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expenses when requested; and <br />h. all fees collected far the use of the airport shall be reasonable and <br />nondiscriminatory. The proceeds from such fees shall be used solely for the <br />development, operation and maintenance of the airport or navigational facility; <br />and <br />an Airport Fund shall be established by resolution, order or ordinance in the <br />treasury of the Sponsor, or evidence of the prior creation of an existing airport <br />fund or a properly executed copy of the resolution, order, or ordinance creating <br />such a fund, shall be submitted to the State. The fund may be an account as part of <br />another fund, but must be accounted for in such a manner that all revenues, <br />expenses, retained earnings, and balances in the account are discernible from <br />other types of moneys identified in the fund as a whole. All fees, charges, rents, <br />and money from any source derived from airport operations must be deposited in <br />the Airport Fund and shall not be diverted to the general revenue fund or any <br />other revenue fund of the Sponsor. All expenditures from the Airport Fund shall <br />be solely for airport purposes. Sponsor shall be ineligible for a subsequent grant <br />or loan by the State unless, prior to such subsequent approval of a grant or loan, <br />Sponsor has complied with the requirements of this subparagraph; and <br />j. the Sponsor shall operate runway lighting at least at low intensity from sunset to <br />sunrise; and <br />k. insofar as it is reasonable and within its power, Sponsor shall adopt and enforce <br />zoning regulations to restrict the height of structures and use of land adjacent to or <br />in the immediate vicinity of the airport to heights and activities compatible with <br />normal airport operations as provided in Tex. Loc. Govt. Code Ann. Sections <br />241.001 et seq. (Vernon and Vernon Supp.). Sponsar shall also acquire and retain <br />avigation easements or other property interests in or rights to use of land or <br />airspace, unless sponsor can show that acquisition and retention of such interest <br />will be impractical or will result in undue hardship to Sponsor. Sponsor shall be <br />ineligible for a subsequent grant or loan by the State unless Sponsor has, prior to <br />subsequent approval of a grant or loan, adopted and passed an airport hazard <br />zoning ordinance or order approved by the State. <br />2. The Sponsor, to the extent of its legal authority to do so, shall save harmless the State, the <br />State's agents, employees or contractors from all claims and liability due to activities of <br />the Sponsor, the Sponsor's agents or employees performed under this agreement. The <br />Sponsor, to the extent of its legal authority to do so, shall also save harmless the State, the <br />State's agents, employees or contractors from any and all expenses, including attorney <br />fees which might be incurred by the State in litigation or otherwise resisting claim or <br />liabilities which might be imposed on the State as the result of those activities by the <br />Sponsor, the Sponsor's agents or employees. <br />Page 4 of 12 <br />AVN4301.DOC (8/2008) <br />