Res 2012-003 - Laserfiche WebLink

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City of San Marcos Airport 2.05. The LESSEE shall provide access to the LESSOR, upon reasonable notice, to all business records necessary to verify the amount of fuel flowage fees and /or percentage of gross receipts rental due under this LEASE. If this LEASE commences or terminates on a day other than the First (1sT) day of a month, all monthly rents and fees payable by the LESSEE for the First (1sT) month under this LEASE shall be prorated accordingly. 2.06. The LESSOR agrees that the revenue derived from this LEASE will be allocated toward maintenance and improvement of the AIRPORT. This requirement is not mandatory, however, unless it is required by existing indenture or agreement with the United States government. 2.07. If the LESSEE fails to pay any rent or any other sum payable to the LESSOR under the terms of this LEASE when due, then interest at the maximum legal rate in the State of Texas shall accrue from the date on which the sum became due and payable. 2.08. The Primary Term of this LEASE will commence on January, 2012 (the "Commencement Date ") and will extend for a period of ten (10) years. The Primary Term of this LEASE shall expire on January, 2022. LESSEE shall have the option to extend the term of this LEASE for up to four (4) additional periods of five (5) years each by giving written notice to LESSOR of such intention at least sixty (60) days before the expiration of the then current term thereof. The Term may not be extended i£ (1) the LEASE or LESSEE's right to possession of the Premises is terminated, (2) LESSEE assigns its interest in the LEASE or any portion of the Premises, (3) LESSEE fails to timely exercise the extension, or (4) LESSEE is in default under the LEASE at the time LESSEE seeks to extend the Term. 2.09. In the event LESSEE exercises its option to extend the term of the Lease as provided above, the rent shall be increased by a flat ten percent (10 %) for each such extension. Thus, for example, during the first option term, the rent shall be increased by ten percent (10 %) from the rent in effect on the last day of the Primary Term. During the second option term, the rent shall be increased by an additional ten percent (10 %) from the rent in effect on the last day of the first extended option term, and so forth. 2.10. LESSEE shall make available to CITY or Airport Manager within ten business days of any such request such books and records necessary, as determined by the City, to verify amounts payable under this Article. ARTICLE 3. USE AND CARE OF PREMISES Initials: Lessor Lessee !'