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04/21/1994LEASE AGREEMENT BETWEEN MONROE COUNTY, FLORIDA (Lessor) and FLAGSHIP AIRLINES INC, d/b/a AMERICAN EAGLE (Lessee) Key West International Airport THIS LEASE AGREEMENT, made and entered into as of this lSd- day of �' 1994, by and between the MONROE COUNTY, a political subdivision of the State of Florida, ("County") and FLAGSHIP AIRLINES, INC, d/b/a AMERICAN EAGLE, a corporation authorized to do business in the State of Florida, ("Lessee"), and whose mailing address is Manager - Corporate Real Estate, M/D - 5494, Post Office Box 619616, Dallas/Ft.. Wo:Mh z = � Airport, Texas 75261. n m W I T N E S SETH: `-' _ - PQ WHEREAS, County owns an airport known as .the Kgy 4 st International Airport located in Key West, Ronroe KC 0 ua, y, Florida, hereinafter called the "Airport", and WHEREAS, Lessee is engaged in the business of air transpor- tation with respect to persons, property, cargo and mail, and WHEREAS, Lessee desires to obtain certain rights, services and privileges in connection with the use of the Airport and its facilities; and the County is willing to grant and lease the same to Lessee on a non-exclusive basis 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 considerations, County does hereby grant and lease unto Lessee, and Lessee does hereby hire and take from County certain premises, facilities, rights, licenses, services and privileges in connection with and on the Airport, as follows, to -wit: ARTICLE I - PREMISES A. PREMISES LEASED. The County does hereby lease to the Lessee that space as marked on Exhibit "A" attached hereto and made a part hereof at the Key West International Airport located in Key West, Monroe County, Florida, in accordance with the terms and conditions as set forth in this Agreement. B. USE OF THE AIRPORT. Lessee shall be entitled to use, in common with others authorized to do so, of the Airport and appurtenances, together with all facilities equipment, improve - means and services which have been or may hereafter be provided at or in connection with the Airport for common use, in the operation of a transportation system by aircraft for the carriage of persons, property, cargo, mail and related purposes (hereinaf- ter referred to as Air Transportation), which use without limit- ing the generality hereof, shall include: 1. the handling, ticketing, billing and manifesting of passengers, baggage, cargo, property and mail in Air Transportation by Lessee. 2. the landing, taking off, flying, taxiing, towing, parking, loading and unloading of Lessee's air- craft, or other equipment operated by Lessee, used in the operation of scheduled, special and charter flights, including without limiting the generality hereof, the right to load and unload Lessee's aircraft adjacent to Lessee's temporary terminal building, upon approval of the Director of Airports. 3. the loading and unloading of property, cargo and mail at said Airport by such motor vehicles or other means of conveyance as Lessee may require in the conduct of Air Transportation, with the right 2 to designate the particular carrier or carriers who shall regularly transport Lessee's property, cargo and mail to and from the Airport. C. SPACE ADJACENT TO TERMINAL BUILDING. Lessee is hereby granted non-exclusive use, in common with others, of such space and facilities as may be designated by County in or adjacent to said Terminal Building consisting of a ground area to permit the taxiing, servicing, loading and unloading of Lessee's aircraft, space for reasonable amount of apron equipment, loading gates, and lighting for loading ramps and for other areas adjacent to the Terminal Building and used by passengers. Lessee may use such space and facilities in the Terminal Building with respect to which it is granted the non-exclusive use hereunder, subject to reasonable rules and regulations of County as to the use of such space and facilities, for any or all purposes in connection with or incidental to its business of Air Transportation, including, without limiting the generality hereof, the handling, ticketing, billing and manifesting of passengers, baggage, cargo, property and mail and the installa- tion, maintenance and operation of radio and other communications equipment and facilities, and meteorological and navigation equipment and facilities. D. PARKING SPACE. Adequate and reasonably convenient vehicular parking spaces shall be provided by County at a lo- cation selected by County, where it will not interfere with operations at the Airport, for the use of Lessee and its employees. The County reserves the right to charge Lessee and its employees for parking at a future date. 3 E. 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" to "D" inclusive above, for Lessee, its employees, agents, passen- gers, guests, patrons, its suppliers of materials or furnishers of service or their said property except as herein contained shall be deemed to limit County's right to impose charges upon ground transportation services. F. ADEQUATE UTILIZATION OF PREMISES. In the event the premises, or any part thereof, are not being adequately utilized by the Lessee, as provided herein, the County reserves the right, upon written notice, without liability by the County to the Lessee, to make available the premises or any part thereof to third parties on joint utilization bases or to terminate this Agreement. The County shall notify the Lessee of such action, in writing, no less than thirty (30) calendar days prior to imple- menting such joint utilization or termination. Any monies paid by the third party shall accrue to the County and the Lessee shall receive abatement of rentals due, for the applicable premises, on a fair and equitable basis. For the purposes of this provisions, the Lessee shall be deemed not to be adequately utilizing the premises whenever the Lessee is regularly operating fewer than fourteen (14) departure flights out of the Airport per week. The Lessee may, upon no less then thirty (30) calendar days written notice to the County, resume full utilization of the premises. Such notice shall contain a statement that the Lessee 4 will operate at least fourteen (14) departure flights per week out of the Airport and shall include a plan schedule of such operations. The written notice shall be signed by an authorized officer of the Lessee. G. No Smoking. Smoking is prohibited on the leased premises. The Lessee must not allow its employees or invitees to smoke on the leased premises.' ARTICLE II - TERM This lease and all rights herein granted Lessee shall become operative and effective on March 1, 1994, and shall end on February 28, 1995, unless sooner terminated as hereinafter provided. ARTICLE III - RENTALS AND FEES Lessee agrees to pay County at such places as County may designate for the use of the premises, facilities, rights, licenses, services and privileges granted hereunder, the follow- ing rentals, fees and charges, all payable in monthly install- ments covering the ensuing calendar month. In the event that the commencement of termination of the term with respect 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 applicable rentals, fees and charges for that months shall be paid for said month prorata according to the number of days in that month during which said particular premises, facilities, rights, licenses, services and privileges were enjoyed; and County shall, following the end of each calendar month, transmit to Lessee a statement of the rentals, fees and charges incurred by Lessee during said month as hereinafter provided, and the same shall be 5 paid by Lessee within thirty (30) days after receipt of such statement. A. RENTAL WITH RESPECT TO SPACE IN THE TERMINAL. Rental of such space herein leased to Lessee as shown on Exhibit "A" attached hereto and made a part hereof, shall be at the following rates payable monthly the first of said payments to be due the 1st day of March, 1994 and one of said monthly payments to become due and payable on the first day of each and every month thereafter during the term of this Lease. 1. 309 square feet of ticket counter space, passenger screening and seating at a flat rate of $6,900 per annum or $575 per month. 2. 364 square feet of office space at $13.24 per square foot per annum. 3. 205 square feet of covered baggage makeup space at $10.59 per square foot per annum. 4. 224 square feet of exclusive trailer storage area at $10.59 per square foot per annum. 5. Shared use of the non-exclusive passenger holdroom and baggage claim areas with other airlines; rent to be based on the usual 20%/80% industry formula for joint -use premises. (20% allocated equal among all users, 80% allocated pro -rasa per enplanement). 7. Utilities collection fee at $3,875 per annum. 8. Trash collection fee at $1,800 per annum. In addition, the Lessee shall maintain the security deposit or letter of credit in the amount of $2,500.00 previously deposited with the County in connection with the predecessor lease. 0 B. LANDING FEES. From and after commencement of the term of this Lease, rentals, fees and charges for the use of the landing area and facilities necessary therefore as granted hereunder, except those which rentals are specifically provided elsewhere, shall be combined in and represented by a landing fee based upon the approved maximum landing weight of the Lessee's Actual Revenue Trip Arrivals at the Airport each month as fol- lows: THE FOLLOWING AS ILLUSTRATIVE EXAMPLE ONLY $.63 per 1,000 pounds of approved maximum gross landing weight. A minimum landing fee of $7.88 will be charged for all aircraft weighing less than 12,500 lbs, gross landing weight. Lessee shall report to the County not later than the loth day of each month, the Lessee's Actual Revenue Trip Arrivals at the Airport during the preceding calendar month, which shall include the number and type of such arrivals. The number of arrivals so operated, and multiplied by the applicable approved maximum gross landing weights for each type of aircraft, shall determine the weight for which the monthly payment shall be made. The term "approved maximum gross landing weight" for any aircraft as used herein, shall be the maximum gross landing weight approved by the Federal Aviation Administration for landing such aircraft at the Airport herein. (Included in this report will be the total number of passenger enplanements and deplanements for that month). Subject to reasonable rules and regulations adopted by the County, it is expressly agreed that payment of landing fees shall entitle Lessee to the use of the loading apron at or adjacent to 7 the Terminal Building for such reasonable time as may be required by Lessee for the loading and unloading of its aircraft; provid- ed, however, that Lessee shall incur no penalty or charge for additional time resulting from unavoidable delays due to weather conditions, minor mechanical defects or other delays beyond control of Lessee, except when such delays preclude use of the apron by other commercial air carriers that are operating to or from the Airport. Subject to Lessee's rights under Article I hereof, the County reserves the right to designate alternate parking areas if deemed desirable or necessary. Furthermore, in the event the Lessee desires to use the Airport apron and ramp facilities for aircraft storage purposes for more than four (4) hours prior approval must be obtained from the County who will determine what apron or ramp areas are available for this purpose. C. TAXES AND ASSESSMENTS. Lessee shall pay all taxes and assessments, including any sales or use tax, which may be lawfully levied by a duly constituted taxing body upon Lessee with respect to its operation at the Airport. The County agrees not to levy any license or permit fee or special assessment on Lessee that would restrict or interfere with the exercise and enjoyment of the rights and privileges granted herein; provided this shall not prevent the County from making charges to Lessee for the use of the Airport, its facilities and services as herein specifically authorized. D. DOUBLE RENTAL. In the event that the Lessee remains in possession of the premises beyond the expiration or termination E., of this Agreement, Lessee shall be bound by all of the terms and conditions of this Agreement to the same extent as if this Agreement were in full force and effect during the time beyond the expiration date of this Agreement. However, during any such possession of the premises as a holdover tenant after the County has demanded the return of the premises, the Lessee shall be liable for double rentals for so long as the Lessee remains in possession after such demand, such rentals to be based upon the rental rates applicable from time to time, in whole or in part to the premises. E. LATE PAYMENT CHARGES. In the event that the Lessee fails to make any payments, as required to be paid under the provisions of this Agreement, within ten (10) business days after same shall become due, interest at the rate established from time to time by the Board of County Commissioners of Monroe County, Florida, (currently set at 12% per month), shall accrue against the delinquent payment(s) from the original due date until the County actually receives payment. The right of the County to require payment of such interest and the obligation of the Lessee to pay same shall be in addition to and not in lieu of the rights of the County to enforce other provisions herein, including termination of this Agreement, and to pursue other remedies provided by law. F. DEFAULT FOR FAILURE TO PAY RENTALS, FEES AND CHARGES In the event Lessee fails to pay any rental on the first of each month, such failure shall be a default of this Lease. County may, at its option, immediately or at any time thereafter, enter 9 into and upon the premises hereby leased or any part thereof and in the name of the whole, and repossess the same of County's former estate, and expel Lessee and those claiming by, through or under it, and remove 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. Further, if Lessee fails to perform any of the other covenants of this Lease and such default shall continue for fifteen (15) days after notice thereof is given in writing by the County (unless a shorter time is provided elsewhere), or failure to correct any violation shall continue for fifteen (15) days after notice thereof is given in writing by the County (unless a shorter time is provided elsewhere), or its agents or attorneys to said Lessee, the County may, at its option, forthwith declare this Lease forfeited, and may immediately re-enter and repossess said leased property, and any of the rents prepaid hereunder shall be forfeited by the Lessee, and in no way shall effect the collection of any other damages which may be due the County as a result of any of said defaults. In the event County is obligated to participate in any court proceeding in order to enforce any of its rights under this paragraph or to collect its rentals, fees and charges, County, if successful in pursuing such litigation, shall be entitled to an additional amount in such stun as any District or Circuit Court having competent jurisdiction shall determine as a reasonable attorney's fee. 10 ARTICLE IV - MAINTENANCE AND REPAIR BY LESSEE County shall keep the Airport free of obstructions, includ- ing the clearing and removal of grass, stones, or other foreign matter, as reasonably necessary and with reasonable promptness, from the runway, taxiway and loading area, and immediately adjacent to such runways, taxiway and loading areas for the safe, convenient and proper use of the Airport by Lessee, 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 Aviation Administration, for airports of substantially similar size and character and in accordance 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 County to enlarge the landing area, runway, taxiway or other appurtenances of the Airport. Lessee shall not perform any cleaning or mainte- nance of aircraft except in designated areas. Further, it is specifically agreed that no cleaning or maintenance of aircraft shall be performed on Airport runways or ramps, except without the prior approval of Lessor or Lessee's representative. The Lessee shall pay for its own garbage service and electrical power in its exclusive areas. The Lessee shall, at its expense, repair, maintain or replace, as may be required, all plumbing and electrical fixtures, including but not limited to, incandescent bulbs or fluorescent tubes or other lighting devices located in its exclusive area within the space leased hereunder. County, at its cost, shall also provide and supply adequate lighting for the 11 common departure area, vehicular parking spaces, loading ramps, adequate field lighting on and for the Airport, including without limiting the generality hereof, landing lights and beacons. County shall also provide janitorial services necessary to keep the common departure area, the public and passenger space, and vehicular parking spaces and the landing field of the Airport at all times clean, neat, orderly, sanitary and presentable. Determination of adequacy, as used throughout this ARTICLE IV, shall be made solely by County but shall be at least equal to the standards for airports of substantially similar size and nature. Maintenance and repair shall be in quality and class equal to or better than the original work to preserve the premises in good order and condition. The Lessee shall repair all damage caused by Lessee and it employees, agents, independent contrac- tors, patrons, servants or invitees. Prior to or at termination of this Agreement, injury done by the installation or removal of furniture and personal property of the Lessee shall be repaired so as to restore the premises to their original state, and to quit and surrender of the premises in the same good order and condition as it was at the commencement of this Agreement, reasonable wear and tear accepted. Upon failure of the Lessee to clean maintain, repair, replace and refurbish the premises as required by this Article, the County may, following thirty (30) days written notice to Lessee, enter upon the premises and perform all work which in the judgment of the County made be necessary, and the County shall add the cost of such work, plus twenty-five percent (25%) for 12 administrative cost to the rent due hereunder on the first day of the month following the date of such work, and such cost shall be and constitute a part of the rent. Subsequent to receipt of a notice of intent to perform repairs or cleanup from the County, Lessee shall not undertake performance of such repairs or cleanup without specific prior written authorization from the County. ARTICLE V - GOVERNMENTAL FACILITIES It is expressly agreed that 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 and needed by the Lessee or Lessee's operation at the Airport, which are now, or may be hereafter furnished by the United States, are discontinued by the United States, County shall not be required to furnish said facilities. ARTICLE VI - RULES AND REGULATIONS A. COMPLIANCE. Lessee shall comply with all ordinances of the County, including any reasonable rules and regulations with respect to use of Airport property, as the same may be amended from time to time, all additional laws, statutes, ordinances, regulations and rules of the federal, state and county govern- ments, and any and all plans and programs developed in compliance therewith, which may be applicable to its operations or activ- ities under this Agreement, including specifically, without limiting the generality hereof, federal air and safety laws and regulations and federal, state, and county environmental, hazard- ous waste and materials and natural resources laws, regulations and permits. 13 B. VIOLATIONS. The Lessee agrees to pay on behalf of the County any penalty, assessment, or fine, issued against the County, or to defend in the name of the County any claim, assess- ment, or civil action, which may be presented or initiated by any agency or office of the federal, state, or county governments, based in whole or substantial part upon a claim or allegation that the Lessee, its agents, employees or invitees have violated any law, ordinance, regulation, rule or directives described in ARTICLE VI(A) above or plan or program developed in compliance therewith. ARTICLE VII - TERMINATION BY LESSOR A. PAYMENT DEFAULTS. Failure of the Lessee to make all payments of rentals, fees and charges required to be paid herein when due shall constitute a default, and the County may, at its option, terminate this Agreement after five (5) calendar days notice in writing to the Lessee unless the default be cured within the notice period. Such notice shall be in compliance with Florida statutory requirements, including Section 83.20, as such statutory requirements may be amended from time to time. B. INSURANCE DEFAULT. The County shall have the right, upon ten (10) calendar days written notice to the Lessee to terminate this Agreement if the Lessee fails to provide evidence of insurance coverage in strict compliance with ARTICLE XIII hereof prior to commencement of operations, or fails to provide a renewal of said evidence upon its expiration and re-entered and repossess the premises as provided in Art. III(F). 14 C. OTHER DEFAULTS. The County shall have the right, upon fifteen (15) calendar days written notice to the Lessee to terminate this Agreement upon the occurrence of any one or more of the following, unless the same shall have been corrected within such period: 1. Failure of the Lessee to comply with any covenants of this Agreement, other than the covenants to pay rentals, fees and charges when due, and the covenants to provide required evidence of insurance coverage. 2. The conduct of any business, the performance of any service, or the merchandising of any product or service not specifically authorized herein. D. HABITUAL DEFAULT. Notwithstanding the foregoing, in the event that the Lessee has frequently, regularly, or repeti- tively defaulted in the performance of or breached any of the terms, covenants and conditions required herein to be kept and performed by the Lessee, in the sole opinion of the County and regardless of whether the Lessee has cured each individual condition of breach or default as provided in subsections (A) through (C) hereinabove, the Lessee shall be determined by the County to be a "habitual violator." At the time that such determination is made, the County shall issue to the Lessee a written notice advising of such determination and citing the circumstances therefore. Such notice shall also advise the Lessee that there shall be no further notice or grace periods to correct any subsequent breach(es) or default(s) and that any subsequent breach(es) or default(s), of whatever nature, taken with all previous breaches and defaults, shall be considered cumulative and, collectively, shall constitute a condition of noncurable default and grounds for immediate termination of this 15 Agreement. In the event of any such subsequent breach or de- fault, the County may cancel this Agreement upon the giving of written notice of termination to the Lessee, such termination to be effective upon the tenth day following the date of receipt thereof and all payments due hereunder shall be payable to said date, and the Lessee shall have no further rights hereunder. ARTICLE VIII - AUTOMATIC TERMINATION The abandonment by the Lessee of the premises or discontin- uance of operations at the Airport for any period of time exceed- ing fifteen (15) consecutive calendar days shall constitute a default by the Lessee and cause this Agreement to automatically terminate. ARTICLE IX - ACTIONS OF TERMINATION The Lessee shall vacate, quit, surrender up and deliver the premises to the County on or before the termination date of this Agreement, whether by lapse of time or otherwise. The Lessee shall surrender the premises in the condition required tinder ARTICLE IV herein. All repairs for which the Lessee is responsible shall be completed prior to surrender. The Lessee shall deliver to the County all keys to the premises upon surren- der. On or before the termination date of this Agreement, except in the instance of termination pursuant to ARTICLE VIII, in which event, the Lessee shall be allowed tip to five (5) calendar days from date of termination, and provided that the Lessee is not in default in the payment of any rentals, fees or other charges required to be paid herein, the Lessee shall remove all of its personal property from the premises. Any personal property of 16 the Lessee not removed in accordance with this Article may be removed by the County for storage at the cost of the Lessee. Failure on the part of the Lessee to reclaim its personal proper- ty within thirty (30) days from the date of termination shall constitute a gratuitous transfer of title thereof to the County for whatever disposition is deemed to be in the best interest of the County. The Lessee shall, at its expense, take all actions required by federal, state and local laws, regulations or codes to remove from the premises any hazardous substance or environmental contaminate, whether stored in drums, or found in vats, contain- ers, distribution pipelines, or the like. All such substances and contaminates shall be removed by the Lessee in a manner approved and authorized by such federal, state or local laws, regulations or codes. If the County advises the Lessee that it has reason to believe that any hazardous substance or environmental contaminate has been released within the premises or into the ground under the premises, then the Lessee at its expense shall retain an approved environmental consultant to perform whatever environ- mental assessment may be required to determine the extent of such release. Lessee shall comply with the recommendations and conclusions, contingent upon County approval, of such consultant regarding environmental cleanup efforts that may be required, and shall comply with any other cleanup requirements imposed on the Lessee by federal, state or local laws, regulations or codes. 17 Notwithstanding any other provisions of this Agreement, the Lessee shall have no liability to the County for any violation of environmental law which is attributable to the acts or omissions of any person other than the Lessee, its agents, employees, invitees, or contractors (nor shall such violations constitute a default or breach of this Agreement). Nothing in this Article or Agreement shall affect the Lessee's liability for environmental violations as separately provided for in any federal, state or local laws. ARTICLE X - LIEN UPON PERSONAL PROPERTY In the event of termination for default or upon termination of this Agreement by its term the County shall have a lien upon all personal property of the Lessee to secure the payment of any unpaid rentals, fees and charges accruing under the terms of this Agreement. ARTICLE XI - CANCELLATION BY LESSEE Lessee may cancel this Agreement any time that Lessee is not in default in its payments to County hereunder, by giving County thirty (30) days advance written notice to be served as hereinaf- ter provided, upon or after the happening of any one 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 IN casualty, or acts of God or the public enemy, provided that the same is not caused by negligence or willful acts of failure to act on part of Lessee. C. The default by the County in performance of any covenant or agreement herein required to be performed by the County and the failure of County 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 County 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 (90) days, from operating thereon for the carrying of passengers, cargo, property and United States Mail. E. The failure or refusal of the FAA to grant Lessee the right to operate an airline. 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 County, shall not be deemed a waiver of any right on the part of Lessee to cancel this Agreement for failure by County 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 County shall be construed to be or act as a waiver by Lessee of any subsequent default of any of the terms, covenants and con- ditions herein contained to be performed, kept and observed by the County. 19 ARTICLE XII - INDEMNITY Lessee shall protect, defend, and hold the County and its officers, agents and employees completely harmless from and against any and all liabilities, losses, suits, claims, judg- ments, fines or demands arising by reason of injury or death of any person or damage to any property, including all reasonable costs for investigation and defense thereof (including but not limited to attorney's fees, court costs, and expert fees), of any nature whatsoever arising out of or incident to this Agreement and/or the use or occupancy of the leased premises or the acts or omissions of officers, agents, employees, contractors, subcon- tractors, licensees, or invitees of the Lessee regardless of where the injury, death, or damage may occur, unless such injury, death or damage is caused by the sole act of negligence of the County. The County shall give to the Lessee reasonable notice of any such claims or actions. The provisions of this Article shall survive the expiration or early termination of this Agreement. ARTICLE XIII - INSURANCE Prior to the commencement of work governed by this lease agreement (including the pre -staging of personnel and material), the Lessee shall obtain, at his own expense, insurance as specified in the attached schedules, marked as Exhibit "B," which are made part of this lease agreement. The Lessee will ensure that the insurance obtained will extend protection to all Contractors engaged by the Lessee. Lessee will not be permitted to commence work governed by this lease agreement (including the pre -staging of personnel and 20 material), until satisfactory evidence of the required insurance has been furnished to the Lessor as specified below. Lessee shall maintain the required insurance, throughout the entire term of this lease agreement, and any extensions, as specified in the attached schedules. Failure to comply with this provision may result in the immediate suspension of all activities conducted by the Lessee and its Contractors until the required insurance has been reinstated or replaced. Lessee shall provide, to the Lessor, as satisfactory evidence of the required insurance, either: * Certificate of Insurance or A Certified copy of the actual insurance policy The Lessor, at its sole option, has the right to request a certified copy of any or all insurance policies required by this contract. All insurance policies must specify that they are not subject to cancellation, non -renewal, material change, or reduction in coverage unless a minimum of thirty (30) days prior notification is given to the Lessor by the insurer. The acceptance and/or approval of Lessee's insurance shall not be construed as relieving Lessee from any liability or obligation assumed under this contract or imposed by law. The Monroe County Board of County Commissioners, its employees and officials will be included as "Additional Insured" on all policies, except for Workers' Compensation. Any deviations from these General Insurance Requirements must be requested in writing on the County prepared form entitled 21 "Request for Waiver of Insurance Requirements" and approved by Monroe County Risk Management. ARTICLE XIV - PERSONAL PROPERTY Any personal property of the Lessee or of others placed in the premises in the Airport shall be at the sole risk of the Lessee or the owners thereof, and the County shall not be liable for any loss or damage. ARTICLE XV - 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 surrender the same. ARTICLE XVI - DEFINITIONS OF TERMS Whenever the term Federal Aviation Administration is used in this Lease it shall be construed as referring to the Federal Aviation 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 County is required, such written approval may be given by the Director of Airports for County. 22 ARTICLE XVII - INSPECTION BY COUNTY County may enter upon the premises now or hereafter leased exclusively to Lessee hereunder at any reasonable time for any purpose necessary, incidental to or connected with the perfor- mance of its obligations hereunder, or in the exercise of its governmental functions. ARTICLE XVIII - ASSIGNMENT AND SUBLETTING Lessee shall not at any time assign this Agreement or any part thereof, nor sublet all or any portion of the leased prem- ises herein without written approval of the Board County Commissioners; provided, however, that County shall not unreasonably withhold approval. The prohibitions above stated include assignment of this Agreement to any corporation with which Lessee may merge or consolidate or which may succeed all or any portion of the business of Lessee. ARTICLE XIX - NOTICES Notices to County provided for herein shall be sufficient if sent by certified mail, postage prepaid, addressed to: Mayor & Chairman of the Board of County Commissioners MONROE COUNTY COURTHOUSE P.O. Box 1680 Key West, Florida 33040 and notice to Lessee, if sent by certified mail, postage prepaid, addressed to: FLAGSHIP AIRLINES, INC. d/b/a AMERICAN EAGLE Manager - Corporate Real Estate M/D - 5494 Post Office Box 619616 Dallas/Ft. Worth Airport, Texas 75261 23 or to such other respective addresses as the parties may desig- nate to each other in writing from time to time. ARTICLE XX - PARAGRAPH HEADINGS The paragraph headings contained herein are for convenience of reference and are not intended to define or limit the scope of any provision in this Lease. ARTICLE XXI - INVALID PROVISIONS In the event any covenant, condition or provision herein contained is held to be invalid by any court of competent juris- diction, the invalidity of any such covenant, condition or provision shall in no way effect any other covenant, condition or provision herein contained; provided that the invalidity of such covenant, condition or provision does not materially prejudice either County or Lessee in its respective rights and obligations contained in the valid covenants, conditions or provisions of this Lease. ARTICLE XXII - SUCCESSORS AND ASSIGNS BOUND BY COVENANTS All the covenants, stipulations and agreements in this Lease shall extend to and bind the legal representatives, successors and assigns of the respective parties hereto. ARTICLE XXIII - NON-DISCRIMINATION CLAUSE A. Lessee shall furnish all services authorized under this agreement on a fair, equal, and non-discriminatory basis to all persons or users thereof, charging fair, reasonable, and non-discriminatory prices for all items and services which it is permitted to sell or render under the provisions hereof. Provid- ed, however, that nothing contained in this paragraph or in any 24 other paragraph of this Agreement shall be construed as requiring the Lessee to seek approval by Monroe County before or after Lessee establishes or alters its air fares or charges. B. The Lessee for itself, his personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree that 1) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; 2) that in the construction of any improvements on, over or under such land and the furnishing or services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination; 3) that the Lessee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federal- ly -assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. That in the event of breach of any of the above nondis- crimination covenants, Lessor shall have the right to terminate the lease and to re-enter and as if said lease had never been made or issued. The provision shall not be effective until the procedures of Title 49, Code of Federal Regulations, Part 21 are 25 followed and completed including exercise or expiration of appeal rights. ARTICLE XXIV - INTERPRETATION OF LEASE Nothing in this Lease shall be construed or interpreted in any manner whatsoever as limiting, relinquishing, or waiving of any rights or ownership enjoyed by County in the Airport proper- ty, or in any manner waiving or limiting its control over the operation, maintenance, etc., of Airport property or in derogation of such governmental rights as County possesses, except as is specifically provided for herein. ARTICLE XXV - AS IS The Lessee agrees to accept the leased property in "as is" condition and County shall not be obligated to repair, maintain or renovate same. ARTICLE XXVI - MOVE LESSEE County reserves the right to move Lessee from the premises being leased under the terms of this Agreement within thirty (30) days after permanent space in a new or reconstructed terminal becomes available for use by Lessee. ARTICLE XXVII - QUIET POSSESSION Except as specifically provided elsewhere in this Agreement, the County warrants that Lessee shall have quiet and peaceable possession of the premises during the term of this Agreement. ARTICLE XXVIII - CIVIL ACTIONS A. GOVERNING LAW - VENUE. This lease shall be governed and construed in accordance with the laws of the State of Florida. The venue on any action on this lease shall be laid in 26 Monroe County, Florida, and any action to determine the rights or obligations of the parties hereto shall be brought in the Courts of the State of Florida. B. REGISTERED OFFICE/AGENT - JURISDICTION. Notwithstand- ing the provisions of ARTICLE XIX and in addition thereto, the Lessee, if a corporation, shall designate a Registered Agent and Registered Office as required by s. 48.091, Florida Statutes, such designations to be filed with the Florida Department of State in accordance with s. 607.034, Florida Statutes. If the Lessee is a natural person, he/she and his/her personal represen- tatives hereby submit themselves to the jurisdiction of the courts of this state for any cause of action based in whole or in part on an alleged breach of this Agreement. ARTICLE XXIX - NO REPRESENTATION County makes no representation, warranty, guarantee, or averment of any nature whatsoever concerning the physical condi- tion of the premises, and it is agreed that County will not be responsible for any loss, damage or cost which may be incurred by Lessee by reason of any such physical condition. ARTICLE XXX - RESERVATION OF USE AND INTERFERENCE It shall be a condition of this lease, that the Lessor reserves unto itself, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the real property hereinafter described, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation of or 27 flight in the said airspace, and for use of said airspace for landing on, taking off from or operating on the airport. That the Lessee expressly agrees for itself, its successors and assigns, to restrict the height of structures, objects of natural growth and other obstructions on the hereinafter described real property to such a height so as to comply with Federal Aviation Regulations, Part 77. That the Lessee expressly agrees for itself, its successors and assigns, to prevent any use of the hereinafter described real property which would interfere with or adversely affect the operation or maintenance of the airport, or otherwise constitute an airport hazard. ARTICLE XXXI - AUTHORIZED USES ONLY The Lessee shall not use or permit the use of the Airport for any illegal or unauthorized purpose or for any purpose which would increase the premium rates paid by the County on, or invalidate, any insurance policies of the County or any policies of insurance written on behalf of the Lessee under this Agree- ment. ARTICLE XXXII - FEDERAL SUBORDINATION This Agreement shall be subordinate to the provisions of any existing or future Agreement between the County and the United States of America relative to the operation and maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the expenditure of federal funds for the development of the Airport. All provisions of this Agreement shall be subordinate to the right of the United States of America W to lease or otherwise assume control over the Airport, or any part thereof, during time of war or nation emergency for military or naval use and any provisions of this Agreement inconsistent with the provisions of such lease to, or assumption of control by, the United State of America shall be suspended. ARTICLE XXXIII - RIGHTS RESERVED Rights not specifically granted the Lessee by this Agreement are reserved to the County. ARTICLE XXXIV - RIGHTS OF COUNTY AT AIRPORT The County shall have the absolute right, without limita- tion, to repair, reconstruct, alter or add to any structures and facilities at the Airport, or to construct new facilities at the Airport. The County shall, in the exercise of such right, be free from any and all liability to the Lessee for business damages occasioned during the making of such repairs, alterations and additions, except those occasioned by the sole act of negligence of the County, its employees, or agents. ARTICLE XXXV - NO WAIVER There shall be no waiver of the right of the County to demand strict performance of any of the provisions, terms and covenants of this Agreement, nor shall there be any waiver of any breach, default or nonperformance hereof by the Lessee, unless such waiver is explicitly made in writing by the County. Any previous waiver, or course of dealing shall not affect the right of the County to demand strict performance of the provisions, terms and covenants of this Agreement with respect to any subse- W quent event or occurrence of any subsequent breach, default or nonperformance by the Lessee. ARTICLE XXXVI - LEASE SUBORDINATE TO ALL COUNTY/UNITED STATES AGREEMENTS This lease and all provisions hereof are subject and subordinate to the terms and conditions of the instruments and documents under which the Airport Owner acquired the subject property from the United States of America and shall be given only such effect as will not conflict or be inconsistent with the terms and conditions contained in the lease of said lands from the Airport Owner, and any existing or subsequent amendments thereto, and are subject to any ordinances, rules or regulations which have been, or may hereafter be adopted by the Airport Owner pertaining to the Key West International Airport. ARTICLE XXXVII - ENTIRETY OF AGREEMENT The parties hereto agree that this Agreement sets forth the entire agreement between the parties, and there are no promises or understandings other than those stated herein. None of the provisions, terms and conditions contained in this Agreement may be added to, modified, superceded or ,otherwise altered, except as may be specifically authorized herein or by written instrument executed by the parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed as of the day and year first above written. (SEAL) Attest: DANNY L. KOLHAGE, CLERK (CORPORATE SEAL) Attest: By Title: airlinamerican BOARD OF COUNTY COMMISSIONERS OF MONK COUNTY, FLORIDA By yor/unairman SHIP AIRLINES, INC, d/b/a By • Title APPROVED AS Ti! '-^"' 30 ppq m xk4 H to Hm rY 9 H rt I -A 9 FA- 0 H rt lfftf� p1 � Z EXHIBIT "B" Alxil 22. N-)3 AIRCRAFT LIABILITY INSURANCE REQUIREMENTS FOR CONTRACT BE"VEEN MONROE COUNTY, FLORIDA AND Recognizing that the Vendor is engaged in providing commercial air transportation and delivery service to and from air facilities owned, operated, or maintained by the County, the Vendor shall purchase and maintain, throughout the life of the contract, Aircraft and Airport Liability Insurance which will respond to bodily injury and property damages resulting from any claim arising out of the air transportation services governed by this contract. The covered operations section of the policy must specifically state that the Vendor is engaged in business of a commercial airline. The Monroe County Board of County Commissioners must be named as Additional Insured. The minimum limits of liability shall be $25 million per occurrence, for both types of coverages. Administrative kwrudion AIR I #47cM. I 6 43 .111 13d INi ving VEHICLE LIABILITY INSURANCE REQUIREMENTS FOR CONTRACT BETWEEN MONROE COUNTY, FLORIDA AND Recognizing that the work governed by this contract requires the use of vehicles, the Contractor, prior to the commencement of work, shall obtain Vehicle Liability Insurance. Coverage shall be maintained throughout the life of the contract and include, as a minimum, liability coverage for: • Owned, Non -Owned, and }fired .Vehicles . The minimum limits acceptable shall be: $1,000,000 Combined Single Limit (CSL) If split limits are provided, the minimum limits acceptable shall be: S 500,000 per Person $1,000,000 per Occurrence r $ 100,000 Property Damage The Monroe County Board of County Commissioners shall be named as Additional Insured on all policies issued to satisfy the above requirements. Admini wive InMzwi a VL3 "7W.1 I 77 l%l Nifr11M; WORKERS' COMPENSATION _ INSURANCE REQUIREMENTS FOR CONTRACT BETWEEN MONROE COUNTY, FLORIDA AND Prior to the commencement of work governed by this contract, the Contractor shall obtain Workers' Compensation insurance with limits sufficient to respond to the applicable state statutes. In addition, the Contractor shall obtain Employers' Liability Insurance with limits of not less than: 51,000,000 Bodily Injury by Accident $1,000,000 Bodily Injury by Disease, policy limits - S 1,000,000 Bodily Injury by Disease,' each employee Coverage shall be maintained throughout the entire term of the contract. Coverage shall be provided by a company or companies authorized to transact business in the state of Florida and the company or companies must maintain a minimum rating of A -VI, as assigned by the A.M.'Best Company. If the Contractor has been approved by the Florida's Department of Labor, as an authorized self - insurer, the County shall recognize and honor the Contractor's status. The Contractor may be required to submit a Letter of Authorization issued by the Department of Labor and a Certificate of Insurance, providing details on the Contractor's Excess Insurance Program. If the Contractor participates in a self-insurance fund, a Certificate of insurance will be required. In addition, the Contractor may be required to submit updated financial statements from the fund upon request from the County. Administnlive IrKdrudion WC3 04V9. i $3