Okaloosa County BOCC — December 4, 2012 — RONDAN Lease and Internal Coordination Sheet — reading text

over the Property. In addition, LESSEE shall comply with all policies, rules, regulations, or ordinances of the LESSOR which are currently or may be hereinafter adopted relating to County owned airport facilities except that future additions or modifications to such policies, rules and regulations in existence on the commencement date of the lease shall not impair the rights of LESSEE under this lease. 15. TAXES: LESSEE shall pay all taxes, assessments, or other governmental charges of any nature or kind including those for fire protection, which may be imposed on rental or lease payments or assessed upon the property, hangar or improvements and upon any aircraft or other property kept therein promptly when due. 16. INSURANCE: (a). LIABILITY: LESSEE agrees that LESSEE, shall, from the Effective Date of this lease and during the entire term or any extension of this lease, keep in full force and effect, a policy of public liability insurance with respect to Leased Premises. The limits of public liability shall not be less than FIVE MILLION ($5,000,000.00) dollars Combined Single Limit (CSL). LESSOR reserves the right to evaluate the adequacy of the minimal published liability insurance requirement herein every three (3) years of the Lease Term and to increase such coverage amount if the risk management assessment warrants the same. (b). PROPERTY: LESSEE agrees to maintain property insurance on any permanent building or improvement constructed on the Property in an amount not less than full replacement value of such building and its improvements and agrees that the proceeds from such insurance shall be used promptly by LESSEE to repair and/or replace the hangar building and any improvements thereto. LESSOR shall be listed as a joint loss payee with LESSEE on all property insurance policies unless LESSEE is required, under the terms of any mortgage or other security agreement, to name the lender therein as primary loss payee under such coverage. In that event the LESSOR, shall be named as second loss payee and any other loss payee shall be subsequent to that. (c ). WEHICLE: LESSEE shall maintain continuously in effect at all times during the term of the lease, automobile liability insurance covering operations on the Leased Premises. All such automobile liability insurance shall provide Combined Single Limits (CSL) not less than ONE MILLION ($1,000,000.00) dollars for bodily injury and property damage. (d). All public liability and automobile liability coverage shall be endorsed to include LESSOR as Additional Insured. In addition, all insurance policies shall contain a clause that the insurer will not cancel or change the insurance without first giving the LESSOR thirty (30) days prior written notice. Prior to occupying the Leased Premises and annually upon renewal, LESSEE shall furnish LESSOR a Certificate of Insurance evidencing all required insurance. The Certificate(s) of Insurance shall be delivered to the Contracts and Lease Coordinator, 602-C N. Pearl Street, Crestview, Florida 32536. On request, LESSEE shall deliver and exact copy of the policy or policies including all endorsements. LESSEE understands and agrees that the minimum limits and type of insurance herein required may become inadequate, and further agrees that it will increase such coverage or limits of liability to commercially reasonable levels within ninety (90) days upon receipt of notice in writing from the LESSOR. (ec). WORKERS COMPENSATION: The minimum limits of insurance (inclusive of any amount provided by an umbrella or excess policy) shall be: Part One: State “Statutory” Part Two: Employer’s Liability $1 million accident 17. DAMAGE OR DESTRUCTION OF IMPROVEMENTS: If fifty percent (50%) of the improvements to the Property are damaged or destroyed by reason of a fire or other casualty, LESSEE shall have the option to either (i) terminate the Lease if the estimated completion date to restore the damaged improvements is more than three (3) months from the date of the casualty, or (ii) have the Ground Lease Rent abated in the proportion that the untenantable space bears to the total area of the improvements for a period from the date of the casualty to the substantial completion date, as determined by LESSEE, of the restoration of the untenantable space necessary to render such damaged portion of the improvements usable for the ordinary conduct of LESSEE’S business purposes. If LESSEE elects to restore the improvements then LESSEE shall commence all such repairs to improvements within one (1) year and completed within two (2) years of the date of the damage or destruction. 18. INTERFERENCE WITH OPERATIONS: If, due to any cause whatsoever, the airport operations are interrupted or cease for a period of more than seventy-two (72) hours and, upon the mutual agreement of the parties hereto that such lack of operations materially interferes with LESSEE’S ability to carry on its business operations then the Lease Rents shall be abated for the period of time that the airport operations are affected. 19. HOLD HARMLESS: To the fullest extent permitted by law, LESSEE shall indemnify and hold harmless LESSOR, its officers and employees from liabilities, damages, losses, and costs including but not limited to reasonable attorney fees, to the extent caused by the negligence, recklessness, or intentional, wrongful conduct of the LESSEE and other persons employed or utilized by the LESSEE in the performance of this lease. 20. RIGHTS OF ENTRY RESERVED: LESSOR, or it’s duly authorized representative, may enter upon the Leased Premises at any reasonable time by providing prior notification to the LESSEE, except on an emergency basis, for the purpose of inspection; provided that this right of inspection shall be subject to all applicable security restrictions imposed upon LESSEE under the terms of certain contracts. 21. ASSIGNMENT AND SUBLEASE: After the initial construction and financing of said hangar, all subsequent transfers and assignments of any interest, including mortgages thereon, or this lease require written approval in advance by LESSOR and payment of an Approval Fee of ONE THOUSAND ($1,000.00) dollars to cover administrative costs. Said approval shall not be withheld unreasonably by LESSOR. 22. NOTICES: All notices and consents required or permitted by this lease shall be in writing and transmitted by registered or certified mail, return receipt requested, with notice deemed to be given upon receipt, postage prepaid, and addresses as follows: If to LESSOR: Airports Director Okaloosa County Airports 1701 State Road 85 North Eglin AFB, Florida 32542-1413 With copies to: Chairman, Board of County Commissioners Okaloosa County Courthouse 101 E. James Lee Blvd. Crestview, Florida 32536 If to LESSEE: J. Dan Gilmore RONDAN Investments, LLC Managing Partner 40 S. Palafox Place, Suite 502 Pensacola, FL 32501 With copies to: Attorney Robert Beasley 226 E Government Street Pensacola, FL 32502 23. WASTE: LESSEE shall not commit or suffer to be committed on said premises, any waste, nuisance, or unlawful act. 24. TERMINATION BY LESSOR: If LESSEE breaches or violates any of the terms and provisions of this lease, and fails to correct such breach or violation within thirty (30) days of having been given written notice to cure by LESSOR, then this lease may be terminated and in such event of termination, the building and improvements on the Property shall become the property of LESSOR. 25. NON-DISCRIMINATION: LESSEE, for its self, its personal representatives, successors, in interest, and assigns, as part of the consideration hereof, does hereby covenant and agree that (1) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, and (3) that LESSEE shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulation, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, and as said regulations may be amended. That in the event of breach of any of the above nondiscrimination covenants, LESSOR shall have the right to terminate the lease and to reenter and repossess said land and the facilities thereon, and hold the same as if said lease had never been made or issued. This provision shall not be effective until the procedures of Title 49, Code of Federal Regulation, Part 21, are followed and completed, including exercise or expiration of appeal rights. 26. WAIVER: Unless otherwise specifically provided by this lease, no delay or failure to exercise a right resulting from any breach of this lease shall impair such right or shall be construed to be a waiver thereof, but such right may be exercised from time to time as often as may be deemed expedient. Any waiver shall be in writing and signed by the party granting such waiver. Any such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach under this lease. 27. HEADINGS: The headings contained in this lease are for convenience of reference only, are not to be considered a part hereof and shall not limit or otherwise effect in any way the meaning or interpretation of this lease. 28. COUNTERPARTS: This lease may be executed in more than one counterpart, each of which shall be deemed and original. 29. FURTHER ASSISTANCE: Each party agrees to execute and deliver any instruments and to perform any acts that may be necessary or reasonably requested in order to give full effect to this lease provided such instruments or acts are not inconsistent with, or do create obligations in addition to those obligations created by the terms of this lease. 30. APPROVALS: Whenever in this lease, the approval, consent or agreement of either the LESSOR or LESSEE is required or contemplated such approval, consent or agreement shall not be unreasonably withheld. 31. ILLEGAL PROVISIONS: In case any one or more of the provisions contained in this lease shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this lease and this lease shall be construed as if invalid, illegal or unenforceable provisions had not been started herein. 32. VENUE AND JURISDICTION: This lease shall be governed by the laws of the State of Florida. The parties acknowledge that a substantial portion of negotiations, anticipated performance and execution of this lease occurred or shall occur in Okaloosa County, Florida, and that, therefore, without limiting the jurisdiction or venue of any other federal or state courts, each of the parties irrevocably and unconditionally agrees that any suit, action or legal proceeding arising out of or relating to this lease shall be brought in the Circuit Court of the First Judicial Circuit, in and for Okaloosa County, Florida. 33. CONTINGENCY: RESERVED 34. RADON GAS: In accordance with requirements of the State of Florida, the following notification statement shall be included in all agreements relating to rental of real property. Radon gas is naturally occurring radio-active gas that , when it has accumulated in a building in sufficient quantities may present health risks to persons who are exposed to it over the levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding