08/01/1978 Lease
AIRPORT AGREEMENT
TIllS CONTRACT OF LEASE is made and entered into on the 1st day of
Au,g~st _, 19 78 , by and betvJeen the County of Monroe, State of
Florl a, a polItical-subdivision of the State of Florida, hereinafter re-
ferred to as Lessor, and B & E Enterprises, a partnership organized and exist-
ing under the laws of the State of Florida, hereinafter referred to as Lessee.
WI T NESS E T H:
WHEREAS, Lessor owns an airport known as Key West International Airport
located in Monroe County, State of Florida, hereinafter called the "AIRPORT",
and,
WHEREAS, Lessee is engaged in the business of maintaining a Gift and
Sundry Shop, and
WHEREAS, Lessee desires to obtain certain rights, services and prlVl-
leges in connection with the use of the Airport and its facilities, and the
Lessor is willing to grant and lease the same to Lessee upon the terms and
conditions hereinafter stated,
NOW, THEREFORE, for and in consideration of the premises and of the
mutual covenants and agreements herein contained, and other valuable consi-
derations, Lessor does hereby grant and lease unto Lessee, and Lessee does
hereby hire and take from Lessor, certain premises, facilities, rights,
licenses, services and privileges in connection with and on the Airport, as
follows, to wit:
ARTICLE I - PREMISES
A. USE OF T'HE AIRPORT. Lessee shall be entitled to the use, in common
with others authorized to do so, of the Airport and appurtenances,
together with all facilities, equipment, improvements and services
which ha've been or may hereafter be provided at or in connection with
the Airport for common use in the operation of a Gift and Sundry Shop
and has the right to maintain a Gift and Sundry Shop within the lease-
hold described hereafter in PART B which shall include:
1. The retail sale of gift and sundry items normally associated
with an airport gift shop.
2. The retail sale of books, magazines, newspapers, confectionary
products, tobacco products, and personal grooming products.
3. And provide such services normally furnished by a Gift and
Sundry Shop and as are compatible with other activities on the
Air~port .
B. LEASEHOLD. Lessee does hereby lease, for its exclusive use the follow-
ing described property:
A 303 square foot gift shop located within the passenger
terminal building at Key W~st International Airport as
designated in Exhibit A attached hereto and made a part
herl=of.
The Lessee shall promptly execute and comply with all statutes,
ordinances, rules, orders, regulations and requirements of the
Fedl=ral, State and/or County or City governments, any and all
of their Departments and Bureaus, which are applicable to
sai(l premises.
RIGHT OF INGRESS AND EGRESS. The right of ingress to and egress from, but
not the use of, except as provided in this lease, the premises and facilities
referred to in Sections "A" and "B" inclusive above, for Lessee, its employ-
ees, agents, patrons, its suppliers of materials or furnishers of service,
its equipment, vehicles, machinery or other property, without charge to Les-
see, its employees, agents, patrons, suppliers of materials or furnishers of
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service or the.ir said property except as herein, otherwise provided; and
provided further that nothing herein contained shall be deemed to limit
Lessor's right to impose charges upon ground transportation services.
ARTICLE II - TERM
This lea.se and all rights herein granted Lessee shall become opera-
tive and effec.tive on Autust 1, 1978 and shall end on the 31st
day of July , 19 79 , unless sooner terminated as hereinafter pro-
vided.
ARTICLE III - RENTALS AND FEES
A. Lessee a.grees to pay Lessor at such places as Lessor may designate for
the use of the premises, facilities, rights, licenses, services and
privileges granted hereunder, the following rentals, fees and charges,
all paya.ble in monthly installments covering the ensuing calendar
month. In the event that the commencement or termination of the term
with respec~. to any of the particular premises, facilities, rights,
licenses, services and privileges as herein provided falls on any
date other than the first or last day of a calendar month, the appli-
cable rentals, fees and charges for that month shall be paid for said
month prorata according to the number of days in that month during
which said particular premises, facilities, rights, licenses, ser-
vices and privileges were enjoyed; and the Lessee agrees to pay on or
before the 15th day of each month following the last day of each calen-
dar month throughout the leasehold term.
1. $186.00 per month for use of the 303 square foot gift
shop at the passenger terminal including electricity.
2. 3% of gross revenues over $25,000.00 resulting
from the conducting of a Gift and Sundry Shop business at
Key West International Airport.
B. The Lessee hereby agrees to maintain Financial Records utilizing nor-
mally accepted accounting procedures. The Lessee further agrees that
the aforementioned records will be made available to the Lessor, if
it so desires, for formal audit at most once each six months. Fur-
thermore, the Lessor has the right to inspect said records during
normal business hours at any time.
C. The Lessee shall present a schedule of rates and charges to the Lessor
for approval and such rates and charges shall prevail only after
approval by the Lessor. Said schedule shall be subject to periodic
review and renewal of, or denial of approval thereof by the Lessor.
D. TAXES AND ASSESSMENTS. Lessee shall pay all taxes and assessments
which may be lawfully levied by a duly constituted taxing body upon
Lessee with respect to its operation at the Airport. The Lessor
agrees not to levy any license or permit fee or special assessment
on Lessee that would restrict or interfere with the exercise and en-
joyment of the rights and privileges granted herein; provided this
shall not prevent the Lessor from making charges to Lessee for the
use of the Airport, its facilities and services as herein specifically
authorized.
E. Lessee shall pay for all water and gas used by Lessee on said premises,
and any license fees, and State, County, and City taxes including the
sales rental tax.
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DEFAULT FOR FAILURE TO PAY RENTALS, FEES AND CHARGES. In the event Lessee
fails to pay any rentals, charges and fees hereunder within fifteen (15) days
after Lessor transmits a past due statement therefore to Lessee, Lessor may
give Lessee notice in writing of its intention to terminate this Lease unless
Lessee shall have corrected such failure to pay within fifteen (15) days.
If said failure to pay shall not have been corrected within fifteen (15) day
period, Lessor may, at its option, immediately or"at any time thereafter,
enter into and upon the premises hereby leased .on any part thereof and in the
name of the whole, and repossess the same of Lessor's former estate, and expel
Lessee and those claiming by, through or under it, and iemove its effects,
forcibly if necessary, without being deemed guilty of trespass and without
prejudice to any remedy which otherwise might be used for arrears of rent or
preceding breach of covenant: on the re-entry aforesaid, this lease shall
terminate. In the event Lessor is obliga~ed to participate in any court
proceedings in order to enforce any of its rights under this paragraph or to
collect its rentals, fees "and charges, Lessor, if successful in pursuing
such litigation shall be entitled to an additional amount in such sum as
any District o~r Circuit Court having competent jurisdiction shall determine
as a re~sonable attorney's fee.
ARTICLE IV
SERVICES TO PUBLIC
The Lessee agrees that in furtherance of the privileges and uses permitted
hereunder:
1. To furnish good, prompt and efficient service adequate to meet all
the demands for its service at the airport~
-. 2. To fUJ~nish said service on. a f-air, equ.al and nondiscriminatory basis
,.,'
to all users thereof, and
3. To charge fair, reasonable and nondiscriminatory prices for each
unit of sale or service: PROVIDED that the Lessee may be allowed
to make reasonable and nondiscriminatory discounts, rebates or
other similar types of price reductions to volume purchasers.
The word 'I'service" as used in sub-sections (1), (2) and (3)
ARTICLE IV, shall include furnishing of, labor, materials and supplies,
related to Gift and Sundry Shop operation including the sale thereof,
as well as furnishing service.
ARTICLE V
RIGHT TO LEASE PROPERTY
Lessor represents that it has the right to lease the Airport, together
with all premises, facilities, rights, licenses, services and privileges herein
granted, and 'has full power and authority to enter into this agreement in re-
spect thereof.
AI~TICLE VI
RIGHT TO PURCHASE SUPPLIES AND MATERIALS
Lessee shall, except as herein otherwise provided, have the right to pur-
chase or otherwise obtain personal property deemed by it to be required by or
incident to, LE~ssee's operations, its exercise of the rights herein granted
and its dischal:ge of the obligations herein imposed, from any person, partner-
ship, firm, association or corporation it may choose. Except as her"ein other-
wise specifically provided, no charges, fees, or tolls, of any nature, direct
or indirect, shall be charged" by Lessor, directly or indirectly, against
Lessee or its suppliers, for the privileges of purchasing, selling, using,
storing, withdl~awing, handling, consuming, loading or unloading, or delivering
any such personal property of Lessee by Lessee or its suppliers or for the
privilege of transporting such personal property or persons to, from or on the
Airport.
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Nothing in this lease shall be deemed to restrict in any manner Les-
sor's right to charge any person, partnership, firm, association or corpora-
tion rentals f:or the use of Lessor's property or any improvements thereon or
thereto where such use of said property or improvements are of a regular or
permanent nature as distinguished from temporary or transitory nature or
where such use~ is of such a nature as to constitute the performance of a
commercial business at the Airport.
AB~ICLE VII - MAINTENANCE AND OPERATIONS BY LESSOR
Except 8.S otherwise specifically provided herein, Lessor during the
term of this lease, shall operate, maintain and keep in good repair the
Airport, Termi.nal Building, vehicular parking space, all appurtenances,
facilities and services now or hereafter connected with the foregoing, in-
cluding, without limiting the generality hereof, all field lighting and other
appurtenances, facilities and services which Lessor has agreed to furnish
and supply heroeunder. Provided, however, that Lessor shall not be required
to perform mai.ntenance and make repairs occasioned by negligence of Lessee
or its employe~es, fire or other casualty expected, in which case Lessor may
perform such TIlaintenance or make such repairs and charge the reasonable cost
of same to Lessee. Provided also that Lessor may abandon certain facilities
which are no longer reasonably justified for proper and adequate operation
of the Airport. Lessor shall keep the Airport free of obstructions, includ-
ing the cleari.ng and removal of grass, stones, or other foreign matter, as
reasonably nec:essary and with reasonable promptness, from the runway, taxi-
way and loading areas for the safe, convenient and proper use of the Airport,
and shall maintain and operate the Airport in all respects in a manner at
least equal to the highest standards or ratings issued by the Federal Avia-
tion Administration, for airports of substantially similar size and character
and in accordaLnce with all rules and regulations of the Federal Aviation
Administration and any other Governmental Agency having jurisdiction thereof,
providing that nothing herein contained shall be deemed to require Lessor
to enlarge the Airport or to make extensions or additions to the landing
area, runway, taxiway, or other appurtenances of the Airport.
ARTICLE VIII - MAINTENANCE A'ND O'PERATIONS 'BY LESSEE
Lessee hereby accepts the premises in the condition they are in at the
beginning of this Lease, and agrees to maintain said premises in the same
condition, ordler and repair as they are at the commencement of said term,
excepting only reasonable wear and tear arising from the use thereof under
this Agreement, and to compensate said Lessor immediately upon demand for
any damage to said premises caused by any act or neglect of Lessee, or of
any person or persons in their employ or under the control of the Lessee.
The Lessee agrees to maintain the premi.ses in a clean condition, and
to maintain an adequate number of covered metal waste containers at suitable
locations, andl shall deposit all trash and \Vaste therein for proper disposi-
tion of such wraste materials at the disposal grounds designated by the Les-
sor.
It is un.derstood and agreed that no signs or advertising and no awnings
shall be erected on or in connection with the premises leased hereunder,
unless the sarrle shall be first submitted to and approved by the Lessor in
writing.
ARTICLE IX - GOVE'RNMENT'AL 'FACILITIES
It is ex~pressly agreed t,hat if funds for the provision, maintenance
and operation of the Control Tower and/or other air navigation aids or other
facilities required or permitted by the United States which are now, or may
be hereafter f'urnished by the United States, are discontinued by the United
States, Lessor shall not be required to furnish said facilities.
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ARTICLE X
RULES AND REGULATIONS
Lessor shall have the right to and shall adopt and enforce reasonable rules
and regulations, which Lessee agrees to observe and obey, with respect to the us<<
of the Airport and appurtenances; provided 'that such rules and regulations shall
not be inconsistent with this agreement nor with the safety and with rules,
regulations and orders of the Federal Aviation Administration with respect to
aircraft operations at the Airport, with procedures prescribed or approved from
time to time by the Federal Aviation Administration with respect, to the operatioI
of aircraft of the Airport.
Lessor shall provide Lessee with a copy of such rules and regulations from
. time to time.
ARTICLE XI
DAMAGE. OR DESTRUCTION OF PREMISES
In the event the premises shall be partially damaged by fire, explosion,
the elements, the public enemy or other casualty, but not rendered untenantable,
the same shall be repaired with due diligence by Lessor at his own costs and
expense. If the damage shall be so extensive as to render such premises
untenantable but capable of being repaired within thirty (30) days, the same
shall be repaired with due diligence by Lessor at its own cost and expense,
and rent payable hereunder shal'l be proportionately paid up to the time as the
premises shall be fully restored. In case the premises is completely destroyed
by fire, explosion, the e~ements, the public enemy or other casualty, or so
damaged that it will or does remain untenantable for more than thirty (30) days,
the Lessor shall be under no obligation to repair and reconstruct the premises,
and rent payable hereunder with respect to Lessee's exclusive space in said
pre~ises shall be proportionately paid .up to the time of such damage or destruc-
tion and shall thenceforth cease until such time as the premises may be fully
restored. If within ninety (90) days after such damage or destruction, Lessor
fails to notify Lessee of its intention to repair or reconstruct the damage or
destroyed premises or to furnish a substantially equivalent facility, Lessee
may give Lessor written notice of its intention to then cancel th'is agreement
in its entirety or to cancel, as of the date of such damage or destruction,
such part of this agreement as relates only to said premises.
ARTICLE XII
CANCELLATION BY LESSOR
The Lessor may cancel this agreement by giving Lessee sixty (60) days.
advance written notice to be served as hereinafter provided upon or after the
happening of anyone of the following events:
a. The filing by Lessee of a voluntary petition in bankruptcy.
b. The institution of proceedings in bankruptcy against Lessee and
adjudication of Lessee as a bankrupt pursuant to such proceedings.
c. The taking by a court of jurisdiction of Lessee and its assets
pursuant to proceedings brought undei the provisions of any
Federal re-organization act.
d. The appointment of a receiver of Lessee's assets.
e. The divestiture of Lessee's estate herein by other operation of law.
f. The abandonment by Lessee of its conduct of Gift and Sundry Shop at
the Airport for a period of ninety (90) ~ays.
g. The lawful assumption by the United States Government or any
authoI~ized agency thereof of the operation, control, or use of the
Airport and facilities, or any substantial part or parts thereof,
in such manner as substantially to restrict Lessee, for a period
of at least ninety (90) days, from operating thereon for the
conducting of a Gift and Sundry Shop.
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No waiver of default by the Lessor of any of the terms, covenants or con-
ditions hereof to be performed, kept and observed shall be construed to be
or act as a waiver of any subsequent def~ult of any of the terms, covenants and
conditions hel~ein contained to be performed, kept and observed by the Lessee sha
not be deemed a waiver of any right on the part of the Lessor to cancel this
lease for failure by Lessee to so perform, keep or observe any of the terms,
covenants or conditions of this lease.
ARTICLE XIII
CANCELLATION BY LESSEE
Lessee may cancel this agreement any time that Lessee is not in default in
its payments to Lessor hereunder, by giving Lessor sixty (60) days advance
written notice to be served as hereinafter provided, upon or after the happening
of anyone of the following events:
a. Issuance by any court of competent jurisdiction of an injunction
in any way preventing or restraining the use of the Airport or any
part thereof for airport purposes, and the remaining in force of
such injunction for a period of at least ninety (90) days.
b. The inability of Lessee to use, for a period in excess of ninety (90)'
days, the Airport or any of the premises, facilities, rights,
licenses, services or privileges leased to Lessee hereunder, because
of fire, explosion, earthquake, other casualty, or acts of God or
the public enemy, provided that same is not caused by negligence or
willful acts of failure to act on part of Lessee.
c. The default by the Lessor in performance of any covenant or
agreement herein required -to be performed by the Lessor and the
failure of Lessor to remedy such default for a period of ninety (90)
days after receipt from Lessee of written notice to remedy same;
provided, however, that no notice of cancellation, as provided
above, shall be of any force or effect if Lessor shall have
remedied the default prior to receipt of Lessee's notice of
cancellation.
d. The lawful assumption by the United States Government or any
authorized agency thereof of the operation control or use of
the Airport and facilities, or any substantial part or parts
thereof, in such a manner as substantially to restrict Lessee, for
a period of at least ninety (gO) days, from operating thereon for
the conducting of a Gift and Sundry Shop.
Lessee's performance of all or any part of this agreement for or during any
period or periods after a default of any of the terms, covenants and conditions
herein contained to be performed, kept and observed by Lessor, shall not be
deemed a waiver of any right on the part of the Lessee to cancel this Agreement
for failure by Lessor to so perform, keep or observe any of the terms, covenants
or conditions hereof to be performed, kept or observed. No waiver of default by
Lessee of any of the terms, covenants or conditions hereof to be performed, kept
and observed by the Lessor shall be construed to be or act as a waiver by
Lessee of any subsequent default of any of the terms, covenants and conditions
herein contained to be pe'rformed, kept and observed by the Lessor.
ARTICLE XIV - INDEMNITY
Lessee agJ:ees fully to indemnify, and save and hold harmless, the Lessor
from and against all claims and actions and all expenses incidental to the in-
vestigation and defense thereof, based upon or arising out of damages or injuries
to third persons or their property, caused by the negligence of Lessee, .its
agents or employees, in the use or occupancy of the said leased premises by
Lessee; provided, however, that Lessee shall not be liable for any injury or
damage or loss occasioned by the negligence of Lessor, ,its agents or employees;
and provided, further that Lessor shall give to Lessee prompt and reasonable
notice of any such claims or actions and Lessee shall have the right to investi-
gate, compromise and defend the same. Lessee agrees to carry, and keep in force,
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public liability insurance covering personal inj~ry and property damage, and
such other insurance as may be necessary to protect Lessor herein from such
claims and actions aforesaid, Lessee agrees to carry and keep in force such
insurance with minimum limits of liability for personal injury in a sum not
less than $100,000 for anyone person, and $300,000 for anyone accident; and
for property (jamage in a sum not less than $50,000; and to furnish Lessor with
proper certificates certifying that such insurance is in force. Lessee shall
carry its insurance coverages with ipsur~nce companies authorized to do
business in the State of Florida.
All personal property placed or moved in the premises above described
shall be at the risk of the Lessee or Owner thereof, and Lessor shall not be
liable for any loss of or damage to said personal property, nor shall Lessor
be liable to t:he Lessee for damages arisi~g from any act of negligence of any
~o-tenant, or of any other person whomsoever, except as stipulated hereinabove.
ARTICLE XV
QUIET ENJOYMENT
Le~sor agrees that, on payment of the rent and performance of the covenants
and agreements on the part of Lessee to be performed hereunder, Lessee shall
peaceably have and enjoy the leased premises and all rights and privileges of
said Airport, its appurtenances and facilities granted herein.
ARTICLE XVI
SURRENDER OF POSSESSION
Upon the expiration or other termination of this Lease or any renewal
thereof, Lessee~s right to use the premises, facilities, rights, licenses,
services and privileges herein leased shall cease and Lessee shall forthwith
upon such expiration or termination surzender .~~e same.
Except as otherwise provided in Article XVI, all structures, fixtures,
improvements, equipment and other property bought, installed, erected or placed
by Lessee in, on or about the Airport and premises leased under this lease shall
be deemed to be personal and remain the property of the Lessee and Lessee shall
have the right at any time during the term of this agreement, or any renewal
or extension hereof, and for an additional period of ninety (90) days after the
expiration or other termination of said term as the same may be renewed or
extended, to remove any or all of its property from the Airport; provided,
however, that Lessee is not in default in its payments to Lessor hereunder and
provided Lessee shall restore said premises to its original condition as at the
beginning of occupancy, ordinary wear and tear damage by elements, fire, explo-
sion or other causes beyond control of Lessee excepted. Any and all property
not removed by Lessee prior to the expiration of the aforesaid ninety (90) days
period, shall thereupon become a part of the premises on which it is located
and title thereto shall thereupon rest in the Lessor. Provided further that
Lessor reserves the right to require Lessee to remove such improvements and
property at Lessee1s expense.
The Lessor reserves the right to make a reasonable charge of rental for
the period of ninety (90) days provided for herein for continuation of
occupancy of space; provided, however, that no charge shall be made to Less~e
if Lessee shall remove its property from the leased premises within the first
thirty (30) days of said ninety (90) day period. In the event that it becomes
necessary for Lessor to remove equipment, structures or other attachments to
the grounds, or buildings because of the failure of Lessee to do so, the ex-
penses of such removal are to be borne by the Lessee.
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ARTICLE XVII
DEFINITION OF TERMS'
Whenever the term Federal Aviation Administration is used in this lease,
it shall be construed as referring to the Fed~ral Aviati6n Administration
created by thE~ Federal Government under the Federal Aviation Act of 1958, or
to such other Federal Government authority as may be the successor thereto or
to be vested with the same or similar authority.
Whenever the terms "person" and persons" are used in the lease, they
shall be construed as including individuals, firms,. corporations and other
legal entities. When in this agreement written approval by Lessor is required,
such written approval may be given by the Director of A.irports for Lessor.
ARTICLE XVIII
INSPECTION BY LESSOR
Lessee shall not at any time assign this agreement or any part thereof,
nor sublet all or any portion of the leased premises herein without written
approval of Lessor; provided that the foregoing shall not prevent the assign-
ment of ~his agreement to any corporation with which Lessee may merge or con-
solid~te, or which may succeed all or any portion of the business of Lessee.
ARTICLE XX
NOTICES
Notices to Lessor provided for herein shall be sufficient if sent by
registered mail, postage prepaid, addressed to:
Director of Airports, Monroe County
Key West International Airport
S. Roosevelt Boulevard
Key West, Florida 33040
,/
and notice to :Lessee, if sent by registered mail, postage prepaid, addressed
to:
B & E ENTERPRISES
201 B Kev West By The Sea
Kev West, Florida 33040
Attn: Willard M. Cox
or to such other respective addresses as the parties may designate to each
other in writing from time to time.
ARTICLE XXII
PARAGRAPH HEADINGS
The paragJ:aph headings contained herein are for convenience of reference
and are not intended to def~ne or limit the scope of any provision in this lease.
ARTICLE XXII
INVALID PROVISIONS
In the event any covenant, condition or provision herein contained is
held to be invalid by any court of competent jurisdiction the invalidity of any
such covenant, condition or provision shall in no way affect any other covenant,
condition or provision herein contained; provided that the invalidity of such
covenant, ,condition or provision does not materially prejudice either Lessor
or Lessee in its respective rights and obligations contained in the valid
covenants, conditions or provisions of this lease.
ARTICI,E XXIII
COVENANT NOT TO GRANT MORE FAVORABLE TERMS
Lessor covenants and agrees not to enter into any lease, contract or
agreement with any other Gift and Sundry Shop with respect to the Airport
containing more' favorable terms than this lease or to grant to any other Gift
and Sundry Shop rights, privileges or concessions with respect to the said
Airport which are not in accord to the Lessee hereunder unless the same ter~s,
rights, privileges and concessions are concurrently made available to the
Lessee.
, , ' ';tt'", ~,'
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ARTI~CLE XXIV - SUCCESSORS AND ASSIGNS BOUND BY COVENANTS
All the covenants, stipulations and agreements in this lease shall ex-
tend to and bi.nd the legal representatives, successors and assigns of the
respective parties hereto.
ARTICLE XXV - NON-DISCRIMINATION CLAUSE
The Lessee in exercising any of the rights or privileges herein granted
to him shall not on the grounds of race, color or national origin discrimin-
ate or permit discrimination against any person or groups of persons in any
manner prohibi.ted by Part 15 of the Federal Aviation Regulations, and the
Lessor is here~by granted the right to take such action, anything to the con-
trary herein tlLotwithstanding, as the United States may direct to enforce
this non-disc1:"imination covenant.
ARTICLE XXVI - INTERPRETATION OF LEASE
Nothing in this lease shall be construed or interpreted in any man!ler,
whatsoever as limiting, relinquishing, or waiving of any rights or ownership
enjoyed by Lessor in the Airport property, or in any manner waiving or limit-
ing its control over the operation, maintenance, etc., of Airport property
or in derogati.on of such governmental rights as Lessor possesses) except as
is specifically provided for herein.
IN WITNESS WHEREOF, the parties have caused this lease to be executed
as of the day and year first above written.
COUNTY OF MONROE, STATE OF FLORIDA
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B~~~~ard of
County Commissioners of Monroe
County, Florida
Att~lt :
(Seal)
LESSOR
Witnesses:
B & E ENTERPRISES
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LESSEE
I HEREBY CERTIFY that this docurnent
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CleriC)' and that the same rnccts with
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