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Patrick/Removal of old T-HangarTHE CITY OF KALISPELL, MONTANA Red Eagle Aviation Kalispell City Airport 1880 US Hwy 93 South Kalispell, MT 59901 Re: Removal of old T-Hangar by Aero Inn Dear Mr. Sands: The City of Kalispell has completed the negotiations for the sale of the National Guard Armory site to the Hilton Hotel Group and they are ready to start demolition of the site. Part of the new hotel and convention center site will include a sizeable parking lot to accommodate the hotel guests and the potential convention guests. To accommodate the parking facilities, the City of Kalispell will be removing the gray metal T-Hangar at the north end of the property you are currently occupying. This will necessitate a reduction in the amount of lease payments you currently make to the City Airport Department. We will contact you in the near future to review this reduction with you. In the meantime, please advise the tenants in the T-Hangar that it must be vacated NLT July 31St 2006 as it is scheduled for demolition or salvage the first week of August. Please feel free to contact me on this matter, should you have any questions. Kindest regards, Jim Patrick