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EXHIBIT 10.19
TERMINAL BUILDING SPACE LEASE
THIS AGREEMENT is made and entered into as of the 10th day of February
1995, by and between the Horry County Department of Airports, an agency of the
County of Horry, organized under the laws of the state of South Carolina,
hereinafter called "Landlord", and AIR SOUTH, INC. a corporation, hereinafter
called "Permittee".
WITNESSETH:
WHEREAS, Landlord operates the airport known as the Myrtle Beach Jetport,
which is located in the County of Horry, State of South Carolina, which, as it
now exists or as it may be expanded in the future, is hereinafter called
"Airport", and
WHEREAS Permittee desires to use certain premises and facilities at the
Airport,
NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter contained, the parties hereto formally covenant, agree, and bind
themselves as follows:
ARTICLE I - PREMISES
Landlord hereby grants to Permittee the exclusive right to use a room, the total
area of which is approximately 140 square feet, which are located on the first
floor in the temporary holding facility on the south end of the Passenger
Terminal Building, said rooms being sometimes hereinafter referred to as the
"Premises".
ARTICLE II - USE OF PREMISES
Permittee may use the Premises for administrative offices in connection with the
Air South Charter services it is providing at the terminal building, and for no
other purposes.
ARTICLE III - TERM
The term of this Agreement shall be from February 10, 1995 to December 31 of
1995, and it shall continue on a month-to-month basis thereafter until
terminated by either party. Either party shall have the right to terminate this
Agreement and the use of the Premises thereunder, at any time and without cause,
by serving a written Notice of Termination upon the other party not less than
thirty days in advance of its effective date.
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ARTICLE IV - RENTAL
Permittee shall pay Landlord a use charge, initially computed at the rate of
$133.70 per month. Said charge shall be payable in advance, without demand,
setoff or deduction, no later than the tenth (10th) day of each month during the
term hereof.
Landlord shall have the right to adjust the use charge from time to time and at
any time by serving a Notice of Adjusted Charges on Permittee.
ARTICLE V - MAINTENANCE
Permittee shall keep the Premises in good, sanitary and neat order, condition
and repair. Landlord shall not be obligated to make any repairs, replacements or
renewals of any kind, nature or description whatsoever, to the Premises except
that repairs to drainage facilities and sewers shall be the responsibility of
Landlord only when damage to such facilities was caused by Landlord's own act
or omission or the act or omission of its contractors or invitees.
ARTICLE VI - UTILITIES
Landlord shall supply electricity, heat and air conditioning to the Premises to
the extent and capacity of the existing mains, lines, transformers and panels,
and without additional charge.
ARTICLE VII - INSURANCE
Permittee shall, at its sole cost, purchase and keep in force at all times
during the term hereof a policy or policies of insurance, issued by an insurance
company of generally recognized responsibility, insuring Permittee against all
liability for property damage and personal injury (including death) arising, or
alleged to arise, out of any activity or failure to act of Permittee on, about
or with respect to the Premises. Said policy or policies shall also contain a
contractual liability endorsement expressly covering the indemnification
provisions of this Agreement.
The combined, single limit of liability of the aforesaid policy or policies
shall be not less than one million United States dollars ($1,000,000).
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ARTICLE VIII - INDEMIFICATION
Permittee shall protect, defend, and hold Landlord completely harmless from and
against any and all liabilities, losses, suits, claims, judgements, fines, or
demands arising by reason of injury or death of any person or damage to any
property, (including but not limited to attorney fees, court costs, and expert
fees), of any nature whatsoever arising out of or incidental to this Agreement
or the use or occupancy of the Premises, or the acts or omissions of Lessee's
directors, officers, agents, employees, contractors, sub-contractors, or
licensees: however, the above indemnity shall not apply to any injury, death, or
damage caused by the sole negligence or willfull acts of Landlord, its agents,
servants or employees. Landlord shall give reasonable notice of any such claims
or actions. The provisions of this section shall survive the termination of this
Agreement.
ARTICLE IX
Article IX has been deliberately left blank in this Agreement.
ARTICLE X - REMEDIES UPON DEFAULT
After any Event of Default, Landlord may terminate this Agreement by giving
Permittee written notice of such action not less than twenty-four (24) hours
prior to its effect. Such termination shall be without forfeiture, waiver, or
release of any rights of Landlord to take whatever legal or equitable
proceedings Landlord may deem necessary or desirable to collect any fees or
other charges or to enforce any other obligation or covenant of Permittee under
this Agreement or to exercise any other statutory remedies available to
Landlord.
ARTICLE XI - NOTICES
Any request, demand, authorization, direction, notice, consent or waiver
provided or permitted to be made upon, given by, or furnished to, the Landlord
or Permittee shall be sufficient for every purpose hereunder if in writing and
mailed by certified or registered mail, postage prepaid and addressed as
follows:
A. TO LANDLORD AT:
Horry County Department of Airports
ATTN: Director of Airports
0000 Xxxxxxx Xxxx
Xxxxxx Xxxxx, Xxxxx Xxxxxxxx 00000
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B. TO PERMITTEE AT:
Air South, Inc.
XX Xxx 00000
Xxxxxxxx, XX 00000
Either party may change its address or addressee by mailing a notice meeting the
postal requirements of this Article, to the other party, at the other party's
then current address.
ARTICLE XII
Article XII has been deliberately left blank in this Agreement.
ARTICLE XII - EMPLOYEE PARKING
To the extent they currently exist or may exist in the future, Landlord will
make available to Permittee, for non-exclusive use by Permittee's employees
working at the Airport, automobile parking facilities. Landlord may, at any
time, institute a charge for employee parking based upon Landlord's actual costs
of providing, operating, and maintaining such facilities and any associated
transportation services.
ARTICLE XIV - ALTERATIONS TO PREMISES
Permittee shall make no alterations or additions to the Premises without the
prior written approval of Landlord. Nor shall Permittee erect or paint any sign
on the exterior of the Premises, or display any sign through an exterior window
of the Premises, without first obtaining the written approval of Landlord.
ARTICLE XV
Article XV has been deliberately left blank in this Agreement.
ARTICLE XVI - TAXES
All taxes or government-imposed fees in any way consequent upon this Agreement,
or upon any subsequent modification or extension of this Agreement, or upon any
interest created by this Agreement or a subsequent modification or extension of
this Agreement, regardless of how, by whom and when imposed, shall be borne
solely by Permittee. To the extent Landlord shall be required to pay any such
taxes or fees, Permittee shall promptly reimburse Landlord.
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Without limiting the generality of the foregoing paragraph, Permittee shall
absorb all sales taxes, if any, assessed or levied on account of any monies
payable by Permittee to Landlord hereunder.
ARTICLE XVII - NO LIENS
Permittee shall keep the Premises and all personal property therein or thereon
free and clear of liens of any kind and shall defend, indemnify and save
Landlord harmless against all costs expenses, loss, loss of use, and damages
resulting from the attempts to file liens against the Premises or the filing of
liens against any personal property therein by any architect, contractor,
subcontractor, laborer, supplier, vendor, or materialman hired by Permittee.
ARTICLE XVIII - RIGHT TO INSPECTION
Landlord shall have the right to enter upon and inspect the Premises during
normal business hours.
ARTICLE XIX - ASSIGNMENT AND SUBLETTING
Permittee shall not assign or transfer any interest in this Agreement, or any
part thereof, without the prior written consent of the Landlord.
ARTICLE XX - COMPLIANCE WITH LAWS AND REGULATIONS
Permittee shall observe and obey, and shall require its employees, suppliers and
business invitees to observe and obey, all present and future, duly-promulgated
laws, ordinances, enactments, orders, rules and regulations relating to use and
occupancy of the Premises and at the Airport.
Permittee agrees to comply conscientiously with the spirit as well as the
wording of all laws and regulations dealing with protection of the environment
and applicable to its operations at the Airport, and, in such regard, Permittee
agrees to prevent the escape of regulated gases under Permittee's control into
the atmosphere and the entry of oil, fuel, glycol, solvents, heavy metals or
other regulated materials under Permittee's control onto Airport property or
into the drainage system of Airport or the drainage system of the surrounding
communities, unless such gases and materials are first properly treated with
equipment installed with the written approval of Landlord for that purpose or
unless such gases and materials are otherwise well within limits prescribed by
applicable laws and regulations. Permittee agrees to indemnify fully and save
and hold Landlord harmless from any and all penalties, losses, liabilities and
costs, including attorneys fees, arising
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from Permittee's failure to comply with the requirements of this paragraph, and
will bear all costs, including remediation costs, related to prohibited entry of
such oil, fuel, glycol, solvent, heavy metal or other regulated materials onto
Airport property or into said drainage systems resulting from Permittee's
conduct.
ARTICLE XXI - SURRENDER OF POSSESSION
Permittee shall yield and deliver possession of the Premises to Landlord at the
termination of this Agreement "broom clean" and in good condition, except for
reasonable wear and tear. Permittee shall have the right at any time during the
term to remove those trade fixtures and equipment which were installed or
placed, at Permittee's expense, in the Premises, so long as no damage is
inflicted on the Permitted Premises. Permittee's right to remove its trade
fixtures and equipment is futher subject to any valid lien which Landlord may
have perfected thereon.
ARTICLE XXII - FORCE MAJEURE
Neither Landlord nor Permittee shall be deemed in violation of this Agreement if
either is prevented from performing any of its obligations hereunder by reasons
of strikes, boycotts, labor disputes, embargoes, shortages of materials, acts of
God, acts of the public enemy, acts of superior governmental authority, weather
conditions, floods, riots, rebellions, acts of sabotage, or other circumstances
over which the party has no control. However, this Article shall in no case be
construed to excuse Permittee from paying Landlord any monies due hereunder.
And, in any case where a party believes this Article applies, such party shall
promptly give the other party written notice of that Force Majeure preventing
performance.
ARTICLE XXIII - GOVERNING LAWS
This Agreement shall be governed by and construed in accordance with the laws of
the State of South Carolina.
ARTICLE XXIV - PRIOR AGREEMENTS SUPERSEDED
Any prior agreements between the parties with respect to the Premises, written
and oral, are superseded by this Agreement and hereby made a nullity. This
Agreement constitutes the entire agreement of the parties with respect to its
subject matter and it may not be modified, amended or extended except by a
subsequent instrument executed with the same formalities as this Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed these presents as of the
day and year first above written.
ATTEST: FOR LANDLORD:
HORRY COUNTY DEPARTMENT OF AIRPORTS
--------------------- -----------------------------------
COUNTY COUNCIL CHAIRMAN
-----------------------------------
DIRECTOR OF AIRPORTS
-----------------------------------
DATE
ATTEST: FOR PERMITTEE:
AIR SOUTH, INC.
/s/
--------------------- -----------------------------------
2/20/95
-----------------------------------
DATE
APPROVAL AS TO FORM:
---------------------
AIRPORT ATTORNEY
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MYRTLE BEACH JETPORT
NON-SIGNATORY AIRLINE USE PERMIT
THIS USE PERMIT ("AGREEMENT") is made and entered into this the 20th
day of February, 1995 by and between HORRY COUNTY, a corporate body existing
under the laws of the State of South Carolina ("COUNTY") and AIR SOUTH, INC., a
corporation organized and existing under the laws of the State of Illinois
("AIRLINE"),
WITNESSETH
WHEREAS County is the operator of the public-use airport known as the
Myrtle Beach Jetport ("JETPORT") situated in Myrtle Beach, South Carolina; and
WHEREAS, the County operates the Jetport to facilitate commercial
passenger and cargo aircraft operations and service to the Myrtle Beach, Horry
County and Georgetown County, South Carolina area; and
WHEREAS, Airline is engaged in the business of commercial air
transportation of persons, property, cargo, and mail ("AIR TRANSPORTATION"); and
WHEREAS, Airline wishes to commence or continue operating its Air
Transportation business at the Jetport and, in connection therewith to use the
aeronautical facilities and common-use terminal areas of the Jetport ("JETPORT
PREMISES"); and
WHEREAS County has entered long term use and lease agreements with
other airlines concerning the Jetport Premises which impose certain obligations
and liabilities on and confer certain benefits to these other airlines
("SIGNATORY AIRLINES") and has offered Signatory Airline status to Airline; and
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WHEREAS Airline does not wish to execute a signatory airline use and
lease agreement and become a Signatory Airline;
NOW, THEREFORE, in consideration of the premises and the mutual
promises hereinafter contained County and Airline agree as follows:
1. Jetport-Use. For so long as Airline shall have a space use and/or
ground handling agreement with another entity or entities, including County,
occupying terminal facilities at the Jetport under lease from or permit by the
County and/or providing ground handling services under authority of the County
("GROUND HANDLERS"), Airline shall have the right to operate its Air
Transportation business at the Jetport including the right to: land and take-off
its aircraft; park its aircraft and load and unload its passengers, baggage,
mail and air cargo at locations provided by its Ground Handlers; and do the
other things usual and necessary in the conduct and operation of an Air
Transportation business. Airline shall not conduct any business or commercial
operation from or on the Jetport that is not part of its Air Transportation
business.
2. Term. This Agreement shall be on a month-to-month basis commencing
on the date this Agreement is executed by both Airline and County. Either party
may terminate this Agreement by serving written notice upon the opposite party
at least fifteen (15) days in advance of the effective date of such termination
notice.
3. Use of Terminal Facilities.
(a) So long as Airline is not in default of any obligation hereunder,
Airline shall have the right, in common with other airlines operating at the
Jetport, to use the common-use facilities of the terminal building. Airline's
use of such common-use areas shall be limited to the enplaning and deplaning of
its air passengers and their baggage in connection with the
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operation of its Air Transportation business. Airline agrees that its use of the
common-use areas shall be subject to the rules and regulations established from
time-to-time by the Horry County Department of Airports, and to the reasonable
directives of the County's Director of Airports or his designee.
(b) Airline acknowledges that it shall have no exclusive, or
preferential leasehold interest in any aircraft parking positions, passenger
hold rooms or loading bridges at the Jetport but that it shall use the
facilities provided by the Ground Handlers, including ticket counter, gate
position and aircraft parking positions at the terminal building.
4. Rents, Fees and Charges. In consideration of its use of the
facilities of the Jetport and the rights granted hereunder, Lessee shall pay
the following rents, fees and charges:
(a) Terminal Common Area Charges. Airline shall pay no rentals directly
to the County for its use of the terminal facilities leased exclusively or
preferentially to its Ground Handlers. Each month during the term of this
Agreement, Airline shall pay directly to the County a charge for use of those
terminal facilities at the Jetport, such as the baggage claiming facilities,
that were used by Airline in common with the Signatory Airlines and other
airlines that month. Said charge shall be calculated in accordance with the then
effective non-signatory joint use formula and rental rates established by County
for such areas.
(b) Landing Fees. For its use of the runways, taxiways and appurtenant
facilities of the airfield, Airline shall pay a landing fee for each and every
aircraft landed by the Airline at the Jetport. The landing fee shall be
determined by multiplying the then current non-signatory Landing Fee Rate,
established by County from time to time, times each 1,000
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pounds of the total Certified Maximum Gross Landing Weight of each Aircraft
landed by Airline at the Jetport during the month; provided that the product of
such multiplication is greater in each case than the then effective minimum
landing fee payable for each landing at the Jetport. In every case where the
then effective minimum landing fee is greater, Airline shall pay the minimum
landing fee for said landing. "CERTIFIED MAXIMUM GROSS LANDING WEIGHT." means
the maximum gross landing weight certified by the ("FAA") for each aircraft type
operated by Airline at the Jetport.
(c) Security Fees. Each month during the term of this Agreement,
Airline shall pay County as a "SECURITY FEE" a portion of the County's cost of
complying with Federal Air Regulations ("FARs") 107 and 108 ("COUNTY'S FAR
SECURITY COSTS") at the Jetport. Airline's Security Fees shall be calculated by
applying each month to the County's FAR Security Cost the percentage that
Airline's revenue passengers enplaned at the Jetport bore to the total of all
revenue passengers enplaned at the Jetport during the month covered by the
County's FAR Security Costs.
5. Monthly Activity Report. Airline shall furnish to County on or
before the tenth (10th) day of each month, in a format approved by the Director
of Airports, a true report of Airline's operations at the Jetport during the
preceding month setting forth all data necessary to calculate the common area
fees, Landing Fees, and Security Fees due from Airline and/or its Ground
Handlers under this Agreement. This report shall include, but shall not
necessarily be limited to, Airline's total number of landings for the month by
type of aircraft, the Certified Maximum Gross Landing Weight for each of the
aircraft landed at the Jetport for said month, the total number of revenue and
non-revenue passengers enplaned and deplaned at the Jetport for such month, and
the amount of cargo, freight and mail loaded
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and unloaded at the Jetport for such month. Failure to timely submit any such
report shall be considered an event of default under this Agreement.
6. Payment of Fees and Charges. Following receipt of the monthly
activity report, County shall transmit to Airline a statement of the fees and
charges incurred by Airline during said month and the same shall be paid by
Airline within fifteen (15) days after the receipt of such statement by Airline.
The acceptance by County of any such payment made by Airline shall not be a
waiver of the total amounts due and shall not preclude County from questioning
the accuracy of Airline's report submitted to County.
7. Maintenance. Airline agrees that it will, at its sole cost, promptly
repair or replace any Jetport Premises and other premises of the Jetport damaged
through or by its operations, using materials and workmanship of original
quality. Further, Airline will, at its sole cost, immediately move any of its
aircraft or ground service vehicles when and as requested by the County. County
agrees to maintain and operate the Jetport Premises in such a manner as to keep
them suitable for Airline's use in its Air Transportation business, but nothing
herein contained shall be construed as increasing the liability of the County
over that imposed upon County by federal law or the laws of the State of South
Carolina.
8. Leased Premises. Airline is not granted any possessory interest
in any premises at the Jetport under this Agreement. Such premises as Airline
may occupy or use on an exclusive or preferential-use basis at the Jetport, if
any, will be demised by and in a separate writing.
9. Rules and Regulations. Airline shall comply with all rules and
regulations of County which are now in effect or may hereafter be enacted;
provided that Airline shall have first been given oral or written notice of such
rules and regulations.
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10. Indemnification. Airline agrees to protect, defend, indemnify, and
hold County, its commissioners, directors, agents, officers and employees
completely harmless from and against any and all liabilities, losses, suits,
claims, judgements, fines or demands arising by reason of injury or death of any
person or damage to any property (including but not limited to attorney fees,
court costs, and expert fees) of any nature whatsoever arising out of or
incidental to this Agreement or Airline's use of or occupancy of the Jetport
Premises or other premises of the Jetport, or the acts or omissions of Airline's
directors, officers, agents, employees, contractors, subcontractors, or
licensees. County shall give reasonable notice of any such claims or actions.
The provisions of this section shall survive the termination of this Agreement
with respect to claims that accrued prior to the termination of this Agreement.
11. Non-liability of County. County shall not be liable for any acts or
omissions of Airline, or its agents, servants, employees or independent
contractors, or for any conditions resulting from the operations or activities
of Airline's agents, servants, employees or independent contractors, either to
Airline or any other person; nor shall County be liable for any loss or damage
to any personal property or equipment of the Airline; excepting only such loss
or damage arising from the sole negligence or willful misconduct of County, its
Commissioners, employees or agents.
13. Insurance. Airline agrees to carry and keep in force a
policy or policies of public liability insurance, with an insurance company or
companies of recognized responsibility, covering the bodily injury and property
damage liabilities that Airline has agreed by this Agreement to hold the
County, its commissioners, directors, agents, officers, and employees harmless
against and to indemnify. Airline agrees to carry and keep in force
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such insurance with limits of liability for death, personal injury and property
damage in an aggregate sum equal to not less than fifty million dollars
($50,000,000).
A certificate or certificates evidencing such insurance coverage shall
be filed with the County prior to the date Airline commences service to the
Jetport and said certificate or certificates shall provide that such insurance
coverage will not be canceled, reduced or materially changed without at least
ten (10) days prior written notice to the County. At least thirty (30) days
prior to the expiration of any such policy, a certificate showing that such
insurance coverage has been renewed or extended shall be filed with the County.
If such coverage is canceled, reduced or materially changed, Airline shall,
within ten (10) days after receipt of written notice, file with the County a
certificate or certificates showing that the required insurance has been
reinstated or provided through another insurance company or companies.
13. Delinquent Fees. There shall be added to all sums due to County and
unpaid an interest charge of one and one-half percent (1 1/2%) of the principal
sum for each full calendar month of delinquency or eighteen percent (18%) per
annum, computed as simple interest. The payment of any such interest shall not
cure or excuse any default by Airline under the Agreement.
14. Notice. Whenever any notice is required by this Agreement to be
made, given or transmitted to the parties hereto such Notice shall be deemed to
have been given if enclosed in an envelope with sufficient postage attached, and
sent by certified mail, and deposited in the United States mail addressed to:
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(a) As to County:
Horry County Department of Airports
0000 Xxxxxxx Xxxx
Xxxxxx Xxxxx XX 00000
ATTN: Director of Airports
(000) 000-0000
(b) As to Airline:
Air South, Inc.
P. 0. Xxx 00000
Xxxxxxxx, XX 00000
Attn: President
or at such other place as either party shall give the other Notice of.
15. Non-Discrimination. Airline, for itself, its personal
representatives, successors in interest and assigns, as a part of the
consideration hereof, does hereby covenant and agree that:
(a) No person shall be excluded on the ground of race, color or
national origin from participation in, denied the benefits of,
or otherwise be subjected to discrimination in the use of Jetport
Premises
(b) No person shall be excluded on the grounds of race, color or
national origin from participation in, denied the benefits of or
otherwise be subjected to discrimination in the construction of
any improvements on or at the Jetport and the furnishing of
services thereon;
(c) Airline shall use the Jetport Premises in compliance with all
other requirements imposed by or pursuant to Title 49, Code of
Federal Regulations, Department of Transportation Effectuated by
Title VI of the Civil Rights Act of 1964, and as said Regulations
may be amended. Airline agrees to furnish
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service on a fair, equal and not unjustly discriminatory basis
to all users thereof and to charge fair, reasonable and not
unjustly discriminatory prices for each unit of service.
(d) Nothing herein contained shall be construed to grant or
authorize the granting of an exclusive right and the County
reserves the right to grant to others the privilege and right
of conducting any and all activity of an aeronautical nature.
16. Termination for Cause. County may immediately terminate this
Agreement for nonpayment of fees due or Airline's failure to provide and
maintain required insurance.
Upon termination of this Agreement, Airline's authority to use the
Jetport Premises and other Jetport facilities and the rights herein granted
shall cease and Airline shall cease its operations at the Jetport.
All fixtures, equipment and other property brought, installed, or
placed by Airline in or on the Jetport under this agreement shall be deemed the
personal property of Airline and Airline shall have the right at any time during
the term of this Agreement, and for one (1) month after termination of this
Agreement to remove any of its personal property from the Jetport; provided that
Airline is not then in default in its payments to County hereunder; and subject
to Airline's obligation to repair all damage resulting from its removal of such
personal property. Any and all property not removed by Airline prior to
expiration or the aforesaid one (1) month period, shall thereupon be deemed
attached to the land upon which it is located and title thereto shall thereupon
vest in County. Airline shall pay County the customary rental for any premises
so occupied by Airline's personal property during the one (1) month or the part
thereof after termination of this Agreement.
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IN WITNESS WHEREOF, each party hereto has executed this Agreement the day and
year written below with all the formalities required by law.
ATTEST: HORRY COUNTY
/s/ Xxxxx Xxxxxx By: /s/
--------------------------- ------------------------------
Its: Director of Airports
-----------------------------
Date: 2/2/95
----------------------------
ATTEST: AIR SOUTH, INC.
/s/ Xxxxxxx X. X'Xxxx By: /s/
--------------------------- ------------------------------
Its: VP Airline OPS
-----------------------------
Date: 2/20/95
----------------------------
APPROVED AS TO FORM:
---------------------------
County Attorney
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Myrtle Beach Jetport [HORRY COUNTY S.C. LOGO]
0000 Xxxxxxx Xxxx Phone (000) 000-0000
Xxxxxx Xxxxx, Xxxxx Xxxxxxxx 00000
DEPARTMENT OF AIRPORTS
January 17, 1995
Xx. Xxxxxx X. Xxxxxx
Vice-President Airline Operations
Air South, Inc.
XX Xxx 00000
Xxxxxxxx, XX 00000
RE: RATES AND CHARGES FOR THE MYRTLE BEACH JETPORT
Dear Xx. Xxxxxx:
Enclosed are the costs of space rental, security, ground handling, landing fees,
and fuel servicing for the Myrtle Beach Jetport. Exclusive use space costs
include the square foot costs of construction and maintenance and take into
account air-conditioned or non air-conditioned space. Allocation of 10% of the
common area is divided among five (5) carriers assuming that the American Eagle
space is sublet.
We need you to select your space required, and inform us in writing immediately
to allow for agreements to be drawn, and modifications to the space be
accomplished prior to start of your operations.
Should you need further information or have any questions, please contact me.
Sincerely,
/s/ X.X. Xxxxxxx
--------------------------------------
X.X. Xxxxxxx
Director of Airports
cc: Xx. Xxxxx Xxxxxx, Xxxxxx & Assoc.
TC:tb
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TERMINAL SPACE COSTS *
Annual Monthly
1. Eastern Space ------ -------
Bag M-Up 657.22SF @ 17.50 $11,501.35 $ 958.45
Office 209.5 SF @ 18.48 3,871.56 322.63
Ticket Counter 312.32 SF @ 18.48 5,771.67 480.97
TOTAL $21,144.58 $1762.05
2. Vacant Unfinished
Bag M-Up 1265.5SF @ 17.50 $22,146.25 $1845.52
Office 396.5SF @ 18.48 7,327.32 610.61
Counter 224.7SF @ 18.48 4.152.46 346.04
TOTAL $33,626.03 $2802.17
3. American-Flagship
Bag M-Up 380SF @ 17.50 $ 6,651.00 $ 554.25
Office 1050.2SF @ 18.48 19,407.00 1617.25
Counter 446.5SF @ 18.48 8,250.96 687.58
TOTAL $34,308.96 $2859.08
4. Common Areas (10%) divided among US Air-Air South-ASA-Comair-MB Jet Express
Bag Claim $ 5,438.30 $ 453.19
Hold Room 8,236.80 686.40
TOTAL $13,675.10 $1139.59
5. Common Areas (90%) divided equally among airlines based on percentage of
enplanements for the month. The 90% divided by percentage is $30,887.78
monthly.
6. SECURITY FEES
Based on salaries of four law enforcement officers.
$84,906 annual
$7,075.50 monthly
Paid by airlines based on percentage of monthly enplanements
*See enclosed sample allocation cost statement for January 1995.
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1/10/95 MYRTLE BEACH JETPORT
PASSENGER TERMINAL BUILDING - ALLOCATION OF RENTALS FOR COMMON USE AREAS
CONTRACT RATES THRU JUNE 30, 1995
TOTAL TOTAL RENTAL
SQ. FEET RATE CHARGES PASSENGER TERMINAL BUILDING
---------- ------ ------- ---------------------------
6,889 21.212 146,130 BAGGAGE CLAIM
5,465 17.502 95,653 BAGGAGE DROPOFF
30,132 BAGGAGE CONVEYOR
------- $ 271,915 TOTAL BAGGAGE CLAIM AREA
4,029 17.502 70,519 AIRSIDE WALKWAY
15,160 21.212 321,575 DEPARTURE LOUNGES
1,128 17.502 19,743 HOLDROOM STAIRS
------- 411,837 TOTAL HOLD ROOM AREA
---------
$ 683,752 /12 = $56,979 (MONTHLY)
===================================================================================================================================
MONTH OF JANUARY, 1995
PRORATION FORMULA FOR BAGGAGE CLAIM AREA: 10% EQUALLY & 90% ENPLANEMENTS
$271,915 / 12 = $22,659.58
$22,659.58 X 90% = $20,393.62 : $22,659.58 X 10% = $2,265.96
: EQUAL TOTAL
PRIOR MONTH ENPLANEMENTS : MONTHLY MONTH
ENPLANEMENTS % ALLOCATION ALLOCATION ALLOCATION AIRLINE
------------ ------ ---------- ----------- ---------- -------
12,985 74.64 $15,221.80 $ 566.49 $15,788.29 USAIR
879 5.05 1,029.88 566.49 1,596.37 FLAGSHIP
3,436 19.75 4,027.74 566.49 4,594.23 ATL. SOUTHEAST
98 .56 114.20 566.49 680.69 COMAIR
------ ------ ---------- --------- ----------
17,398 100.00 $20,393.62 $2,265.96 $22,659.58
PRORATION FORMULA FOR HOLD ROOM: 10% EQUALLY & 90% ENPLANEMENTS
$411,837 / 12 = $34,319.75
$34,319.75 X 90% = $30,887.78 : $34,319.75 X 10% = $3,431.98
: EQUAL TOTAL
PRIOR MONTH ENPLANEMENTS : MONTHLY MONTH
ENPLANEMENTS % ALLOCATION ALLOCATION ALLOCATION AIRLINE
------------ ------ ---------- --------- ---------- -------
12,985 74.64 $23,054.64 $ 858.00 $23,912.64 USAIR
879 5.05 1,559.83 858.00 2,417.83 FLAGSHIP
3,436 19.75 6,100.34 858.00 6,958.34 ATL. SOUTHEAST
98 56 172.97 858.00 1,030.97 COMAIR
------ ------ ---------- --------- ----------
17,398 100.00 $30,887.78 $3,432.00 $34,319.78
SUMMARY
TOTALS AIRLINE
---------- -------
$39,700.93 USAIR
4,014.20 FLAGSHIP
11,552.57 ATL. SOUTHEAST
1,711.66 COMAIR
----------
$56,979.36
==========
21
MYRTLE BEACH JETPORT FUEL SERVICING AGREEMENT
This fuel servicing agreement, made and entered into this_______ day
of____________, 19__ by and between Horry County Department of Airports (HCDA)
of the County of Horry in the state of South Carolina and _____________________
___ with its principal office and place of business in _______________________.
WITNESSETH
WHEREAS, HCDA operates the Myrtle Beach Jetport and through its fixed base
operator (FBO) provides airport related fueling services at Myrtle Beach Jetport
(hereinafter called "Airport") and has the ability to provide the necessary
materials and labor to fully accomplish the services hereinafter described or
referenced; and
WHEREAS,_______________________________ desires to have and is relying upon
HCDA to provide all such services as are enumerated in this agreement, its
appendices which are incorporated herein and attached hereto and, if any,
subsequent amendments; and
WHEREAS,_______________________________ conducts regularly scheduled flights to
or from the airport and desires to obtain services at the airport; and
WHEREAS, HCDA shall in accordance with the provisions of this Agreement provide
all such services as specified by _____________________________ at the airport.
NOW, THEREFORE, for and in consideration of the mutual covenants, agreements and
conditions contained in this Agreement and for other good and valuable
consideration, the parties hereto agree as follows:
ARTICLE I
Term and Termination
Section 1.1 - This agreement shall commence as of ___________________________,
through ________________, and continue thereafter on a month-to-month basis if
desired by both parties.
Section 1.2 - ______________________, reserves the right and may exercise such
right within its discretion to terminate and cancel without prior notice this
Agreement in the event that HCDA, in __________________ opinion, is not or
can not perform to _________________________ satisfaction the services and
obligations required of it pursuant to the terms of this Agreement. It is
understood that the effectiveness of this Agreement, is at all times predicated
on ___________________ continuing authority to operate at the Airport.
22
ARTICLE II
Scope of Service
Section 2.1 - HCDA shall supply to __________________ the materials and services
necessary to accomplish airport fueling services as specified in Appendix A.
Airport fueling services shall include but not be limited to the fueling of
aircraft, management of fuel inventories, quality control, timely completeion
and submission of related management reports. It is agreed and understood that
such materials and services shall include, but not be limited to, provision of
necessary fuel trucks and fuel storage facilities and their maintenance.
Section 2.2 - HCDA agrees to provide adequate and capable supervisory and
working personnel. HCDA agrees to have its personnel trained by ______________
initially in its proper fueling and reporting operations and to designate a
qualified individual to maintain the level of such training.
Section 2.3 - HCDA services shall be available to __________________ seven (7)
days a week with normal operating hours between 0530 and 2200. In emergency
situations or with prior coordination, services will be provided between 2200
and 0530 with charges as stated in Appendix B. _______:_______ shall provide
to HCDA schedules of its flight operations on a monthly basis and changes to
those schedules as they occur from time to time.
Section 2.4 - The services shall be in accordance with the standards of
________________ as outlined in the _________________ fuel manual.
Section 2.5 - All work performed by HCDA shall be in compliance with all rules
and regulations relating to the implementation and operation of this contract
including, but not limited to those federal, state, county and city governments,
their agencies and departments having jurisdiction.
ARTICLE III
Notices
Section 3.1 - Notices by either party shall be made in writing and delivered by
United States mail or in person to the addressees below. Such notices shall be
deemed valid and effective when received.
HCDA: Horry County Department of Airports
0000 Xxxxxxx Xxxx -------------------------
Xxxxxx Xxxxx, XX 00000 -------------------------
ATTN: X.X. Xxxxxxx -------------------------
23
ARTICLE IV
Compensation
Section 4.1 - ____________________ shall pay HCDA on a monthly basis for
services rendered at rates specified in Apeendix B. Invoices shall be prepared
monthly and shall be paid within (10) days after receipt. Invoices are to be
sent to:
ARTICLE V
Assignment
Section 5.1 - The parties agree that neither party may assign its interest under
this Agreement without the prior consent of the other party, except that either
party may assign this Agreement to any affiliated company, or any successor to
its business through merger, consolidation, reorganization or voluntary sale or
transfer of substantially all of its assets.
24
ARTICLE VI
Interpretations and Enforcement
Section 6.1 - Should the appendices of this Agreement be found to conflict with
the body of the Agreement, the Appendices shall prevail.
Section 6.2 - If one portion of this Agreement shall be found to be
unenforceable for any reason, the remainder of the contract shall remain in full
effect.
Section 6.3 - This Agreement shall constitute the entire understanding between
the parties hereto and there are no agreements or understandings whether
written or oral that are not incorporated herein.
IN WITNESS WHEREOF, the parties hereto have affixed their signature and cause
this Agreement to be duly executed as of the date above written.
Executed in the presence of:
-----------------------------------
By:
--------------------------- --------------------------------
Title:
-----------------------------
Horry County Department of Airports
By:
--------------------------- --------------------------------
Title:
-----------------------------
25
APPENDIX A
AIRPORT FUELING SERVICE
All work to be performed will be accomplished according to the__________________
fuel manual. The performance of airport fueling services as wen as quality
control, management reports and other work are outlined as follows:
Into Plane Fueling
HCDA shall dispense into ___________________________ aircraft aviation turbine
fuel- Jet A as scheduled and requested by the airline manager or his designee.
All work must be accomplished in a timely manner in order to support on-time
departure goals.
HCDA shall order, receive and maintain aviation turbine fuel - Jet A inventory
from designated suppliers for _________________ operations requirements.
Sufficient fuel is to be received and stored to ensure uninterrupted flight
operations. Work shall be in accordance with the fuel manual.
Inventory receipts shall be received in gross gallons. Disbursements into
aircraft shall also be in gross gallons. Monthly, an inventory report shall
state the book inventory (gross receipts minus gross issues). The month-ending
physical inventory should be compared to the book inventory figure. The
difference shall not be more than one quarter of one percent (.25%) of the gross
issues. The physical ending inventory shall be the new months' beginning
inventory. If the inventory is commingled, a full statement of all participants
will be made with gains/losses shared proportionately to issues.
Oualitv Control
All work shall be done with the strictest and highest standards as outlined in
the Fuel Manual. Quality control of the fuel products shall not be compromised
in any way.
Inspections can be accomplished by ___________________________ Quality
Assurance personnel as required. Such visits can be both scheduled and
unscheduled. HCDA will upon notification of such inspection make all operating
records, facilities, equipment and such other material as may be requested
available to Quality Assurance personnel and shall cooperate fully with such
inspection.
Related Management Reports
In accordance with the fuel manual, certain reports are required of HCDA
including disbursements by flight and aircraft number, receipts, quality control
and such others as are required by __________________________ from time to time.
Audits can be accomplished as required. Such visits can be both scheduled and
unscheduled. HCDA will upon notification of such audit make all inventory
records and
26
such other material as be requested available to Audit personnel and
shall cooperate fully with such audit.
Aircraft Sumping
If aircraft sumping is required, fuel tanks will be sumped in accordance with
the fuel manual.
Aircraft Defueling
This shall be accomplished in accordance with the fuel manual.
27
APPENDIX B
FUEL SERVICING FEES
MYRTLE BEACH JETPORT
For all services as outlined in this Agreement, its amendments and appendices by
reference herein, the following fuel servicing fees will be charged:
INTO-PLANE SERVICE - A minimum fee of $20 will be charged each time company
inventory fuel is delivered to a ________________________ scheduled aircraft.
GALLONS SERVICED MONTHLY INTO AIRCRAFTS
Price per Gallon
----------------
0-25,000 $ .10
25,001-50,000 .05
50,000-+ .03
MINIMUM MONTHLY INTO-PLANE FEE - (company must provide and maintain their own
fuel inventory in HCDA fuel farm)
A) Companies providing service with Jet aircraft:
*less than an annual average of one aircraft per day $1,000
*1-3 aircraft flights scheduled per day (annual average) 2,500 minimum
*4 or more aircraft flights scheduled per day (annual average) 3,600 minimum
B) Companies providing service with turboprop aircraft: (gross weight of
12,500 lbs or more)
*1-3 aircraft scheduled per day (annual average) $1,000 minimum
*4 or more aircraft scheduled per day (annual average) 2,500 minimum
C) Companies providing service with turboprop aircraft (gross weight under
12,500 lbs)
*1-2 aircraft scheduled per day (annual average) $ 450
*3 or more aircraft scheduled per day (annual average) 850
D) The minimum monthly fee for _____________ is $________________.
LATE ARRIVALS OR EARLY DEPARTURES
Flights requiring fueling services between 2200 and 0530 a.m. shall incur an
additional charge of $25.00 per hour surcharge, with a minimum charge of 2
hours.
DEFUEL FEE
$.20 per gallon defueled
28
7. GROUND HANDLING SERVICE
Cost per flight including baggage handling, parking, aircraft cleaning, lavatory
service, catering (water and ice) and 10 year amortization of ground handling
equipment. 1995 Cost per flight per day = $250.00
8. LANDING FEES
Based on maximum gross landing weight of the aircraft - $1.68 per 1000lbs
737-300 = $191.52
737-400 = 203.28
MD80-82 = 218.40
MD80-83 = 234.36
9. FUEL SERVICE
Into-Plane Service
a. Minimum of $20 per airplane serviced
b. Gallon serviced monthly
0-25,000 gals Price .10gal
25,000 - 50,000 gals Price .05gal
50,000 + Price .03gal
c. Minimum monthly into-plane fee*
*See enclosed fuel servicing agreement
29
[XXXXXX & ASSOCIATES, INC. LETTERHEAD]
February 10, 1995
Mr. Xxxxxx Xxxxxx
Air South Inc.
000 Xxxxx Xxxx Xxxxx
Xxxxx 0X
Xxxx Xxxxxxxx, Xxxxx Xxxxxxxx 00000
Re: Space Use Permit;
Myrtle Beach Jetport
Dear Xx. Xxxxxx:
Enclosed are three copies of a Space Use Permit proposed to cover Air South's
occupancy and use, on an exclusive-use basis, of certain space in the Passenger
Terminal at the Myrtle Beach Jetport (i.e., the space last used by Eastern
Airlines' "Metro" affiliate).
This Space Use Permit complements the Non-Signatory Airline Use Permit
previously transmitted, which was (and is) proposed to cover Air South's use of
the common-use facilities of the Jetport, including common-use space in the
Passenger Terminal.
If the enclosed document is in order, please have two copies duly executed on
behalf of Air South and return them to me for subsequent execution on behalf of
Horry County, the operator of the Jetport.
After County execution, I will return one, fully-executed copy of the Space Use
Permit to you for Air South's files. Pending that, you may wish to keep the
third copy in your files for reference purposes.
Very truly yours,
/s/ Xxxxxxx X. Xxxxxxx
----------------------------
Xxxxxxx X. Xxxxxxx
Vice President
cc: X.X. Xxxxxxx - HCDA
Xxxx Xxxxxxxx - HCDA
Emma Xxxx Xxxxxxxx, Esq. - HCDA
