HomeMy WebLinkAboutTHE HERTZ LEASE AGREEMENT BETWEEN AUGUSTA GA FOR AUGUSTA REGIONAL AIRPORT SAMEt j-.1-e
LEASE AGREEMENT
BETWEEN
AUGUSTA, GEORGIA
FOR THE AUGUSTA REGIONAL AIRPORT
AND
THE HERTZ CORPORATION
LEASE AGREEMENT
THIS LEASE AGREEMENT (Agreement) made this day of , 2012, by and
between Augusta Georgia (Lessor) on behalf of the Augusta Aviation Commission
(Commission), an agency of Augusta, Georgia and The Hertz Corporation, a corporation existing
under the laws of the state of Delaware (Lessee).
WITNESSETH:
WHEREAS, the Augusta Regional Airport (Airport) is owned by Augusta, Georgia and
operated by the Aviation Commission; and
WHEREAS, the Aviation Commission has the right to grant the privilege of occupancy
of portions of the Airport to Lessee and others, in accordance with applicable Augusta Georgia
ordinances and subject to the terms and conditions hereinafter set forth; and
WHEREAS, Lessee is a corporation primarily engaged in the business of renting
automobiles to Airport passengers and the public; and
WHEREAS, both the Lessor and Lessee desire to enter into this Lease to provide space
for the Lessee to conduct its business at the Airport and terms and conditions for the operations
of the Rental Car Concession; and
NOW THEREFORE, in consideration of the mutual covenants and considerations
herein contained, the Lessor and Lessee hereby agree as follows:
SECTION 1
DEFINITIONS; CONSTRUCTION
Definitions. Certain capitalized words and terms used in this Lease are defined in the text herein.
The following words and terms are defined terms under this Lease:
1.1 "Airport" shall mean the lands and facilities owned by the Lessor and operated by the
Aviation Commission known collectively as Augusta Regional Airport, as it now exists
and as it may change from time to time.
1.2 "Airport Concession Disadvantaged Business Enterprise" or "ACDBE" shall mean, a
business, whether it is a corporation, sole proprietorship, partnership or joint venture
certified as an ACDBE by the Airport, or State of Georgia, of which at least fifty -one
percent (51%) of the interest is owned and controlled by one or more socially and
economically disadvantaged individuals as defined in the Airport and Airways Safety and
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Capacity Expansion Act of 1987 and the regulation promulgated pursuant to 49 CFR Part
23.
1.3 "Airport Customer" shall mean (i) any person who comes to the Airport by any means of
transportation and enters into a motor vehicle rental agreement with Lessee at Lessee's
Rental Car concession; and (ii) any person who enters into a motor vehicle rental
agreement with Lessee at any of Lessee's rental car operations located within a one (1)
mile radius of the Airport's boundary line or takes delivery from the Lessee or returns a
motor vehicle rented from the Lessee.
1.4 "Airport Executive Director" shall mean Gary LeTellier, or any other such person
designated by the Aviation Commission to exercise functions with respect to the rights
and obligations of the Aviation Commission under this Lease.
1.5 "Augusta Aviation Commission" or "Commission" shall mean the Commissioners tasked
with the overall administration of the Airport.
1.6 "Augusta, Georgia or "Lessor" shall mean the governing authority of Augusta - Richmond
County, Georgia.
1.7 "Best Management Practices" shall include those environmental or operational standards
or guidelines specifying common and accepted practices appropriate for the types of
businesses Lessee, its contractors, agents or vendors engage in on the Airport or such
standards or guidelines as have been articulated by pertinent trade associations,
professional associations or regulatory agencies, including (but not limited to) Best
Management Practices developed by the Airport cooperation with its tenants, including
Lessee. Best Management Practices shall be subject to approval by the Airport Director.
1.8 "Common Use Area" shall mean and refer to those portions of the Airport shared equally
by all rental car agencies or airlines.
1.9 "Concessionaire" shall mean and refer to The Hertz Corporation. "Concessionaire" when
used in the plural, shall mean and refer to all concessionaires having executed an
agreement related to the operation of a rental car concession at the Airport.
1.10 "Counter Space" shall mean and refer to that area designated by the Lessor inside the
terminal provided to the Lessee for conducting rental car operations.
1.11 Days" (whether capitalized or not) shall, unless otherwise specified, mean and refer to
calendar days, not business days.
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1.12 "Environmental Laws" means all federal, state, and local laws, rules, regulations,
ordinances, programs, permits, guidance, orders, and consent decrees relating to health,
safety, and environmental matters, including, but not limited to, the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended, the
Toxic Substances Control Act, as amended, the Clean Water Act, as amended, the Clean
Air Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as
amended, state and federal super lien and environmental cleanup programs and laws, and
U.S. Department of Transportation regulations.
1.13 "Event of Default" shall mean those events set forth in Section 28 of this Lease which
may cause the termination thereof.
1.14 "FAA" shall mean the Federal Aviation Administration of the U.S. Government or any
federal agencies succeeding to its jurisdiction.
1.15 "Gross Revenues" shall mean and refer to all consideration of any kind - whether cash
transactions, credit card or in kind - received, and any other form of billing used, derived
and /or billed by the Lessee from:
1.15.1. any rental of a motor vehicle to any person from any point on the Airport
or from any rental of a motor vehicle to any person returned to the Lessee,
or its agent, to any point on the Airport or within one (1) mile of the
Airport; and /or
1.15.2. All revenue received by the Lessee from every Airport Customer who
either executes an agreement for the rental of a motor vehicle, or takes
delivery of a motor vehicle from the Lessee. Gross Revenue shall be
deemed received at the time of the sale, lease, or service transaction
occurs, giving rise to the Lessee's right to collect such monies, regardless
of whether the transaction was for cash or credit; and, if for credit,
regardless of whether the Lessee ultimately collects the money owed from
the Airport Customer.
1.16 "Lease" or "Agreement" shall mean and refer to this Lease Agreement between the
Lessor and Lessee, together with the exhibits to the Lease Agreement and all agreements
supplemental to or modifying the Lease Agreement, whether made contemporaneously
therewith or subsequent thereto, which is incorporated herein by reference.
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1.17 "Leased Premises" or "Premises" shall mean the area leased to Lessee to conduct
business as set forth on Exhibits "A ", "B" and "C" and incorporated herein by reference,
together with all improvements located thereon, any improvements to be constructed, and
all easements (excluding easements for light and air), rights of way and appurtenances
pertaining thereto.
1.18 "Legal Requirements" shall mean and refer to all laws, statutes and ordinances including
building codes and zoning regulations and ordinances and the orders, rules, regulations
and requirements (whether now or hereafter in effect) of all federal, state, county, city or
other local jurisdiction departments, agencies, bureaus, offices and other subdivision
thereof, or any official thereof, or of any other governmental, public or quasi - public
authority, which may be applicable to or have jurisdiction over the premises, or the
sidewalks or streets adjacent thereto and all requirements, obligations and conditions of
all instruments of record on the date of this.
1.19 Lessee shall mean Hertz Global Holdings, Inc. d/b /a Hertz Rent -A -Car, a Delaware
corporation authorized to do business in the state of Georgia.
1.20 "Lien" shall mean and refer to any mortgage, lien, security interest, encumbrance, charge
on, pledge of, conditional sale or other encumbrance on the premises.
1.21 "Notice of Default" shall mean and refer to written notice of any Event of Default to
Lessee. Such notice, for all purposes, shall be in lieu of, and not in addition to, any notice
required as a prerequisite to an unlawful detainer or similar action for possession of the
Premises.
1.22 "Personal Property" shall mean the trade fixtures, equipment, conveyors, inventory,
furniture, or supplies owned or leased by Lessee (from a party other than the Lessor or
the Aviation Commission) and installed or used at the Airport in the conduct of Lessee's
car rental business that are removable from Lessee's Premises without substantial or
permanent injury or damage to Lessee's Premises.
1.23 "Public Areas" shall mean those areas of the Airport not leased to any person, company,
or corporation that are open to use by the general public.
1.24 "Ready Return Space" shall mean that consolidated area of the Airport designated for the
return and parking of rental vehicles.
1.25 "Rental Car Concession" shall mean and refer to the privilege to operate a rental car
concession at the Airport on a nonexclusive basis for the purpose of arranging rental car
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services for the benefit of Airport Customers, where such rental car service is furnished
by or on behalf of Lessee.
1.26 "Rules and Regulations" shall mean those rules, regulations, and ordinances promulgated
by the Aviation Commission or operating directives issued by the Airport Director, as the
same may be amended, modified, or supplemented from time to time to the extent that
such rules, regulations, and ordinances are not in conflict with the purposes of this Lease.
1.27 "Service Area Space" shall mean that area of the Airport designated for the washing of
vehicles.
1.28 "TSA" shall mean the Office of Homeland Security and Transportation Security
Administration, or their authorized successor(s).
SECTION 2
REPRESENTATIONS AND UNDERTAKINGS
It is understood and agreed under this Agreement that the Aviation Commission is the operator
of the Airport for the use and benefit of the public that Augusta, Georgia is the owner of the
Airport and that Lessee is only the Lessee of the Leased Premises herein described with only the
privileges provided for in this Agreement.
2.1 Representations by the Lessor. The Lessor makes the following representations and
warranties as the basis for the undertakings on its part herein contained:
2.1.1 Creation and Authority. The Lessor is a public body corporate and politic, duly
created and validly existing under the laws of the State of Georgia.
2.1.2 The Lessor is the owner of the Premises, has all requisite power and authority
under the laws of the State of Georgia (i) to lease the same to the Lessee, and (ii)
to enter into, perform its obligations under, and (iii) to exercise its rights under
this Lease.
2.2 Representations by the Lessee. The Lessee makes the following representations and
warranties as the basis for the undertakings on its part herein contained:
2.2.1 Organization and Power. The Lessee is a corporation duly organized, validly
existing, and in good standing under and by virtue of the laws of the State of
Delaware, is authorized to do business in the State of Georgia, and has all
requisite power and authority to enter into this Lease and perform its obligations
and exercise its rights under the same.
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2.2.2 Agreements Are Legal and Authorized. The Lessee warrants that the
consummation of the transactions herein contemplated, and the fulfillment of or
the compliance with all of the provisions hereof (i) are within the power, legal
right, and authority of the Lessee, (ii) have been duly authorized by all necessary
and appropriate action on the part of the members of the Lessee, (iii) have been
duly executed and delivered on the part of the Lessee, (iv) are legal, valid and
binding as to the Lessee, subject to bankruptcy, moratorium and other equitable
principles, and (v) will not conflict with or constitute on the part of the Lessee a
violation of, or a breach of or a default under, any charter instrument, bylaw,
indenture, mortgage, deed to secure debt, pledge, note, lease, loan, installment
sale agreement, contract, or other agreement or instrument to which the Lessee is
a party or by which the Lessee or its properties are otherwise subject or bound
which would have a material adverse impact on the Lessee's ability to perform its
obligations hereunder, or any judgment, order, writ, injunction, decree, or demand
of any court or governmental agency or body having jurisdiction over the Lessee
or any of its activities or properties.
2.3 No Defaults. No event has occurred and no condition exists that would constitute an
Event of Default by the Lessee or which, with the lapse of time or with the giving of
notice or both, would become an Event of Default by the Lessee hereunder.
2.4 Disclosure. The representations of the Lessee contained in this Lease and /or any
certificate, document, written statement, or other instrument furnished by or on behalf of
the Lessee to the Lessor in connection with the transactions contemplated hereby, do not
contain any untrue statement of a material fact and do not omit to state a material fact
necessary to make the statements contained herein or therein not misleading. Lessee
states that there is no fact that it has not disclosed to the Lessor in writing that materially
and adversely affects or in the future may (so far as the Lessee can now reasonably
foresee) materially and adversely affects the Lease or the ability of the Lessee to perform
its obligations under the Lease.
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SECTION 3
LEASING CLAUSE; SECURITY; TITLE
The Lessor, duly authorized, for and in consideration of the rents, covenants, agreements,
and stipulations hereinafter mentioned, reserved and contained, to be paid, kept and performed
by the Lessee, has leased and rented, and by these presents does lease and rent, unto the said
Lessee, for Lessee's use, and said Lessee hereby agrees to lease and take upon the terms and
conditions which hereinafter appear, the Premises.
SECTION 4
TERM; POSSESSION
4.1 Effective Date; Lease Term. This Lease shall become effective upon its execution and
approval by the Lessor, for a period of three (3) years (the "Lease Term "), commencing
on January 1, 2012. The Lease Term shall expire at 11:59 p.m., Georgia time, on
December 31, 2014, subject to the provisions of this Lease permitting earlier termination.
Notwithstanding any expiration or termination of this Lease, those covenants and
obligations that by the provisions hereof are stated to survive the expiration or
termination of this Lease shall survive the expiration or earlier termination of this Lease.
This Lease shall create a usufruct only and not an estate for years.
4.2 Effect of Termination. No termination of this Lease prior to the normal ending thereof,
by lapse of time or otherwise, shall affect Lessor's right to collect rent for the period prior
to termination thereof.
4.3 Delivery of Possession. The Lessee shall, commencing with the Effective Date of this
Lease, have possession, custody and control of the Premises as it exists on such date, and
the Lessee hereby accepts such possession, custody and control.
4.4 Quiet Enjoyment, Ingress and Egress. Lessor covenants and warrants that Lessee, so
long as it shall pay the rentals herein stipulated and shall perform the duties and
obligations herein agreed to be performed by it, shall peaceably and quietly have, hold
and occupy and shall have the use and enjoyment of the Leased Premises during the term
of this Lease and any extensions thereof, including but not limited, to ingress and egress
for Lessee and its customers.
4.5 The foregoing notwithstanding this Lease Agreement may be canceled at any time in
writing by either party upon thirty (30) days notice, or upon such longer period a may be
provided in such notice.
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SECTION 5
LEASED PREMISES
5.1 For the terms and upon the conditions and for the consideration hereinafter set forth, the
Lessor has leased and does hereby lease to Lessee and Lessee does hereby rent and lease
from the Lessor, the property designated for Lessee shown on Exhibit A to this Lease (the
Leased Premises) for its exclusive use.
5.2 Lessee shall use the Leased Premises for the conduct of its automobile rental operation,
which includes, in the areas designated on Exhibit A for this Lessee, the negotiation of
rates for the rental of automobiles to patrons, passengers, and others.
5.3 The Lessor reserves the right to enter upon the Leased Premises at any time for the
purpose of further developing and improving said premises as it sees fit, regardless of the
desires of Lessee, and without interference or hindrance, and at the Lessor's sole cost and
expense.
5.4 Lessee shall not attach any posters, pictures, advertisement, signs, or the like on the walls
or the counters located in the Airport, without the prior written consent of the Lessor.
5.5 Counter Space. The Lessee shall be provided Four Hundred Two (402) square feet of
counter space as depicted on Exhibit A to conduct its car rental business at the Airport.
The Lessor shall have the right to move the counter and operation of Lessee upon giving
thirty (30) days written notice to any location within the Airport terminal.
5.6 Ready Return Space. The Lessor shall provide Lessee eighteen (26) ready return
parking spaces. Said spaces will be provided on the Airport as shown on Exhibit B.
Lessee acknowledges that the Executive Director may reassign parking spaces from time
to time to accommodate the needs of the traveling public and Airport operations.
SECTION 6
ACCEPTANCE, MAINTENANCE AND REPAIR
6.1 Lessee accepts the Leased Premises in their present condition and agrees to maintain the
Leased Premises, counter and equipment owned by Lessee and installed on said premises
in good state of repair at all times during the life of this Lease. Lessee warrants that it has
inspected the Premises and accepts possession of the Lease Premises and any
improvements thereon "as is" in its present condition, and subject to all limitations
imposed upon the use thereof by the rules and regulations of the FAA, TSA and by
ordinances of the Lessor, and admits its suitableness and sufficiency for the uses
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permitted hereunder. Except as may otherwise be provided for herein, the Lessor shall
not be required to maintain nor to make any improvements, repairs restorations upon or
to the Premises or to any of the improvements presently located thereon. Lessor shall
never have any obligation to repair, maintain or restore, during the term of this lease, any
improvements placed upon the Premises by Lessee, its successors and assigns.
6.2 Lessee, without limiting the generality hereof, shall:
6.2.1 keep at all times, in a clean and orderly condition and appearance, the Premises,
all improvements thereon and all of the Lessee's fixtures, equipment and personal
property which are located on any part of the Premises;
6.2.2 repair any damage caused by Lessee or its invitees, tenants, or contractors to
paving, soils, water or other parts of the Premises caused by any oil, gasoline,
grease, lubricants, solvents, flammable liquids, or substances having a corrosive
or detrimental effect thereon, and remediate any release caused by Lessee or any
of its invitees, tenants or contractors of any substance that has a harmful effect on
human health or the environment as determined by any regulatory agency.
SECTION 7
SIGNS
Lessee's Premises in the Airport terminal shall be clearly signed and designated at all
times during the Lease Term with the Lessee's specific identification and sufficient operational
signage to ensure the safe and efficient operation of the Rental Car Concession and provision of
services. Except as specifically permitted by Lessor, Lessee shall not attach to or paint on or
within the Premises (including the walls, windows and doors thereof) any signs or other
advertising matter, symbols canopies or awnings. At the termination or sooner expiration of this
Lease, all signs, advertising matter, symbols canopies or awnings attached to or painted by
Lessee shall be removed by Lessee at its own expense, and Lessee shall repair any damage or
injury to the Premises and correct any unsightly condition caused by the maintenance and
removal of said signs, etc. Lessee shall not be permitted to advertise any products and /or services
other than those of Lessee connected to the operation of the Rental Car Concession.
SECTION 8
USE OF PREMISES
8.1 Lessee shall not use or occupy or permit the Premises or any part thereof to be used or
occupied, no do or permit anything to be done in or on the Premises, in whole or in part,
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in a manner which would in any way (i) violate any then - applicable legal requirements,
or (ii) violate any of the covenants, agreements, provisions and conditions of this Lease
(iii) violate the certificate of occupancy then in force with respect thereto, or (iv) may
make it difficult for either the Lessor to obtain fire or other insurance required hereunder,
or (v) as will constitute a public or private nuisance.
8.2 Lessee shall not use or occupy or permit the Premises to be used or occupied, in whole or
in part, in a manner which, in the Lessor's reasonable judgment, may or tends to, impair
or interfere with (i) the character, reputation or appearance of the Premises or the Airport;
or (ii) the use of any other Airport property.
8.3 Lessee shall not do or permit or suffer any waste, damages, disfigurement or injury to or
upon the Premises or any part thereof.
8.4 In connection with the exercise of its rights under this Lease, Lessee shall not:
8.4.1 Do or permit its agents, employees, directors, or officers to do anything on or
about the Airport that may interfere with the effectiveness or accessibility of the
drainage and sewage system, electrical system, air conditioning system, fire
protection system, sprinkler system, alarm system, and fire hydrants and hoses, if
any, installed or located on or within the premises of the Airport.
8.4.2 Bring, keep or store, at any time, flammable or combustible liquids on the
premises, except in storage containers especially constructed for such purposes in
accordance with federal, state, and county laws, including the Uniform Fire Code
and the Uniform Building Code. For the purposes of this Lease, flammable or
combustible liquids shall have the same definitions as set forth in the most recent
Uniform Fire Code.
8.4.3 Do or permit its agents, employees, directors, or officers to do any act or thing
upon the Airport that will invalidate or conflict with any fire or other casualty
insurance policies covering the Airport or any part thereof.
8.4.4 Do or permit its agents, employees, directors, or officers to do any act or thing
upon the Airport that will jeopardize the Airport's Operating Certificate.
8.4.5 Do or permit its agents, employees, directors, or officers to do any act or thing in
conflict with the Airport's Security Plan.
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8.4.6 Use the Premises for any illegal purposes, nor in violation of FAA, TSA and /or
the Airport's Rules or Regulations, as amended from time to time, or any
regulation of any other governmental entity.
8.4.7 Use the Premises in any manner that will create any nuisance or trespass with
respect to other tenants; constitute any unreasonable annoyances, obstruction or
interference with operations; or in any manner interfere with, obstruct, block or
violate in any manner, the navigable airspace above the Airport in compliance
with 14 C.F.R. § 77.5 and /or other regulations as implemented by the Airport, the
FAA or as may be implemented by the TSA.
8.4.8 Cause or permit any hazardous materials to be placed, stored, generated, used,
released, or disposed of in, on, under, about, or transported from any Airport
premises by Lessee, its agents, employees, contractors, or other person unless it
has complied with the following: with respect to hazardous materials other than
oil, petroleum products, cleaning products, and /or flammable substances
reasonably necessary in connection with Lessee's aeronautical activities, the prior
written consent of the Airport Executive Director shall be required, which shall
not be withheld unreasonably. The Lessor may impose, however, as a condition
of such consent, such requirements as the Lessor in its sole discretion may deem
reasonable or desirable, including, without limiting the generality of the
foregoing, requirements as to the manner in which, the time at which, and the
contractor by whom such work shall be done, and Lessee must comply with all
environmental laws and regulations (including compliance with all Environmental
Protection Agency requirements concerning clean -up) , and with prudent business
practices, with respect to such hazardous materials, and the presence of hazardous
materials must be reasonably necessary for the operation of Lessee's business.
"Hazardous Material" shall mean: (1) any oil petroleum products, flammable
substances, explosives, radioactive materials, hazardous wastes or substances,
toxic wastes or substances, or any other wastes, materials, or pollutants that pose a
hazard to the Airport premises or surrounding property; or to the safety and /or
health of persons on or about the Airport and surrounding property and /or cause
Lessee's Premises to be in violation of any federal, state, or local laws governing
or regulating hazardous materials; (2) asbestos in any form, urea formaldehyde
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foam insulation, transformers, or other equipment that contains dielectric fluid
containing regulated levels of polychlorinated biphenyls, or radon gas; (3) any
chemical, material, or substance defined as or included in the definition of
"hazardous substances ", "hazardous waste ", "hazardous material ", "extremely
hazardous waste ", "restricted hazardous waste ", "toxic substance ", or similar
words under any applicable local, state, or federal laws, or any regulations
promulgated pursuant thereto, including, but not limited to: the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (CERCLA), as
amended, 42 U.S.C. § §9601, et seq.; the Hazardous Materials Transportation Act,
as amended, 49 U.S.C. § §1801, et seq.; the Federal Water Pollution Control Act
(Clean Water Act, or CWA), as amended, 33 U.S.0 § §1251 et seq.; the Resource
Conservation and Recovery Act (RCRA), as amended, 42 U.S.C. § §6901, et seq.;
the Toxic Substances Control Act (TSCA), as amended, 15 U.S.C. §§ 2601, et
seq.; (4) any other chemical, material, or substance exposure that is prohibited,
limited, or regulated by any government authority, and that may or could pose a
hazard to the health and safety of occupants of the Airport, or to any person
entering upon the Airport or adjacent property; and /or (5) any other chemical,
material, or substance that may or could pose a hazard to the environment or a
person.
8.5 Lessee shall use the Premises and the facilities of the Airport in accordance with
published Airport Rules and Regulations. Lessee specifically agrees to comply with all
present or future Rules and Regulations of the Airport that are promulgated for the
general safety and convenience of the Airport, its various tenants, invitees, licensees and
the general public and which do not materially affect the use and enjoyment of the
Premises for the purposes for which they are intended under this Lease. Said Rules and
Regulations may be examined by Lessee at the offices of the Airport's Aviation Services.
SECTION 9
TRADE FIXTURES
Except to the extent provided in repair or substitution of any improvements provided by
the Lessor, Lessee shall retain ownership of: (i) all trade fixtures and business equipment and
furnishings from time to time installed by Lessees at its expense, and (ii) all Alterations and /or
improvements that Lessee is required to remove at the end of this Lease pursuant to Section 4.
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property of Lessee, or for loss, conversion or abandonment of such vehicles and other
equipment, personal property and trade fixtures; (c) revenue from the wholesale transfer
of salvage vehicles; (d) all non - revenue rentals to employees of Lessee; and (e) the
Customer Facility Charge.
11.3 Gross Revenue shall generally be determined by the total charges on the face of an
Airport Customer's Receipt, less any charges specifically excluded above, in Section
11.2. Anything not explicitly excluded above shall be included within the Gross Revenue
totals.
11.4 Gross Revenue shall not be reduced by reason of any commission or similar amount paid
by the Lessee to travel agents or others.
11.5 All Concession Fee payments shall be made on or before the tenth (10th) day of the
calendar month following the calendar month during which the Gross Revenue
hereinabove described has been realized. Lessee shall also submit a statement that sets
forth the total amount of Gross Revenue earned during the prior month.
SECTION 12
GRANT OF CONCESSION
12.1 For the terms and upon the conditions and for the consideration hereinafter set forth, the
Lessor grants to Lessee the right to operate a Rental Car Concession at the Airport on a
nonexclusive basis for the purpose of arranging rental car and related service for Airport
Customers. The concession rights and privileges granted and awarded to Lessee are
expressly made subject to the terms of this Agreement. Lessee acknowledges and
understands that the Lessor intends to grant Rental Car Concessions to other qualified
companies on substantially the same terms and conditions contained herein. The award of
concession rights and privileges to other rental car operators shall not constitute a
violation of this Agreement.
12.2 Lessee shall use the Leased Premises for the conduct of its automobile rental operation,
which includes, in the areas designated in this Agreement, for the negotiation of rates for
the rental of automobiles to patrons, airline passengers, and others.
12.3 Lessee shall operate on the Airport in compliance with the Airport's operational
procedures, Rules and Regulations, and all applicable federal, state and local laws.
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SECTION 15
HOURS OF OPERATION
The hours of operation are those hours when the Airport Passenger Terminal Building is
open for business, except when mutually agreed upon by Lessee and the Executive Director and
upon receipt of written acknowledgment from the Executive Director of any such agreement.
SECTION 16
OPERATING STANDARDS
16.1 Lessee's Rental car operations shall be conducted in a safe, clean and orderly condition at
all times. No trash or debris shall be permitted to accumulate or be stored on any portion
of the Leased Premises.
16.2 Payment: Lessee shall accept credit cards, debit cards and traveler's check as acceptable
forms of payment for rental transactions.
16.3 Rental Vehicles: Lessee agrees to have available at all times well - maintained, late -model
automobiles. In no instance shall the automobiles be more than three (3) years old.
16.3.1 Lessee shall maintain its vehicles in good and safe operating condition, free from
known mechanical defects. Vehicles shall be maintained in a clean and attractive
condition both inside and outside. The Aviation Commission shall have the right
to prohibit the Lessee from offering for rent any vehicle which fails to meet the
mechanical or appearance standards set forth herein.
16.3.2 Lessee shall have a sufficient number of vehicles to meet the reasonably
foreseeable demands of the traveling public.
16.3.3 Lessee shall operate all of its vehicles in a safe manner and in accordance with all
Airport, Lessor, state and federal regulations. All vehicles shall be properly
licensed and insured.
16.3.4 Lessee shall obtain and maintain all such licenses and permits necessary to
operate its car rental business.
SECTION 17
BRANDING
17.1 Lessee shall operate at the Airport under the brand or trade name of Hertz Rent -A -Car.
During the term of this Agreement Lessee shall operate and maintain all signage only
under this name.
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SECTION 19
RESERVATION OF RIGHT
The Lessor hereby reserves the right to build a consolidated rental car facility for use by all
rental car concessionaries /lessees. The Lessee agrees that at the time such facility is completed it
shall transfer to and conduct its business from such facility.
SECTION 20
BONDS OR OTHER SECURITY
20.1 Security. Lessee shall, upon execution of this Lease, obtain and deliver to the Lessor a
good and sufficient corporate surety company bond, irrevocable standby letter of credit,
or other security acceptable to the Airport (the "Security ") to secure Lessee's full
performance of this Lease and the Concessions Agreement, including the payment of all
fees and other amounts now or hereafter payable to or required to be remitted to the
Lessor under the Lease or the Lease in an amount equal to month's rent. The form,
provisions and nature of the Security and the identity of the surety or other obligor there
under, shall at all times be subject to the Lessor's approval. The Security shall remain in
place at all times throughout any holdover period. No interest shall be paid on the
Security and the Lessor shall not be required to keep the Security separate from its other
accounts. No trust relationship is created with respect to the Security.
20.2 Application of Security. The Lessor may apply all or part of the Security to unpaid rent
or any other unpaid sum due under this Lease to cure other defaults of Lessee. If the
Lessor uses any part of the Security, Lessee shall restore the Security to its then - currently
required amount within thirty (30) days after the receipt of the Lessor's written request to
do so. The retention or application of such Security by the Lessor pursuant to this
Section does not constitute a limitation on or waiver of the Lessor's right to seek further
remedy under law or equity.
SECTION 21
INTEREST ON OVERDUE PAYMENTS
There shall be added to all unpaid sums due the Lessor an interest charge of one and one-
half percent (1.5 %) per month on the principal sum, computed as simple interest; at no time will
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the interest actually charged exceed the highest applicable interest rate permitted under Georgia
law. Payments not received when due shall accrue interest from the due date until paid in full.
SECTION 22
TAXES
Lessee shall promptly pay when due all personal property taxes which may be assessed
against its equipment, merchandise, or other property located on or about the Leased Premises
and any and all franchise fees or other taxes or assessments which may be imposed or assessed
against Lessee.
SECTION 23
PAYMENT OF UTILITY CHARGES
Lessee shall pay promptly for all utilities and utility services used by Lessee at or in
Lessee's Premises. The amount of Lessee's payment may be determined by the Lessor by means
of sub - metering, prorating utility costs, or other methods of determining Lessee's utility
consumption.
SECTION 24
ACCOUNTING PROCEDURES; AUDIT
24.1 Accounting Procedures. Lessee covenants and agrees that it will establish and maintain
an accounting system (specifically including all books of account and records
customarily used in the type of operation permitted by this Agreement) in full and
complete accordance with generally accepted accounting principles and otherwise
reasonably satisfactory to the Commission for the determination of any revenue
computations, which may be necessary or essential in carrying out the terms of this
Agreement. Lessee shall maintain its records relating to the operation permitted by this
Agreement for a period of at least three (3) years after the end of each Agreement year
(or until the close of any ongoing audit thereof being conducted by, or on behalf of the
Lessor); provided, however, that the Lessor may (prior to the expiration of the relevant
retention period) request that any such records be retained for a longer period of time, in
which case Lessee, at its option, may deliver such records into the custody of the Lessor.
24.2 Audit. Representative(s) designated by the Executive Director shall be allowed to
inspect and audit Lessee's books of accounts and records with reference to the
determination of any matters relevant to this Agreement at all reasonable times. The
Lessor's representative shall specifically be entitled to inspect and audit any records
The Hertz Corporation - Lease Agreement Page 19
necessary, in the auditor's professional discretion, to complete the audit consistent in a
manner consistent with generally accepted auditing standards; provided, however,
nothing herein shall authorize the Lessor to make any investigation into the expenses or
expense structure of Lessee except to the extent specifically necessary for the verification
of any exclusion from Gross Revenues. The costs of such audit shall be borne by the
Lessor unless the results of such audit reveal a discrepancy of more than three percent
(3 %) for any other amount for any twelve (12) month audit period. In the event of such
discrepancy, the full cost of the audit shall be borne by the Lessee, and Lessee shall
promptly pay all additional fees owing to the Lessor together with interest on such sums
from the date originally due until the date paid at the Default Rate.
24.3 In the event that Lessee's books or accounts are not maintained in Augusta - Richmond
County, they shall be made available for audit locally within twenty (20) business days of
a request by the Lessor, or Lessee shall pay in full any travel and related expenses of
Lessor representative(s) to travel to the location outside Augusta Richmond County.
24.4 In those situations where Lessee's records have been generated from computerized data
(whether mainframe, minicomputer, or PC -based computer systems), Lessee agrees to
provide the Lessor representative with extracts of data files in a computer readable format
on data disks, electronic mail with attached files or suitable alternative computer data
exchange formats. Lessee agrees to provide appropriate work space to conduct the audit
and free access to copiers; number of Lessee's accounting manager or the like who have
a thorough knowledge of the accounting system as it pertains to this Agreement and who
will assist the Lessor with its audit. Lessee will also allow interviews of past and present
employees who were or are involved in the financial or operational activities of Lessee.
SECTION 25
RECORDS TO BE MAINTAINED BY LESSEE
25.1 Lessee shall maintain a complete and accurate set of books and records on the business
conducted on its Leased Premises and same shall be open to inspection by the Aviation
Commission or its representative at any reasonable time so as to ascertain the true amount
of Lessee's Gross Revenue from its operation on the Airport.
25.2 Upon request of the Aviation Commission, Lessee shall furnish to the Aviation
Commission, within ten (10) days of such request, a statement indicating its total number
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of locally based vehicles available for rental at said Airport. The term "local" shall mean
the counties of Augusta - Richmond and Columbia, Georgia, and Aiken, South Carolina.
Lessee shall furnish the Aviation Commission, not later than the tenth (10th) day of the
succeeding month, a statement indicating its gross sales from the previous month. Lessee
shall provide a statement verifying monthly Gross Revenues, as previously reported by
Lessee to Aviation Commission. Said verification is to be compiled by a competent
accountant.
SECTION 26
VENDING MACHINES
Lessee shall not install or maintain vending machines, public pay telephones, or other
machines operated by coins, tokens, or credit cards in or at Lessee's Permitted Use Premises in
areas accessible to the public except with the prior written approval of the Executive Director.
This Section 26 shall not prohibit Lessee from the installation of self - ticketing or passenger
check -in machines, but the location and manner of such installation shall be subject to the prior
written approval of the Airport Director.
SECTION 27
COMPLIANCE WITH LAW
Lessee agrees that its operation at the Airport shall be conducted in conformity with all
local, State, and federal laws and all published Airport regulations and procedures. It is further
agreed that the Airport Director, acting on behalf of the Lessor, shall be, at all times, in full and
complete charge of the Airport in its entirety and his directions as to policy and procedures shall
be final and conclusive as regarding Lessee. Lessee understands that all operations, uses and
occupancy of the Premises must be in strict compliance with all TSA, FAA, Airport Rules and
Regulations, grant requirements, and related provisions for Airport use and operations without
restrictions or limitations. Lessee further agrees that, in the event there is a question of
interpretation, it will comply with the Lessor's interpretation of such requirements, rules, laws
and regulations, as and when notified by the Lessor of its interpretation, time being of the
essence. This provision supersedes any other provision of this Lease which may be in conflict
therewith. Any default by Lessee shall permit the Lessor to immediately terminate the Lease as a
non - exclusive remedy.
The Hertz Corporation - Lease Agreement Page 21
SECTION 28
DEFAULT AND TERMINATION
28.1 At any time that Lessee is not in default in its payments or other obligations to Lessor
hereunder, Lessee may terminate this Lease and terminate all of its future obligations
hereunder by giving Lessor sixty (60) days advance written notice after the default by
Lessor in the performance of any covenant or agreement herein required to be performed
by Lessor and the failure of the Lessor to remedy such default for a period of thirty (30)
days after receipt from Lessee of written notice to remedy the same. Rents, fees, and
charges due hereunder shall be payable only to the date of said termination by Lessee.
28.2 Lessor may terminate this lease for any Event of Default, for its convenience or as set
forth below.
28.3 Events of Default: The following shall be "Events of Default" under this Lease
constituting a material breach of the Lease and the terms "Events of Default" and
"default" shall mean any one of the following events:
28.3.1 If the Leased Premises are vacated or abandoned by the Lessee for a period of
thirty (30) days or more.
28.3.2 If Lessee uses the Leased Premises for unlawful or unauthorized purposes
and /or fails to comply with or observe any statute, law, ordinance, rule,
regulation, standard or requirement of the Lessor, any federal, state or local
governmental entity with respect to Lessee's occupancy and /or use of the
Premises.
28.3.3 If Lessee fails to obtain, pay for, and maintain in full force and effect at all
times during the life of this Lease, without any lapse in coverage, such
insurance as is required of Lessee herein.
28.3.4 If Lessee fails to make any payment rents or any other required payment and
when due hereunder, where such failure shall continue for a period of three (3)
days following service of notice thereof upon Lessee by Lessor.
28.3.5 If Lessee uses or permits the use of its Leased Premises at any time for any
purpose which at that time is not authorized by this Lease. Upon the occurrence
of any material default and breach of this Lease by Lessee, Lessor may then
immediately, or at any time thereafter, terminate this Lease by service of a ten
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(10) days advance written notice to such effect upon Lessee and this Lease shall
terminate at 11:59:59 p.m. on the termination date specified within such notice.
28.3.6 Following termination of this Lease Agreement by Lessor pursuant to the
provisions of this Article, without prejudice to other remedies Lessor may have
by reason of Lessee's default and breach and /or by reason of such termination,
Lessor may: (1) Reenter the Leased Premises upon voluntary surrender thereof
by Lessee; (2) Remove Lessee and /or any other persons and /or entities
occupying the Leased Premises there from, and remove all personal property
there from; and (3) Repossess the Leased Premises or relet the Leased Premises
or any part thereof
28.3.7 The failure by Lessee to make any payment of rent, fees or any other payment
required by this Lease Agreement or the Lease, when due.
28.3.8 The failure by Lessee to observe or perform any covenant, condition, or
agreement to be observed or performed by Lessee in this Lease.
28.3.9 The failure by Lessee to observe or perform any covenant, condition, or
agreement to be observed or performed by Lessee in the Lease between the
Lessee and the Executive Director.
28.3.10 The filing by Lessee of a petition in bankruptcy, Lessee being adjudged
bankrupt or insolvent by any court, a receiver of the property of Lessee being
appointed in any proceeding brought by or against Lessee, Lessee making an
assignment for the benefit of creditors, or any proceeding being commenced to
foreclose any mortgage or other lien on Lessee's interest in the Premises or on
any personal property kept or maintained on the Premises by Lessee.
SECTION 29
REMEDIES
29.1 In addition to, and not in lieu or to the exclusion of, any other remedies provided in the
Lease or to any other remedies available to the Lessor at law or in equity, whenever any
default (other than a default under Section 28 , above, upon which termination of this
Lease shall, at the Lessor's option, be effective immediately without further notice)
continues to be un- remedied in whole or in part for thirty (30) days after Notice of
Default is provided by the Lessor to Lessee (or for fifteen (15) days after Notice of
Default in the case of default for failure to pay any rent, fees or other required payment
The Hertz Corporation - Lease Agreement Page 23
under Sections 11 and 18 or when due). This Lease and all of Lessee's rights under it will
automatically terminate if the Notice of Default so provides. Upon termination, the
Lessor may reenter the Leased Premises using such force as may be necessary and
remove all persons and Property from the Leased Premises. The Lessor will be entitled
to recover from Lessee all unpaid Rent, Concession fees, unremitted Customer Facility
Charges, and other sum or charge otherwise payable by Lessee, or any other payments
and damages incurred because of Lessee's default including, but not limited to, the
reasonable and necessary costs of re- letting, including any tenant improvements
reasonably required, any leasing commissions reasonably required, and attorney's fees
and costs reasonably required ( "Termination Damages ") together with interest on all
Termination Damages at the Default Rate, from the date such termination Damages are
incurred by the Lessor until paid.
29.2 In addition to Termination Damages, and notwithstanding termination and reentry,
Lessee's liability for all Rental Concession Fees, other sum or charge otherwise payable
by Lessee, or other charges which, but for termination of this Lease, would have become
due over the remainder of the Lease Term ( "Future Charges ") will not be extinguished
and Lessee agrees that the Lessor will be entitled, upon termination for default, to collect
as additional damages, a Rental Deficiency. "Rental Deficiency" means, at the Lessor's
election, either:
29.2.1 An amount equal to Future Charges, less the amount of actual rent and fees, if an,
which the Lessor received during the remainder of the Lease Term from others to
whom the Premises may be rented, in which case such Rental Deficiency will be
computed and payable at the Lessor's Option either:
a. In an accelerated lump -sum payment discounted to present worth, or
b. In monthly installments, in advance, on the first day of each calendar
month following termination of this Lease Agreement and continuing until
the date on which the Lease Term would have expired but for such
termination, and any suit or action brought to collect any portion of Rental
Deficiency attributable to any particular month or months, shall not in any
manner prejudice the Lessor's right to collect any portion of Rental
Deficiency by a similar proceeding; or
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c. An amount equal to Future Charges less the aggregate fair rental value of
the Premises over the remaining Lease Term, reduced to present worth. In
this case, the Rental Deficiency must be paid to the Lessor in one lump
sum, on demand, and will bear interest at the Default Rate until paid. For
purposes of this subsection, "Present worth" is computed by applying a
discount rate equal to one percentage point above the discount rate then in
effect at the "Federal Reserve Bank in, or closest to, Augusta, Georgia.
29.3 If this Lease is terminated for default as provided in this Lease, the Lessor shall use
reasonable efforts to re -let the Premises in whole or in part, along or together with other
premises, for such term or terms (which may be greater or less than the period which
otherwise would have constituted the balance of the Lease Term), for such use or uses
and, otherwise on such terms and conditions as the Lessor will not be liable for, nor will
Lessee's obligations under this Lease be diminished by reason for any failure by the
Lessor to re -let the Premises or any failures by the Lessor to collect any rent due upon
such re- letting. Notwithstanding the foregoing, the Lessor and the Lessee agree that in the
event that this Lease is terminated for default, the Lessor must prior to leasing the
Premises subject to this Lease to anyone other than a rental car company first make
reasonable efforts to relet the premises to one or more rental car companies. In the event
that the Lessor is unable to relet the Premise to one or more rental car companies, the
Lessor may then lease the Premises to any other person; provided, however, the Premises
may not be used for purposes of providing shuttle, limousine or other ground
transportation service in competition with the rental car industry.
29.4 If upon any reentry permitted under this Lease, there remains any personal property upon
the Premises, the Lessor, in its sole discretion, may remove and store the personal
property for the account and at the expense of Lessee. In the event the Lessor chooses to
remove and store such property, it shall take reasonable steps to notify Lessee of the
Lessor's action. All risks associated with removal and storage shall be on Lessee.
Lessee shall reimburse the Lessor for all expenses incurred in connection with removal
and storage as a condition to regaining possession of the personal property.
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SECTION 30
NON - WAIVER OF RIGHTS
Should Lessee breach any of its obligations hereunder, the Lessor may thereafter accept
from Lessee any payment or payments due hereunder, and continue this Lease in effect, without
in any way waiving the Lessor's right to exercise its default rights hereunder, or any other
remedies provided by law, for said breach. In addition, any waiver by the Lessor of any default,
breach, or omission of Lessee under this Lease shall not be construed as a Waiver of any
subsequent or different default, breach, or omission.
SECTION 31
SURRENDER AND HOLDING OVER
31.1 Surrender. Upon expiration or earlier termination of this Lease, Lessee shall promptly
quit and surrender the Premises in good condition and repair; normal wear and tear
excepted and deliver to the Lessor all keys that it may have to any part of the Premises or
Airport. Unless otherwise specifically agreed by the Lessor in writing, Lessee shall
diligently complete such removal at or before the termination (including by expiration) of
this Lease. Lessee shall, at its sole cost and expense, further remove the following from
the Premises:
31.1.1 All of Lessee's equipment and trade fixtures;
31.1.2 All of Lessee's signs, including but not limited to company identifiers,
operational signs, illuminated directional signs, rental /return signs and stall
numbers, and back wall displays;
31.1.3 All control booths, kiosks and security devices for the benefit of Lessee, whether
installed by Lessee, other Lessees or the predecessor -in- interest of either.
31.1.4 Lessee's computer and other electrical equipment;
31.1.5 Lessee's telephone /data communication lines and associated equipment; and
31.1.6 Any improvements, whether installed at the commencement of the Lease Term or
subsequently for which the Lessor's consent was conditioned on Lessee's removal
of such improvements at the expiration or earlier termination of this Lease.
31.2 Holding Over. If the premises are not surrendered as provided in this Section, Lessee
shall indemnify and hold the Lessor harmless against less or liability resulting from the
delay by Lessee in so surrendering the Premises, including, without limitations, any
The Hertz Corporation - Lease Agreement Page 26
claims made by any succeeding occupant founded on such delay. Any holding over with
the consent of the Lessor after expiration or earlier termination of this Lease shall be
construed to be a tenancy from month -to -month upon the same terms and conditions
provided in this Lease. Any holding over without the consent of the Lessor after
expiration or earlier termination of this Lease shall be construed to be tenancy at
sufferance upon the same terms and conditions provided in the Lease, except that the rent
shall each be one hundred twenty five percent (125 %) of that which it was immediately
prior to expiration or earlier termination of this Lease.
SECTION 32
ASSIGNMENT
32.1 Lessee may not, without the prior written consent of the Lessor endorsed hereon, assign
this Lease or any interest hereunder, or sublet the Leased Premises or any part thereof, or
permit the use of the Leased Premises by any party other than Lessee. Consent to one
such assignment or sublease shall not destroy or waiver this provision, and all later
assignments and subleases shall likewise be made only upon the prior written consent of
the Lessor.
32.2 Subtenants or assignees shall become liable directly to the Lessor for all obligations of
Lessee hereunto, without relieving Lessee's liability.
32.3 It is expressly understood that Lessee shall not sell or otherwise change ownership of its
concession business or permit representation by any person or persons other than Lessee
without the prior written approval of the Lessor.
SECTION 33
DAMAGE OR DESTRUCTION OF DEMISED PREMISES
If the Leased Premises are totally destroyed (or so substantially damaged as to be un-
tenantable) by storm, fire, earthquake, or other casualty, this Lease shall terminate as of the date
of such destruction or substantial damage, and rent shall be considered accounted for as between
the parties hereunto as of that date.
The Hertz Corporation - Lease Agreement Page 27
SECTION 34
INSURANCE
34.1 Lessee agrees to carry and maintain in force at all times during the Term of this Lease, at
Lessee's sole expense, the insurance described in herein below.
34.2 Lessee acknowledges that the Lessor has and reserves, the right to amend the insurance
requirements imposed by this Lease at any time, provided that any such amendment is
not unreasonable.
34.3 Lessee understands and agrees that the minimum limits of the insurance required herein
may become inadequate during the term of this Lease and that, if it in any way, directly
or indirectly, contingently or otherwise, affects or might affect the Airport or Lessor, as
determined in the sole but reasonable discretion of the Airport Director, Lessee will
increase such minimum limits by reasonable amounts on written request of the Airport
Director, with the concurrence of the Augusta - Richmond County Risk Manager. No such
amendment shall reduce the coverage amounts lower than as stated in this Lease.
34.4 Within (30) days of the publication by the Airport of any such modifications to the
foregoing insurance requirements, Lessee shall deliver to the Airport insurance
certificates certifying compliance with such modified coverage(s).
34.5 No written amendment of this Lease shall be required to effectuate said increases in
minimum limits.
34.6 All insurance required hereunder shall be by companies holding a "General Policyholders
Rating" of A or better as set forth in the most current issue of "Best's Insurance Guide"
and shall be issued a company licensed, qualified and authorized to transact business in
the State of Georgia.
34.7 Any self - insured retention or deductible on any insurance coverage required shall be
declared by Lessee and approved by the Airport.
34.8 Lessee acknowledges that the Lessor is not responsible for the costs of its insurance
premiums.
34.9 The insurance policies for coverage listed in this Section shall contain a provision that
written notice of cancellation or any material change in policy by the insurer shall be
delivered to the Airport no less than thirty (30) days prior to cancellation or change.
34.10 Proof of Insurance. Lessee shall provide the Airport with an annual Certificate of
Insurance on all required insurance prior to Lessee's exercise of any privileges provided
The Hertz Corporation - Lease Agreement Page 28
by this Lease and annually upon the effective date thereafter within thirty (30) days of
execution of this Lease. Lessee shall furnish additional Certificates of Insurance, from
time to time, upon specific request of the Airport.
34.11 The Augusta Richmond County Commissioners, the Augusta Aviation Commission, and
their officers, agents, elected and appointed officials, representatives, volunteers, and
employees shall be named as "Additional Insureds" on all required coverage and also
shown on the certificate as such.
34.12 General Liability Insurance. General liability insurance with a combined single limit
of not less than $ 1,000,000 covering Lessee's operations on Airport premises. The
foregoing insurance shall be endorsed to state that it will be primary to Airport's
insurance and that the Lessee waives its right of subrogation against the Aviation
Commission, Augusta - Richmond County, and their officers, agents, elected and
appointed officials, representatives, volunteers, and employees. The Aviation
Commission, Augusta - Richmond County and their employees, officers, agents, elected
and appointed officials shall be added as additional insureds on said policies. Said
policy shall contain Severability of Interest Clause and Contractual Liability coverage at
least as broad as that given in the most current CG 00 01 ISO form.
34.13 Workers' Compensation Insurance. Lessee shall provide Workers' Compensation
insurance with statutory limits and employers liability with a limit of $1,000,000 for
employees and subcontractors with limits of liability of not less than One Million Dollars
($1,000,000.00) for each accident /disease. Such policy (ies) shall be endorsed to state
that the Workers' Compensation carrier waives its right of subrogation against the
Aviation Commission, Augusta - Richmond County, and their officers, agents, elected and
appointed officials, representatives, volunteers, and employees.
34.14 Automobile Liability Insurance. Lessee shall provide Automobile Liability with a
combined single limit of not less than $1,000,000 coverage to include hired and non -
owned liability. The foregoing insurance shall be endorsed to state that it will be primary
to Airport's insurance and that the carrier waives its right of subrogation against the
Aviation Commission and Augusta - Richmond County, and their officers, agents, elected
and appointed officials, representatives, volunteers, and employees. The Aviation
Commission and Augusta- Richmond County, and their employees, officers, agents,
elected and appointed officials shall be added as additional insureds on said policies.
The Hertz Corporation - Lease Agreement Page 29
Said policy shall contain Severability of Interest Clause and Contractual Liability
coverage at least as broad as that given in the most current CA 00 01 ISO form.
34.15 Worker's Compensation Insurance - With employer's liability coverage of at least
$1,000,000 each accident, $1,000,000 each employee and a $1,000,000 disease policy
limit. The foregoing insurance shall be endorsed to state that that the workers'
compensation carrier waives its right of subrogation against the Augusta, Georgia Board
of Commissioners, their officers, agents, elected and appointed officials, representatives,
volunteers, and employees, the Aviation Commission and the Airport.
34.16 Property Insurance To insure Lessee against loss or damage to the existing structure
and any improvements due to fire, lightning and all other perils included in standard
extended coverage policies, plus vandalism and malicious mischief coverage, all in
amounts of not less than ninety percent (90 %) of replacement value. Upon request by the
Aviation Commission, such replacement value shall be determined by a qualified
appraiser, a copy of whose findings shall be submitted to the Risk Manager, and
thereafter, proper adjustment in the limits of insurance coverage shall be effected. Said
property need not be maintained by Lessee, if Lessee is renting or leasing improvement
and Lessee's Lessee maintains the required insurance. The foregoing insurance shall be
endorsed to state that the carrier waives its right of subrogation against Augusta, Georgia,
the Aviation Commission, the Airport, and their officers, agents, elected and appointed
officials, representatives, volunteers, and employees. Augusta, GA and the Aviation
Commission shall be named as loss payees on any Property coverage. Said policy shall
contain a Severability of Interest clause.
34.17 An insurance binder letter or a Certificate of Insurance must be sent to:
City of Augusta
Risk Manager
530 Greene Street
Room 217
Augusta, Ga. 30901
(706) 821 -2502 (Fax)
34.18 Loss Control and Safety. Lessee shall retain control over its employees, agents, servants
and subcontractors, as well as control over its invitees, and its activities on and about the
premises and the manner in which such activities shall be undertaken and to that end,
Lessee shall not be deemed to be an agent of the Aviation Commission or Lessor.
Precaution shall be exercised at all times by Lessee for the protection of all persons,
The Hertz Corporation - Lease Agreement Page 30
including employees and property. Lessee shall make special effort to detect hazards and
shall take prompt action where loss control /safety measure should reasonably be
expected.
SECTION 35
INDEMNIFICATION AND HOLD HARMLESS
35.1 Lessee agrees to indemnify and hold harmless the Lessor and the Augusta Aviation
Commission, and their members, officers, elected officials, agents, servants, employees
and successors in office against all claims, damages, losses and expenses, including but
not limited to attorney's fees, and expenses of litigation incurred by Airport in connection
therewith related to or arising out of any damage or injury to property or persons,
occurring or allegedly occurring in, on or about Airport property caused by any negligent
act or omission of Lessee or which arise out of any failure of Lessee to perform its
obligations hereunder during the period from the date of this Lease to the end of the
Lease Term or Lessee's operations under this Lease.
35.2 Lessee shall keep, defend and hold harmless the Lessor and the Augusta Aviation
Commission, and their members, officers, elected officials, agents, servants, employees
successors in office, guests, licensees and invitees from and against any and all claims,
demands, suits, judgments, costs and expenses asserted by any person or persons,
including agents or employees of Lessee, by reason of death or injury to persons or loss
or damage to property, resulting from Lessee's operations or activities on the Airport, or
anything done or omitted by Lessee under this Lease except to the extent that such
claims, demands, suits, judgment, costs and expenses may be directly attributed to the
sole negligence of the Airport or its agents, employees, directors, or officers.
35.3 In the event of a conflict between the provisions of the Augusta Georgia Code and this
Lease the more stringent requirements shall govern.
SECTION 36
FEDERAL GOVERNMENT'S EMERGENCY CLAUSE
It is understood that, during time of war or national emergency, the Lessor shall have the
right to lease any and all of the herein described Leased Premises to the United States
Government for military use, and if any such lease is executed, the provisions of this instrument
insofar as they are inconsistent with the lease of the Government shall be suspended.
The Hertz Corporation - Lease Agreement Page 31
SECTION 37
SECURITY
Lessee, its officers, employees, agents, and those under its control, shall comply with
security measures required of Lessor or the Aviation Commission by the FAA, TSA, or U. S.
Department of Transportation, or contained in any Airport master security plan approved by the
TSA, to include an Airport Tenant Security Program as outlined in 49 CFR Part 1542 regarding
Lessee's Lease. If Lessee, its officers, employees, agents, or those under its control shall fail or
refuse to comply with said measures and such noncompliance results in a monetary penalty being
assessed against the Lessor, then Lessee shall be responsible and shall reimburse the Lessor in
the full amount of any such monetary penalty or other damages, including attorney's fees and
other costs to defend the Lessor against such claims.
SECTION 38
NON - DISCRIMINATION
38.1 Lessee shall furnish its accommodations and /or services on a fair, equal and not unjustly
discriminatory basis to all users thereof and it shall charge fair, reasonable, and non-
discriminatory prices for each unit or service, provided that Lessee may be allowed to
make reasonable and non - discriminatory discounts, rebates, or other similar type of price
reductions to volume purchasers.
38.2 Lessee shall make its accommodations and /or services available to the public on fair and
reasonable terms without discrimination on the basis of race, creed, color, sex, sexual
orientation, age, national origin, or disability.
38.3 Non - compliance with the above paragraphs, after written findings, shall constitute a
material breach thereof and in the event of such non - compliance, the Lessor shall have
the right to terminate this Lease or at the election of the Lessor and /or the Commission or
the United States, either or both said governments shall have the right to judicially
enforce the above paragraphs.
38.4 Lessee assures that it will undertake an affirmative action program to ensure that no
person shall on the grounds of race, creed, color, national origin, sex, or disability be
excluded from participating in any employment activities covered in 49 C.F.R. Part 29,
Subpart E, and /or 29 C.F.R. Part 21. Lessee assures that no person shall be excluded on
these grounds from participating in or receiving the services or benefits of any program
or activity covered by this subpart. Lessee assures that it will require that its covered
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sub - organization provide assurances to Lessee that they similarly will undertake
affirmative action programs and that they will require assurances from their sub -
organizations, as required by the aforesaid regulations, to the same effect.
38.5 Lessee will maintain open hiring and employment practices and will accept applications
for employment in all positions from all qualified individuals.
38.6 Lessee will provide to the Lessor any information needed in the preparation of reports or
documents and other data relative to equal employment.
38.7 Lessee shall include similar clauses in any subcontracts and shall cause such
subcontractors to include these clauses in any contract related to the provision of services.
SECTION 39
AIRPORT CONCESSION DISADVANTAGED BUSINESS ENTERPRISES
39.1 Certification Required. The Lessor does not operate a DBE, MBE or WBE Program for
Augusta funded projects, as a Federal Court has entered an Order enjoining the Race -
Based portion of Augusta's DBE Program. Instead the Lessor operates a Local Small
Business Opportunity Program. However, for various projects utilizing the expenditure
of State or Federal funds, the Lessor enforces DBE requirements and /or DBE goals set by
the Federal and /or State Agencies in accordance with State and Federal laws. It is the
policy of the Lessor to support participation in the Airport Concession Disadvantaged
Business Enterprises (ACDBE), as defined in 49 CFR Part 23, in concession activities at
the Airport. This Agreement is subject to the provisions of 49 CFR Part 23 as applicable.
39.2 Program. The Airport has established an Airport Concession Disadvantaged Business
Enterprise (ACDBE) program in accordance with regulations of the U.S. Department of
Transportation (DOT), 49 CFR Part 23. The Airport is a primary airport and has received
federal funds authorized for airport development after January 1988 (authorized under
Title 49 of the United States Code); and has executed airport grant assurances that it will
comply with 49 CFR Part 23. It is the policy of the Airport to ensure that ACDBEs as
defined in Part 23, have an equal opportunity to receive and participate in concession
opportunities. It is also our policy:
39.2.1. To ensure nondiscrimination in the award and administration of opportunities for
concessions by airports receiving DOT financial assistance;
39.2.2. To create a level playing field on which ACDBEs can compete fairly for
opportunities for concessions;
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39.2.3. To ensure that our ACDBE program is narrowly tailored in accordance with
applicable law;
39.2.4. To ensure that only firms that fully meet this part's eligibility standards are
permitted to participate as ACDBEs at our airport(s);
39.2.5. To help remove barriers to the participation of ACDBEs in opportunities for
concessions at the Airport; and
39.2.6. To provide appropriate flexibility to our Airport in establishing and providing
opportunities for ACDBEs.
39.3 Contact. The Lessor, on behalf of the Airport, has appointed Brenda Brown, Augusta
Regional Airport, 1501 Aviation Way, Augusta Georgia 30906 Telephone: (706) 798-
3236; E -mail: bbrown @augustaga.gov as the Airport Lessees DBE Liaison Officer
(ACDBELO). In that capacity, Ms. Brown is responsible for implementing all aspects of
the DBE program. Implementation of the ACDBE program is accorded the same priority
as compliance with all other legal obligations incurred by the Airport in its financial
assistance agreements with the Department of Transportation.
39.4 Opportunities for Participation. It is the policy of the Lessor to ensure that ACDBE, as
defined in 49 CFR Part 23 and other small businesses have an equal opportunity to
receive and participate in Department of Transportation (DOT) assisted contracts. The
Lessor encourages the Lessee to make every reasonable effort to maximize contracting
opportunities for ACDBE and other small businesses in any construction or architectural
changes to the premises and in the procurement of goods and services necessary for the
operation of the Rental Car Concession at this Airport.
39.5 Reports: Lessee shall submit ACDBE participation reports to the Lessor as required for
the purpose of demonstrating compliance with 49 CFR Part 23. An ACDBE concession
specific goal of three percent (3 %) of total gross receipts for concessions has been
established for this Agreement. Each Lessee shall make good faith efforts, as defined in
Appendix A, 49 CFR Part 26, to meet the concession specific goal for ACDBE
participation in the performance of this Agreement. The Lessee will be required to
submit the following information:
39.5.1 names and addresses of ACDBE firms and suppliers that will participate in the
concession;
39.5.2 A description of the work that each ACDBE will perform;
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39.5.3 the dollar amount of the participation of each ACDBE firm participating;
39.5.4 written and signed documentation of commitment to use an ACDBE whose
participation it submits to meet a contract goal;
39.5.5 written and signed confirmation from the ACDBE that it is participating in the
concession as provided in the prime Lessee's commitment;
39.5.6 If the concession goal is not met, evidence of good faith efforts.
39.6 Non - Discrimination in Contracts. The Lessor encourages Lessee to create and maintain
a diverse workforce, contractor and supplier base. The Lessee shall not create barriers to
open and fair opportunities for minority business enterprises (MBE), women's business
enterprises (WBE), small business enterprises (SBE) and disadvantaged business
enterprises (DBE) to participate in all rental car contracts at the Lessor and to obtain or
compete for contracts and subcontracts as sources of supplies, equipment, construction
and services. In considering offers from and doing business with contractors and
suppliers, the Lessee shall not discriminate on the basis of race, color, creed, religion,
sex, age, disability, nationality, marital status, sexual orientation or disability. These
requirements apply to all concessions firms and suppliers, including those who qualify as
an Airport Concessions Disadvantaged Business Enterprise (ACDBE).
SECTION 40
DAMAGE TO AIRPORT
Lessee shall be liable for any damage to the Airport caused by Lessee, officers, agents,
employees, contractors, subcontractors, or any one acting under it direction and control, ordinary
wear and tear excepted. All repairs for which Lessee is liable shall be made by Lessor at
Lessee's expense.
SECTION 41
NOTICES
All notices by either party to the other shall be made by depositing such notice in the registered
or certified mail, of the United States of America, postage prepaid, and such notice shall be
deemed to have been delivered and received on the date of such depositing correctly addressed in
the registered or certified mail.
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All notices to the Lessor shall be mailed to:
Augusta Aviation Commission
Attn: Executive Director
1501 Aviation Way
Augusta, GA 30906
With a copy to:
All notices to Lessee shall be mailed to:
Augusta Law Department
501 Greene St.
Suite 302
Augusta, GA 30901
The Hertz Corporation
225 Brae Boulevard
Park Ridge, NJ 07656
Attn: Staff Vice President,
Real Estate and Concessions
Either party may change the address and name of addressee to which subsequent notices are to
be sent by notice to the other given as aforesaid.
SECTION 42
LIENS
Lessee shall cause to be removed promptly any and all liens of any nature arising out of
or because of any improvements made or construction performed by Lessee or any of its
contractors or subcontractors upon the Airport or arising out of or because of the performance of
any work or labor by or for it or them at said premises, reserving the right to contest in court the
validity of any such liens. Lessee shall have the right to post an appropriate bond to cover its
obligations pursuant to this Section. If any person or corporation attempts to assert a Mechanic's
Lien against the Airport for improvements made by Lessee, Lessee shall hold the Lessor
harmless from such claim, including the cost of defense.
SECTION 43
RULES AND REGULATIONS
43.1 Lessee shall comply with and shall require its officers and employees and any other
persons over whom it has direct control to comply with such Rules and Regulations
governing the use of Airport facilities and the access to said facilities pursuant to this
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Lease and Lessor's ordinances which may govern said use and access of the Airport
facilities, as may be amended from time to time by the Aviation Commission.
43.2 Lessee shall not use or permit to be used any Airport facilities for any purposes or uses
other than those specifically authorized by this Lease, and such other purposes or uses as
may be mutually agreed upon in writing.
43.3 Lessee shall comply with and shall require its officers and employees and any other
persons over whom it has control to comply with such reasonable and nondiscriminatory
Rules and Regulations governing the use of Airport facilities pursuant to this Lease as
may from time to time be adopted and promulgated by the Lessor or the Aviation
Commission, including, but not limited to, security, health, safety, environmental
concern, sanitation, and good order, and with such amendments, revisions, or extensions
thereof as may from time to time be adopted and promulgated by the Aviation
Commission. The Airport Director will provide a copy of the initial Rules and
Regulations to Lessee within thirty (30) days of the date of this Agreement.
43.4 Lessee's right of access to the Airport shall be subject to security considerations and all
federal, State, and local laws or regulations and all Airport rules, regulations, and
ordinances now in effect or hereinafter adopted or promulgated.
43.5 Lessee shall, at all times, comply with any and all present and future laws, ordinances,
and general rules or regulations of any public or governmental entity pertaining to its
operations at the Airport now or at any time during the term that this Agreement is in
force.
SECTION 44
SURVIVAL
Lessee's obligations under this Article shall survive the expiration or earlier termination
of this Lease Agreement. No modification, termination or surrender to the Lessor of this Lease
Agreement or surrender of the Premises or any part thereof, or of any interest therein by Lessee,
shall be valid or effective unless agreed to and accepted in writing by the Lessor, and no act by
any representative or agent of the Lessor, other than such written agreement and acceptance,
shall constitute an acceptance thereof.
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SECTION 45
ENTIRE AGREEMENT
This Agreement contains the entire agreement of the parties and no representation, inducements,
promises, or agreement, oral or otherwise, between the parties not embodied herein shall be of
any force or effect. No failure of the Lessor to exercise any power at variance with the terms
hereof shall constitute a waiver of the Lessor's right to demand exact compliance with the terms
hereof.
SECTION 46
GOVERNING LAW
This Agreement and all disputes arising hereunder shall be governed by the laws of the
State of Georgia.
SECTION 47
VENUE
All claims, disputes, and other matters in question between the Lessor and Lessee arising
out of or relating to this Agreement, or the breach hereof, shall be decided in the Superior Court
of Richmond County, Georgia. Lessee, by executing this Lease, specifically consents to
jurisdiction and venue in Augusta - Richmond County and waives any right to contest jurisdiction
and venue in the Superior Court of Richmond County, Georgia or the United States District
Court for the Southern District of Georgia, Augusta Division.
SECTION 48
ATTORNEY'S FEES
If the Lessor is reasonably required to obtain counsel to enforce any of its rights under
this Agreement or to collect its fees and charges, the Commission shall be entitled to recover
from Lessee reasonable attorney's fees incurred by it in connection with such proceedings.
SECTION 49
MISCELLANEOUS PROVISIONS
49.1 No purported or alleged waiver of any of the provisions of this Lease shall be valid or
effective unless in writing signed by the party against whom it is sought to be enforced.
49.2 Captions herein are for convenience or reference only and in no way define, limit or
expand the scope or intent of this Lease. Whenever the context hereof shall so require,
the singular shall include the plural, the male gender shall include the female, and vice
versa.
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49.3 Counterparts. This Lease may be executed in two or more counterparts, all of which
together shall constitute but one and the same Lease. In the event that one or more of the
provisions hereof shall be held to be illegal, invalid or enforceable, such provisions shall
be deemed severable and the remaining provisions hereof shall continue in full force and
effect.
49.4 Nothing contained in this Lease shall be construed to be a waiver of the Lessor's
sovereign immunity.
49.5 It is specifically agreed between the parties executing this Lease that it is not intended by
any of the provisions of this Lease to create in the public or any member thereof, third
party beneficiary status in connection with the performance of the obligations herein.
49.6 Nothing contained in this Lease shall be construed to be a waiver of any individual's
qualified good faith immunity.
49.7. Covenants Bind and Benefit Successors and Assigns. The provisions of this Lease shall
be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns; provided, however, that no one shall have any benefit
or acquire any rights under this Lease pursuant to any conveyance, transfer, or
assignment in violation of any of its provisions.
49.8 Open Records. The Lessee acknowledges that all records relating to this Lease and the
services to be provided under this Lease may be a public record subject to Georgia's
Open Records Act (O.C.G.A. § 50- 18 -70, et seq.). Lessee shall cooperate fully in
responding to such request and making all records, not exempt, available for inspection
and copying as provided by law. Lessee shall notify Lessor immediately of any request
made under the Open Records Act and shall furnish Lessor with a copy of the request and
the response to such request.
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Approve
By:
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first above written.
Augusta, Georgia
By:
AO Mayor
"7f 6
Atte t:
The Hertz C
Lena Bonner,
City Clerk
Date: 1 7 / /i 7
By:
Name: : imon Ellis
ation
Title: Staff Vice P esident, Real Estate and Concessions
Date: /d3 /Z
to content:
Gary eTellier, • irport Director
Approved as to fprm:
By:
Andrew Mackenzie, Ge eral Counsel
Date: WOO 2
•
0
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Augusta Aviati
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ertz Corporation - Lease AgCeement
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Exhibit B
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Exhibit C
The Hertz Corporation - Lease Agreement Page 43