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Airlinesc!c79270HANGARLEASEBETWEENEAGLECOUNTYREGIONALAIRPORTANDAMERICANAIRLINESTHISLEASEismadeandenteredintothisddayof_______________,1997,effectiveAugust23,1996,byandbetweentheCountyofagIe,’StateofColorado,abodycorporateandpolitic,byandthroughitsBoardofCountyCommissioners,hereinafterreferredtoasthe“Lessor,”and,AmericanAirlines,Inc.,acorporationauthorizedtodobusinessintheStateofColorado,hereinafterreferredtoasthe“Lessee.”WITNESSETH:WHEREAS,LessorownsandoperatestheEagleCountyRegionalAirport(hereinafterreferredtoas“AIRPORT”)locatedinEagteCounty,Colorado;and,WHEREAS,LessorownsahangarlocatedonthenorthsideoftheAIRPORT;andWHEREAS,LesseeprovidescommercialairlineservicetoandfromtheAIRPORT;andWHEREAS,LessoriswillingtoleasetoLesseeaportionofthehangar;and,WHEREAS,LesseeisdesirousofleasingaportionofthehangarforthepurposeofmaintainingaircraftsupportequipmentownedandoperatedbyLessee;NOW,THEREFORE,forandinconsiderationofthemutualcovenantscontainedherein,thepartiesheretoherebyagreeasfollows:SECTIONONELEASELessorleasestoLesseethewesternone-halfofthehangar,asmoreparticularlydescribedonExhibitAattachedheretoandincorporatedherein(hereinaftersometimesreferredtoasthe“LeasedPremises”),includingegressoverandthroughtheremainingpartofthehangarasisreasonablynecessaryforLessee’suseoftheLeasedPremisesanddoesnotinterferewiththeCounty’s(oritstenant’s)useoftheremainingpartofthehangar.LesseeshallusetheLeasedPremisessolelyforthepurposeofstoringandmaintainingaircraftandground-handlingequipmentwhichareownedandoperatedbyLesseeandpurposesreasonablyincidentalthereto.G:\BOBWAIRPORT’MRHANGA.LSE1 CCByenteringintothislease,LessorgrantsnotightsorprivilegesfortheuseoftheAIRPORTtooperateanairlinebusinessoranypartthereoftoLessee,andLesseemayberequiredbytheCountytoenterintoauseagreementfortheconductofanairlinebusinessontheairport.SECTIONTWOPARKINGSPACELesseeshallprovideadequateparkingspacesontheAirportadequatefortheprescribeduseoftheLeasedPremises.Automobileparkingonthenon-exclusivegroundspaceontheAIRPORTshallbeonlyinareasapprovedbytheAirportManager.IftheLessee,atanytimeduringthedurationofthislease,cannotprovideadequateparking,LesseeshallleaseorlicensefromLessoradequateparkinglocatedneartheLeasedPremisesorinsuchotherreasonablelocationasmaybedesignatedbytheLessor.AtsuchtimearrangementsforadequateparkingaremadebetweentheLessorandLessee,LessorhastherighttoincreasethetentinproportiontotheadditionalareautilizedbytheLesseeforthepurposeofprovidingadequateparking.SECTIONTHREERIGHTOFINGRESSANDEGRESSLesseeshallhaverightofingresstoandegressfromtheLeasedPremisesforLessee,itsemployees,customers,andotherinvitees,subjecttosuchsecurityrulesasmaybeineffectattheAIRPORT.WithrespecttoanyaircraftorvehicleusingtheLeasedPremises,adequateaccessto,andmaneuveringroominfrontofthehangarwillforeverandatalltimesbeprotectedduringthetermofthislease.SECTIONFOURTERMTheinitialtermofthisleaseshallbeone(1)yearcommencingonAugust23,1996,andendingonAugust22,1997,andthetermshallbeautomaticallyrenewableeachyearthereafterunlessterminatedbywrittennotice,atleastsixty(60)dayspriortotheannualexpirationdatehereof.ThereshallbenomorethantwosuchautomaticrenewalsandundernoconditionswillthisleaseextendbeyondAugust21,1999.G:\BOBWW\AIRPORT’AIVffiHANGA.LSE2 CCSECTIONFIVERENTALSANDCHARGESTherentforthetermofthisleaseis($4.00persquarefootx1,620squarefeet)SIXTHOUSANDFOURHUNDREDEIGHTYDOLLARSANDNOCENTS($6,480.00).LesseeagreestopayLessortherenthereunderinaonelumpsumpriortothefirstdayoftheterm.Thetentforrenewaltermsshallincreasefivepercent(5%)annuallyandshallbedueandpayableonthefirstdayofeachrenewalterm,asfollows:August23,1997-August22,1998$6,804.00August231998-August22,1999$7,144.20Earlyterminationofoftheleasebyeitherpartyshallnotconstitutegroundsforprorationoftherentduefortheleaseterm.Inadditiontotherent,Lesseeshallbesolelyliableforalltelephoneinstallationandtelephoneservices.SECTIONSIXTAXESANDASSESSMENTSLesseewillpayallrealandpersonalpropertytaxassessments,generalandspecial,andallotherimpositions,ordinaryandextraordinary,ofeverykindandnaturewhatsoever,leviedorassessedupontheLeasedPremises.SECTIONSEVENMAINTENANCEANDUTILITIESLesseeshallprovideforandsupply,atitsexpense,alljanitorservicewithrespecttotheLeasedPremisesandanytelephoneinstallationortelephoneservicesLesseerequires.Lessorshallpayforallheat,light,gas,andelectricityinstallationandservicesfeesusedbyitonorinconnectionwiththeLeasedPremises.TherearenowaterorsewerservicesavailableintheLeasedPremises.LesseeshallprovideexteriorsnowremovalontheDemisedPremisesoftheI..esseeassoonaspracticable.Duringthetermofthisleaseandanyrenewalthereof,LessorshallmaintainthehangaringoodrepairaccordingtothestandardsestablishedforsimilarbuildingsandpremisesunderLessor’scontrolattheAIRPORT.G:\BOBWJP\A1RPORVA1vffiHANGA.LSE3 0SECTIONEIGHTRULESANDREGULATIONSLesseeagreestoobserveandobeyallAIRPORTRulesandRegulations,includingtheSecurityPlan,asmaybeamendedorchangedfromtimetotime,relatingtotheuseoftheAIRPORTortotheLeasedPremises;provided,however,thatsuchrulesandregulationsshallbeconsistentwithsafetyandwithrules,regulations,andordersoftheFederalAviationAdministrationwithrespecttotheoperationofLesseeattheAIRPORT.SECTIONNINEDAMAGEORDESTRUCTIONOFHANGARIfthehangarispartiallydamagedbyfire,theelements,thepublicenemy,orothercasualty,suchhangarshallberepairedwithduediligencebyLessoratitsowncostandexpense.Ifthedamageissoextensiveastorendersuchhangaruntenantable,butcapableofbeingrepairedinninety(90)days,thehangarmayberepairedbyLessoratitsowncostandexpense,andtherentpayablehereundershallbeceaseuntilsuchtimeasthehangarshallbefullyrestored.Ifsuchhangariscompletelydestroyedorissodamagedthatitwillremainuntenantableformorethanninety(90)days,Lessormayatitssolediscretioncanceltheleaseandnofurthercontractualobligationsshallexist,andtherentpaidhereundershallbeapportionedtothedateofthedamage.IntheeventtheAIRPORTisrendereduntenantableorunusable,thereshallbereasonableandproportionateabatementoftherentals,fees,andchargesprovidedforhereinduringtheperiodthatthesamearesountenantableorunusable.SECTIONELEVENINSURANCELesseeshallprocureandmaintaininforceinsurancecovetingtheLeasedPremisesandLessee’sactivitiesthereininminimumamountsasfollows:1.Thefullmarketvalueofallairplanesandequipmentinthehangar.2.Publicliabilityinsuranceinareasonableamountasdeterminedfromtime-totimebytheLessorandLessee,nolessthan$750,000perpersonand$600,000peroccurrence.3.Lesseeshallbeinsuredforthefullreplacementcostofthehangarandassociatedimprovements.TheproceedsofanyinsuranceshallbeusedtoG:BOBWIP\AIRPORThkMRHANGA.LSE4 CCrepairanydamageordestructiontothehangar.Lessorshallbefurnishedwithaninsurer’scertificatenamingLessorasanadditionalinsuredandprovidingthatsuchinsuranceshallnotterminateorbecancelledwithoutfirstgivingLessoratleastten(10)dayswrittennoticeoftheimpendingterminationorcancellation;suchcertificatesshallbesupplieduponeachchangeofcoverageorrenewal.4.Workman’scompensationinsuranceasrequiredbythelawsoftheStateofColorado.SECTIONELEVENINDEMNIFICATIONOFLESSORLesseeagreestoindemnifyandholdharmlessLessoragainstallliabilityforinjuriestopersonsordamagetopropertycausedbyLessee’snegligentuseoforoccupancyoftheLeasedPremises;provided,however,thatLesseeshallnotbeliableforanyinjury,damageorlossoccasionedbythenegligenceofLessororitsagentsoremployees;andprovidedfurtherthatLessorshallgivetoLesseepromptandtimelynoticeofanyclaimmadeorsuitinstitutedwhichinanyway,directlyorindirectly,contingentlyorotherwise,affectsormightaffectLessee,andLesseeshallhavethetighttocompromiseanddefendthesametotheextentofitsowninterest.SECTIONTWELVETERMINATIONBYLESSORLesseeagreesthatifdefaultismadebyitinpaymentoftentwhendueandifsaiddefaultcontinuesformorethansixty(60)days,theLessormayelecttodeclarethisleaseforfeited,inwhicheventLesseeshallsurrenderpossessionoftheLeasedPremisespeacefullytotheLessor.IfLesseeshalldefaultinanyoftheothercovenantshereincontainedandshallcontinueinsuchdefaultforaperiodofninety(90)daysafternoticethereof,inwriting,fromtheLessor,theLessorshallhavetheelectiontodeclarethisleaseforfeitedandthereupontheLesseeshallsurrenderpossessionoftheLeasedPremisespeacefully.LesseeherebywaivesanydemandforthepossessionoftheLeasedPremisesintheeventoftheforfeitureofthislease,andagreesthatthewrittennoticeofdefaulthereinbeforeprovidedmaybemailedviacertifiedmailbysaidLessortosaidLesseeoritslegalrepresentatives,orassigns,tosuchaddressintheUnitedStatesasshallhavebeenlastfurnishedinwritingbytheLesseetotheLessor,andthereceiptthereofacknowledgedbysaidLessor.Ifthelesseeshallnothavesofurnishedanaddress,asabovespecified,thensuchnoticemaybeconspicuouslypostedforthirtyG:\BOBWIP\AIRPORPAIvfflIIANGA.LSE5 CVVV(30)consecutivedaysinthemainentranceorinfrontofthepremisesdemisedbythislease.ThegivingofsuchnoticeineitherofthewaysabovespecifiedshallconstituteagoodandsufficientnoticeforthepurposeofdeclaringadefaultofthisleaseunderthetermsandprovisionsthereofinallcaseswherebythetermsofthisleaseanoticeofdefaultisrequiredtobegivenbysaidLessor.SECTIONTHIRTEENSURRENDEROFPOSSESSIONOntheexpirationorotherterminationofthislease,Lessee’srightstouseoftheLeasedPremisesshallcease,andLesseeshallvacatethepremiseswithoutunreasonabledelay.Exceptasotherwiseprovidedinthisagreement,thefixtures,improvements,equipment,andotherpropertybought,installedorerectedbyLesseein,on,orabouttheLeasedPremises,including,butnotlimitedtopipes,pumps,wires,poles,heatingandairconditioningequipment,shallbedeemedtobecomethepropertyofLessoruponconclusionoftheleaseterm.AnyandallpropertynotremovedbyLesseewithinathirty(30)dayperiodaftertheexpirationoftheleaseshallthereuponbecomeapartofthelandonwhichitislocatedandtitletheretoshallthereuponvestinLessor.SECTIONFOURTEENVINSPECTIONBYLESSORDuringthetermhereof,theLessorshallhavethetighttoinspectsaidpremises,eitherbyitsAIRPORTManagerordesignatedemployees,atanyorallreasonabletimesuponpriornotificationofLessee.SECTIONFIFTEENASSIGNMENTANDSUBLETTINGLesseeshallnot,atanytime,assignitsrightsunderthisagreementwithoutthewrittenconsentofLessor;provided,however,thattheforegoingshallnotpreventtheassignmentofsuchrightstoanycorporationwithwhichLesseemaymergeorconsolidate.NoassignmentshallreleaseLesseefromitsobligationsundertheAIRPORTRulesandRegulations,AIRPORTMinimumStandards,orthisleaseandtopayanyandalloftherentalsandchargessetforthherein.G:\BOBWWA1RPORPAMRHANGA.LSE6 CSECTIONSIXTEENCOSTSOFLITIGATIONLesseecovenantsandagreestoandwiththeLessorthatincasetheLessorshall,withoutanydefaultonitspart,bemadeapartytoanylitigationcommencedbyoragainstthesaidLesseewithrespecttotheLeasedPremisesorimprovementsthereon,thentheLesseeshallandwillpayallcostsinconnectionwithsuchlitigationandthatsaidLesseeshallpayallcostsandreasonableattorneys’feeswhichmaybeincurredbysaidLessorinenforcingthecovenantsandagreementsofthislease.Allsuchreasonablecostsandattorneys’fees,whenpaidbysaidLessor,shallbecomeatonceafirstandvalidlienuponLessee’sinterestinthebuildingsandimprovementsuponsaidpremisesandupontheleaseholdestateherebycreated.SECTIONSEVENTEENNATIONALEMERGENCYIntheeventpossessionoftheLeasedPremisesandtheimprovementsthereonisassumedbytheUnitedStatesofAmerica,orotherauthorizedagency,underanyemergencypowers,therentdueunderthisleaseshallabatefortheperiodofsuchpossession.InsucheventtheLesseeshallnotberesponsibleforanyoftheothercovenantsinthisleaseuntilpossessionbytheUnitedStatesofAmericashallterminate.InthefurthereventthatLesseeshallbereimbursedbytheUnitedStatesofAmericaorotherauthorizedagency,foritsassumptionofpossession,thentherentalprovisionsofthisleaseshallremainineffect;butprovidedfurther,however,thatifsaidreimbursementislessthantheamountofrentalhereinprovided,theLesseeshallberequiredtopaytotheLessoronlysuchamountofreimbursementasitshallreceivefromtheUnitedStatesofAmericaorotherauthorizedagency.SECTIONEIGHTEENAIRPORTINSTRUMENTSANDIMPROVEMENTSLesseemayplaceinorontheLeasedPremises,withoutcosttotheLessor,instrumentsandequipmentsolongassaidinstrumentsorequipmentdonotinterferewiththeuseofthehangarbyLessorortheoperationoftheAIRPORT,andsubjecttothisSectionEighteen.LesseemaymakeimprovementstotheLeasedPremisesprovideditfirstobtainsLessor’swrittenconsentthereto,inLessor’ssolediscretion,andprovidedthatsuchimprovementsshallnotinterferewithorincreasethecostoftheuseoftheremainderofthebuildingofwhichtheyareapart,andprovidedthattheyshallberemovedatG:\BOBW1P\AIRPORVMRHANGA.LSE7 C0theexpirationorotherterminationoftheleaseandtheLeasedPremisesreturnedtotheirpre-existingconditionorshallreverttoLessor.SECTIONNINETEENSUBORDINATIONThisleaseshallsubordinatetotheprovisionsofanyexistingorfutureagreementbetweentheLessorandtheUnitedStatesofAmerica,relativetotheoperationormaintenanceoftheAIRPORT,theexecutionofwhichhasbeenormayberequiredasconditionprecedenttotheexpenditureoffederalfundsforthedevelopmentoftheAIRPORT.SECTIONTWENTYSIGNSNOsignshallbeplacedonthehangarwithoutthewrittenapprovaloftheAirportManager.SECTIONTWENTY-ONEADDrnONALCONDITIONSA.DISCRIMINATION.TheLesseeforitself,itspersonalrepresentatives,successorsininterest,andassigns,asapartoftheconsiderationshereof,doesherebycovenantandagreeOasacovenantrunningwiththelandUthat:1.Nopersononthegroundsofrace,colorornationaloriginshallbeexcludedfromparticipationin,deniedthebenefitsof,orotherwisebesubjectedtodiscriminationintheuseofsaidfacilities.2.Intheconstructionofanyimprovements,on,overorundersuchlandandthefurnishingofservicesthereon,nopersononthegroundsofrace,colorornationaloriginshallbeexcludedfromparticipationin,deniedthebenefitsof,orotherwisebesubjectedtodiscrimination.3.TheLesseeshallusethepremisesincompliancewithallotherrequirementsimposedbyorpursuanttoTitle49,CodeofFederalRegulations,DepartmentofTransportation,SubtitleA,OfficeoftheSecretary,Part21,NondiscriminationinFederallyassistedprogramsoftheDepartmentofTransportation-EffectuationofTitleVIoftheCivilRightsActof1964,andassaidRegulationsmaybeamended.G:\BOBWIF\AIRPORT\AMRHANGA.LSE8 CCB.ACCOMMODATIONS/SERVICES.Lesseeshallfurnishitsaccommodationsand/orservicesonafair,equalandnotunjustlydiscriminatorybasistoallusersthereofanditshallchargefair,reasonableandnotunjustlydiscriminatorypricesforeachunitorservice;providedthattheLesseemaybeallowedtomakereasonableandnon-discriminatorydiscounts,rebatesorothersimilartypeofpricereductionstovolumepurchasers.C.DEVELOPMENT.TheLessorreservestherighttofurtherdeveloporimprovetheAIRPORT,includinganypartthereofandfacilitythereon,asitseesfit,regardlessofthedesiresorviewoftheLessee,andwithoutinterferenceorhindrance.D.MAINTENANCE.TheLessorreservestheright,butshallnotbeobligatedtotheLessee,tomaintainandkeepinrepairthelandingareaoftheAIRPORTandallpublicly-ownedfacilitiesoftheAIRPORT,togetherwiththerighttodirectandcontrolaltactivitiesoftheLesseeinthisregard.E.SUBORDINATION.ThisteaseshallbesubordinatetotheprovisionsandrequirementofanyexistingorfutureagreementbetweentheLessorandtheUnitedStates,relativetothedevelopment,operationormaintenanceoftheAIRPORT.F.MODIFICATION/ALTERATiON.LesseeagreestocomplywiththenotificationandreviewrequirementcoveredinPart77oftheFederalAviationRegulationsintheeventanyfuturestructureorbuildingisplannedfortheleasedpremises,orintheeventofanyplannedmodificationoralterationofanypresentorfuturebuildingorstructureontheleasedpremises.G.EXCLUSIVERIGHT.ItisunderstoodandagreedthatnothinghereincontainedshallbeconstruedtograntorauthorizethegrantingofanexclusiverightwithinthemeaningofSection208(a)oftheFederalAviationActof1958,asamended.H.STRUCTURALCOMPLIANCE.AllimprovementstotheLeasedPremisesshallcomplywiththeEagleCountyBuildingCode,theAIRPORTMasterPlan,andthespecificationsincludedinthislease,andanyrevisionsoramendmentsthereof.AbuildingpermitshallnotbeissuedunlesssaidcomplianceisshowntothesatisfactionoftheLessor.HOLDHARMLESS.SaidLesseefurthercovenantsandagreesthattheLesseewillsaveharmlesssaidLessoratalltimesduringthecontinuationofthisleasefromalldamages,claims,fines,penalties,costsandexpenseswhatsoeverwhichmayresultfromanyworkman’scompensationclaim.G:\BOBWW\PJRPOWflAMRHANGA.LSE9 CCJ.NOTICES.Wheneveranynoticeorpaymentisrequiredbythisleasetobemade,givenortransmittedtothepartieshereto,unlessotherwisespecifiedherein,suchnoticeorpaymentshallbedeemedtohavebeengiven,ifenclosedinanenvelopewithsufficientpostageattachedtoensuredeliveryanddepositedintheUnitedStatesmail,addressedto:AirportManagerEagleCountyRegionalAirportPostOfficeBox850Eagle,Colorado81631tel.970-328-8246fax970-328-8247AmericanAirlines,Inc.Mfkl//---Pi3-J/_72t4J)(21tel.___________________faxc’t7c73IitNoticegivenbymailshallbedeemedgiventhethirdbusinessdayafterdeposit.Ifnoticealsoissimultaneouslygivenbyfacsimile,noticeshallbedeemedgiventhebusinessdayfollowingthefacsimiletransmission.NoticemaybegivenbypersonaldeliverytotheofficesdescribedaboveortotheLessee’sAIRPORTstationmanager,andshallbedeemedgivenatthetimeofdelivery.K.SUCCESSORS.Allcovenants,conditions,andrevisionsinthisagreementshallextendtoandbindthelegalrepresentatives,successors,andassignsoftherespectivepartieshereto.L.JURISDICTIONANDVENUE.ThisagreementshallbeconstruedunderthelawsoftheStateofColorado.JurisdictionandvenueoveranyactionarisingoutofthisleaseshalllieexclusivelyintheCountyCourtandDistrictCourtofEagleCounty,Colorado.M.SEVERANCE.Anycovenant,condition,orprovisionhereincontainedthatisheldtobeinvalidbyanycourtofcompetentjurisdictionshallbeconsidereddeletedfromthisagreement,butsuchdeletionshallinnowayaffectanyothercovenant,condition,orprovisionhereincontainedsolongassuchdeletiondoesnotmateriallyprejudiceLessororLesseeintheirrespectivetightsandobligationscontainedinthevalidcovenants,conditions,orprovisionsofthisagreement.G:\BO3WW\AIRPOR1AMRHANGA.LSE10 CUN.AMENDMENTS.Allamendmentstothisleasemustbemade,inwriting.Thewaiverofanybreachorconditionononeoccasionshallnotbedeemedawaiverofthedutyorconditionthereafter.0.ADDITIONALSERVICES.TheLessorshallhavenoresponsibilityorliabilitytofurnishanyservicestoLesseeotherthanthosespecifiedinthislease,butLesseemaynegotiatewithLessorforanyadditionalservicesitmayrequestandshallpayforsuchadditionalservicestheconsiderationsonegotiated.WHEREFORE,thepartiesheretohaveexecutedthisagreementeffectiveasofAugust23,1996.LESSOR:COUNTYOFEAGLESTATEOFCOLORADOByandThroughItsBOARDOFCOUNTYCOMMISSIONERSAflEEIALESSEE:By:SecretaryG:\BOBW]P\A)RPORT’AMRHANGA.LSE11 CCEXHIBITALEASEDPREMISESTheLeasedPremisesisthatpartofthehangarparcel,theentiretyofwhichisdescribedmoreparticularlyhereon,whichdepictedonthesecondpage(map)ofthisexhibitA.Theentireparcelonwhichthehangarislocatedisdescribedas:CommencingatapointbeingCorner1,Tract56,asestablished1974(shownonMapofEagleCountyAirportPropertiesdatedJune7,1974);thenceS89-10-46W472.18’toapoint;thenceN70-31W339.59’toapoint;thenceN89-09W1523.57’toapoint;thenceN00-51E144.91toapoint;thenceN90-09W10.0’toapointbeingthepointofbeginning;thence71.5’alongthesamecoursetoapoint;thenceN00-51E45.0’toapoint;thenceS89-09E71.5’toapoint;thenceS00-51W45.0tothepointofbeginning;containing.072acres(3146.0sq.ft).G:\BOBWIP\AIRPORVAMRHANGA.LSE12 flI-U)AALUI0LU0zIz______Dz00LU-II00I•zLU•<0•<LUVLU—t)I-U)U