07/24/1975
7 ~ d -;::
THIS INDENTURE OF LEASE, made and entered into by and between
MONROE COUNTY, FLORIDA (hereinafter referred to as "LESSOR "), and
A A T AIRLINES, INC., A Florida corporation, d/b/a AIR SUNSHINE
(hereinafter referred to as "LESSEE"),
WITNESSE TH
WHEREAS, Lessor owns an airport known as Key West International
Airport, located in Monroe County, State of Florida (hereinafter called the
"AIRPOR T'I), and
WHEREAS, Lessee is engaged in the business of transportation with
respect to persons, property, cargo and mail at the Airport, and
WHEREAS, Lessee desires to lease certain premises, facilities and
rights in connection with and on the Airport and Lessor is willing to lease same
to Lessee upon the terms and conditions hereinafter stated,
NOW, THEREFORE, for and in consideration of the premises and of
the mutual covenants and agreements herein contained, and other valuable con-
siderations, Lessor does hereby demise and let unto Lessee and Lessee does _
hereby hire and take from Lessor certain premises, facilities and rights in
connection with and on the Airport as follows, to-wit:
AR TICLE I - TERM:
The term of this lease shall be for a period of
April . A. D. 197-2.
. A. D. 197~.
ore year, commencing on the
1st
day of
March
and ending on the
31st day of
ARTICLE II - RENTAL: Lessee agrees to pay Lessor for tIE use of
the Airport, all premises, facilities and rights granted hereunder for domestic
operations only. except as hereinafter set forth, an annual rental of $ 6,000.00,
payable in equal monthly amounts of $500.00 each, such payments to be made
within ten (10) days of receipt of Lessor's billing therefor; but not earlier than
the first day of each month for which the rent is applicable:
In addition to the above payment, Lessee agrees at the time of pay-
ment of the monthly installment set forth above to provide Lessor with a monthly
-2-
traffic count which is to include the number of passengers, amount of mail
cargo, freight movements and number of additional landings both in-count and
out- count.
The above payments are based upon the Les see I s use of facilities
assigned to it in the Airport Terminal Building, and the privilege of operating
four (4) flights per day. In the event Lessee operates more than four (4)
flights per day, Lessee shall then pay to the Lessor an addition sum of $2. 50
r
per flight over and above the four flights per day, such payments to be in
addition to the monthly payments contemplated hereunder.
In addition to the foregoing monthly payments, Lessee covenants and
agrees with Lessor to pay the required State Rental Tax.
ARTICLE III - EXCLUSIVE SPACE IN ADMINISTRATION BUILDING:
The exclusive use of the space referred to under Article II herein for such
uses as the Lessee may desire to make thereof in connection with or incidental
to its operation of a domestic air transportation system, including specifically
but not by way of limitation the use of said space for ticket counter area,
operations room and cargo storage area.
ARTICLE IV - GENERAL USE OF AIRPORT, LEASED PREMISES
AND FACILITIES: As ~uly authorized by competent Governmental authority,
Lessee shall have the right to oper~te a domestic transportation system, at
the Airport, by aircraft, for the carriage of persons, property, cargo and
mail, which right shall include th,e following:
(1) The right to use, in common with other domestic operators
/
authorized. to do so, the common areas of the Airport and appurtenances thereto,
which have been designated by Lessor for common use, including, but not
limited to, landing areas, aprons, taxiways, roadways, flood lights, ramp
lighting, beacons, signals, radio aids, sewerage, control tower, fire and
crash equipment and other conveniences for flying, landing and take-ofis of
aircraft of Lessee.
-3-
(2) The right to land, take-off, fly, taxi, tow on the ground, load
and unload aircraft and equipment used by Lessee in its operation of a do-
mestic air transportation system on the Airport.
(3) The right to make repairs, test, maintain, condition, service
with fuel; oil, greases or other supplies, park or store aircraft or other
equipment of Lessee or, with prior permission of Lessor, of any other
scheduled domestic air transportation company, on premises leased to Lessee
or on premises leased to such other scheduled domestic air transportation
companies.
(4) The right to train per sonne 1 in the employ of, or to be employed
by, the Lessee.
(5) The right to install, maintain and operate, at Lessee's expense,
by Lessee alone or in conjunction with any other air transportation com-
panies who are lessees at the Airport, or through a nominee, radio, telephone,
teletype and other communications equipment, meteorological and aerial
navigation equipment and facilities in or on premises leased exclusively to
Lessee, subject to the approval of Lessor so as to enable Lessor to prevent
interference with the reasonable use of the Airport by other authorized persons,
such approval not to be unreasonably withheld.
(6) The right to buy, sell, exchange or otherwise dispose of Lessee's
aircraft, engines, accessories, gasoline, oil, greases, lubricants, fuel, food
and other equipment or supplies, ,including any article or goods used by or
bought for use by Lessee in connection with its conduct of domestic air trans-
portation, provided that such right shall not be construed as authorizing the
conduct or a separate business by Lessee, but shall permit Lessee to perform
such functions as are incident to its conduct of domestic air transportation
and further provided that Lessee shall not sell gasoline, fuel, propellants,
-4-
greases and other lubricants, except to a subsidiary or affiliated company.
unless authorized so to do by Lessor.
(7) The right to install, maintain and operate or cause to be in-
stalled, maintained or operated, without cost to Lessor, in a hangar or any
other buildings exclusively leased to the Lessee, a cafeteria, restaurant or
other plant for the purpose of preparing, cooking and dispensing of foods
and beverages for consumption on Lessee's aircraft, or for Lessee's em-
ployees, but shall not include the right to maintain or operate a public cafe-
teria or restaurant for the purpose of selling food or beverage to the public.
Any space exclusively leased to Lessee hereunder shall require an additional
rental to be paid other than the rental set forth above, to be agreed upon by
Lessee and Lessor when said additional space is necessary. Neither shall
this right be considered to authorize the Lessee to install and operate auto-
matic vending machines of any nature at-any-place-on--theAirport. --
(8) The right to install, maintain and operate, without cost to Les-
sor, by Lessee alone, or in conjunction with any other air transportation com-
panies who are lessees at the Airport, or through a nominee, a message tube
system and other communications systems between suitable locations in the
aircraft loading areas and suitable locations in or about Lessee's hangars
and between any or all of the said locations and Lessee's offices, the locations
to be subject to the approval of Lessor, nsofar as the interests of safety
and convenience of all are concerned, which approval shall not be unreasonably
withheld.
(9) The right, directly, or through a contractor of Lessee's choice,
to transport Lessee's cargo, property and mail to, from and at the Airport
by such vehicles as Lessee or Lessee's contractor may desire or require.
This operation of such vehicles shall be subject to the reasonable regula-
tions of the Airport relative to the use of ground vehicles on . Airport property.
-5-
(10) The right to install and operate on the interior of the premises
exclusively leased, at Lessee's expense, advertising signs representing its
busines s, which signs shall be substantially uniform in size, type and loca-
tion with those of other air transportation companies leasing space on the
premises. The number, size, type, design and location of all such signs
shall be subject, however, to the prior written approval of Lessor.
(11) Consolidation of Ground Services: The rights and privileges
granted Lessee herein, with respect to the performance of ground services
and activities in connection with its air transportation system at the Airport,
may be exercised by Lessee for and on behalf of any other domestic air
transportation company or companies authorized by Lessor to use the Airport.
Without limitation, such rights and privileges shall be deemed to include all
activities incidental to the handling of reservations, the ticketing of passengers,
the receipt, dispatch, loading, unloading and storage of passengers and their
baggage, property, cargo and mail, and all ramp, repair, maintenance,
storage, fueling and dispatching services incidental to the operations of air-
craft at the Airport. The foregoing shall not be. construed to. authorize such
other company or companies to use the Airport without the payment of fees
and charges established by Lessor.
(12) The right to purchase, on or off said Airport, of Lessee's re-
quirements of gasoline, fuel, lubricating oil, grease, food and other pas-
senger supplies, and any other materials and supplies, from any person or
company of Lessee's choice, and the right to make agreements with any person
or company of Lessee's choice for work to be done for Lessee.
(13) The right to service, by Lessee, its suppliers or others, on
leased premises, and upon the apron of the Terminal Buhding, Lessee's
aircraft and other equipment, by truck or otherwise, subject to regulations
'of Lessor, concerning only the orderly operation of the Airport, with gasoline,
-6-
oil, grease and any other fuel, food or supplies to be used by Lessee; such
right shall include, without limiting the generalities thereof, the right to
erect, install and maintain on said Airport, on leased premises, in accord-
ance with insurance underwriters I standards, adequate underground storage
facilities for such gasoline, oil and other inflammable fuel or supplies, to-
gether with necessary pipes, pumps, motors, filters and other appurtenances,
at convenient locations, upon the payment of an additional rental other than
the rental set forth above, to be agreed upon by Lessee and Lessor, such
storage locations to be subject to prior written approval of Lessor when said
additional space is necessary, such approval not to be unreasonably withheld.
(14) Parking Space: The use by Lessee and its employees in com-
mon only with the other air transport operators who may be lessees of space
at the Airport and their employees, of adequate vehicular parking space
located as near as 'pos sible to said Administration Building, without charge to
Lessee or to said employees.
(15) Right of Ingress and Egress: The right of ingress to and
egress from premises and facilities of the Airport herein leased, without
charge to Lessee, its employees, agents, passengers, invitees and suppliers
of materials and furnishers of service.
(16) Maintenance and Operation of Airport: Les sor agrees that it
will at all times maintain and operate and keep clean with adequate and
efficient personnel, and keep in gbod repair, said Airport and the appurten-
ances, facilities and services connected therewith, and keep said Airport
and its approaches free from obstruction, congestion and interference for
the safe, convenient and proper use thereof by Lessee, and will maintain
and operate said Airport so as to entitle it to the approve"d rating by the Fed-
eral Aviation Agency and all other appropriate regulatory authorities.
-7-
(17) Building by Lessee: Lessee, at its own cost and expense, may
construct and install, in accordance with applicable laws and ordinances,
in or on any space which is exclusively leased to Lessee, any buildings,
structures or improvements, including equipment and underground storage
tanks necessary for use in connection with its domestic air transportation
operations, the locations to be subject to prior written approval by Lessor,
such approval not to be unreasonably withheld. Les see may at its own cost
and expense alter, modify, repair and maintain any building s, structure s or
improvements constructed or installed on premises leased hereunder, plans
for which are to be subject to prior written approval of Lessor, such
approval not to be unreasonably withheld. Any space exclusively leased to
Lessee hereunder shall require an additional rental to be paid by Lessee to
Lessor other than the rental set forth above, to be agreed upon by the Lessee
and Lessor when said additional space is necessary. Any building so con-
structed on the leased premises by Lessee shall at the termination of this
lease revert to the Lessor.
(18) Use of Public Address System: Lessee shall have the privilege
of using the Airport public address system and operating a sufficient number
of microphones and units to properly conduct its business in the area in the
Terminal Building leased hereunder, without further charge. Lessee shall
have the use of such units presently installed in the leased space. However,
additional units used by Lessee may be procured and installed at Lessee's ex-
pense and any expense involved in relocation of any units will be borne by
Lessee.
(19) Alterations and Improvements: Lessee is not authorized to
.
make any alterations or improvements to the premises leased herein without
prior written approval of Lessor, such approval not to be unreasonably with-
held.
-8-
ARTICLE V - USE OF TERMINAL BUILDING: The use of space in
the Terminal Building leased hereby shall be for purposes incidental to the
operation of Lessee's domestic air transportation business and will be in
accordance with the following conditions:
(1) General: It is expressly understood that Lessor will keep the
public space in the Terminal Building attractively furnished, and will provide
and supply adequate light, electricity and water for the public space, janitors
and other cleaners necessary to keep the public space in the Terminal Build-
ing at all times clean, neat, orderly, sanitary and presentable.
(2) Electricity: Lessee agrees to pay Lessor for all electricity
used by it in the space leased and solely occupied by it hereunder. Such elec-
tricity will be separately metered.
(3) Janitor and Cleaning Services: Lessee shall, at its own expense.
provide janitor and cleaning services within the exclusive space leased and
occupied hereunder. and shall keep the space in a clean and sanitary condi-
tion at all times. Lessor agrees to provide adequate rubbish containers into
which Lessee may, with its own personnel, dump rubbish which may accum-
mulate in Lessee's normal use of the Terminal Building.
(4) The operations of Lessee shall be conducted in an orderly and
proper manner and so as not to annoy, disturb or be offensive to others at
the Airport.
(5) It shall be Lessor's' responsibility to maintain and replace all
glass bordering both on the field side of the leased space and on the public
corridor of leased space, except in instances where damage to such glass
should occur through the acts of Lessee, its agent, suppliers, passengers,
or others doing business with it at the Airport, in which ~vent Lessee will
assume such responsibility.
-9-
(6) The personal property placed or installed by Lessee in the
exclusively leased area shall remain the property of Lessee and must be
removed on or before the expiration of the term hereby granted. In the event
of expiration or other termination, Les see shall have ten (l 0) days, exclusive
of Saturdays, Sundays or holidays, after such termination, in which to re-
move its property.
(7) If Lessee shall fail to remove its property upon the expiration
or termination hereof, Lessor may, at its option, after expiration of period
of grace granted by the preceding paragraph hereof, as agent for Lessee and
at Lessee I s expense and risk, remove such property to a public warehouse
for deposit, or retain the same in its own possession, and after the expira-
tion of 30 days therefrom, sell the same at public auction, the proceeds of
which shall be applied first to the expenses of sale, second to any sums
owed by Lessee to Lessor, and any balance remaining shall be paid to Lessee.
or Lessor may take such other action as may be necessary or desirable.
(8) Unless otherwise expressly provided or agreed, Lessee shall
not use the leased space (or permit it to be used) for the sale to its employees
or to any other person, of any beverages, food, candy, gum, ice cream or
lce cream products, souvenirs, jewelry, novelties, clothing, flowers, sport-
lng goods, photographic goods or toilet articles, or for the furnishing, for a
consideration, of theatre tickets, shoe shines, pressing and cleaning (ex-
cept of its employees' uniforms),' developing and printing of photographs and
films, ground baggage checking services or for the display of the advertising
of third parties, except in cases in which Lessee handles ground services
for another air transportation company, pursuant to paragraph (11) of
AR TICLE IV, or for the installation of any coin-operated machines or de-
vices, or for any other purpose beyond those herein expressly. authorized.
-10-
(9) Lessor, or its authorized representative, shall have the right
at any time and as often as it considers necessary, upon request to Lessee,
to inspect the space and (without obligation to do so) enter thereon to make
ordinary repairs and, in the event of an emergency, to take such action
therein as may be required for the protection of persons or property or
otherwise to execute the terms and conditions of this lease.
(10) The Lessee shall, at its expense, repair or replace, as may
be required, all electrical incandescent bulbs or flourescent tubes or other
lighting devices located within the space leased hereunder.
(11) Improvements: During the term of this lease, neither Lessor
nor Lessee is obligated by this leas e to make any repairs, replacements,
improvements, alterations or additions of any nature. other than those specif-
ically agreed upon in this lease, except that Lessor shall make such structural
repairs as may be required to keep the leased space usable for the purpose
leased.
ARTICLE VI - INSURANCE AND INDEMNITY: Lessee shall main-
tain public liability, Airport liability, aircraft liability, fire and property
damage insurance, and shall carry Workmen's Compensation and employers'
liability insurance as required by law. Lessee shall indemnify and hold harm-
less Lessor from any and all demands, losses, liabilities or judgments, to-
gether with costs and expenses incident thereto, which may accrue against,
be charged to, or be recoverable from Lessor as a result of the negligent acts
or omissions of Lessee, its employees or agents in connection with Lessee's
use and occupancy of the demised premises, excluding, however, such as may
be occasioned by the negligence of Lessor, its employees or agents. Lessor
shall give to Lessee prompt and timely notice of any claim made or suit in-
stituted, which in any way, directly or indirectly, contingently or otherwise,
affects or might affect, Lessee, and Le~see shall have the right to compromise
or participate in the defense of the same to the extent of its own interests.
i
. !
-11-
ARTICLE VII - QUIET ENJOYMENT: Lessor agrees, that on pay-
ment of the rentals, fees and charges herein provided for, and performance
of the covenants and agreements on the part of Lessee to be performed here-
under, Lessee shall peaceably have and enjoy the leased premises, rights
and facilities herein granted.
ARTICLE vm - CANCELLATION BY LESSOR: In the event Lessee
shall file a voluntary petition in bankruptcy or proceedings in bankruptcy
shall be instituted against it and Les see is thereafter adjudicated bankrupt,
pursuant to such proceedings, or that the court take jurisdiction of Lessee
and its assets, pursuant to proceedings brought under the provisions of any
Federal reorganization act, or that a receiver of Lessee's assets shall be
appointed, or that Lessee shall be prevented by any final action of any Federal
or State authority from conducting and operating its transportation system for
the carriage of persons, property and mail by aircraft at the Airport, or that
Lessee shall fail to perform, keep and observe any of the terms, covenants
or conditions herein contained on its part to be performed, kept or observed.
Lessor may give Lessee notice in writing to correct such condition or cure
such default, and, if any such condition or default shall continue for 30 days
after the receipt of such notice by Lessee, Lessor may, after the lapse of
said 30 day period and prior to the correction or curing of such condition or
default, terminate this lease by 20 days written notice, and the term hereby
demised shall thereupon cease and expire at the end of such 20 days in the
same manner and to the same effect as if it were the expiration of the original
te rm.
ARTICLE IX - CANCELLATION BY LESSEE: Lessee, in addition
to any right of cancellation or any other right herein given to it, may cancel
this lease in its entirety and terminate all or any of its obligations hereunder
-12-
at any time by 30 days written notice or after the happening of anyone of the
following events:
(a) Any failure or refusal by the Federal Aviation Agency to permit
Lessee to operate into, from or through said Airport with the type of equip-
ment which Lessee happens to own at any time.
(b) The breach by Lessor of any of the covenants or agreements
herein contained and the failure of Lessor to remedy such breach for a period
of 30 days after receipt of written notice of the existence of such breach.
(c) The inability of Les see to use said premises and facilities con-
tinuing for a period longer than 30 days due to any law or order, rule or
regulation of any appropriate Governmental authority having jurisdiction over
the premises or the operations of Lessee, except that, upon the inability of
Lessee to use the Airport and leased premises because of war, earthquake
or other casualty, Lessee may suspend this lease during such inability.
During the period of any such suspension the Lessor retains the right to
utilize the leased premises as it deems advisable. The inability of Lessee to
use said premises and facilities due to strikes of its employees shall not be
considered grounds for Lessee to terminate or cancel this lease.
(d) The termination of Lessee's obligations or right to carry passen-
gers and/or United States Air Mail to, from or through Key West, Florida.
ARTICLE X - ASSIGNMENT AND SUBLETTING: Lessee shall not,
at any time, unless provided for elsewhere in this lease, assign this lease
--.------.--..----...-,.-.... '-
or any part thereof, nor shall Lessee sublet the premises nor any part thereof
herein leased to it, without the prior written consent of Lessor, except that
without such consent, Lessee may assign this lease to any corporation with
which Lessee is affiliated, may merge, consolidate, or ~hich may succeed to
the business of Lessee.
.'
-13-
ARTICLE XII - DAMAGE OR DESTRUCTION OF PREMISES: If
any building of Lessor in which Lessee occupies exclusive space hereunder
shall be partially damaged by fire, the elements, the public enemy or other
casualty but not rendered untenantable, same shall be repaired with due
diligence by Lessor at its own cost and expense. If the damage shall be so
extensive as to render such building untenantable but capable of being re-
paired in 30 days, same shall be repaired with due diligence by Lessor at
its own cost and expense and the rent payable therefor hereunder, with
respect to Lessee's exclusive space in such building, shall be proportionately
paid up to the time of such damage and shall thenceforth cease until such time
as said building shall be fully restored. In case any such building is com-
pletely destroyed by fire, the elements, the public enemy or other casualty,
or so damaged that it will or does remain untenantable for more than 30 days,
at the option of the Lessee, either:
(1) said building shall be repaired or reconstructed with due dili-
gence by Lessor at its own cost and expense, and the rent payable hereunder
with respect to Lessee's exclusive space in said building shall be proportion-
ately paid up to the time of such damage or destruction and shall thenceforth
cease until such time as said building shall be fully restored; or
(2) if within 12 months after the time of such damage or destruction,
said building shall not have been repaired or reconstructed for Lessee's
use, Lessee may give Lessor written notice of its intention to cancel this
lease in its entirety or to cancel as of the date of such damage or destruction,
such part of this lease as relates only to said building.
In the event that the Airport, or any other premises herein leased,
shall be rendered untenantable or unusable because of th~ condition thereof,
there shall be a reasonable and proportionate abatement of the rentals, fees
and charges provided for herein during the period that the same are 80 un-
tenantable or unusable.
-14-
ARTICLE xm - NOTICES: A bill or statement may be rendered or
any notice or communication which Lessor may desire to give Lessee shall
be deemed sufficiently rendered or given if the same be in writing and sent
~al
by registered or certified mail, addressed to Lessee at
Airport, Key West, Florida! 33040,
-= or at the address Lessee
may substitute therefor by notice to Lessor, or left at such address, and
the time of rendition of such bill or statement and the giving of such notice
or communication shall be deemed to be the time when the same is mailed,
left or delivered as herein provided. Any notice from Lessee to Lessor shall
be validly given if sent by registered or certified mail, addres sed to and
delivered as herein provided. Any notice from Lessee to Lessor shall be
validly given if sent by registered or certified mail, addressed to the Board
of County Commissioners, Monroe County Court House, Key West, Florida,
or such other address as Lessor shall hereafter designate by notice to
Lessee.
ARTICLE XIV: The Lessee hereby agrees not to operate a charter
service out of the Marathon Airport and will transport passengers only on its
scheduled flights and will not solicit any flights originating from the Marathon
Airport, except to Miami, Florida, which being understood by and between
the parties hereto that the Lessor has an exclusive contract with the Marathon
Air Charter, Inc. to operate charter flights from the Marathon Airport.
ARTICLE XV: The Lessee agrees not to engage in any type of auto
rental business at the Airport or act as an agent for any auto rental agency at
said Airport.
ARTICLE XVI: The Lessee agrees that in the event the Lessor is
required to post guards at said Airport to inspect luggage. and passengers
flying on Lessee's aircraft that Lessee will pay for the cost of said guards.
-15-
ARTICLE XVII: The Lessee shall have the right to renew this lease
for an additional term of one year, at rentals to be mutually agreed upon at
the time of such renewal between Lessor and Lessee.
IN WITNESS WHEREOF, the parties have caused these presents to
be executed as of the
24 day of
July
, A. D. 1972..
Signed, Sealed and Delivered
in Our Presence:
MONROE COUNTY, FLORIDA
ayor Q Monroe County and
Chair an of the Board of County
Commis sioner s
As to the Lessor
(SEAL)
Attest:
-/
Clerk f e Circuit Court of Monroe
County, Florida and ex officio Clerk
of the Board of County Commissioners
of Monroe County, Florida
~
r:;r
~~~aC9:r:IG\. 'c. . .
By ~
President
(SEAL)
As to the Lessee
Attest:
~~
Secretary