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Site A3-1 Lease Assignment/Sands to McElroyI I ASSIGNMENT OF HANGAR SITE LEASE The parties to this agreement are THE CITY OF KALISPELL, a municipal corporation (the City), TOM SANDS owner of T-Air LLC (the tenant) and McElroy Holdings LLC, a Montana Limited Liability Company (the new tenant) RECITALS The City and Tenant entered into a Hangar Site Lease for parcels of property located on the Kalispell City Airport, described as: A3-1 Ryan Lane at Kalispell City Airport also described on Exhibit A attached herein as follows: AGREEMENT In consideration of the mutual agreements herein contained, and for other goods and valuable consideration, the parties hereby agree as follows: 1: The Lease is hereby Assigned as follows: A: Interest and consideration in and to Hangar site lease to the New Tenant (McElroy Holdings LLC) which shall be effective as of February 29, 2008 (the Effective Date). B: The Tenant (Tom Sands) does hereby grant, assign and Transfer the Lease to the New Tenant. The New Tenant accepts ' this assignment of the lease and hereby assumes and agrees to be bound by and perform all the conditions, obligations, duties and liabilities required of the Tenant under Lease. C. The City hereby consents to the Assignment of said Lease to the New Tenant on the terms and conditions set forth in the assignment. The City hereby releases Tenant from any further duties, Obligations or liabilities. 2: The provisions of this agreement shall bind and inure to the benefit of the successor and assigns of the parties hereto. Signatures on Following Page This Agreement has been entered into as of the Effective Date. City: By: ,. C 1ZE7 r'- \k.A Tenant: T-Air LLC By: Sands Family Living Trust dated 2/17/07, Agent By: Thomas E. Sands, Trustee New Tenami- rauproy no ings By: y�� / 1 As: � il4.