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HomeMy WebLinkAbout2023 Lease AgreementDocuSign Envelope ID: 61301981-CC72-4DDF-BC8A-73CE59810B26 AERONAUTICAL HANGAR LEASE AGREEMENT BETWEEN THE CITY OF SEBASTL4N, LANDLORD AND PROFLIGHT MANAGEMENT, LLC, TENANT DocuSign Envelope ID: 61301981-CC72-4DDF-BC8A-73CE69810B26 THIS LEASE made and entered into this September 27, 20239 by and between the CITY OF SEBASTIAN, a municipal corporation existing under the laws of the State of Florida, (hereinafter referred to as the "Landlord"), and PROFLIGHT MANAGEMENT, LLC, (hereinafter referred to as the "Tenant"). The Landlord and the Tenant are sometimes collectively referred to herein as the "parties/party." WITNESSETH: WHEREAS, the Landlord is the owner of certain property located in the City of Sebastian, Indian River County, Florida; and WHEREAS, certain property is being used for the operation of the Sebastian Municipal Airport (hereinafter referred to as the "Airport"); and WHEREAS, the Landlord has agreed to lease such property to the Tenant subject to certain terns and conditions consistent with or in support of the current aviation use of such property or as the Federal Aviation Administration (FAA), might allow; and WHEREAS, the Tenant desires to lease the said property from the Landlord, and to that end, in consideration of the premises, Tenant agrees to the covenants, terms and conditions to be performed as set forth hereinafter; and NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, and receipt and sufficiency for consideration of which are hereby acknowledged, the parties have agreed as follows: 1. RECITALS. The stated recitals are hereby incorporated by reference in this Lease Agreement. 2. LEASED PREMISES. Subject to the terms and conditions set forth hereinafter, and in accordance with the Principal Guiding Documents for Sebastian Municipal Airport, fully incorporated herein by reference, the Landlord hereby leases to the Tenant and the Tenant hereby rents from the Landlord that portion of the real property, by Tenant, which is described more particularly on Schedule "A" affixed hereto and fully incorporated herein by reference (hereafter referred to as the "Leased Premises"). In the event that any portion of the Leased Premises is needed for actual improvements to the Airport, or any portion thereof rendered unusable to Tenant, tenant shall be released from this lease and the rental payments adjusted accordingly. 3. TERM OF LEASE. The term of this Lease shall be for a period of twenty (20) years commencing October 1, 2023, and will end on the twentieth (20th) anniversary of such date. The Tenant shall have the option to extend the lease for a period of five (5) years, subject to re -appraisal of the rent amount by the City of Sebastian and with agreement by the City Council. Notice of intent to exercise said option by Tenant must be received by Landlord no later than six (6) months prior to the expiration of the underlying lease. 4. RENT. The parties agree that the rent, payable by the Tenant, during the term of this Lease shall be paid monthly as follows: DocuSign Envelope ID: 61301981-CC72-4DOF-BC8A-73CE59810B26 (a) Pavment. The Airport is providing approximately 16,100 square feet of Hangar and Office Space located at 402 Airport drive East, Sebastian Municipal Airport. Base rent shall be at the rate of $7.00 per square foot per year or One hundred twelve thousand seven hundred dollars ($112,700.00) per year, ($9,392.00/month) plus applicable taxes, for the Tenant to operate an aeronautical business relating to flight training, aircraft maintenance and storage. It is understood that the agreed lease rate is contingent on approval by the Florida Department of Transportation (FDOT). On October 1, 2024, the rent amount will increase 3%. Another 3% increase adjustment shall be undertaken on October 1, 2025 and every year thereafter until the expiration date of the lease. (b) Security Dewsit. A Security Deposit equal to one month's rent shall apply to the hangar property. The Security Deposit may be forfeited, at the City's option, in the event of a breach of this Agreement that causes the City loss of rent or other expenses relating to the Tenant failing to p..�f„ .r.i its responsibilities with respect to this Agreement. (c) Time of the Essence. The Tenant agrees promptly to perfonn, comply with and abide by this Lease, and agrees that timely payment is of the very nature and essence hereof. In the event that any rental payment due hereunder shall not be paid within five days of when due, Tenant shall pay Landlord a late payment fee of 5% of the amount of such late Rental Payment. This charge shall be considered additional rent and not interest. (d) Default in Rent. If any of said sums of money herein required to be paid by (lie Tenant to the Landlord shall remain unpaid ten (10) days after written or verbal demand by Landlord, then the Landlord shall have the options and privileges as follows: (1) Total Acceleration. To accelerate the maturity of the rent installments for the balance of the term. This option shall be exercised by an instrument in writing signed by the Landlord, or its agents, and transmitted to the Tenant notifying them of the intention of the Landlord to declare all un-matured rent installments presently due and payable. (2) Partial Acceleration. In lieu of the option in sub -paragraph (1) above, the Landlord may, in like manner, declare as presently due and payable the unpaid rent installments for such a period of years as may be fixed in the Landlord's said notice to the Tenant. The exercise of this option shall not be construed as a splitting of a cause of action, nor shall it alter or affect the obligations of the Tenant to pay rent under the terms of this Lease for the period unaffected by said notice. (3) Other Remedies. In addition to the options granted above, the Landlord may exercise any and all other options available to it hereunder or under law, which options may be exercised concurrently or separately with the exercise of the above options. However, failure by the tenant to pay rent in a timely inanner as required by the terms of this Agreement as a DocuSign Envelope ID: 61301981-CC72-4DDF-BC8A-73CE59810B26 result of conditions beyond its control, such as, but not limited to, war, strikes, fires, floods, acts of God, governmental restrictions, power failures, or damage or destruction of any network facilities or, sewers, shall not be deemed a breach of this Agreement. (e) Default in Provisions. If the Tenant shall default in the performance of a n y other term of this Lease (except the payment of rent), the Landlord, or its agent or employee, shall send to the Tenant a written notice of default, specifying the nature of the default, and the Tenant shall, within thirty (30) days after the date of said notice, cure and remedy said default, whereupon this Lease shall continue as before. If the Tenant shall fail to cure and remedy such default within said time, the Landlord shall have the right to declare, by written notice to the Tenant, that the Lease is in default, and to use all remedies available to the Landlord hereunder or under law, including, but not limited to, those remedies, procedures and rights specified in the other paragraphs of this Lease. (f) In addition to the rental amount, the Tenant shall pay Florida sales tax and any other tax or fee obligations associated with the leasehold and allowed for by law. 5. CONSTRUCTION AND IMPROVEMENTS TO THE PREMISES/COST SHARING AGREEMENT The Landlord acknowledges that the Tenant conditionally may make improvements to the buildings and property for the primary purpose of operating its aeronautical business. However, Landlord shall approve the design, features and color(s) of any building improvements. (a) The Tenant shall have the right to use the leased premises for any lawful purpose described in Section 5 below, and shall have the right to construct and improve upon the leased premises, provided any such construction and improvements do not in any way curtail the use of the airport facilities in their usual operations and are in full compliance of local building codes including applicable building permits. Further any and all such construction and improvements must be pre -approved, in writing, by the City Manager or his designee prior to commencement of any construction. The Tenant covenants and agrees that all such construction and improvements shall be in accordance with the local and state codes, regulations and requirements as well as in accordance with all requirements of the Federal Aviation Administration (FAA) and the Florida Department of Transportation (FDOT). (b) The Tenant shall indemnify, defend and hold the Landlord harmless from any claims, losses, damages or liens arising out of the construction and improvements of the leased premises. (c) ALL CONSTRUCTION, IMPROVEMENTS AND FIXTURES OF EVERY KIND NOW OR HEREAFTER BUILT, ERECTED OR PLACED ON THE LEASED PREMISES SHALL, AT THE END OF THE TERM OR EARLIER TERMINATION OF THIS LEASE, FOR ANY REASON, BE AND BECOME THE PROPERTY OF THE LANDLORD and shall be left in good condition and repair, ordinary wear and damage by the elements excepted. In order to confirm sole ownership in the Landlord, the Tenant shall, at Landlord's request, execute any and all documents of transfer which Landlord deems necessary to perfect title to said DocuSign Envelope ID: 61301981-CC724DDF-BC8A-73CE59810B26 improvements, if any. The Tenant agrees that all construction and improvements shall, upon the termination of this Lease for any reason, be free and clear of all encumbrances, liens, and title defects of any kind. A fixture shall be defined as an article which was a chattel, but which, by being physically annexed or affixed to the realty by the Tenant and incapable of being removed without structural or functional damage to the realty, becomes a part and parcel of it. Non -fixtures personally owned by the Tenant at the expiration of the term or earlier termination of this Lease, for any reason, shall continue to be owned by Tenant and, at its option, may remove all such personal property, provided the Tenant is not then in default of any covenant or condition of this Lease; otherwise, all such property shall remain on the leased premises until the damages suffered by the Landlord from any such default have been ascertained and compensated. Any damage to the leased premises caused by the removal by Tenant of any such personal property shall be repaired by Tenant forthwith at Tenant's expense. (d) As a condition of this Agreement, the Parties have expressed their understanding and agreement to enter into a separate Shared Construction Cost Agreement which shall be executed concurrently with this Agreement in order to cover the conditions of construction of improvements and the costs associated therewith. 5. USE OF LEASED PREMISES. The Tenant agrees that no use of the leased premises will be conducted in such a manner as to constitute a nuisance or a hazard and that, in connection with the use of the leased premises, the Tenant will observe and comply with all applicable laws, ordinances, orders and regulations prescribed by lawful authorities having jurisdiction over the leased premises. Tenant will abide by the Principal Guiding Documents for Sebastian Municipal Airport. Tenant agrees that the leased premises shall be used by the Tenant for the purpose flight training, aircraft maintenance, inspections, storage, repairs and refurbishment. No other use may be conducted by the Tenant without the express written consent of the Landlord. Such consent may be withheld by the Landlord for any reason. Aircraft painting, other than painting small parts with aerosol paints, is strictly prohibited. Under no instances shall the hangar be used as a living quarters. The hanger shall only be used to store aircraft and essentials for regular maintenance of Tenant's and customer aircraft and related offices to conduct business operations. Camping on the property and the outside storage of campers, RVs, trailers and vehicles is prohibited. The inside and outside areas of the property shall be kept in a clean and uncluttered appearance. The Tenant will store any hazardous materials in accordance with all applicable laws. 6. Vehicle Onemdons and Guest Conduct Policies a. Vehicles may not be driven on airport taxiways, runways, or aircraft movement areas under penalty of fines and loss of airport access privileges. b. Tenant is responsible for security and the conduct of guests that are invited "inside the fence", aka airport security area. 7. REPAIRS AND ALTERATIONS. The Landlord shall not be obligated to maintain or repair the leased premises or any improvements located thereon or any part thereof during the lease term or any renewal thereof. The Tenant agrees, at its sole cost and expense, to maintain all of the leased premises. The Tenant shall keep the leased premises in a good state of maintenance and repair and keep the leased premises in a clean and orderly condition in accordance with local ordinances, including but not limited to, the Sebastian Land Development Code and all other community standards ordinances. It is an express condition of this Lease that the leased premises are kept in an attractive manner at all times. DocuSign Envelope ID: 61301981-CC72-4DDF-BC8A-73CE59810B26 Upon obtaining the prior written consent of the Landlord, which consent may be withheld for any reason, the Tenant, at its sole cost and expense, may construct or erect such additional improvements on the leased premises as it deems appropriate and may make such irovements alterations or major renovations to the existing improvements as it deems appropriate, provided, however, that such improvements, alterations or renovations shall not disturb the structural integrity of such existing improvements, and provided that the alterations or renovations shall comply with all applicable governmental regulations. The Tenant shall indemnify, defend and hold the Landlord harmless from any claims, losses, damages or liens arising out of or in any way connected with such improvement, alterations, additions or renovations. The Tenant agrees NOT to dispose of hazardous wastes in the dumpster(s). 8. BUSINESS LICENSES. Tenant business shall be registered with SUNBIZ and have a City of Sebastian Business License. 9. UTILITIES. Upon execution of the lease the Tenant must extend to the Premises, and install therein, at its own expense, any required utilities and shall be responsible for all costs of electricity, water/sewer, lights, heat, phone, internet, or any other utility or service consumed in connection with the leased premises. Utility charges shall be charged by the appropriate agency to Tenant by separate meter(s). The Landlord shall have no liability for the failure to procure, or the interruption of, any such services or utilities. 10. SIGNS. The Tenant shall have the right to erect and maintain "doorway" signage; as well as airside and street side signage provided, however, the Landlord must approve any such signs in writing prior to erection. The Landlord may impose any reasonable restrictions as, in the sole discretion of the Landlord, are deemed necessary and in accordance with City of Sebastian's Land Development Codes and Code of Ordinances. 11. TADS. The Tenant shall pay during the Lease term all ad valorem taxes (if applicable), assessments or any other governmental charge levied or assessed against the leased premises (including the Tenant's leasehold by the appropriate governmental authorities), together with all ad valorem taxes assessment or other governmental charge levied against any stock of merchandise, finniture, fiunishings, equipment and other property located in, or upon the leased premises. All shall be paid by the Tenant on a timely basis and receipts therefore shall be provided to the Landlord upon request. 12. LUBILITY INSURANCE. The Tenant shall provide and keep in force, at its own expense, during the term of this Lease, comprehensive public liability insurance coverage with respect to the leased premises and operations thereupon. The insurance coverage to be maintained by the Tenant shall contain limits of: (a) Bodily Injury and Property Damage - $1.000,000 Combined Single Limits. (b) Liability: $1,000,000 Bodily Injury and Property Damage Combined Single Limit. (c) Products and Completed Operations Liability (if applicable): $1,000,000 Combined Single Limit. (d) Insurance in the fill replacement value of all Personal Property, Equipment, and Trade Fixtures on the Leased Premises. (e) Ground and Hangar Keeper's Liability: minimum $100,000 for damage to any one DocuSign Envelope ID: 61301981-CC72-4DDF-BC8A-73CE59810B26 (1) aircraft and $500,000 per each occunvnce. (f) Automobile Liability Insurance: Tenant, its employees, Sub -Tenants, agents or contractors operating one or more motor vehicles on the City's premises in the performance of their work shall purchase and maintain Automobile Liability Insurance with policy limits of not less than $300,000 Combined Single Limit. In addition, Tenant, its employees, Sub - Tenants, agents or contractors having unescorted access to the AOA at the Sebastian Municipal Airport shall purchase and maintain Automobile Liability Insurance with policy limits of not less than $1,000,000 Combined Single Limit. (g) Builder" s Risk — during any of Tenants construction on a leased site, the Tenant, its employees, Sub -Tenants, agents or contractors shall fumish Builder's Risk Insurance insuring the contract price, with the City listed as the named insured. Any deductibles under the builder's risk policy shall be the responsibility of the Tenant, its employees, Sub -Tenants, agents or contractors. (h) Workers' Compensation Insurance: as required by Florida Statutes. (i) For Aircraft Fueling Operations (if applicable) — a Comprehensive Liability policy indicating that the coverage includes owner's fueling/defueling operations with fueling equipment owned and/or operated by the Tenant. The minimum shall be $1,000,000 Combined Single Limit for Bodily Injury and Property Damage. Tenant agrees that, should there be an expansion of the use or occupancy beyond the primary use set forth herein, landlord may alter the minimum amounts stated in the preceding sections during the term of this Lease by resolution of the City Council. Landlord will give written notice of any such change to tenant, and such changes will take effect immediately. Any policy or policies of insurance required pursuant to this Lease shall be issued by one or more insurance companies authorized to engage in business in the State of Florida. The Tenant shall supply the Landlord with a certificate of such insurance with evidence of the payment of the premium thereon. All policies described in this Paragraph shall contain a clause preventing cancellation of any coverage before thirty (30) days written notice to the Landlord and shall name the Landlord as an additional insured. Upon the request of the Landlord, the Tenant shall provide copies of said policies to the Landlord. If Lessor decides to add additional improvements the Lessee has no cost for such improvement. 13. PROPERTY. FIRE AND EXTENDED COVERAGE INSURANCE. The Tenant shall, at its sole cost and expense, procure and keep in effect such standard policies of personal business property casualty, fire and extended coverage insurance as it deems necessary and appropriate. Upon request, the Tenant shall provide to the Landlord a certificate of such insurance with evidence of the payment of the premium therefore. The Landlord shall have no obligation to insure any personal property used in connection with the leased premises. Any policy or policies of insurance required pursuant to this Lease shall be issued by one or more insurance companies authorized to engage in business in the State of Florida. All policies described in this Paragraph shall contain a clause preventing cancellation of any coverage before thirty (30) days written notice to the Landlord and shall name the Landlord as an additional insured. Upon the request of the Landlord, the Tenant shall provide copies of said policies to the Landlord. In the event that the Tenant's use and occupancy of the premises causes any increase in the premium for any property casualty or fire insurance maintained by Landlord on the Leased Premises or any portion thereof, DocuSign Envelope ID: 61301981-CC724DDF-BC8A-73CE59810B26 Tenant shall reimburse Landlord for the amount of said increase within thirty (30) days of notice of the same. 14. DAMAGE OR DESTRUCTION OF IMPROVEMENTS BY FIRE OR OTHER CASUALTY. In the event the leased premises are destroyed or damaged by fire or other casualty, the Landlord agrees that it shall cause said premises and/or other improvements (excluding personal property or improvements or fixtures) to be replaced or said damage to be repaired as rapidly as practicable. In the event 15. INDEMNIFICATION. The Tenant agrees hereby to defend, indemnify and save the Landlord harmless from any and all actions, demands, liabilities, claims, losses or litigation arising out of or connected with the Tenant's construction, improvement, occupancy or use of the leased premises and the construction, improvement, occupancy or use of the leased premises by tenant's agents, employees, guests and invitees, against all loss, damage, claims, and actions, and all expenses, including, but not limited to, attorney's fees and costs, incidental or such claims or actions, including but not limited to liability as a result of injury to or death of any person, based upon or arising out of damage to property or injuries to persons or other tortious acts caused or contributed to by the Tenant or anyone acting under its direction or control or by acts or omissions, negligence or otherwise, of Tenant or an agent of the Tenant or an employee of anyone of them, regardless of the negligence of the Landlord or its employees, be it active or passive, except where such loss, cost, damage, claim, expense, or liability arises from the sole gross negligence or willful misconduct of the Landlord. Upon request of the Landlord, Tenant shall, at no cost or expense to the Landlord, defend any suit asserting a claim for any loss, damage or liability specified above, and Tenant shall pay any cost and attorneys' fees that may be incurred by the Landlord in connection with any such claim or suit or in enforcing the indemnity granted above. Nothing in this agreement shall be construed as the Landlord waiving its sovereign immunity pursuant to §768.28, et seq., Florida Statutes, or any other sovereign or governmental immunity. This provision shall survive the termination or cancellation of the Lease. 16. ENVIRONMENTAL MATTERS. The Tenant hereby agrees to indemnify, defend and hold the Landlord harmless from and against any and all claims, lawsuits, losses, liabilities, damages, and expenses (including, without limitation, clean-up costs and reasonable attorney's fees) resulting directly, or indirectly, from out of, or by reason of, any hazardous or toxic materials, substances, pollutants, contaminants, petroleum products, hydrocarbons or wastes being located on the property and being caused by the Tenant, Sub -Tenants, agents, assigns, guests, invitees, or users of leased premises. The presence of said substance or materials on the leased premises shall raise the presumption that Tenant is the cause of such presence. This Paragraph shall survive the termination, or cancellation, of the Lease. 17. PREVENTION OF USE. If, after the effective date of this Lease, the Tenant is precluded or prevented from using the Premises for those primary purposes identified in Section 5 of this Lease, by reason of any zoning law, ordinance or regulation of Landlord or others having jurisdiction over the Premises and such prohibition shall continue for a period in excess of ninety (90) consecutive days, the Landlord may allow the Tenant to terminate this Lease by giving Landlord fifteen (15) days' notice in writing, in addition to any other remedies available to Tenant applicable by law. 18. GOVERNMENT SEIZURE. In the event the United States Government, or any DocuSign Envelope ID: 61301981-CC72-4DDF-BC8A-73CE59810B26 agency or subdivision thereof, at any time during the term of this Lease takes over the operation or restricts the use of the airfield and/or Airport which results in the Tenant being unable to operate under the terms of the Lease, then the Lease may be extended upon mutual agreement of the Tenant and the Landlord for an additional period equal to the time the Tenant has been deprived of the value of this Lease. If the duration of the seizure exceeds ninety (90) consecutive days, the Landlord, at the Landlord's sole discretion, may terminate this Lease. 19. DEFAULT BY TENANT. As used in this Lease, the term, "event of default", shall mean any of the following: (a) The failure of the Tenant to fulfill any duty or obligation imposed on the Tenant by the Lease; (b) The appointment of a receiver or the entry of an order declaring the Tenant bankrupt or the assignment by the Tenant for the benefit of creditors or the participation by the Tenant in any other insolvency proceeding; (c) The Tenant's failure to pay any consideration, to the Landlord, required by this Lease; (e) The taking of the leasehold interest of the Tenant hereunder pursuant to an execution on a judgment; (f) The Tenant's abandonment of any substantial portion of the leased premises. "Abandonment" shall be determined by the Landlord; (f) The Tenant or any guarantor of Tenant's obligations hereunder, filing a petition for bankruptcy or being adjudged bankrupt, insolvent, under any applicable federal or state bankruptcy or insolvency law, or admit that it cannot meet its financial obligations as they become due, or a receiver or trustee shall be appointed for all or substantially all of the assets of Tenant or any Tenant's obligations hereunder, (g) The Tenant or any guarantor of the Tenant's obligations hereunder shall make a transfer in fraud of creditors or shall make an assignment for the benefit of creditors; (h) The liquidation, termination, death or dissolution of the Tenant or all Guarantors of the Tenant's obligations hereunder; (i) The Tenant fails for more than one hundred twenty (120) consecutive days to continuously conduct and carry on in good faith the type of business for which the leased premises are leased; (j) The Tenant shall not do or permit to be done any act which results in a lien being filed against the leased premises or the property which is not released of record within thirty (30) days of the date it is initially recorded in the Public Records of Indian River County, Florida. Each party covenants and agrees that it has no power to incur any indebtedness giving a right to a lien of any kind or character upon the right, title and interest of the other party in and to the property covered by this Lease, and that no third person shall ever be entitled to any lien, directly or DocuSign Envelope ID: 61301981-CC72-4DDF-BC8A-73CE59810B26 indirectly, derived through or under the other party, or its agents or servants, or on account of any act of omission of said other party. All persons contracting with the Tenant or furnishing materials or labor to said Tenant, or to its agents or servants, as well as all persons whomsoever, shall be bound by this provision of this Lease. Should any such lien be filed, the Tenant shall discharge the same by payment or by filing a bond, or otherwise, as permitted by law. The Tenant shall not be deemed to be the agent of the Landlord so as to confer upon a laborer bestowing labor or supplies upon the leased premises a mechanic's lien upon the Landlord's property or Sebastian Municipal Airport under the provisions of the Florida Statutes, or any subsequent revisions thereof; (k) The Tenant shall be in default of any other term, provision or covenant of this Lease, other than those specified in subparts (a) through 6) above. Upon the happening of any "Event of Default', the Landlord may, at its option, terminate this Lease and expel the Tenant from the leased premise without prejudice to any other remedy provided: however, before the exercise of such option for failure to pay rent or failure to perform any condition imposed herein upon the Tenant, the Landlord shall give written notice of such event of default to the Tenant, which thereafter shall have thirty (30) days from the date notice is sent by the Landlord within which to remedy or correct such default, unless such default is the failure to pay rent, in which case the Tenant shall have ten (10) days from the date notice is sent by the Landlord within which to remedy such default by paying all rent due. 20. IDENTITY OF INTEREST. The execution of this Lease or the performance of any act pursuant to the provisions hereof shall not be deemed or construed to have the effect of creating, between the Landlord and the Tenant, the relationship of principal and agent, or of a partnership, or of a joint venture and the relationship between them shall be and remain only that of Landlord and Tenant. 21. NOTICES AND REPORTS. Any notice, report, statement, approval, consent, designation, demand or request to be given, and any option or election to be exercised by a party under the provisions of this Lease, shall be effective only when made in writing and delivered (or wailed by registered or certified mail with postage prepaid) to the other party at the address given below: Landlord: CITY OF SEBASTIAN Attn: City Manager 1225 Main Street Sebastian, FL 32958 Tenant: PROFLIGHT MANAGEMENT LLC 8515 De Havilland Court Vero Beach, FL 32968 provided, however, that either party may designate a different representative or address from time to time by giving to the other party notice in writing of the change. Rental payments to the Landlord shall be made by the Tenant at an address to be furnished to the Tenant. 22. RIGHT TO INSPECT. The Landlord may enter the leased premises upon reasonable notice in order to do the following: DocuSign Envelope ID: 61301981-CC72-4DDF-BC8A-73CE59810B26 (a) To inspect or protect the leased premises or any improvement to a property location thereon; (b) To determine whether the Tenant is complying with the applicable laws, orders or regulations of any lawful authority having jurisdiction over the leased premises or any business conducted therein; (c) To exhibit the leased premises to any prospective tenant during the final sixty (60) days of the lease term, or at any time after either party has notified the other that the Lease will be terminated for any reason. However, no authorized entry by the Landlord shall constitute an eviction of the Tenant or a deprivation of its rights or alter the obligation of the Landlord or create any right in the Landlord adverse to the interest of the Tenant hereunder. 23. REMOVAL OF TRADE FIXTURES, SIGNS AND PERSONAL PROPERTY. At the expiration of the Lease, the Tenant agrees to immediately surrender possession of the premises and all facilities thereon. Tenant shall have the right to remove all personal property owned by the Tenant provided any damages in removal are repaired by the Tenant at Tenant's sole cost. Any personal property not removed within thirty (30) days shall be presumed abandoned. The cost of removing any such abandoned property that the City deems unusable shall be indemnified to Landlord by Tenant. 24. HEIGHWHAZARD RESTRICTIONS. The Tenant expressly agrees for itself, its successors and assigns, to restrict the height of structures and other obstructions on the leased premises to such a height so as to comply with all Federal Aviation Regulations, State laws and local ordinances, rules and regulations now existing and hereinafter promulgated. The Tenant expressly agrees for itself, its successors and assigns, to prevent any use of the leased premises which would interfere with or adversely affect the operation or maintenance of the Airport or otherwise constitute an airport hazard. The Tenant covenants and acknowledges that the use of the leased premises as proposed by the Tenant does not interfere with or adversely affect the operation or maintenance of the Airport or otherwise constitute an Airport hazard. The Landlord reserves unto itself, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the leased premises, together with the right to cause in such airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation or flight in the airspace, and for use of said airspace for landing on, taking off from, or operating on the Airport. 25. NONDISCRIMINATION. The Tenant for itself, its personal representatives, successors in interest and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running with the land the following: (a) No person on the grounds of religion, gender, marital status, race, color, age, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subject to discrimination in the use of the Tenant's facilities; (b) That in the construction or improvements on, over or under the leased premises and the fiunishing of services thereon, no person on the grounds of religion, gender, marital status, race, color, age, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to DocuSign Envelope ID: 61301981-CC72-4DDF-BC8A-73CE59810B26 discrimination; (c) That the Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, and Nondiscrimination in Federally Assisted Programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964. (d) In the event of the breach of any of the above non- discrimination covenants, the Landlord shall promptly notify the Tenant, in writing, of such breach and the Tenant shall immediately commence curative action. Such action by the Tenant shall be diligently pursued to its conclusion, and if the Tenant shall then fail to commence or diligently pursue action to cure said breach, the Landlord shall then have the right to terminate this Lease and to re-enter and repossess said land and improvements thereon. 26. ENTIRE AGREEMENT. This Lease contains all of the understandings by and between the parties hereto relative to the leasing of the premises herein described, and all prior agreements relative thereto have been merged herein or are voided by this instrument, which may be amended, modified, altered, changed, revoked or rescinded in whole or in part only by an instrument in writing signed by each of theparties hereto except to the extent modified or extended by the contemplated Cost Sharing Agreement. 27. ASSIGNMENT AND SUBLETTING. The Tenant shall not assign this Lease or sublet the leased premises or any portion thereof, or otherwise transfer any right or interest hereunder without the prior written consent of the Landlord. If the Landlord consents, in writing, to the assignment, subletting or other transfer of any right or interest hereunder by the Tenant, such approval shall be limited to the particular instance specified in the written consent and the Tenant shall not be relieved of any duty, obligation or liability under the provisions of its Lease. 28. ASSUMPTION. Upon termination prior to expiration of the Lease or termination or expiration of this Lease Agreement, the approved Sub -Tenant has the option to assume the Lease or to enter into a new Lease upon the same terms and conditions, except that the term of such new Lease will be for the remainder of the original Lease term and, upon Original Tenant's exercise thereof, for any option terms. If Sub -Tenant exercises its option to assume the Lease, and provided that the Original Tenant does not later default on any of its obligations under the Lease, then the Original Tenant is permitted upon written notice to Lessor to assign its rights as lessee under the Lease to a duly authorized Sub -Tenant (or its affiliate) with consent of the Landlord. 29. BINDING r.rrjXT. The terms and provisions of this Lease shall be binding on the parties hereto and their respective heirs, successors, assigns and personal representatives, and the terms of any Addendum attached hereto are incorporated herein. 30. APPLICABLE VENUE. In the event of litigation arising out of this writing, venue shall be in Indian River County, Florida and the terms of this Lease shall be construed and enforced according to the laws of the State of Florida except to the extent provided by Federal law. THE PARTIES HEREBY WAIVE THE RIGHT OF TRIAL BY JURY OF ANY ISSUES ARISING UNDER THIS LEASE AGREEMENT OR THE COST DocuSign Envelope ID: 61301981-CC72-4DDF-BC8A-73CE59810B26 SHARING AGREEMENT. 31. ATTORNEYS FEES. In any action arising out of the enforcement of this writing, the prevailing party shall be entitled to an award of reasonable attorney fees and costs, both at trial and all appellate levels, based upon the prevailing rates of private attorneys in Indian River County, Florida. 32. RECORDING. In no event shall the Lease or a copy thereof be recorded in the Public Records of Indian River County, Florida. 33. MISCELLANEOUS. The Landlord shall have the option, without waiving or impairing any of its rights hereunder, to pay any sum or perform any act required of the Tenant, and the amount of any such payment and the value of any such performance, together with interest thereon, shall be secured by this Lease, and shall be promptly due and payable to the Landlord. (a) All delinquent payments to the Landlord shall bear interest at the rate of 18% per year from the date the payments are due to the date of payment. (b) In the event of the Tenant's breach of any of the provisions of this Lease, the Landlord shall thereupon have a lien upon all revenues, income, rents, earnings and profits from the leased premises as additional security to the Landlord for the Tenant's faithful performance of each of the terms and provisions hereof, and to secure payment of all sums owing to the Landlord hereunder. Such liens shall be superior in dignity to the rights of the Tenant and any of its creditors or assignees or any trustee or receiver appointed for the Tenant's property, or any other person claiming under the Tenant. (c) Upon the Landlord's termination of the Tenant's rights under this Lease by reason of the Tenant's default, all such revenues, income, rents, earnings and profits derived or accruing from the leased premises from the date of such termination by the Landlord shall constitute the property of the Landlord, and the same is hereby declared to be a trust fund for the exclusive benefit of the Landlord and shall not constitute any asset of the Tenant or any trustee or receiver appointed for the Tenant's property. The provisions of this paragraph shall be effective without the Landlord's re-entry upon the leased premises or repossession thereof, and without any judicial determination that the Tenant's interest under said lease has been terminated. (d) The Tenant acknowledges that the Landlord is required by law to operate under an Airport Master Plan and the Tenant covenants that he will use the leased premises consistent with the Airport Master Plan. DocuSign Envelope ID: 61301981-CC72-4DDF-SC8A-73CE59810B26 IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. C Y OF SEB TIAN Tian /[. ton City Manager A,TMST (SEAL//):,, J ette Williams, MMC ity Clerk Ap roved a/s�to�formand legality J -fer C�ockcro v ity Attorney I sher PROFLIGHT MANAGEMENT LLC