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Resolution 013-1981 r: / RESOLUTION NO. 13 - 1981 RESOLUTION AUTHORIZING THE CHAIRMAN OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, TO EXECUTE A LEASE AGREEMENT BY AND BETWEEN THE COUNTY OF MONROE, STATE OF FLORIDA, AND INTERNA- TIONAL TRANSFER CORP. D/B/A PRO AIR SERVICE. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, as follows: That the Chairman of the Board of County Commissioners of Monroe County, Florida, 1S hereby authorized to execute a Lease Agreement by and between the County of Monroe, State of Florida, and International Transfer Corp. d/b/a Pro Air Service, a copy of same being attached hereto. Passed and adopted by the Board of County Commissioners of Monroe County, Florida, at a regular meeting held on the 13th day of January, A.D. 1981. BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA ~. --.l. r})~ J Cha1rm (SEAL) Attest: / l ) // ;/i- ~',/~t:/ /' , , 1erk / ,/7 '.0.1_ " -" , '-';0 t .'," "_ /' '_ / /' ',... -'" //, ./ ',/ . ct..-~--// _...,_,- \,...... Approved as to form and legal sufficiency. ily Jtr~~ce A G R E E MEN T TillS C'UNTRACT OF LEASE is made and entered ,/ lay of _,j'Rtu,~____, 1980, by and.-- between the i n too n t II e 'L 1-\ '" COUNTY OJ, MONROE, STATE OF FLORIDA, a political subdivision of the State oj Florida, hereinafter referlt'd to as Lessor, and INTERNATIONAL TRANSfER r:ORP. d/b/a PRO AII\ SERVICE, a Florida corporatio!:, hereinafter referred tn as Lessee. WIT N 13 ~ SET Il: WHERfAS, Lessor owns an airport known as Key West IllternationaI .\irport loclted in Key West, Monroe County, State of Florida, hcre- Inafter cal led the "AIRPORT", and hHERE/\S, Lessee is engaged In the business of all' trallsportatio, \<il th respe\. t to persons, property, cargo and mail, and WHEREAS, Lessee desires to obtain certain rights, serVlces and privileges in connection with the use of the Airport and :ts facili-- :1C-;; and the Lessor is willing to grant and lease the s(!m~' to Lessee on a non-exclusive basis upon the terms and conditions herein fter stated, NOW, Tlli:I\EFORE, for and in cons idera t i on of the premises and of the mutual covenants and agreements herein contained, and other valuable ccn~iderations, Lessor does hereby grant and lease unto Lessee, and Lessee (lacs hereby hire and take from Lessor, certain premises, L;cilities, rights, licenses, services and privileges HI connectIon ~ith and on the Airport, as follows, to-wit: ARTICLE I - PREMISES A. USE OF THE AIRPORT. Lessee shall be entitled to use In common with others authorized to do so, of the Airport and appur- tenances, together with all facilities, equipment, improvements ;1Ild service:~ which have been or may hereafter be provided at or in connection hlth the Airport for common use, in the operation of a transportation system by aircraft for the carriage of persons, property, c.lrgo, mail and related purposes (hereinafter referred to ~:.:'~ -~ ~_.. 7 .... :1 S A i I' T I' a n s port a t ion), w h i c h use hit h 0 uti i m i tin g the g e n era 1 i t Y I, ere 0 f, 5 h a 11 in c lu de: 1. .the handling, ticketing. billing and manifesting of passeRgcrs, baggage, cargo, property and mail in Air Transportation by Lessee or on behalf of any other certificated aIT transportation com- p;my. ./ 2. the repairing, servicing, maintaining, condition- ing, testing, parking or storage of aircraft or other equipment operated by the Lessee, or of any other certificated air transportation company, provided that such right shall not be construed (1:' ;lllthof'tzing the conduct of a sejlarate business by the Lessee, but shall permi t the Lessee to perform ~lIch functions only as an incident to its conduct of Air Transportation. 3. . the training on the Airport of personnel in the ~mploy of or to be employed by the Lessee, or any other certificated air transportation com- pany, or the Federal Aviation Administration, provided that such right shall not be construed as authorizing the conduct of a separate business by the Lessee, but shall permit the Lessee to per- form SUC]1 functions only as an incident to its conduct of Air Transportation. 4. the purchase, sale, lease, transfer, disposal or exchange of Lessee's aircraft, engines, acces- sories, and other equipment or supplies; provided that such right shall not be construed as author- izing the conduct of a separate business by the Lessee, but shall permit Lessee to perform such functions only as an incident to its conduct of Air Transportation, and specifjcally, but without limitations, shall permit the purchase, sale, lease, transfer or disposal of any article or goods used by or bought for use by the Lessee in connection with its conduct of Air Transportation; and provided the Lessee shall not sell food or beverages (except as provided in Paragraph 10 of this Article I) nor gasoline, fuel or propellants, greases or other lubricants, except when such gasoline, fuel or propellants, greases or other lubricants arc of a particular grade desired by others and are not otherwise available (except from other certificated air transportation com- panies) at the Airport. S. the servicing by Lessee or others of aircraft operated by Lessee and other equipment on the apron by truck or otherwise, with gasoline, oil, greases, lubricants, and any other fuel or pro- pellant or other supplies, including food and beverages required by the Lessee; such right to include, without limiting the generality therc- of, the I' i g h t 0 f L e sse e to ins t a I 1 and m ,li n t a in on the Airport adequate storage facilities for such gaso] i ne, oi I, greases, ] uhr icants and other fuel, or propellant, or supplies, either under- ground or on the surface, together with the '" _'L neCcss(lry pumps, pipes, Plotors, filters and other appurtenances incidental to the use thereof, all subject to approval by the Lessor of plans, specifications, location and in- spection of same, which 3pproval shall not be unreason-ahly withheld. Lessor 3grees to grant anLl make available to Lessee's use adequate and convenient rights-of-way"on Airport property for said pipe lines, provi'ded that Lessee shall be responsible for the cost of excavation, con- struction, installation, maintenance and opera- tion thereof, subject to the Lessor's written approval and subject to the execution of a separate fuel storage form agreement. 6 . the 1 a n Ll j n g, t a kin g 0 f f, fly i n g, t (1 x i j n g, to \v i n g , parking, loading and unloading of Lessee's air- craft, or other equipment operated by Lessee, used in the oper3tion of scheduled, shuttle, courtesy, test, training, inspection, emergency, special, 'ch,-irter, sightseeing and other flights, including ~v i tho utI i m i tin g the g en e I' a lit Y her e 0 f, the I' i g h t to load and unload Lessee's aircraft, or the air- craft of an)' other certificated air transporta- tion company adjacent to a convenient entrance to the Terminal Building; provided that {lights carrying cargo or freight only shall load and unload ,-It convenient and accessible points to be designated by the Lessor. 7. the loading and unloading of property, cargo, and mail Clt said Airport by such motor vehicles 01' other means of conveyance as Lessee may de- sire or require in the conduct of Air Transpor- t '-1 t ion, w j t h the I' i g h t to des i g n ate the p a I' tic ul a l' carrier or carriers who sh311 regularly transport Lessee's property, cargo and mail to and from the Airport. . 8. the right, subject to approval by Lessor of plans, specifications, location and inspection of the same, to install, maintain and operate, without cost to the Lessor, by Lessee alone, or in conjunction with others who are Lessee's at the Airport, or through a nominee, a message tube system and other communications systems be- tween suitable locations, subject to payment by Lessee for any space used. 9. the right to install, maintain and operate, with- out cost to Lessor, by Lessee alone, or in con- junction with any certificated air transportation companies who arc Lessee's at the Airport, or through a nominee, any additional air condition- ing equipment including, without limiting the generality hereof, the operation of an air con- ditioning truck equipment for the air condition- ing of an aircraft, subject to payment by Lessee for any space used for any fixed installation of air conditioning equipment, suhject to writ- ten approval by the Lessor and subject to availability of space. 10. the right to provide, without cost to Lessor, by Lessee, food and beverages for consumption by passengers and crews, or for consumption by -----....... ~~=-----~-.......:::_.- '\ 11. 12. 13. _ ~A l',___~ - 4 - passengers and crews in aircraft grounded at the Airport, due to weather or mechanical condi- tions. Food and beverages may be served in tile Lessee's exclusive space to its passengers and crews. Without limiting the generality of the fore'icdng, the said right shall include the right to install, maintatn and operate, by Lessee alone and not incSfljunction with others, without cost to the Lessor, on any premises leased exclusively to Lessee, and approved for this use by Lessor, at the Airport, a kitchen or other plant for the purpose of preparing or dis- pensing food and beverages (including alcoholic) for consumption as aforesaid. Except to the ex- tent herein3bove specifically provided, nothing in this paragraph skill be deemed to give Lessee the right to maintain or operate a cafeteria, restaurant, vending machine, bar or cocktail lounge for the purpose of selling, or in any manner otherwise provide for the sale of food . or ~everages to the public or to its employees ~nd passengers provided, however, nothing con- tained in this paragraph shall preclude Lessor and Lessee under this Airport Agreement from concluding lease agreements covering separate hangar or service buildings, which leases may contain a provision giving Lessee the right to maintain an employee's cafeteria and/or vending machines in the event the restaurant concession- aire at the airport shall decline to operate a facility convenient to such separate buildings. the right to install and operate, on and in the Terminal Building, at Lessee's expense, identifi- cation signs representing its business, which signs shall be substantially uniform in size, type and location with those of other air trans- portation companies, the number, general type, size, design and location of such signs to be subject to the written approval of Lessor in advance of installation, such approval shall not be unreasonably withheld. the right to install, maintain and operate, at Lessee's expense, by Lessor alone, or in con- junction with any other certificated air trans- portation companies who are Lessee's at the airport or through a nominee, such radio commu- nications (including ARINC), meterological and aerial navigation equipment and facilities in or on premises leased exclusively to Lessee and subject to the approval of Lessor with respect to the location of installation, if outside the premises leased exclusively by the Lessee, sub- ject to the availability of such space and/or ground areas as determined by the Lessor and at mutually agreed upon rental rates. the rights and privileges granted the Lessee under paragrapJls 5, 7, 8, 9 and 12 of this Article I may be exercised by the Lessee for or on behalf of any other certificated air trans- portation Company or by or through a nominee of Lessee, which nominee shall have been first approved by Lessor in writing, and such approval shall not be unreasonably withheld; provided, however, that any such nominee shall have no ,. ...........;.;:;z-...:;z;;.... It . . - 5 greater rights than the Lessee hereunder. Lessor agrees that it will levy no charge or toll upon any nominee appointed by the Lessee pursuant to paragraph 13, other than for space occupied and facilities and ser- vices us~~. Except as specifically provided for in this paragraph B, ...nothing herein shall he deemed to give Lessee any right or 1)('rmission to sell at the/Airport any goods or services to the public or to its em- ployees and passengers, other than the Air Transportation Services, and the customary services incidental thereto. Such prohibi- tion includes, h'ithout limiting the generality of the foregoing, trip insurance unless not otherwise available in the Terminal Building other than from a certificated air transpor- tation company. B. SPACE IN AND ADJACENT TO TERMINAL BUILDING. Lessee IS hereby grahted the non-exclusive use, in common with others, of such space and failcities as may be designated by Lessor in or adjacent to said Terminal Building consisting of a ground area to permit the taxiing, servicing, loading and unloading fo Lessee's aircraft, space for reasonable amount of apron equipment, paving, loading gates, and lighting for loading ramps and for other areas rtdjacent to the Terminal Building and used by passengers. Lessee may use such space in the Terminal Building with respect to which it is granted the exclusive use hereunder and all such space and faiclities inside or outside the Terminal Build- Ing with respect to which it is granted the non-exclusive use hereunder, subject to reasonable rules and regulations of Lessor as to the use of sllch space and facilities, for any or all pur- poses 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 installation, maln- tenance and operation of radio and other communications equipment and faci!ities, and meterological and navigation equipment and facilities. C. PARKING SPACE. Adequate and reasonably convenient vehicular parking spaces shall be provided by Lessor at a location selected by Lessor, where it will not interfere with operations - () - at the Airport, for the use of Lessee and its employees. Lessor may charge such employees a fee ill connection therewith. The right of ingress to D. RIGHT OF lNGRESS AND EGRESS. and egress from, but not the use o~ except as provided in this lease, the premises and facilities.r'eferred to in Sections "B" to "e" inclusive above, for Lessee, its employees, agents, passengers, guests, patrons, its suppliers of materials or furnishers of ser- vice, its aIrcraft, equipment, vehicles, macllinery or other property, its employees, agents, passcngers, guests, patrons, suppliers of materials or furnishers of service or their 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 lease and all rights herein granted Lessee shall become operative and effective the 15th day of December , 1980, and shall end on the 30th day of _~tember , 1981, unless sooncr terminated as hereinafter provided. ARTICLE III - RENTALS AND FEES A. Lessee agrees to pay Lessor the total sum of Three Thousand Five Hundred Seventeen and 50/100 Dollars ($3,517.50) plus sales tax for the term hereof, payable as follows: 1. $335.00 per month beginning January 1, 1981, and on the 1st day of each and every month thereafter for 9 months. 2. $167.50 for the period from December 15, 1980, through December 31, 1980. 3. A security deposit of $335.00 upon exe- cution of this lease to secure Lessor for any damages or rental which might be due and owing. 4. Lessee shall pay sales tax on all the rentals payable hereunder. B. LANDING FEES. In addition to the fixed rental set forth above, the Lessee sllall pay form 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, a .~ ., - I .- 1 and in g fee has e d up 0 nth e a p pro V cum a x I mum 1 and i n g Ive i g h t s 0 f the Lessee's Actual Revenue Trip Arrivals at the Airport each month as follows: $.16 per 1,000 pounds of approved maXImum gross landing weight. ./ ./ Lessee shall report to the Lessor not later than the 10th day of each month, the Lessee's Actual Revenue Trip Arrivals at the Air- port during tIle preceding calendar month, which shall include the number and type of such arrivals. The number of arrivals so operated, afld multiplied by the applicable approved maximum gross landing weights for each type of aircraft, shall determine the weight for which the ~onthly payment shall be made. The monthly reports above referred to shall also include and separately state the number and type of shuttle, courtesy, test, training, inspection, emergency and other non-revenue flights, landed at the Airport by Lessee. If, during any calendar year, the number of flights is greater than ten (10) percent of Lessee's Actual Revenue Trip Arrivals, Lessee shall pay regular landing fees upon such f] ights which exceed said ten (10) per cent allowance. Said fees S]1all he incluued by Lessor in its first regular monthly billing after the close of the calendar year. The term "approved maximum gross landing weight" for any aircraft as used 11erein, shall be the maximum gross landing weight approved by the Federal Aviation Administration for landing such aircraft at the Airport herein. Subject to reasonable rules and regulations adopted by the Lessor, it IS expressly agreed that payment of landing fees shall entitle Lessee to the use of loading apron at or adjacent to the Terminal Building for sllch reasonable time as may be required by Lessee for the loading and unloading of its aircraft; provided, how- ever, that Lessee s]lall incur no penalty or charge for additional time resulting from llnavoidable delays due to weather conditions, minor mecllanical defects, or other delays beyond control of Lessee, except when such delays preclude use of the apron by other commer- ,. - 8 cial all' carriers that are operating to or from the Airport. Sub- ject t Lessee's rights under Article I 8.6 hereof, the Lessor reserves the right""Jo designate alternate parking areas if deemed desirable or necessary. Furthermore, in the event the Lessee de- /' sires to use the Airport apron and ramp facilities for aircraft storage purposes for more than twenty-four (24) hours prior approval must be obtained from the Lessor who will determine what apron or ramp areas are available for this purpose and the Lessor shall have the right to charge reasonable storage rates as mutually agreed upon between the Lessee and Lessor. c. :r AXES AND ASSESSMENTS. Lessee shall pay all taxes and assessments whic!} 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 exer- cise and enjoyment of the rights and privileges granted herein; pro- vided this s!lall not prevent the Lessor from making charges to Lessee for the use of the Airport, its facilities and services as herein specifically authorized. DEFAULT FOR FAILURE TO PAY RENTALS, FEES AND CHARGES. In D. the event Lessee fails to pay any rentals on the first of each month, or fails to pay charges and fees hereunder within ten (10) days after Lessor transmits a statement therefore to Lessee, such failure shall be a default of this lease. Lessor may, at its op- tion, immediately or at any time thereafter, enter into and upon the premises hereby leased or 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 re- move 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 obligated to participate 111 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 ff'r Circuit Court having compe- tent jurisdiction shall determine as a reasonable attorney's fee. ARTICLE IV - SERVICES TO PUBLIC, Lessee may, alone or in conjunction with other certificated air transportation companies who are Lessees at the Airport, or through a nominee approved by Lessor, provide sufficient porter service, tommon bag claim service in the area designated herein for the convenience of its passengers provided, however, that Lessor shall be under no obligation to provide or contribute to the fur- nishings of such 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 11erein granted, and has full power and authority to enter into this agreement In respect thereof. ARTICLE VI - RIGHT TO PURCHASE SUPPLIES AND MATERIALS Lessee shall, except as herein otherwise provided, have the right to purchase or otherwise obtain personal property of any nature (including, but not limited to, gasoline, fuel, propellants, lubri- eating oil, grease, food, beverages and other materials, equipment and supplies) deemed by it to be required by or incident to, Lessee's operations, its exercise of the rights herein granted and its dis- charge of the obligations herein imposed, from any person, partner- ship, firm, association or corporation it may choose. Except as herein otherwise 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 privilege of purchasing, selling, using, storing, withdrawing, hand- ling, consuming, loading or unloading, or delivering any such per- ~..:..-.. -10- sonal 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. .... , Nothing in this lease shall bydeemed to restrict in any manner Lessor's right to charge any person;' partnership, firm, association or corporation rental for the use of Lessor's property or any Im- provements thereon or thereto where such use of said property or lmprovements are of a regular or permanent nature as distinguished from a temporary or transitory nature or where such use is of such a nature as to constitute the performance of a commercial business at the Airpor~. Lessor shall make no charge for surface transpor- tation of Lessee's passengers when such passengers are carried to or from the Airport at Lessee's expense occasioned by flight cancel- lations. Lessor shall have the right to charge persons, partner- ships, firms, associations or corporations, a fee for the sale and serving of food and beverages to Lessee at the Airport for consump- tion on its aircraft aloft; provided, however, in the event the Lessee maintains a flight kitchen at the Airport for the prepara- tion of food, no such fee shall be charged to the suppliers of unprepared food to the said flight kitchen; and provided further that no such fee shall be charged to any persons, partnerships, firms, associations or corporations operating off the Airport from which the Lessee may purchase in-flight meals and beverage require- ments if Lessee is forced to discontinue its purchase of in-flight meals and beverage service from the Concessionaire to meet Lessee's standards as to quantity, quality, cost of service. In the event said Concessionaire fails to furnish in-flight meals and beverage service In accordance with Lessee's reasonable and published stand- ards as to quantity, quality and cost of service, the Lessor shall promptly, upon receipt of written notice from Lessee, serve written notice on said Concessionaire to comply with SUC]l standards. Should the said Concessionaire continue to fail or refuse to meet such ~""'--''''--''''''''' -11- standards, within thirty (30) days after receipt of said notice to the Concessionaire, Lessee may, after five (5) days prior written notice to I.essor, and after demonstrating to Lessor that such Con- ...., cessionaire has failed or refuses .so meet such standards, purchase its in-flight meals and beverage se'l:"vice from an off-the-Airport supplier without the assessment of any fee by Lessor as aforesaid. Should Lessee choose to purchase its in-flight meals and beverage service from an off-the-Airport supplier for any other reason than that set forth above, then in such event, Lessor may assess a fee (but not in excess of the fee assessed the said Air- port Conc~ssionaire) on the off-the-Airport supplier for sale of in-flight meals and beverage service to Lessee. ARTICLE VIr - MAINTENANCE AND OPERATIONS BY LESSOR Except as otherwise specifically provided herein Lessor, during the term of this lease, shall operate, maintain and keep in good repair the Airport, Terminal Building, vehicular parking space, all appurtenances, facilities and services now or hereafter connected witll the foregoing, including, without limiting the generality here01, all field lighting and other appurtenances, facilities and services which Lessor has agreed to furnish and supply hereunder. Provided, however, that Lessor shall not be required to perform maintenance and make repairs (a) in areas exclusively leased to Lessee or (b) to perform maintenance and make repairs occasioned by the negligence of Lessee or its employees, fire or other casualty excepted, in which case Lessor may perform such maintenance or make such repairs and charge the reasonable cost of same to Lessee. Pro- vided also that Lessor may abandon certain facilities which are 110 longer reasonably justified for proper and adequate operation at the Airport. Lessor 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 promlltness, from the runway, taxiway and loading area, and immediately adjacent to such runways, taxiway and loading areas for tIle safe, convenient and - 12 - 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 standards or ratin"g$ issued by the Federal Aviation Administration, [or airports of substantially simi1..ar 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 Lessor to elllarge the Airport or to make extensions or addi- tions to the landing area, runway, taxiway, or other appurtenance of the Airport. Lesso.r, at its cost, shall keep the public and passenger space ln the Terminal Building, including the common departure area, adequately supplied, equipped, furnished and decorated and sllall maintain adequate directional signs in said spaces and in all other public and passenger spaces at the Airport, including, but not limited to signs indicating the location of all public restaurants, restrooms, newsstands, telephones, baggage counters and all other facilitles for passenger or public use in the Terminal Buildjng or elsewhere on the Airport. Lessor shall supply adequate light and water for the pub! ic and passenger space in the Terminal Building. Lessee shall not per- form any cleaning or maintenance of aircraft except in designated area under separate lease. Further, it is specifically agreed that no cleaning or maintenance of aircraft shall be performed on Airport runways or ramps. Lessee shall pay for its own electrical power in its exclusive areas, which power shall be separately metered. The Lessee shall, at its expense, repair, maintain or replace, as may be required, all plumbing fixtures, electrical incandescent bulbs or fluorescent tubes or other lighting devices located in its exclusive areas wi thin the space leased hereunder. Lessor, at its cost, shall also provide and supply adequate ligllting for the common departure area, vehicular parking spaces, loading ramps, adequate field light- ing on and for tIle Airport, including without limiting the generality -1:0;- hereof, landing 1 ights and beacons. Lessor shall also provide jani- torial 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, sani- ./ tary and presentable. Determinatio~ of adequacy, as used throughout this ARTICLE VII, shall be made solely by Lessor but shall be at least equal to the standards for airports of substantially similar size and nature. ARTICLE VIII - GOVERNl'-IENTAL FACILITIES It IS expressly agreed that if funds for the provIsIon, maIn- tenance and 6peration of the Control Tower and/or other air naviga- tion aids or other facilities required or permitted by the United States and 11eeded by the Lessee or Lessee's operation at the Air- port, which are now, or may be hereafter furllished by the United States, are discontinued by the United States, Lessor shall not be required to furnish said facilities. ARTICLE IX - RULES AND REGULATIONS Lessor shall have the right to and shall adopt and enforce leasonable rules and regulations, which Lessee agrees to observe and obey, with respect to use of the Airport Terminal Building 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 and with pro- cedures prescribed or approved from time to time by the Federal Aviation Administration with respect to the operation of Lessee's aircraft at the Airport. Lessor shall provide Lessee with a copy of such rules and regu- lations from time to time. ARTICLE X - DM1AGE OR DESTRUCTION OF PREMISES If any building of Lessor in which the Lessee occtlpies exclusive space hereunder shall be partially damaged by fire, explosions, the clements, the public enemy or other casualty, but not rendered un- tenantable, the same shall be repaired with due diligence by Lessor ':!.':.;'-~.:-:'.,=-' -..----., -14- It his own cost and expense. If the damage shall be so extensive 3S to render such building untenantable but capable of being repaired within thirty (30) days, the same shall be repaired with due dilj- gence by Lessor at its own cost an~expense, and rents payable here- under with respect to the Lessee's exclusive space shall be pro- portionately paid up to the time as such building shall be fully restored. In case any such building is completely damaged by fire, explosion, the clements, the public enemy or other casualty, or so damaged that it 'vi] 1 or does rCTTIaln untenantable for more than thirty (30) days, the Lessor shall be under no obligation to repair and reconstruct such building, and rent payable hereunder with re- spect to Lessee's exclusive space in said building shall be propor- tionately paid Uj) to the time of such damage or destruction and shall thencefortl) cease until such time as the premises may be fully restored. If witllin ninety (90) days after such damage or destruc- tion, Lessor fails to notify Lessee of its intention to repair or reconstruct the damaged or destroyed building or to furnish a sub- s tan t i ally e q l]j va] en t fa c i 1 i t y, L e sse C may g i veL e s SOl' \H i t t C n notice of its intention to then cancel this Dgreement in its en- tirety or to cancel, as of the date of such damage or destruction, such part of tllis agreement as relates only to said buildings. ARTICLE XI - CANCELLATION BY LESSOR The Lessor may cancel this agreement by giving Lcssee sixty (60) days advance written notice to be served as hereinafter provided upon or after the happening of anyone of the following events: 1. The filing by Lessee of a voluntary petition in bankruptcy. 2. The ins ti tut ion of proceedings in bankruptcy against Lessee and adjudication of Lessee as a bankrupt pursuant to such proceedings. 3. The taking by a court of jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any Federal re-organiza- tion act. 4. The appointment of a receIver of Lessee's assets. 5. The divestiture of Lessee's estate herein by other operation of law. ~:o -1 S 6. The abandonment by Lessee of its conduct of air transportation at the Airport for a period of ninety (90) days. 7. . The default by Lessee in the performance of any covenant....or agreement herein required to be performed by Lessee other than f;1ilure to pay rentals, fees and chargeS' when due for which IH 0 vis ion ism ad e in A l' t it leI I IF, and the failure of Lessee to remedy such default for a period of sixty (60) days after receipt from the Lessor of written notice to remedy the cancellation, as above provided, shall be of any force or effect if Lessee shall have remedied the default prior to Lessor's notice of cancel- lation. 8. The lawful assumption by the United States C;overnmcnt or any authorized agency thereof of the operation, control, or use of the Air- . pOl.t ancl facilities, or any substantial part 'or i)arts thereof, in such manner as substan- tially to restrict Lessee, for a period of at least ninety (90) days, from operating there- on for the carrying of passengers, cargo, and property. No waiver of default by the Lessor of any of the terms, coven- ants or conditions hereof to be performed, kept and observed shall be construed to be or act as a waiver of any subsequent default of any of the terms, covenants and conditions herein contained to be performed, kept and observed by the Lessee shall 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 XII - CANCELLATION BY LESSEE Lessee may cancel this agreement any time that Lessee is not in default in its payments to Lessor hereunder, by givine Lessor sixty (60) days advance written notice to be served as hereinafter pro- vided, upon or after the happening of anyone of the following events: 1. Issuance by any court of competent jurisdic- tion of an injunction in any way preventing or restraining the use of the Airport or any part thereof for airport purposes, and the re- maining in force of such injunction for a period of at least ninety (90) days. 2. 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, _.._n~.'_~_ - 1(1 earthquake, other casualty, or acts of God or the public enemy, provided that same is not caused by negligence or willful acts of fail- ure to act on part of Lessee. 3. The defendt by the Lessor in performance of any covenant or agreement herein required to be performed by the Lesso-;' and the failure of Lessor to remedy such def~llt for a period of ninety (gO) days after receipt from Lessee of written notice to remedy same; provided, how- ever, that no notice of cancellation, as pro- vided above, shall be of any force or effect if Lessor shall have remedied the default prior to receipt of Lessee's notice of cancel- lation. 4. The lawful assumption by the United States Government or any authorized agency thereof of .the operation, control or use of the Air- 'port and facilities, or any substantial part or parts thereof, in such a manner as sub- stantially 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. 5. The failure or refusal of the Civil Aero- nautics Board to grant Lessee the right to operate into and from said Airport and the issuance by the Civil Aeronautics Board of a final order of suspension, termination or revocation of Lessee's authority to provide service at Key West International Airport, Monroe County, Florida. Lessee's performance of all or any part of this agreement [or 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 Lessee to cancel this i1greement for failure by Lessor to so perform, keep or observe any of the terms, covenants or con- ditions 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 de- fault of any of the terms, covenants and conditions herein contained to be performed, kept and observed by the Lessor. ARTICLE XIII - INDEMNITY Lessee agrees fully to indemnify, and save and hold harmless, the Lessor [rom and against all claims and actions and all expenses incidental to tIle investigation and defense thereof, based upon or -17 arIsIng out of damages or injuries to third persons or their property, caused by the negligence of Lessee, its agents or employ- ~es, in the use or occupancy of the said leased premises, runways, ramps or common areas at the Airport by Lessee; provided, however, that Lessee shall not be liable fofany injury or damage or less / occasioned by the negligence of Lessor, its agents or employees; and provided, further that Lessor shall give to Lessee prompt and reason- able notice of any such claims or actions and Lessee shall have the right to investigate, compromise and defend the same. Lessee agrees to carry, and keep in force, public liability insurance covering personal injury and property damage, and such other insurance as may be necessa.ry to protect Lessor herein from such claims and actions ~foresaid, Lessee agrees to carry and keep In force such insurance with minimum limits of liability for personal ~nJury In a sum not less than $100,000 for anyone person, and $300,000 for anyone accident; and for property damage In a sum not less than $200,000; and to furnish Lessor with proper certificates certifying that such insurance is in force. Lessee shall carry its insurance coverages ~ith insurance companies authorized to do business in the State of Florida. ~RTICLE IV - QUIET ENJOYMENT Lessor 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 Ilave and enjoy the leased premises and all rights and privileges of said Airport, its appurtenances and facilities granted herein. 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. Except as otherwise provided in Article XV, all structures, fix- tures, improvements, equipment and other property bought, installed, - 18- '~ erected or placed hI' Lessee in, 011 or about the Airport and premises leased under this lease (such fixtures, improvements and other property to include, without limiting the generality hereof, storage tanks, pipes, pumps, wires, poles, machinery and air conditioning ./ equipment) shall be deemed to be pe.r'sonalty 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 In additional period of ninety (90) days after the expiration or other termination of said term as tIle same may be renewed or extend- ed, 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, explosiol1 or other causes be- yond 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 land on which it IS located and title thereto shall thereupon rest in the Lessor. Pro- vided further that Lessor reserves the right to require Lessee to remove such improvements and property at Lessee's expense. The Lessor reserves the right to make a reasonable charge of rental for the period of ninety (90) days provided for herein for continuatiol1 of occupancy of space; provided, however, that no charge shall be made to Lessee 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 50, the expenses of such removal are to be borne by the Lessee. ARTICLE XVI - DEFINITIONS OF TERMS Whenever the term Federal Aviation Administration ]s used in this lease it shall be construed as referring to the Federal Aviation Administration created by the Federal Government under the Federal ..1.""'-.__.... - 1 ~) - 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 to the Direc- tor of Airports for Lessor. ARTICLE XVII - INSPECTION BY LESSOR Lessor may enter upon the premises now or hereafter leased ex- clusively'to ~essee hereunder at any reasonable time for any purpose npcessary, illcidental to or connected with the performance of its obligations hereunder, or in the exercise of its governmental func- tions. ARTICLE XVIII - ASSIGNlvlENT AND SUBLETTING Lessee sllall not at any time assign this agreement or any part thereof, nor sublet all or any portion of the leased premises herein \4.'ithout written approval of Lessor. ARTICLE IX - NOTICES Notices to .Lessor provided for herein shall be sufficient if sent by certified 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 certified mail, postage prepaid, addressed to: International Fransfer Corp. d/b/a PRO AIR SERVICES Concourse II, Miami International Airport Post Office Box 593213 Miami, Florida 33159 or to such other respective addresses as the parties may designate to each other in writing from time to time. ARTICLE XX - PARAGRAPH HEADINGS The paragrapll headings contained herein are for convenience of reference and are not intended to define or limit the scope of any provision in this lease. -~~ .. ____.,.-.___u_.._ -20 ARTICLE XXI - INVALID PROVISIONS In the event any convenant, condition or provision herein con- tained is held to b9 invalid by any court of competent jurisdiction the invalidity of allY such covenan-v;- condition or provision shall 1n no way affect any other covenant, cQ';ldition or provision herein contained; provided that the invalidity of such covenant. condition Ill' provision does not materially prejudice either Lessor or Lessee In its respective rights and obligations contained ill the valid covenants, conditions or provisions of this lease. ARTICLE XXII - COVENANT NOT TO GRANT MORE FAVORABLE TERMS Lesso! covenants and agrees not to enter into any lease, con- tract or agreement with any other air transport operator with respect to the Airport containing more favorable terms than tllis lease or to grant to any other air transport operator rights, privileges or concess10ns with respect to the said Airport whicll are not in accord to the Lessee hereunder unless the same terms, rights, privileges and concessions are concurrently made available to the Lessee. ARTICLE XXIII - 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 XXIV - 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 discriminate or permit discrimination against any person or groups of persons in any manner prohibited by Part 15 of the Federal Aviation Regulations, and the Lessor is hereby granted the right to take such action, anything to the contrary herein not withstanding, as the United States may direct to enforce this non-discrimination covenant. ARTICLE XXV - INTERPRETATION OF LEASE Nothing in this lease sllall be construed or interpreted In any manner whatsoever as limiting, relinquishing, or waiving of any \ -" - 2 1 - '. rights or ownership enjoyed by Lessor in the Airport property, or in any manner waiving or limiting its control over the operation, maln- tenance, etc., of Airport property or in derogation of such govern- mental rights as Lessor possesses, except as is specifically provided ./ for herein. ARTICLE XXVI - RENTAL INCREASE " . The parties specifically agree that the rental rates previously provided for herein shall increase automatically seven (7) per cent per year. All increases in rental rates will be computed annually after the first year of this lease and be used for the following year's rental rates. ARTICLE XXVII - CONDITION "AS IS" Tlle Lessee agrees to accept the premises which are exclusively leased to Lessee in "as is" condition and Lessor shall not be obligated to repair, maintain or renovate same. IN WITNESS WHEREOF, the parties have caused this lease to be ~ executed as of the day and year first above written. .... ' OF MONROE~ATE OF FLORIDA C. ~ a/~6 cY , h a i rm 0 f the Boa rd 0 f C t y- Commissioners of Monroe C _ y, Florida ,,' -. H -,..,~,' (Seal) Attest: .\ \ ) ,\1 I . -->' '.' /) : oJ) : \, ) '(.) ... /) : {II t f, ,J'," ; :.- \ 'I ' \- ( '. J I')) , ) . \.). \ ) , ~) \ /.' ,J \1 " ,).' 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