Res 2215 9/5/1978I
RESOLUTION NO. oieJ/‘
RESOLUTION APPROVING RENTAL CAR LEASE AGREE-
MENT AT MUNICIPAL AIRPORT WITH WILLIAM HURLEY
NATIONAL LICENSEEJ .
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF
WICHITA FALLS, TEXAS, THAT:
That certain rental car lease agreement, a copy of which
is attached hereto, between the City of Wichita Falls and
William Hurley (National licensee) , under which Hurley shall
operate a rental car concession at Municipal Airport, is
hereby approved, and the City Manager is authorized to execute
the same for the City of Wichita Falls.
PAS.SED AND APPROVED this the 5th :day. of September., 1978.
MAYOR
ATTEST:
City Clerk
i,
Ali
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THE STATE OF TEXAS i
COUNTY OF WICHITA KNOW ALL MEN BY THESE PRESENTS:i1,
y.n•.
RENTAL CAR LEASE AGREEMENT
i
THIS AGREEMENT entered into this 1st day of July,.
1978, by and between the City of Wichita Fails , Texas , hereinafter called
City or Lessor, and William Hurley (National licensee)
hereinafter called Lessee.
WITNESSETH
WHEREAS, Lessor is the operator of an Airport located in Wichita
Falls , Wichita County, Texas, known as the Wichita Falls Municipal Airport;
hereinafter called Airport; and,
WHEREAS, passenger automobile rental services at the Airport are
essential for proper accommodation of passengers arriving and departing
from said Airport; and,
WHEREAS, the City desires to make said services available at the
Airport; and,
WHEREAS, Lessee is desirous of operating a rental car concession
at the Airport;. and, in connection therewith , proposes to furnish clean,
late model cars to be kept at the Airport for the use of airline passengers
and others.
NOW, THEREFORE, in consideration of mutual covenants , promises ,
and agreements herein contained, the said parties hereby convenant, promise
and agree with each other as follows :
ARTICLE I . •
Pren--- »ses
1 . Lessor does hereby grant to Lessee a non-exclusive rental. car
concession, along with others, at the airport and does demise and lease
to Lessee the space in the Terminal Building at the Airport outlined in
red on the plat attached hereto and designated as Exhibit "A" . The artip es
covenant and agree that the City, at its sole expense , after giving sixty9
60) days notice in writing, may relocate the Lessee' s premises in the
in the Terminal Uuildiny if, in tnE? opinion of the Airport Manager, overall
service to• the public shall be improved by such relocation.
2. Lessor leases to Lessee two ready parking''`' ' • car p s paces , which
shall be used by Lessee for the parking of cars which are ready for delivery
to its car rental patrons . Lessee shall. provide markers for these ready car
parking spaces. • The Airport Manager will assign these spaces to Lessee.
3. Lessor leases to Lessee certain rental car storage spaces in
the storage area at the Airport. There are forty (40) storage spaces located
north of the terminal parking area. Ten storage spaces are allocated to a
Lessee. The assigned location will be decided by the four Lessees concerned, •
through mutual agreement.
4. The location of the ready car parking spaces and the rental car
storage-spaces -are-shown on Exhibit "B".
5. Included in the rights granted is that of arranging at the Air-
port for reservation services for outgoing passengers using the airport for
use of such passengers in making reservations at a destination where automobile
rental service is furnished by Lessee or members of the system to which Lessee
belongs .
ARTICLE II .
Term
Subject to earlier termination as hereinafter provided, the term of
this agreement shall be for a period of f ive. (5) years , commencing on the
first day of July, 1978, and terminating on the 30th day of June , 1983.
ARTICLE III .
Surrender of Possession
No notice to cease operations or to quit possession of the leased
premises at the expiration date of the Term of this Agreement shall be neces-
sary. Lessee convenants and agrees that at the expiration date of the Term
of this Agreement, or at the earlier termination thereof, it will peacefully
surrender possession of the Leased Premises and any improvements thereon, in
good 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
Premises with or without due process of law.
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ARTICLE IV.
dental
1. Lessee agrees to pay an annual concession fee for the
rights and privileges herein granted by the City, . as follows :
A minimum concession fee of $400. 00 per month for
the first year of the lease; for each of the
remaining years such minimum concession fee shall
be adjusted in proportion to the increase or
decrease in the combined gross revenues of all
Airport rental car concessions over the preceding
twelve (12) month period, provided that such
increase or decrease shall not exceed ten percent
10%) ; or,
ten percent (10%) of the Lessee ' s annual gross
revenues as herein defined, whichever is greater.
2. Lessee shall submit by the twentieth (20th) day following each
month of operation hereunder, an accurate statement of the Gross Revenues
for the preceding month and simultaneously therewith shall pay the City the
greater of 1 ) Ten Percent of the Gross Revenues 2) 1/12th of the then
applicable Minimum Annual Concession Fee. The aforementioned statement of
Gross Revenues shall be certified by a responsible officer of the Lessee.
3. Within sixty (60) days after the close of each contract year
hereunder, Lessee shall furnish to City a sworn statement, certified by an
independent Certified Public Accountant who shall not be a member of Lessee's
firm or staff, showing the total of Gross Revenue at the Airport for said
contract year. If the aggregate payments made for any contract year hereunder
shall exceed the greater of 1 ) the Minimum Annual Concession Fee, or 2) ten
percent (10%) of said Gross Revenues during such contract year, the excess
balance shall be credited to Lessee' s account and applied against one or more
of the next succeeding monthly payments during the next ensuing contract year,
if there is one, as City may .elect. The City shall repay such excess Conces-
sion Fee payments in cash to the Lessee if this Agreement shall be terminated.
4. Definition of Gross Revenue: "Gross Revenue" as used herein,
shall mean all time and mileage charges due and payable to the Lessee from
the operation of its automobile rental service at the Airport, but shall not
include sums recovered from insurance or otherwise for damage to automobiles
or other property, nor any amounts paid by customers to Lessee and separately
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billed
as additional charges for waiver by Lessee of its rights to recoverdamagesfromitscustomersfordamagestoordestructionofthevehiclerented,
nor any tax levied by any competent governmental authority whichisseparatelystatedandcollectedfromLessee' s customers. Except asotherwiseprovidedherein, Gross Revenues shall include all time and mileagechargesdueandpayabletotheLesseeonallvehicleswhicharee
or taken by a customer from the Airport regardless of what
re rented at
lishment of Lessee may receive the automobile or the rent
section or estab-
t
of -the automobile by the customer inc luding vehicles
e11t th.refor upon return
les taken by a customer inexchangeforavehicle
originally rented at or taken by customer from theAirport.
5. It is understood that Lessee may possess a U-Drive-to operate from other locations within the City and
It franchise
operation are excluded from Lessee 's Gross
y that revenues from such
Revenues . It shall be expresslyunderstood, however, that revenues derived from the rental of anyy vehicle
taken from the Airport and delivered to a customer off the
included in Lessee' s Gross Revenues , regardless the
Airport shall be
of the location at which such
vehicle is delivered if the rental contract is consummated at the Airport.6.
The Lessee shall have the right to conduct part of its operationonacreditbasis ; provided, however, the risk of such operation shall bebornesolelybytheLessee; and the Lessee shall report all income, bandcredit, monthlyinitsmonthl statements of Gross Revenue.
oto cash
Lessee's customers for such things as out-of-pocket
Credit given to
p cket purchase for gas , oil , oremergencyservices , and deposits regardless of where made, shall be includedincomputingGrossRevenues.
7. The term "Gross Revenues" , as used herein, shall
addition to the above, amounts which would be due to
also include , in
o the Lessee on the basisoffurnishinganautomobiletotheusercompletewithmotorfuel , normalprimaryliabilityinsurancecoverage, and other items customarilyotherautomobilerentalagenciesattheAirport.
supplied by
8. Any moneys recovered from insurance companies bdamagetoLessee's property,
Lessee for
y or sums recovered through insurance or otherwisefordamagetovehicles , shall be excluded from Gross
County, and municipal sales taxes or other
Revenues . Federal , State,
similar taxes separately stated and
collected from. customers now or hereafter levied or imposed
excluded from "Gross Revenues". No deductions
shall likewise be
uctiohs shall be allowed from "Gross
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Revenues" for the payment A,f State franchise taxes or taxes
levied on concession activities, facilities, equipment or real or
personal property of Lessee nor for the payment Of such City '
ad valorem taxes and license fees as required by the operation of
a Rental Car franchise at a location other than the Airport. The
Lessee may grant local or national discounts to customers .
4 9 . Tn addition .to the annual concession fey: , Lessee
shall pay City .for rental ,of its car storage spaces at the rate
of $4 . 00 per space Per month 'and its ready car spaces at the rate
of $5. 00 per space per month, which shall be paid monthly by the
20th day following each month cf 'the lease.
ARTICLE V.
Records
1 . Lessee shall at all times during the term hereof keep true,
accurate, complete and auditable records , books and accounts, in a form
satisfactory to the City, of all business conducted by it at the Airport,
and Lessee further agrees that the City shall have the right, through its
duly authorized agents or representatives , to examine and audit all perti-
nent books, accounts and records at any and all. reasonable times for the
purpose of determining the accuracy of the reports required to be made by
the Lessee under the provisions of this Agreement. All airport rental con-
tracts shall be executed on appropriately marked and numerically sequenced
forms of Lessee.
2. Articles or services furnished to any person in payment of ex-
change for value received from such other person , shall be deemed to be a
cash sale at market value within the meaning of this Article. The making of
any willfully false reports on revenue by Lessee shall be grounds for the
immediate cancellation and termination of this Agreement at the option of •
the City. .
ARTICLE VI . '
Taxes , Fees , Licenses
Lessee covenants and agrees to pay promptly all lawful general
taxes , special assessments , excises , license fees , permit fees , and utility ,
service charges of whatever nature, applicable to its operation at the Air-
port and to take out and keep current all licenses , municipal , state or
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federal , required for the conduct of its business at and upon the Airport,
and further covenants and agrees not to permit any of said taxes , assess-
ments , excises, fees or charges to become delinquent.
ARTICLE VII.
Late Rental Penalty
All unpaid rent and fee money due the City hereunder shall bear a
service charge of one and one-half percent (lZ%) per month if same is not
paid and received by the City within ten (10) days after its due date, and
Lessee agrees that it shall pay and discharge all costs and expenses includ-
ing attorney's fees incurred or expended by the City in collection of said
delinquent amounts due.
ARTICLE VIII.
Performance Bond
Lessee agrees to furnish a bond to the City in the principle
amount of Two Thousand Dollars ($2,000.00) . Such bond shall guarantee the
payment of the concession fee, rent and Lessee's other obligations to pay
as provided herein. The bond shall be in .a form agreeable to the City and
shall be kept in full force and effect .during the term hereof.
ARTICLE IX
Exclusive Rights
1 . It is understood and agreed that nothing herein contained shall
be construed to grant or authorize the granting of an exclusive right,
except that Lessee has the exclusive right to use the premises leased herein.
2. City further agrees that during the life of this Agreement it
will not execute a similar Agreement for like services and facilities with
any other company or organization on terms more advantageous than those
accorded to Lessee. This covenant not to grant more favorable terms to
others is hereby acknowledged by the City and Lessee to be limited to 1 ) the
percentage of gross revenues to be paid as a concession fee, 2) the minimum
annual concession fee established by this Agreement, and 3) the number and
size of counter areas in the Terminal Building.
ARTICLE X.
Minimum Standards
1 . Lessee covenants and agrees it shall be open for and shall conduct
business and furnish services at the Airport during the hours of regularly
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scheduled air service to the Airport or at such lesser times that Lessee
and the Airport Manager shall mutually agree upon as being sufficient to
properly serve the needs of the public.
2. Lessee shall furnish high quality, prompt and efficient ser-
vice hereunder adequate to meet all ,reasonable demands therefor at the Air-
port; shall furnish said services on a fair, equal and non-discriminatory
basis to all categories of qualified users thereof; and shall charge fair,
reasonable and non-discriminatory prices charged by concessionaires at
airports of comparable passenger enplanements .
3. Lessee shall prepare a schedule of prices and rates. Such
schedules shall be filed in the office of the Airport Manager and printed
copies of such schedule, shall be available at the Airport at all times for
the use of Lessee's customers.
4. Lessee shall provide and maintain the rental automobiles made
available hereunder at its sole expense, in good operative order, free from
known mechanical defects , and in a clean, neat and attractive condition
inside and outside.
5. Lessee shall base at the Airport only new or late model auto-
mobiles in such number as is required by the demand for same.
6. A copy of the rental agreement form covering the use of Lessee's
automobiles rented at or delivered to the Airport shall at all times be kept
on file in the office of the Airport Manager.
7. Lessee covenants that it shall take all reasonable measures in
every proper manner to maintain , develop and increase the business conducted
by it hereunder, the Lessee shall not divert or cause or allow any business
to be diverted from the Airport. Any action taken by Lessee to induce its
patrons to rent or receive vehicles in such a manner and at such places so
as to diminish the Gross Revenue of the Lessee under this Agreement shall
constitute a material breach hereof and a cause for the termination of this
Agreement by the City,
8• Lessee' s personnel performing services hereunder shall be dis-
I.
tinctively uniformed, neat, clean and courteous. The Lessee's oral solicita
tion of business At the Airport shall be confined to its leased area and
Lessee shall prohibit and restrain its agen s , servants and employees from
loud, noisy, boisterous' or otherwise objectionable promotion of the services
offered, and upon objection from the Airport Manager concerning the conduct •
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or appearance of any such persons , shall immediately take all steps
necessary to remove the cause of the objection.
9. Lessee shall not commit any nuisance on the Leased Premises
or Airport nor do or permit to be done anything which may result in the
creation or commission of a nuisance thereon; nor install , maintain or
operate or permit the installation, maintenance or operation on the Leased
Premises of any vending machine or devices to dispense anyy products whatso-
ever without the written permission of the Airport Manager.
ARTICLE XI.
Maintenance and Improvements
1 . Lessee shall make no material removals , additions or alterations
to its Terminal Building leased premises without the prior written approval
of the Airport Manager. Lessee shall maintain in good repair and in neat
and clean condition all improvements , construction or furniture, furnish-
ings or equipment placed on such premises . Lessee shall be responsible for
the care of the area designated for its use and shall permit no damage to
existing improvements . No spikes , hooks , nails, or any other devices shall
be driven or screwed into the'walls , woodwork or other surfaces of the Terminal
Building leased premises.
2. Lessee agrees , at its own expense, to maintain the Terminal Build-
ing leased premises in a neat and orderly condition , free from all danger of
fire and personal injury and to refrain from doing anything to destroy or
damage the Terminal Building leased premises.
3. No sign or advertisement of the Lessee or oLhers shall be affixed,
kept_or distributed on any part of the Terminal Building leased premises
except only if such color, size, wording,. style and material and method of
attachment shall be first approved in writing by the Airport Manager. The
City reserves the right to remove, without notice to Lessee and at the expense
of Lessee , all signs or advertisements not having prior approval in writing.
A'All signs shall be in good taste and shall be for the purpose of either iden-
tifying the premises as being those of the Lessee or providing directions for
Lessee' s patrons. No advertisements or rate schedules of the Lessee shall be
posted to public view on the Terminal Building leased premises , except that
this prohibition shall not prevent the Lessee from displaying for distribution -
1
its pocket-sized printed brochures of rate schedules for distribution to the
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public. At the expiration of this Agreement, the Lessee shall remove all
its signs or advertisements and restore all points of attachment to conform Htotheappearanceandconditionofthesurroundingsurfaces.
ARTICLE XII .
Heating Air Conditioning and Janitorial Services
1 . City shall furnish heating and air-conditioning to the Terminal
Building leased premises in such degree as it is furnished to other
1
4 tenants
in the Terminal Building, provided that the City shall not be liable for anyY
failure to supply the same when such failure is not due to negligence on its
part. General area light will be furnished by the City through the fixturess
installed for the general lighting of the area of the, Terminal Buildingleasedpremises.
2. - City shall provide-janitor service for the leased premises in the
Terminal Building and shall provide for removal of trash and will keep such
area clean, neat and attractive.
ARTICLE XIII .
Indemnification
Lessee shall be solely responsible for the conduct of its operators,
agents , employees and representatives , and agrees to indemnify, defend, hold
and save the City, its authorized agents, officers , representatives and em
ployees , harmless from each and every claim and demand of whatever nature,
and against any and all penalties, liability and annoyance or loss , resulting
from claims or court action of any nature claimed to have arisen directly or
indirectly out of acts of Lessee, or its agents , servants or employees under
this Agreement or by reason of any act, omission or conduct of suchd person.
ARTICLE XIV.
Insurance
1 . Lessee agrees to maintain throughout the Term of this Agreement
the following motor v,ehicle ' li,ability insurance: '
Bodily Injury 100 ,000 each person
tli 300,000 each accident
Property Damage 25,000 each accident
2. Lessee shall provide such insurance at its own expense and suchr
insurance shall be placed with a company authorized to do business in the
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state of Texas. Such policies of insurance shall protect City and Lessee
against any and all liability for death, injury, loss or damage. against
which Lessee has elsewhere in this agreement undertaken to save and hold
the City and its authorized ,agents , officers , representatives and employees
harmless from and against. any and all penalties, liability and annoyance
and loss resulting from claims or court action of any nature and arising
directly or indirectly out of the acts of Lessee, its agents , servants,
guests , employees , business visitors or others under this agreement or by
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result of any act or omission of such persons.
3. The amounts of such insurance as specified above shall not be ;
deemed a limitation of Lessee's agreement to save and hold. the City harm-
less and if Lessee becomes liable for an amount in excess of the insurance,
Lessee will save and hold the City• harmless as the holder thereof. Copies
of all such policies of insurance shall be delivered to City.
ARTICLE XV.
City Agent
City hereby designates its Airport Manager, as well as its City
Manager and such official as he may designate, as its official representa-
tive, with the full power to represent City in all dealings with Lessee in
connection with the premises herein leased.
ARTICLE XVI .
Compliance with Rules & Regulations
Lessee shall , at its own expense and cost, comply with all Federal , •
State and local laws ,, rules, regulations or ordinances , now or hereafter in
effect, which are applicable to its operation at the Airport. Lessee reco -g
nizes that the Airport Manager is the representative of the City , and agrees
to cooperate fully with such official to promote the efficient conductct of
operations at the Airport.
ARTICLE XVII.
Inspection
City reserves. the right to enter upon the leased premises at any
reasonable time for the purpose of making any inspection of the physical
premises it may deem expedient to the proper enforcement of any of the
covenants or conditions of this Agreement.
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ARTICLE XVIII .
tea
NSSlmentcn
Lessee shall not assign or transfer this agreement nor any priv-i
ileges hereunder and shall not assign or sublet or mortgage all or any part ,.4
of the premises leased hereby, whether voluntarily or involuntarily,
out the prior written consent of the City. If Lessee, without securing
prior written approval of the City, attempts to effect such a transfer,
assignment, sublease or mortgage, or if a transfer occurs by operation of
law, City may terminate this agreement upon written notice to Lessee. If
control of Lessee's business or corporation is transferred to other parties
by virtue of the sale of stock, without the prior written consent of City,Y
this shall be considered an assignment of the lease, and City may terminate . • .
this agreement upon -written notice to Lessee.
ARTICLE XIX.
Suspension/ Termination
1 . Lessee understands and agrees that all rights , privileges and
interests acquired herein, following written notice of sixty (60) days ,
may be altered or finally terminated upon payment of just compensation to
Lessee, if such suspension or termination is found by City, acting in good
faith, to be necessary to secure federal financial aid for the development
of the Airport.
2. Should Lessee fail to pay the rent due hereunder within fifteen
15) days after same shall become due, or permit any insurance coverage
required under this agreement to lapse , City .shall have the option, without
any legal proceedings or notice, to declare this lease terminated, cancel the
same and re-enter and take possession of the premises , and in such event,
Lessee agrees to deliver possession of the same peaceably and relinquish all
rights incident thereto.
3. City shall have the right, but not the obligation , to terminate
this Agreement in its entirety immediately upon the happening of any of the
following events :
r a. Filing of a petition, voluntarily .or involuntarily, for
adjudication of Lessee as a bankrupt.
b. The making by Lessee of any general assignment for the
benefit of creditors .
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c. The failure by Lessee to perform, keep and observe any
and all of the terms , covenants, and conditions herein
contained on the part of the Lessee to be performed,
kept, or observed after the expiration of fifteen (15)
I
days fromyt the date written notice has been given to
Lessee by City to correct such default or breach (except,
however, failure of Lessee to provide insurance as re-
quired herein will give City the right to terminate this
lease immediately without the necessity of giving Lessee
15 days written notice) .
4. City may terminate this lease by written notice to Lessee in
the event of the assumption by the United States Government or any author-
ized agency-thereof-of the •operation, control or use of said Municipal Air-
port, Civil Terminal Building and facilities or any substantial part or parts
thereof in such manner as to prevent the City, for a period of at least ninety
90) days, from performance of its obligations under the terms , covenants and
conditions hereof to be performed, kept and observed by City.
5. No waiver by City at any time of any of the terms , conditions , or
covenants of .this Agreement shall be deemed or taken as a waiver at any time
thereafter of the same, or of any other terms , conditions , or covenants herein
contained, nor of the strict and prompt performance thereof by Lessee.
6. In the event that the United States Government or any of its
agencies shall occupy the airport or any substantial part thereof to such an
extent as to materially interefere with Lessee' s operation , or in the event of
destruction by fire or other cause of all or a material portion of the airport
or airport facilities , or if Lessee's operations shall for any reason , similar
or dissimilar, be materially interfered with for a period in excess of ninety90) days , or in the event of any national , emergency wherein there is a cur-
tailment, either by executive decree or legislative action , of the use of
motor vehicles or airplanes by the general public, or a limitation of the
supply of gasoline available for general use, then, and in any of those events ,
Lessee shall have the right upon written notice to Lessor to terminate thisr, .
agreement and Lessee' s further obligations hereunder, or at its option , to
suspend this agreement for the periods of such disability.
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7. Also, should Lessee lose his present franchise to operate a
Car Rental Service, or should his license or privilege of operating a rental
car service in the City of Wichita Falls be cancelled by the City , then
Lessee may, at its option, terminate this agreement as of the last day of
the month in which such occurs. •
ARTICLE XX.
Untenantable Premises
Lessee shall , in case of fire or• other casualty, give immediate
notice in writing to City, who shall thereupon cause the damage to be re-
paired forthwith, provided materials, supplies and labor are reasonably
available; if any portion of the premises is rendered unfit for occupancy,
the rent shall be apportioned for the period of time required to make the
repairs , according to the part of the premises , if any, which remains usable
by Lessee. If the entire building shall be destroyed, then within thirty
30) days after the fire or other casualty either Lessor or Lessee may cancel
this lease by notice in writing to the other, effective as of the date of the
mailing of the written notice, except that the rent shall be apportioned as
of the date of the fire or other casualty.
ARTICLE XXI.
Notification
Notice to City as herein provided shall be sufficient if written
notica .is served in person or otherwise sent ,by certified mail to the Airport
Manager, Wichita Falls Municipal Airport, Route 4, Box 8 , Wichita Falls ,
Texas 76301 , or to Lessee if written notice is served in person to
William Hurley or otherwise sent by certified
mail to Lessee at P . O. Box 1096 , Lawton, Oklahoma 73502
or at such other places as the parties may designate in writing.
ARTICLE XXII.
Invalid Provision
It is further expressly understood and agreed by and between the
parties hereto that in the event any covenant, condition or provision herein
contained is held to be invalid by any court of competent jurisdiction , the
nvalidity of any such covenant, condition or provision shall in no way
affect any other covenants , conditions or provisions herein contained;
provided, however, that the invalidity of any such covenant, condition or
provision shall not be construed so as to materially prejudice either
City or the Lessee in their respective rights and obligations contained in
the valid covenants, conditions or provisions in this agreement.
ARTICLE XXIII.
1 •
Headings
The article and paragraph headings are inserted only as a matter •
of convenience and for reference and in no way define , limit or describe
the scope or intent of any provisions of this lease.
IN WITNESS WHEREOF, the parties have caused this agreement to be
executed as of the day and year first above written.
CITY OF WICHITA FALLS
BY:
Cera d G. Fox, City ?fanae
ATTEST:
Wilma J. Thomas , City Clerk
APPROVED AS TO FORM:
H. P. Hodge, Jr. , City Attorney
William Hurley
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