Res 2014-051/Sublease of Airport property between Caroline Aviation, LLC and Richard Moreno

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Section 8. Payments by Corp Jet to the City. Corp Jet agrees to the pay the City a franchise fee in the form of a monthly amount equal to one percent (1%) of Corp Jet's gross income from all commercial activity at the Airport, excluding sales or services to federal, state or local governments or other tax exempt organizations or agencies. Corp Jet shall provide access to the City, upon reasonable notice, to all business records necessary to verify the amount of the fees and /or percentage rental due under this Lease. Payment is to be made within 10 days of the last day of the previous month and shall be based on Corp Jet's income during the previous month. If Corp Jet falls to pay any sum payable to the City under the terms of this Agreement when due, the interest at the maximum legal rate in the State of Texas shall accrue from the date on which the sum became due and payable. Section 9. Term. The term of this Agreement commences on March 17, 2014 and will terminate on the date the Sublease, or any extension of the Sublease, is terminated. Section 10. Use of Premises. The use of the Facility by Corp Jet shall be restricted to aviation purposes, unless otherwise approved in writing by Caroline and the City. Specifically, the Facility shall be used and occupied for the following business activity: aircraft engine maintenance and repair. Corp Jet shall not use the Facility for any other purpose without the advance written consent of Caroline and the City. Corp Jet shall use the Facility in good faith continuously for this purpose throughout the term of this Agreement. Corp Jet shall not leave the Facility vacant at any time, and shall keep the Facility open to the public for business during normal business hours. Section 11. Corp Jet Compliance with Caroline Obligations. Corp Jet agrees to comply with all obligations of Caroline in the City Lease with respect to the following: 1. Placing or keeping anything on the Facility or use of the Facility for any purpose which increases the insurance premium cost or invalidates any insurance policy carried on the Facility. 2. Risk of loss and damage for all property kept, stored, or maintained by it within the Facility. 3. Use of the Facility in any manner that results in waste of the Facility or constitutes a nuisance, or violates any statue, ordinance, rule or regulation that applies to the Facility. 4. Keeping the Property, including ramps, signs, sidewalks, service ways, and loading areas adjacent to the Property, neat, clean, and free from dirt and trash at all times. S. Storage of all equipment, materials, and supplies related to Corp Jet's activities. Outside storage Is specifically prohibited without the advance written consent of Caroline and the City. 6. Maintenance of the Facility in good and clean condition. 7. Compliance with all governmental laws, ordinances, and regulations that apply to the business operations on the Facility. 8. Securing the prior written consent of the City of any alterations, additions, or improvements to the Facility. Corp Jet acknowledges and agrees that all improvements, alterations, additions, and fixtures which are made or installed In or on the Facility shall remain upon and be surrendered with the Facility upon any termination of this Agreement, unless the City or Caroline requests their removal, In which event Corp Jet shall remove them and restore the