Amendment 1 for Grace Lease

AMENDMENT NO. I
TO LEASE AGREEMENT
BETWEEN
THE TOWN OF WICKENBURG
AND
JOHN GRACE
FOR LEASE OF LAND
AT WICKENBURG MUNICIPAL AIRPORT

This Amendment is entered into between the Town of Wickenburg, an Arizona
Municipal Corporation (“Wickenburg” or “Landlord”) and John Grace (“Grace” or “Tenant”) to
amend and renew the Lease dated July 30, 2004 (“Lease”),

RECITALS:

1, Landlord and Tenant entered into the Lease related to leasing one (1) parcel of
land at the Wickenburg Municipal Airport for the construction and use of aircraft
hangars on July 30, 2004;

2. The Lease term expired on January 19, 2024, and the parties desire to amend the
Lease to confirm that there was no lapse in tenancy and to extend the Lease for a
new twenty (20) year term beginning on January 19, 2024; and

3. The parties further desire to amend the Lease to update the annual rental rate from
Eight Hundred Sixty-Hight Dollars ($868.00) to One Thousand Two Hundred
Ninety-Six Dollars ($1,296.00), effective January 19, 2024; and

4. The parties also wish to add a new lease provision clarifying that it shall be a
material breach of the Lease if the Tenant fails to maintain a current certificate of
insurance naming Wickenburg as an additional insured, and that such breach may
be grounds for termination of the Lease; and

5. The parties also desire to amend the Lease to provide that either party may
terminate the Lease for convenience upon one hundred twenty (120) days’ prior
written notice to the other party; and

6. Landlord and Tenant desire to renew and amend the Lease as hereinafter set forth.

NOW, THEREFORE, in consideration of the foregoing premises and mutual promises
and agreements of the parties, Landlord and Tenant agree to amend the Lease as follows:

1. Paragraph 3.1 is amended to read as follows:
The term of this Lease shall be for twenty (20) years, commencing on

the 19* day of January 2024, and ending on the 19" day of January,
2044, unless sooner terminated as provided herein.

2. Paragraph 5.1 is amended to read as follows:

Tenant owns the structure and shall pay, without notice and free from
all claims, the annual rent in the amount $1,296.00 for the ground that
is leased from the Town of Wickenburg as described in Exhibit “A.”
This amount may be adjusted periodically but not more often than
once every two years to reflect changes in the market. Market rate
will be calculated by establishing an equalized rent for the Grace
Hanger. The equalized rent is used to establish an equitable rate for
the ground lease and is calculated on the per square foot rent amount
charged for hanger space by Grace or its successor, times the area of
the Grace Hanger times thirteen percent (13%). Grace owns the
structure. Grace pays the Town 13% of the gross rent collected from
the rental of its hangers.

3. A new Paragraph 14.5 is added to read as follows:

Failure by Tenant to maintain the required insurance coverage and to
timely provide Landlord with proof of such coverage shall constitute a
material breach of this Lease. In the event of such breach, Landlord
may terminate this Lease upon written notice to Tenant, in addition to
pursuing any other remedies available under law or in equity.

4. A new Paragraph 24.2 is added to read as follows

Notwithstanding anything stated herein to the contrary, either
Landlord or Tenant may terminate this Lease for any reason, in their
sole discretion and without cause, by providing the other party with
not less than one hundred twenty (120) days’ prior written notice of
termination. Upon the effective date of such termination, Tenant shall
vacate the Premises and return possession to Landlord in accordance
with the terms of this Lease. Such termination shall not relieve either
party of any obligations accrued prior to the effective date of
termination.

All other provisions of the Lease shall remain unchanged.

IN WITNESS WHEREOF, the Parties have executed this Amendment to the Lease as of
the day last written below.

LANDLORD: TENANT:

By: By: a hn WS, C2
om Grace

Its:

Date: Date: t- \% . 2025"

ATTEST:

Amy Brown, MMC, Town Clerk

APPROVED AS TO FORM:

Trish Stuhan, Town Attorney
Pierce Coleman PLLC

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