Example Lease - Corporate Hangar

10 HANGAR LEASE AGREEMENT Between Johnston County Airport Authority And ________________________ 4834 - 4917 - 5539 , v 1PageSTATE OF NORTH CAROLINA COUNTY OF JOHNSTON LEASE AGREEMENT This Lease this “ Lease ” is entered into this ___ day of ________ , ______ , by and between the Johnston County Airport Authority the “ Authority ” , and _________ “ Lessee ” for the leasing of certain property at Johnston Regional Airport the “ Airport ” upon the following terms and conditions WITNESSETH WHEREAS , the Lessor owns and operates Johnston Regional Airport the “ Airport ” ; and WHEREAS , the Lessor desires to lease Lessee a hangar to use for aircraft storage ; NOW THEREFORE , for and in consideration of the mutual premises and covenants herein contained and in further consideration of the payment of rent hereinafter stipulated , and of the terms and conditions herein set forth , Lessor and Lessee agree as follows SECTION 1 LEASED PROPERTY A Leased Premises The Lessor hereby leases to Lessee a hangar the “ Hangar ” , containing approximately ________ square feet , designated as Corporate Hangar ___ on the attached Exhibit A The Hangar shall hereinafter be referred to as the “ Leased Premises ” B Title to Leased Premises Fee simple title to the Leased Premises shall be and remain in Lessor throughout the term of this Agreement SECTION 2 USE OF AIRPORT A Use by Lessee Lessee shall use the Leased Premises for aviation purposes , which shall include a hangar with offices , customary facilities for use by pilots , restrooms , apron , auto parking , and all other directly related ancillary aviation uses The Leased Premises shall be used solely and exclusively as the base for some or all of Lessee’s aircraft , and all aircraft stored in the Leased Premises shall be considered to be based at the Airport 4834 - 4917 - 5539 , v 1PageB Ingress and Egress Lessor hereby grants Lessee the right of ingress to and egress from the Leased Premises over taxiways , ramps , airport roadways , including the use of common - use roadways , such right being expressly subject to applicable laws and such rules and regulations as may be reasonably established by the Airport Director of the Airport with respect to such use C Public Airport Facilities Lessor hereby grants Lessee the right , in common with others , to use existing and future facilities on the Airport that provide for the landing , taking off and taxiing of aircraft including navigational aids , hazard designation and warning devices , lighting and clear zone areas , subject to applicable fees , if any , as set from time to time by the Lessor D Common Facilities Lessor hereby grants Lessee the right , in common with others , to use the public portions of the Airport and appurtenances thereto Lessee shall conduct its operations in a manner so as not to interfere with the reasonable use by others of common facilities SECTION 3 RESTRICTIONS ON USE OF LEASED PREMISES A Commercial Activities Lessee does not have the right to contract with , solicit for , or provide to the public any commercial service Commercial aeronautical activities shall not be conducted from the Leased Premises B Fuel Lessee may fuel only its own aircraft , using its own employees and equipment , at such locations on the Airport as determined by Lessor , and Lessee shall not under any circumstances provide fuel to aircraft that are not either owned by it or leased to it on an exclusive basis C Control of Lighting Lessee agrees to control all future lighting on the Leased Premises to prevent illumination from being a hazard to pilots landing on , or taking off from , or taxiing on the Airport The determination of hazard shall rest solely upon the judgment of the Airport Director SECTION 4 TERM OF LEASE A Term The term of this Agreement shall be for a period of three 3 years commencing on ___________ and terminating on _____________ the “ Term ” , unless sooner terminated as provided herein Lessee shall have until 30 days prior to the end of the initial term and any renewal term to give notice to the lessor of the Lessee’s intent to renew 4834 - 4917 - 5539 , v 1PageB Holding Over If Lessee remains in possession of the Leased Premises after expiration of the Term hereof with Lessors acquiescence and without any express agreement of parties , Lessee shall be a tenant at will at one hundred and fifty percent 150 of the rental rate in effect at the end of such Term Lessee shall be bound by the terms and conditions of this Agreement as far as applicable , and there shall be no renewal of this Agreement by operation of law C Termination by Lessee The Lessee may cancel this Agreement at any time if the Airport ceases to be used for Airport purposes In addition , Lessee may terminate this Agreement on not less than ninety 90 days prior written notice to Lessor D Relocation of Premises If at any time during the term of this Lease the Lessor determines that the Leased Premises , or any portion thereof , is required to permit development of planned improvements to the Airport , upon written notice to Lessee by Lessor , Lessor shall have the right to relocate Lessee to another location on the Airport which , in the judgment of the Lessor , is an appropriate and suitable location for Lessee’s use and operations Such notice shall inform Lessee of the proposed new location and specify the date upon which the proposed relocation is to become effective , which date shall not be earlier than 6 months from the date of such notice In the event Lessor determines that there is not a suitable replacement location available then Lessor shall have the right to terminate this Lease upon three 3 months written notice to Lessee SECTION 5 LEASE PAYMENTS A Rent Lessee agrees to pay Lessor rent in the amount set forth in the Lessor’s schedule of rates and charges Rent shall be paid in equal monthly installments B Rent Payment Date Rent is payable in advance on a monthly basis and shall be paid on the first day of each month beginning on the first full month after the Commencement Date Rent shall be made payable to Johnston Airport Authority and delivered to the Airport Directors office at 3149 Swift Road , Smithfield , North Carolina , 27577 , by check or the parties may agree to have the Rent paid electronically or via other acceptable means Nothing herein shall prohibit Lessee from prepaying Rent for example , on a quarterly rather than monthly basis C Late Payments Lessee agrees to pay a penalty charge to Lessor in an amount equal to five percent 5 of each monthly payment not received by Lessor within ten 10 days of the date by which such payment is due 4834 - 4917 - 5539 , v 1PagePage pageNumber5D Taxes and Fees Lessor shall pay or cause to be paid , prior to delinquency , all taxes , fees and assessments , including possessory interest taxes , on the Leased Premises and to the extent levied on the Leasehold Improvements and any other improvements Lessee shall pay , or cause to be paid , prior to delinquency , all taxes , fees and assessments on any personal property situated in , on or about the Leased Premises , or in , on or about any buildings or improvements thereon The failure to pay any tax , license , fee or assessment , the validity of which shall be contested in good faith and with reasonable promptness , shall not be interpreted as a violation of this Section until such contest shall have been resolved in the taxing authority’s favor or abandoned or the time for objection or appeal has expired E Collection Interest accrues on all amounts due from and after the payment due date at the rate of 15 per month If the Airport retains the services of an attorney to collect any amounts due pursuant to this Agreement , and the Lessor is the prevailing party , then the Lessee shall be responsible for costs of collection including , but not limited to , the payment of all reasonable attorney fees SECTION 6 ALTERATIONS OR FURTHER IMPROVEMENTS A Plans and Specifications Lessee may make interior , non - structural alterations to the Leasehold Improvements without the consent of the Lessor but must notify the Lessor of such improvements prior to the start of construction Lessee shall not make any structural or exterior alterations or additions , including landscaping , without the prior written approval by the Airport Director for such work , which approval shall not be unreasonably withheld or delayed 1 If any structural or exterior improvement or alteration that requires architectural or engineered plans is approved and permitted , Lessee shall , at least thirty 30 days prior to the beginning of any construction or work , sign and deliver to the Airport Director two 2 complete sets of plans and specifications for all alterations and improvements All required permits shall be obtained prior to work starting and evidence thereof delivered to the Airport Director 2 If any structural or exterior improvement or alteration that requires architectural or engineered plans is undertaken by Lessee two 2 complete certified sets of as - built plans and specifications for all buildings and improvements on the Leased Premises shall be deposited with the Airport Director within thirty 30 days of completion B Bonds Unless otherwise waived , prior to the commencement of any construction work upon the Leased Premises by Lessee , a corporate surety bond , satisfactory to Lessor , with Lessees contractor or contractors as principal , in the sum equal to not less than 100 of the amount of the contract for the completion of such work guaranteeing the payments of wages for services engaged and of bills contracted 4834 - 4917 - 5539 , v 1PagePage pageNumber6for materials supplied and equipment used in the performance of such work , and protecting Lessor from any liability including attorneys fees , and loss for damage arising therefrom SECTION 7 UTILITIES A Payment For Utilities It is understood and agreed that the Rent does not include payment for utilities , except for water fees Lessee shall throughout the Term of this Agreement pay all utility bills which may accrue in the use of the Leased Premises , including but not limited to installation of meters , propane usage , utility connections , etc , except utility bills for water and sewer service B Waiver of Damage Unless caused by the gross negligence or willful misconduct of Lessor or its contractors , agents or employees , Lessee hereby waives and releases Lessor from any and all claims for damage arising or resulting from failures or interruptions of utility services including but not limited to electricity , gas , water , plumbing , sewage , telephone , communications , heat , ventilation , or for the failure or interruption of any public or passenger conveniences for facilities SECTION 8 MAINTENANCE AND REFUSE A Maintenance of Leased Premises Lessor shall , throughout the Term of this Agreement , at its own cost , and without any expense to Lessee , keep and maintain the Leased Premises , including building and improvements of every kind which may be a part thereof , and all appurtenances thereto , including sidewalks adjacent thereto , in good , sanitary and safe order , condition and repair B Removal and Disposal of Refuse Lessee shall arrange for removal and disposal of trash , refuse , garbage and other debris from the Leased Premises at Lessees own expense in accordance with applicable laws and ordinances SECTION 9 INDEMNIFICATION AND INSURANCE A General Indemnification and Hold Harmless Lessee shall indemnify , defend and hold harmless , on demand , Lessor , its elected or appointed officials , agents , boards , commissions , employees and representatives , for , from and against any and all liabilities , suits , obligations , fines , damages , penalties , claims , costs , charges and expenses , including but not limited to reasonable attorneys fees , of any character or nature arising out of or resulting from any act or occurrence of Lessee , its employees , agents , representatives , or invitees , in or upon the Leased Premises or any part thereof , or otherwise arising from Lessee’s operations on or about the Airport under and during the Term of this Agreement In any case in which Lessee provides a defense to Lessor pursuant to this indemnity , the defense will be provided by attorneys acceptable to Lessor Lessees obligations under this Section shall survive any 4834 - 4917 - 5539 , v 1PagePage pageNumber7expiration or earlier termination of this Agreement until the expiration of all applicable statutes of limitations B Environmental Compliance and Indemnification Lessee agrees to the terms and conditions contained in Compliance with Environmental Laws attached as Exhibit B hereto , including the indemnification provisions C Liability Insurance Lessee shall maintain in force during the Term of this Agreement comprehensive general public liability and property damage insurance , including products liability completed operations and personal injury liability insurance , in the minimum amount of 1,000,00000 with respect to each person , and in the minimum sum of 1,000,00000 with respect to each accident or occurrence , and in the minimum sum of 1,000,00000 for injury or damage to property This insurance shall include coverage for contractual liability assumed under the indemnity provisions of this Agreement Lessor shall be named as an additional insured under such policy or policies of insurance Lessee shall maintain aircraft liability insurance covering all aircraft operated by and for Lessee at limits acceptable to Lessor but not less than 1,000,00000 for each occurrence D Fire Insurance Lessor shall obtain and provide during the Term of this Agreement , fire and extended coverage insurance covering the Leasehold Improvements Lessee shall obtain and pay the premiums for fire insurance on Lessee’s property located on the Property Lessor shall be named as an additional insured under such policy or policies of insurance E Worker’s Compensation and Employer’s Liability Insurance Lessee shall maintain worker’s compensation and employer’s liability insurance in the amounts and form as may be required by the laws of the State of North Carolina F Certificates of Coverage Lessee shall furnish to the Airport Director within thirty 30 days after execution of this Agreement a certificate or certificates evidencing such insurance coverage as is required pursuant to this Agreement from companies doing business in North Carolina and acceptable to Lessor covering 1 The required coverage and policy limits 2 The location and the operations to which the insurance applies 3 The expiration date of policies 4 Certificate to contain Lessees contractual insurance coverage 4834 - 4917 - 5539 , v 1PagePage pageNumber85 The name and address of party to whom the certificates should be issued ATTN Airport Director Johnston Regional Airport 3149 Swift Creek Road Smithfield , North Carolina 27577 6 If such coverage is canceled , reduced or materially changed , Lessee shall , within fifteen 15 days after such cancellation , reduction or material change of coverage , file with said Airport Director a certificate showing that the required insurance has been reinstated or provided through another insurance company or companies 7 Prior to ten 10 days before the expiration of such certificate , Lessee shall deliver to the Airport Director a certificate renewing or extending the terms for a period of at least one 1 year or a certificate acceptable to Lessor evidencing the required insurance coverage G Blanket Insurance Nothing in this Section shall prevent the taking out of policies of blanket insurance , which may cover real and or personal property and improvements in addition to the Leasehold Improvements ; provided , however , that in all other respects each such policy shall comply with the other provisions of this Section 9 SECTION 10 DAMAGE , DESTRUCTION , OR CONDEMNATION OF LEASED PREMISES A Damage of Leased Premises 1 Repair and Reconstruction Unless this Agreement is terminated as provided in Section 10 A 2 , then after any damage or destruction to the Leasehold Improvements on the Leased Premises , Lessor may i repair and restore the Leasehold Improvements to substantially the same condition as existed immediately prior to the casualty , or ii construct new Leasehold Improvements 2 Termination If the Leasehold Improvements are damaged by fire or other casualty , and the amount of the damage is greater than fifty percent 50 of the replacement cost thereof , then Lessor may terminate this Agreement by delivery of written notice of termination to Lessee within ninety 90 days after the casualty Upon such termination , Lessee shall surrender the Leased Premises to Lessor , and neither party shall have any further obligations or liabilities under this Agreement All 4834 - 4917 - 5539 , v 1PagePage pageNumber9insurance proceeds shall be payable to Lessor , and Lessee shall have no right or claim with respect to those proceeds B Condemnation 1 Total Condemnation In the event of condemnation , or any taking by eminent domain , by any governmental entity , that renders the Leased Premises unusable for the storage of aircraft and or use of the Airport Common Areas this Agreement shall terminate on the date of action taken by such governmental entity The proceeds of any award for the taking shall be payable solely to Lessor and Lessee shall have no right to share in any such proceeds 2 Partial Taking In the event of the condemnation , or any taking by eminent domain , of a portion of the Leased Premises , if the remainder can be used for aircraft storage and use of the Airport Common Areas , as agreed by Lessor and Lessee , rental payments shall abate according to the ratio of square footage so taken Any condemnation award received for a partial taking shall be payable solely to the Lessor and Lessee shall have no right to share in any such proceeds If the remaining property cannot be used for aircraft storage , it shall be treated as a total condemnation as set forth in Section 10 B 1 , 3 Temporary Taking Should any portion of the Leasehold Improvements be condemned for a stated period , Lessor shall have no interest in such award , and it shall go to Lessee , and the Rent shall not abate SECTION 11 RIGHT OF ENTRY ENCUMBRANCES A Inspection Lessor or its duly authorized representatives may enter upon the Leased Property and the Leasehold Improvements at any and all reasonable times upon reasonable advance notice during the term of this Agreement for the purpose of determining whether or not Lessee is complying with the terms and conditions hereof or for any other purpose incidental to the rights of Lessor Lessor shall not disturb any aircraft during any such inspection , and shall notify Lessee if an aircraft is disturbed B Encumbrances The Leased Premises shall be accepted by Lessee subject to any and all then existing easements or other encumbrances , including the rights of the State of North Carolina and the United States , and the rights of others to use the common areas of the Airport , including the terminal , taxiways and runways Lessor shall have the right to install , lay , construct , maintain , repair and operate such sanitary sewers , drains , storm water sewers , pipelines , manholes , connections , water , oil or gas pipelines , communications facilities , navigational aids , and any other equipment or facilities related to the operation of the Airport , and any other appliances and appurtenances necessary or convenient in connection therewith , over , in , upon , through , across and along the Leased Premises , or any part thereof , and to enter 4834 - 4917 - 5539 , v 1Page0thereon upon reasonable advance notice except that no notice shall be required in the event of an emergency at reasonable times for any and all such purposes ; provided , however , that no right of the Lessor provided for in this Section 11 shall be so exercised as to interfere unreasonably with the Lessee’s operations , and no underground utilities shall be installed underneath any vertical improvements on the Leased Premises Lessor shall , at its sole cost and expense , promptly repair and restore to original condition any damage to the Leased Premises including , without limitation , landscaping resulting from Lessor’s right of entry SECTION 12 EVENTS OF DEFAULT BY LESSEE The happening of any one or more of the following listed events of default and the expiration of any notice and cure periods herein provided which events , upon such expiration , are hereinafter referred to singularly as “ event of default ” and plurally as “ events of default ” shall constitute a breach of this Agreement on the part of Lessee a The filing by , on behalf of , or against Lessee of any petition or pleading to declare Lessee a bankrupt , voluntary or involuntary , under any Bankruptcy Act or law , which is not dismissed within sixty 60 days after the date of filing b The commencement in any court or tribunal of any proceeding , voluntary or involuntary , to declare Lessee insolvent or unable to pay its debts , which is not dismissed within sixty 60 days after the date of filing c The failure of Lessee to pay any rent or any other amount payable under this Agreement within ten 10 days after written notice by the Lessor that the same is due and payable d The appointment by any court or under any law of a receiver , trustee or other custodian of the property , assets or business of Lessee , who is not dismissed within sixty 60 days after the date of appointment e Except as expressly permitted in this Agreement , the assignment by Lessee of all or any part of its property or assets for the benefit of creditors f The failure of Lessee to use the Leased Premises over a continuous period in excess of sixty 60 days for reasons that are not otherwise excused under this Agreement Any personal property belonging to Lessee and left upon the Leased Premises and any or all of Lessees improvements and facilities thereon after abandonment shall , at the option of the Lessor , be deemed to be abandoned by Lessee and shall , at the sole option of the Lessor , become the property of Lessor g Except as specifically provided in Section 12 a - f , the failure in any material respect of Lessee to perform , fully and promptly , any act required of it under 4834 - 4917 - 5539 , v 1Page1the terms of this Agreement , or otherwise to comply with any term or provision hereof within thirty 30 days after written notice by the Lessor to the Lessee to do so , unless such default cannot be cured within such period and Lessee has in good faith commenced and is prosecuting the cure thereof , in which case the Lessee shall have a reasonable extension of such period in order to cure such default SECTION 13 RESULTS OF LESSEES DEFAULT TERMINATION BY LESSOR SHOULD LESSEE BE IN DEFAULT HEREUNDER BEYOND ANY APPLICABLE CURE PERIOD , LESSOR , IF IT SHALL SO ELECT , MAY 1 TERMINATE THE TERM OF THIS AGREEMENT , OR 2 RE - ENTER THE LEASED PREMISES WITH OR WITHOUT PROCESS OF LAW AND EXPEL OR REMOVE LESSEE OR ANY OTHER PARTY OCCUPYING THE LEASED PREMISES , THEREBY TERMINATING LESSEE’S RIGHT TO POSSESSION WITHOUT TERMINATING THE TERM OF THIS AGREEMENT UPON SUCH TERMINATION OF THE TERM HEREOF , LESSEE SHALL PROMPTLY SURRENDER POSSESSION OF THE LEASED PREMISES IF LESSOR SHALL ELECT TO TERMINATE LESSEE’S RIGHT TO POSSESSION ONLY , WITHOUT TERMINATING THE TERM OF THIS AGREEMENT , LESSOR MAY I RE - ENTER THE LEASED PREMISES AND REMOVE LESSEE , WITHOUT RELEASING LESSEE FROM ITS OBLIGATIONS HEREUNDER , II REFURBISH , REDECORATE , ALTER , REPAIR OR OTHERWISE PREPARE THE LEASED PREMISES FOR LEASE TO OTHERS , AND III ATTEMPT TO RELET THE LEASED PREMISES , AND IF THE AMOUNT OF RENTAL COLLECTED BY LESSOR UPON SUCH RELETTING IS NOT SUFFICIENT TO PAY MONTHLY THE FULL AMOUNT OF THE RENTAL HEREIN RESERVED PLUS CHARGES AND EXPENSES PAYABLE BY LESSEE OVER THE REMAINDER OF THE TERM , TOGETHER WITH ALL COSTS OF REPOSSESSION AND RELETTING INCLUDING LEASING COMMISSIONS , LESSEE SHALL PAY TO LESSOR THE AMOUNT OF EACH MONTHLY DEFICIENCY UPON DEMAND ; AND IF THE RENT SO COLLECTED FROM SUCH RELETTING IS MORE THAN SUFFICIENT TO PAY THE FULL AMOUNT OF RENT AND OTHER LESSEE OBLIGATIONS RESERVED HEREUNDER , TOGETHER WITH THE AFOREMENTIONED COSTS , LESSOR SHALL BE ENTITLED TO THE SURPLUS LANDLORD AGREES TO USE COMMERCIALLY REASONABLE EFFORTS TO MITIGATE ITS DAMAGES IN THE EVENT OF A DEFAULT BY TENANT SECTION 14 NON - WAIVER OF DEFAULTS No waiver by either party of default by the other party of any terms , covenants , or conditions hereof to be performed by such other party shall be construed to be a waiver of any subsequent default No term , covenant , or condition hereof can be waived except by written consent of the non - defaulting party The acceptance of Rent or the performance of all or any part of this Agreement by the Lessor for or during any period or periods after default of any of the terms , covenants and conditions herein contained to be performed , kept and observed by the Lessee , shall not be deemed a waiver of any right on the part of the Lessor to declare a default or cancel this Agreement for a subsequent breach thereof 4834 - 4917 - 5539 , v 1Page2SECTION 15 LESSEES ENCUMBRANCES A Liens Lessee shall keep the Leased Premises and all improvements thereon free from any and all liens including those arising out of any work performed , materials furnished or obligation incurred by Lessee , or its employees , agents , or contractors Notwithstanding the foregoing , if any Lien is filed against the Leased Premises for work claimed to have been done for , or materials claimed to have been furnished to the Lessee , Lessee shall either cause the same to be discharged of record within thirty 30 days after the date of filing , or , if Lessee , in Lessee’s discretion and in good faith , determines that the lien should be contested , shall furnish such security as may be necessary or required to prevent the pendency of such contest , and Lessee shall indemnify and hold Lessor harmless from and against any and all costs , expenses , claims or losses resulting there from by reason thereof If Lessee shall fail to discharge said Lien , or , in the event the lien cannot be discharged within the time period , if Lessee shall fail to undertake the steps necessary to secure the discharge of such lien , then , Lessor may , but shall not be obligated to discharge the same , either by paying the amount claimed to be due or by procuring the discharge of such lien , and Lessee shall , within ten 10 days after written demand by Lessor , reimburse Lessor for all of its costs and expenses arising in connection with the lien , including reasonable attorney fees SECTION 16 TERMINATION A Termination at end of Term Lessee shall have the right to remove during or at the end of the Term hereof any and all fixtures which Lessee may have placed or installed upon the Leased Premises Lessee shall , upon termination of this Agreement in any manner , quit and deliver up the Leased Premises to Lessor peaceably , quietly , and in as good order and condition as the same now are or may be hereafter improved by Lessee or Lessor , with the exception of reasonable use and normal wear SECTION 17 LESSORS LIEN If Lessee is in default under any covenant , term or provision of the Agreement after any applicable cure period , or has abandoned the Leased Premises , in addition to any other rights pursuant to this Agreement , Lessee hereby grants to Lessor a lien upon any improvements , personal property and trade fixtures of Lessee upon the Leased Premises , which lien Lessor may satisfy by selling said improvements , personal property or trade fixtures at public or private sale without notice to Lessee and from the proceeds of said sale satisfy first any costs of storage , removal and sale , and any other debts due from Lessee to Lessor , and secondly , satisfy the total amount of unpaid rent due hereunder and hold any balance for the account of Lessee This lien shall inure to Lessors benefit whenever Lessee is in default hereunder and when 4834 - 4917 - 5539 , v 1Page3Lessor exercises any right , which Lessor may have at law , in equity or under this Agreement SECTION 18 QUIET ENJOYMENT Lessee , in exchange for and upon payment of the Rent and all other payments and charges to be paid by Lessee under the terms of this Agreement and upon observing and keeping the agreements and each of the covenants of this Agreement on the part of Lessee to be observed and kept , shall lawfully and quietly hold , occupy and enjoy the Leased Premises during the term of this Agreement Lessee shall not commit or suffer to be committed in or upon the Leased Premises any other act or thing which may unreasonably disturb the quiet enjoyment of any other tenant at the Airport or adjoining property to the Airport SECTION 19 SALE , ASSIGNMENT , TRANSFER AND SUBLETTING Lessee shall not sell , assign , or transfer this Agreement without the prior written consent of the Lessor , which consent may be withheld for any reason Lessee shall not sublease the Leased Premises or any portion thereof , nor shall Lessee sublet any privileges granted with respect to the operation of said Leased Premises or any portion thereof No assignment or sublease shall serve to release the Lessee from any of its obligations , duties or responsibilities under this Agreement unless the Lessor agrees thereto in writing No assignee for the benefit of Lessees creditors , and no trustee , receiver , or referee in bankruptcy shall acquire any rights under this Agreement by virtue of this Section SECTION 20 PUBLIC USE AND FEDERAL GRANTS A Grant Agreements The parties acknowledge that the Leased Premises and the Airport are subject to the terms of those certain sponsors assurances made to guarantee the public use of the Airport as incidental to grant agreements between Lessor and the United States of America as amended This Agreement shall be subordinate to the provisions of any existing or future sponsor assurances B Federal Grants and Public Use The parties acknowledge that the Airport will be operated as a public airport , subject to the provisions of the Federal Aviation Act so that nothing contained in this Agreement shall be construed to grant or otherwise authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958 Lessor reserves the right to develop or improve , as it sees fit , the Airport , its landing areas and taxiways , regardless of the desires or views of Lessee and without interference or hindrance therefrom This Agreement shall be subordinate to the provisions of any existing or future agreement between the Lessor and the United States of America , including instrumentalities thereof , relative to the 4834 - 4917 - 5539 , v 1Page4operation and maintenance of the Airport , the execution of which has been or may be required as a condition precedent to the expenditure of federal funds in developing the Airport C Modifications to Comply with State or Federal Laws Should the United States or any instrumentality thereof having authority to do so , or the State of North Carolina , require that any provision of this Agreement that is in violation of any federal or state law or regulation or grant assurance or any provision of an existing grant agreement between Lessor and the United States or any instrumentality thereof , or the State of North Carolina , be changed or deleted or should any such change or deletion be required in order for the Airport to continue to retain its eligibility to receive federal funds or to participate in federal or state programs or to avoid forfeiture of previous financial assistance , Lessor may give Lessee notice that it elects that any such change or deletion be made Lessee shall then elect either to consent to any such change or deletion or to terminate this Agreement Such election shall be made in writing and delivered to Lessor within thirty 30 days after the date the Lessor gave notice to the Lessee of Lessor’s election that any such change or deletion be made D Airport Rules and Regulations Lessee shall abide by the Airport Rules and Regulations , Minimum Standards , Authority Ordinances , applicable Federal and State statutes , and regulations of the Federal Aviation Administration “ FAA ” , including but not limited to those in Exhibit C attached , as they may from time to time be amended , including environmental laws regarding the handling , discharge , release and dumping of any hazardous substance , and such rules , regulations and ordinances are incorporated by reference into this Lease and made a part hereof E FAA Rules and Regulations Lessee shall at all times conduct its business in a lawful manner and at all times conform to the rules and regulations of the Federal Aviation Administration in so far as applicable to Lessee’s possession of the Leased Premises and in the conduct of its business , and shall comply with the applicable Federal Aviation Administration Required Contract Provisions , attached hereto as Exhibit C F Americans with Disability Act Lessee shall fully comply with all applicable provisions of the Americans With Disabilities Act of 1990 , PL 101 - 336 , 104 Stat 327 ADA , expressly including , but not limited to , all requirements otherwise imposed on the Lessor regarding the Leased Premises and invitees of Lessee , insofar as the Leased Premises is considered a place of public accommodation and invitees or employees are covered by the services , programs and activity previsions of Title II of ADA G Non - Discrimination Lessee for itself , its successors and assigns , agrees that in its operation and use of the Leased Premises no person shall be excluded from participation in , denied the benefit of , or be otherwise subjected to 4834 - 4917 - 5539 , v 1Page5discrimination in the use of the Airport’s facilities because of his or her race , color , sex or national origin and that Lessee shall not , on the grounds of race , color or national origin , discriminate or permit discrimination against any person or group of persons in any manner prohibited by 49 CFR Part 21 of the Department of Transportation Regulations A breach of this provision shall constitute an event of default under the terms of this Agreement SECTION 21 SIGNS Lessee is granted the right to install reasonably compatible identification signs on and about the Leased Premises , subject to Lessors prior written approval , not to be unreasonably withheld , of their sizes , designs , texts and locations , and such signs shall comply with all applicable governmental regulations , including FAA regulations SECTION 22 RELATIONSHIP BETWEEN THE PARTIES Lessor and Lessee are neither joint venturers with nor partners or associates of each other the with respect to any matter provided for in this Agreement Nothing herein contained shall be construed to create any such relationship between the parties or to subject Lessor or Lessee to any obligation of the other party whatsoever SECTION 23 TIME OF THE ESSENCE Time is expressly to be of the essence in this Agreement SECTION 24 GOVERNING LAW AND VENUE This Agreement , its execution , interpretation and performance , shall be governed by and construed in accordance with the laws of the State of North Carolina Any controversy or claim arising out of or in any way related to this Agreement or the relationship established by it , or the alleged breach thereof , whether at common law , in contract , in tort , or under statute , shall be governed by the laws of the State of North Carolina Venue for any case or controversy in any way arising from or related to this Agreement shall be solely in the State courts of Johnston County , North Carolina , except for the enforcement of judgments issued from those courts , and cases can neither be filed nor removed to the federal courts SECTION 25 NOTICES All notices requests , or demands herein provided to be given or made , or which made be given or made by either party to the other , shall be given and made only in writing and shall be deemed to have been duly given i on the date delivered when sent via nationally recognized overnight courier eg Federal Express , properly addressed and postage prepaid ; or ii upon delivery , if delivery is rejected when delivery was 4834 - 4917 - 5539 , v 1Page6attempted of properly addressed certified mail , postage prepaid with return receipt requested The proper address to which notices , requests , or demands may be given or made by either party shall be the address set forth below or to such other address or to such other person as any party may designate Such address may be changed by written notice given to the other party in accordance with this Section A LESSOR Attn Airport Director Johnston Regional Airport 3149 Swift Creek Road Smithfield , North Carolina 27577 Copy Airport Attorney B LESSEE Attn ___________________________ ___________________________ ___________________________ ___________________________ SECTION 26 SUCCESSORS AND ASSIGNS Subject to the terms and conditions of Section 19 hereof , the provisions of this Agreement shall bind and inure to the benefit of the successors and assigns of the parties hereto SECTION 27 OBSTRUCTION LIGHTING Lessee agrees to install and maintain , including the furnishing of electrical power , obstruction lights on all structures within the Leased Premises required under all applicable FAA criteria Lessor represents and warrants that the lights currently installed are in compliance with current FAA criteria , and that Lessor shall inform Lessee of any changes in FAA criteria SECTION 28 AMENDMENT OF LEASE The terms of this Agreement may not be changed , modified , waived , discharged or terminated orally , but only be an instrument or instruments in writing signed by both Lessor and Lessee 4834 - 4917 - 5539 , v 1Page7SECTION 29 AUTHORIZATION TO EXECUTE AGREEMENT Lessor and Lessee certify that each of the individuals executing this Agreement are duly authorized to do so on behalf of each such party SECTION 30 FORCE MAJEURE Neither party shall be deemed in default with respect to any of the terms , covenants and conditions of this Agreement , if the party fails to perform and its failure is due in whole or in part to any strike , lockout , labor trouble whether legal or illegal , civil disorder , inability to procure materials , failure of power , restrictive governmental laws and regulations , riots , insurrections , war , fuel shortages , accidents , casualties , Acts of God , acts caused directly or indirectly by the other party or the other party’s agents , employees or invitees or any other cause beyond the commercially reasonable control of the nonperforming party ; provided , however , that nothing in this Section shall excuse Lessee’s failure to pay Rent due to Lessor pursuant to this Agreement SECTION 31 REGISTRATION Permittee shall provide to the Airport Director a copy of FAA Registration and or proof of ownership , suitable to the Airport Director , for the aircraft to be stored pursuant to this Agreement If Permittee has a temporary registration or if there is any change of aircraft ownership , Permittee shall notify the Airport Director within ten 10 days and shall have ninety 90 days in which to acquire a permanent registration or another aircraft before this Lease is cancelled If the registration is not in the name of Permittee , then Permittee must provide the Airport Director with a copy of a valid exclusive lease or other documentation establishing an adequate possessory interest in the aircraft 4834 - 4917 - 5539 , v 1Page8IN WITNESS WHEREOF , the parties have executed this agreement this ___ day of _____________________ , 20___ JOHNSTON COUNTY AIRPORT AUTHORITY LESSOR By _____________________________________ , Authority Chairman ACKNOWLEDGMENT OF JOHNSTON COUNTY AIRPORT AUTHORITY JOHNSTON COUNTY , NORTH CAROLINA I , _____________________________ , a Notary Public , certify that ____________________________ personally appeared before me and acknowledged that he is the Chairman of the Johnston County Airport Authority and that by authority duly given and as the official act of the Johnston County Airport Authority he signed and sealed this Lease Agreement Witness my hand and official seal , this _____________________day of _____________________20_________ Seal ____________________________ Notary Public My commission expires ________________________ 4834 - 4917 - 5539 , v 1Page9__________________________________________ LESSEE By _______________________________________ ACKNOWLEDGMENT OF ___________________________ LESSEE _________________________COUNTY , NORTH CAROLINA I , ________________________ , a Notary Public , certify that ______________________________ personally appeared before me this day and acknowledged that he is the _____________________ of____________________________ , that by authority duly given and as the official act of this incorporation , its Manager signed and sealed this Lease Agreement Witness my hand and official seal , this______ day of _________________20__________ Seal _________________________________ Notary Public My commission expires __________________________Page0Exhibit A SITE PLAN { 00453009 DOCX V J136024288 ; } 2 4834 - 4917 - 5539 , v 1Page1EXHIBIT B COMPLIANCE WITH ENVIRONMENTAL LAWS Lessee shall , at Lessees own expense , comply with all present and hereinafter enacted Environmental Laws , and any amendments thereto , affecting Lessees operation on the Leased Premises A Definitions 1 Environmental Laws shall mean those laws promulgated for the protection of human health or the environment , including but not limited to the following as the same are amended from time to time the Comprehensive Environmental Response , Compensation , and Liability Act , 42 USC Section 9601 et seq ; the Resource Conservation and Recovery Act , 42 USC Section 6901 et seq ; the Safe Drinking Water Act , 42 USC Section 300f et seq ; the Clean Water Act , 33 USC Section 1251 et seq ; the Clean Air Act , 42 USC Section 7401 et seq ; the Occupational Safety and Health Act of 1970 , as amended , 84 Stat 1590 , 29 USC Sections 651 - 678 , and the regulations promulgated thereunder and any other laws , regulations and ordinance whether enacted by the local , state or federal government now in effect or hereinafter enacted that deal with the regulation or protection of human health and the environment , including the ambient air , ground water , surface water , and land use , including substrata soils 2 The term Regulated Substances includes { 00453009 DOCX V J136024288 ; } 3 4834 - 4917 - 5539 , v 1Page2a Those substances identified or listed as a hazardous substance , pollutant , hazardous material , toxic substance , solid waste , regulated substance , or petroleum in the Comprehensive Environmental Response , Compensation and Liability Act , 42 USC Section 9601 et seq ; the Hazardous Materials Transportation Act , 49 USC Section 1801 et seq ; the Resource Conservation and Recovery Act , 42 USC Section 6901 et seq ; and in the regulations promulgated thereto ; and Underground Storage Tanks , USC Sections 6991 to 6991i Those substances listed in the United States Department of Transportation Table 49 CFR Section 172101 and amendments thereto or by the Environmental Protection Agency as hazardous substances 40 CFR Part 302 and amendments thereto ; and , b All substances , materials and wastes that are , or that become , regulated under , or that are classified as hazardous or toxic under any environmental law during the term of this Agreement 3 The term release shall mean any releasing , spilling , leaking , pumping , pouring , emitting , emptying , discharging , injecting , escaping , leaching , disposing , or dumping B Compliance 1 Lessee shall not cause or permit any Regulated Substance to be used , generated , manufactured , produced , stored , brought upon , or released on , or under the premises , or transported to or from the Leased Premises , by Lessee , its agents , employees , contractors , invitees for a third party in a manner that would constitute { 00453009 DOCX V J136024288 ; } 4 4834 - 4917 - 5539 , v 1Page3or result in a violation of any Environmental Law or that would give rise to liability of Lessor under an Environmental Law Lessee shall indemnify , defend and hold harmless , on demand , the Johnston County Airport Authority the “ Authority ” , its successors and assigns , its elected and appointed officials , employees , agents , boards , commissions , representatives , and attorneys , for , from and against any and all liabilities , obligations , damages , charges and expenses , penalties , suits , fines , claims , legal and investigation fees for costs , arising from or related to any claim or action for injury , liability , breach of warranty or representation , or damage to persons , the environment or premises and any and all claims or actions brought by any person , entity or governmental body , alleging or arising in connection with contamination of , or adverse effects on , human health or the environment pursuant to any Environmental Law , the common law , or other statute , ordinance , rule , regulation , judgment or order of any governmental agency or judicial entity , which are incurred or assessed as a result , whether in part or in whole , of any use of the Leased Premises by Lessee during the term of this Agreement or any previous lease for uses of the premises by Lessee or its owners or affiliated entities , or its agents , employees , invitees , contractors , visitors or licensees Lessees obligations and liabilities under this Article shall continue so long as the Authority bears any liability or responsibility under the Environmental Laws for any use of the Leased Premises during the term of this Agreement or any previous use of the Leased Premises by Lessee This indemnification of the Authority by Lessee includes , without limitation , costs incurred in connection with any investigation of site conditions or { 00453009 DOCX V J136024288 ; } 5 4834 - 4917 - 5539 , v 1Page4any cleanup , remedial actions , removal or restoration work required or conducted by any federal , state or local governmental agency or political subdivision because of Regulated Substances located on the Leased Premises or present in the soil or round water on , under or about the Leased Premises 2 Without limiting the forgoing , if the presence of any Regulated Substance on , under or about the Leased Premises caused or permitted by Lessee or by any person or entity under Lessees control results in any contamination of the demised or any adjacent premises , Lessee shall promptly take all actions at its sole cost and expense as are necessary to mitigate any immediate threat to human health or the environment Lessee shall then undertake any further action necessary to return the Leased Premises to the condition existing prior to the introduction of any regulated substance to the Leased Premises ; provided that the Authoritys approval of such actions without regard to the potential legal liability of any other person , however , any remedial activities by Lessee shall not be construed as to impair Lessees rights , if any , to seek contribution or indemnity from another person 3 Lessee shall , at Lessees own cost and expense , make all tests , reports , studies and provide all information to any appropriate governmental agency as may be required pursuant to the Environmental Laws pertaining to Lessees use of the Leased Premises This obligation includes but is not limited to any requirements for a site characterization , site assessment and or a cleanup plan that may be necessary due to any actual or potential spills or discharges of regulated substances on , or under the premises , during the term of this Agreement At no cost or expense to the { 00453009 DOCX V J136024288 ; } 6 4834 - 4917 - 5539 , v 1Page5Authority , Lessee shall promptly provide all information requested by the Authority pertaining to the applicability of the Environmental Laws to the Leased Premises , to respond to any governmental investigation , or to respond to any claim of liability by third parties , which is related to environmental contamination In addition , the Authority shall have the right to access , within two 2 days of Lessee’s receipt of written request , and copy any and all records , test results , studies and or other documentation , other than trade secrets , regarding environmental conditions relating to the use , storage , or treatment of regulated substances by the Lessee on , under or about the Leased Premises 4 Lessee shall immediately notify the Airport Director of any of the following a any correspondence or communication from any governmental agency regarding the application of Environmental Laws to the premises or Lessees use of the Leased Premises , b any change in Lessees use of the premises that will change or has the potential to change Lessees or the Authoritys obligations or liabilities under Environmental Laws , and c any assertion of a claim or other occurrence for which Lessee may incur an obligation under this Exhibit 5 Lessee shall insert the provisions of this Article in any agreement or contract by which it grants a right or privilege to any person , firm or corporation under this Agreement 6 Lessee shall at its own expense obtain and comply with any permits or approvals that are required or may become required as a result of any use of the Leased Premises by the Lessee , its agents , employees , contractors , invitees and assigns { 00453009 DOCX V J136024288 ; } 7 4834 - 4917 - 5539 , v 1Page67 Lessee shall obtain and maintain compliance with any applicable financial responsibility requirements of federal and or state law regarding the ownership or operation of any device used for the treatment or storage of a Regulated Substance and present evidence thereof to the Authority , as may be applicable 8 Lessee shall take reasonable precautions to prevent other persons not acting under Lessees authority from conducting any activity that would result in the release of a Regulated Substance on the Leased Premises Lessee shall also exercise due care with respect to any Regulated Substance that may come to be located on the Leased Premises as a result of the actions of third parties who are not under Lessees authority C Lessor’s Insurance Lessor agrees that during the term of this Agreement it shall keep and maintain insurance covering any environmental contamination that may be caused , in whole or in part , by Lessor , in such amounts as are determined to be reasonable in the sole discretion of the Lessor and the Airport Director { 00453009 DOCX V J136024288 ; } 8 4834 - 4917 - 5539 , v 1Page7EXHIBIT C REQUIRED FAA CONTRACT PROVISIONS GENERAL CIVIL RIGHTS PROVISIONS The lessee and its transferee agree to comply with pertinent statutes , Executive Orders and such rules as are promulgated to ensure that no person shall , on the grounds of race , creed , color , national origin , sex , age , or disability be excluded from participating in any activity conducted with or benefiting from Federal assistance This provision obligates the lessee or its transferee for the period during which Federal assistance is extended to the airport through the Airport Improvement Program In cases where Federal assistance provides , or is in the form of personal property ; real property or interest therein ; structures or improvements thereon , this provision obligates the party or any transferee for the longer of the following periods a The period during which the property is used by the airport sponsor or any transferee for a purpose for which Federal assistance is extended , or for another purpose involving the provision of similar services or benefits ; or b The period during which the airport sponsor or any transferee retains ownership or possession of the property CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR IMPROVED UNDER THE ACTIVITY , FACILITY , OR PROGRAM A The lessee , for himself herself , his her heirs , personal representatives , successors in interest , and assigns , as a part of the consideration hereof , does hereby covenant and agree as a covenant running with the land that 1 In the event facilities are constructed , maintained , or otherwise operated on the property described in this lease for a purpose for which a Federal Aviation Administration activity , facility , or program is extended or for another purpose involving the provision of similar services or benefits , the lessee will maintain and operate such facilities and services in compliance with all requirements imposed by the Nondiscrimination Acts and Regulations listed in the Pertinent List of Nondiscrimination Authorities as may be amended such that no person on the grounds of race , color , or national origin , will be { 00453009 DOCX V J136024288 ; } 9 4834 - 4917 - 5539 , v 1Page8excluded from participation in , denied the benefits of , or be otherwise subjected to discrimination in the use of said facilities B With respect to this lease , in the event of breach of any of the above Nondiscrimination covenants , the Johnston County Airport Authority will have the right to terminate the lease and to enter , re - enter , and repossess said lands and facilities thereon , and hold the same as if the lease had never been made or issued TITLE VI LIST OF PERTINENT NONDISCRIMINATION ACTS AND AUTHORITIES During the performance of this Lease , Lessee , for itself , its assignees , and successors in interest hereinafter referred to as the “ Lessee ” agrees to comply with the following non - discrimination statutes and authorities ; including but not limited to Title VI of the Civil Rights Act of 1964 42 USC § 2000d et seq , 78 stat 252 , prohibits discrimination on the basis of race , color , national origin ; 49 CFR part 21 Non - discrimination In Federally - Assisted Programs of The Department of Transportation — Effectuation of Title VI of The Civil Rights Act of 1964 ; The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 , 42 USC § 4601 , prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal - aid programs and projects ; Section 504 of the Rehabilitation Act of 1973 , 29 USC § 794 et seq , as amended , prohibits discrimination on the basis of disability ; and 49 CFR part 27 ; The Age Discrimination Act of 1975 , as amended , 42 USC § 6101 et seq , prohibits discrimination on the basis of age ; Airport and Airway Improvement Act of 1982 , 49 USC § 471 , Section 47123 , as amended , prohibits discrimination based on race , creed , color , national origin , or sex ; The Civil Rights Restoration Act of 1987 , PL 100 - 209 , Broadened the scope , coverage and applicability of Title VI of the Civil Rights Act of 1964 , The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973 , by expanding the definition of the terms “ programs or activities ” to include all of the programs or activities of the Federal - aid recipients , sub - recipients and contractors , whether such programs or activities are Federally funded or not ; Titles II and III of the Americans with Disabilities Act of 1990 , which prohibit discrimination on the basis of disability in the operation of public entities , public and private transportation systems , places of public accommodation , and certain testing entities 42 USC § § 12131 – 12189 as implemented by Department of Transportation regulations at 49 CFR parts 37 and 38 ; { 00453009 DOCX V J136024288 ; } 10 4834 - 4917 - 5539 , v 1Page9The Federal Aviation Administration’s Non - discrimination statute 49 USC § 47123 prohibits discrimination on the basis of race , color , national origin , and sex ; Executive Order 12898 , Federal Actions to Address Environmental Justice in Minority Populations and Low - Income Populations , which ensures non - discrimination against minority populations by discouraging programs , policies , and activities with disproportionately high and adverse human health or environmental effects on minority and low - income populations ; Executive Order 13166 , Improving Access to Services for Persons with Limited English Proficiency , and resulting agency guidance , national origin discrimination includes discrimination because of limited English proficiency LEP To ensure compliance with Title VI , you must take reasonable steps to ensure that LEP persons have meaningful access to your programs 70 Fed Reg at 74087 to 74100 ; Title IX of the Education Amendments of 1972 , as amended , which prohibits you from discriminating because of sex in education programs or activities 20 USC 1681 et seq { 00453009 DOCX V J136024288 ; } 11 4834 - 4917 - 5539 , v 1Page