondiscrimination. Neither the Lessee, its agents or employees shall discriminate in any manner prohibited by Part 15 of the Federal Aviation Regulations against any person or class of persons because of age, sex, race, color, religion or national origin in providing any services or in the use of any of its facilities provided for the public. Lessee shall also conduct is activities in accordance with the requirements of Section 504 of the Rehabilitation Act of 1973, and agrees that no qualified handicapped person shall, solely by reason of his or her handicap, be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination in connection with such activities. The Lessee further agrees to comply with such enforcement procedures as the United States might demand that the City take in order to comply with the Sponsor's Assurances. Lessee also shall not discriminate against any employee or applicant for employment because of age, sex, race color, religion or national origin, nor shall Lessee discriminate on the basis of handicap against any qualified handicapped person who is either an employee or any applicant for employment with the Lessee. Lessee further agrees to take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their age, sex, race, color, religion or national origin. Such action shall include, but not be limited to, employment, upgrading, demotion, transfer, recruitment, layoff, rates of pay or other forms of compensation, and selection for training, including apprenticeship. Section 14.04 - Rules and Regulations. City shall have the right to and may from time to time adopt and enforce reasonable rules and regulations, which Lessee agrees to observe and obey, pertaining to the use of the Airport, public terminal building and appurtenances, provided that such rules and regulations shall not be inconsistent with rules, regulations or orders of the Federal Aviation Administration pertaining to aircraft operations at the Airport, or with the procedures prescribed or approved -31- from time to time by the Federal Aviation Administration pertaining to the operation of Lessee's aircraft at the Airport. Section 14.05-- Interpretation of Lease. Nothing in this Lease shall be construed or interpreted in any manner whatsoever as limiting, relinquishing or waiving any rights or ownership enjoyed by City in the Airport property, or in any manner waiving or limiting City's control over the operation, maintenance, improvement or alteration of Airport property, or in derogation of such governmental rights as City possesses, except as specifically provided for herein. Section 14.06 - Invalid Provisions. In the event any covenant, condition or provision herein contained is held to be invalid by any court of competent jurisdiction, the invalidity of any such covenant, condition or provision shall in no way affect any other covenant, condition or provision herein contained; provided that the invalidity of such covenant, condition or provision does not materially prejudice either City or Lessee in their respective rights and obligations contained in the valid covenants, conditions or provisions of this Lease. Section 14.07 - Sponsor's Assurances. This Lease shall be subject to the terms of the City's Sponsor's Assurances Agreement, as amended. City represents that none of the provisions of this Lease violate any of the provisions of said Sponsor's Assurances, as amended. Section 14.08 - Consent Not to be Unreasonably Withheld. Whenever consent is required hereunder by either City or Lessee, such consent is not to be unreasonably withheld or delayed for an unreasonable period of time. Section 14.09 - Redelivery of Premises. Lessee shall, upon termination or cancellation of this Lease, quit and deliver up the Exclusive Leased Premises to City peaceably, quietly and in the condition in which they existed at the commencement of this Lease, damage by the elements, fire, explosion or other casualty excepted unless such damage occurs as a result of an act or omission of Lessee, its sublessees, agents or employees. -32- Section 14.10 - Holding Over. In the event Lessee remains in possession of the Exclusive Leased Premises after the expiration of this Lease without any written renewal thereof, such holding over shall not be deemed as a renewal or extension of this Lease, but shall create only a tenancy from day to day which may be terminated at any time by City subject, however, to the rights set forth in Article XIII hereof. Section 14.11 - Inspection. City shall have the right at all reasonable times to enter upon the Exclusive Leased Premises to inspect said premises, to observe the performance by Lessee of its obligations hereunder, and to do any act which City may be obligated or have the right to do under this Lease. Section 14.12 - Nonexclusive. It is hereby agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right prohibited by Section 308 of the Federal Aviation Act of 1958, 49 U.S.C.S. 51349, as amended, and City reserves the right to grant to others the privilege and right of conducting any one or all of the aeronautical activities listed herein, or any other activity of an aeronautical nature. Section 14.13 - Lease Made in Texas. This Lease has been executed in and shall be construed in accordance with the laws of the State of Texas. Section 14.14 - Successors. This Lease shall bind and inure to the benefit of any successor of City and any successor, assignee or sublessee of Lessee. Section 14.15 - Headings. The article and section headings contained herein are for convenience in reference and are not intended to define or limit the scope of any provision of this Lease. Section 14.16 - Time of Essence. Time is of the essence of this Lease. Section 14.17 - Notices. Notices to City provided for herein shall be sufficient if sent by certified mail, postage prepaid, and addressed to: Director of Aviation, Lubbock International Airport, Route 3, Box 389, Lubbock, Texas 79401, and notices to Lessee, if sent by certified mail, postage -33- prepaid, and addressed to: America West Airlines, Inc., 222 South ATrN: David A. Montano -Director -Properties Mill Avenue, Tempe, Arizona 85281, or to such other addresses as the parties may designate to each other in writing from time to time. This Lease shall be executed in triplicate and each executed document shall be deemed to be an original document. IN WITNESS WHEREOF, the Parties have hereunto set their hands this �a- day of 1987. ATTEST: LESSEE: CITY OF LUBBOCK, TEXAS _1,2 e -_,Ranette oyd, City Secretary S.C. McMINN, MAYOR APPROVED AS TO CONTENT: OA i 6A9r Mar in -Coffee irector of Aviation 'APPROVED AS TO FORM: Harold Willard, Assistant City Attorney ATTES -34- AMERICA WEST IRLINEt INC. l18 DO MONT TH, SENIOR VICE - PRE T OF OPERATIONS THE STATE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, a Notary Public in and for Lubbock County, Texas, on this day personally appeared B.C. McMINN, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same as the act and deed of the City of Lubbock and as Mayor, for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN TJNDER MY HAND AND SEAL OF OFFICE THIS day of %t rem 1987. Notary Public in and for Lubbock County, Texas My Commission Expires: S-0 -0 'q/ THE STATE OF COUNTY OF § BEFORE ME, a Notary Public in and for said County, Texas, on this day personally appeared DON MONTEATH, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated as the act and deed of America West Airlines, Inc. A�PAIVEN UNDER MY HAND AND SEAL OF OFFICE THIS day of oUQ 1987. &=mal nQ: L&Mhl Notary Public n and for rYb_rCCopo., q cttyy� My Commission Expires: -35- l ` :' .rte, • ' �_-'r ` :::�-_= __ � t� �-, Al f 21.4 1`: S matin 01i_�1a� ` Tjcketing queuing area _ r . • :� •sem '� EXHIBIT A AMERICA WEST EXCLUSIVE LEASE AREA TICKET COUNTER,OFFICE, & RESERVATION AREA MAIN LEVEL PLAN LUBBOCK INTERNATIONAL AIRPORT PAGE 1 Of 2 EXHIBIT A AMERICA WEST EXCLUSIVE LEASE AREA APRON LEVEL PLAN -.BAGGAGE & CARGO OPERATIONS LUBBOCK INTERNATIONAL AIRPORT PAGE 2 of 2 Page is too large to OCR.