Res 2017-058/approving a 19-month Airport Facility Lease Agreement with Coast Flight Management and Training, Inc

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2.04. The Lessee agrees to pay to the Lessor a fixed rental in the sum of $18,000.00 _per year for the entire Leased Premises during the Primary Term of this Lease. The annual amount for the fixed rental shall be paid in equal monthly installments in the amount of $1,500.00 each. The rental rate shall be increased by a flat ten percent (10%) in year three (3) of the Extension Term of the Lease.The Lessee,at its option,may make advance payments of up to one(1)year's fixed rentals, but there will be no discount for these payments. a. Method of Payment: Rent is payable to Airport Management by e-check. Airport Management reserves the right to require the form of payment of rent to be by check, certified or cashier's check, or money order. Cash is not an acceptable form of payment without the Airport Management's prior written consent. Rent may be paid online or physically at 4400 Airport Highway 21 or by mail to 1807 Airport Drive Suite 200, San Marcos, Texas 78666. 2.05. The monthly rent payment shall be due on or before the first day of the month.A payment shall be considered past due if,after the fifth(5th)day of the month in which the payment is due,Lessor has not received full payment during normal working hours at San Marcos Regional Airport. Payments submitted via United States Postal Service or any similar type messenger service are not considered paid on the date posted by said service. 2.06. Late Charges: Payments not received in full by 5:00 p.m.CST on the 5th day of the month in which it is due will be considered late, and a$15.00 per day late charge will be assessed. In addition to the foregoing late charges, Lessee shall reimburse Lessor for each check that is returned or not honored. 2.07. Except with the Lessor's prior written consent, Lessee will not be released from this Agreement for any reason—including but not limited to voluntary or involuntary job transfer,change of marital status, loss of co-tenant, loss of employment, bad health, or the sale or disposition of the any aircraft. Lessee is obligated to the terms and conditions of this Agreement, including the payment of rent, for the entire Primary Term, from the Commencement Date through the Expiration Date, and for each month thereafter(if any)until this Agreement is terminated. 2.08. In the event Lessee holds over after the expiration of this Lease, such hold over status will create a month-to-month tenancy. In this event, Lessee agrees to pay the rental amount set for the premises at the date of expiration of this Lease plus fifty (50%) percent, which is the holdover month-to-month tenancy rate. Said holdover tenancy will be subject to all other terms and conditions of this Lease. 2.09. The Lessee agrees to pay to the Lessor a monthly fee for the use of tie-down or any other Airport Facilities for aircraft, motor vehicles or any other equipment or items which are outside of the Leased Premises and under the custody and control of the Lessee or its employees, agents or customers. The Airport Facilities will be charged at the then-established standard rental or use fee prescribed by the Lessor. Page 3 of 17