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02/12/1974 :;) I;) 71 THIS INDENTURE OF LEASE, made and entered into by and between MONROE COUNTY, FLORIDA (he reinafter referred to as "LESSOR "), and A A T AIRLINES, INC., A Florida corporation, d/b/a AIR SUNSHINE (hereinafter referred to as "LESSEE"), WITNESSETH WHEREAS, Lessor owns an airport known as Key West International Airport, located in Monroe Coun~y, State of Florida (hereinafter called the "AIRPOR TII), 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, i 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 oLthis lease s hall be for a period of ore year, commencing on the 1st day of April , A.D. 1974 , - and ending on the 3]st day of March , A.D. 1975 AR TICLE II - RENTAL: Lessee agrees to pay Lessor for t:re use of the Airport, all premises, facilities and rights granted hereunder for domestic operations only, except as hereinafter set forth, an annual rental of $3,300. 00, payable in equal monthly amounts of $275. 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 Lessee'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 per flight over and above the three 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 uI,lder 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 a'ir transportation system, including specifica.lly but not by way of limitation the use of said space for ticket counter area, operations room and cargo storage area. AR TICLE IV - GENERAL USE OF AIRPOR T, LEASED PREMISES AND FACILITIES: As duly authorized by competent Governmental authority. Lessee shall have the right to operate a domestic transportation system, at ., the Airport, by aircraft, for the carriage of persons, property, cargo and mail, which right shall include the 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, \vhich 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-oHs 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 personne 1 III 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, acce s sories, 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 '.'lith 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 Less ee I s aircraft, or for Le s see r 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 Les.see to install and operate auto- matic vending machines of any nature at any place on the Airport. (8) The right to install, maintain and operate, without cost to Les- sor, by Lessee alone, or in conjunction \vith 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 Lessee1s hangars and between any or all of the said locations and Le s see I s offices, the locations to be subject to the approval of Lessor, insofar 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 Les see I 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 exclusive ly leased, at Le ss ee I s expens e, advertising signs representing its business, 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 pnor 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 acti vitie s incidental to the handling of reservations, the ticketing of pas sengers, the receipt, dispatch, loading, unloadin~ 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 \vithout 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 cornpany 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 Building, 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, -.,.------..-.-. '---"-''''._.--.---~_._--~.,,-.._______,______ __n________._ -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 undenNriters r standards, adequate underground storage facilities for such gasoline, oil and other inflammable fuel or supplies, to- gether with nece s sary pipe s, pumps, motors, filter s 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 subj ect to prior written approval of Le s sor 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- man 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 possible 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 Les s ee, its employees, agents, pas sengers, invitees and suppliers '~.' of materials and furnishers of service. (16) Maintenance and Operation of Airport: Lessor agrees that it will at all time s maintain and operate and keep clean with adequate and efficient per sonne I, and keep in good repair, said Airport and the appurten- ance s, facilitie sand 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 approved rating by the Fed- eral Aviation Agency and all other appropriate regulatory authorities. ~- . ~.~_._--.',~-'-~'~.............-.-...,..--' ......_......__~.--__h--.,______,~~."..____~_".'-.,__ - 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. Lessee may at its own cost and expense alter, modify, repair and maintain any buildings, structures 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 s.~ch units presently installed in the leased space. However, additional units us ed by Le ssee may be procured and installed at Les see r S ex- pense and any expense involved in relocation of any units \vill 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 \vith- held. -8- AR TICLE 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 \\:i11 provide and supply adequate light, electricity and \;,,-ater 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) E~ectricity: 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:. Les see shall, at its own eXDense, 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 glas s should occur through the acts of Les see, its agent, supplier s, pas senger s, or others doing busine s s with it at the Airport, in which event Les see wi 11 assume such responsibility. -9- (6) The personal property placed or installed by Lessee in the exclusively leased area shall ren1ain 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, Lessee shall have ten (10) days, exclusive of Saturdays, Sundays or holidays, after such termination, In \\-hich 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's expense and risk, remove such property to a public warehouse for deposit, or retain the same in its OiNn 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 -"" ice cream products, SouvenIr s, jewelry, novelties, clothing, flowers, sport- lllg 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 I uniforms), developing and printing of photographs and films, ground baggage checking senrices 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 (v;;ithout 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- les s Lessor from any and all demands, los se s, liabilitie s or judgments, to- gether ",;ith costs and ~xpenses 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 n1ade or suit in- stituted, which in any way, directly or indirectly, contingently or otherwise, affects or might affect, Lessee, and Lessee shall have the right to compromise or participate in the defense of the same to the extent of its own interests. -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 VIII - CANCELLATION BY LESSOR: In the event Lessee shall file a voluntary petition in bankruptcy or proceedings in bankruptcy shall be instituted against it and Lessee is thereafter adjudicated bankrupt, pursuant to such proceedings, or that the court take jurisdiction of Les see 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 term. ARTICLE IX - CANCELLATION BY LESSEE: Lessee, In addition to any right of cancellation or any other right herein given to it, rnay cancel this lease in its entirety and terminate all or any of its obligations hereunder -12- at any time by 30 days v,,;ritten 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 \v-ith the type of equip- ment \vhich Lessee happens to o\vn 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 Lessee 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. AR TICLE X - ASSIGNMENT AND SUBLETTING: Lessee shall not, at any time, unless provided for else\vhere in this lease, assign this lease or any part thereof, nor shall Lessee sublet the premis es 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 \vith which Lessee is affiliated, may merge, consolidate, or which 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 repai:r;ed \vith 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 o\vn cost and expense and the rent payable therefor hereunder, with re spect to Le s see'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 de struction, 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 the 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 so un- tenantable or unusable. -14- AR TICLE XIII - NOTICES: A bill or statement may be rendered or any notice or communication \vhich Lessor may desire to give Lessee shall be deemed sufficiently rendered or given if the same be in \vriting and sent by registered or certified mail, addressed to Lessee at P. O. Box 59-2215, Miami International Airport, Miami, Florida or at the addre s s Le s see 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, addressed 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 pas senger s 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 ternl of one year, at rentals to be mutually agreed upon at the time of such rene\val between Lessor and Lessee. IN WITNESS WHEREOF, the parties have caused these presents to be executed as of the /:;J.~ day of ~ ' A. D. 1 97.d.. Signed, Sealed and Delivered / in Our Presence: 7-, /~~f:'--, I.-Ld.L /./~'-Lr"c / , -k" './ \.'-- MONROE COUNTY, FLCRIDA '7l1auk r/ ~"tW As to the Lessor Br (:fo;t/~~~( Mayor of onroe County and Chairman of the Board of County Commis sioners (SEAL) Attest: '..---') ," ,/ cJ~'" " "" -'" " ,,;; ( ?j d/fL ?VC . ',-- -'-cter of~he Circuit Court of Monroe County, Florida and ex officio Clerk of the Board of County Commissioners of Monroe County, Florida JMW\~~ ~ t~-k ~ A A T AIRLINES, INC. d/b/a AIR SUNSHINE B (SEAL) As to the Le s see ~