### SCHEDULE A Respondent Horry County Department ofAirports ("HCDA") hereby answers the factual allegations in the Part 16 Formal Complaint and supplemental Statement ofMaterial Facts of Complainant Skydive Myrtle Beach, Inc. ("SDMB") as follows: STATEMENT OF FACTS (from Part 16 Formal Complaint) 

### I. In

### April 2012, SDMB negotiated a lease with Ramp 66, LLC for Hangar 7 at the GSA in North Myrtle Beach, SC and was granted exclusive rights to conductparachute operations at CRE for a period ofeight (8) years. Answer: 

### HCDA denies that SDMB has the exclusive right to conduct parachute operations at CRE (erroneously referred to as GSA). Answering further, HCDA states that there is a May 10, 2012 letter agreement between SDMB and Grand Strand Aviation, Inc. dba Ramp66 for SDMB "to provide tandem parachutejumps from the Grand Strand Airport." HCDA-OOOOOI. This agreement expired when HCDA took over CRE operations from Ramp66 in August 2013, at which time SDMB executed both an Operating Agreement and a Space Use Permit with HCDA. 

### See HCDA-000003-000017. HCDA is without information or knowledge sufficient to form a belief as to the truth of the remaining allegations in this paragraph, and on that basis denies the same. 2. On May 11, 2012, a Letter ofAgreement (LOA) was signed by SDMB, HCDA, Myrtle Beach Air Traffic Control Tower (MYR) and CRE for conducting non-emergency parachute operations. 

### See Exhibit 2 at 19-21. Answer: 

### HCDA admits that a Letter of Agreement regarding "Non-emergency Parachute Operations at North Myrtle Beach, SC," effective May 11,2012, was entered into by HCDA, MYR, the Grand Strand Air Traffic Control Tower (the "CRE Tower", which at all relevant times has been operated by Robinson Aviation, Inc.), and SDMB. 3. On or about July 15, 2013, Ramp 66, LLC represented to SDMB that HCDA would require SDMB to enter into a Lease with HCDA with the same or similar term and rental cost provIsIOns. Answer: 

### HCDA is without information or knowledge sufficientto form a beliefas to the truth ofthe allegations inthis paragraph, and on that basis denies the same. 4. On August I, 2013, Ramp 66, LLC sold its leasehold interest to HCDA and HCDA resumed control ofGSA. Answer: 

### HCDA admits that it resumed control ofCRE on or about August 1,2013.

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### 5. In August 2013, HCDA infonned SDMB that it would have to double its liability of"slip and fall" policy coverage to $2,000,000 and pay $1,200 per month for Hangar 7 or HCDA would not pennit SDMB to operate its business on GSA property. See 

### Exhibit 1 at 14-16. HCDA represented to SDMB that these terms would be presented to Horry County Council during the six (6) monthtemporary period for a long-tenn lease. Answer: 

### HCDA admits that, uponresuming control ofCRE operations from Ramp66 in August 2013, all commercial aviation tenants were required to sign a Space Use Pennitto occupy premises at CRE. SDMB's Space Use Pennit included a monthly $1200 rent payment. HCDA-000004. SDMB also provided to HCDA a Certificate of Insurance dated September 6, 2013, with a $2,000,000 General Aggregate Limit ofLiability. 

### Id. at HCDA-OOOOIO. HCDA denies the remaining allegations inthis paragraph. 6. On October 15, 2013, CRE notified SDMB of a situation whereby a skydiver crossed a taxiway rather than staying on the grass as required by FAA regulations. See 

### Exhibit 1at 86. Answer: 

### HCDA admits that a skydiver from SDMB crossed an active taxiway on or about October 15, 2013. HCDA denies the remaining allegations in this paragraph, to the extent they mischaracterize the referenced document or describe it in a misleading way. 7. On October 27, 2013, a skydiver inadvertently landed on the taxiway adjacent to the landing area and was medivacked [sic

## 1 to the hospital. Infonnation requested from HCDA relating to this incident was not released to avoid a potential Health Infonnation Privacy Protection Act (HIPPA) and Privacy Act violation. See 

### Exhibit 1, at 99. Answer: 

### HCDA admits that on October 27,2013, a SDMB skydiver landed outside the designated landing zone and was medevac'd to a hospital, and that SDMB refused to disclose any infonnation about the incident to HCDA, citing the Health Insurance Portability and Accountability Act ("HIPAA"). The second sentence ofthis paragraph contains a legal conclusion to which no response is required, however, to the extent any response may be deemed necessary, HCDA denies that SDMB is a healthcare provider or other covered entity under HIPAA. 8. In October 2013, Sgt. Ortiz, a North Myrtle Beach, SC fire inspector, infonned SDMB that it needed to replace a blank panel in the electrical box, remove extension cords, and install electrical receptacles for its office equipment to avoid a fine or violation. SDMB requested HCDA, through its manager Tim Jackson, to correct the electrical deficiencies. In November, having heard nothing from HDCA relating to the electrical issues, SDMB repaired the defective receptacles and conduit with a licensed electrical engineer. Due to HCDAs [sic

## 1failure to correct the electrical deficiencies, SDMB was issued a fine for the violations by the North Myrtle Beach Fire Department and paid a $205 dollar fine to the city. See Exhibit 2, at 22-24.

4818-5357-1104.2 

### Answer: 

### HCDA admits that SDMB violated the local fire code. HCDA is without infonnation or knowledge sufficient to fonn a belief as to the truth of the remaining allegations in the first, third, and fourth sentences in this paragraph, and on that basis denies the same. With respect to the second sentence, HCDA admits that SDMB made a request to Tim Jackson for HCDA to perform electrical repairs at Hangar 7. HCDA
2

### denies that it had any obligation to make such repairs. SDMB's Space Use Permit (now expired, but in effect at the time) provided both that "Company [SDMB]
... shall be responsible for maintaining all non-structural elements" and "Company accepts the Space in its 'as-is' condition and County has no obligation to improve, repair, restore, or alter any portion ofthe Space." HCDA-OOOOOS. 9. On November 27,2013, via certified mail, return receipt requested, HCDA alleged that SDMB had an unrestrained dog roaming the "active areas" of the airport and had overnight guests in the Hangar in violation of unpublished HCDA policies that would result in the revocation ofSDMBs [sic] operating permit and space use permit, ifrepeated. See 

### Exhibit 2, at 27-28.Answer: 

### HCDA admits that it sent a letter dated November 27,2013 by certified mail to SDMB, regarding its concerns that SDMB had an umestrained dog on airport property, including in active aircraft operations areas, and that SDMB personnel were allegedly, regularly, residing overnight in Hangar 7. Compl. Ex. 2 at 27. The letter asked SDMB to "refrain from allowing pets to reside on Airport property as they are considered possible hazards to the public as well as vehicle and aircraft traffic on the Airport." The letter also stated that if personnel were residing overnight in Hangar 7, that practice "must also cease immediately." ld. 

### Finally, the letter stated: "Any violation or failure to comply will result in immediate revocation of your County Operating Permit and Space Use Agreement." ld. 

### HCDA denies the remaining allegations in this paragraph and any implicationthat HCDA acted in any way improperly. 10. On or about January 6, 2014, SDMB addressed HCDAs [sic] concerns and notified HCDA that the failure to respond to its letter was due to the fact that it's [sic] Manager, Tim Jackson had issued instructions to the FBO employees to refuse to accept any and all mail and parcels requiring signatures. See 

### Exhibit 1, at 109-110. Answer: 

### HCDA admits that SDMB sent a letter to HCDA dated January 6, 2014 in response to HCDA's November 27,2013 letter, and that SDMB's response made similar allegations to those in 

### this paragraph. Compl. Ex. 1 at 109-10. HCDA denies the allegations in this paragraph to the extent they imply that HCDA acted in any way improperly. 11. On January 21, 2014, CRE notified SDMB that it [sic] manager "feels" parachuting on GSA was unsafe and steps should be taleen to improve safety due to the HCDA mandated change ofparachute Landing Zone (LZ), barmer tow, and helicopter guide operations for the upcoming season. See 

### Exhibit 1, at 111.

4818-5357-1104.2 

### Answer: 

### HCDA admits that the CRE Tower sent an email dated January 21, 2014 to SDMB stating: "We are often havingjumpers land outside ofthe landing zone," and "1 feel that when the 'season' starts with banner tow and helicopter rides, its [sic] going to be unsafe to conduct both operations at the same time." Compl. Ex. 1 at 111. The email continued: "For now and in planning for the spring/summer, we will have to accomplish the parachuting activity by holding the aircraft while it takes place." ld. 

### HCDA denies that the email refers to any "HCDA mandated change ofparachute Landing Zone (LZ),
3

### banner tow, and helicopter guide operations for the upcoming season," and further denies that it mandated any such change. See id. 

### Answering further, HCDA states that the designated parachute landing zone at CRE was altered from approximately August 2013 to April 2014 to accommodate Phase I of its ramp repaving project. Finally, HCDA denies the allegations in this paragraph to the extent they imply that HCDA has any control over when and whether aircraft are held; these decisions are properly and independently made by the privately-operated CRE Tower. 12. On January 23, 2014, SDMB requested a meeting with CRE to address its safety concerns and discuss operations for the upcoming season. See 

### Exhibit at 113. In its answer, CRE indicated that HCDA should also be a party to the discussion. See 

### Exhibit 1, at 114. Answer: HCDA denies the allegations in this paragraph to the extent they imply that HCDA has any control over the privately-operated CRE Tower. HCDA admits that on January 23, 2014, SDMB sent an email to the CRE Tower dated January 23, 2014 regardingjumping at CRE, stating "Under our operating agreement, we are permitted to land anywhere within five (5) miles ofthe airport, ifnecessary." Compl. Ex. 1 at 113. The email further stated: "we believe a meeting with Mr. Washington and Airport Authority, our legal council [sic] and city counsel may be warranted." Id. 

### In its answer, the CRE Tower stated: "I am aware of only the one Letter Of Agreement (LOA) that CRE MYR and Skydive MB all signed and it doesn't speak oflanding any where other than the designated landing zone, but I do recall you had a different LOA once before that wasn't coordinated with CRE tower. ... I'm more than happy to meet with you and your legal council [sic] as my goal is safety. Let's allow sufficient time to get Horry County Airport Management and as many airport users as we can to participate." Id. 

### Answering further, HCDA states that SDMB's Operating Permit did not contain any provision for landing "anywhere within five (5) miles ofthe airport, ifnecessary." See generally HCDA-0000II-HCDA-000014. SDMB's May 11, 2012 LOA with HCDA, MYR, and the CRE Tower defines the location of SDMB's landing zone, and provides that SDMB "parachutist[s] are authorized to land in the defined 'Landing Zone' only and are not authorized to land on any runway, taxiway or ramp area." HCDA-000127 at**~** 

### 5. 13. Three days later, on Sunday, January 26, 2014, responding to an inquiry relating to holds, Robinson Aviation, Inc., Manager of Aviation Area II, Richard Allen indicated the need to possibly contact the FAA "runway incursion folks again ref. the golfcarts and etc. today." See 

### Exhibit 1, at 119.

4818-5357-1104.2 

### Answer: HCDA admits that in the January 26, 2014 email produced by SDMB, Richard Allen ofRobinson Aviation, Inc., stated: "I think we may talk with the runway incursion folks again ref. the golfcarts and etc today." Compl. Ex. 1 at 119. Mr. Allen's statement appears to follow up on correspondence between SDMB and the CRE Tower, in which the CRE Tower stated: "This afternoon we had a couple ofissues with people walking on the taxiways and driving golfcarts on the taxiways without getting permission from the tower first. I'm sure your [sic] aware that's against the rules as we have spoken about this before. In an effort to keep the operation safe and by the rules can you rebriefyour
4

### folks not to enter a taxiway or runway without contacting the tower first. Id. 

### at 120. SDMB's response to this included admissions that its personnel had entered runways and taxiways without permission: "I golf cart went out to retrieve what was thought at the time an injuredjumper. This was done to quickly clear the runway" and "Ijumperlanded in between the runway and taxi way. Permission was obtained prior to crossing without 

### response from the tower." Id. 

### at 119-20 (emphasis added). 14. On February 3, 2014, SDMB again attempted to schedule a meeting with MYR, CRE and other interested parties. See 

### Exhibit I, at 130. Later that same day, SDMB was contacted by HCDA about another vehicle/pedestrian complaint by CRE to FAA for an active area incursion. See 

### Exhibit 1, 

### at 138. Answer: 

### HCDA does not have information or knowledge sufficient to form a beliefas to the truth ofthe first sentence in

### this paragraph, and on thatbasis denies the same. HCDA also denies the allegation to the extent it is based on the referenced document, which does not reflect a request to "schedule a meeting with MYR, CRE and other interested parties." Compl. Ex. 1 at 130. The document appears to invite James 1. 

### Cline from the FAA to a "meeting with the tower and Myrtle International for our annual operating agreement," but does not disclose whether the meeting has or has not been scheduled. See id. 

### Answering further, HCDA states that it appears from another document that SDMB told the CRE Tower on February 3, 2014 that a meeting "at 1400 (our location) would be great," and that the CRE Tower tried to attend this meeting. Compl. Ex. 1 at 129, 134-37, 153. With respect to the second sentence ofthis paragraph, HCDA admits that it contacted SDMB on February 3, 2014 regarding an information request from the FAA relating to a "Vehicle/Pedestrian Incursion report (VPD)" for CRE. Ex. 1 at 138. The email does not state from whom the FAA received this report, and on that basis HCDA denies the remaining allegations in the second sentence ofthis paragraph. 15. On February 5, 2014, SDMB set a meeting for Friday, February 7, 2014, to discuss CREs [sic] recent complaints to the FAA. See 

### Exhibit 1, at 153. Additionally, SDMB responded to HCDAs [sic] request for information related to the golf cart and skydiver taxiway "incursion". See 

### Exhibit 1, at 158. Answer: 

### HCDAadmits that SDMB sent an email on February 5, 2014, attempting to set a meeting for February 7, 2014, though the subject matter ofthemeeting is not clear from the face ofthe email. See 

### Compl. Ex. 1 at 153. HCDA admits that on February 5, 2014, counsel for SDMB also emailed HCDA with information concerning the January 26, 2014 vehicle incursion onto an active taxiway. See 

### Compl. Ex. 1 at 158. In this email, SDMB promised it "would request permissionpriorto entry ontaxiway in

### future." Id. 

### 16. In the February 7, 2014, meeting, CRE advised SDMB about a LOA between HCDA and CRE whereby procedures for vehicular and pedestrian entry into "active areas" required CRE ground communication protocols. SDMB agreed to comply with these provisions, requested a copy of the LOA and implemented internal procedures to meet the terms of the HCDA-CRE LOA. See 

### Exhibit 1, at 164-166. SDMB also requested repairs to the hangar for electrical, lighting and a street side door access to mitigate the deleterious effects ofHCDAs [sic] refusal to accept parcel deliveries. See 

### Exhibit 1, at 167-168. Mr. Jackson objected to the minutes in 

### that 

### 5 4818-5357-1104.2

### "the FBO would not sign for deliveries however we will except [sic

## 1any delivery that does not require a signature". See 

### Exhibit 1, at 167. Following the meeting, CRE provided SDMB 14 CFR 

### § 139.329 as the authority for its complaints to the FAA and HCDA. See 

### Exhibit 1, at 192. Answer: HCDA admits that at the February 7, 2014 meeting, SDMB was advised ofthe January 1, 2012 Letter of Agreement regarding "Control Jurisdiction of Airport Movement Areas" between the CRE Tower and HCDA. See 

### HCDA-000123- HCDA-000124. However, HCDA is without information or knowledge sufficient to form a beliefas to whether this was the first time SDMB had been apprised ofthe LOA, and on that basis, denies the same. HCDA is without information or knowledge sufficient to form a belief as to the truth of the allegation that SDMB "implemented internal procedures to meet the terms ofthe HCDA-CRE LOA," and on that basis denies the same. HCDA admits the remaining allegations in the second sentence of this paragraph. HCDA admits that SDMB requested electrical and other repairs to Hangar 7, but denies the remaining allegations ofthe third sentence ofthis paragraph. HCDA also denies that it has any obligation to make repairs to Hangar 7 - even SDMB's expired Space Use Permit provided "Company accepts the Space in its 'as-is' condition and County has no obligation to improve, repair, restore, or alter any portion ofthe Space." HCDA-OOOOOS. HCDA admits that Mr. Jackson wrote the above statement. HCDA also admits that, on February 14,2014, the CRE Tower forwarded an email from the FAA to SDMB containing 14 CFR 

### § 139.329, and stating "This is what the FAA sent me. This appears to go along with the LOA with the airport." Compl. Ex. I at 192. SDMB responded, 

### "in conjunction with the LOA this makes complete sense. Now that we have a copy, we have implemented SOPs here where 

### this shouldno longerpresent itself as an issue henceforth." Id. at 191 (emphasis added). 17. On February 10,2014, CRE and SDMB included the ground communications in part of the draft between SDMB, ZJX, MYR, CRE, and HCDAproposed LOA. See 

### Exhibit 1, at 194. Answer: HCDA admits the allegations in this paragraph, but denies that the referenced document supports these allegations. 18. On or about February 14, 2014, CRE indicated that it would attend the Safety Meeting March 8, 2014, adding "1 plan to do all I can to make this work for all ofus." See 

### Exhibit 1, at 197. Answer: HCDA denies the allegations in this paragraph to the extent they are based on the inaccurate reference to the CRE Tower as CRE. HCDA admits that inthe referenced document, the CRE Tower makes the above statements. 19. On February 17, 2014, SDMB attempted to address its maintenance, mail and parcel delivery issues with HCDA. See 

### Exhibit I, at 210.

4818·5357·1104.2 

### Answer: HCDA admits that SDMB sent a letter to HCDA dated February 17, 2014 regarding the above-referenced subject matter.

6

### 20. On February 19, 2014, HCDA was provided a letter from the Deputy County Attorney, Director of Airports, and Airport Manager, at the FAA-sponsored Safety Day. The letter identified more than ten (10) "serious" alleged FAA regulatory violations relating to skydiving as reported to HCDA by CRE. See 

### Exhibit 3 at pages 54-57. Due to these allegations, the Deputy County Attorney indicated that a lease was not forthcoming but a newtemporary space use could be used as an alternative provided SDMB paid the higher of $1,200 per month or 24% of its gross sales. See 

### Exhibit 3, at 60,**~4.B.** 

### The new terms were non-negotiable and SDMB had seventy-two (72) hours to execute or vacate the hangar. See Exhibit 3, at 57. Answer: HCDA admits that on February 19, 2014 the Deputy County Attorney for Horry County sent SDMB a letter stating that SDMB's prior Space Use Permit had expired on January 31,2014, and attaching a new Space Use Permit for SDMB's review and acceptance. Compl. Ex. 3 at 54-66. The letter included a list ofmultiple instances of unsafejumping practices, as well as vehicle and pedestrian incursions onto runways and taxiways, some ofwhich necessitated FAA reporting and investigation. These incidents constituted a violation ofSDMB's expired Space Use Permit and Operating Permit. See 

### id. 

### HCDA admits that the letter states: "In light of the foregoing, Horry County is unwilling to offer Skydive Myrtle Beach a leasehold interest in the CRE hangar facility at this time" and that the new Space Use Permit required "Fees for the use ofthe space will be $1,200.00/month 

### or 24% ofgross revenues, whichever is greater." HCDA also admits that the letter stated these terms were non-negotiable, and that SDMB had 72 hours to sign and return the Space Use Permit or vacate the hangar. Answering further, HCDA states that the 24% term was included in the Space Use Permit in error, and was also offered, in error, to other tenants in their new Space Use Permits. 21. On February 19,2014, a copy ofthe proposed LOA with the terms between SDMB and CRE as agreed was sent to MYR for review and comment. See 

### Exhibit I, at 214. On February 24, 2014, skydiving operations at Grand Strand appeared smooth, without incident, and a working relationship with ZJX, MYR, CRE and SDMB had been developed with a workable LOA involving all parties. See 

### Exhibit I, at 216-224. (HCDA did not participate in the draft LOA discussions although it was invited to do so). Answer: HCDA admits that SDMB emailed MYR on February 19, 2014 with a proposednew LOA. However, HCDA notes that the proposed LOA is not attached to the email referenced in this paragraph. See 

### Compl. Ex. I at 214. HCDA denies the remaining allegations in this paragraph. 22. On February 21, 2012, SDMB addressed each of the allegations in the HCDA letter, denied violating any Title 14 regulation, asked for a copy ofthe HCDA operating regulations or authority and requested to work out the issues between HCDA either informally or in a court. See 

### Exhibit 3, at 67-78.

4818-5357-1104.2 

### Answer: HCDA admits that on February 21, 2014, SDMB sent a lengthy letter to HCDA responding to the Deputy County Attorney's February 19, 2014 letter. See 

### Compl. Ex. 3 at 67-78. HCDA denies the allegations in this paragraph to the extent they mischaracterize the subject matter of the referenced letter or describe the same in a misleading way. 7

### 23. On February 23, 2014, the day after Horry County's seventy-two (72) hour take-it-orleave-it deadline, without notice, HCDA FBO staffunder the direction ofmanager Tim Jackson, delayed fuel service to SDMB at Grand Strand by initially denying altogether, and later reconsidering on the phone. See 

### Exhibit 5, at 35 (Affidavit ofBenAuker). Answer: HCDA denies the allegations in this paragraph. Answering further, HCDA states that on February 23, 2014, when SDMB's pilot came in to request fuel, HCDA employees explained that they needed to contact Tim Jackson for approval to fuel SDMB's aircraft, and the pilot left. HCDA-00018l-HCDA-000182. The employees contacted Mr. Jackson anyway, and he approved the request, provided SDMB had a form ofpayment at the time. Id. 

### SDMB's counsel, Mr. Eastman, then approached the HCDA employees, who informed him that the fuel request had been approved. Id. 

### Mr. Eastman stated that SDMB "weren't going to stop until Tim and Jack [Teal, another HCDA employee] lose theirjobs." He also commented that the HCDA employees could tell Mr. 

### Jackson and Mr. Teal whathe had said. Id. 

### 24. On February 24, 2014, SDMB filed a Formal Complaint with FAA. See 

### Exhibit 3, at 50. Answer: HCDA admits the allegations in this paragraph
.. 25. On February 26,2014, HCDA attorneys informed SDMB that it did not engage in "good faith" negotiations prior to filing its Part 16 formal complaint and requested SDMB to withdraw its formal complaint. See 

### Exhibit 3, at 48. Answer: HCDA admits the allegations in this paragraph. 26. By letter dated February 28, 2014, SDMB related its Part 16 Complaint was discrete from its state court complaint and attached a copy ofits state complaint as a courtesy. See 

### Exhibit 3, at 46. SDMB also indicated its willingness to resolve the matters but refused to withdraw its Part 16 complaint. 

### Id. Answer: HCDA admits the allegations in this paragraph, but notes that the referenced document does not include a copy ofthe state court complaint. 27. On March 4, 2014, HCDA moved to dismiss the Part 16 Complaint without prejudice. See 

### Exhibit 3, at 44. Answer: HCDA admits that on March 4,2014 it sent a letter to the FAA respectfully requesting that the FAA dismiss SDMB's Part 16 Complaint without prejudice "until such time as SDMB complies with its obligations under § 

### 16.21." See 

### Comp!. Ex. 3 at 43-45. 28. On March 6, 2014, SDMB attempted to amend its Part 16 Complaint. See Exhibit 3, at 39.

4818-5357-1104.2 

### Answer: HCDA admits that on March 6, 2014, SDMB filed a letter with the FAA requesting that the FAA deny HCDA's request to dismiss SDMB's Part 16 Complaint. In its letter, SDMB also purported to move to amend the Part 16 Complaint. 8

### 29. On March 7, 2014, HCDA raised SDMBs [sic] failure to attach supporting documents and movedto dismiss. See 

### Exhibit 3, at 38. Answer: HCDA admits that, on March 7, 2014, it responded to SDMB's purported motion to amend its Part 16 Complaint by noting that SDMB failed to "Show[] good cause through a motion and supporting documents" pursuant to § 16.23(j). CompI. Ex. 3 at 37. HCDA therefore renewed its request that the FAA dismiss SDMB's Part 16 Complaint without prejudice. 

### Id. at 38. 30. On March 18, 2014, FAA dismissed SDMBs [sic] Part 16 Complaint for incompleteness. See 

### Exhibit 3, at 35. Answer: HCDA admits that the FAA dismissed SDMB's Part 16 Complaint on March 18,2014. 31. On March 20, 2014, HCDA issued a policy letter for tenant mail and parcel delivery for tenants at GSA and instituted Driver Training. See 

### Exhibit 3, at 34. Answer: HCDA admits that it issued a letter on March 20, 2014 regarding "Policy on accepting mail for tenants 

### I Airport Operations Area (AOA) Drivers Training" for CRE. CompI. Ex. 3 at 34. AOA classes were scheduled for March 22, March 25, and March 

### 27,2014. Id. 32. On March 25,2014, and again on March 27,2014, SDMB staff attempted to attend the required driver training but no HCDA representative showed up. HCDA Manager Tim Jackson and Lineman Jack Teal personally came to Hangar 7 to apologize for the course failure. The driving course was rescheduled on March 28, 2014. See 

### Exhibit 1, at 228. The class was again cancelled and has not beenrescheduled to date. Answer: HCDA denies the allegations in this paragraph to the extent they imply that no AOA Drivers Training has been held at CRE since March 20,2014 CRE. The scheduled March 22, 2014 training was held, and attended by SDMB employee Larry A. 

### Efird. HCDA-000186. Another AOA training was held on April 3, 2014, and was attended by SDMB employees Brett Miller, James Stremmer, Amber Richardson, and Joseph Jones. HCDA-000187. HCDA denies the remaining allegations in this paragraph. 33. On April 3, 2014, HCDA dumped approximately six (6) yards of peat moss on the SDMB statIparking lot preventing access to three (3) staffparking spaces. See 

### Exhibit 1, at 235. Answer: HCDA denies that any tenant at CRE, incluc1ing SDMB, has its own designated vehicle parking spaces. HCDA admits that it temporarily stored mulch on certainparking spaces near Hangar 7, but denies that this was in 

### any way improper or in violation of SDMB's rights, contractual or otherwise. HCDA denies the remaining allegations in this paragraph. 34. On April 7, 2014, through its attorneys, HCDA offered its version of "good faith" negotiations

- reducing the monthly lease percentage of gross from 24% to 10%. HCDA also

9 4818-5357-1104.2

### indicated that eviction proceedings would be initiated ifthis was not accepted by SDMB. See 

### Exhibit 3, at 23. Answer: HCDA admits that by letter dated April 7, 2014, it corrected the monthly gross sales percentage fee in the proffered Space Use Permit to 10% from 24%. Comp!. Ex. 3 at 23. As HCDA noted in its letter, this fee was "consistent with the fees charged other commercial operators at CRE." Id. 

### Moreover, HCDA stated "[tJhis form ofPermit has been accepted by other commercial occupants offacilities at CRE." Id. 

### The referenced commercial occupant is Executive Helicopters, whose Space Use Permit includes the 10% gross sales percentage fee term. HCDA-000027. HCDA also admits that in its April 7, 2014 letter, it stated that "it is the County's policy that no one may occupy space at the HCDA's airports unless they have entered into a Space Use Permit or a lease agreement with HCDA," and, therefore, "ifyour client chooses not to execute HCDA's standard form ofSpace Use Permit by April 15, 2014, HCDA will be forced to take legal action to remove your client from the space." Comp!. Ex. 3 at 23. HCDA denies the remaining allegations in this paragraph. 35. On April 12, 2014, a heated email exchange between CRE and SDMB ended with a threat to file another FAA complaint and a promise to forward all future CRE complaints to the FSDO and HCDA. See 

### Exhibit 1, at 241. Answer: HCDA denies the allegations in this paragraph to the extent they imply that HCDA has any control over the privately-operated CRE Tower. HCDA admits that the referenced document reflects SDMB stating it was "held for banner tow," and threatening that the hold "will be in [sic] amended into the faa [sic] complaint." Comp!. Ex. 1 at 241. The CRE Tower stated in response, "I'm not familiar with the FAA complaint you are speaking ofbut I am familiar with that as a threat and your [sic] welcome to complain to whomever you like. We at CRE do ourbest for your company." Id. 

### The CRE Tower also explained that the SDMB "aircraft (without jumpers in it) was held to fit into traffic." Id. 

### SDMB responded with a one-line threat: "Wewill fix this inthe complaint." Id. 

### Thereafter, the CRE Tower stated it would "begin to forward my complaints to FSDO, andthe airport." Id. 

### at 242. 36. On April 18,2014, SDMB again attempted to negotiate terms for leasing Hangar 7, and again requested a meeting to finalize the LOA for non-emergency parachute operations at GSA. See 

### Exhibit 3, at 21-22. Answer: HCDA denies that "SDMB again attempted to negotiate terms for leasing Hangar 7." The referenced letter shows that SDMB outright rejected HCDA's April 7, 2014 offer and instead offered only to extend the dates ofits expired Space Use Permit. Comp!. Ex. 3 at 21. HCDA admits that SDMB requested a meeting to finalize the LOA. 37. On April 28, 2014, HCDA issued a Notice ofTermination unless the terms in its April 7, 2014, correspondence were agreed to. See Exhibit 3, at 19. The letter further stated, "SDMB may not base its aircraft or its skydiving operations at CRE. However, as long as SDMB operates in accordance with all applicable laws, including the letter ofagreement, the [FAA], the CRE tower and HCDA, SDMB may continue to use the aeronautical facilities at CRE, including the landing
10 4818-5357-1104.2

### zone as a transient operator. However, without a valid Space Use Permit, SDMB must vacate Hangar No.7 and may not base its aircraft at CRE." Id 

### Answer: HCDA admits the allegations in this paragraph. Answering further, HCDA states that the Notice ofTermination related to SDMB's Operating Permit. In the Notice ofTermination, HCDA explained, "As SDMBhas refused to execute a Space Use Permit in the County's standard form and thereby remains the only commercial enterprise operating at CRE without a valid agreement, SDMB has violated, and continues to violate, the terms ofits Operating Permit." Compl. Ex. 3 at 19. HCDA also responded to SDMB's request to meet regarding the LOA with its understanding that the draft LOA, which included an expanded scope requested by SDMB, was being reviewed by the FAA. Id. 

### at 19-20. HCDA closed the letter by stating "HCDA remains ready, willing and able to enter into its standard form of Spacer] Use Permit with your client and, following that, to negotiate in good faith with the goal of entering into a mutually acceptable lease ofHangar No.7 at Grand Strand Airport." Id. 

### at 20. 38. On May 10, 2014, CRE notified SDMB it was forwarding a complaint for a taxiway incursion. See Exhibit I, at 243. Answer: HCDA admits the allegations in this paragraph; the CRE Tower stated "You know I have to file paperwork on the guys crossing the taxiway without coordination." Compl. Ex. I 

### at 243. This obligation derives from the LOA between the CRE Tower and HCDA, pursuant to which the CRE Tower must "Notify the Airport Operations or North Myrtle Beach Public Safety of observed Movement Area incursions committed by vehicle operators or pedestrians." HCDA-000123 SDMB was aware ofthis obligation on or before February 14,2014. 

### See Compl. Ex. 1 at 191-92; 

### see also Compl. Ex. 3 at 69. 39. On May 19, 2014, HCDA requested information relating to an FAA "Letter of Investigation triggered by skydivers operating on an active taxiway on May 10." 

### See Exhibit 1, at 245-256.

4818-5357-1104.2 

### Answer: HCDA denies the allegations in this paragraph. Answering further, the referenced email shows that HCDA requested information relating to "the FAA's Letter ofInvestigation triggered by 

### skydivers walking across the active taxiway on May 10." Compl. Ex. 1 at 245 (emphasis added). HCDA also stated: "Most important; I need your cooperation and recommendation(s) on your end to assist with assuring the FAA this will not happen again. I understand thejumpers are briefed but we're (the County) reaching the end of what we can do to curtail this issue (i.e. phone call to Robert in January (previous incident), Movement Area training etc.)." Id. 

### In its response, SDMB stated "We will add this harrassment [sic] to our federal complaint, which is on going and to our lawsuit against the county." Id. 

### Answering further, HCDA notes that, despite SDMB's claim in this email that "the Airport Authority and Tower has not discussed with us or given us the LOA in which the two ofthem operate," id., 

### SDMB was aware ofthe LOA between HCDA and the CRE Tower on or before February 14, 2014. 

### See Compl. Ex. 1 at 191-92. SDMB also notes that it had received the LOA in its February 21, 2014 letter to HCDA. 

### See Compl. Ex. 3 at 69.
11

### 40. On May 22, 2014, SDMB gave a counter offer to HCDAs [sic] Notice of Termination relating to Hangar No.7 and again requested a meeting to finalize the LOA. See Exhibit 3, at 16- 18. 

### Answer: HCDA denies the allegations in this paragraph to the extent they mischaracterize the contents of SDMB's May 22, 2014 letter or describe the same in a misleading way. In its May 22, 2014 letter, SDMB demanded that HCDA allow it "to enter into a new long-term lease for Hangar 7 at CRE at the originally agreed rate of $1,200 per month with reasonable repairs to be made by HCDA." Compl. Ex. 3 

### at 17. SDMB did not request a meeting to finalize the LOA. Rather, it threatened, "Should HCDA again refuse to negotiate a new long-term lease and LOA in good faith in the next seven (7) days
... SDMB will refile its Part 16 Formal Complaint." ld. 

### at 18. 41. On May 24, 2014, CRE reported a skydiver crossingthe runway. See 

### Exhibit I, 

### at 257. 

### Answer: HCDA admits the allegations in this paragraph. Answering further, HCDA states that the CRE Tower specifically explained, "Hey guys again we have one crossing without coordination. The runway this time. I have to file a report on it, I have no choice." Compl. Ex. I 

### at 257. 42. On May 28, 2014, HCDA rejected SDMBs [sic] counter offer and demanded SDMB to vacate Hangar No.7 and remove its aircraft from CRE. See 

### Exhibit 3, at 14-15.

4818-5357-1104.2 

### Answer: HCDA denies the allegations in this paragraph to the extent they mischaracterize the contents ofHCDA's May 28, 2014 letter or describe the same in a misleading way. In its May 28, 2014 letter, HCDA's attorney stated: "You correctly assert that SDMB should be treated like any other commercial aeronautical operator at Grand Strand Airport ("CRE"), but your client is the only tenant at CRE operating without either a space use permit or a lease." Compl. Ex. 3 

### at 14. The attorney continued: HCDA offered your client the opportunity to execute a Space Use Permit in order to permit your client to continue to base its aircraft and commercial skydiving business at CRE while a lease between HCDA and SDMB could be negotiated and presented to the Horry County Council for the required approval process. As both HCDA and I have made clear, all parties operating at CRE, other than itinerants not based at the airport, must be a party to a valid agreement with HCDA. The purpose ofa Space Use Permit is to give both HCDA and the tenant sufficient time to negotiate a lease, while providing both parties with the legal protections of an agreement. HCDA has offered your client the same terms as have been offered to, and accepted by, other commercial aeronautical service providers at CRE, and SDMB has chosen to reject HCDA's offer. Accordingly, SDMB has left HCDA no choice but to proceed to remove SDMB from the premises. ld. 

### Finally, HCDA repeated its promise that "as long as SDMB operates in accordance with all applicable laws, including the existing letter ofagreement among SDMB, FAA,
12

### the CRE Tower and HCDA, or any successor to that agreement, SDMB may continue to use the aeronautical facilities at CRE as an itinerant operator." Id. 

### at 15. Because SDMB had not executed a Space Use Permit within 30 days of the Notice of Termination, HCDA concluded, "SDMB's operating permit is hereby terminated." Id. 

### 43. On May 29, 2014, SDMB offered to mediate with HCDA in an attempt to resolve the issues. See 

### Exhibit 3, at 19. Answer: 

### HCDA admits the allegations in this paragraph, but notes that the document supporting these allegations can be found at Comp!. Ex. 3 at 12-13. 44. On May 30, 2014, HCDA conditionally accepted SDMBs [sic] offer to mediate. See 

### Exhibit 3, at 10. Answer: 

### HCDA admits that it accepted SDMB's offer to mediate, on the following conditions: "1) the mediator selected will be from the list of Certified Circuit Court mediators for Horry County and the mediation will be conducted within Horry County, South Carolina; 2) the scope ofthe mediation will include all outstanding issues between the parties, i.e. all pending litigation, contemplated future claims/litigation, use ofCounty facilities by SDMB; and 3) the mediation will be concluded within thirty (30) days." Comp!. Ex. 3 at 10. 45. On June 2, 2014, SDMB countered HCDAs [sic] conditional offer to mediate in order to meet ethical requirements relating to South Carolina state law. See 

### Exhibit 3, at 8-9. Answer: 

### HCDA denies the allegations in this paragraph as stated. HCDA admits that on June 2, 2014, SDMB responded to HCDA accepting HCDA's conditions and providing some conditions ofits own. See 

### Comp!. Ex. 3, at 8-9. 46. On June 5, 2014, HCDA conditionally accepted SDMBs [sic] offer to mediate with several modifications and filed an Applicationfor Eviction in Myrtle Beach Magistrate's Court. See 

### Exhibit 3, at 5-6; Exhibit 2. Answer: 

### HCDA admits that on June 5, 2014, it accepted SDMB's proposed conditions and proposed one minor modification, to shorten the time period for evaluating potential conflicts ofthe parties' mediator. Comp!. Ex. 3 at 6. HCDA also admits that it filed for eviction ofSDMB the same day. See 

### Comp!. Ex. 4. 47. On June 10,2014, MYR invited all interested parties to discuss the LOA. See 

### Exhibit 1, 

### at 272. Although the proposed LOA included penalty and reporting provisions that were objectionable to SDMB, a meeting was set for June 24, 2014. See 

### Exhibit 1, 

### at 273-298.

4818-5357-1104.2 

### Answer: 

### HCDA admits the allegations in the first sentence ofthis paragraph. HCDA also admits that certain provisions in the proposed LOA were objectionable to SDMB, but denies that any provisions in the LOA were a "penalty." HCDA denies that a meeting was set for June 24, 2014. The meeting was set for and held on June 25, 2014. See 

### Comp!. Ex. 1 at 295.

13

### 48. On June 18, 2014, SDMB offered to mediate but conditioned its acceptance on compliance with SCRPC Rule 4.2 necessitating the attendance or written consent of all represented parties in order to discuss matters relating to SC state law. See 

### Exhibit 3, at 4. Answer: HCDA admits that SDMB sent a letter dated June 18,2014 agreeing to the shortenedtime period for evaluating potential conflicts ofinterest. See 

### Compl. Ex. 3 at 4. SDMB also stated that it would be happy to discuss both federal and state matters ifthe attorneys representing HCDA in the state court actions, Mr. Battle and Mr. Arthur, also attended. Id. 49. On June 24, 2014, HCDA, ZJX (via phone), MYR, CRE and SDMB met at MYR to discuss the LOA. The meeting did not finalize the LOA, and it was agreed that operations would continue under the terms ofthe existing LOA until matter could be finalized. HCDA could not provide a return date. Incident reporting was discussed, and for the first time HCDA revealed that CRE was reporting all skydiver taxiway crossings to HCDA at their direction. Answer: HCDA denies the allegations in this paragraph to the extent they are based on the inaccurate reference to the CRE Tower as CRE. HCDA admits the allegations in the first two sentences ofthis paragraph, but notes that the meeting actually occurred on June 25, 2014. HCDA does not understand the third sentence ofthis allegation, and on that basis denies the same. HCDA admits that the reporting ofsafety incidents was discussed at the meeting, and HCDA explained its safety reporting system to SDMB. HCDA denies the remaining allegations in this paragraph. 50. On June 27, 2014, SDMB requested regulatory authority requiring CRE to report skydivers on active areas to FAA and requested a discussion about Title 14, Part 105. SDMB was referred to FAA. See 

### Exhibit 1, at 322. Answer: HCDA admits that in its June 27, 2014 email to the CRE Tower, SDMB stated, in reference to the June 25th meeting: "Good seeing you the other day. Do you have the regulation requiring [the CRE Tower] to report parachutists to FAA for crossing the taxiway other than 139.329 we talked about in February and you provided." Compl. Ex. I at 322. The CRE Tower responded, "I can't say that I enjoyed the meeting or the accusations. I think I will refer you to the FAA for that information." Id. 51. On or about June 27, 2014, an unidentified photographer! was observed taking pictures of Hangar 7 from the Grand Strand Airport Parking lot. See Exhibit 2, at 15. Answer: HCDA is without information or knowledge sufficientto form a beliefas to the truth ofthe allegations inthis paragraph, and onthat basis denies the same.

1 The photographerhas been identified by SDMB staffas HCDA Operations SupervisorEdward Dingley. On Friday when questioned by SDMB staffafter being observed taking pictures from a concealed location in the parking lot, 1v1r. Dingley stated that he was taking pictures as was his hobby when onvacation orwords to that effect.

4818-5357-1104.2 Answer: HCDA is without infonnation orknowledge sufficient to form a beliefas to the truth ofthe allegations in the first sentence otthis paragraph, and on thatbasis denies the same. HCDA denies the remaining allegations in this paragraph. 

### 14

### 52. On June 27, 2014, at 1546 on a Friday, counsel for HCDA rejected SDMBs [sic] offer to mediate by its failure to offer assurances that counsel for all parties would attend or provide written consent to discuss matters ofstate law. See 

### Exhibit 2, at 14; Exhibit 3, at I. Answer: 

### HCDA denies the allegations in this paragraph. Answering further, HCDA states that in its June 27,2014 letter, it accepted the last of SDMB's terms regarding mediation and, consequently, attached a list ofmediators from which SDMB could select. See 

### Compl. Ex. 3 at I. 

### HCDA's letter copied both Mr. Arthur and Mr. 

### Battle, the state court attorneys whose presence at mediation SDMB demanded. See id. 

### SDMB's only response was to file the Part 16 Formal Complaint. 53. On June 27, 2014, HCDA emailed SDMB relating its safety concerns from CRE and FAA with reports that were attached. See 

### Exhibit 2, at II. The FAA reports were styled "Horry County Department of Airports Unusual Activity Report" and filed by CRE to HCDA employees Stan Cox and Edward Dingley. See 

### Exhibit 2, at 10-13. Answer: 

### HCDA admits that its Assistant Director emailed SDMB on June 27, 2014 "to see how we can work together to improve the safety at Grand Strand Airport." Compl. Ex. 2 at 10. HCDA's Assistant Director noted, "We have been notified by the CRE Tower ofcertain incidents involving skydivers thathave missed the landing zone at CRE. These issues can pose a serious safety threat to the users ofCRE and I would like to work with you to figure out a solution. The CRE tower is also concerned. Our goal is to provide a safe, operationally efficient airport that supports the growth of aeronautical activity and provides positive economic impact to the community. I hope we can partner together in pursuit ofthis goal." Id. 

### The Assistant Director continued, "As a first step to improving safety and operational efficiency at CRE, I have implemented an incident reporting system for all events that create an unsafe operating condition at the airport." Id. 

### The Assistant Director attached two ofthe most recent incident reports. Id. 

### HCDA admits that these incident reports were titled "Horry County Department of Airports Unusual Incident Report," see id. 

### at 12-13, and denies the remaining allegations in the second sentence ofthis paragraph. The witness ofthe first incident was a CRE Tower employee, and the HCDA employee who completed the report was Edward Dingley. Id. 

### at 12. The witnesses ofthe second incident were a CRE Tower employee and an HCDA employee, and the HCDA employee who completedthe report was Chad Cox. Id. 

### at 13. 54. On Sunday, June 29, 2014, HCDA employee Ed Dingley repeatedly drove to the LZ 

### in a golfcartto observe each parachute drop conducted during the day. See 

### Exhibit 2, at 17-18.

4818·5357·1104.2 

### Answer: 

### HCDA denies the allegations in this paragraph. Answering further, HCDA states that on June 29, 2014, Mr. Dingley and SDMB's counsel, Mr. Eastman, were talking on the ramp. HCDA-000185. A skydiver appeared to miss the mark north ofthe fuel farm, and Mr. Eastman asked Mr. Dingley to ride with him to take a look. Id. 

### They then returned to the ramp. Id. 

### SDMB owner Aaron Holly then approached and began following Mr. Dingley, recording him with his iPhone. Id.



### 15

### STATEMENT OFMATERIAL FACTS (from SDMB's September 8, 2014 filing) 55. During its skydiving operations from April 2012-September 2013, SDMB received no complaints. Inlate August 2013, HCDApurchased Ramp 66's management interest and notified SDMB that a new lease would be necessary between it and HCDA to continue operations at GSA. In good faith, SDMB entered into a temporary Space Use Permit agreement with HCDA for no more than a six-monthperiod (Initial Permit). See Exhibit 2. The Initial Permitrequired a monthly payment of $1,200.00 for Hangar 7. The Initial Permit was intended to be a "bridge term" that would permit the statutorily required Horry County Council2 readings and acceptance ofthe Initial Permit for a final long-term lease. No long-term lease has ever been presented to SDMB by HCDA. Answer: HCDA admits that effective August 1, 2013, it took over control of CRE operations from Ramp66 and purchased all ofRamp66's assets relating to management of CRE. HCDA also admits that it notified all tenants at CRE, including SDMB, that they would need to enter into new space use pennits until such time as long-term leases could be reviewed and approved by the Horry County Council. SDMB's Space Use Permit required monthly payments of $1,200.00. HCDA-000004. HCDA denies the remaining allegations in this paragraph, including without limitation the allegation that "SDMB received no complaints" before September 2013. For instance, SDMB was made aware ofataxiway incursionby one ofits skydivers on May 27,2013. 

### See HCDA000137. 56. Sometime in October 2013, HCDA notified the GSA tenant's [sic] and advised them that the north half ofthe Airport would undergo re-surfacing. HCDA notified SDMB that it would be necessary to relocate the landing zone (LZ) to the southern end ofthe airport in front ofthe ATC sometime in the future. Answer: HCDA admits that it notified all CRE tenants prior to Phase 1 ofits federallyfunded ramp rehabilitation project that some of their operations would have to be relocated during that Phase. HCDA also admits the designated parachute landing zone at CRE was altered from approximately August 2013 to April 2014 to accommodate Phase 1 ofthe projecL 57. During the period between October 2013 and February 2014, HCDA began to initiate a series of quasi-legal complaints against SDMB that increased in severity and frequency to the currentpoint ofharassment. Answer: HCDA denies the allegations in this paragraph.

2At HCDA's Myrtle Beach Magistrate's Court hearing, Deputy County Attorney H. Randolph Haldi, testifiedthat the Initial Permit had not been sent to the County Council by HCDA and it had "fallen through the cracks". A transcript ofthe hearing is not available at this time.

4818-5357-1104.2 Answer: HCDA admits that Mr. Haldi has testified in a hearing in South Carolina state court relating to the parties' state law claims, and denies the remaining allegations in this paragraph. 

### 16

### 58. Although the ATC has [aJ gas operated grill in plain view at its tower, HCDA lodged a complaint against SDMB for grilling butpermittedthe ATC to use its gas grill. Answer: HCDA admits that in its February 19,2014 letter, it informed SDMB that, on February 9, 2014, "HCDA personnel witness[edJ operation oftwo large propane grills in hangar and the sale offood forpublic consumption." Compl. Ex. 3 at 55. Answering further, HCDA states that whether the CRE Tower has a grill outside its tower has no bearing on HCDA's decision not to allow grills 

### inside leasedpremises at CRE. 59. SDMB has requested airport rules to abide by and has also attempted to meet the growing demands of HCDA. Other than changing oral admonitions from multiple HCDA managers stationed at MYR, no writtenrules have ever beenprovided. Answer: HCDA admits that SDMB has made requests for additional information from HCDA regarding operations at CRE. HCDA denies the remaining allegations in this paragraph. 60. In October 2013, HCDA initially objected to SDMB's planned event due to security, crowd control, permit requirements and other HCDA rule concerns. In response, SDMB presented a detailed Operations Order. Following several meetings and email, the event took place with no further objection from HCDA. Answer: HCDA admits that it presented SDMB with several concerns relating to its October 2013 event at CRE, including that SDMB had not met with the County nor obtained the required permits. See, e.g., Compl. Ex. I at 72-77,81,83. HCDA admits thatthe event took place, but denies the remaining allegations in this paragraph. 61. However at the event, HCDA sent two uniformed county policemento observe the entire event. During the event, the police ordered SDMB to remove a meal truck, prohibited customer parking in the GSA terminal parking lot, limited ingress/egress to the south gate adjacent to the FBA and next to Hangar 7, prohibited alcoholic beverages and smoking on airport property by SDMB customers, and ensured that doors were closed at 9:00 p.m. perthe Operations Order. The police made no arrests. Answer: HCDA denies that it "sent" County policemen to observe SDMB's event. HCDA admits the remaining allegations in this paragraph. 62. Following this event, HCDA airport manager, Tim Jackson, began to require GSA terminal employees to refuse mail and parcel delivery for any SDMB packages or mail requiring a signature.

4818·5357·1104.2 

### Answer: HCDA admits that its employees do not currently accept mail for CRE tenants, nor do they sign for any tenant deliveries. HCDA denies the allegations in this paragraph to the extent they imply that this practice was related to SDMB's October 2013 event. Answering further, HCDA states that SDMB had previously accused HCDA of misplacing a package, and it was later determined that one of SDMB's employees had picked up the package and misplaced it in SDMB's hangar. After this occurrence, HCDA decided not to sign for packages for any ofits tenants, but to continue accepting 17

### other mail at its customer service counter. As ofMarch 20, 2014, HCDA informed all its tenants that it would no longer accept and hold mail for them. HCDA-00017S. 63. During the month ofJanuary 2014, SDMB aircraft was placed on increasing holds during jump runs and on ramp access. Additionally, pedestrian and golf cart "incursion" complaints were being aUeged by HCDA with increasing frequency. SDMB stated it was in compliance with Part 105, industry standards, and associated FAA guidance, indicated its strict adherence to rules and regulations and demanded a meeting with HCDA and the ATC and requested the authority for the alleged violations. Answer: HCDA is without information and knowledge sufficient to form a beliefas to the truth ofthe allegations in the first sentence ofthis paragraph, and on that basis denies the same. HCDA denies the allegations in this paragraph to the extent they imply that HCDA has any control over when and whether aircraft are held; these decisions are properly and independently made by the privately-operated CRE Tower. HCDA admits that the CRE Tower reports vehicle and pedestrian incursions to the FAA as required and that, beginning in April 2014, HCDA has created Incident Reports relating to these incursions as part ofits efforts to track and mitigate safety hazards. HCDA also admits that SDMB has at all times claimed it was in 

### compliance with all applicable laws and regulations, but does not agree that this claim is accurate. HCDA denies the remaining allegations in this paragraph. 64. On February 5, 2014, a HCDA employee was observed trespassing [sic] SDMB's Hangar. The HCDA employee indicated he regularly went in the Hangar by removing the French links from the Hangar door and had authority to do so at any time for any reason. Answer: HCDA denies the allegations in this paragraph. Answering further, HCDA states that SDMB's Space Use Permit (which expired on January 31, 2014) provided that "County shall have the right to enter the Space at any time for any reasonable purpose." HCDA-000005. 65. On February 7, 2014, a meeting between HCDA, ATC and SDMB took place at SDMBs [sic] request. During the meeting SDMB attempted to resolve issues relating to mail delivery, unauthorized hangar entry, alleged incursions, mail delivery interruptions, hangar maintenance and safety concerns, alleged rule violations, a new LOA and requested a status report on the long-term lease. With regard to the unauthorized entry, HCDA manager, Tim Jackson, refused to discuss the matter as it was "under investigation". Mr. Jackson also represented that he did instruct GSA employees to refuse parcels and mail for SDMB. 3 

### SDMB indicated that it would be required to file a police report for the unauthorized entries for insurance purposes but it did not intend to press charges or pursue the matter, only that it wanted the unauthorized practice to cease. A police report was filed. See SDMB's Part 

### 16 Complaint 

### (P16), Ex. 2, at 25-46.

3 Mr. Jackson requested correction to the prepared minutes in that only parcels and mail requiring signatures was to be rejected. See SDMB's Part 16 Complaint (P16), Ex. 1, at 167.

4818-5357·1104.2 Answer: HCDA admits that, onFebruary 8, 2014, Mr. Jacksonrequested this correction. See Compl. Ex. 1, at 67. However, as ofMarch 20, 2014, HCDA informed all its tenants that it would no longer accept or hold mail for them. HCDA-000178. 

### IS

### Answer: HCDA admits that a meeting among HCDA, the CRE Tower, and SDMB took place on February 7, 2014, and that the issues listed above were discussed at that meeting, HCDA also admits that SDMB filed a police report HCDA denies the remaining allegations in this paragraph, 66, On February 19,2014, HCDA, through its property manager and deputy county attorney, H. Randolph Haldi, notified SDMB that a long-term lease would not be forthcoming. See 

### P16, Ex. 5, at 21-24. HCDA cited twelve rule violations and three ongoing violations in support ofits denial but offered a new Space Use Permit with materially different terms, including, inter alia, 

### the greater of $ 

### 1,200.00 or 24% of gross revenue per month use fee, restriction of skydiving activity to GSA property, additional rules and a 24 hour termination clause for any violation of the terms.ld. The new Space Use Permit would also expire on July 31,2014, and was subject to a 72 hourtake-it-or-vacate deadline. Id. Answer: HCDA admits that on February 19,2014 the Deputy County Attorney for Horry County sent SDMB a letter stating that SDMB's prior Space Use Permit had expired on January 31, 2014, and attaching a new Space Use Permit for SDMB's review and acceptance. Compl. Ex. 5 at 21-33. The letter included a list ofmultiple instances of unsafejumping practices, as well as vehicle and pedestrian incursions onto runways and taxiways, some ofwhich necessitated FAA reporting and investigation. These incidents constituted a violation of SDMB's existing (albeit expired) Space Use Permit and its Operating Permit See id. 

### HCDA admits that the letter states: "In 

### light ofthe foregoing, Horry County is unwilling to offer Skydive Myrtle Beach a leasehold interest in the CRE hangar facility at this time" and that the new Space Use Permit required "Fees for the use ofthe space will be $1,200.00/month 

### or 24% of gross revenues, whichever is greater." HCDA also admits that the letter stated these terms were non-negotiable, and that SDMB had 72 hours to sign and return the Space Use Permit or vacate the hangar. [d. 

### Answering further, HCDA states that the 24% term was included in the Space Use Permit in error, and was also offered, in error, to other tenants in their new Space Use Permits. HCDA denies the remaining allegations in this paragraph, including any allegations that mischaracterize the proposed Space Use Permit or describe it in a misleading way. 67. On Saturday, February 22, 2014, the HCDA deadline, two uniformed police officers and multiple HCDA staffgathered in the GSA FBA [sic

## 1observing SDMB operations. Answer: HCDA denies the allegations in this paragraph. 68. On April 7, 2014, a letter from Foley and Lardner represented that the terms of a new Space Use Permit "were consistent with the fees charged other commercial operators at eRE." 

### See 

### P16, Ex. 3, at 23. (emphasis supplied). To avoid legal action, the new permit had to be accepted by April 15 2014 (eight days). [d.

4818-5357-1104.2 

### Answer: HCDA admits that the April 7, 2014 letter it sent through its counsel, Foley & 

### Lardner LLP, made the above statements. Answering further, HCDA states that this letter also informed SDMB that "This form of Permit has been accepted by other commercial occupants offacilities at CRE." Compl. Ex. 3 at 23.

19

### 69. By letter dated April 28, 2014, HCDA, through its Boston attorneys, issued a Notice of Termination that included a thirty day deadline or May 27,2014, to accept the Space Use Permit and thus avoid litigation. See 

### P16, Ex3. at 19. Answer: 

### HCDA admits that on April 28, 2014, through its counsel at Foley & 

### Lardner LLP (located in Boston, Massachusetts), sent a Notice of Termination of SDMB's Operating Perinit. See 

### Compl. Ex. 3 at 19-20. In the Notice of Termination, HCDA explained, "As SDMB has refused to execute a Space Use Permit in the County's standard form and thereby remains the only commercial enterprise operating at CRE without a valid agreement, SDMB has violated, and continues to violate, the terms ofits Operating Permit." Id. at 19. HCDA indicated that even if SDMB was not a party to a valid Space Use Permit and Operating Permit, SDMB could "continue to use the aeronautical facilities at CRE, including the landing zone, as a transient operator." Id. HCDA closed the letter by stating "HCDA remains ready, willing and able to enter into its standard form ofSpacer] Use Permit with your client and, following that, to negotiate in good faith with the goal ofentering into a mutually acceptable lease ofHangar No.7 at Grand Strand Airport." Id. at 20. 70. On May 24, 2014, HCDA responding to an ATC email from manager Glenn Ray, filed an "Unusual Incident Report" alleging a parachutist's unauthorized crossing of an active runway and taxiway. See 

### P16 Ex. 2, at 124 Each ofthese reports were [sic] initiated by alleged ATC "Mandatory Occurrence Reportss". Answer: 

### HCDA admits that the information in each ofthe referenced May 24, 2014 incident reports came from "an e-mail report forwarded by CRE Tower Manager."

4 Despite multiple requests, no other written allegations of violations from HCDA have been provided to SDMB. As such these "Mandatory Occurrence Reports" from the ATC or other "Unusual Incident Reports" by the county other than this have been provided to SDMB. Answer: HCDA admits that SDMB has requested the incident reports through discovery in its state court action, to which HCDA is in the process of responding. HCDA denies the remaining al1egations in this paragraph.
5 During the June 25, 2014, LOA meeting, ATC manager Glenn Ray stated the multiple incident reports were requested by HCDA. HCDA stated that its reports were a result ofATC and FAA complaints and the source ofits "safety concerns". Both HCDA and ATe are justifying the need for "safety violations" based on the request the other. This bootstrapping of subjective observations styled as safety violations and reporting appears to be a procedure for GSA only and no other commercial enterprise has been cited under this system. On July 8, 2014, SDMB requested this policy, al1 violations, and any reports generated by this system in its discovery request to HCDA. HCDA has not provided any documents to date.

4818-5357-1104.2 Answer: HCDA admits that it has implemented a reporting system to track safety hazards at CRE, in an effort to mitigate these hazards. HCDA also admits that many ofits incident reports relate to SDMB due to the frequency with which SDMB has created safety concerns, including the significant number of skydivers landing outside the designated landing zone, and vehicle and pedestrian deviations committed by SDMB's personnel and skydivers. See generally HCDA000147-HCDA-000175, HCDA-OOOI77. HCDA admits that SDMB has requested copies of these incident reports in discovery in its state court action, to which HCDA is in the process of responding. HCDA denies the remaining al1egations in this paragraph, including without limitation the al1egation that SDMB is the only commercial enterprise about whom an incident report has been created. See HCDA-000166 (incident report relating to banner tow incident). 

### 20

### Comp!. Ex. 2 at 12, 13. Only one ofthe reports states that the "CRE Tower staff will forward [a] 'Mandatory Occurrence Report.'" 

### Id. at 12. HCDA denies the remaining allegations inthis paragraph. 71. On May 28, 2014, HCDA objected to the twenty-two delay [sic], renewed its offer but indicated that rejection would require SDMB to "immediately vacate all premises it occupies at CRE and 

### remove its aircraft from the airport." See P16 Ex. 3 at 14-15, (emphasis supplied). Answer: HCDA denies the allegations in this paragraph to the extent they mischaracterize the contents of HCDA's May 28, 2014 letter or 

### describe the same in a misleading way. In its May 28, 2014 letter, HCDA's attorney stated: "You correctly assert that SDMB should be treated like any other commercial aeronautical operator at Grand Strand Airport ("CRE"), but your client is the only tenant at CRE operating without either a space use permit or a lease." Comp!. Ex. 3 at 14. The attorney continued: HCDA offered your client the opportunity to execute a Space Use Permit in order to permit your client to continue to base its aircraft and commercial skydiving business at CRE while a lease between HCDA and SDMB could be negotiated and presented to the Horry County Council for the required approval process. As both HCDA and I have made clear, all parties operating at CRE, other than itinerants not based at the airport, must be a party to a valid agreement with HCDA. The purpose ofa Space Use Permit is to give both HCDA and the tenant sufficient time to negotiate a lease, while providing both parties with the legal protections of an agreement. HCDA has offered your client the same terms as have been offered to, and accepted by, other commercial aeronautical service providers at CRE, and SDMB has chosen to reject HCDA's offer. Accordingly, SDMB has left HCDA no choice but to proceed to remove SDMB from the premIses. 

### Id. Finally, HCDA repeated its promise that "as long as SDMB operates in accordance with all applicable laws, including the existing letter ofagreement among SDMB, FAA, the CRE Tower and HCDA, or any successor to that agreement, SDMB may continue to use the aeronautical facilities at CRE as an itinerant operator." 

### Id. at 15. Because SDMB had not executed a Space Use Permit within 30 days of the Notice of Termination, HCDA concluded, "SDMB's operatingpermit is hereby terminated." 

### Id. 72. On June 2, 2014, SDMB conditionally accepted HCDAs [sic] counter offer provided counsel for SDMB's ethical obligations to have consent ofthe two other law firms handling the state litigation were present or consented to the increased scope ofrepresentation by the Boston lawfirm to include state lawmatters. 

### See P16, Ex. 3, at 8-9. Counsel for HCDA was also advised that he was potentially exposing himselfto criminal and civil liability in the event he expanded his scope ofrepresentation. 

### Id.

4818-5357-1104.2 

### Answer: HCDA denies the allegations inthis paragraph as stated. HCDA admits that on June 2, 2014, SDMB responded to HCDA's earlier letter regarding SDMB's proposed mediation, accepting HCDA's proposed conditions and providing some conditions ofits
21

### own. See 

### Compl. Ex. 3, at 8-9. HCDA admits that in its letter, SDMB claimed that HCDA's counsel in this FAA action would be violating South Carolina state law by attending the mediation, if the South Carolina attorneys representing HCDA in the pending state court actions were not also present. See id. 

### HCDA denies that there is any merit, legal or otherwise, to this claim, and states that it subsequently informed SDMB that its understanding ofthe law on this matter was incorrect. See 

### Compl. Ex. 3 at 6. 73. On June 13, 2014, SDMB filed a Motion to Remove the Ejectment proceeding to consolidate HCDA's ejectment proceeding as part of an answer to SDMBs [sic] claim or retaliatory eviction. See 

### Exhibit A at 35. Answer: HCDA admits that on June 13,2014, SDMB filed a "Motionto Remove" in the ejectment action pending in South Carolina state court. SMF Ex. A at 35. In its Motion to Remove, SDMB requested "an order dismissing the Plaintiffs Application for Ejectment against Defendant Skydive Myrtle Beach, Inc.," and further requested that the ejectment action "be removed to Horry County Court ofCommon Pleas," where SDMB had previously filed a state court action against HCDA "alleging 

### inter alia, breach of contract with an existing lease." Id. 

### 74. On June 19,2014, a Motion for Consolidation, injunctive relief and emergency hearing was filed by SDMB to remove HCDA's ejectment proceeding in magistrate's court. See 

### Exhibit Aat 40. Answer: HCDA admits that on June 19,2014, SDMB filed a "Motion for Consolidation Request for Injunctive Relief, and Emergency Hearing" in the South Carolina Court of Common Pleas. SMF Ex. Aat 40-42. Aside from its title, this motion does not appear on its face to request any particularrelief. 75. On July 1,2014, SDMB refiled its Part 16 Complaint with FAA. Answer: HCDA admits that SDMB filed a new Part 16 Formal Complaint with the FAA on July 1,2014. 76. On July 2,2014, Myrtle BeachMagistrate's Court denied SDMBs [sic] request to remove the ejectment complaint. Answer: HCDA admits the allegations in this paragraph. 77. On July 10, 2014, HCDA, through its director, Pat Apone, admitted to a new reporting policy. She stated:

4818-5357-1104.2 

### As one measure to improve safety, as we discussed, within the past few months, HCDA has adopted a policy ofdocumenting incidents and accidents 

### with respect to operations at CRE. In just three months, 

### CRE Tower, private operators at CRE and HCDA staff have documented 10 such incidents and accidents involving SDMB, including five pedestrian or vehicular incursions into the runway or operating taxiways at CRE after landing well outside ofthe designated landing zone, and several other serious incidents, including a SDMB parachutist 22

### landing on top ofa fuel tank, and another landing in front ofa moving fuel truck. This regular failure of 5MB parachutists to land within the designated landing zone at CRE as well as to observe the bar on crossing active taxiways and runways without permission from CRE ATC could lead to serious injuries, property damage or the death of skydivers or other persons at CRE. 

### These conditions are simply notacceptable to HCDA. 

## * * * As a result of our recent meeting and SDMB's history of repeated excursions from the designated landing zone, HCDA is instituting the following changes and conditions with respect to SDMB's operations at CRE: 1. SDMB must maintain a log of all jumpers and their U.S.P.A. licensure status, or indicate that they were a tandemjumper, and make that log available to HCDA stafffor inspection and copying upon request; 2. All SDMB staffand skydivers must be instructed that, ifthey land outside the landing zone, no one may cross the taxiway or runway without permission from CRE ATC. If a landing on a taxiway or runway cannot be avoided, the skydiver must exit the taxiway or runway as quickly as possible, and any such landing must be reported to CRE ATC and HCDA innnediately by SDMB. 3. SDMB and its employees, agents, customers and guests must cooperate fully with any investigation by HCDA, FAA, or other governmental entity with jurisdiction into any past or future incidents or accidents related to SDMB's operations at CRE. 

## * * * HCDA has the obligation to monitor all operations at CRE, including those of SDMB. 

### Ifwefind that SDMB's skydivers cannot consistently land within the landingzone at CRE and operate in a safe manner, HCDA reserves the right to impose additional conditions on SDMB's operations at CRE, up to and including barring SDMB and its customers .and guestsfrom landing at CRE. We recognize that skydiving is an aeronautical activity and we are making every reasonable effort to accommodate SDMB's operations at CRE. However, HCDA's overarching obligation is to operate CRE safely for all aeronautical users ofthe airport. If SDMB's operations conflict with that obligations, then HCDA will take whatever steps are necessary to ensure that safety is maintained at CRE. See 

### Exhibit A at 23-5, (emphasis supplied).

4818-5357-1104.2 

### Answer: HCDA admits that Ms. Apone made these statements in her July 10, 2014 letter to SDMB regarding "Safety of SDMB's Operations," and denies the remaining allegations in this paragraph. HCDA notes that this letter is actually located at Exhibit B to SDMB's Statement ofMaterial Facts, at pages 3-5.
23

### 78. On July 11, 2014, in response to a report by SDMB about the dangerous condition of Hangar 7 doors/ HCDA stated: To be clear, Skydive's continued occupancy of Hangar 

### 7 is at its own risk and without HCDA's authorization or permission. Should Skydive notice future operationaldifficulties withthe door to Hangar 

### 7 before the ejectment proceeding is concluded, including its mechanism, Skydive should immediately cease any attempts to move the door in the interest of safety. HCDA reserves the right to recover from Skydive any costs associated with repairing any damage to Hangar 7, including the door, caused by Skydive or its employees, agents or invitees. 

## If before the ejectment action is concludedHangar 7 

### becomes unsafe to usefor any reason, as the owner of Hangar 7, 

### HCDA reserves the right to restrict any or all use ofthe Hangar by anyparty, including Skydive. 

## If Hangar 7

### must be closed, Skydive would be required to immediately vacate Hangar 7, 

### remove its personalpropertyfrom the hangar, and make arrangements to undertake its non-aeronautical operations, such as classroom instruction, customer check-in, andparachutepacking,from another location, remotefrom CRE. In such an event, HCDA would work with Skydive to develop a plan that would permit Skydive to continue its aeronautical operations at CRE, consistent with law and HCDA policies. See Exhibit B at 1-2, (emphasis supplied). Answer: HCDA admits that, "[i]n light of the report of difficulties with the door to Hangar 7," it made these statements in its July 11, 2014 letter to SDMB regarding "Unauthorized occupancy ofHanger [sic] 

### 7 at CRE." SMF Ex. B at 1. HCDA denies the remaining allegations in this paragraph. 79. On July 18,2014, SDMB requested reconsiderationbythe magistrate's court. See Exhibit A 

### at 72-74. Answer: HCDA admits the allegations in this paragraph, but notes that the document supporting these allegations can be found at SMF Ex. A, at 71-73. 80. On July 21, 2014, through its Conway, South Carolina lawyers, HCDA objected to SDMBs [sic] reconsideration request concluding: Horry County respectfully requests that the ejectment hearing proceed as scheduled. Horry County has planned a construction project for approximately Three Million Dollars for Ramp Rehabilitation which Horry County scheduled to begin on September 2, 2014. 

### The rehabilitation project is expected to require

6 SDMB has reported this defective and dangerous condition to the county on multiple occasions. This is the same door that HCDA pried open to access and remove the French links to gain unauthorized entry on multiple occasions and has degraded significantly since HCDA resumed control ofGSA.

4818-5357-1104.2 Answer: HCDA admits that SDMB has informed HCDA ofproblems with the door on Hangar 7, but denies the remaining allegations inthis paragraph. 

### 24

### anyone occupying Hangar 7 

### to vacate thepremises while the rehabilitation of the ramp is being completed. Bids have been received and Horry County is prepared to award the bid as soon as it receives grant approvalfor theproject from the FederalAviationAdministration. Approval is expected in the very near

future. Horry County contends that SDMB's occupation ofHangar 7 and delaying tactics, if successful, will frustrate Horry County's Ramp Rehabilitation project and cause significant financial damage to Horry County. If SDMB has a valid defense, they should present it at the hearing scheduled for July 23,2014. See 

### Exhibit A at 77 (emphasis supplied). Answer: HCDA admits the allegations in this paragraph. 81. On July 23, 2014, SDMB's Motion to Remove was denied and a bench trial was conducted relating to the HCDA ejectment proceeding. At the bench trial, Aaron Holly testified for SDMB and H. Randolph Haldi testified for HCDA.7 

### Mr. Holly testified that he had made arrangements to move into an alternate and suitable hangar at the north end of GSA from Malcom Odom but it required HCDA authorization. Mr. Haldi testified that the original Space Use Permit had somehow slipped through the cracks and not been presented to the County Council by HCDA. In response to an inquiry by thejudge, Council [sic

## 1for HCDA represented to the Court that Hangar 1 was not appropriate for SDMB as it would require three parking tie downs to be removed causing unnecessary harm to HCDA. Following testimony, the magistrate's court found in favor of HCDA and issued a Writ of Ejectment no later than Monday, July 28, 2014. See 

### Exhibit A at 75. Answer: HCDA admits that a hearing was held on July 23,2014 in the ejectment action in Myrtle Beach Magistrate's Court. HCDA also admits that Mr. Holly testified at the hearing, with testimony similarto what is described in this paragraph. HCDA admits that Mr. Haldi testified at this hearing, but denies the allegations in this paragraph to the extent they mischaracterize Mr. 

### Haldi's testimony or describe the same in a misleading way. HCDA also admits that it stated at the hearing that Hangar 1 at CRE was not available for SDMB's use. HCDA also admits that the court issued a Writ ofEjectrnent on July 23, 2014, instructing the sheriffto inform SDMB that it haduntil July 28,2014 to voluntarily vacate the premises. SMF Ex. A at 75. After that date, if SDMB had not voluntarily vacated the premises, the Writ provided that a deputy sheriffcould enter the premises to effectuate the ejectment and that, upon gaining access, the sheriff should "remove from the premises any occupants and all items ofpersonal property found onthe premises." ld. 

### HCDA denies the remaining allegations in this paragraph. Answering further, HCDA states that it has never received a formal request to sublease Hangar 1. Declaration ofHugh Jason Terreri, HCDA-000130 at**~** 

### 8. HCDA also states that Hangar 1is not an available alternative to Hangar 7, for the following reasons. First, due to the manufacturer's specification for SDMB's aircraft and the configuration ofthe
7 A transcript ofthis trial is not yet available.

4818-5357-1104.2 Answer: This statement has nothing to do with the subject matter ofthis action, and on thatbasis HCDA denies said statement. 

### 25

### airport in the vicinity of Hangar 1, 

### SDMB's current aircraft could not maneuver into Hangar 1 from the apron. Id. 

### at**~** 

### 5. Even if SDMB's aircraft was able to enter into Hangar 1, HCDA would lose at least 10 revenue-producing parking spaces on the CRE ramp in order to ensure that SDMB's aircraft could safely turn around and access the hangar. Id. 

### at**~** 

### 6. This is due to the turning radius required for SDMB's aircraft to access Hangar 1, 

### and the required IS-foot taxilane wingtip clearance from fixed or moveable objects. Id. 

### In addition, there is no direct access from the landside to Hangar 1. All of SDMB's customers would therefore be required to traverse the active apron to access Hangar 1, 

### adding a significant amount ofvehicular and pedestrian traffic to the ramp. Id. 

### at**~** 

### 7. 82. On July 25,2014, SDMB appealed. See 

### Exhibit 21. On August 1,2014, 

### a Bond to Stay Execution Pending Appeal was granted by the Myrtle Beach Magistrate's Court. See 

### Exhibit A at 2-109. Answer: HCDA admits that on July 25, 2014, SDMB appealed the Magistrate Court's July 23,2014 decision, and that SDMB has submitted a bond pending appeal. See 

### SMF Ex. A 

### at 1-4. 83. On August 28, 2014, HCDA posted no parking signs in the parking spaces across from Hangar 7 at the site ofthe peat moss pile identified in the Part 16 Complaint and has renewed its parking complaints during operating hours with SDMB.

4818-5357-1104.2 

### Answer: HCDA denies that any tenant at CRE, including SDMB, has its own designated vehicle parking spaces. HCDA admits that it 

### posted no parking signs in this area because SDMB staffhad parked in a location that blocked a dumpster. The signs are intended to provide enough space for the truck to pick up the dumpster. HCDA discussed this with the SDMB staff onsite at the time. HCDA denies the remaining allegations in this paragraph.

26SkyOive Myrtle Beach, LLC P.O. Box 2478 Wilmington, HC 28402 May 10, 2012 This letter constitutes the complete agreement between SkyDive Myrtle Beach, LLC (SkyOive MB) and Grand Strand Aviation, Inc. dba Ramp 66. The agreement is for SkyOive Myrtle Beach, LLC to provide tandem parachutejumps from the Grand Strand Airport. All jumpers will check in and pay at the Ramp 66 front desk, except those jumpers .. who have registered and previously paid SkyDive Myrtle Beach, LLC directly online.

## i Personal checks will not be accepted. The paid invoice will constitute the ticket for the jumpers. The invoice number will provide priority ofwho is next in line for the jump. Schedules will be monitored and maintained by SkyOive MB. Jumpers will pay for theirjump prior to the jump. SkyOive MB will establish and publish rates for all jumps.1.-/ It is agreed that Ramp 66 will sell fuel to SkyDive MB at $.25 cents belowthe price posted for JetA fuel. 2. Any aircraft maintenance labor requested by SkyDive MB will be charged at the rate of $5.00 below the posted labor rate. 3. Any aircraft parts purchased through Ramp 66 will be charged at the rate of cost plus 20% + freight. 4. There will be no Tie Down fees. or otherfees, charged to SkyDive MB. 5. There will be no packing fees or any otherfees charged to SkyDive MB. SkyDive MB shall be provided with a minimum of 2,500 square feet in the "bird hanger" for use during daylight hours withoutfee seven days a week, including holidays, 365 days a year. 6. Ramp 66 shall pay SkyOive MB 86% of the income shown on the invoice (internet sales and merchandise sales are excluded as they shall be paid directly to SkyDive MBl, less the Airport fee, for all jumps. Payment shall be remitted to SkyDive MB on a daily basis. 7. Ramp 66 will pay Horry County Department of Airports 5% of the gross income it receives directly from jumpers on all jumps. 8. Ramp 66 will assume all credit card charges withoutfee to SkyDive MB 9. Ramp 66 will assume business license costs unless the city of North Myrtle Beach changes their current position that parachute operations falls underthe business license of Ramp 66. 10. SkyDive MB will maintain a minimum of $1,000,000 Airport Liability Insurance in effect and name Grand Stran Aviation, Inc. and Horry County Department of Aviation as additional insured. A copy of the Certificate of Insurance will be provided to Ramp 66. 11. Ramp 66 agrees to charge fuel and other services to SkyDive MB LLC. This bill will be paid weekly. 12. SkyDive MB agrees to comply with all applicable federal statutes and all regulations and all regulations including, but not limited to, those promulgated bythe Federal Aviation Administration while conducting all parachute jumps. 13. SkyDive MB agrees to comply with all applicable local, state and local statutes, rules and regulations including, but not limned to, those relating to tax, fire, building and safety matters.

HCDA·000001111. SkyDive MB agrees to oomply with all applicable local, state and federal environme",ell statutes and regulations, including but not limited to, requirements for the disposal of waste all and other potentially hazardous substances. 15. At the end of each year Ramp 66 will provide SkyDive MB a Form 1099 showing the gross income directly paid to Ramp 66, excluded internet sales and merchandise sales paid directly to SkyDive MB are its separate responsibility to report to Internal Revenue Service. 16. Grand Strand Aviation and Harry County hereby expressly disclaim anyand al1liability for the parachute operation. SkyDive MB hereby waives any and,all claims It may have against Grand Strand Aviation and Harry County, its shareholders, officers, directors or other agents for any and all personal injury, property damage or other damages it may incur by virtue of utilizing Grand Strand Aviation's leased property or the Grand Strand Airport. 17. SkyDive MB hereby agrees to indemnify and hold harmless from and against all claims, actions, causes of action, damages, costs, and othsr requests for compensation, arising out of, or caused by, SkyDive MB actions. This indemnity specifically includes, but is not limited to, damages to Grand Strand Aviation's leased property. 18. This agreement remains in effect through Grand Strand Aviation's lease with Harry County Department of Airports through Juty 2020 unless both parties agree to any changes in writing.**Sho~ld** the Gr<l.nd Strand Aviation lease be extended, renewed, orotherwise modified beyond July 202Q, SkyDive MB has the right to extend this agreement on these terms to that lease at SkyDive MB's oplion. 19. Grand Strand Aviation reserves the right to cancel this agreement if SkyDive MB does not materially comply with the terms of this agreement. Likewise,·SkyDive MB reserves the right to cancel this agreement should Grand Strand Aviation does not materially comply with the terms ofthis agreement. 20. Grand Strand AViation, Inc., its officers, directors, employees and shareholders agree not to directly nor indirectly compete with SkyDive MB, and shall not operate any competing parachutejumping or Similar operation anywh"re within the counly.in which Myrtle Beach and N01'lh Myrtle Beach are located for a period of eight years afterthis agreement expires, is not extended, or is cancelled by either party. In the event this noncompete clause and agreement are litigated, the prevailing party shall recover its attorney lees. Agreed May**~,** 2012, by Grand Strand Aviation, Inc. dba Ramp 66 and SkyDive My1'lle Beach, LLC by the parties belDw who are authorized to enter into this agreement.

Andrew E.R. Lee, Officer SkyDive Myrtle Beach, LLC 

### gi;) rt P. McGroarty: Secretaryrrreas rer Grand Strand Aviation, Inc.

HCDA-DDDDD2

# eRE 

# Sot18 GRAND STRAND AIRPORT SPACEUSE PERMIT 

# LD(1 4 TIDS SPACE USE PERMIT ("Permit") is made and

### en~red into as ofthe 

### Ii' day of 

## s" Prbwl

## 6orL. 2013, by and between HORRY COUNTY, SOUTH CAROLINA, ACTING BY AND THROUGH ITS DEPARTMENT OF AIRPORTS ("County") and SKYDIVE MYRTLE BEACH, LLC ("Company"), a business entity formed and existing under the laws ofthe State of North Carolina, and authorized to do business in Horry County, South Carolina. WITNESSEm WHEREAS, County is the operatorofthe Grand Strand Airport ("Airport"); and WHEREAS, Company desires to occupy and use space in Hangar #7 located on Grand Strand Airportproperty, to conduct its "Skydiving andNon-Emergency Parachute Operation" business; and WHEREAS, County is willingto permit Companyto occupy and use space in Hangar #7 at Grand Strand Airport subjecttothe restrictions and terms provided herein: NOW, TIIEREFORE, County and Company agree as follows: 1. 

### SpaceUse. Countyherebypermits Companyto occupy anduse space inHangar#7consisting ofapproximately 6,800 square feet of space, together with any surrounding curtilage and parking ("Space") to be utilized for Company's" Skydiving and Non-Emergency Parachute Operation" business. 2. Term. The term ofthis Permit shall commence on August 1, 2013, and it shall continue in force and effect until January 31, 2014, but no longer than, six (6) months from the date of commencement unless otherwise earlier terminated. Prior to actual physical occupancy of Space by Company, eitherparty may terminate this Permit fur anyreason upon the giving at least five (5) days written notice to 

### the other party. After actual physical occupancy ofthe Space by Company, either party may terminate this Permit fur any reason by giving at least thirty (30) days written notice to the other party. Any act ofdefault hereunder, including withoutlimitation failure to pay fees whendue, shallterminate anyright, license orpermission fur use of Space inunediately upon event ofdefault. lbis Permit shall not be renewed or extended, nor shall another such Permit be entered into between the same parties within twelve (12)months from the date ofexpiration ofthis Permit, withoutpriorapproval ofHorry County Council. 3. Use. Duringthetermhereof, Company shall occupyanduse SpacepermittedbyCountysolely in connection with its" Skydiving and Non-Emergency Parachute Operation" business atthe Grand Strand Airport to the extent permitted by and fully in compliance with all applicable rules, regulations, and requirements ofany Federal, State; City or County regulatory agency havingjurisdictionoverthe Company's operations, subjectto 

### all terms and conditions ofthis agreement. Company's employees and customers willhave reasonable accessto and from and

1

HCDA-000003

### , 

### ,

the right to use and occupy Space for the solepurpose ofengaging in or furthering Company's business. Company's employees must be well groomed and neat in appearance at 

### all times. The Director ofAirports must approve all signs and displays to be erected on the Space. Company shall fully comply with all safety and security policies/directives as established by the Airport. 4. Fee; DefaultInterest; LatePaymeut; SecurityDeposit. A. Fee. 

### As the Fee for occupancy and use ofthe Space, Company shall pay County / monthly payments ofOne Thousand Two Hundred & 

### 00/100 ($1,200.00) dollars per month. Company shall pay said amounts without set-offor deduction, in advance and withoutdemand on orbefore the first day ofeachmonthduring the termhereof. In

### the eventthis Permitcommences orterminates on otherthanthe last day ofanyparticular month, the Fee shall be prorated. County reserves the right to adjust such rate from time totime uponthirty (30) days writtennoticetothe Company. B. Default Interest. If

### Company shall default in its payment ofFees or other charges required to be paid pursuant to this Permit, such unpaid amounts shall bear interest from the date ofdefault atthe rate ofI Y, %

### permonth. C. Late Payment. Company acknowledges that the late payment by Company of any monthly installment offees or other charges will cause County to incur certain costs and expenses not contemplated under this Permit, the exact amount ofwhich are difficult or impracticable to determine. Therefore, ifany such amount owing is not receivedbycountywithinten (10) days followingthe due date thereof; Company shall immediately pay to County a late charge equal to I Y, 

### % per month ofsuch amount owing, in additionto any default interestwhich may be due as provided above. To the extentthat any late charge provided for hereunder is determined to constitute interest, inno eventshall such late charges, plus any otherinterest due on sums owedtu County hereunder, ever exceedthe maximum interestrate permittedby law. 

### D. Security Deposit. To assure the faithful performance of Company's obligations hereunder, Company shall remit a deposit in the fonn ofcash, a letter ofcredit, or a paymentbond issued by areputable company licensed to issue suchbonds in the State ofSouth Carolina, in an amount equal to two (2) months ofall applicable Fees to the County, which shallbe remitted to 

### the County priortothe Company's occupancy of the Space. In

### no event shallthis security depositbe usedas paymentfor any fee setforth in A, above, withoutthe express written authorization oftheDirectorof the Horry County Department ofAirports. 5. Utilities 

### and Services. County shall supply access to water, natural gas and electricity to the extent and capacity ofthe currently existing mains, lines, transformers, andpanels. Company shall be solely responsible for the payment ofall utility charges, telephone, trash removal, hazardous waste removal and other services used by Company in oronthe Space, to include hook-up fees, advanced deposits orothersuchcosts, regardless ofwhetherthe utility charge is

2

HCDA·000004incurred inthe name ofCompany or County. Company shall accept transfer ofall applicable utility meters to Company's name when so tendered byCounty. Inthe event Company incurs anyutilitycharge inthe name ofCounty, Company shallreimburseCountyforthe full amount ofthe charge within five (5) calendar days ofthe date ofwritten notice to Company ofthe amount ofthe charge. County assumes no'responsibility for interruption ofsuch services for any reason whatsoever. Company agrees to pay County One Hundred & 00/100 Dollars ($100.00) permonth as an additional fee, which may be adjustedperiodically bythe County for utilities. The utility ree is included in the monthly fee specified inparagraph4A. 4. CleaningandMaintenance.Company, atits sole costand expense, shallkeepthe Spaceina clean, neat and orderly condition at all times, and shall be responsible for maintaining all non-structural elements, including without limitation plumbing and IN AC. Company understands that it is responsible for the conduct of its guests, permittees, invitees, and licensees on the premises. Company shall not store any personal property exterior to the building on the unimproved premises associated with the building. Company is prohibited from taking any action which would negate orvoid thewarranty on the roofs ofany building within its Space. 5. Alterations. Company maynot make any alteration, addition, or improvement to the Space withoutthepriorwritten approval oftheDirectorofAirports. Company shall submit awritten request for permission to perform such alterations, which shall include a description ofthe improvements, a site plan, and anyotherdocumentationrequestedbythe DirectorofAirports to demonstrate the suitability ofthe improvements or alterations. Unless County elects otherwise, all permanent alterations, additions, or improvements to the Space shall become the property of County upon termination. In the event County so elects, such permanent alterations shall be removed by Company at its own cost and expense prior to date of termination. Company shall repair any damage to Space caused by such removal at its own cost. All agreed upon improvements mustbe made in a workmanlike manner, in accordance with all applicable statutes, ordinances, rules and regulations, including without limitation applicable building codes, and may be made only upon written approval of County's department ofAirports afterreview ofcomplete plans for such improvements. 6. 

### Right ofEntrv. County shallhave therightto enter the Space atany time for any reasonable purpose. 9. Compliancewith Law. A. General Compliance. Company will comply with all applicable statutes, ordinances. rules. regulations. orders and directives ofany governmental authority, including County, in its occupancy and use ofthe Space. B. Acceptance ofPremises. Company accepts the Space in its "as-is" condition and County 

### has no obligation to improve, repair, restore, or alter any portion ofthe Space. Company acknowledgesthatneitherCountynoranyagent, employee, director orofficial ofCounty has made any representation orwarranty, except as otherwise expressly provided in this Permit, with respect to the Space including, without limitation, any representation or warranty with

3

HCDA-000005

### respectto the suitability or fitness ofthe building or any portionthereofforthe conduct of Company's business. C. JurisdictionofOtherAgencies. IfCompany's activities andoperations shallinanywayfall within the jurisdiction or regnlatory authority of other governmental agencies, including without limitation the South Carolina Department ofHealth and Environmental Control ("DHEC"), Company must secure and produce evidence ofsuch agency's fmalapproval of such operations or occupancy ofSpace. 

### Ifsuch activities and operations fall outside DHEC's jurisdiction, Company shall procure and submit to County the statement ofan appropriately authorized DHEC representative to that effect. Company acknowledges that 

### its representations and warranties pursuant to this subsection are material to the County's agreementto permitthe Company's use ofthe Space. 10. Release and Indemnity. A. 

### Release. Company hereby releases County from any liability to Company for any loss or damage to any property of Company, its officers, directors, employees, agents, customers, concessionaires, vendors, contractors orinvitees, and forthedeathorinjuryof any officers, directors, employees, agents, customers, concessionaires, vendors, contractors orinvitees ofCompany, occasionedbytheft, fire, acts ofGod, public enemy, injunction, riot, strike, insurrection, war, governmental body or authority including County, orany othermatterbeyondthe control ofCounty, orfor any injury or damage or inconvenience which may arise through repair or alteration ofany part ofthe Space, or failure to make repairs, orfor any causewhatsoever, exceptthe solenegligence orwillful misconduct ofCounty. B. 

### Indemnity. Company hereby releases and will defend, indemniJY and hold harmless County, its departments, agencies, boards, commissions, committees, officers, directors, employees, and agents and assigns ofany ofthem ("Indemnified Parties") from and against any and all liability, claims, penalties, fmes, causes ofaction, suits, liens, losses, loss ofuse, damages, costs and expenses ofany kind (including legal fees and litigation costs) which may be suffered by, accrued against, be charged to orbe recoverable from the Indemnified Parties byreason of: (I)

### any occurrence, in, upon, oratthe Space, howevercaused, orany causeofaction of any nature whatsoever, in law orequity, arising out ofor incidental to this Permit or the use or occupancy ofthe Space; andlor (2) any occupancy, use, ormisuse ofthe Space, orthe areas surroundingthe Space, or the service areas, parking areas, pedestrian areas, pedestrian walks ordriveways in or around the Space, by Company, its officers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees, including without limitationuses or misuses whichmayrenderthe premises subjecttotheAmericans withDisabilities Act inwhole or in part; andlor (3) any violation ofany law, regnlation or ordinance by Company or its employees,

4

HCDA-000006arising from acts or omissions ofCompany, its agents and employees, (C) liability for any damage or

### harm resulting from any release ofany hazardous materiaL as that term is defined bytheUnited States Environmental ProtectionAgency, including, but not limited to, costs of remediation or mitigation of such release of hazardous materials, and (D) Workers Compensation claims to the limits required by the State ofSouth Carolina. Said insurance shall bemaintained throughoutthe term of this Permitwith an insurance company acceptable to Countywith liability limits ofatleast $2,000,000.00. Thepolicy orpolicies shall contain a contractual liability endorsement expressly covering the indemnification provisions of Section 10 ofthis Permit. Company shall also purchase, at its own cost and in its sole discretion, such business interruption or other insurance to protect Company's interest inthe eventofmajor orminor damage or disasterto the Space. This Permit shall not become etrective until User shall provide to the HCDA a copy of certificate(s) evidencingthe above insurance. Thecertificate ofinsurance shallprovidethat no material alteration, reduction, ortermination ofcoverage shall occur without the insurance carriergivingCountyatleastthirty(30) days'writtennotice priorto suchalteration, reduction, ortermination. 12. SubUlie and Assignment. Company shall notallow any other entity to occupy or use any of the Space without the written consent ofthe Horry County Department ofAirports and no attempted assignment ofthisPermit byCompany shallbe effective. 13. GOVERNING LAW. TillS PERMIT SHALL BE GOVERNED BY AND CONSTRUED UNDERTHE LAWS OFTHE STATE OF SOUTH CAROLINA. This Permit is not subject to alternative dispute resolution exceptwhere orderedby a court ofcompetentjurisdiction or required by operation oflaw. The forum for any action or claim brought as a result ofthis contract shall be the Court ofCommon Pleas, Horry County, South Carolina. 14. Entire Agreement/Amendment. This Permit constitutes the complete agreement of the parties with respect to the subject matter hereof and supersedes all previous agreements, representations and understandings concerning the same, whether written or oral. The provisions ofthe Permit may be modified, amended or waived only by a written instrument executedby County and Company. 15. Termination ofPermit. Inthe event oftermination ofthis Permitby either Party, Company shallpromptly causeto beremovedallpersonalpropertyfrom the Space. Anypropertyleft on Airport premises by Company and remaining there fifteen days after the date on which Companyeithervacated the Spaceorshould havevacatedthe Space accordingtothe notice of tennination sentbythe terminatingparty, maybe deemed, atthe sole and exclusive option of the Airport, abandoned. Once so deemed, such property shall become the exclusive property of the County and may be disposed of as such in accordance with applicable statutes, ordinances, andCounty'procedures. Alternatively, Countymayhave suchpropertyremoved, at Company's sole expense. 16. Operating Permit. The terms and conditions for both the "Space Use Permit" and the "Operating Permit" must be adhered to without default to either agreement. Defuult ofany

6

HCDA-000007" '"



### terms or conditions by

### either agreement, constitutes defaultonboth the "Space Use Pennit" and 

### the 

### "OperatingPermit". 17. 

### Notices.Anynoticesrequiredorsenthere1D1dershallbeinwritingandsba1lbe

### sentasfollows: As to 

### County: Harry CountyDepartmentofAirports 1100 Jetport

### Road 

### MvrtIe Beach, SC 29577 

### ATTN: DirectorofAirports As to 

### Company: Skydive Myrtle Beach

### ILC 

### P.O. Box2478 Wilmington, NC 28402 

### Attn: Aaron S. Holly Either party ftom time to 

### time 

### may change its address by 

### written notice 

## to the other party. Notices hereunder 

### shall be 

### deemed effective when delivered by 

### hand delivery or overnight courier, orthree 

### days after

### depositintheUnited Statesmail, firstclass,postageprepaid. 18. 

### License. This 

### SpaceUsePermitisintendedbytheparties, andsba1Ibe

### interpretedas, alicense to use the 

### designated Space, and 

### shall under no circmnstances be 

### deemed or construed as a lease of real property,

### norsba1I

### the relationshipbetweentheparties, astothedesignated Space, be 

### deemedthat

### ofIandiordandtenant. This 

### Permitis not acontractand does not give, 

### assign, or otherwise tmnsfer from the Coonty to 

### the Company any interest in real property, but is 

### a mere license, revocable atthewill 

### ofthe County.
WITNESS the signatures ofthe 

### parties as ofthe date first

### writtenabove.

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ATTEST: SKYDI 

### By:.
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### Its:

### ~

7

HCDA-000008"' 

## , " SKY DIVE' -"ITLE BEACH LLC r 9) 792"()743 303:.: •,..,US RIVER AVE

RALEIGH, Ne 27614

FOR
______**-,~~~~----------** DATE 

### 1332 

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HCDA-000009

## CERTIFICATE OFINSURANCE This ccrtir",ate is givenas a_ ofinformaliononly andconfers norights uponlb.eenJlicateholder.
Date: September6, 2013 This

### is 10

### comlY 10:



### ToWhomItMay

### Concern tballhepolicyJistedbelowis issued 10the foDowing forthe period indicated byLloyd'sUnderwriters:



### SkydiveMyrtle Beach, ILC 2800Terminal Street 

### NorthMyrtle Beach, SC 29582 

### PREMISE LIABILITY INSURANCE
Poli·rNo

. BA-13-09-00067 PolicyPeriod: from Septermber5, 2013toSeptember5, 2014 

### Coveruee's Limits ofLiability General Aggregate Limit $ 2,000,000Aggregate
Eacb OccorrenceLimit S 1,000,000


### REMARKS
CityofNorthMyrtle BeachandTheCity

### ofMyrtle BeachandMyrtle BeachAviation areincludedas additional insured's. ,
Nothwithstanding any requirement. term or condition of any contract or other document with respect to which this certificate may be issued or may pedain, the insurance a!folded by the policy deseribed herein is subject 10 an the lenns, exclusions and conditions ofsuch policy. This: certificatedoes netamcndt extendorotherwise alterthecoverage's afforded bythe polic.yde£Cribedherein. Limits.mayhavebeenreducedby-paid claims.

AVIATION INSUMNCE REPRESENTATIVES, INC. 8975 VANNS TAVERNROAD GAINESVILLE, GEORGIA 30506 (678)947-1780 FAX:(678)947.1781 CertificateNo. 1
Certifieate Effe<tive Dale: 9-5-2013

HCDA·000010STATE OF SOUTH CAROLINA) COUNTY OFHORRy)OPERATING PERMITTO PROVIDE SKYDIVING AND NON-EMERGENCY PARACHUTE OPERATIONS TOTHE GENERAL PUBLIC AT THE GRAND STRAND AIRPORT

THIS OPERATING PERMIT, made and entered into this

# J~day of.I\uG:1Y.i>" ,2013 by and between Horry County, a body politic ("County"), owner and opei'ator ofthe Grand Strand Airport ("Airport") in North Myrtle Beach, South Carolina and Skydive Myrtle Beach, LLC a corporation organized and existing under the laws ofNorth Carolina ("Company"), shall govern the relationship ofthe parties, wherein County agrees to permit Company to perform "Skydiving and Non-Emergency Parachute Operations" atthe Grand Strand Airport as to the terms and conditions set forth below: WITNESSETH: WHEREAS, County is the owner and operator ofthe Airport, located in North Myrtle Beach, South Carolina; and WHEREAS, Company is engaged to perform "Skydiving and Non-Emergency Parachute Operations" atthe Grand StrandAirportbasedon the terms and conditions set forth below; and WHEREAS, Company wishes to use the aeronautical facilities of the Grand Strand Airport in connection with its "Skydiving and Non-Emergency Parachute Operations" at the Grand Strand Airport; and WHEREAS, the terms and conditions for both the "Space Use Permit" for the space inHangar#7 at the Grand Strand Airport and the "Operating Permit" must be adhered to without default to either agreement. Default ofany terms or conditions by either agreement, constitutes default on both the "Space Use Permit" or lease and the "OperatingPermit". NOW,THEREFORE, in consideration ofthe promises hereinafter contained, County and Company agree as follows: "- 

### 1. Term ofPermit. The term ofthis Permit shall be a period ofsix (6) months, and shall run from August I, 2013 through January 31, 2014. Thereafter, this Permit shall automatically be extended/renewed on a month-to-month basis upon the same terms and conditions contained herein, with the exception of fee payment as set forth below, unless terminated under the provisions ofthis paragraph. Eitherpartymay terminate this Permit atanytimeby serving written notice upon the otherparty at leastthirty (30) days in advance ofthe effective date oftermination. 2. PermitArea:Use. Company mayuse thepermitted facilities attheAirportsolelyin connection with its business ofproviding "SkydivingandNon-EmergencyParachute Operations" atthe Grand Strand Airport.

1 HCDA-0000113. Permit Fee. Company will pay County a non-refundable annual fee of Three Thousand ($3,000.00) Dollars, which will be pro-rated for six (6) months in the amount ofFifteen Hundred Dollars ($1,500.00), which allows Company to operate which will be at the discretion ofthe Airport Director, payable on or before August I, 2013. After the initial term, this Permit will continue on a month-to-month basis unless otherwise terminated, Company to pay to County 

### 1I12th ofthe annual fee set forth above without demand, and without set-off or deduction, in advance ofor before the first day ofeach month the Permit may continue. County reserves the rightto adjust such fee from time to time uponthirty (30) days written noticeto the Company. 10 the eventthe Permit terminates on otherthan the last day ofany particularmonth, the fee shall be prorated. Failure to pay by the first of each month shall constitute an event of default. Late paymentchargesofoneand one-halfpercent (IY, %)willbeassessed on all overdue accounts after the tenth (10") day ofeachmonth, payment ofwhich willnotexcuse default. 4. Space Use Premises. The County herebypermits Companyto occupyand use space in Hangar #7 consisting ofapproximately Two Thousand-Five Hundred (2,500) square feet, together with any surrounding curtilage and parking ("Space") to be utilized for Company's "Skydiving and Non-Emergency Parachute Operations to the General Public". 5. Laws. Rules. Regulations and Procedures. Company shall observe and comply with all Federal, State and local laws, rules, and regulations, all County and City ordinances, and business license requirements, and all directives ofthe Harry County Department ofAirports, which now existor which may be hereinafter be enacted or adopted. Company will obtain, and provide upon request copies to the County, through its Department of Airports, all licenses, permits and authorizations, as maybe necessary andproper, at Company's sole cost. 6. Hold Harmless and Indemnification. Company shall protect, defend (with counsel satisfactory to County), indemnify, and hold County, its Council members, advisory board members, officers, agents, employees and assignees harmless from andagainst anyand all claims, debts, liabilities, losses, judgments, penalties, fines, costs, damages, expenses (including reasonable attorney fees, court costs and expert fees), or demands arising by reason ofinjury or deathofanypersonor damage to anyproperty, oranycause ofaction ofany nature whatsoever, in law or equity, arising out ofor incidental to this Permit or the use ofthe Airport, or the acts or omissions of Company or Company's directors, officers, agents, employees, contractors, subcontractors or licensees; however, said indemnity shall not apply to any injury, death, or damage caused by the sale negligence or willful misconduct of County. The provisions ofthis section shall survivethe expiration orearly termination ofthis Permit. 7. EnvironmentalIndemnification. Company shall indemnity, defend (with counsel satisfactory to County), and hold County, its council members, officers, employees, agents, assigns, and any successors to County's interest in the Airport, harmless from and against any and all loss, cost, damage, expense (including reasonable attorney fees), claim, cause ofaction,judgment, penalty, fine or liability, directly or indirectly, relating to or arising from the use, storage, release, discharge, handling, or presence of Hazardous Materials on, under, or about the Airport in violation of Company's obligations under this Permit ("Hazardous Materials Release"). This indemnification shall include without limitation (a) personal injury claims, (b) the payment of liens, (c) diminution inthe value oftheAirport, (d) damages for the loss orrestriction on use ofthe Airport, (e) sumspaidin settlementofclaims, (f) actual attorneys' fees, conSUlting fees, andexpert

2 HCDA-000012fees, (g) the cost ofany investigation ofsite conditions, and (h) the cost ofany repair, cleanup, remedial, removal, or restoration work or detoxification if required by any governmental authorities or deemed necessary in County's reasonablejudgment. County shall have the right but not the obligation tojoin and participate in, and control, ifit so elects, any legal proceedings or action initiated in connection with the Hazardous Materials Release. County may also negotiate, defend, approve, andappealanyactiontaken orissuedbyanyapplicable governmental authorities withregardto aHazardousMaterials Release. Anycosts orexpenses incurredby Countyforwhich Company is responsible under this Paragraph orfor which Company has indemnified County, (i) shall be paid to County on demand, during the term ofthis Permit as an additional fee; and, (ii) from and afterthe expiration orearliertermination ofthe Permit shall be reimbursed by Company on demand. Company's obligations pursuant to the foregoing indemnity shall survive the expiration or termination ofthis Permit and shall bind Company's successors and assignees and inure to the benefit ofCounty's successors and assignees. 8. Insurance. Company agrees to carry and keep in force a policy or policies ofpublic liability insurance throughout the term of this Permit, with an insurance company or companies of recognized responsibility and acceptable to the County, covering the bodily injury and property damage IiabilitythatCompanyhas agreed bythis Permitto hold the County, its Council members, directors, agents, officers, and employees harmless against and to indemnify. Company agrees to carry and keep in force such insurance with limits of liability for death, personal injury and property damage in an aggregate sum equal to not less than two million ($2,000,000.00) Dollars. Said policy or policies shall name the County as an additional insured to the extent of the indemnification obligation hereunder. A certificate or certificates evidencing such insurance coverage shall be filed with the Countyprior to the date Company commences USe ofthe Airport and said certificate or certificates shall provide that such insurance coverage will notbe canceled, reduced or materially changed without at leastthirty (30) days prior written notice to the County. At leastthirty (30) days prior to the expiration ofany such policy, a certificate showing that such insurance coverage has been renewed or extended shall be filed withthe County. Ifsuch coverage is canceled, reduced or materially changed, Company shall, within ten (10) days after receipt of written notice, file withthe County a certificate or certificates showingthatthe required insurance has been reinstated or providedthrough another insurance company orcompanies. 9. Non-Discrimination. A. Company warrants that it will undertake an affirmative action program in conformance with 14 CFR Part 152, Subpart E, to insure that no person shall, on the grounds ofrace, creed, color, national origin, or sex, be excluded from participating in any employment, contracting, or leasing activities covered in 14 CFR Part 152, Snbpart E. Company assures that no person will be excluded on such grounds from participating in or receiving the services or benefits of any program or activity covered by Subpart E. Company further agrees that it will require that its covered sub-organizations provide assurances to Company that they similarly will undertake affirmative action programs and that they will require like assurances from their sub-organizations, as required by 14 CFRPart l52, Subpart E. B. Company agrees to comply with any affirmative action plan or steps or equal employment opportunityrequiredby 14 CFRpart 152, subpartE, as partofthe affirmative actionprogram, and by any Federal, State, or local agency or court, including those resulting from a conciliation

3 HCDA·000013may be modified, amended or waived only by a written instrument executed by County and Company. 14. Notice. Whenever any notice is required bythis Pennit to be made, given or transmitted to the parties hereto, such notice shall be deemed to have been given ifenclosed in an envelope with sufficient postage attached, and sent by certified mail and deposited in the United States Mail addressed to: A. As to Horry County: Horry County Department ofAirports 

### 11 00 JetportRoad Myrtle Beach, SC 29577 Attention: DirectorofAirports B. As to Company: Skydive Myrtle Beach LLC 

### A 1'.0. Box 1478 $00).'- FP.L.LSo (2.,Ve1L IJe. Wihnhlgtoll,**l~e** 28462**~A** L-€II;"" , N.C.. Z."7 "Il!- Attn: Aaron S. Holly 

### 15. No PossessoryInterestinPremises. Company is notgranted anypossessoryinterest orlicense inanypremises at the Grand Strand Airport underthis Permit. INWITNESS THEREOF,the parties have causedthis Permitto be executed bytbeir duly authorized officers the day.and year first above-written.

ATTEST:

ATTEST:

5 HORRY COUNTY

# BY:~~~-~ Its: 

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SKVrtMYRTLE

### B~'ACH By:

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HCDA-000014

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HCDA-000015HCDA-000016HCDA-000017

### •
GRAND STRANDAIRPORT SPACE USEPERMIT 

# r fE. E:)( eCuTI 

## V€

## Het.lc.o~ THIS SPACE USE PERMIT ("Pennit") is made and entered into as ofthe 

## 15,r day of 

# A-vtftl""''l- 2013, by and between HORRY COUNTY, SOUTII CAROLINA, ACTING BY AND THROUGH ITS DEPARTMENT OF AIRPORTS ("County") and EXECUTIVE HELICOPTERS ("Company"), a business entity fonned and existing underthe laws ofthe State of South Carolina, andauthorized to do business in Horry County, South Carolina. WITNESSETH WHEREAS, Countyisthe operatorofthe Grand Strand Airport ("Airport"); and WHEREAS, Company desires to occupy and use space in Hangar# 10 (County Hangar) located on Grand StrandAirportproperty, to conduct its "HelicopterTour Service" business; and WHEREAS, County is willing to permit Companyto occupy anduse space in Hangar

### # 10 (County Hangar) atthe Grand Strand Airport, subjectto the restrictions andtennsprovided herein: NOW, THEREFORE, County and Company agree as follows: 1. SpaceUse. County herebypermits Companyto occupy and use office and hangar space for one helicopter in Hangar

### # 10 (County Hangar), together with any surrounding curtilage and parking ("Space") to be utilizedfor Company's "HelicopterTour Service" business. 2. Term. The term ofthis Permit shall commence on August 1, 2013, and it shall continue in force and effect until January 31, 2014, but no longer than, six (6) months from the date of commencement unless otherwise earlier terminated. Prior to actual physical occupancy of Space by Company, eitherparty mayterminate this Permit for any reason upon the giving at least five (5) days written notice to the other party. After actual physical occupancy ofthe Space by Company, eitherparty mayterminate this Permit for any reason by giving at least thirty (30) days written notice to the other party. Any act ofdefault hereunder, including withoutlimitationfailure topayfees whendue, shallterminateanyright, license orpennission for use of Space immediately upon event of default. This Permit shall not be renewed or extended, nor shall another such Pennit be entered into between the same parties within twelve (12)months from the date ofexpirationofthisPermit, withoutprior approval ofHorry County Council. 3. Use. DuringtheteTIn hereof; Companyshalloccupyanduse Space permittedbyCounty solely in connection with its "Helicopter Tour Service" business at the Grand Strand Airport to the extent permitted by and fully in compliance with all applicable rules, regulations, and requirements ofanyFederal, State, CityorCountyregulatory agency havingjurisdictionover the Company's operations, subjectto all terms and conditions ofthis agreement. Company's employees and customers will have reasonable access to and from and the right to use and occupy Space for the sole purpose of engaging in or furthering Company's business.

1

HCDA·000018Company's employees must be well groomed andneat in appearance atall times. TheDirector ofAirports must approve all signs and displays to be erected on the Space. Company shall fully comply with all safety and securitypoliciesfdirectives as establishedbythe Airport. 

### 4. Fee; DefaultInterest; LatePayment; Secnrity Deposit. A. Fee. As the Fee for occupancy and use of the Space, Company shall pay County monthly payments of Three Hundred Twenty-five & OOflOO ($325.00) dollars per month. Company shall pay said amounts without set-offor deduction, in advance and without demand on orbefore the first day ofeachmonth duringthe termhereof. In the eventthis Permit commences orterminates on otherthanthe lastday ofanyparticular month, the Fee shall be prorated. County reserves the right to adjust such rate from time to time uponthirty (30) days written notice to the Company. B. Gross Sales PercentageFee. Foreachmonthduringthetermhereofand in additionto the monthly base occupancy and use ofthe Space fee, Company shall pay County, as additional fee, a monthly adjustment amount which shall be the difference, ifany, between the monthly occupancy and use ofthe Space base fee to be paid during said month and five (5%) percent ofthe gross sales during each such occupancy month, whichever is greater. Gross sales include, without limitation, the gross selling price of all merchandise, services, concessions, or privilegesthat occurinwhole orin part, onthe Space, or as a result of activities on or associated with the Space, during the term ofthis Permit including the gross charges of all services to customers or patrons performed by Company orany otherperson, entity, firm or corporation, in, upon, orthroughanypart ofthe Space duringthe termofthisPermit and all sales/servicesthat are subjectto the South Carolina amusement, sales, use or excise.tax set forth in Title 12 ofthe South Carolina Code ofLaws, 1976, as amended. Notwithstanding anything herein to the contrary, gross sales shall not include the amount of any amusement, sales, use or excisetaxes paidbyCompanyduring such term ofthis Permit. C. PaymentofFee andGross SalesPercentageFee. The Fee shallbepaidin aidamounts without set-offor deduction, in advance and withoutdemand onorbefore the first day ofeachmonth duringthetermhereoffrom andafterthe CommencementDate. The Gross Sales Percentage Fee, ifdue, shallbepaidwithinten (10)days ofeachmonth following a calendar month occurring from and after the Commencement Date throughtheexpirationorterminationofthisAgreement, atwhichtimeLesseeshall provide Lessor, without demand, a statement of Gross Receipts for the prior calendar month together with the amount, if any, by which the Gross Sales Percentage Fee duefor the previous calendar year exceeds theFee. D. Default Interest. 

### IfCompany shall default in its payment ofFees or other charges required to be paid pursuant to this Permit, such unpaid amounts shall bear interest from the date ofdefault atthe rate of1 Y, 

### %permonth.

2

HCDA·000019E. Late Payment. Company acknowledges that the late payment by Company of any monthly installment offees or other charges will cause County to incur certain costs and expenses not contemplated under this Permit, the exact amount of which are difficult or impracticable 

### to determine. Therefore, ifany such amount owing is not received bycountywithinten(10) days followingthe due datethereof, Company shall immediately payto County a late charge equal to I 

### Yz % per month ofsuch amount . owing, in additionto any defaultinterestwhichmaybe due asprovided above. To the extentthat any late charge provided for hereunder is determinedto constitute interest, inno event shall suchlate charges,plus anyotherinterestdue on sums owedto County hereunder, ever exceedthe maximum interestrate permitted bylaw.
F. Security Deposit. To assure the faithful performance of Company's obligations hereunder, Company shall remit a deposit in the fonn ofcash, a letter ofcredit, or a payment bond issuedbya reputable companylicensed to issue suchbonds in the State ofSouth Carolina, in anamount equal to two (2) months ofall applicable Fees to the County, which shallbe remitted

### tothe CountypriortotheCompany's occupancy ofthe Space. Inno event shallthis securitydepositbeusedaspaymentfor anyfee setforth in A, above, withoutthe expresswritten authorization ofthe DirectoroftheHorry County Department ofAirports. S. Utilities and Services. County shall supply access to water, natural gas and electricityto the extentand capacity ofthe currently existingmains, lines, transformers, andpanels. Company shall be solely responsible for the payment ofall utility charges, telephone, trash removal, hazardous waste removal and other services used by Company in or on the Space, to include hook-upfees, advanceddepositsorother suchcosts, regardless ofwhetherthe utilitycharge is incurred in the name ofCompanyorCounty. Company shall accepttransfer ofall applicable utility meters to Company's name when so tenderedby County. Inthe event Company incurs anyutility charge inthename ofCounty, Company shallreimburse Countyfor thefull amount ofthe charge within five (5) calendar days ofthe date ofwritten notice to Company ofthe amount ofthe charge. County assumes no responsibility for interruption ofsuch services for anyreasonwhatsoever. 4. CleaningandMaintenance.Company, atits sole cost and expense, shallkeepthe Spaceina clean, neat and orderly condition at all times, and shall be responsible for maintaining all non-structural elements, including without limitation plumbing and HVAC. Company understands that it is responsible for the conduct of its guests, permittees, invitees, and licensees on the premises. Company shall not store any personal property exterior to the

.building on the unimproved premises associated with the building. Company is prohibited

from taking any actionwhichwould negate orvoid the warranty onthe roofs ofanybuilding within its Space. 5. Alterations. Company may not make any alteration, addition, or improvement to the Space withoutthepriorwrittenapproval ofthe DirectorofAirports. Company shall submitawritten request for permission to perform such alterations, which shall include a description ofthe improvements, a siteplan, and any otherdocumentationrequestedbythe DirectorofAirports

3

HCDA·000020to demonstrate the suitability of the improvements or alterations. Unless Connty elects otherwise, all permanent alterations, additions, or improvements to the Space shall become the property of County upon termination. In the event Connty so elects, such permanent alterations shall be removed by Company at its own cost and expense prior to date of termination. Company shall repair any damage to Space caused by suchremoval atits own cost. All agreed upon improvements mustbemade in a workmanlike manner, in accordance with all applicable statutes, ordinances, rules and regulations, including without limitation applicable building codes, and may be made only upon written approval of Connty's department ofAirports after review ofcompleteplans for such improvements. 6. RightofEntry, County shallhavethe rightto enterthe Space, at any timefor any reasonable purpose. 

### 9. Compliancewith Law. A. General Compliance. Company will comply with all applicable statutes. ordinances. rules, regulations. orders and directives ofany governmental authority, including County, in its occupancy anduse ofthe Space. B. Acceptance ofPremises. Company accepts the Space in its "as-is" condition and Connty has no obligationto improve, repair, restore, or alter any portion ofthe Space. Company acknowledges that neither Countynor any agent, employee, director or official ofConnty has made any representation or warranty, except as otherwise expressly provided in this Permit, with respect to the Space including, without limitation, any representation or warranty withrespect

### to the suitability or fitness ofthe building or

### any portionthereoffor the conduct of Company's business. C. JurisdictionofOtherAgencies. IfCompany's activities and operations shallin anywayfall within thejurisdiction orregulatory authority ofother governmental agencies, including without limitation the South Carolina Department ofHealth and Environmental Control ("DHEC"), Companymust secure andproduce evidence ofsuch agency's [mal approval of such operations or occupancy of Space. If such activities and operations fall outside DHEC's jurisdiction, Company shall procure and submit to County the statement of an appropriately authorizedDHEC representativetothateffect. Company acknowledges that its representations and warranties pursuant

### to this subsection are material to the County's agreement topermitthe Company'suse ofthe Space. 10. Release and Indemnitv. A. Release. Company hereby releases County from any liability to Company for any loss or damage to anyproperty ofCompany, itsofficers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees, and for the death or injury of any officers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees ofCompany, occasionedbytheft, fire, acts ofGod,publicenemy, injunction, riot,

4

HCDA·000021strike, insurrection, war, govemmental body or authority including County, or any other matterbeyond thecontrol ofCounty, or for anyinjury ordamage orinconvenience which mayarise throughrepairoralterationofanypartofthe Space, orfailure to makerepairs, or for anycause whatsoever, exceptthe sole negligence orwillful misconduct ofCounty. B. Indemnity. Company hereby releases and will defend, indemnify and hold harmless County, its departments, agencies, boards, commissions, committees, officers, directors, employees, and agents and assigns of any of them ("Indemnified Parties") from and against any and all liability, claims, penalties, fines, causes ofaction, suits, liens, losses, loss ofuse, damages, costs and expenses ofany kind (including legal fees and litigation costs) whichmaybe sufferedby, accrued against, be chargedto orbe recoverablefromthe IndemnifiedParties byreasonof: (1) anyoccurrence, in, upon, or attheSpace,however caused, oranycauseofaction of, any nature whatsoever, in law or equity, arising out ofor incidental to this Permit or the use oroccupancy ofthe Space; and/or (2) any occupancy, use, ormisuse ofthe Space, orthe areas surroundingthe Space, or the service areas, parking areas, pedestrian areas, pedestrianwalks or driveways in or around the Space, by Company, its officers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees, including without limitation uses or misuses which mayrenderthepremises subjecttothe Americans withDisabilitiesAct inwhole orinpart; and/or (3) any violation ofany law, regulation or ordinance by Company or its employees, officers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees; and/or (4) any occurrence arising in whole or in part out ofthe negligent act, or negligent failure to act, of Company, its officers, directors, employees, agents, customers, vendors, cohtractors orinvitees. The provisions ofthis section shall survive the expiration orearlytermination of this Permit.

C. Environmental Indemnification. Company shall also indemnify, defend (with counsel satisfactoryto County), andhold County, its departments, agencies, council, boards, commissions, committees, members, officers, directors, employees, and agents and assigns ofany ofthem harmless from and against any and all loss, cost, damage, expense, claim, cause ofaction,judgment,penalty, fine or liability, directly orindirectly, relatingto orarisingfrom the use, storage, release, discharge, handling orpresence ofHazardous Materials on, under, or about the Space orthe Airport in violation of Company's obligations under this Permit ("Hazardous Materials Release"). This indemnification shall include, without limitation, (a)personal injury claims, (b) the payment of liens, (c) diminution in the value ofthe Space, or any

5

HCDA·000022, ' building included therein, or any other property atthe Airport, (d) damages for the loss or restriction on use ofthe Space or the Airport, (e) sums paid in settlement of claims, 

### (1) actual attorneys' fees, consulting fees, court costs, andexpertfees, (g) the cost of any investigation of site conditions, (h) the cost of any repair, cleanup, remedial, removal, or restoration work or detoxification if required by any governmental authority or deemed necessary in County's reasonable judgment, (i) and any fmes associated with Company's activities. County shall have the right but not the obligation tojoin and participate in, and control, ifit so elects, any legal proceedings or action initiated in connection with the Hazardous Materials Release. Countymayalsonegotiate, defund,approve, andappeal any actiontaken orissuedby any applicable governmental authoritywithregardto aHazardousMaterialsRelease. Any costs or expenses incurred by County for which Company is responsible under this Paragraph orthis Permitandhas indemnified County, (i) shallbe paidto County on demand, during the term ofthis Permit as additional fees; and (ii)from and after theexpiration orearlierterminationofthePermitshall be reimbursedbyCompanyon demand. Company's obligationspursuanttothe foregoing indemnityshall survivethe expiration or termination ofthis Permit and shall bind Company's successors and assignees and inure to thebenefitofCounty's successors and assigns. II. InsuranceRequired. Companyagrees topurchase andkeep inforce andmaintainat all times during the term ofthis Permit, at its own expense, for the benefit ofitself and County as additionalnamedinsured, apolicyorpoliciesofinsurance, issuedbyan insurance companyof generallyrecognizedresponsibility and licensedto do business in the State ofSouth Carolina insuring against: (A) all liability for damage to or loss of Company's and its customer's property located on the Space, (B) liabilityfor property damage and personal injury or death arising from acts or omissions ofCompany, its agents and employees, (C) liability for any damage orharm resulting from anyrelease ofany hazardous material, as thatterm is defined by the United StatesEnvironmental ProtectionAgency, including, butnotlimited to, costs of remediation or mitigation of such release of hazardous materials, and (D) Workers Compensation claims to the limits required by the State of South Carolina. Said insurance shall be maintainedthroughoutthe termofthis Permitwithan insurance company acceptable to County with liability limits ofatleast$2,000,000.00. The policy orpolicies shallcontain a contractual liability endorsement expressly covering the indemnification provisions of Section lOaf this Permit. Company shall also purchase, at its own cost and in its sale discretion, such business interruption or. otherinsurancetoprotect Company's interestinthe eventofmajor or minor damage ordisaster to the Space. This Permit shall not become effective until User shall provide to the HCDA a copy of certificate(s) evidencingthe above insurance.The certificate ofinsurance shall providethatno material alteration, reduction, or termination ofcoverage shall occur without the insurance carriergiving County atleastthirty (30) days' writtennoticepriorto suchalteration, reduction, Or termination. 12. Subuse and Assignment. Company shall not allow any other entity to occupy oruse any of the Space without the written consent bfthe Harry County Department ofAirports and no

6

HCDA-000023attempted assignment ofthis Pennitby Company shallbe effective. 13. GOVERNING LAW. THIS Pennit SHALL BE GOVERNED BY AND CONSTRUED UNDERTHE LAWS OF THE STATE OF SOUTH CAROLINA. This Pennit is not subject to alternative dispute resolution except where ordered by a court ofcompetentjurisdiction or required by operation oflaw. The forum for any action or claim brought as a result ofthis contract shallbe the Court ofCommonPleas, Horry County, SouthCarolina. 14. Entire Agreement/Amendment. This Pennit constitutes the complete agreement of the parties with respect to the subject matter hereof and supersedes all previous agreements, representations and understandings concerning the same, whether written or oral. The provisions ofthe Pennit may be modified, amended orwaived only by a written instrument executedbyCounty and Company. IS. termination ofPermit. Inthe event oftermination ofthis Permitbyeither Party, Company shallpromptlycauseto be removedallpersonalpropertyfrom the Space.Anypropertylefton Airport premises by Company and remaining there fifteen days after the date on which Companyeithervacatedthe Space orshouldhave vacatedthe Spaceaccordingtothe notice of tennination sent bythe tenninatingparty, maybe deemed, atthe sole and exclusive option of the Airport, abandoned. Once so deemed, suchproperty shall become the exclusive property of the County and may be disposed of as such in accordance with applicable statutes, ordinances, and Countyprocedures. Alternatively, Countymay have such propertyremoved, at Company's sole expense. 16. Operating Permit. The tenns and conditions for both the "Space Use Pennit" and the "Operating Pennit" must be adhered to without default to either agreement. Default ofany tenns or conditions by either agreement, constitutes default on both the "Space Use Pennit" andthe "OperatingPennit". 17. Notices.Anynoticesrequired or senthereunder shallbe inwriting and shallbe sentasfollows: As to County: HorryCountyDepartment ofAirports 1100 JetportRoad MyrtleBeach, SC 29577 ATTN: DirectorofAirports As to Company: ExecutiveHelicopters 3231 Victory Street Myrtle Beach, SC 29577

7

HCDA·000024• 

# • 

# .. Either party from time to time may change its address by written notice to the other party. Notices hereunder shall be deemed effective when delivered by hand delivery or overnight courier, orthree days after deposit in the United Statesmail, first class, postageprepaid. 18. License. This Space UsePermitis intendedbytheparties, and shallbeinterpreted as, a license tousethedesignated Space, andshall undernocircumstancesbe deemedorconstruedas a lease ofreal property, nor shallthe relationship betweenthe parties, as to the designated Space, be deemedthat of landlord andtenant. ThisPermitis nota contract and does notgive, assign, or otherwise transfer from the Countyto the Company any interestin realproperty, butis a mere license, revocable atthe will of the County.
WITNESSthe signatures ofthe parties as ofthe date first written above.

ATTEST: 

### HORRY COUNTY

# By:~ ..!-.

# ~<":L Its:

# vi.-

... +or

## ~ P,;f

## ?O~~

EXECUTIVE**HELIC~~RS** By:

# ~f<-P- Its:;

# J~'&

8

HCDA-000025

### GRAND STRAND AIRPORT SPACE USE PERMIT THIS SPACE USE PERMIT ("Permit") is made and entered into as of the I" day of February 2014, by and between HORRY COUNTY, SOUTH CAROLINA, ACTING BY AND THROUGH ITS DEPARTMENT OF AIRPORTS ("CotUlty") and EXECUTIVE HELICOPTERS, INC. ("Company"), a business entity formed and existing under the laws of the State of South Carolina, and authorized to dobusiness inHorry County, SouthCarolina. WITNESSETH WHEREAS, County is the operatorofthe Grand StrandAirport ("Airport"); and WHEREAS, Companydesires to occupy and use spacein Hangar#10 located on Grand Strand Airportproperty, to conduct its "HelicopterTour Service" business; and WHEREAS, Countyis willing to permitCompanyto occupy and use space inHangar#10 atthe Grand StrandAirport, subject to the restrictions andterms providedherein: NOW, THEREFORE, County and Company agree as follows: I. 

### Space Use, County hereby permits Company to occupy and use Hangar #

### 1 0 together with any surrounding curtilage and parking ("Space") to be utilized for Company's "Helicopter Tour Service" business. 2. Term. The term ofthis Permit shall commence on February 1, 2014, and it shall continue in force and effect until July 31, 2014, but no longer than, six (6) months from the date of commencement unless otherwise earlier terminated. Prior to actual physical occupancy of SpacebyCompany, eitherpartymayterminate this Permit for any reason upon the giving at least five (5) days written notice to the other party. After actual physical occupancy ofthe Space by Company, either party may terminate this Permit for any reason by giving at least thirty (30) days written notice to the other party. Any act ofdefault hereunder, including without limitation failure to pay fees when due, .shall terminate any right, license or permission for use of Space inunediately upon event of default. This Permit shall not be renewed or extended, nor shall another suchPermitbe entered into betweenthe same parties within twelve (12).months from the date ofexpiration ofthis Permit, without prior approval ofHorryCounty Council. 3. Use. During the term hereof, Company shall occupy and use Space permitted by County solely in connection with its "Helicopter Tour Service" business at the Grand Strand Airport to the extent permitted by and fully in compliance with all applicable rules, regulations, and requirements of any Federal, State, City or County regulatory agency having jurisdiction over the Company's operations, subject to all terms and conditions of this agreement. Company's employees and customers will have reasonable access to and from and the right

1

HCDA-000026

### to use and occupy Space for the sole purpose of engaging in or furthering Company's business. Company's employees must be well groomed and neat in appearance at all times. The Director ofAirports must approve all signs and displays to be erected on the Space. Company shall fully comply with all safety and securitypolicies/directives as established by the Airport. IMPORTANT: Oulv vehicles (l!)erated by staffmembersbased at.CRE, are em!>!oyed directll' 

### for the Compauy amI. have heenllppl'ovedbv thenil'ector ofAkpOl'ts are permitted to park 011 

### the ill/elior 

### of Ille secudty felice (i.e. Oil 

### the ramp}. Companies arC nmi/ed 10 two (2) 

### emplovee vellides 011 

### Ail'porl prOperlY at Olle 

### lime and mus! pal'k 

### 'Hliaeent lite "space" described in thisAgreemeut. 4. Fee; DefaultInterest; LatePayment; SecurityDeposit. A. Fee. As the Fee for occupancy and use of the Space, Company shall pay County monthly payments ofThree Hundred Twenty-Five and Noll

### 00 ($325.00) dollars per month. Company shall pay said amounts without set-offor deduction, in advance and without demand on or before the fIrst day ofeach month during the term hereof. In 

### the event this Permit commences or terminates on other than the last day of any particular month, the Fee shall be prorated. County reserves the right to adjust such rate from time to time upon thirty (30) days written noticeto the Company. B. Gross Sales Percentage Fee. For each month during the term hereof and in addition to the monthly base Occupancy and use ofthe Space fee, Company shall pay County, as additional fee, a monthly adjustment amount whicb shall be the difference, ifany, between the monthly occupancy and use ofthe Space base fee to be paid during said month and Mecnt, futH 

### (21?/) fUFi8Rt 

### ofthe gross sales during**each~cc~i~cy** 

### month, whichever is greater.

### (1\)"1\))~ 

## M<.k:NT**~\..** 

# LflA":!iJ1Y/rf Gross sales include, without limitation, the gross selling price of all merchandise, services, concessions, or privileges that occur inwhole or in part, on the Space, or as a result ofactivities on or associated with the Space, during the term ofthis Permit Jncluding the gross charges of all services to customers or patrons performed by Company or any other person, entity, fum 

### or corporation, in, upon, or through any part ofthe Space during the term ofthis Permit and all sales/services that are subject to the South Carolina amusement, sales, use or excise tax set forth in Title 12 ofthe South Carolina Code ofLaws, 1976, as amended. Notwithstanding anything herein to the contrary, gross sales shall not include the amount ofany amusement, sales, use or excise taxes paidby Companyduring such term ofthis Permit. C. Payment of Fee and Gross Sales Percentage Fee. The Fee shall be paid in aid amounts without set-offor deduction, in advance and without demand on or before the fIrst day of each month during the term hereof from and after the CommencementDate. The Gross Sales Percentage Fee, ifdue, shall bepaid within ten (10) days ofeach month following a calendar month occurring from and after the CommencementDate through the expiration orterminationofthis Agreement, at which time Lessee shall provide Lessor, without demand, a statement ofGross

2

HCDA-000027Receipts for the prior calendar month together with the amount, ifany, by which the Gross Sales Percentage Fee due for theprevions calendaryear exceeds theFee. D. Default interest. 

### IfCompany shall default in its payment of Fees or other charges required to be paid pursuant to this Permit, such unpaid amounts shall bear interest from the date ofdefault at the rate ofI %%permonth. E. Late Payment. Company acknowledges that the late payment by Company of any monthly installment offees or other charges will cause County to incur certain costs and expenses not contemplated under this Permit, the exact amount of which are difficult or impracticable to determine. Therefore, ifany such amount owing is not received by county within ten (10) days following the due date thereof, Company shall immediately pay to County a late charge equal to I % % per month of such amount owing, in addition to any default interest which may be due as provided above. To the extent that any late charge provided for hereunder is determined to constitute interest, in no event shall such late charges, plus any other interest due on sums owed to Countyhereunder, ever exceedthe maximum interest rate permittedby law. F. Security Deposit. To assure the faithful performance of Company's obligations hereunder, Company shall remit a deposit in the form ofcash, a letter ofcredit, or a 'paymentbondissuedbya reputable companylicensedto issue suchbonds inthe'State ofSouth Carolina, in an amount equal to two (2) months ofall applicable Fees to the County, which shall be remitted to the County prior to the Company's occupancy of the Space. In no event shall this security deposit be used as payment for any fee set forth in A, above, without the express written authorization of the Director of the Horry CountyDepartmentofAirports. 3.Utilities and Services. County shall supply access to water, natural gas and electricityto the extent and capacity of the currently existing mains, lines, transformers, and panels. Company shall be solely responsible for the payment ofall utility charges, telephone, trash removal, hazardous waste removal and other services used byCompany 

### in or on the Space, to include hook-up fees, advanced deposits or other such costs, regardless of whether the utility charge is incurred in the name of Company or County. Company shall accept transfer of all applicable utility meters to Company's name when so tendered by County. Inthe event Company incurs any utility charge in the name of County, Company shall reimburse County for the full amount ofthe charge within five (5) calendar days ofthe date of written notice to Company of the amount ofthe charge. County assumes no responsibilityfor interruption ofsuch services for anyreason whatsoever.

3

HCDA-0000284. Cleaning and Maintenance. Company, at its sole cost and expense, shall keep the Space in a clean, neat and orderly condition at all times, and shall be responsible for maintaining all non-structural elements, including without limitation plumbing and HV AC. Company understands that it is responsible for the conduct of its guests, permittees, invitees, and licensees on the premises. Company shall not store any personal property exterior to the building on the unimproved premises associated with the building. Company is prohibited from taking any action which would negate or void the warranty on the roofs of any building within its Space. 5. Alterations. Companymay not make any alteration, addition, or improvement to the Space without the prior written approval of the Director of Airports. Company shall submit a written request for permission to perfonn such alterations, which shall include a description ofthe improvements, a site plan, and any other documentation requested by the Director of Airports to demonstrate the suitability ofthe improvements or alterations. Unless County eJects otherwise, all permanent alterations, additions, or improvements to the Space shall become the property of County upon termination. In the event County so elects, such permanent alterations shall be removed by Company at its own cost and expense prior to date oftermination. Company shall repair any damage to Space caused by such removal at its own cost. All agreed upon improvements must be made in a workmanlike manner, in accordance with all applicable statutes, ordinances, rules and regulations, including without limitation applicable building codes, and may be made only upon written approval of County's department ofAirports afterreview ofcompleteplans for suchimprovements. 6. Right of Entry. County shall have the right to enter the Space at any time for any reasonable purpose. 9. Compliancewith Law. A. General Comoliance. Company will comply with all applicable statutes. ordinances. rules. regulations. orders and directives ofany governmental authority, including County, in its occupancyanduse ofthe Space. B. Acceptance ofPremises. Company accepts the Space in its "as-is" condition and County has no obligation to improve, repair, restore, or alter any portion ofthe Space. Company acknowledges that neither County nor any agent, employee, director or official ofCounty has made any representation or warranty, except as otherwise expressly provided in this Pennit, with respect to the Space including, without limitation, any representation or warranty with respect to the suitability or fitness ofthe building or any portion thereoffor the conduct of Company's business. C. Jurisdiction ofOther Agencies. IfCompany's activities and operations shall in any way fall withinthejurisdiction orregulatory authority ofother governmental agencies, including without limitation the South Carolina Department of Health and Environmental Control ("DHEC"), Company must secure and produce evidence ofsuch agency's final approval of

4

HCDA·000029such operations or occupancy of Space. If such activities and operations fall outside DHEC's jurisdiction, Company shall procure and submit to Countythe statement ofanappropriately authorized DHEC representative to that effect. Company acknowledges that its representations and warranties pursuant to this subsection are material to the County's agreementto permitthe Company's use ofthe Space. 10. Release andIndemnity. A. Release. Company hereby releases County from any liability to Company for any loss or damage to any property of Company, its officers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees, and for the death or injury of any officers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees of Company, occasioned by theft, fire, acts of God, public enemy, injunction, riot, strike, insurrection, war, governmental body or authority including County, or any other matter beyond the control ofCounty, or for any injury or damage orinconvenience whichmay arise throughrepair oralteration ofanypart ofthe Space, or failure to make repairs, or for any cause whatsoever, except the sole negligence orwillful misconduct ofCounty. B. Indemnity. Company hereby releases and will defend, indemnify and hold harmless County, its departments, agencies, boards, commissions, committees, officers, directors, employees, and agents and assigns of any of them ("Indemnified Parties") from and against any and all liability, claims, penalties, fines, causes ofaction, suits, liens, losses, loss ofuse, damages, costs and expenses ofany kind (including legal fees and litigation costs) whichmaybe suffered by, accrued against, be charged to orberecoverable from the Indemnified Parties byreason of: (I) any occurrence, in, upon, or at the Space, howevercaused, or any cause ofaction ofany nature whatsoever, inlaw or equity, arising out oforincidental to this Permit orthe use oroccupancyofthe Space; and/or (2) any occupancy, use, or misuse ofthe Space, or the areas surrounding the Space, orthe service areas, parking areas, pedestrian areas, pedestrianwalks ordriveways in or around the Space, by Company, its officers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees, including without limitation uses or misuses which may render the premises subject to the Americans withDisabilities Actinwhole orinpart; and/or (3) any violation ofany law, regulation or ordinance byCompany or its employees, officers, directors, employees, agents, customers, concessionaires, vendors, contractors orinvitees; and/or (4) any occurrence arising in whole or in part out ofthe negligent act, or negligent failure to act, of Company, its officers, directors, employees, agents, customers,
5

HCDA-000030vendors, contractors orinvitees. Theprovisions ofthis section shall survive the expiration orearly tenninationof this Pennit.

C. 

### Environmental Indemnification. Company shall also indemnify, defend (with counsel satisfactory to County), and hold County, its departments, agencies, council, boards, commissions, committees, members, officers, directors, employees, and agents and assigns ofany ofthem harmless from and against any and all loss, cost, damage, expense, claim, cause of action, judgment, penalty, fine or liability, directly orindirectly, relating to or arising from the use, storage, release, discharge, handling or presence ofHazardous Materials on, under, or about the Space or the Airport in violation of Company's obligations under this Pennit ("Hazardous Materials Release"). This indemnification shall include, without limitation, (a) personal injury claims, (b) the payment ofliens, (c) diminution in the value ofthe Space, or any building included therein, or any other property at the Airport, (d) damages for the loss orrestriction onuse ofthe Space orthe Airport, (e) sums paid in settlement ofclaims, (f) actual attomeys' fees, consulting fees, court costs, and expert fees, (g) the cost ofany investigation ofsite conditions, (h) the cost ofany repair, cleanup, remedial, removal, orrestoration work or detoxification 

### ifrequired by any governmental authority or deemed necessary in County's reasonable judgment, (i) and any fines associated With Company's activities. County shall have the right but not the obligation to join and participate in, and control, if

### it so elects, any legalproceedings or action initiated in connection withthe Hazardous Materials Release. County may also negotiate, defend, approve, and appeal any action taken or issued by any applicable governmental authority with regard to a Hazardous MaterialsRelease. Anycosts orexpenses incurred byCountyfor whichCompanyis responsible under this Paragraph or this Pennit and has indemnified County, (i) shallbepaid to Countyondemand, during the termofthis Pennit as additional fees; and (ii)from and after the expiration or earlier termination of the Pennit shall be reimbursed by Company on demand. Company's obligations pursuant to the foregoing indemnity shall survive the expiration or termination ofthis Pennit and shall bind Company's successors and assignees and inure to the benefit ofCounty's successors andassigns. 

### 11. Insurance Required. Company agrees to purchase and keep in force and maintain at all times during the term ofthis Pennit, at its own expense, for the benefit ofitselfand County as additional named insured, a policy or policies of insurance, issued by an insurance company ofgenerally recognized responsibility and licensed to do business in the State of South Carolina insuring against: (A) all liability for damage to orloss ofCompany's and its customer's property located on the Space, (8) liability for property damage and personal injury or death arising from acts or omissions ofCompany, its agents and employees, (C) liability for any damage or harm resulting from any release ofany hazardous material, as that term is defined by the United States Environmental Protection Agency, including, but

6

HCDA-000031not limited to, costs ofremediation ormitigation ofsuchrelease ofhazardous materials, and (D) Workers Compensation claims to the limitsrequired bythe State ofSouth Carolina. Said insurance shall be maintainedthroughout the term ofthis Permit with an insurance company acceptable to County with liability limits ofat least $2,000,000.00. The policy or policies shall contain a contractual liability endorsement expressly covering the indemnification provisions ofSection 10 ofthis Permit. Company shall also purchase, at its own cost and in its sole discretion, such business interruption or other insurance to protect Company's interest inthe event ofmajor orminor damage ordisasterto the Space. This Permit shall not become effective until User shall provide to the HCDA a copy of certificate(s) evidencing the above insurance. The certificate ofinsurance shall provide that no material alteration, reduction, or termination of coverage shall occur without the insurance carrier giving County at least thirty (30) days' written notice prior to such alteration, reduction, Dr termination. 12. Subuse and Assignment. Company shall not allow any other entity to occupy or use any of the Space without the written consent ofthe Horry County Department ofAirports and no attempted assignment ofthis Permit byCompany shallbeeffective. 13. GOVERNING LAW. THIS Permit SHALL BE GOVERNED BY AND CONSTRUED UNDERTHE LAWS OF THE STATE OF SOUTH CAROLINA. This Permit is not subject .to alternative dispute resoh,ltion except where orderedby a court ofcompetentjurisdictionor required by operation oflaw. The forum for any action or claim brought as a result ofthis contract shallbethe Court ofCommonPleas, Horry County, SouthCarolina. 14. Entire Agreement! Amendment. This Permit constitutes the complete agreement of the parties with respect to the subject matter hereof and supersedes all previous agreements, representations and understandings conceming the same, whether written or oral. The provisions ofthe Permit may be modified, amended or waived only by a written instrument executed by County and Company. 15. Termination ofPermit. Inthe event oftermination ofthis Permit byeither Party, Company shall promptly cause to be removed all personal property from the Space. Any property left on Airport premises by Company and remaining there fifteen days after the date on which Company either vacated the Space or should have vacated the Space according to the notice oftermination sentbythe terminatingparty, maybe deemed, at the sole and exclusive option of the Airport, abandoned. Once so deemed, such property shall become the exclusive property of the County and may be disposed of as such in accordance with applicable statutes, ordinances, and County procedures. Alternatively, County may have such property removed, at Company's sole expense. 16. Operating Permit. The terms and conditions for both the "Space Use Permit" and the "Operating Permit" must be adhered to without default to either agreement. Default ofany terms or conditions by either agreement, constitutes defanlt onboth the "Space Use Permit"

7

HCDA-000032

### and the "OperatingPermit". 1 7. Notices. Any notices required or sent herennder shall be in writing and shall be sent as follows: As to 

### County: Horry CountyDepartmentofAirports 11 

### 00 Jetport Road Myrtle Beach, SC 29577 ATTN: DirectorofAirports As to 

### Company: Executive Helicopter 3231 Victory Street Myrtle Beach. SC 29577

Either party from time to time may change its address by written notice to the other party. Notices hereunder shall be deemed effective when delivered byhand delivery or overnight courier, orthree days after depOsit inthe United Statesmail, first class, postage prepaid. 18. License. This Space Use Permit is intended by the parties, and shall be interpreted as, a license to use the designated Space, and shall under no circumstances be deemed or construed as a lease ofreal property, nor shall the relationship between the parties, as to the designated Space, be deemed that of landlord and tenant. This Permit is not a contract and does not give, assign, or otherwise transfer from the County to the Company any interest in real property, but is a mere license, revocable at the will ofthe County.

8

HCDA-000033WITNESS the signatures oftheparties as ofthe date first written above.

ATTEST:

# ~1j\1AQ./

ATTEST: EXECUTIVE HELICOPTERS, INC.



# (!Jp,:t:::.M4 By:

# ~~'~ Its: 

# v-es?Ja...,*-

9

HCDA·000034Instrument#: 4,
.;000056269,**~EED** BK: 3736 PG: 6 DOCTYPE: 010 05123/2014 at 04:15:48 PM, 1 OF26 BALLERY V. SKIPPER, HORRY COUNTY, SC REGISTRAR OF DEEDS STATE OF SOUTH CAROLINA) ) LESSOR OFHORRY ) LEASEAGREEMENT

THIS LEASE AGREEMENT, made and entered into this 1st day of

### -,M'-!.Cf/,-'('--~~_**20~,** by and between HORRY COUNTY, a political subdivision organized and existing under the laws ofthe State ofSouth Carolina ("Lessor") and Executive Helicopter, Inc. a business entity organized and existing under the laws ofthe State ofSouth Carolina ("Lessee"). WITNESSETH: WHEREAS, Lessor has the right to lease certain property at the Grand Strand Airport (CRE) for

WHEREAS, The Lessee is desirous of leasing space in a building at CRE labeled Hangar # 1 0, approximately 2,560 square feet, together with office space and aircraft parking areas limited to one (1) aircraft parking position inside ofthe hangar; and NOW, THEREFORE, for and in consideration ofthe premises and mutual covenants contained herein, Lessor and Lessee agree as follows: ARTICLEI - PREMISES
A. Premises.
Lessorhereby leases to Lessee portions ofCRE buildings as follows: Approximately 2,560 square feet ofthe buildings identified as Hangar #10, including approximately 1,560 square feet of office space and approximately 1,000 square feet ofparking for (1) aircraft located at CRE Airport and attachedhereto as Exhibit "A," incorporated herein by reference ("Premises"). B. ACCEPTANCE OF PREMISES. Lessee accepts the premises in their "as-is" condition and County has no obligation to improve, repair, restore, or alter the premises. Lessee acknowledges thatneither County nor any agent, employee, director or official ofCounty has made Paget HCDA·000035

### any representation or warranty, except as otherwise expressly provided in this Lease, with respect to the building (including the premises) including, without limitation, any representation or warranty with respect to the suitability or fitness ofthe building or any portion for the conduct of lessee's business. Lessee acknowledges that it has been informed that the building in which the Premises are located may not be compliantwith the Americans with Disabilities Act [the Act], and accepts the Premises in that condition. Lessee acknowledges that it is responsible for compliance with any requirements that may be imposed under the Act for Lessee's anticipated use of the premises. Lessee agrees to indemnify and hold harmless Lessor from any and all claims arising from any failure to comply with the Act, and agrees to notity Lessor of any modifications or accommodations that Lessee undertakes in orderto comply with the Act C. DISCLAIMER OF WARRANTIES. Lessee represents that the Lessee has inspected the Premises and agrees to accept the Premises in an "as is" condition. LESSOR DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES IN CONNECTION WITH THE PREMISES, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FORAPARTICULAR PURPOSE.

D. Covenants and Deed Restrictions. The Premises are leased to Lessee subject to all covenants, conditions, restrictions, requirements, easements, rights-of-way, reservations, rights, agreements and encumbrances set fOlth in the deed or deeds which evidence conveyance ofthe premises or any portion thereof. Lessee agrees to abide by andlor comply with each and every covenant, condition, restriction, requirement, easement, right-of-way, reservation, right, agreement and encumbrance that may be contained in the deed or deeds referenced. Lessee agrees to abide by and comply with each and every covenant, restriction, and requirement that may be contained in the deed or deeds pertaining to the Premises, ARTICLE II

- TERMAND RENEWAL OPTION A. Term. The term ofthis Agreement shall commence August I, 2014, subjectto approval by the Harry County Council, and full execution hereof, and shall continue in force and effect for a period ofsix (6) months terminating January 31, 2015, unless sooner terminated by operation of any clause contained herein. Upon expiration ofthe initial term, at the discretion ofthe Lessor, Lessee may hold over on a month-to-month basis. Such holding over, however, shall not be

HCDA-000036

### construed to renew this Lease Agreement for any further term but may be terminated by Lessor or Lessee upon thirty (30) days written notice; all other terms and conditions provided herein shall remain in full force and effect to any such hold over tenancy.

ARTICLEIII

- USE OFPREMISES 

### A. Use. Lessee shall comply with all local, state and federal laws, rules, regulations and ordinances that are or may become applicable to its activities under this Lease, including, without limitation, all applicable zoning, parking, signage, and other ordinances and the height and lighting requirements ofthe Federal Aviation Administration ("FAA"). Lessee shall have the non-exclusive right and obligation to use the Premises for the operation ofthe Lessee's business consisting of"helicopter tour operations." Lessee shall have the right to perfonn aviation activities related to the maintenance, repair, and operation of its owned aircraft for conducting its business at the airport. Use ofthe Premises for any other purposes shall not be permitted unless agreed to in writing, in advance of such use, by the Lessor. Lessee shall not undertake any operation on the site that will cause a nuisance to (including noise andlor dust) or interfere with lawful activity on adjacent properties. With regard to parking, only vehicles operated by Lessee's employees or staff based at CRE, who are employed directly by the Lessee and have been approved by the Director of Airports are permitted to park on the interior ofthe security fence (i.e. on the ramp). Lessee is limited to two (2) employee vehicles on Airport property at one time and must park adjacent the Premises described in this Agreement. Vehicles are not permitted to park overnight without the prior approval from Director ofAirports or a representative designated by the Director ofAirports. Lessee is prohibited from and shall not provide aircraft fueling or defueling services except as follows: (I) As to aircraft owned by Lessee to the extent permitted by the FAA, this Lease and Lessor's standards, as may be amended from time to time, which are incorporated herein by reference; and (2) As to defueling of aircraft owned by Lessee as necessary to accomplish maintenance ofthe aircraft, Lessee may defuel the aircraft, store the fuel in strict accordance with**-----~-~------------------------------** Page 3 --------------------**-----------~---** HCDA-000037all applicable codes, rules and regulations, and reinstall the fuel into the aircraft from which it is taken in compliance with Lessor's standards; Lessee shall control all current and future lighting installed on the Premises by Lessee as to prevent illumination from being a hazard to pilots landing on, taking off from or taxiing on the airport. The determination ofhazard shall rest solely with thejudgment ofthe Lessor. No use shall be made or permitted to be made to the Premises, or acts done, which will cause a cancellation ofany insurance policy covering the Premises, nor shall Lessee keep or permit to be kept in, on or about the Premises any materials which may be prohibited by the standard form fire insurance policy covering such Premises. Lessee shall commit no nuisance in, on or about the Premises, or permitor suffer any nuisance to be committed. Coin operated amusement devices shall not be placed or used upon the Premises without Lessor's prior written permission. Machines for vending candy, confections, beverages, light refreshments or convenience items for the use and convenience of Lessee's employees are permitted onthe Premises. Company will abide by all HCDA rules, policies, and procedures for Grand Strand Airport (CRE), as may be adopted oramended from time to time B. Quiet Enjoyment. Lessee shall be entitled to the quiet enjoyment of the leased Premises provided that Lessee remains in compliance with all the terms and conditions of this Lease, and does not interfere with the rights ofany ofthe othertenants or users ofthe Airport.
C. Efficient Use ofSpace. Lessee and Lessor agree that efficient use ofthe Premises is a common goal, to include use ofthe Premises in part to provide "helicopter tour" operations. Lessee and Lessor therefore agree that Lessor has the right to inquire ofLessee as to Lessee's past and planned utilization ofAirport facilities, including those facilities that comprise the Premises. Lessee and Lessor agree that, should Lessee's utilization ofthe Premises allotted to it herein, or as this Lease Agreement may be amended at a future date, reasonably be deemed as insufficient utilization ofthe facilities, Lessor may require Lessee to submit a written plan, within fourteen (14) calendar days of its written request to Lessee to do so, detailing Lessee's plan to cure such deficiency and to utilize the Premises properly and efficiently. Such option on the part ofLessor

------------ Page 4 HCDA-000038will not be exercised more often than once every six (6) months. Upon receipt, Lessor will review the plan and may either approve theplan orexercise its rights underArticle

### XV, below.
ARTICLE IV-RENTAL
A. Base Rental Rate. Lessee shall pay to Lessor a semi-annual base rent in the amount of One thousand Nine Hundred Sixty-Eight and no/lOO ($1,968.00) Dollars, due and payable in six (6) equal monthly installments $328.00 dollars. Lessee shall pay said amounts without demand, and without set-off or deduction, in advance on or before the first day ofeach month during the term hereofand any hold over period. In the event this Lease commences on or terminates on other than the last day of any particular month, the Base Rent shall be prorated. Lessee shall receive no rental creditfor any improvements made to the Premises. B. Utility Fee. Lessee agrees to pay Lessor One Hundred Fifty and Noll00 ($150.00) Dollars per month on the first day ofevery month ofthe lease year for utilities ofwater, gas and electric. Ifthe actual costs ofproviding utilities charged to Lessee are more than the Utility Fee provided herein, the Utility Fee shall be increased by a corresponding amount. This payment is in addition to the base rent and can be increased by Lessor with thirty day written notice to Lessee. C. Late Payment InterestlPenalties/Collection. Any Base Rent payment, any percentage rental payment, or payment ofany other fee or charge set forth in this Agreement not received by the Lessor withinten (10) days ofthe date due shall be subject to a monthly fee ofone and one-half (1 It, % ) percent per month or portion thereof on the entire balance due, including any previously accrued late payment 

### I interest charges; Lessor reserves the right to impose an additional reasonable charge on any payments not made by the due date to recoup its costs associated with administering such overdue account. In the event that collection efforts are required, Lessee shall reimburse Lessor for all costs, fees and charges incurred as a result of said efforts including attorneys' fees and costs. To the extent that any late charge provided for hereunder is determined to constitute interest, in no event shall such late charges, plus any other interest due on sums owed to Lessor hereunder, ever exceed the maximum interest rate permitted by law, and in the event such amount should exceed the maximum rate, then the amount owed to Lessor shall automatically be reduced to equal the maximum amount permitted by law. PageS HCDA·000039D. Gross Sales Percentage Fee. For each month during the term hereof and in addition to the monthly Base Rent, Lessee shall pay Lessor, as additional fee, a monthly adjustment amount which shall be the difference, if any, between the monthly Base Rent during said month and ten (10%) percent ofthe gross sales during each such occupancy month, whichever is greater. Gross sales include, without limitation, the gross selling price of all merchandise, services, concessions, or privileges that occur in whole or in part, on the Premises, or as a result of activities on or associated with the Premises, during the term ofthis Lease including the gross charges of all services to customers or patrons performed by Lessee or any other person, entity, firm orcorporation, in, upon, or through any part ofthe Premises during the term ofthis Lease and all sales/services that are subject to the South Carolina amusement, sales, use orexcise tax set forth in Title 12 of the South Carolina Code of Laws, 1976, as amended. Notwithstanding anything herein to the contrary, gross sales shall not include the amount of any amusement, sales, use or excise taxes paid by Lessee during suchterm ofthis Lease. Payment ofBaseRent and Gross Sales Percentage Fee. The Fee shall be paid in said amounts without set-off or deduction, in advance and without demand on or before the tirst day of each month during the term hereof from and after the Commencement Date. The Gross Sales Percentage Fee, if due, shall be paid within ten (10) days of each month following a calendar month occurring from and after the Commencement Date through the expiration ortermination of this Lease, at which time Lessee shall provide Lessor, without demand, 

### a statement of Gross Receipts for the prior calendar month together with the amount, ifany, by which the Gross Sales Percentage Fee due for the previous calendarmonth exceeds theBaseRent.



### E. Books of Account and Auditing. Lessee shall keep true and complete records and accounts of all Gross Revenue. All such records and accounts shall be made available to Lessor upon ten days prior notice to Lessee. All receipt forms used by Lessee in its operations shall be pre-numbered and Lessee shall maintain records and controls insuring that the forms accurately reflect all Gross Revenue ofLessee from its operation. Within ninety (90) days after the end of each term, Lessee, at its own expense, shall furnish a true and accurate statement for the preceding term of all such Gross Revenue during such preceding term (showing authorized deductions or exclusions made in computing the amount of such Gross Revenue), which statement shall be Page 6 HCDA·000040certified to be correct by an Independent Certified Public Accountant. Lessee agrees to give the Lessor access during reasonable hours for inspection of Lessee's books and records, and Lessee agrees it will keep and preserve for at three (3) years all receipt forms and other evidence ofGross Revenue for such period. The Lessor shall have the right at any time and from time to time to audit all ofLessee's records relating to business transacted at the Airport including, but not limited to, Gross Revenue, and the Lessee, upon request, shall make all such information available for such examination at the Premises. If, as a result of such audit, it is established that Lessee or any licensee or franchisee ofLessee has understated Gross Revenue or business transacted for any year by two percent (2%) or more (after the deductions and exclusions provided for herein), the entire expense ofsaid audit shall be borne by Lessee. Any additional Percentage Fees due as a result of such audit shall forthwith be paid by Lessee to Lessor with interest thereon at the rate ofeighteen percent (18%) per annum from the end ofthe month in which the discrepancy occurred. 

### F. Required Reports. Lessee agrees to submit, monthly and without demand, such statistical information concerning Lessee's gross sales at the Premises as stipulated in this agreement and as Lessor may, from time to time, require. ARTICLE V

- IMPROVEMENTS/ALTERATIONS A. Prior Approval Required. Lessee shall have the right, at its sole expense, to construct, improve, modify and make additions to the facilities leased to Lessee. However, prior to any construction, improvements, modifications or additions to the Premises, Lessee must first obtain from Lessor's Department of Airports prior written approval of such construction, improvement, modification or addition, and all plans, designs, and specifications associated therewith. All construction and improvements undertaken by Lessee must be made in accordance with all applicable statutes, ordinances, rules, regulations, laws, and building codes, and must be completed in a good, substantial, and workmanlike manner without damage to or interference with existing facilities or operations. Written confirmation of compliance with all such applicable statutes, ordinances, rules, regulations, laws, and building codes shall be submitted by the Lessee to Lessor's Department of Airports simultaneously with or prior to requesting the Department's review offinal proposed construction plans and specifications Upon the approval of such construction, plans and specifications by Lessor, Lessee shall within ninety (90) days thereafter commence construction, at its sole expense, and shall diligently Page7 HCDA·000041prosecute such construction to its completion, in accordance with such plans and specifications. Lessee shall further furnish Lessor with a good and sufficient Surety Bond (in a form and issued by a Lessee acceptable to Lessor) insuring the completion ofthe work and the payment ofall bills in connection therewith. B. Quality of Work. All improvements and alterations to the Premises must be performed by qualified contractors who are fully licensed to perform work ofthe kind proposed, and who are bonded and insured in compliance with the Lessor's policies applicable to the procurement ofconstruction services for Lessor's benefit, and shall be constructed in accordance with all applicable building codes, laws and regnlations and in a good, substantial, and workmanlike manner. All materials used in any improvements by Lessee shall be of appropriate quality and grade for the use to which they are employed. C. Protection ofUtility Lines and Eqnipment. All work undertaken pursuant to the authority granted within this Article V shall be subject to the condition that Lessee makes, at its expense, suitable arrangements for relocation of any affected governmental or Lessor's / other tenant's utility lines, cables or other equipment. Further, Lessee shall not pave roads or ramps over said utility lines, cables orequipmentwithoutthe prior written approval ofLessor/ tenant. D. Title to Improvements, Alterations and Repairs. All improvements made to the Premises and all additions and alterations thereto made upon said area by Lessee, shall be and remain the property ofLessee until expiration or termination ofthis agreement, at which time the said improvements shall, at the sole discretion and determination of Lessor, become the sole property ofLessor in their entirety. Should Lessor determine that it will nottake possession ofsaid improvements at the expiration or termination of this Lease, Lessee shall completely remove within 30 calendar days after the expiration / termination all such improvements from the airport and restore the Premises to its original condition and to the satisfaction ofLessor.
E. Trade Fixtures, Machinery and Equipment. IfLessee is not then in default of any provisions of this Lease, Lessee shall have the duty to remove from the Premises immediately before the expiration ofthe term, or within ten (10) days after the expiration ofthe term, any alterations, fixtures, machinery and equipment Lessee has on the Premises, as long as the removal will not cause structural damage to the Premises, and Lessee, at its cost, promptly restores any damage caused by the removal and restores the Premises to its prior condition as set forth below.

HCDA·000042F. Obligations ofLessor. Lessor is not obligated to provide any improvements under this Agreement.

ARTICLE Vl- MAINTENANCE
Lessee shall, throughout the term of this Agreement, at Lessee's own cost and expense, and without any expense to Lessor, promptly keep and maintain the Premises, all improvements thereon, and the surrounding area in a sanitary and neat order, and in good repair, and shall be solely and exclusively responsible for keeping and maintaining all non-structural elements ofthe Premises, including plumbing, HVAC, doors and their respective operating mechanisms, but excluding the roofand load-bearing members ofthe building, in good repair, all ofwhich shall be maintained in a condition at least equal to the condition ofthe Premises upon the execution ofthis Lease Agreement, reasonable wear and tear excepted. 

### Under no circumstances shall the hangar doors ofthe operating mechanismsfor the doors constitute a structural component ofthe building. Lesseeshall be solely andexclusively responsible for maintainingalldoors, including the aircraft hangar doors, and their respective operating mechanisms in good repair. Lessor undertakes no responsibility to keep safe or protect the personal property ofLessee or to protect Lessee from casualty to the Premises. All repairs, replacements and renewals shall be equal or better in quality and class to the original work. Should Lessee fail to make required repairs or maintenance, Lessor, in its discretion, may contract with an independent contractor it deems competent to fulfill Lessee's duties under this Article; however, Lessor shall have no duty to begin such repairs or maintenance until such time as Lessee makes arrangements satisfactory to Lessor for payment of said repairs or maintenance. Lessor shall be under no obligation to inspect or make any inspections in order to determine when repairs or maintenance are necessary. Lessee shall notify Lessor in writing when any repairs or maintenance to the structural components are required. Lessor undertakes no responsibility to keep safe or protect the personal property of Lessee or to protect Lessee from business interruption in the event of building leak or other casualty to the Premises. Lessee shall obtain Lessee's own personal property insurance, business interruption insurance, liability insurance for liability to persons coming onto the Premises and insurance for other consequential damages Lessee might suffer from its occupancy of the Premises. Lessor shall not obtain insurance to cover Lessee for any losses or claims. In the event

..**~**.... Page 9 HCDA·000043ofmajor damages to the Premises, Lessor shall, at its sale discretion, have the option ofreplacing the Premises in their entirety, moving Lessee to a suitable location elsewhere on its property, or terminating this Agreement.



### ARTICLE VII

- UTILITIES Lessor shall supply access to water, natural gas and electricity to the extent and capacity of the currently existing mains, lines, transfonners, and panels. To the extent Lessee requires services in excess of those normally provided by Lessor as contemplated and included in the Utility Fee set forth in Article IV (B) above, Lessee shall be solely responsible for the payment of all such services, including any charges for additional utilities, telephone, trash removal, hazardous waste removal, and other services used by Lessee in or on the Premises, to include hook-up fees, advance deposits, or other such costs. Any accounts maintained for such additional services shall be maintained solely in the name ofLessee. Any such additional services to be provided on Airport property must be approved by the Director ofAirports, which approval may be withdrawn at any time for any reason. 

### ARTICLEVIII-TAXES,

FEES, ASSESSMENTS All taxes or governmentally imposed fees orassessments in any way incurred upon the Premise, any improvements thereon or part thereof, or by virtue of Lessee's occupancy or use thereof, shall be borne solely by Lessee. Without any manner limiting this paragraph, Lessee shall absorb all sales taxes, if any, assessed or levied on account ofany monies payable by Lessee to Lessor hereunder.



### ARTICLEIX

- LIENS AND MORTGAGES Lessee shall keep the Premises and all personal property ofLessor therein or thereon free and clear of liens of any kind, whether such liens are valid or invalid. Lessee shall defend, indemnify and save Lessor harmless against all costs, expenses, loss, loss ofuse, damages, and

HCDA-000044attorney's fees resulting from the filing ofliens against the Premises by any person. Ifany liens are filed as described herein, Lessee shall immediately begin remedial actions to remove said lien. If, after thirty (30) days, Lessee has not caused the lien's removal from the Premises, Lessor may take whatever action it deems necessary to defend its title to the Premises. This remedy shall be in addition to any other remedies specified elsewhere herein. Lessee shall not cause a mortgage or other like security interest to be placed upon the Premises.
ARTICLEX - ASSIGNMENT, ASSUMPTION OR SUBLETTING OFLEASE Lessee shall not assign, permit the assumption ofor in any manner transfer any interest in this Agreement, or any part thereof, without the prior written consent ofthe Lessor. Lessee shall not sublease all or any part ofthe Premises. If Lessee assigns, permits the assumption of or in any manner attempts a transfer of its interest in this Agreement without the prior written consent of the Lessor, Lessor, at its sale discretion, may declare this entire Agreement null and void. IfLessor declares this Agreement null and void as a result ofthe acts described herein, Lessee shall immediately cease all activity in or
onthe Premises and vacate the Premises within ten (10) days ofnotice ofLessor's intention.
Ifthis lease or any interest ofLessee therein be assigned after having obtained Lessor's prior written consent thereto, Lessee shall nevertheless remain fully liable for the full performance of all obligations under this lease to be performed by Lessee and Lessee shall not be released therefrom in any manner.
ARTICLE XI

- CHANGE IN OWNERSHIP

CONTROL/MANAGEMENT OF LESSEE Lessee specifically acknowledges that Lessor leases the Premises to Lessee on the basis, among other factors, of the Lessee's current management, control and ownership. Lessee
Page 11 HCDA-000045specifically acknowledges that Lessor reserves the right to approve ordisapprove, at Lessor's sale discretion, any significant change in management structure or ownership. This includes, without limitation, contracting for management services, sale of stock, and acquisition of a controlling interest in Lessee by any party other than the parties currently in control. Lessor also specifically reserves the right and Lessee specifically grants the right of Lessor to approve or disapprove, at Lessor's sole discretion, any change of the form of Lessee's existence as a business entity. Any change of Lessee in any manner described in this Article without the prior written approval of Lessor shall be an event of default. The Lessor, at its sole discretion, may pursue any rights or remedies available to it underthe terms ofthis Agreement. 

### ARTICLE XII

- INDEMNITY A. Indemnification and Hold Harmless. Lessee shall protect, indemnify, defend (with counsel. satisfactory to Lessor) and hold Lessor and Lessor's council members, directors, officers, committees, employees and agents completely harmless from and against any and all liabilities, losses, suits, claims,judgments, fines, or demands arising by reason ofinjury ordeath of any person or damage to any property, (including, but not limited to, attorney fees, court costs, and expert fees), of any nature whatsoever, arising out ofor incidental to this Agreement, the use or occupancy of the Premises, or the actions and/or omissions of Lessee's directors, officers, committees, agents, employees, contractors, subcontractors or licensees; however, the above indemnity shall not apply to any injury, death or damage caused by the sole negligence ofLessor. Lessee shall give reasonable notice of any such claims or actions. The provisions ofthis section sball survive the expiration orearly termination (including default) ofthis Agreement. B. Environmental Indemnification. Lessee shall also indemnify, defend (with cOllnsel satisfactory; to Lessor), and bold Lessor, its council members, officers, employees, agents, assigns, and any successors to Lessor's interest in the leased Premises, barmless from and against any and all loss, cost, damage, expense, claim, cause ofaction,judgment, penalty, fine or liability, directly or indirectly, relating to or arising 

### from the use, storage, release, discharge, handling or presence of Hazardous Materials on, under, or about tbe leased Premises or the Airport in violation of Lessee's obligations under this Agreement ("Hazardous Materials Release"). This indemnification sball include, without limitation, (a) personal injury claims, (b) the payment ofLiens, (c) diminution in the value ofthe leased Premises or Airport, (d) damages

................................................ ---.------.-.----. Page 12 HCDA-000046for the loss or restriction on use ofthe leased Premises or the Airport, (e) sums paid in settlement ofclaims, (f) actual attorneys' fees, consulting fees, court costs, and expert fees, (g) the cost of any investigation of site conditions, (h) the cost of any repair, cleanup, remedial, removal, or restoration work or detoxification if required by any Governmental Authorities or deemed necessary in Lessor's reasonable judgment, (i) and any fines associated with Lessee's activities. Lessor shall have the right but not the obligation to join and participate in, and control, ifit so elects, any legal proceedings or action initiated in connection with the Hazardous Material Release. Lessor may also negotiate, defend, approve, and appeal any action taken or issued by any applicable Governmental Authorities with regard to a Hazardous Materials Release. Any costs or expenses incurred by Lessor for which Lessee is responsible under this Paragraph or this Agreement and has indemnified Lessor, (i) shall be paid to Lessor on demand, during the term of this Agreement as additional rent; and (ii) from and after the expiration or earlier termination of the Agreement shall be reimbursed by Lessee on demand. Lessee's obligations pursuant to the foregoing indemnity shall survive the expiration or termination ofthis Agreement and shall bind Lessee's successors and assignees and inure to the benefitofLessor's successors and assigns. C. Regulatory Indemnification. Lessee shall also indemnify, defend (with counsel satisfactory to Lessor), and hold Lessor, its council members, officers, employees, agents, assigns, and any successors to Lessor's interest in the leased Premises, harmless from and against any and all loss, cost, damage, expense, claim, cause ofaction,judgment, penalty, fine or liability, directly or indirectly, relating to or arising from violation by Lessee, its agents, contractors, or anyone affiliated with Lessee ofany local, state or federal laws, rules, regulations or ordinances that are or may become applicable to its activities under this Lease, including, butnot limited to, any and all requirements ofthe Federal Aviation Administration ("FAA'). 

### ARTICLE XIII - INSURANCE Lessee shall, at its sole cost, purchase and keep in force at all times during the term hereof, a policy or policies of insurance, issued by an insurance company of generally recognized responsibility and licensed to do business in the State ofSouth Carolina, insuring Lessee against all liability for property damage, environmental liability, and personal injury (including death) arising or alleged to arise out ofany activity offailure to act ofLessee on, about, or with respect to, the Premises. Lessor shall be named in all insurance policies ofthe Lessee as an additional insured. Lessee shall provide Lessor with a certified copy ofall policies ofinsurance required under**~~-----~--~-~~~----** Page**13-~** HCDA-000047this Agreement. Said policy or policies shall also contain a contractual liability endorsement expressly naming Lessor as an additional insured on this policy. The combined single limit ofliability ofthe aforesaid policy or policies shall not be less than Two Million and No/IOO ($2,000,000.00) Dollars. Lessor reserves the right to adjust these limits from time to time, at Lessor's sole discretion, to adequately protect its interests. Lessor further reserves the right to reject, at any time, any insurance Lessee selected by Lessee. Upon written notification, Lessee will immediately obtain a replacement policy or policies with an insurance Lessee satisfactory to Lessor. Lessee, unless otherwise exempt, shall purchase at its own cost, worker's compensation insurance on all of its employees. Lessee's workers compensation insurance shall meet the requirements ofthe South Carolina Workers Compensation Commission and the South Carolina Department ofInsurance. Lessee shall purchase, at its own cost, casualty insurance covering all of Lessee's or Lessee's customers' personal property to be located on the Premises, regardless of the length of time said property is to be located on the Premises. Lessee shall also purchase, at its own cost and in its sole discretion, such business interruption or other insurance to protect Lessee's interests in the event ofmajor or minor damage or disaster to the leased Premises. Lessee shall purchase, at its own expense, an environmental andlor pollution legal liability insurance policy. The minimum acceptable coverage of this policy shall be One Million and 

### NolIOO ($1,000,000.00) Dollars. Lessor shall be named as an additional insured on thispolicy. For all policies of insurance specified in this Article XIII, Lessee shall provide evidence thereof in the form of a certificate of insurance showing the name ofthe entity providing such coverage, the extents ofsuch coverage, the identification ofLessor as an additional named insured thereon, and an express assurance that Lessor shall be given at least thirty days written notiqe prior to any cancellationofsuch policy or any material alteration ofterms ofcoverage.

ARTICLE XIV

- ENTRY OF LESSORIRIGHT OFINSPECTION Lessor may, but does not have the obligation to, at all reasonable times, enter the Premises Page 14··-----·---··--- HCDA-000048

### to inspect or protect the Premises; effect compliance with any law, order or regulation of any lawful authority or with the provisions of this Agreement; exhibit the Premises to prospective tenants, purchasers or other persons; make repairs required of Lessor in Article VI; alter or otherwise prepare the Premises for re-occupancy at any time after Lessee has vacated the Premises. ARTICLEXV -DEFAULT
A. Event ofDefault. Occurrence ofany ofthe following events ("Event(s)" or "Event ofDefault") shall be sufficient for Lessor to deem Lessee in default of its obligations under this Agreement: I. Failure in the payment, without notice ordemand, ofany fees or other charges due to Lessorunder this Agreement and continuance ofsuch failure in payment for a period often (10) days thereafter. 2. Failure in the performance or breach ofany othercovenant, obligation or duty imposed by this Agreement by Lessee (otherthan the payment offees or other charges due Lessor) and the continuance ofsuch failure in the performance or breach for a period ofthirty (30) days after Lessorhas given Lessee written notice ofsuch failure in the performance orbreach. 3. Filing by Lessee ofa voluntary petition in bankruptcy orthe voluntary assignment ofall or substantially all ofLessee's assets for the benefit ofLessee's creditors or Lessee is adjudicated bankrupt in an involuntary proceeding in bankruptcy. 4. Failure to utilize the Premises for its intended uses at a reasonable level, after receipt ofwritten notice, and continuance of such failure for a period ofthirty (30) days thereafter.

B. Remedies Upon Default. Upon an event of default and after the passage ofthe notice period set forth herein (ifrequired), Lessor, at its sole option, may terminatethis Agreement. Upon such termination, Lessee will quit the Premises and surrender possession to Lessor, but Lessee will remain liable for any unpaid rent and other unpaid obligations and lost rentals under this Lease. C. Waiver. No waiver by Lessor ofdefault by Lessee in performance ofany term or

HCDA·000049terms of this agreement shall be construed to be a waiver of any subsequent default. The acceptance ofrent or the performance ofall or any part ofthis Lease Agreement by Lessor, for or during any period or periods after a default in performance by Lessee, shall not be deemed a waiver ofany right on the part ofLessorto declare a default orterminate this Lease Agreement for a subsequent breachthereof.

D. Termination of Agreement. In the event Lessor shall terminate this agreement or Lessee's right to possession or occupancy ofthe leased premises as provided herein, Lessee shall promptly vacate the premises, surrender and deliver possession thereofto Lessor, and at its sole expense remove from the leased premises within ninety (90) days all signs, trade fixtures, furnishings, personal property, equipment, and materials which Lessee was permitted to install and maintain under the rights granted herein. Any ofLessee's property not removed within ninety (90) days shall become Lessor property.

ARTICLEXVI

- NOTICE Any request, demand, authorization, direction, notice, consent orwaiverprovided, required or permitted to be made upon, given by or furnished to Lessor or Lessee shall be sufficient for every purpose hereunder if in writing and mailed by United States Mail, certified or registered mail, postage prepaid, and addressed as follows: TO LESSORAT: Horry Department ofAirports Attn: Director ofAirports 1100 JetpOli Road Myrtle Beach, SC 29577 With acopy to: Horry County Attorney's Office 130I Second Avenue Conway, SC 29526 TO LESSEE AT:
Executive Helicopters, Inc.

HCDA·000050CIO Mr. Jeremv Bass 3231 Victory Street U

..**~l~** Beach, SC 29577 

### Either party from time to time may change its address by written notice to the other party. Notices hereunder shall be deemed effective when delivered by hand delivery or overnight conrier with retnrn receipt, or upon receipt or three davs after deposit in the United States mail. certified or registered mail, return receipt requested, whichever occurs sooner. ARTICLEXVll- SURRENDER OF POSSESSION Lessee shall yield and deliver possession of the Premises to Lessor at the expiration or earlier termination ofthis Agreement, including the expiration or termination ofany renewal or extension ofthis Agreement, "broom clean" and in good condition, except for reasonable, ordinary wear and tear, except for the effects offire or other casualty not the fault ofLessee. ARTICLE XVIII

- LESSOR'S RIGHTTO RECAPTURE PREMISES
Lessor shall have the right to recover the use of the Premises, or any portion thereof, during the term ofthis Agreement or any renewal with thirty (30) day written notice by Lessor to Lessee. Upon exercise of these recapture rights, Lessor shall relocate Lessee to a comparable facility or facilities, ifany such are available, at the Grand Strand Airport.

ARTICLEXIX

- DAMAGE TOPREMISES Ifall or any portion ofthe Premises required to be maintained by Lessee shall be partially damaged by fire or other casualty through no fault ofLessee, but not rendered unusable in Lessor's sole opinion, the Lessee shall repair the damage with due diligence at Lessee's expense and there will be no abatement of rent. However, if Lessee elects not to effect repairs, Lessee shall immediately vacate the Premises and this Lease Agreement will be declaredterminated. Ifall or any portion ofthe Premises required to be maintained by Lessor shall be damaged Page 17 HCDA·000051by fire or other casualty, butthe damage can be repaired in less than sixty (60) days from the date ofthe beginning ofthe repairs in Lessor's sole opinion, Lessor may, in its discretion, proceed with the repairs with due diligence, at Lessor's expense, and the rental will be equitably adjusted or abated until the damage has been repaired, ifthe damage resulted from no fault ofLessee. In the event the Premises or a substantial part thereof, through no fault of Lessee, is completely destroyed by fire or other casualty or so damaged that repairs could not be completed, in Lessor's sole opinion, within sixty (60) days from the date ofthe beginning ofthe repairs, then, at the option of Lessor, either: (I) said Premises shall be repaired or reconstructed with due diligence by Lessor at Lessor's expense and the rental shall be equitably adjusted or abated during the reconstruction; or (2) Lessor shall give the Lessee notice terminating this Agreement without further obligation to Lessee. Lessor shall make the election under this Article within ninety (90) days ofthe fire or other casualty causing the damage or destruction. Lessee shall be responsible for damages and cost of repairs or reconstruction that result from fire or casualty resulting from Lessee's, or Lessee's employees', suppliers', or invitees' negligent or willful conduct. Lessor and Lessee agree to each obtain their own casualty insurance as to their own property. In the event of casualty, all of Lessor's casualty insurance proceeds shall be paid to Lessor.] ARTICLEXX

- FORCE MAJEURE Neither Lessor nor Lessee shall be deemed in violation of this Agreement if either is prevented from performing any ofits obligations hereunder by reasons of strikes, boycotts, labor disputes, embargos, shortages ofmaterials, acts ofGod, acts ofthe Public Enemy, acts ofsuperior governmental authority, floods, riots, rebellions, acts of sabotage, or other circumstances over which the parties have no control; however, this Article shall in no case be construed to excuse Lessee from paying Lessor any monies due hereunder. In any case where either party believes this PagelS HCDA-000052Article applies, such party shall promptly give the other party written notice of Force Majeure preventing performance. ARTICLEXXI

- COMPLIANCE WITH LAWS AND REGULATIONS Lessee, at Lessee's sole cost and expense, shall observe and obey and shall require its employees, suppliers and business invitees to observe and obey all present and future federal, state, county, local or Department of Airports laws, statutes, ordinance, codes, rules or regulations relating to the use or occupancy of the Premises, relating to the use or occupancy of vehicle parking areas, aircraft operations areas and any other areas to which Lessee has access pursuant to this Agreement or any activities ofLessee, its employees, suppliers, and invitees undertaken on or
near any ofthe areas. As used herein, laws, statutes, ordinances, codes, rules orregulations include, without limitation, all ofthe same dealing with any substance that is listed, defined, orregulated as
a hazardous substance, hazardous water, or otheJwise classified as hazardous ortoxic by any ofthe foregoing governmental entities or any agency or department thereof, and includes all ofthe same dealing with asbestos, radon, any polychlorinated biphenyl, urea, formaldehyde foam insulation, explosive or radioactive material, motor fuel or other petroleum hydrocarbons, or which causes or poses a threat to the environment or to the health or safety ofpersons on or near the Premises. As to disposal of such substances, Lessee will maintain a contract with a licensed and recognized waste disposal company that meets the criteria for such companies as they may be changed from time to time by the Department ofAirports. When requested, Lessee will provide Lessor with a written copy of the contract and a current letter from the contractor acknowIedging that the contract is in effect. Lessee agrees to indemnify and hold Lessor harmless from any and all penalties, losses, liabilities and costs, including attorney's fees, remediation costs, and laboratory and investigative costs arising from Lessee's failure to comply with this Section.

Page 19 HCDA·000053

### ARTICLE XXII

- ENVIRONMENTAL COMPLIANCE
Lessee agrees that it will comply with all federal, state, county, and local laws, rules, regulations and standards that are or may become applicable to its activities under this Lease, and it is responsible for obtaining any environmental permits required for its operations under the Lease. ARTICLEXXIII

- GOVERNING LAWS AND VENUE
This Agreement shall be governed by and construed in accordance with the laws of the State ofSouth Carolina. Any cause ofaction between the parties arising out ofor involving this Agreement shall be brought in the Court ofCommon Pleas, or ifapplicahle, Magistrate's Court (or any other Court of like or similar name with identical jurisdiction), Fifteenth Judicial Circuit, Horry County, South Carolina. ARTICLEXXIV

- PRIORAGREEMENTS SUPERSEDED Any prior agreements between the parties with respect to the Premises, whether written or oral, are superseded by this Agreement and made a nullity. This Agreement constitutes the entire agreement ofthe parties with respect to its subject matter and it 

### may not be modified, amended or extended except by a subsequent instrument executed with the same formalities as this Agreement. ARTICLEXXV

- INVALIDITY In the event that any provisions, portions, or applications of any provisions of this Agreement are held unenforceable or invalid by any Court ofcompetentjurisdiction, the validity and enforceability ofthe remaining provisions, or portions or applications thereof, shall not be affected, and Lessee and Lessor shall promptly negotiate revisions to the affected provisions, or portions or applications thereof, with a view to effecting, as close as possible, the original

HCDA·000054intentions oftheparties. ARTICLE XXVI - NON-DISCRIMINATION/TITLE VI
Lessee for itself, its successors and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running with the Premises that: (I) No person on the grOtmds ofrace, color, or national origin shall be excluded from participation in, denied the benefit of, or otherwise be subjected to discrimination in the use ofthe 

### Premises; (2) In the construction of any improvements hereon, over or under such land and the furnishing ofservices thereon, no person on the grounds ofrace, color, orotherwise be subjected to 

### discrimination; (3) Lessee shall use the Premises in compliance with all other requirements imposed by

or pursuant to Title 49, Code of Federal Regulations, Department ofTransportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation

- Effectuation ofTitle VI ofthe Civil Rights Act of 1964, and as said regulations may be amended. (4) Lessee fmiher agrees that in the event of breach of any of the above nondiscrimination covenants, Lessor shall have the right to terminate this Agreement and re-enter and repossess said Premises and hold the same as if said Agreement had never been made or issued. This provision shall not be effective until the proceedings outlined in Article 49, Code ofFederal Regulations, Part 21, are followed and completed including exercise orexpiration ofappeal rights. (5) It is agreed and acknowledged that, pursuant to 49 CFR Part 21 Appendix C(b)(2)(ii) and 28 CFR 42.405(c) (insert contractor or lessee as appropriate) shall display in its public areas signage provided by Airport as required by the FAA stating that discrimination based Page 21 HCDA-000055upon race, color or national origin is prohihited.

ARTICLE

## xxvn- CAPTIONS AND HEADINGS
The titles ofthe Articles in this Agreement are included only as a matter ofconvenience and for reference and in no manner define, limit, broaden, or describe the scope or intent ofany of the provisions ofthis Agreement. ARTICLE XXIII - WAIVER Continued performance by either party pursuant to the terms of this Agreement after a default in any ofthe terms, covenaflts, provisions 

### andlor conditions by the otherparty, shall not be deemed a waiver ofany rightto terminate this Agreement or pursue any other remedy available at law or in equity for the default, and no waiver ofany default shall be construed as, or act as, a waiver of any subsequent default, of the same, similar or different term, covenant, provision andlor condition. ARTICLE XXIX - REMEDIES CUMULATIVE
All Lessor's remedies arising out of this Agreement or provided by statute shall be cumulative and no single remedy shall be exclusive of another. The election of one remedy by Lessor shall not operate to foreclose any other remedy. ARTICLE XXX
- SECURITY DEPOSIT
Lessee shaH place on deposit with Lessor 

### a security fee equal to two month's base rental for the facilities. Lessee covenants and agrees that Lessor may use this security fee against any and all unpaid indebtedness legally owed by Lessee to the Lessor. If Lessor is required to utilize any
Page 22 HCDA·000056portion ofthis security fee during the term ofthis Agreement, or any subsequent renewal term, the Lessee shall replenish the security fee up to the equivalent oftwo month's base rental.

ARTICLEXXXI

- EFFECTIVE DATE
This Agreement shall become effective on the date specified herein below. Lessor and Lessee specifically covenant and agree that this Lease shall not become valid until and is entirely contingent upon the approval of, by three readings ofan ordinance, ofthe Horry County Council.

IN WITNESS WHEREOF, the parties hereto have executed these presents as ofthe day and year ascribed herein. WITNESSES: FORLESSOR: HORRY COUNTY" 

### By: Its: -:-:-r-:---:-:--:----#"-----

WITNESSES: FORLESSEE: EXECUTIVE HELICOPTER, INC.

# ~flLt!C <S

# BY'~~~=-------_ Witness#! \IIIIIII/t Its:**~~** _______ _ 

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'III 

### Caro\\\", 111/11111111\ Page 23 HCDA-000057STATE OF SOUTH CAROLINA COUNTY OF HORRY ) ) ) PROBATE AS TO LESSOR

PERSONALLY APPEARED BEFORE ME, 

# H.K""""c.!f! \.l"**"o~** , and made the oath that he or she saw the within named CHilli E<..\)erDl;rt , Horry County Administrator, authorized representative ofHorry County, as Lessor, sign, seal, and as his act and deed deliver the within written LEASE AGREEMENT; and that he or she with the other witnesses subscribed hereinabove witnessed the execution thereof.

ISl Witness SWORN TO BEFORE ME this 

# d,3 day of

### -=t1~. 2014. 

# lw J.**~bt)z:Url","";** '" (L.S.) Notary Public for South Carolil My Commission Expires: 

## d,

# -1'0

# -19

Page 24 HCDA-000058STATE OF SOUTH CAROLINA COUNTY OF HORRY ) ) ) PROBATE AS TO LESSEE

PERSONALLYAPPEAREDBEFOREME 

# (l,r.e-{C

# O

.

# bbc ,and made the oath that he orshe sawthe within named

# ~~, authorized representative ofExecutive Helicopter, INC, as Lessee, sig, , seal, and as h,s act and deed deliver the within written LEASE AGREEMENT; and that he or she with the other witnesses subscribed hereinabove witnessed the execution thereof.

# ~$~ 1"1 Witness SWORN TO BEFOREME this 

## :1.0 day of 

## ffi**Q~**

# ~~l)t:.~ (L.S.) ,2014. Notary Public for South Carolina My Commission Expires: .;1. 

### 5".**~**

Exhibit A

Page 25 HCDA-000059

### eREHangars #10

FrontofHangar#10, ramp side entrances to hangar and office space

Page 26 

## fOOr 

# ClJalitY Due 

# lo Condition of Origlnat.**a~iU~.ry** 

# v.**s~:'rrtx~i'" f~1f:J~C** **.-------~-----------** --------------------- --- HCDA-000060

## GRAND STRANDAIRPORT SPACEUSEPERMIT 

# l! ""I'''SOIMR\ 

# Cu

TIllS SPACE USE PERMIT ("Permit") is made and entered into as ofthe**~** day of**~P\1s,,'"** &.02013, by and between HORRY COUNTY, SOUTII CAROLINA, ACTING BY AND THROUGH ITS DEPARTMENT OF AIRPORTS ("County") and BARNSTORMERS AERIAL ADVERTISING ("Company"), a business entity formed and existing under the laws ofthe State ofSouth Carolina, and authorized to dobusiness inHorry County, South Carolina. WITNESSETH WHEREAS, County is the operator ofthe Grand Strand Airport ("Airport"); and WHEREAS, Company desires to occupy and use space in Hangars #8 & #9 plus sis (6) aircraft parking spots directlyinfront ofsubjecthangars located on Grand StrandAirportproperty, to conduct its "BannerTowing Operations" business; and WHEREAS, County is willingto permitCompanyto occupyanduse space inHangars#8 & #9 plus six(6) aircraftparking spots directly infront ofsubjecthangars atthe Grand StrandAirport, subjectto therestrictions and terms providedherein: NOW,THEREFORE, County and Company agree as follows: I. SpaceUse. Countyherebypermits Companyto occupy anduse Hangars #8 & #9 plus six (6) aircraft parking spots directly in front of subject hangars, together with any surrounding curtilage and parking ("Space") to be utilized for Compaoy's "Banner Towing Operations" business. 2. Term. The term ofthis Permit shall commence onAugust 1, 2013, and it shall continue in force aod effect until January 31, 2014, butno longer than, six (6) months from the date of commencement unless otherwise earlier terminated. Prior to actual physical occupancy of Space by Compaoy, eitherparty may terminate this Permitfor any reason upon the giving at leastthirty (30) days written notice to the otherparty. After actual physical occupaocy ofthe Space by Company, either party may terminate this Permit for any reason by giving at least thirty (30) days written notice to the other party. Any act of default hereunder, including withoutlimitationfailure topayfees whendue, shallterminate anyright; license orpermission for use of Space immediately upon event ofdefault. This Permit shall not be renewed or extended, nor shall aoother such Permit be entered into between the same parties within twelve (12)months from the date ofexpirationofthisPermit, withoutpriorapproval ofHorry County Council. 3. Use. Duringthetermhereof, Companyshall occupy and use Spacepermittedby Countysolely in connectionwith its "BannerTowingOperations"business atthe Grand StrandAirportto the extent permitted by and fully in compliaoce with all applicable rules, regulations, and requirements ofanyFederal, State, CityorCountyregulatory agencyhavingjurisdiction over the Company's operations, subject to all terms aod conditions ofthis agreement. Company's

1

HCDA-000061employees and customers will have reasonable access to and from and the right to use and occupy Space for the sole purpose of engaging in or furthering Company's business. Company'semployeesmustbewell groomed andneatinappearance atall times. TheDirector ofAirports must approve all signs and displays to be erected on the Space. Company shall fully comply with all safety and securitypolicies/directives as establishedbythe Airport. 4. Fee; DefaultInterest; LatePayment; SecurityDeposit. A. Fee. As the Fee for occupancy and use of the Space, Company shall pay County monthly payments ofOne Thousand Two Hundred & 00/100 ($1,200.00) dollars per month. Company shall pay said amounts without set-offordeduction, in advance and without demand onorbeforethe first day ofeachmonth duringtheterm hereof. 10 the eventthis Permitcommences orterminates on otherthanthe last day ofany particular month, the Fee shall be prorated. County reserves the right to adjust such rate from time to time upon thirty (30) days written notice tothe Company. B. Default Ioterest. If Company shall default in its payment ofFees or other charges required to be paid pursuant to this Permit, such unpaid amounts shall bear interest from the date ofdefaultatthe rate of 1 Y, 

### %permonth. C. Late Payment. Company acknowledges that the late payment by Company of any monthly installment offees or other charges will cause County to incur certain costs and expenses not contemplated under this Permit, the exact amount of which are difficult or impracticable to determine. Therefore, if any such amount owing is not receivedbycountywithinten (10) days following the due date thereof, Company shall immediately payto County a late charge equal to 1 Y, 

### % permonth ofsuch amount owing, in additionto anydefaultinterestwhichmaybedue asprovided above. To the extentthat any late chargeprovided for hereunder is determined to constitute interest, inno event shall suchlate charges, plusanyotherinterestdueon sums owedtoCounty hereunder, ever exceed the maximum interestrate permittedbylaw. D. Security Deposit. To assure the fuithful performance of Company's obligations hereunder, Company shall remit a deposit in the form ofcash, a letter ofcredit, or a paymentbondissuedbya reputable company licensed to issue suchbonds inthe State ofSouth Carolina, in an amountequal to two (2) months ofall applicable Fees to the County, which shallberemittedto the CountypriortotheCompany's occupancy ofthe Space. 10no event shallthis security depositbeused as paymentfor any fee setforth in A, above, withoutthe express written authorization oftheDirectoroftheHorry County DepartmentofAirports. 5.Utilities and Services. County shall supply access to water, natural gas andelectricityto the extent and capacityofthe currently existingmains, lines, transformers, andpanels. Company shall be solely responsible for the payment ofall utility charges, telephone, trashremoval, hazardous waste removal andother servicesusedby Companyinoronthe Space,to includehook-up fees, advanced deposits or other such costs, regardless ofwhether the utility charge is incurred in the name of Company or

2

HCDA·000062County. Company shall accept transfer ofall applicable utility meters to Company's name when so tenderedby County. Inthe event Company incurs anyutility charge inthename ofCounty, Company shall reimburse County for the full amount ofthe charge within five (5) calendar days ofthe date of written notice to Company of the amount of the charge. County assumes no responsibility for interruption ofsuch services for anyreason whatsoever. 4. Cleaning and Maintenance. Company, at its sole costandexpense, shallkeep the Space io a clean, neat and orderly condition at all times, and shall be responsible for maintaining all non-structural elements, including without limitation plumbiog and HVAC. Company understands that it is responsible for the conduct of its guests, permittees, invitees, and licensees on the premises. Company shall not store any personal property exterior to the building on the unimproved premises associated with the building. Company is prohibited from takiog any action which would negate or void the warranty onthe roofs ofanybuilding within its Space. 5. Alterations. Company may not make any alteration, addition, orimprovement to the Space withoutthepriorwrittenapproval of theDirectorofAirports. Company shall submit awritten request for permission to perform such alterations, which shall include a description ofthe improvements, a siteplan, and any otherdocumentationrequestedbythe DirectorofAirports to demonstrate the suitability of the improvements or alterations. Unless County elects otherwise, all permanent alterations, additions, or improvements to the Space shall become the property of County upon termination. In the event County so elects, such permanent alterations shall be removed by Company at its own cost and expense prior to date of termination. Company shall repair any damage 

### to Space caused by such removal at its own cost. All agreed upon improvements mustbe made io a workmanlike manner, io accordance with all applicable statutes, ordinances, rules and regulations, iocluding without limitation applicable building codes, and may be made only upon written approval of County's department ofAirports after review ofcompleteplansfor such improvements. 6. RightofEntry. County shallhave the rightto enterthe Space at anytime for any reasonable purpose. 9. Compliancewith Law. A. General Compliance. Company will comply with all applicable statutes, ordinances. rules. regulations. orders and directives ofany governmental authority, including County, in its occupancy and use ofthe Space. B. Acceptance ofPremises. Company accepts the Space in its "as-is" condition and County has no obligation to improve, repair, restore, or alter any portion ofthe Space. Company acknowledgesthatneither Countynoranyagent, employee, director or official ofCountyhas made anyrepresentation orwarranty, except as otherwise expresslyprovided io this Permit, with respect to the Space including, without limitation, any representation orwarranty with respectto the suitability orfitness ofthebuilding oranyportionthereofforthe conduct of Company's business. C. Jurisdiction ofOtherAgencies. IfCompany's activities and operationsshall ioanywayfall

3

HCDA-000063failure to act, of Company, its officers, directors, employees, agents, customers, vendors, coutractors orinvitees. The provisions ofthis section shall survivethe expiration orearly termination of this Permit.

C. Environmental Indemnification. Company shall also indemnify, defend (with counsel satisfactoryto County), andhold County, its departments, agencies, council, boards, commissions, committees, members, officers, directors, employees, and agents and assigns ofany ofthem harmless from and against any and all loss, cost, damage, expense, claim, cause ofaction,judgment,penalty, fine or liability, directly orindirectly, relatingto orarisingfrom the use, storage,release, discharge, handling orpresence ofHazardous Materials on, under, or about the Space or the Airport in violation of Company's obligations under this Permit ("Hazardous Materials Release"). This indemnification shall include, without limitation, (a) personal injury claims, (b) the payment ofliens, (c) diminution in the value ofthe Space, or any building included therein, or any other property at the Airport, (d) damages for the loss orrestriction onuse ofthe Space orthe Airport, (e) sums paid in settlement of claims, (f) actual attorneys' fees, consultingfees, court costs, and expert fees, (g) the cost of any investigation of site conditions, (h) the cost of any repair, cleanup, remedial, removal, or restoration work or detoxification 

### if required by any governmental authority or deemed necessary in County's reasonable judgment, (i) and any fmes associated with Company's activities. County shall bave the right but not the obligation to join and participate in, and control, if it so elects, any legal proceedings or action initiated in connection with the Hazardous Materials Release. Countymayalso negotiate, defend, approve, andappeal any actiontaken orissuedby anyapplicable governmental authoritywithregardto a HazardousMaterialsRelease. Any costs or expenses incurred by County for which Company is responsible under thisParagraphorthisPermitandhas indemnified County, (i) shallbe paidto County on demand, during the term ofthis Permit as additional fees; and (ii)from and after theexpirationorearlierterminationofthePermitshallbereimbursedbyCompanyon demand. Company's obligationspursuantto the foregoing indemnity shall survivethe expiration or termination ofthis Permit and shall bind Company's successors and assignees andinuretothe benefitofCounty's successors and assigns. II. InsuranceRequired. Companyagreesto purchase andkeepinforce andmaintainatalltimes during the term ofthis Permit, at its own expense, for the benefit ofitself and County as additionalnamedinsured, a policyorpoliciesofinsurance,issuedbyaninsurancecompanyof generally recognizedresponsibility andlicensedto do business inthe State ofSouth Carolina insuring against: (A) all liability for damage to or loss of Company's and its customer's property located onthe Space, 

### (B) liability for property damage andpersonal injury or death arising from acts or omissions ofCompany, its agents and employees, (C) liability for any damage orharm resulting from anyrelease ofanyhazardous material, as that term is defined bythe United StatesEnvironmental Protection Agency, including, butnotlimitedto, costs of remediation or mitigation of such release of hazardous materials, and (D) Workers

5

HCDA·000064Compensation claims 

### to the limits required by the State of South Carolina. Said insurance shallbe maintained throughout theterm ofthis Permitwith aninsurance company acceptable to County with liability limits ofat least $2,000,000.00. The policyorpolicies shall contain a contractual liability endorsement expressly covering the indemnification provisions of Section 10 of this Permit. Company shall also purchase, at its own cost and in its sole discretion, such business interruption orotherinsurance to protect Company's interest inthe event ofmajoror minordamage ordisasterto the Space. This Permit shall not become effective until User shall provide to the HCDA a copy of certificate(s) evidencing the above insurance. Thecertificate ofinsurance shallprovidethatno material alteration, reduction, or termination ofcoverage shall occur without the insurance carriergivingCounty atleastthirty (30) days'writtennotice priorto suchalteration, reduction, or termination. 12. Subuse and Assignment. Company shall not allow any other entityto occupy oruse any of the Space without the written consent ofthe Horry County Department ofAirports and no attempted assignment ofthis Permit by Company shall be effective. 13. GOVERNING LAW. THIS Permit SHALL BE GOVERNED BY AND CONS1RUED UNDER THELAWS OF THE STATE OF SOUTH CAROLINA. This Permit is not subject 

### to alternative dispute resolution exceptwhere orderedby a court ofcompetentjurisdiction or required by operation oflaw. The forum for any action or claim brought as a result ofthis contract shall bethe Court ofCommon Pleas, Harry County, South Carolina. 14. Entire Agreement/Amendment. This Permit constitutes the complete agreement of the parties with respect to the subject matter hereof and supersedes all previous agreements, representations and understandings concerning the same, whether written or oral. The provisions ofthe Permit may be modified, amended or waived only by a written instrument executedby County and Company. 15. Termination ofPermit. Inthe event oftermination ofthis PermitbyeitherParty, Company shallpromptly causeto be removed allpersonalpropertyfrom the Space. Anypropertyleft on Airport premises by Company and remaining there fifteen days after the date on which Companyeithervacatedthe Space orshouldhavevacatedthe Space accordingto the notice of termination sentby the terminatingparty, maybe deemed, at the sale and exclusive option of the .rurport, abandoned. Once so deemed, suchproperty shall become 

### the exclusive property of the County and may be disposed of as such in accordance with applicable statutes, ordinances, and Countyprocedures. Alternatively, County may have such property removed, at Company's sole expense. 16. Operating Permit. The terms and conditions for both the "Space Use Permit" and the "Operating Permit" must be adhered to without default to either agreement. Default ofany terms or conditions by either agreement, constitutes default onboth the "Space Use Permit" andthe "OperatingPermit". 17. Notices.Anynoticesrequiredor senthereunder shallbe inwriting and shallbe sentasfollows:

6

HCDA·000065As to County: Horry CountyDepartmentofAirports II 00 Jetport Road Myrtle Beach, SC 29577 ATTN: Director ofAirports As to Company: BarnstormersAerialAdvertising P.O. Box 1728 N. Myrtle Beach, SC 29598 Either party from time to time may change its address by written notice to the other party. Notices hereunder shall be deemed effective when delivered by certified US Mail Return Receipt. 18. License. This SpaceUsePermitisintendedbytheparties, and shallbeinterpretedas, a license tousethe designated Space, andshallundernocircumstancesbedeemedorconstrued as a lease ofreal property, nor shallthe relationship betweenthe parties, as tothe designated Space, be deemedthatof landlord andtenant. ThisPermitis not a contract and does notgive, assign, or otherwise transfer from the Countytothe Company anyinterestinrealproperty, butis a mere license, revocable atthe will of the County.
WITNESS the signatures oftheparties as ofthe date first written above.

1ts:.
________ _

# ~- .. 

# -**::I~::::RME=:....R_S.:..~** __ L_AD_'__'VEc:::.RTISING

# 1f7tklUl~tWr

7

HCDA·000066

## CERTIFICATE OFAIRCRAFT INSURANCE

PRCI1JCER FOREST AGCNCY,INC. 731/}W'MADISON FOREST PARK,IL 60130
BARNSTORMER FUTE SIGNS, INC. C/O DAVID RoliERTSON P.O: BOX 172ll NORTH MVRTLEBEACH,SC 29598-1728

AIRCRAFTCOVERAGES

, .........lETlER**I~MJ)IBER** 

# .**I~~I** SA00161130-IlS C<>/EIWlE OPTlONS 

### 2!. An F&kGround and 

## """""'"toll Fllgl'lt 

## - X Induding "Passmgers A1RCRAFTUJlSUTY 

## - - 2!. INGLWINGa£W IIoEDICALPA'VM:NTS EXQ.l.IlN3CREW COVERAGE OOOE IlE5CRPfION OPTIONS



# - -

- 

# -



# - ,.....

## ~ '101.



# .**~.** HULLONty

EXPIRATIONDI"TE**_m<JNAL~t(Y/N)**

# I

03/0712014 LIMIT ' •• UElHQ LIMIT $ 62,000 $ AGREEDVALUE $ $ 1.000.000 EAace $ $ 100;000 EAPASS $ $ 5,000 EAPER $

LIMIT**·~~·TO** UMrT**~** 5 S 

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SUBROGATlONWAlVED7ttfN) N I'J'FLIESTO 250 Oed. -Nolin motion 2.500 Oed. -In motion EA

.... AGGR 10.000 EAOec

I'J'FLIESTO

### ~.**ID~1:ETHEREOF.** NOTICE WlLL BE DELIVERED IN 

## '"" ll00.E1PORlROAIl MYR11E BFAa-I..SC 29511 THE POUCYPROVISIONS- 

# ,,'**~.** 

# .. nON.AU , ACORD.21 (7009112) ThaACORD nameand logoareJagist&n!d '
.... n"n

HCDA-000067

### GRAND STRAND AIRPORT SPACE USE PERMIT THIS SPACE USE PERMIT ("Permit") is made and entered into as of the 1st day of February 1, 2014, by and between HORRY COUNTY, SOUTH CAROLINA, ACTING BY AND THROUGH ITS DEPARTMENT OF AIRPORTS ("County") and BARNSTORMERS AERIAL ADVERTISING, LLC ("Company"), a business entity formed and existing under the laws ofthe State ofSouth Carolina, and authorized to do business in Horry County, South Carolina. WITNESSETH WHEREAS, County is the operator ofthe Grand Strand Airport ("Airport"); and WHEREAS, Company desires to occupy and use space in Hangars #8 & 

### #9 plus six (6) aircraft parking spots directly in front ofthe subject hangars located on Grand Strand Airportproperty, to conduct its "BannerTowing Operations" business; and WHEREAS, County is willingto pennit Company to occupy and use space in Hangars #8 & 

### #9 plus six (6) aircraftparking spots directly in front ofthe subjecthangars located at Grand StrandAirport, subjectto the restrictions and terms providedherein: NOW, THEREFORE, County and Company agree as follows: I. 

### Space Use. County hereby pennits Company to occupy and use Hangars #8 & 

### #9 plus six (6) aircraft parking spots directly in front of the subject hangars, together with any surrounding curtilage and parking ("Space") to be utilized for Company's "Banner Towing Operations" business. 2. Term. The tenn ofthis Permit shall commence on February 1, 2014, and it shall continue in force and effect until July 31, 2014 but no longer than, six (6) months from the date of commencement unless otherwise earlier tenninated. Prior to actual physical occupancy of Space by Company, eitherparty mayterminate this Permit for any reason upon the giving at least five (5) days written notice to the other party. After actual physical occupancy ofthe Space by Company, either party may terminate this Permit for any reason by giving at least thirty (30) days written notice to the other party. Any act of default hereunder, including without limitation failure to pay fees when due, shall terminate any right, license or pennission for use of Space immediately upon event of default. This Permit shall not be renewed or extended, nor shall another such Pennitbe entered into between the same parties within twelve (12) months from the date ofexpiration ofthis Permit, withoutprior approval ofHorryCounty Council. 3. Use. During the term hereof, Company shall occupy and use Space permitted by County solely in connection with its "Banner Towing Operations" business at the Grand Strand Airport to the extent pennitted by and fully in compliance with all applicable rules,

1

HCDA-000068regulations, and requirements ofany Federal, State, City or County regulatory agency having jurisdiction over the Company's operations, subject to all terms and conditions of this agreement. Company's employees and customers wili have reasonable access to and from and the right to use and occupy Space for the sole purpose of engaging in or furthering Company's business. Company's employees must be well groomed and neat in appearance at all times. The Director ofAirports must approve all signs and displays to be erected on the Space. Company shall fully comply with all safety and security policies/directives as establishedbythe Airport. 

### 4. Fee; DefaultIuterest; LatePayment; SecurityDeposit. A. Fee. As the Fee for occupancy and use of the Space, Company shall pay County monthly payments of One Thousand Two Hundred and Noll00 ($1,200.00) dollars per month. Company shall pay said amounts without set-offor deduction, in advance and without demand on or before the first day ofeach month during the term hereof. In the event this Permit commences or terminates on other than the last day of any particular month, the Fee shall be prorated. County reserves the right to adjust such rate from time to time uponthirty (30) days written notice to the Company. 

### B. -Gfess 

### Sales Percentage Fcc. FOi each menth Eit:triHg 

### the tefJfl**A~t=eQf** aae is additieR>**~ly·base QGGypa:tl~d-use**  of

### the Space fee, COmpaq), 

### sbaU.pay-enunty,

# '-Vv

as adriiti@Rsl 

### fe-.lt1lTOTllhly adjtlstmtlflklmeoot-.whielrshall b@ 

### the difrereRee;-+!4ny,**~b:.."OCCtIP!l11cY'1lt!d-'tIS6-\?l4he:£Palltl~fe0..te-be-paid-during-sa:icf..** maRth

## aHe twenty fear-fM%f-per.ceru.of-1he. gooss sa\"s·during

### elleh .lieh OCet!j'ltlft6Y' 

### meHtit, wltic1ievCi is gteat6I.**~8SS** 

### Bales il'lslude, Iuitbollt limit-atleR, 

### tRg §lZBSS B@lling**"prj~~** Qf 

### all FA8rGaaRdisil, "Sf
.ices, concessions, or pdvHeges that eaeHr 

### in "hele SF is patt, ou the Space, 81 as**?-~t** 

### of aetivitiCS'"t)n 

### or !l5seei&toa**'Ni~R** 

### the Sflaee, dHl'iBg**tRe-tefllHlf-l:IHs-Permit<.~** lAQI'lQlftg 

### the g.eBS 

### ehargcs df 

### ail SO[ ,,'lees tg**cu~tomers** Sf' pattons 

### perfo11ned h¥
. .{;empall¥ 

### gr aflY 

### Gther perSOD, 

### entity, firm af ee)l'l'6Iatisa, in, "pon, or tbt:Qugh atlf p.art-oi.tbe..8pa.cemrring..the4efm-ofthis Permit and
..

### 1/**"al~"'seprjces** that 

### are sobject 18 the**~outh** CaroIiflll-8lTHlSement; sales, lise er 6"6i66 tal< S0t forth.in Title 12 ofthe 

### Sema Catolina Code ufLaws, 1976, as amended. Notvvithstdnci1"lg 

### m,tliing helein ts tile**~ontrary,** grQSS SaleS sball not 

### inchae the arnel:ffit 

### sfaBY**am.!l~ement, sah~s,**  tl5e Of eH:Gise tax@s 

### ::(3aig by 

### Compae) 8tlfiHg stroh tel'ftl 

### efthis PiRtlit. C. Payment of Fee and 

### OW"" llales Perecrdage

# fiee*" The Fee shall be paid in aid amounts without set-off or deduction, in advance and without demand on or before the first day of each month during the term hereof from and after the CommencementDate. The Gross Sales Percentage Fee, ifdue, shallbepaid within ten (l0) days ofeach month following a calendarmonth occurring from and after the CommencementDatethrough the expiration orterminationofthis Agreement, at which time Lessee shall provide Lessor, without demand, a statement ofGross Receipts for the prior calendar month together with the amount, ifany, by which

2

HCDA·000069the Gross Sales Percentage Fee due for the previous calendar year exceeds the Fee. D. Default Interest. If Company shall default in its payment of Fees or other charges required to be paid pursuant to this Permit, such unpaid amounts shall bear interest from the date ofdefault attherate ofI 

### Yz %permonth. E. Late Payment. Company acknowledges that the late payment by Company of any monthly installment offees or other charges will cause County to incur certain costs and expenses not contemplated under this Permit, the exact amount of which are difficult or impracticable to determine. Therefore, if any such amount owing is not received by county within ten (10) days following the due date thereof, Company shall immediately pay to County a late charge equal to I 

### y, % per month of such amount owing, in addition to any default interest which may be due as provided above. To the extent that any late charge provided for hereunder is determined to constitute interest, in no event shall such late charges, plus any other interest due on sums owed to County hereunder, everexceedthe maximum interestrate permitted by law. F. Security Deposit. To assure the faithful performance of Company's obligations hereunder, Company shall remit a deposit in the form ofcash, a letter ofcredit, or a payment bond issued by a reputable company licensedto issue such bonds in the State ofSouth Carolina, in an amount equal to two (2) months ofall applicable Fees to the County, which shall be remitted to the County prior to the Company's occupancy of the Space. In no event shall this security deposit be used as payment for any fee set forth in A, above, without the express written authorization of the Director of the Horry CountyDepartment ofAirports. 3.Utilities and Services. County shall supply access to water, natural gas and electricity to the extent and capacity ofthe currently existing mains, lines, transformers, and panels. Company shall be solely responsible for the payment of all utility charges, telephone, trash removal, hazardous waste removal and other services used by Company in or on the Space, to include hook-up fees, advanced deposits or other such costs, regardless ofwhether the utility charge is incurred in the name of Company or County. Company shall accept transfer of all applicable utility meters to Company's name when so tendered by County. In the event Company incurs any utility charge in the name ofCounty, Company shall reimburse County for the full amount ofthe charge within five (5) calendar days ofthe date ofwritten notice to Company ofthe amount ofthe charge. County assumes no responsibility for interruption ofsuch services for anyreason whatsoever.
4. Cleaning and Maintenance. Company, at its sole cost and expense, shall keep the Space in a clean, neat and orderly condition at all times, and shall be responsible for maintaining all non-structural elements, including without limitation plumbing and HVAC. Company understands that it is responsible for the conduct of its guests, permittees, invitees, and licensees on the premises. Company shall not store any personal property exterior to the

3

HCDA-000070building on the unimproved premises associated with the building. Company is prohibited from taking any action which would negate or void the warranty on the roofs of any buildingwithin its Space. 5. Alterations. Company may not make any alteration, addition, or improvement to the Space without the prior written approval of the Director of Airports. Company shall submit a written request for permission to perform such alterations, which shall include a description ofthe improvements, a site plan, and any other documentation requested by the Director of Airports to demonstrate the suitability ofthe improvements or alterations. Unless County elects otherwise, all pennanent alterations, additions, or improvements to the Space shall become the property of County upon termination. In the event County so elects, such permanent alterations shall be removed by Company at its own cost and expense prior to date oftermination. Company shall repair any damage to Space caused by such removal at its own cost. All agreed upon improvements must be made in a workmanlike manner, in accordance with all applicable statutes, ordinances, rules and regulations, including without limitation applicable building codes, and may be made only upon written approval of County's department ofAirports afterreview ofcomplete plans for such improvements. 6. Right of Entry. County shall have the right to enter the Space at any time for any reasonablepurpose. 9. CompliancewithLaw. A. General Compliance. Company will comply with all applicable statutes, ordinances, rules, regulations, orders and directives ofany governmental authority, including County, in its occupancyand use ofthe Space. B. Acceptance ofPremises. Company accepts the Space in its "as-is" condition and County has no obligation to improve, repair, restore, or alter any portion ofthe Space. Company acknowledges that neither County nor any agent, employee, director or official of County has made any representation or warranty, except as otherwise expressly provided in this Permit, with respect to the Space including, without limitation, any representation or warranty with respect to the suitability or fitness ofthe building or any portion thereoffor the conduct of Company's business. C. Jurisdiction ofOther Agencies. IfCompany's activities and operations shall in any way fall within thejurisdiction orregulatory authority ofother governmental agencies, including without limitation the South Carolina Department of Health and Environmental Control ("DHEC"), Company must secure and produce evidence ofsuch agency's final approval of such operations or occupancy of Space. If such activities and operations fall outside DHEC's jurisdiction, Company shall procure and submit to County the statement ofan appropriately authorized DHEC representative to that effect. Company acknowledges that its representations and warranties pursuant to this subsection are material to the County's

4

HCDA-000071agreementto permitthe Company's use ofthe Space. 10. Release and Indemnity. A. Release. Company hereby releases County from any liability to Company for any loss or damage to any property of Company, its officers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees, and for the death or injury of any officers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees of Company, occasioned hy theft, fire, acts of God, public enemy, injunction, riot, strike, insurrection, war, governmental body or authority including County, or any othermatterbeyondthe control ofCounty, or for any injury or damage orinconvenience which may arise through repair or alteration ofany part ofthe Space, or failure to make repairs, or for any cause whatsoever, except the sole negligence or willful misconduct ofCounty. B. Indemnitv. Company hereby releases and will defend, indemnify and hold harmless County, its departments, agencies, boards, commissions, committees, officers, directors, employees, and agents and assigns of any ofthem ("Indemnified Parties") from and against any and all liability, claims, penalties, fines, causes ofaction, suits, liens, losses, loss ofuse, damages, costs and expenses ofany kind (including legal fees and litigation costs) which may be suffered by, accrued against, be charged to or be recoverable from the Indemnified Parties by reason of; (1) any occurrence, in, upon, or atthe Space, however caused, or any cause ofaction ofany nature whatsoever, in law or equity, arising out ofor incidental to this Permit orthe use or occupancy ofthe Space; and/or (2) any occupancy, use, or misuse ofthe Space, orthe areas surrounding the Space, orthe service areas, parking areas, pedestrian areas, pedestrianwalks ordriveways in or around the Space, by Company, its officers, directors, employees, agents, customers, concessionaires, vendors, contractors or invitees, including without limitation uses or misuses which may render the premises subject to the Americans with Disabilities Act in whole orin part; andlor (3) any violation ofany law, regulation or ordinance by Company or its employees, officers, directors, employees, agents, customers, concessionaires, vendors, contractors orinvitees; and/or (4) any occurrence arising in whole or in part out ofthe negligent act, or negligent failure to act, of Company, its officers, directors, employees, agents, customers, vendors, contractors orinvitees. The provisions ofthis section shall survive the expiration orearlytermination of this Permit.

5

HCDA-000072C. Environmental Indemnification. Company shall also indemnifY, defend (with counsel satisfactory to County), and hold County, its departments, agencies, council, boards, commissions, committees, members, officers, directors, employees, and agents and assigns ofany ofthem harmless from and against any and all loss, cost, damage, expense, claim, cause of action, judgment, penalty, fine or liability, directly orindirectly, relating to or arising from the use, storage, release, discharge, handling or presence ofHazardous Materials on, under, or about the Space or the Airport in violation of Company's obligations under this Permit ("Hazardous Materials ReJease").- This indemnification shall include, without limitation, (a) personal injury claims, (b) the payment ofliens, (c) diminution in the value ofthe Space, or any building included therein, or any other property at the Airport, (d) damages for the loss or restriction on use ofthe Space or the Airport, (e) sums paid in settlement of claims, (f) actual attorneys' fees, consulting fees, court costs, and expert fees, (g) the cost of any investigation of site conditions, (h) the cost ofany repair, cleanup, remedial, removal, or restoration work or detoxification ifrequired by any governmental authority or deemed necessary in County's reasonable judgment, (i) and any fines associated with Company's activities. County shall have the right butnot the obligation tojoin and participate in, and control, ifit so elects, any legal proceedings or action initiated in connection with the Hazardous Materials Release. County may also negotiate, defend, approve, and appeal any action taken or issued by any applicable governmental authority with regard to a Hazardous Materials Release. Any costs or expenses incurredby County for which Company is responsible under this Paragraph or this Permit and has indemnified County, (i) shall be paidto County on demand, duringthe term ofthisPermit as additional fees; and (ii)from and after the expiration or earlier termination ofthe Permit shall be reimbursed by Company on demand. Company's obligations pursuant to the foregoing indemnity shall survive the expiration or termination ofthis Permit and shall bind Company's successors and assignees and inure to the benefit ofCounty's successors and assigns.
II. Insnrance Reqnired. Company agrees to purchase and keep in force and maintain at all times during the term ofthis Permit, at its own expense, for the benefit ofitselfand County as additional named insured, a policy or policies of insurance, issued by an insurance company ofgenerally recognized responsibility and licensed to do business in the State of South Carolina insuring against: (A) all liability for damage to or loss ofCompany's and its customer's property located on the Space, (B) liability for property damage and personal injury or death arising from acts or omissions ofCompany, its agents and employees, (C) liability for any damage or harm resulting from any release ofany hazardous material, as that term is defined by the United States Environmental Protection Agency, including, but not limitedto, costs ofremediation or mitigation ofsuch release ofhazardous materials, and (D) Workers Compensation claimsto the limits requiredbythe State ofSouth Carolina. Said insurance shall be maintained throughoutthe term ofthis Permit with an insurance company acceptable to County with liability limits of at least $2,000,000.00. The policy or policies shall contain a contractual liability endorsement expressly covering the indemnification

6

HCDA-000073

### provisions ofSection lOafthis Pennit. Company shall also purchase, at its own cost and in its sale discretion, such business interruption or other insurance to protect Company's interest in the event ofmajor or minor damage or disaster to the Space. This Pennit shall not become effective until User shall provide to lbe HCDA a copy of certificate(s) evidencing the above insurance. The certificate ofinsurance shall provide that no material alteration, reduction, or tennination of coverage shall occur wilbout the insurance carrier giving County at least thirty (30) days' written notice prior to such alteration, reduction, ortermination. 12. Snbnse and Assignment. Company shall not allow any other entity to occupy or use any of the Space without the written consent ofthe Harry County Department ofAirports and no attempted assignment ofthis Permitby Company shall be effective. 13. GOVERNING LAW. TIllS Permit SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF SOUTH CAROLINA. This Permit is not subject to alternative dispute resolution except where ordered by a court ofcompetentjurisdiction or required by operation oflaw. The forum for any action or claim brought as a result ofthis contract shall be the Court ofCommonPleas, Harry County, South Carolina. 14. Entire Agreement/Amendment. This Permit constitutes the complete agreement of the parties with respect to the subject matter hereof and supersedes all previous agreements, representations and understandings concerning the same, whether written or oral. The provisions oflbe Permit may be modified, amended or waived only by a written instrument executed by County and Company. 15. Termination oCPermit. Inthe event oftennination ofthis Permit by eilberParty, Company shall promptly cause to be removed all personal property from the Space. Any property left on Airport premises by Company and remaining there fifteen days after lbe date on which Company either vacated the Space or should have vacated the Space according to the notice oftermination sentby the terminating party, may be deemed, at lbe sale and exclusive option of the Airport, abandoned. Once so deemed, such property shall become the exclusive property of the County and may be disposed of as such in accordance with applicable statutes, ordinances, and County procedures. Alternatively, County may have such property removed, at Company's sale expense. 16. Operating Permit. The terms and conditions for both the "Space Use Permit" and the "Operating Permit" must be adhered to without default to either agreement. Default ofany tenns or conditions by either agreement, constitutes default on both lbe "Space Use Permit" andthe "OperatingPermit". 17. Notices. Any notices required or sent hereunder shall be in writing and shall be sent as follows:

7

HCDA-000074As 

### to County: HolTY CountyDepartment ofAirports II 

### 00 Jetport Road Myrtle Beach, SC 29577 

### ATTN: Director ofAirports As 

### to Company: Barnstormers Aerial Advertising P.O. 

### Box 1728 North Mvrtle Beach. SC 29598

Either party from time to time may change its address by written notice to the other party. Notices hereunder shall be deemed effective when send by U.s. mail certified with return receipt. 18. License. This Space Use Permit is intended by the parties, and shall be interpreted as, a license to use the designated Space, and shall under no circumstances be deemed or construed as a lease ofreal property, nor shall the relationship between the parties, as to the designated Space, be deemed that of landlord and tenant. This Permit is not a contract and does not give, assign, or otherwise transfer from the County to the Company any interest in real property, but is a mere license, revocable atthe will ofthe County.

8

HCDA-000075WITNESS the signatures ofthe parties as ofthe date first written above.

ATTEST:

9 

### HO**By:-L.~'!::!'L-.\,2~~~** Its: 

# :1"t'<2-C-**~** BARNSTORMERSAERIAL ADVERTISING, LLC

# BY~-**Its:_~-11."""':::..:::l'-"'-.!:.:::'¥-** __ _

HCDA-000076

## CER11F1CATE 

## OfAlRCRAItT INSURANCE



# ......... FORESTAGENCY, INC. 7lI10W'MADISON FOREST PARK. IL 00130
FLfTESIGNS, INC. CIODAVlllROdERTSON P,O. BOX1728' NORTH MYRTLEBEACH,SC 2ll598-172B

AIRCRAFTCOVBtAGES 

# 1==.(l5 I CXW712O'f;' 

# """'"""" <lPl10NB 

### 25. AD Rf8k GIound and 

# "'.......,.

# ..... fight 

## - X Indudiflg P8.ti6ortgets AlRCRAFTUMILUTY 

## - 

# - r.EDICAlPA'¥1IIEtlTS 

### 25.

..........CI£W cm/EIWiIE CODE I'FtiO RPnoN 

## """"""' r- 

## - i- 

## - i- 

# -**~ I~**  ,A""""'I101.

""""
...""It" lll11.EWOR1RlIIl UYRREIEAai.. SC &'17 IftJUOM.Y

0310712014 Y LIMIT 

# _10

3 62,000 AGREEDVALUE $ 1,0lI0,000 ..occ**~** 100;000 

# ........ $ 5,000 EAPER

..

IT _JESm $**~. ~** 

..... A

### .~ 

# :2::>-.
ACORD2tIDJIIIt2) TheACORD Ram.andlogo_1Wg1a:I:enMI maN 03J05i2013



# 'I N ty'ffi
LIMIT __ ..

no $ 250 Dod.
_NoUn motion $ 2,_ DecI. -InmoUon $ 

### I"'

.... $ 

# ""'" S 10,000 I!AOCC

'IMIT """""TO**~** 

# , 

# ""

•POLICIES IDEUVEREDIN



# _.

HCDA·000077STATE OF SOUTH CAROLINA) ) LESSOR OFHORRY ) LEASEAGREEMENT

THIS LEASE AGREEMENT, made and entered into this 1"' day of 

### ;4Pf?f

### L 

# !

# 6, 20J.!£-, by and between HORRY COUNTY, a political subdivision organized and existing under the laws of the State of South Carolina ("Lessor") and Barnstormers Aerial Advertising, LLC a business entity organized and existing under the laws of the State of South Carolina ("Lessee"). WITNESSETH: WHEREAS, Lessor has the right to lease certain property at the Grand Strand Airport (CRE) for aerial advertising (also known as bannertow operations); and WHEREAS, The Lessee is desirous ofleasing buildings at CRE labeled Hangar #8 and Hangar #9, approximately 6,000 square feet, together with surrounding curtilage to support said operations by the Lessee, aircraft parking areas limited to six (6) aircraft parking spots directly in front ofsubject hangars and vehicle parking limited to two (2) employee vehicles on Airport property at one time; and NOW, THEREFORE, for and in consideration of the premises and mutual covenants contained herein, Lessor and Lessee agree as follows: ARTICLE I - PREMISES A. Premises. Lessor hereby leases to Lessee portions ofCRE buildings as follows: Approximately 6,000 square feet of the buildings identified as Hangar #8 and Hangar #9, including ramp space for parking not to exceed six (6) aircraft and surrounding curtilage located at CRE Airport and attached hereto as Exhibit A and B and, incorporated herein by reference ("Premises"). B. ACCEPTANCE OF PREMISES. Lessee accepts the premises in their "as-is" condition and County has no obligation to improve, repair, restore, or alter the premises. Lessee acknowledges thatneither County nor any agent, employee, director orofficial ofCounty has made

HCDA·000078any representation or warranty, except as otherwise expressly provided in this Lease, with respect to the building (including the premises) including, without limitation, any representation or warranty with respect to the suitability or fitness ofthe building or any portion for the conduct of lessee's business. Lessee acknowledges that it has been informed that the building in which the Premises are located may not be compliant with the Americans with DisabilitiesAct [the Act], and accepts the Premises in that condition. Lessee acknowledges that it is responsible for compliance with any requirements that may be imposed under the Act for Lessee's anticipated use of the premises. Lessee agrees to indemnify and hold harmless Lessor from any and all claims arising from any failure to comply with the Act, and agrees to notify Lessor of any modifications or accommodations that Lessee undertakes in orderto comply withthe Act. C. DISCLAIMER OF WARRANTIES. Lessee represents that the Lessee has inspected the Premises and agrees to accept the Premises in an "as is" condition. LESSOR DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES IN CONNECTION WITH THE PREMISES, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FORA PARTICULAR PURPOSE.

D. Covenants and Deed Restrictions. The Premises are leased to Lessee subject to all covenants, conditions, restrictions, requirements, easements, rights-of-way, reservations, rights, agreements and encumbrances set forth in the deed or deeds which evidence conveyance ofthe premises or any portion thereof. Lessee agrees to abide by andlor comply with each and every covenant, condition, restriction, requirement, easement, right-of-way, reservation, right, agreement and encumbrance that may be contained in the deed or deeds referenced. Lessee agrees to abide by and comply with each and every covenant, restriction, and requirement that may be contained in the deed or deeds pertaining to the Premises, ARTICLE II
- TERMAND RENEWALOPTION A. Term,-'fhe-term ofthis"AgleelIlent-shall-etlftlmenoo-August-t;-211t4-;su15ject to approval by the**H~\I~' COlffiGil.,..an~-shaH-rorrtinue**  

### ill force 

### and effect

# tora 

### p<:ciod

....**H*-f61-mtmtffl-teriRlnatil:!g-Jaflllilry-;J·+T~{}I-5;4mless** sooner termmated by operahOrl6'f 

### any clause contajned herejn !1pon expirati=-ofthe illitial tel'll'l, aHhe 

### discretion ofthe-besseF; 

### .Lessee ffift:) 

### hela eVSf-01l 

### a mollil> te-menth-basis. 

### Such**holding-ove~aH-tt()t-be** construed to**~ell@W** this 

### Lealle-Agfeemeftt f"'!'<tll} fmther1:eull belt**Hiay-be-termina~..Lesso~-6r** Lsssee upon thirty (30) days written notjce' aJJ other tenus and conditions provided.J<erein..shalI**~** remain 

### in.full fm:c® aDS @ft€cttoany such hold oyer tenancy.

HCDA-000079ARTICLE III - USE OFPREMISES A. Use. Lessee shall comply with all local, state and federal laws, rules, regulations and ordinances that are or may become applicable to its activities under this Lease, including, without limitation, all applicable zoning, parking, signage, and other ordinances and the height and lighting requirements ofthe FederalAviation Administration ("FAA"). Lessee shall have the non-exclusive right and obligation to use the Premises for the operation ofthe Lessee's business consisting ofbanner tow operations. Lessee shall have the right to perform aviation activities related to the maintenance, repair, and operation ofits owned aircraft for conducting its business at the airport. Use ofthe Premises for any other purposes shall not be permitted unless agreed to in writing, in advance of such use, by the Lessor. Lessee shall not undertake any operation on the site that will cause a nuisance to (including noise andlor dust) or interfere with lawful activity on adjacent properties. With regard to parking, only vehicles operated by Lessee's employees or staff based at CRE, who are employed directly bythe Lessee and have been approved by the Director ofAirports are permitted to park on the interior ofthe security fence (Le. on the ramp). Lessee is limited to

# ~Y~o

# eli employee vehicles on Airport property at one time and must park adjacent the Premises described in this Agreement. Vehicles are not permitted to park overnight without the prior approval from Director ofAirports or a representative designated by the Director ofAirports. Lessee is prohibited from and shall not provide aircraft fueling or defueling services except as follows: (I) As to aircraft owned by Lessee to the extent permitted by the FAA, this Lease and Lessor's standards, as may be amended from time to time, which are incorporated herein by reference; and (2) As to defueling of aircraft owned by Lessee as necessary to accomplish maintenance ofthe aircraft, Lessee may defuel the aircraft, store the fuel in strict accordance with all applicable codes, rules and regulations, and reinstall the fuel into the aircraft from which it is taken in compliance with Lessor's standards; Lessee shall control all current and future lighting installed on the Premises by Lessee as to prevent illumination from being a hazard to pilots landing on, taking offfrom or taxiing on the airport. The determination ofhazard shall rest solely with thejudgmentofthe Lessor. No use shall be made or permitted to be made to the Premises, or acts done, which will
HCDA-000080cause a cancellation ofany insurance policy covering the Premises, nor shall Lessee keep or permit to be kept in, on or about the Premises any materials which may be prohibited by the standard form fire insurance policy covering such Premises. Lessee shall commit no nuisance in, on or aboutthe Premises, or permit or suffer any nuisance to be committed. Coin operated amusement devices shall not be placed or used upon the Premises without Lessor's prior written permission. Machines for vending candy, confections, beverages, light refreshments or convenience items for the use and convenience of Lessee's employees are permitted on the Premises. Company will abide by all HCDA rules, policies, and procedures for Grand Strand Airport (CRE), as may be adopted or amended from time to time B. Quiet Enjoyment. Lessee shall be entitled to the quiet enjoyment of the leased Premises provided that Lessee remains in compliance with all the terms and conditions of this Lease, and does not interfere with the rights ofany ofthe othertenants or users ofthe Airport. C. Efficient Use of Space. Lessee and Lessor agree that efficient use ofthe Premises is a common goal, to include use ofthe Premises in part to provide banner tow operations. Lessee and Lessor therefore agree that Lessor has the right to inquire of Lessee as to Lessee's past and planned utilization of Airport facilities, including those facilities that comprise the Premises. Lessee and Lessor agree that, should Lessee's utilization ofthe Premises allotted to it herein, or as this Lease Agreement may be amended at a future date, reasonably be deemed as insufficient utilization ofthe facilities, Lessor may require Lessee to submit a written plan, within fourteen (14) calendar days of its written request to Lessee to do so, detailing Lessee's plan to cure such deficiency and to utilize the Premises properly and efficiently. Such option on the part ofLessor will not be exercised more often than once every six (6) months. Upon receipt, Lessor will review the plan and may either approve the plan or exercise its rights underArticle XV, below. 

### ARTICLE IV-RENTAL A.
_ Base Rental 

### E-aje. Lessee shall pay to Lessor a ...

-t-annual**~** rent in the f'ovr+t!

.."**'f1Io4~.JvtA.** 

### <p1'f, lto
... "'0 amount of**~** 1:A8H.ttlld 

### .ll.w Hundred Dollars and Noll00 ($7,200.00) Dollars, due and

# payablti~v!i".1}) equal monthly installments of one thousand two hundred and Noll00 ($1,200.00). Lessee shall pay said amounts without demand, and without set-offor deduction, in advance on or before the first day ofeach month during the term hereofand any hold over period. In the event this Lease commences on or terminates on other than the last day of any particular month,**the~** Rent shall be prorated. Lessee shall receive no rental credit for any improvements
HCDA·000081made to the Premises. B. Utility Fee. Lessee agrees to pay Lessor One Hundred Fifty and No/lOO ($150.00) Dollars per month on the first day ofevery month ofthe lease year for utilities ofwater, gas and electric. Ifthe actual costs ofproviding utilities charged to Lessee are more than the Utility Fee provided herein, the Utility Fee shall be increased by a corresponding amount. This payment is in additionto the base rent and can be increased by Lessorwith thirty day written notice to Lessee.

### \JJ't1I- 

### f>rop,n" ".ro
.. 

### P**I~** 1"'00"'). 0 ",- u-hlr/f"eS

. C. Late Payment InterestiPenalties/Collection. Any**~** Rent payment, '!my" 

### p"feeMtag8 rental 

### paymellt, or payment of any other fee or charge set forth in this Agreement not received by the Lessor within ten (10) days ofthe date due shall be subject to a monthly fee ofone and one-half (1 Y, % ) percent per month or portion thereof on the entire balance due, including any previously accrued late payment / interest charges; Lessor reserves the right to impose an additional reasonable charge on any payments not made by the due date to recoup its costs associated with administering such overdue account. In the event that collection efforts are required, Lessee shall reimburse Lessor for all costs, fees and charges incurred as a result of said efforts including attorneys' fees and costs. To the extent that any late charge provided for hereunder is determined to constitute interest, in no event shall such late charges, plus any other interest due on sums owed to Lessor hereunder, ever exceed the maximum interest rate permitted by law, and in the event such amount should exceed the maximum rate, then the amount owed to Lessor shall automatically be reduced to equal the maximum amount permitted by law.


### LIH1

## .(M"~ / D. Books of**Acc~t** and Auditing.**L~ssee** shall keep true a complete records and accounts of all Gross Revcihue. All such records and accounts sha e made available to Lessor upon ten days prior notice to C se.e. All receipt forms used Lessee in its operations shall be pre-numbered and Lessee shall**mal~in** records and cal ols insuring that the forms accurately reflect all Gross Revenue ofLessee frOm its operatio. Within ninety (90) days after the end of each term, Lessee, at its own expense,

# Sh~ rn' a true and accurate statement for the preceding term of all such Gross Revenue during su ceding term (showing authorized deductions or exclusions made in computing the a un! of sue Gross Revenue), which statement shall be certified to be correct by an lndefl dent Certified Pub' Accountant. Lessee agrees to give the Lessor access during reasona hours for inspection of Le ee's books and records, and Lessee agrees it will keep and pre rve for at three (3) years all receipt n1S and other evidence ofGross

.The Lessor shall have the right at any time a from time to time to audit all ofLessee's rec ds relating to business transacted at the Airport inclr ing, but not limited to, Gross Revenue, nd the Lessee, upon requesf,af!l\.:i:1 make all such informatI n available for such

HCDA-000082**~'**

# ~~~~ If, as a result of such audit, it is establishe lat 

### Lessee or any licensee or· . isee ofLessee has understated Gross Revenue or**~iness** 

### transacted for any year by two percent (2%) or (after the deductions and**e~lliOnS** provided for herein), the entire expense ofsaid audit shall be borne see. An**~tional** Percentage Fees due as a result of such audit shan forthwith be paid by Lesse Les ith interest thereon at the rate ofeighteen percent (18%) 

### per annum from the ofthe month in which tle tsC e aney occurred. 

### E. rt8. Lessee agrees to submit, monthly and without demand, suc Statistical cerning Lessee's gross sales at the Premises as stipulated in this agreement and as may, from time to time, require. ARTICLEV

- IMPROVEMENTS/ALTERATIONS A. Prior Approval Required. Lessee shall have the right, at its sole expense, to construct, improve, modify and make additions to the facilities leased to Lessee. However, prior to any construction, improvements, modifications or additions to the Premises, Lessee must first obtain from Lessor's Department of Airports prior written approval of such construction, improvement, modification or addition, and all plans, designs, and specifications associated therewith. All construction and improvements undertaken by Lessee must be made in accordance with all applicable statutes, ordinances, rules, regulations, laws, and building codes, and must be completed in a good, substantial, and workmanlike manner without damage to or interference with existing facilities or operations. Written confirmation of compliance with all such applicable statutes, ordinances, rules, regulations, laws, and building codes shall be submitted by the Lessee to Lessor's Department ofAirports simultaneously with or prior to requesting the Department's review offmal proposed construction plans and specifications Upon the approval of such construction, plans and specifications by Lessor, Lessee shan within ninety (90) days thereafter commence construction, at its sole expense, and shall diligently prosecute such construction to its completion, in accordance with such plans and specifications. Lessee shan further furnish Lessor with a good and sufficient Surety Bond (in a form and issued by a Lessee acceptable to Lessor) insuring the completion ofthe work and the payment ofall bills in connection therewith. B. 

### Quality of Work. All improvements and alterations to the Premises must be performed by qualified contractors who are fully licensed to perform work ofthe kind proposed, and who are bonded and insured in compliance with the Lessor's policies applicable to the procurement ofconstruction services for Lessor's benefit, and shall be constructed in accordance with all applicable building codes, laws and regulations and in a good, substantial, and workmanlike manner. All materials used in any improvements by Lessee shall be of appropriate HCDA-000083quality and grade for the use to which they are employed. C. Protection ofUtility Lines and Equipment. All work undertaken pursuant to the authority granted within this Article V shall be subject to the condition that Lessee makes, at its expense, suitable arrangements for relocation of any affected governmental or Lessor's / other tenant's utility lines, cables or other equipment. Further, Lessee shall not pave roads or ramps over said utility lines, cables or equipment without the prior written approval ofLessor/ tenant. D. Titleto Improvements,Alterations and Repairs.All improvements made to the Premises and all additions and alterations thereto made upon said area by Lessee, shall be and remain the property ofLessee until expiration or termination ofthis agreement, at which time the said improvements shall, at the sole discretion and determination of Lessor, become the sole property ofLessor in their entirety. Should Lessor determine that it will not take possession ofsaid improvements at the expiration or termination of this Lease, Lessee shall completely remove within 30 calendar days after the expiration / termination all such improvements from the airport and restore the Premises to its original condition and to the satisfaction ofLessor. E. Trade Fixtures, Machinery and Equipment. If Lessee is not then in default of any provisions ofthis Lease, Lessee shall have the duty to remove from the Premises immediately before the expiration of the term, or within ten (10) days after the expiration of the term, any alterations, fixtures, machinery and equipment Lessee has on the Premises, as long as the removal will not cause structural damage to the Premises, and Lessee, at its cost, promptly restores any damage caused by the removal and restores the Premises to its prior condition as set forth below. F. Obligations ofLessor. Lessor is not obligated to provide any improvements under this Agreement.

ARTICLE VI

- MAINTENANCE Lessee shall, throughout the term of this Agreement, at Lessee's own cost and expense, and without any expense to Lessor, promptly keep and maintain the Premises, all improvements thereon, and the surrounding area in a sanitary and neat order, and in good repair, and shall be solely and exclusively responsible for keeping and maintaining all non-structural elements ofthe Premises, including plumbing, HVAC, doors and their respective operating mechanisms, but excluding the roofand load-bearing members ofthe building, in good repair, all ofwhich shall be maintained in a condition at least equal to the condition ofthe Premises upon the execution ofthis Lease Agreement, reasonable wear and tear excepted. 

### u,.1ier 116**ei,elllll~lmu;u.gIulll-t-he-hmtgtlP** &OufS 0/

### d,e 8fJeFflHng :HeelratfmJ'f8

## la, tll-rlrmTS COnstitute tI 

### struClurai component oj 

## me

HCDA-000084bujMing , auee 1'1,,,/1 hG EO/ely dnae:xcill.live/y respOIlSlbie jorm(fintaitllllg(fn doors, mcilliling- .the aircrgO hangar dOOK6, "'ftl the-if Iespeetiw BfJer-ati."fg Iffedtunisms in good Iepair." Lessor 

### undertakes no responsibility to keep safe or protect the personal property ofLessee or to protect Lessee from casualty to the Premises. All repairs, replacements and renewals shall be equal or better in quality and class to the original work. Should Lessee fail to make required repairs or maintenance, Lessor, in its discretion, may contract with an independent contractor it deems competentto fulfill Lessee's duties under this Article; however, Lessor shall have no duty to begin such repairs or maintenance until such time as Lessee makes arrangements satisfactory to Lessor for payment of said repairs or maintenance. Lessor shall be under no obligation to inspect or make any inspections in order to determine when repairs or maintenance are necessary. Lessee shall notify Lessor in writing when any repairs or maintenance to the structural components are required. Lessor undertakes no responsibility to keep safe or protect the personal property of Lessee or to protect Lessee from business interruption in the event of building leak or other casualty to the Premises. Lessee shall obtain Lessee's own personal property insurance, business interruption insurance, liability insurance for liability to persons coming onto the Premises and insurance for other consequential damages Lessee might suffer from its occupancy of the Premises. Lessor shall not obtain insurance to cover Lessee for any losses or claims. In the event ofmajor damages to the Premises, Lessor shall, at its sale discretion, have the option ofreplacing the Premises in their entirety, moving Lessee to a suitable location elsewhere on its property, or terminating this Agreement.

ARTICLE

## YII

-UTILITIES Lessor shall supply access to water, natural gas and electricity to the extent and capacity of the currently existing mains, lines, transformers, and panels. To the extent Lessee requires services in excess of those normally provided by Lessor as contemplated and included in the Utility Fee set forth in Article IV (B) above, Lessee shall be solely responsible for the payment of all such services, including any charges for additional utilities, telephone, trash removal, hazardous waste removal, and other services used by Lessee in or on the Premises, to include hook-up fees, advance deposits, or other such costs. Any accounts maintained for such additional services shall be maintained solely in the name of Lessee. Any such additional services to be provided on Airport property must be approved by the Director ofAirports, which approval may be withdrawn at any time for any reason. ARTICLE VIII

- 

### TAXES, HCDA·000085FEES.ASSESSMENTS All taxes or governmentally imposed fees or assessments in any way incurred upon the Premise, any improvements thereon or part thereof, or by virtue of Lessee's occupancy or use thereof, shall be borne solely by Lessee. Without any manner limiting this paragraph, Lessee shall absorb all sales taxes, if any, assessed or levied on account ofany monies payable by Lessee to Lessorhereunder.

ARTICLE IX

- LIENSAND MORTGAGES Lessee shall keep the Premises and all personal property ofLessor therein or thereon free and clear of liens of any kind, whether such liens are valid or invalid. Lessee shall defend, indemnify and save Lessor harmless against all costs, expenses, loss, loss of use, damages, and attorney's fees resulting from the filing ofliens against the Premises by any person. Ifany liens are filed as described herein, Lessee shall immediately begin remedial actions to remove said lien. If, after thirty (30) days, Lessee has not caused the lien's removal from the Premises, Lessor may take whatever action it deems necessary to defend its title to the Premises. This remedy shall be in addition to any otherremedies specified elsewhere herein. Lessee shall not cause a mortgage or other like security interest to be placed upon the Premises. ARTICLE X - ASSIGNMENT.ASSUMPTION ORSUBLETTING OFLEASE Lessee shall not assign, permit the assumption of or in any manner transfer any interest in this Agreement, or any part thereof, without the prior written consent ofthe Lessor. Lessee shall not sublease all or any part ofthe Premises. If Lessee assigns, permits the assumption of or in any manner attempts a transfer of its interest in this Agreement without the prior written consent of the Lessor, Lessor, at its sole discretion, may declare this entire Agreement null and void. IfLessor declares this Agreement null and void as a result ofthe acts described herein, Lessee shall immediately cease all activity in or
on the Premises and vacate the Premises within ten (10) days ofnotice ofLessor's intention.
Ifthis lease or any interest of Lessee therein be assigned after having obtained Lessor's

HCDA-000086

### prior written consent thereto, Lessee shall nevertheless remain fully liable for the full performance of all obligations under this lease to be performed by Lessee and Lessee shall not be released therefrom in any manner.
ARTICLE XI

- CHANGE IN OWNERSHIP CONTROLIMANAGEMENT OFLESSEE
see specifically acknowledges that Lessor leases the P among rs, of the Lessee's current rnanage01e , control and ownership. Lessee specifically acknowle s that Lessor reserves the right approve or disapprove, at Lessor's sole discretion, any significant C 1 

### e in management 'ucture or ownership. This includes, without limitation, contracting for O1anage01 scrvi s, sale of stock, and acquisition of a controlling interest in Lessee by any party other 

### th atties currently in control. Lessor also specifically reserves the right and Lessee spec' ally grants th
.. ht of Lessor to approve or disapprove, at Lessor's sole discretion, any ange ofthe form of Lessee xfstence as a business entity. Any change of Lessee in an anner described in this Article withou prior written approval of Lessor shall be an ent of default. The Lessor, at its sale discretion, rna I'sue any rights or 

### Ie to it under the terms ofthis Agreement. ARTICLE XII

- INDEMNITY A. Indemnification and Hold Harmless. Lessee shall protect, indemnify, defend (with counsel satisfactory to Lessor) and hold Lessor and Lessor's council members, directors, officers, committees, employees and agents completely harmless from and against any and all liabilities, losses, suits, claims,judgments, fines, or demands arising by reason ofinjury ordeath of any person or damage to any property, (including, but not limited to, attorney fees, court costs, and expert fees), ofany nature whatsoever, arising out ofor incidental to this Agreement, the use or occupancy of the Premises, or the actions and/or omissions of Lessee's directors, officers, committees, agents, employees, contractors, subcontractors or licensees; however, the above indemnity shall not apply to atly injury, death or damage caused by the sole negligence ofLessor. Lessee shall give reasonable notice ofany such claims or actions. The provisions of this section shall survive the expiration or early termination (including default) ofthis Agreement. B. EnvironmentalIndemnification. Lessee shall also indemnifY, defend (with counsel satisfactory; to Lessor), and hold Lessor, its council members, officers, employees, agents, assigns, and any successors to Lessor's interest in the leased Premises, harmless from and against any and all loss, cost, damage, expense, claim, cause ofaction,judgment, penalty, fine or HCDA·000087

# .... if' / lia
. itY'
..,directly or indirectly, relating to or arising from the use, storage, release, d7(ge, handlin or presence of Hazardous Materials on, under, or about the leased**pr~ses** or the Airport in violation of Lessee's obligations under this Agreement (,'Haza .dous Materials Release"). This' ldemniflcation shall include, without limitation, (a) persa injury claims, (b) (c) diminution in the value ofthe leased Premis orAirport, (d) damages for the loss or restrictio n use ofthe leased Premises or the**Aifi~** , (e) sums paid in settlement ofclaims, (I) actual attorney ees, consulting fees, court cost nd expert fees, (g) the cost ofany investigation of site conditions, (11) the cost of any pair, cleanup, remedial, removal, or restoration work or detoxification 

### by ny Governmental Authorities or deemed necessary in Lessor's reasonable judgme Lessor shall have the right but not the obI' a elects, any legal proceedings or act' 

### i:I any fines associated with Lessee's activities. to join and participate in, and control, if it so connection with the Hazardous Material Release. Lessor may also negotia ,defend, approve, an cal any action taken or issued by any applicable Governmental Au orities with regard to a Hazardo Materials Release. Any costs or expenses incurred by ssor for which Lessee is responsible der this Paragraph or this Agreement and has' demnified Lessor, (i) shall be paid to Lessor on d and, during the term of s additional rent; and (ii) from and after the expiration or arlier termination of the Agree ellt shall be reimbursed by Lessee on demand. Lessee's obligation ursuant to the fore mg indemnity shall survive the expiration or termination ofthis Agreement d shall bind _essee's successors and assignees and inure to the benefit ofLessor's successors and assigns. C. Regulatory Indemnification. Lessee shall also indemnity, defend (with counsel satisfactory to Lessor), and hold Lessor, its council members, officers, employees, agents, assigns, and any successors to Lessor's interest in the leased Premises, harmless from and against any and all loss, cost, damage, expense, claim, cause ofaction,judgment, penalty, fine or liability, directly or indirectly, relating to or arising from violation by Lessee, its agents, contractors, or anyone affiliated with Lessee ofany local, state orfederal laws, rules, regulations or ordinances that are or may become applicable to its activities under this Lease, including, but not limited to, any and all requirements ofthe Federal Aviation Administration ("FAA'). ARTICLE XIII - INSURANCE Lessee shall, at its sole cost, purchase and keep in force at all times during the term hereof, a policy or policies of insurance, issued by an insurance company of generally recognized responsibility and licensed to do business in the State of South Carolina, insuring Lessee against all liability for property damage, environmental liability, and personal injury (including death) arising or alleged to arise out ofany activity of failure to act ofLessee on, about, or with respect to, the Premises. Lessor shall be named in all insurance policies of the Lessee as an additional
HCDA-000088insured. Lessee shall provide Lessor with a certified copy of all policies of insurance required underthis Agreement. Said policy or policies shall also contain a contractual liability endorsement expressly naming Lessor as an additional insured on this policy. The combined single limit ofliability ofthe aforesaid policy or policies shall not be less than Two Million and Noll00 ($2,000,000.00) Dollars per occurrence. Lessor reserves the right to adjust these limits from time to time, at Lessor's sole discretion, to adequately protect its interests. Lessor further reserves the right to reject, at any time, any insurance Lessee selected by Lessee. Upon written notification, Lessee will immediately obtain a replacement policy or policies with an insurance Lessee satisfactoryto Lessor. Lessee, unless otherwise exempt, shall purchase at its own cost, worker's compensation insurance on all of its employees. Lessee's workers compensation insurance shall meet the requirements ofthe South Carolina Workers Compensation Commission and the South Carolina Department ofInsurance. Lessee shall purchase, at its own cost, casualty insurance covering all of Lessee's or Lessee's customers' personal property to be located on the Premises, regardless ofthe length of time said property is to be located on the Premises. Lessee shall also purchase, at its own cost and in its sale discretion" such business interruption or other insurance to protect Lessee's interests in the event ofmajor or minor damage or disaster to the leased Premises. Lessee shall purchase, at its own expense, an environmental andlor pollution legal liability insurance policy. The minimum acceptable coverage ofthis policy shall be One Million and Nol 100 ($1,000,000.00) Dollars per occurrence. Lessor shall be named as an additional insured on this policy. For all policies of insurance specified in this Article XIII, Lessee shall provide evidence thereof in the form of a certificate of insurance showing the name of the entity providing such coverage, the extents ofsuch coverage, the identification ofLessor as an additional named insured thereon, and an express assurance thatLessor shall be given at least thirty days written notice prior to any cancellation ofsuch policy or any material alteration ofterms ofcoverage.

ARTICLE XIV - ENTRY OF LESSOR/RIGHT OF INSPECTION Lessor may, but does not have the obligation to, at all reasonable times, enter the Premises to inspect or protect the Premises; effect compliance with any law, order or regulation of any

HCDA-000089lawful authority or with the provisions of this Agreement; exhibit the Premises to prospective tenants, purchasers or other persons; make repairs required of Lessor in Article VI; alter or otherwise prepare the Premises for re-occupancy atany time after Lessee has vacated the Premises.

ARTICLE XV

- DEFAULT A. Event ofDefault. Occurrence ofany ofthe following events ("Event(s)" or "Event ofDefault") shall be sufficient for Lessor to deem Lessee in default of its obligations under this Agreement: 1. Failure in the payment, without nolice or demand, ofany fees or other charges due to Lessor underthis Agreement and continuance ofsuch failure in payment for aperiod often (10) days thereafter. 2. Failure in the performance or breach ofany other covenant, obligation or duty imposed by this Agreement by Lessee (otherthanthe payment offees orother charges due Lessor) and the continuance ofsuch failure in the performance orbreach for
a period ofthirty (30) days after Lessor has given Lessee written notice ofsuch failure in the performance or breach.
3. Filingby Lessee ofa voluntary petition in bankruptcy orthe voluntary assignment ofall or substantially all ofLessee's assets for the benefit ofLessee's creditors orLessee is adjudicated bankrupt in an involuntary proceeding in bankruptcy. 4. Failure to utilize the Premises for its intended uses at a reasonable level, after receipt ofwritten notice, and continuance of such failure for a period ofthirty (30) days thereafter. B. Remedies Upon Default. Upon an event of default and after the passage of the notice period set forth herein (ifrequired), Lessor, at its sole option, may terminate thisAgreement. Upon such termination, Lessee will quit the Premises and surrender possession to Lessor, but Lessee will remain liable for any unpaid rent and other unpaid obligations and lost rentals under
HCDA-000090this Lease. C. Waiver. No waiver by Lessor ofdefault by Lessee in performance ofany term or terms of this agreement shall be construed to be a waiver of any subsequent default. The acceptance ofrent or the performance ofall or any part ofthis Lease Agreement by Lessor, for or during any period or periods after a default in performance by Lessee, shall not be deemed a waiver ofany right on the part ofLessor to declare a default or terminate this Lease Agreement for a subsequentbreach thereof.
D. Termination of Agreement. In the event Lessor shall terminate this agreement or Lessee's right to possession or occupancy ofthe leased premises as provided herein, Lessee shall promptly vacate the premises, surrender and deliver possession thereofto Lessor, and at its sole expense remove from the leased premises within ninety (90) days all signs, trade fixtures, furnishings, personal property, equipment, and materials which Lessee was permitted to install and maintain under the rights granted herein. Any ofLessee's property not removed within ninety (90) days shall become Lessor property.

ARTICLE XVI - NOTICE Any request, demand, authorization, direction, notice, consent or waiverprovided, required or permitted to be made upon, given by or furnished to Lessor or Lessee shall be sufficient for every purpose hereunder if in writing and mailed by United States Mail,( certified 

## <l( registered mailll,Poitage

## !3r~pai*"and addressed as follows:

## JlrtJ~ TO LESSORAT: Horry Department ofAirports Attn: Director ofAirports 1100 JetportRoad Myrtle Beach, SC 29577 With a copyto: Horry County Attorney's Office 130I SecondAvenue Conway, SC 29526 TO LESSEEAT: BarnstormersAerial Advertising, LLC C/O Mr. David Robertson
HCDA·000091P.O. Box 1728 North Myrtle Beach, SC 29598-1728 

### Either parD' from time to time may change its address by 

### w";tten notice to the other parD" Notices hereunder shall he deemed effective when delivered by 

### hllnd delhery or overnight courier with return receipt, or upon receipt ffl"tluee days sHu del'",it ill the 

# Otfll.- ...united 

### States mei' eeltifiul 

### or I'eg-isteroo mail. 

### return receipt requested, whichever 

### occurs 

### 'Sooner. ARTICLEXVII

- SURRENDER OFPOSSESSION Lessee shall yield and deliver possession of the Premises to Lessor at the expiration or earlier termination ofthis Agreement, including the expiratIon or tennination of any renewal or extension ofthis Agreement, "broom clean" and in good condition, except for reasonable, ordinary wear and tear, except for the effects offire orother casualty not the fault ofLessee. ARTICLEXYIII

- LESSOR'SRIGHTTORECAPTURE PREMISES
Lessor shall have the right to recover the use of the Premises, or any portion thereof, during the term ofthis Agreement or any renewal with thirty (30) day written notice by Lessor to Lessee. Upon exercise of these recapture rights, Lessor shall relocate Lessee to a comparable facility or facilities,**ifllfl~** stleh life &>oailab1e, at the Grand StrandAirport.

### 'Q\'tARTICLE XIX

- DAMAGETOPREMISES Ifall or any portion ofthe Premises required to be maintained by Lessee shall be partially damaged by fire or other casualty through no fault ofLessee, but not rendered unusable in Lessor's sole opinion, the Lessee shall repair the damage with due diligence at Lessee's expense and there will be no abatement of rent. However, if Lessee elects not to effect repairs, Lessee shall immediately vacate the Premises and this Lease Agreement will be declared terminated. Ifall or any portion ofthe Premises required to be maintained by Lessor shall be damaged by fire orother casualty, butthe damage can be repaired in less than sixty (60) days from the date ofthe beginning ofthe repairs in Lessor's sole opinion. Lessor mav. in its discretion. proceed with HCDA-000092the repairs with due diligence, at Lessor's expense, and the rental will be equitably adjusted or abated until the damage has been repaired, ifthe damage resulted from no fault ofLessee. In the event the Premises or a substantial part thereof, through no fault of Lessee, IS completely destroyed by fire or other casualty or so damaged that repairs could not be completed, in Lessor's sole opinion, within sixty (60) days from the date ofthe beginning ofthe repairs, then, at the option of Lessor, either: (1) said Premises shall be repaired or reconstructed with due diligence by Lessor at Lessor's expense and the rental shall be equitably adjusted or abated during the reconstruction; or (2) Lessor shall give the Lessee notice terminating this Agreement without further obligation to Lessee. Lessor shall make the election under this Article within ninety (90) days ofthe fire or other casualty causing the damage or destruction. Lessee shall be responsible for damages and cost of repairs or reconstruction that result from fire or casualty resulting from Lessee's, or Lessee's employees', suppliers', or invitees' negligent or willful conduct. Lessor and Lessee agree to each obtain their own casualty insurance as to their own property. In the event of casualty, all of Lessor's casualty insurance proceeds shall be paid to Lessor.] ARTICLE XX - FORCE MAJEURE Neither Lessor nor Lessee shall be deemed in violation of this Agreement if either is prevented from performing any of its obligations hereunder by reasons of strikes, boycotts, labor disputes, embargos, shortages ofmaterials, acts ofGod, acts ofthe Public Enemy, acts ofsuperior governmental authority, floods, riots, rebellions, acts of sabotage, or other circumstances over which the parties have no control; however, this Article shall in no case be construed to excuse Lessee from paying Lessor any monies due hereunder. In any case where either party believes this Article applies, such party shall promptly give the other party written notice of Force Majeure preventing performance.

HCDA·000093Lessee, at Lessee's sale cost and expense, shall observe and obey and shall require its employees, suppliers and business invitees to observe and obey all present and future federal, state, county, local or Department of Airports laws, statutes, ordinance, codes, rules or regulations relating to the use or occupancy of the Premises, relating to tbe use or occupancy of vehicle parking areas, aircraft operations areas and any other areas to which Lessee has access pursuant to this Agreement or any activities ofLessee, its employees, suppliers, and invitees undertaken on or
near any ofthe areas. As used herein, laws, statutes, ordinances, codes, rules or regulations include, without limitation, all ofthe same dealing with any substance that is listed, defined, or regulated as
a hazardous substance, hazardous water, or otherwise classified as hazardous ortoxic by any ofthe foregoing governmental entities or any agency or department thereof, and includes all ofthe same dealing with asbestos, radon, any polychlorinated biphenyl, urea, formaldehyde foam insulation, explosive or radioactive material, motor fuel or other petroleum hydrocarbons, or which causes or poses a threat to tbe environment or to the health or safety ofpersons on or near the Premises. As to disposal of such substances, Lessee will maintain a contract with a licensed and recognized waste disposal company that meets the criteria for such companies as tbey may be changed from time to time by the Department ofAirports. When requested, Lessee will provide Lessor with a written copy of the contract and a current letter from the contractor acknow1 edging that the contract is in effect. Lessee agrees to indemnify and hold Lessor harmless from any and all penalties, losses, liabilities and costs, including attorney's fees, remediation costs, and laboratory and investigative costs arising from Lessee's failure to comply witbthis Section. ARTICLE XXII - ENVIRONMENTAL COMPLIANCE
Lessee agrees tbat it will comply with all federal, state, county, and local laws, rules, regulations and standards that are or may become applicable to its activities under this Lease, and it is responsible for obtaining any environmental permits required for its operations under the
HCDA·000094Lease. ARTICLE XXIII

- GOYERNING LAWS AND VENUE
This Agreement shall be governed by and construed in accordance with the laws of the State of South Carolina. Any cause ofaction between the parties arising out ofor involving this Agreement shall be brought in the Court ofCommon Pleas, or ifapplicable, Magistrate's Court (or any other Court of like or similar name with identical jurisdiction), Fifteenth Judicial Circuit, Horry County, South Carolina. ARTICLEXXIV

- PRIORAGREEMENTS SUPERSEDED Any prior agreements between the parties with respect to the Premises, whether written or oral, are superseded by this Agreement and made a nullity. This Agreement constitutes the entire agreement ofthe parties with respect to its subject matter and it may not be modified, amended or extended exceptby a subsequent instrument executed with the same formalities as this Agreement. ARTICLE XXV

- INVALIDITY In the event that any provisions, portions, or applications of any provisions of this Agreement are held unenforceable or invalid by any Court ofcompetentjurisdiction,the validity and enforceability of the remaining provisions, or portions or applications thereof, shall not be affected, and Lessee and Lessor shall promptly negotiate revisions to the affected provisions, or portions or applications thereof, with a view to effecting, as close as possible, the original intentions ofthe parties.ARTICLEXXVI

- NON-DISCRIMINATIONITITLE VI
Lessee for itself, its successors and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running with the Premises that: (I) No person on the grounds ofrace, color, or national origin shall be excluded from
HCDA-000095participation in, denied the benefit of, or otherwise be subjected to discrimination in the use ofthe 

### Premises; (2) In the construction ofany improvements hereon, over or under such land and the furnishing ofservices thereon, no person on the grounds ofrace, color, or otherwise be subjected to discrimination; (3) Lessee shall use the Premises in compliance with all other requirements imposed by
or pursuant to Title 49, Code of Federal Regulations, Department ofTransportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Programs of the Department ofTransportation

- Effectuation ofTitle VI ofthe Civil Rights Act of 1964, and as said regulations may be amended. (4) Lessee further agrees that in the event of breach of any of the above nondiscrimination covenants, Lessor shall have the right to terminate this Agreement and re-enter and repossess said Premises and hold the same as if said Agreement had never been made or issued. This provision shall not be effective until the proceedings outlined in Article 49, Code ofFederal Regulations, Part 21, are followed and completed including exercise orexpiration ofappeal rights. (5) It is agreed and acknowledged that, pursuant to 49 CFR Pari 21 Appendix C(b)(2) (ii) and 28 CFR 42.405(c) lessee shall display in its public areas signage provided by Airport as required by the FAA stating that discrimination based upon race, color or national origin is prohibited.

ARTICLEXXVII

- CAPTIONSAND HEADINGS
The titles ofthe Articles in this Agreement are included only as a matter ofconvenience and for reference and in no manner define, limit, broaden, or describe the scope or intent ofany of the provisions ofthis Agreement. HCDA-000096ARTICLE

## xxm-WAIVER Continued performance by either party pursuant to the terms of this Agreement after a default in any ofthe terms, covenants, provisions andlor conditions by the other party, shall not be deemed a waiver ofany right to terminate this Agreement or pursue any other remedy available at law or in equity for the default, and no waiver of any default shall be construed as, or act as, a waiver ofany subsequent default, ofthe same, similar or different term, covenant, provision and!

or condition. ARTICLE XXIX - REMEDIES CUMULATIVE
All Lessor's remedies arising out of this Agreement or provided by statute shall be cumulative and no single remedy shall be exclusive of another. The election of one remedy by Lessor shall not operateto foreclose any other remedy. ARTICLE XXX - SECURITYDEPOSIT
Lessee shall place on deposit with Lessor a security fee equal to two month's base rental for the facilities. Lessee covenants and agrees that Lessor may use this security fee against any and all unpaid indebtedness legally owed by Lessee to the Lessor. If Lessor is required to utilize any portion ofthis security fee during the term ofthis Agreement, or any subsequent renewal term, the Lessee shall replenish the security fee up to the equivalent oftwo month's base rental. ARTICLE XXXI - EFFECTIVE DATE
This Agreement shall become effective on the date specified herein below. Lessor and Lessee specifically covenant and agree that this Lease shall not become valid until and is entirely contingentupon the approval of, by three readings ofan ordinance, ofthe Horry County Council.

HCDA-000097IN WITNESS WHEREOF, the parties hereto have executed these presents as ofthe day and yearascribed herein.
WITNESSES: 

### FORLESSOR: HORRYCOUNTY
By:
__________ _ Wjtness#l Its: Administrator

Witness #2lNotary Public

WITNESSES: Page 21 FORLESSEE:

HCDA·000098Witness #1

Witness#2lNotary Public

WITNESSES:

Witness #1

Witness #2lNotary Public

STATE OF SOUTH CAROLINA )

COUNTYOF HORRY ) ) Page 22 BARNSTORMERSAERIAL ADVERTISING, LLC

# BY:~~'----.---'-W- __ Its: 

# 1Jt.u/,.;;--.

GUARANTOR:



### PrintName:
___________ _

PROBATEAS TO LESSOR

HCDA-000099

# •

STATE OF SOUTH CAROLINA 

# •

PERMIT FORBANNER TOW OPERATIONS AT GRAND STRAND AIRPORT COUNTY OF HORRY ) ) ) 

### 2008
THIS OPERATING PERMIT, made and entered into this 15th day ofMarch, 2008, by and between Horry County, a body politic ("County"), owner and operator ofthe Grand Strand Airport ("Airport"), North Myrtle Beach, South Carolina, and Barnstormer Flite Signs, Inc., a corporation organized and existing underthe laws ofSouth Carolina ("Company"). County agrees to permit Company to conductbannertow activities from the Grand Strand Airport on the terms and conditions set forth below. For the purpose ofthis Permit, a "Season" is defined as the seven-month period between March 15, and October 15. WITNESSETH: WHEREAS, County is the operator ofthe Airport, located in North Myrtle Beach, South Carolina; and WHEREAS, Company is engaged in the business ofproviding commercial banner tow flights; and WHEREAS, Company wishes to use the aeronautical facilities ofthe airport in connection with its banner tow activities; NOW, THEREFORE, in consideration ofthe promises hereinafter contained, County and Company agree as follows: 1. Terms ofPermit. The term ofthis Permit is from March 15,2008, through October 15, 2008. 2. PermitArea. Company will be permitted to conduct banner tow activities at area number two (2) only, as shown on attachment 1. 3. PermitFee. For the term ofthis Permit, March 15, through October 15, 2008, Company will pay County a non-refundable season fee of$2,000, which will allow for operating two aircraft under this Permit. An advance deposit and minimum fee of$2,000.00 shall be paid prior to approval of operations under this permit. For each additional aircraft (above two) an additional $285.00 per month, will be charged. Any aircraft (above two) used by the Company to accomplish bannertow operations under this permit at any time during a calendar month shall be considered as operating for the entire month period. The compensation to the County shall be made based on the total number ofadditional aircraft operated during each month, regardless ofdown time for maintenance or any other reason.

HCDA·000100

# • •

4. PaymentofFee and Late Charges. Paymentoffees for additional aircraft is due the County on the 15th day ofthe month for the preceding 30 day period ofoperation and shall be based on the total number ofaircraft operating (above two) during that period. Failure to pay by the 15th day ofthe month shall constitute default. Late payment charges ofone and one-halfpercent will be assessed on overdue accounts after the 25 th day ofeach month. Paymentoflate charges shall not excuse default. 5. Advance DepositlMinimum Payment and Required Aircraft Information. A nonrefundable, advance deposit and minimum payment for the Permit Fee consisting ofthe rate set forth above for shall be paid by the Company to the Countyon or before March IS, 2008. Priorto March 15, 2008, Company will provide the County with the number ofaircraft, by tail number, that will be conducting activities atthe designated area. Based on airtraffic considerations, the County may limitthe number ofaircraft a company may simultaneously operate. 6. PriorRegistration ofAircraft. All aircraft operating under this Permit shall be registered with the County prior to operation ofthe aircraft for bannertow activities atthe Airport. Company shall use the attached form for registration (see Attachment 2). 7. Laws, Rules, Regulations and Procedures. Company shall comply with the following: A. Company shall observe and comply with all Federal, State and local laws, rules, regulations, County and City ordinances, and directives ofthe Harry County Department of Airports, which now existor which may be hereinafterbe enacted or adopted. Company will provide at its cost, all licenses, permits and authorizations, as may be necessary and proper. Company will be required to attend an annual FAA sponsored South CarolinaBannerTow Special Provisions meeting with FAA Flight Standards, local Air Traffic Control, Airport Management personnel and the otherBanner Tow Operators, prior to conducting operations, to establish operating procedures and other matters related to this Permit. B. Company will yield traffic priority ofits banner pick-ups and drops to allow transient and other aircraft to land and takeoff. The priority oftraffic will be at the bestjudgment and discretion ofthe airtraffic control tower. C. The County will provide launch and recovery areas west ofthe runway for the Company's operations (see Attachment I). Company shall provide adequately trained ground crews to handle the bannertowing launch and recovery, and to recover banners that are dropped on the active runway oroffthe airport property. Ground crews shall have two-way radio contact with the air traffic control tower for access to the airport launch area and during bannertow activities. D. All banners must be adequately secured in the launch areato precludetheir being blown about by high winds. No overnight storage ofbanners will be permitted in the launch and drop areas. E. IfCompany plans to do any self-fueling ofits aircraft, it must comply with the Horry County Department ofAirports' self-fueling policy letter and obtain a self-fuelingpennit No fueling operations will be conducted in the launch and recovery areas. 8. Hold Harmless and Indemnification. Company shall protect, defend (with counsel satisfactory to County), indemnifY, and hold County, its Council members, advisory board members, officers, agents, employees and assignees harmless from and against any and all claims, debts, liabilities, losses,judgments, penalties, fines, costs, damages, expenses (including reasonable attorney fees, court costs and expertfees), or demands arising by reason ofinjury or death ofany person or damage to any property, or any cause ofaction ofany nature whatsoever, in law orequity, arising outofor incidental to this Permit or the use ofthe Airport, orthe acts or omissions ofCompany or Company's directors, officers, agents, employees, contractors, subcontractors Or licensees; however, said indemnity shall not apply to any injury, death, or damage caused by the sole negligence or willful misconduct ofCounty. The provisions of this section shall survive the expiration orearly termination ofthis Permit. 

### 2 HCDA-000101

# • •

9. Environmental Indemnification. Company shall indemnify, defend (with counsel satisfactoryto County), and hold County. its council members, officers, employees, agents, assigns, and any successors to County's interest in the premises, harmless from and against any and all loss, cost, damage, expense (including reasonable attorney fees), claim, cause ofaction,judgment, penalty, fine or liability, directly or indirectly, relating to or arising from the use, storage, release, discharge, handling, or presence ofHazardous Materials on, under, or aboutthe premises orthe Airport in violation of Company=s obligations under this Permit ("Hazardous Materials Release"). This indemnification shall include without limitation (a) personal injury claims, (b) the payment ofliens, (c) diminution in the value ofthe Airport, (d) damages for the loss or restriction on use ofthe Airport, (e) sums paid in settlement of claims, (f) actual attorneys' fees, consultingfees, and expert fees, (g) the cost ofany investigation ofsite conditions, and (h) the cost ofany repair, cleanup, remedial, removal, or restoration work or detoxification ifrequired by any Governmental Authorities or deemed necessary in County's reasonablejudgment. County shall havethe right but notthe obligation tojoin and participate in, and control, ifit so elects, any legal proceedings or action initiated in connection with the Hazardous Materials Release. County may also negotiate, defend, approve, and appeal any action taken or issued by any applicable Governmental Authorities with regard to a Hazardous Materials Release. Any costs or expenses incurred by County for which Company is responsible underthis Paragraph or forwhich Company has indemnified County, (i) shall be paid to County on demand, duringthe term ofthis Permit as an additional fee; and, (ii) from and after the expiration orearliertermination ofthe Permit shall be reimbursed by Company on demand. Company's obligations pursuant to the foregoing indemnity shall survive the expiration or termination of this Permit and shall bind Company's successors and assignees and inure to the benefitofCounty's successors and assignees. 10. Insurance. Company agrees to carry and keep in force a policy or policies ofpublic liability insurance throughoutthe term ofthis Permit, with an insurance company or companies of recognized responsibility and acceptable to the County, covering the bodily injury and property damage liability that Company has agreed by this Permitto hold the County, its Council members, directors, agents, officers, and employees harmless against and to indemnify. Company agrees to carry and keep in force such insurance with limits ofliability for death, personal injury and property damage in an aggregate sum equal to not less than one million ($1,000,000.00) Dollars. Said policy or policies shall name the County as an additional insured tothe extent ofthe indemnification obligation hereunder. Certificate or certificates evidencing such insurance coverage shall be filed with the County priorto the date Company commences use ofthe Airport and said certificate or certificates shall provide that such insurance coverage will notbe canceled, reduced or materially changed without at least thirty (30) days prior written notice to the County. At least thirty (30) days prior to the expiration ofany such policy, a certificate showing that such insurance coverage has been renewed or extended shall be filed with the County. Ifsuch coverage is canceled, reduced or materially changed, Company shall, within ten (10) days after receipt ofwritten notice, file with the County a certificate orcertificates showing that the required insurance has been reinstated or provided through another insurance company or companies. II. Non Discrimination. A. Company warrants that it wiii undertake an affirmative action pian in conformance with 14 CFR Part 152, Subpart E, to insure that no person shall, on the grounds ofrace, creed, color, national origin or sex, be excluded from participating in any employment contracting or leasing activities covered in 14 CFR Part 152, Subpart E. Company assures thatno person will be excluded on such grounds from participating in or receiving the services or benefits ofany program or activity covered by Subpart E. Contractor further agrees that it will require that its covered sub-organizations provide assurances to Company that they similarly will undertake affirmative action plan and that they will require like assurances from their sub-organizations, as 

### 3

HCDA-000102

# • •
required by 14 CFR Part 152, Subpart E. B. Companywarrants that no person shall, on the grounds ofrace, creed, color, national origin, sex, age ordisability, be excluded from participating in any activity conducted under this Permit, or excluded from the benefits offered by Company to the general public, or otherwise be subject to discrimination. C. Company covenants it shall operate in compliance with all other requirements imposed by or pursuantto Title 49, Code ofFederal Regulations, Department ofTransportation, Subtitle A, Office ofthe Secretary, Part 21, Non-Discrimination in Federally

- Assisted Programs ofthe Department ofTransportation

- Effectuation ofTitle VI ofthe Civil Rights Act of 1964; and as said regulations may be amended. 12. Termination. A. This Permit may be terminated by either party for any reason upon thirty (30) days prior written notice to the other party. B. This Permit may be immediately terminated for any ofthe following reasons: 1) The loss ofiicense, permit or authorization by Company that prohibits the performance ofthe Permit that cannot be corrected within ten (10) days. 2) Failure ofCompany to attend the annual FAAjointprocedures meeting. 3) Failure ofCompany to maintain insurance on each operational aircraft. 4) Failure ofthe Federal Aviation Administration to maintain air traffic control services atthe Airport. 13. Assignment. Company shall not assign this Permit or any right or privilege connected herewith. 14. Notice. Whenever any notice is required by this Permitto be made, given or transmitted to the parties hereto such notice shall be deemed to have been given ifenclosed in an envelope with sufficient postage attached, and sent by certified mail and deposited in the United States Mail addressed to: A. As to Horry County: Horry County Department ofAirports 1100 Jetport Road Myrtle Beach, SC 29577 (843) 448-1580 Attention: Deputy Director, General Aviation B. As to Company: Barnstormer Flite Signs, Inc. Attn: David Robertson Post Office Box 1728 North Myrtle Beach, South Carolina 29598 843-272-5403


### 4

HCDA-000103

# • •

15. No Possessory Interest In Premises. Company is not granted any possessory interest or license in any premises at Grand Strand Airport under this Permit.
IN WI1NESS THEREOF, the parties have caused this Permit to be executed by their duly authorized officers the day and year first above-written.

ATTEST: 

# LN-ulJCJ By: Its: ATTEST: Barnstormer Flite Signs, Inc. By: ./ Its: HaRRY COUNTY ATTORNEY:

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HCDA-000104

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# EXISTING fACILITIES Gland SlJand Airport HOitRY COL':-:'(Y AIRPORT 'i

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### 2008 SO FSDO 13 }. i 

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### I Submit this application in triplicate (3) to any FAA Flight fighting equipment. The applicant may also wish to submit Standards district office. photographs and scale diagrams as supplemental material to assist in the FAA's evaluation of a particular site. Application Applicants requesting a Certificate of \Naiver or Authoriza- for a Certificate of Waiver or AuthoriZation must be submittion for an aviation event must complete all the applicable ted 45 days prior to the requested date ofthe event items on this form and attach a properly marked 7_5 series Topographic Quadrangle Map(s), published by the U.S. Applicants requesting a Certificate of Waiver or Authorlz3+ Geological Survey (scale 1:24,000), of the proposed operat+ tion for activities other than an aviation event will complete ing area. The map(s) must include scale depictions of the items 1 through 8 only and the certification, item 15. on the flight!lnes, showllnes, race courses, and the location of the reverse. air**eve~t** control point Police dispatch, ambuiance, and fire 1 Name of organization i 2.Nameof: 

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- .2, ,9SSAIRCRAFT CERTIfICATE OF INSURANCE Descriptive Schedule: Namecllnsured: Address:
Company: Policy Number: Effective Date: Expiration Date: AircraftCovered: 

### I Barnstormer Flite Signs, Inc. c/o David Robertson PO Sox 1728 North Myn:le Beach, SC 29598 U. S. Specialty Insurance Company SAOOlS2122-02 02/15/2008 02/15/2009 N21S0A, N3036M, N4421M, N3424M, N2397M
AIRCRAFT LlABIUTY COVERAGES LIMITS OF LlABILITY 

### A - Bodily 

### Injwy liilbillty $ Each Occurrence Excluding Passengers B
- Passenger 

### BOOlly Injury !$ Each Passenger i$ Each Occurrence C
- PropertyDamage liability 

## 1$ Each Occurrence ,0 Single limit Bodily Injury 

### I Property $ Each Occurrence Damage Liabilitv Excluding PiiSSenqers OL
- SingIslimit Bodily Injury 

### I $ 100,000 each Passenger Property Damage Limited P!!ssengers $ 1,000,000 Each Occurrence 

### Date: Apnl 2, 2008

I 

# I i i AIRCRAFT PHYSICAL DAMAGE 

### .1 F All 

### Risks While NoUn M9"'t"'io"'n
____**4~7** $

______ 

### L"'e:"s::::s_..c$:--

___**-=O:::ed~u~ct~ib!!'le"_....jl** G - All Risks While In Motion I $ Less $ Deductible 1 Payment for aircraft 

### physical damage under 

### Co,erage For Gwill be made to 

### the Named 

### Insured and: (Absence of an entry means "no exception') This Certificate is issued to: WHOM IT MAY CONCERN
See Policy Condition for Details With whom we agree, if possible, to notify 10 days before date of cancellation if policy should be cancelled, but the Company shall not be liable in any way for failure to give such notice. The above coverages are SUbject to all policy terms, conditions and exclusions.
Date of

### issue: April 2., 2008 By:

# /h~;b f.

# ~~ AuthorTzed Repres€/1tVe

HCDA·000107 I

# • •

GRA;-;D STRAND ATe TOWER AND U:--DERSIGNED BANNER TOW OPERATORS
LETTER OF AGREEMENT EFFECT!VE: Febmary 18,1007
SUBJECT: BANNERTOW OPERATIO)(S
PURPOSE: This Letter of**Agr~ern~nr** (LO/\) between Grand Strand A.Te Tmver and rht undersig:1Cd banner tow operators defines responsibilities and operational procedures applicable to banner [ow activities. Within lhe Grand Slrand. Class D airspace. CANCELLATJO;'t: This lener CiH1CeLS previous Jetter dakd February 13" "2001. DEFINITIONS: The**folJo~ving** ttrms are used in this LOA:

J. Beach Corridor: The corridor along lht:' coastJine extending 1 nauTical mile offshore at O( below 500 MSL beginning 5 nautical miles northeast and extending to 5 nautical miles southwest of Grand Strand AirpolT Attachmenr ] b. 'Vater Tower Transition Conidar: A corridor j nautical milt \\ ide from the ComvCl) [;irport east to a point whc-re it imacepts the shoreline, Apache PitT AlTitude 1000' or below. Anachmen, o

c. Airport Swash: A (;orridor 1nautical mile wide beginning at the waterway offthe soulh\-vest end ofrumvay 23 and ends at the shoreline. This airspace is used for Lnmsition to/ti'om the Grand Strand Airport and toitrem) the be:dch corrIdors. Anachment 3 d. Swash: An acronym used to dt;scribe a "salt-water marsh". These unpopulated areas are 'iu be' used \-\'henever possible for banner tow transitions to/from the Grund Stralld Airport.

c. VFf{ Holding Points J VFR Reporting Poims for [otr" into Class 0 Airspace and/or Landing at Crand Strand Airport: (J J Nonheas.t

- Cherry Grove Pia (2) Southwest

- Apache Pier Holding: (l; NOrTheast

- Cherr) (irene Pier (rums shall be made ,t3st l}fd")t lkaet Corridor) (:2) Sourh,\cs!**~** Apache Pier (turns shall b,.: 111<1.0::: cast oftht' Beach Corridor) (3) Airport Swash (turns as inSlnlcteu b, wWerj Monitor:**B~1nl]er Cl:rG~l(i**  operating in the Gt:ach Corridor she]] monitor 124.6 (Grand**.:'>:~** :inu T0\\'ef Frequency) v\'hik- [hey afe transiting Grand Strand Clas.::: D airspace.

HCDA-000108

# • •**~.** RESPONSlBILITIES:

:'1.. The undersigned banner tow opcnltol"S nrc responsible- for cn:5uring bauner tow pilots udllerc: to the follO\ving: (1) Estabiisb t\\'o-W<-ly' C()mmUniUllions \yith Granu Strand Tower priorlo cl1rc.:-ing Class D ai.rspa<.:t'. (2j Repon 0\"1:;':(**~slablished** VfR re-po!1ing points prior to trlkring the Class 0 airspace. (3) Advise Grand Strand Tov,;er ofIhe aircraft idemitlcarioIl, and intentions on initial COntact. (4) Remain \\'ith in the- confines ofthe COITidors. (5) Use goodjudgment and plain langLlagl:' phraseoJog) to clarify**non-stand~;rd** requests Of misundersTOod ATC cieo.rances. (6) Assure pilots are tamiliar \\ith and abide b) these procedltres. (7) Provide Gram! Strand Tuwer, as appropriate, v.it11 a copy ofthe most cunen! \yaiver issued by fSDO and banner aircraft call sign::;.
Curridor. (8) Hold at VfR reponing PU!IlIS lmril receiving instructions to enter the Beach
(9) In.the t\"cnl ofradjo iailure, the lOST communications aircraft**~hall** exit ,he Grand Strand Tower Class D airspnce to the northt:<.l:'[ (Cherry Gm\-[: pier) or sourh\.vest (Apache Pier). Conway aircraft

- return to ('unway and advise eRE. by phone, clear ofthe Beach Corridor eRE aircraft

- depart eRE Class D nonheast and proceed (060J (Ocean isle) and coordinate if.'· phone lflhc lost communications [lirer-an pilot has a CELL PHO!'-<E he:she rna'.' cont:1CI CRE at (843) 272 3395·'68.2] re i;\loruinatt landing instructions or adviSe**to\'/~r** of Beach Corridor departure. ;-'.JOTf: Entrance into th.: tkach C)f(idor shall onl) be approved via ireqllcnc} 12..J.6 by eRE h)·'"\el".

b. Grand Strand Tovvt:r shalj be rr:sponsible tor: (l) Issuing dc:ara.Dcr.:::; (0 enter ;Jnd'"or to transilion the**CL:J~s** D**~':irsPact:** via tht dd"ined corridors.(2) lSS\Je holding instruclio!ls for arriving and.'or**jtpartj~lg.** barnier aircrait as traffic

HCDA-000109

# • •

(3) Encourage VFR ilircraft in comHll,nicuion**\~** ith the Cnmd Strand To\-ver 10 '-I\'oio lhe Gear..:l1 Corridors and the holdin,:; points either \"trti(;;;J.li; o:'latC':rali).

RADIO TELEPHO!\£ CALL S!GJ\S: Ule lll1dersigned banner to\\-' operators shall Llse the designated radio telephony cali signs B.IC'C'ER TOW COMPANY Barnstormers Flight signs. Inc.

# ~~~:c Air Traffic )vIanager, Robert C. Bradsha\'I 1

---.---- ...**--c~-.** Sk;.; Signs, Inc., G. G. (Lep) Boyd R.\010 

### n:: EPHONY CALL SIOC'.



# / Stormer(numberj Sky(number)

HCDA-000110

# • •
HORRY COUNTY DEPARTMENT OF AIRPORTS 

### AIRCRAFT REGISTRATION FORM

- 2008 The infonnationrequested below must be provided for each aircraft operated under the tenns and conditions ofthe Horry County Department ofAirports Operating Pennit: Aircraft Infonnation: Type(s): 

### 9' I 3;',\ '" 

# fA l 

### <- Tail No:. 34)''-t tv... 

### Owner: Rx..VI'\**~:h:>rvxy,,!,** £.t..,...,\,**::'(,~-d** 

### Operator (ifdifferent from owner):**---~-"",::,---,=--,c---:--** 

### Insurance Certificate No:5ROC ISiJ.r:<a 

### Date: 3-ci'J-olSExpiration Date: J-o"l-o'1 "0;>.. 

### Date aircraft placed in service: -,-______ _ Date aircraft removed from service:

------ 

### Ifadditional aircraft are added to the company's operation during the season, or ifan aircraft is removed from service (in 

### excess of30 days) during the season, this fonn must be completed and providedto Horry County Department ofAirports.

ATTACHMENT 2

HCDA-000111

# • •

HORRY CUUNTY DEPARTMENT OF AIRPORTS AIRCRAFT REGISTRATION FORM

- 2008 The informationrequested below must be provided for each aircraft operatedunderthe terms and**condit~ons** 

### ofthe Horry CountyDepartment ofAirports Operating Pennit: Aircraft Information: Type(3):**~"..** 

### - I

### <- Tail No: 41.\

### d-.\ M 

### Owner: \bo,vn:>1"t>vI.**~ ~**  

# S,""'=' Operator (ifdifferent from owner): Insurance CertificateNo:.5fl"O

### IrOlla" Date:**J.o2~Expiration** 

### Date: 

### 3--<»- 

## 0'1 ""0**~** 

### Date aircraft placed in service: -:--______ _ Date aircraft removed from service:
______ _ Ifadditional aircraft are added to the company's operation during the season, or ifan aircraft is removed from service (in excess of30 

### days) during the season, this form must be completed and providedto Horry County Department ofAirports.

ATTACHMENT 2

HCDA-000112

# • • Horry County Department ofAirports Aircraft Registration Form-2oo8
The information requested below mustbe provided for each operated under the terms and conditions ofthe Horry County Department ofAirports Operating Permit: Aircraft Information: Type(s): P
... , L 

### Tail No: 

### :3()

# :J' '" Owner: 

## Ik"'''$**fov~** A,...J...

### St~ .p....3 

### Insurance Certificate No:

## 5JtOOISl-Il,."~ Date: 

# ')(1 

# to" Expiration Date: 

# ocr Operator(ifdifferent from owner):

-**~** 6
..... 

### Date aircraft placed in service:
_________ _ Date aircraft removed from service:
_______ _ Ifadditional aircraft are added to the company's operation during the season, orifan aircraftis removed from service ( in excess of30 days) during the season, this form must be completed and provided to Horry County Departments ofAirports.

ATTACHEMENT 2

HCDA·000113STATE OF SOUTH CAROLINA) COUNTYOFHORRy) 

# ct.£

OPERATINGPERMITTO PROVIDEBANNER TOWING OPERATIONSTO THEGENERAL PUBLICATTHE GRAND STRAND AIRPORT

THIS OPERATING PERMIT, made and entered into this

## ~ day of

## ~~2013 by and between Horry County, a bodypolitic ("County"), owner and operator ofthe Grand Strand Airport ("Airport") inNorthMyrtle Beach, South Carolinaand BarnstormersAerial Advertising, Inc. a corporation organized and existingunderthe laws ofSouth Carolina ("Company"), shall governthe relationship ofthe parties, wherein County agrees to permit Company to perform "Banner Towing Operations" atthe Grand StrandAirport as to the terms and conditions setforth below: WITNESSETH: WHEREAS,County is the owner and operator ofthe Airport, located inNorth Myrtle Beach, South Carolina; and WHEREAS, Company is engaged to perform "Banner Towing Operations" at the Grand Strand Airportbased onthe terms and conditions setforth below; and WHEREAS, Compaoy wishes to use the aeronautical facilities of the Grand Straod Airport in connectionwithits "BannerTowing Operations" atthe Grand Strand Airport; aod WHEREAS,the terms and conditions for boththe "Space Use Permit" for the spaceinHangars#8 & #9 plus six (6) aircraft parking spots directly in front ofsubject hangars at the Grand Strand Airport andthe "Operating Permit" must be adhered to without default to either agreement. Oefault ofany terms or conditions by either agreement, constitutes default on both the "Space Use Permit" or lease andthe "OperatingPermit". NOW,THEREFORE, inconsideration ofthe promiseshereinaftercontained, County and Company agree as follows: 1. Term ofPermit. Theterm ofthis Permit shall be a period ofsix (6) months, and shall run from August 1, 2013 through January 31, 2013. Thereafter, this Permit shall automatically be extended/renewed on a month-to-month basis upon the same terms aod conditions contained herein, with the exception of fee payment as set forth below, unless terminated under the provisionsofthis paragraph.Eitherpartymayterminatethis Permitat anytimeby servingwritten notice uponthe otherpartyatleastthirty (30) days inadvaoce ofthe effective date oftermination. 2. PermitArea; Use. Companymayusethepermittedfacilities 

### attheAirport solelyin connection with its business ofproviding "BannerTowingOperations" atthe Grand StrandAirport. 3. Permit Fee. Company will pay County a non-refundable annual fee of Three Thousand

1 HCDA-000114($3,000.00) Dollars, which will bepro-rated for six (6) months inthe amount ofFifteen Hundred Dollars ($1,500.00), which allows Company to operate which will be at the discretion of the Airport Director, payable on or before August I, 2013. After the initial tenn, this Pennit will continue on a month-to-month basis unless otherwise tenninated, Company to pay to County 

### JI1Z'h ofthe annual fee set forth above without demand, and without set-offor deduction, in advance ofor before the first day ofeach month the Pennit may continue. County reserves the rightto adjust sucb fee from time to time uponthirty (30) days written notice to the Company. In the eventthe Pennitterminates on otherthanthe last dayofanyparticularmonth, the fee shall be prorated. Failure to pay by the first of each month shall constitute an event of default. Late paymentcharges ofone and one-halfpercent(1]I, %)willbeassessedonalloverdue accounts after the tenth (10th) day ofeachmonth, payment ofwhichwillnotexcuse default. 4. SpaceUsePremises. TheCountyherebypennits Companyto occupyand use space inHangars #8 & #9 plus six (6) aircraftparking spots directly in front ofsubject hangars, together with any surrounding curtilage and parking ("Space") to be utilized for Company's "Banner Towing Operationsto the General Public". 5. Laws. Rules. Regulations and Procedures. Company shall observe and comply with all Federal, State and locallaws, rules, and regulations, all County and City ordinances, and business license requirements, and all directives ofthe Horry County Department ofAirports, which now exist or whichmay be hereinafterbe enacted or adopted. Company will obtain, and provide upon request copies to the County, through its Department of Airports, all licenses, pennits and authorizations, as maybe necessary andproper, at Company's sole cost. 6. Hold Harmless and Indemnification. Company shall protect, defend (with counsel satisfactory to County), indemnify, and hold County, its Council members, advisory board members, officers, agents, employees and assignees hannless from and againstany and allclaims, debts, liabilities, losses, judgments, penalties, fmes, costs, damages, expenses (including reasonable attorney fees, court costs and expert fees), ordemands arising by reason ofinjury or death ofanypersonordamage to anyproperty, oranycause ofaction ofany nature whatsoever, in law or equity, arising out ofor incidental to this Permit orthe use ofthe Airport, or the acts or omissions of Company or Company's directors, officers, agents, employees, contractors, subcontractors or licensees; however, said indemnity shall not apply to any injury, death, or damage caused by the sole negligence or willful misconduct ofCounty. The provisions ofthis section shall survive the expirationorearlytermination ofthis Pennit. 7•.EnvironmentalIndemnification. Company shall indemnify, defend (withcounsel satisfilctory to County), and hold County, its council members, officers, employees, agents, assigns, and any successors to County's interest in the Airport, hannless from and against any and all loss, cost, damage, expense (including reasonable attorney fees), claim, cause ofaction,judgment, penalty, fine or liability, directly or indirectly, relating to or arising from the use, storage, release, discharge, handling, or presence of Hazardous Materials on, under, or about the Airport in violation of Company's obligations under this Permit ("Hazardous Materials Release"). This indemnification shall include without limitation (a) personal irUury claims, (b) the payment of liens, (c) diminutioninthevalue ofthe Airport, (d) damagesforthe loss orrestriction on use of the Airport, (e) sumspaidin settlementofclaims, 

### (f) actualattorneys' fees, consultingfees, andexpert fees, (g) the cost ofany investigation of site conditions, and (b) the cost ofany repair, cleanup,

2 HCDA·000115remedial, removal, or restoration work or detoxification if required by any govemmental authorities Of deemed necessary in County's reasonablejudgment. County shall have the right but not the obligation tojoin and participate in, and control, ifit so elects, any legal proceedings or action initiated in connection with the Hazardous Materials Release. County may also negotiate, defend, approve, andappeal any actiontakenorissuedbyanyapplicable governmental authorities withregardto aHazardousMaterials Release. Anycosts orexpenses incurredbyCountyfor which Company is responsible underthis Paragraph orfor which Companyhas indemnified County, (i) shall be paid to County on demand, during the term ofthis Pennit as an additional fee; and, (li) from and afterthe expiration orearliertermination ofthe Permit shall be reimbursedbyCompany on demand. Company's obligations pursuant to the foregoing indemnity shall survive the expiration or termination ofthis Permit and shall bind Company's successors and assignees and inure to the benefitofCounty's successors and assignees. 8. 

### Insurance. Company agrees to carry and keep in force a policy or policies ofpublic liability insurance throughout the term of this Permit, with an insurance company or companies of recognized responsibility and acceptable to the County, covering the bodily injury and property damage liabilitythatCompanyhas agreedbythis Permittoholdthe County, its Councilmembers, directors, agents, officers, and employees harmless against andto indemnify. Company agrees to carry and keep in force such insurance with limits of liability for death, personal injury and propertydamage in an aggregate sum equal to not less than two million ($2,000,000.00) Dollars. Said policy or policies shall name the County as an additional insured to the extent of the indemnification obligation hereunder. A certificate or certificates evidencing such insurance coverage shall be filed withthe Countypriortothe date Company commences use ofthe Airport and said certificate orcertificates shall provide that such iosurance coverage will notbe canceled, reduced ormaterially changedwithout atleastthirty (30) daysprior written notice to the County. At leastthirty (30) days priorto the expiration ofany suchpolicy, a certificate showingthat such insurance coverage has beenrenewed atextended shall be filed with the County. 

### Ifsuch coverage is canceled, reduced ormaterially changed, Company shall, within ten (10) days after receipt of writtennotice, file withthe County a certificate or certificates showingthatthe required insurance has beenreinstated orprovidedthrough another insurance company or companies. 

### 9. Non-Discrimination. A. Company warrants that it will undertake an affirmative action program in conformance with 14 CFRPart 152, Subpart E, to insure that no person shall, on the grounds ofrace, creed, color, national origin, or sex, be excludedfrom participating inany employment, contracting, or leasing activities covered in 14 CFR Part 152, Subpart E. Company assures that no person will be excluded on such grounds from participating in or receiving the services or benefits of any program or activity covered by Subpart E. Company further agrees that it will require that its covered sub-organizations provide assurances to Company that they similarly will undertake affirmative action programs and that they will require like assurances from their sub-organizations, as requiredby 14 CFRPart 152, SubpartE. B. Company agrees to comply with any affmnative action plan or steps or equal employment opportunityrequiredby 14 CFRpart 152, subpartE, aspartofthe affrrrnative actionprogram, and by any Federal, State, or local agency or court, including those resulting from a conciliation agreement, a consent decree, court order, or similar mechanism. Company agrees that State or

3 HCDA·000116local affirmative action plans will be used in lieu ofany affirmative actionplan or steps required by 14 CFR part 152, subpart E, only when they fully meet the standards set forth in 14 CFR 152.409. Company agreesto obtaina similar assurance from its covered sub-organizations, andto cause them to require a similar assurance oftheir covered sub-organizations, as required by 14 CFRpart 152, subpartE. C. Company warrants that no person shall, on the grounds ofrace, creed, color, national origin, sex, age or disability, be excludedfrom participating in any activity conductedunderthis Permit, orexcluded from the benefits offered by Companyto the general public, orotherwise be subject to discrimination. D. Companycovenantsthatitshalloperate in compliance with all otherrequirements imposedby or pursuant to Title 49, Code ofFederal Regulations, Transportation, Subtitle A, Office ofthe Secretary ofTransportation, Part21, Non-DiscriminationinFederally-AssistedPrograms ofthe DepartmentofTransportation, thepurpose ofwhich isto effectuate theprovisions ofTitle VI of the CivilRights Actof 1964; and as saidregulations maybe amended. 10. Termination. A. This Permit may be terminated by either party for any reason upon thirty (30) days prior written notice to the otherparty. B. ThisPermitmaybe immediatelyterminatedfor any ofthefollowing reasons: 

### 1. The loss oflicense, permitorauthorizationbyCompanythat prohibitsthe performance of the Permitandwhich cannotbe correctedwithinten (10) days. ii. Failure ofCompanyto maintaininsurance and complywiththe insurancerequirements set forth inparagraph 8, above. iii. Violation ofanyDepartmentofAirport'srule, regulationorrequirementrelatedto aircraft operation orsafety/security atthe Airport.
IV. Failure to maintain leased premises at Grand Strand Airport or if Company becomes delinquent onpayments for leasedpremises. 11. Assignment. Company shallnotassignthisPermitoranyrightorprivilege connectedherewith. 12. Governing 

### Law. This Permit shall be governed by and construedunderthe laws ofthe State of South Carolina. This Permit is not subject to alternative dispute resolution except where ordered by a courtofcompetentjurisdiction or required by operation oflaw. The forum for any action or claimbrought as a resultof this contract shallbetheCourtofCommonPleas,HorryCounty, South Carolina. 13. Entire Agreement! Amendment. This Permit constitutes the complete agreement ofthe parties withrespectto the subject matter hereofand supersedes all previous agreements, representations

4 HCDA·000117and understandings concerning the same, whether written or oral. The provisions ofthe Pennit may he modified, amended or waived only by a written instrument executed by County and Company. 14. Notice. Whenever any notice is required bythis Pennitto be made, given or transmittedto the parties hereto, such notice shall be deemed to have been given ifenclosed in an envelope with sufficientpostage attached, and sent by certified mail, return receipt and deposited in the United States Mail addressedto: . A. Asto Horry County: HorryCountyDepartmentofAirports 1100Jetport Road MyrtleBeach, SC 29577 Attention: DirectorofAirports B. As to Company: BarnstonnersAerial Advertising P.O. Box 1728 N. MyrtleBeach, SC 29598 15. NoPossessoryInterest

### in Premises.Companyisnotgrantedanypossessoryinterestorlicense inanypremises atthe Grand StrandAirportunderthisPennit. IN WITNESS THEREOF,theparties have causedthis Permitto be executedbytheir duly authorized officersthe day and yearfirst above-written.



### Its:,
_________ _

BARNSTORMERS**~**

### 'jDVERTISING

# By~l6ZJI- Its:
_________ _

5 HCDA-000118

## CERTIFICATE OFAIRCRAFT INSURANCE 03105/2013

BEL.OW. THIS

PRODUCER FORESTAGENCY. INC. 731

### owMADISON FOREST PARK.IL 60130
BARNSTORMER FLITE SIGNS. INC. C/O DAVID ROBtRTSON P,O. BOX 1728 NORTH MYRTLE BEACH, SC 29598-1728

NON-OWNED

AIRCRAFT COVERAGES require an**I~I£TTER:** 

# IpamWMlER 

# I EfFECTJVEDATE 

# I SA00161130-05 0310712013 

# """"""'" OPTIONS**~** All Risk Ground and**~HlJlL** Flight 

## - X Induding Passengers AIRCRJlFTLIABllITY 

# - -**~** INClLOINGCREW**l\IEDICALPA~** EXQ..UDlNGCREW COVERAGE CODE I:eSCRIPTION OPTIONS



# - -

- -



# - -**'AT''''~** ''l10t Ias., I IlnStlred. 

## ""**11roO~;;:ORT'RO,Aj)** ,**u,"l~un"** MYRTlE BEACH,.SC 29577 THE COVERAGEAFFOFlDED BYTHE POLICIES BETWEEN THE ISSUING.lNSUFlEFI(S), AUTHORIZED
A statementonthiscertificate does notconfer rlglitstothe

HULLONLY

E)<F!RATlONDATE**AOOmOr~LI~?{YfNJ**

# I

0310712014 THIS lHETERMS,

SUBROi3o\TlONW",,1VED (yrN) N LIMIT APPLIES TO LIMIT N'Pl.IESTO $ 62,000 $ 250 Ded.
- Not in molion AGREED VALUe $ 2,500 Ded.
- In motion $ 1,000,000 EAOCC $ EAPER $ 100;000 EAPASS $ AGGR $ 5.000 EAPER $ 10,000 EADGe

LlM1T AR'UESlQ LIMIT APPl1ESTQ**~ ~** **~** .WI
'TION**~~OULD,**

## 'DAT~!.~NOTICEWILL BE DEUYERED IN 

### Icc' 

# ,**~""':?::>** 

# ....-. ©2009. ACORD.21 (2009/12) The ACORD nameand logo are registered marks ofACORD
HCDA-0001191012212014 Harry County, SC Code ofOrdinances

Sec. 3·3.• Procedures governing the award ofbusiness opportunities and the leasing of property at airports owned or operated by the county. (a) From and after the effective date ofthis section the director ofairports and the council will be governed by and shall complywith the prOVisions ofthis section in the award ofall commercial concessions to be granted, extended, revised or amended at the airports. "Commercial concessions" shall mean all leases, licenses, contracts, permits and concession agreements between the County and persons [or] businesses doing business on orwishing to do business on orfrom the premises of one or more ofthe airports. In this context and for the purposes ofthis section, "person" shall mean any person, unit ofgovernment, corporation, partnership,jointventure or otherform of entity or organization wishing to occupy premises orto enter premises ofthe airportsfor the purpose of conducting particular activities thereon. Commercial concessions does not include: (a) agreements, permits or landing rights involving the landing ortaking off of commercial or private aircraft; or (b) agreements, permits or licenses granted bythe county to commercial airlines regarding the conduct ofsuch airline's airtransportation business on the airports. (b) The general policy ofthe county is that commercial concessions shall be awarded, extended and amended in a manner calculated to: (1) Provide high quality, safe and valuable service to the public; (2) Generate revenue to the county commensurate with (i) the fair marketvalue ofthe facilities and premises ofthe airports used bythe person granted the commercial concession or (ii) the value to the enterprise ofthe business conducted from the premises, whichever is the highest; (3) Ensure that competitive businesses conducting the same type of commercial enterprise at airports have a rental structure that does not place one such business at a competitive disadvantage with another such business; and (4) Allow companies that are awarded such a commercial concession a reasonable expectation of being able to continue the business over a period oftime consistent with (i) the time required to amortize capital investment by the business, (ii) the revenues paid to the county, and (iii) the need ofthe countyto recapture leased premises for other, higher priority, airport uses. (c) In achieving the policy objectives set forth in paragraph (b) above the following guidelines shall apply: (1) The initial award ofa commercial concession shall, to the extent practicable, be made on a competitive basis pursuantto published requests for proposals or requests for bids. Ifas a result ofthe competitive selection procedure a number ofqualified applicants in excess ofthe number ofcommercial concessions being granted are willing to enter into agreements with the county under uniform terms and conditions, the director shall determine an equitable and reasoned basis upon which to distinguish between competing proposals and shall recommend to county council those applicants which in the director'sjudgment best satisfythe requirement ofthe RFP of RFB and the Policies established by this section. (2) In all instances where the award ofa commercial concession will result in two (2) or more concessionaires competingto provide the same services to the same market at any single airport, and where the basic rental for such commercial concessions is based upon a percentage ("percentage rental rate") ofthe volume of commercial activity (such as gross sales) by each such concessionaire at such airportthen the percentage rental rate applicable to all such concessionaires shall be uniform. By way of illustration (but not of limitation)**of~8bl"gll}j5¥'** ifone https://www.municade.com/library/sc/horry_countyfcodes/code_oLordinances?nodeld=COOR_CH3ALARTIINGE_S3-3PRGOAWBUOPLEPRAIOWOPCO 1/310/22/2014 Harry County, SC Code of Ordinances fixed base operator ("FBO") at an airport pays a percentage rental rate ofsix (6) percent ofgross sales, then all successive commercial concessions granted to additional FBO's at that same airport duringthe term ofthe original FBO's commercial concession should also have a percentage rental rate ofsix (6) percent ofgross sales. Such uniformityof rental rates does not preclude any concessionaires from contractually committingto pay minimum rental guarantees that exceed the minimum guarantees that are paid by other such concessionaires. (3) Commercial concessions that involve businesses that operate in orfrom passengerterminals should in general be awarded for an initial term offive (5) years less one (1) day. This is to avoid violating the FAA prohibition against longterm exclusive airport concession contracts. (4) Commercial concessions that involve aeronautical activities requiring the lease ofairfield land and buildings, such as FBO's, aircraft maintenance facilities and air cargo buildings may not be on an exclusive basis and should be for longer terms consistent with the going concern concept of business operations. In particular, such terms should be for a minimum often (10) years orthe length oftime necessary to write offthe tenant's capital investment over a commercially reasonable period oftime. The terms ofsuch commercial concessions, however, should have recapture provisions that insure that the county may recover the use ofthe premises ifthe same are needed for county airport purposes. (d) The award of a commercial concession involving a lease or contract to lease real property owned by the county shall be by ordinance, requiring three readings, of Horry County Council. A public hearing shall be held before final county council action (third reading) is taken to award a commercial concession. Notice ofthe time and place ofthe public hearing shall be published in at least one (1) newspaper ofgeneral circulation in Horry County at least fifteen (15) days priorto the public hearing date. (e) Priorto or afterthe expiration ofthe original term of commercial concessions the county shall be permitted to grant an extension or renewal ofthe commercial concession to the incumbent concessionaire upon the recommendation ofthe director ofairports withoutthe requirement of additional competitive selection. Any such recommendation ofthe director ofairports for an extension or renewal without competitive selection shall be based upon a written certification bythe directorthat: (1) The concessionaire is atenant in good standing which has substantially complied with the letter and spirit ofthe commercial concession and is not and has not been in default ofany material provision ofthe commercial concession duringthe term of its commercial concession; (2) The rentals payable by the concessionaire duringthe renewal or extended term meetthe requirements ofsubsections (b) and (c) above; (3) No other entity has made awritten proposal or written unsolicited registration of interestto use the premises for a different purpose in that covered by commercial concession on terms that would provide greater revenues to the county orwould provide a more valuable service to aviation and the public at large than the commercial concession would provide ifextended; (4) The renewal ofthe commercial concession is necessaryto avoid commercial and/or personal hardship to the incumbent concessionaire and its employees in the concession, orto provide for the continuity of business for a going concern; and (5) Such a renewal is in the best interest ofthe airport concerned, the department ofairports and the county.

HCOA·000121 https:llwww.municode.comllibrary/sc/horry_county/codes/code_oCordinances?nodeld=COOR_CH3ALARTIINGE_S3-3PRGOAWBUOPLEPRAIOWOPCO 2J310/22/2014 Harry County, SC Code of Ordinances Under special circumstances, in conjunction with said extension or renewal, the commercial concession may be amended to include adjoining property or property in close proximitythereto provided: (1) the certification requirements set forth herein have been met; (2) the general policyfactors set forth in subsection (b) above, have been met. (f) Upon the request ofthe director ofairports and the certifications required in subsection (e) above, council shall be empowered but shall not be required to approve a renewal or an extension ofthe term ofthe subject commercial concession withoutthe requirement ofcompetitive bidding or proposals. In approving any such extension ofthe term the council may require thatthe concessionaire agree to an amendment ofthe rental, use or other provisions ofthe commercial concession if necessary to bring it into compliance with the policy considerations set forth in subsection (b) above, and as otherwise established hereby. The approval ofan extension or renewal shall complywith the procedure set forth in subsection (d) above. (g) Severability. Should any provision ofthis section be determined invalid by a court of competent jurisdiction, all other provisions shall remain unaffected. (Ord. No. 85-94, §§ 1-6,1-10-95; Ord. No. 166-99, §§/-11/,10-19-99) 

### Editor's noteSections 1-6 ofOrd. No. 85-94, adopted January 10, 1995, did not specifically amend this Code; hence, inclusion as § 3-3 

### 0was at the discretion ofthe editor.

HCDA-000122 https:llwww.municode.comllibraryfsc/horry_county/codes/code_oCordinances?nodeld=COOR_CH3ALARTIINGE_S3-3PRGOAWBUOPLEPRAIOWOPco 3/3Grand Strand AirTraffic Control Tower andHorry CountyDepartment ofAirports. LETTER OF AGREEMENT EFFECTIVEDATE: January I, 2012
SUBJECT:CONTROLJURISDICTION OFAIRPORT MOVEMENT AREAS I. PURPOSE:This agreement betweenGrand StrandAir Traffic Control Tower and Horry CountyDepartmentofAirports defines responsibilityfor the control ofaircraft, vehicular, and pedestriantraffic within the Movement areas ofthe Grand StrandAirport. 2. SCOPE: Tolimitto the maximum extentpractical a situation ontheMovementAreainvolving aircraft, vehicle, pedestrian, orobjectonthe groundthatwould create a collisionhazard and/or lossofseparation withan

### aircrafttaking off, landing, ortaxiing. 3. DEFINITIONS:

a. -MovementArea" meansnmways, taxiways, and otherareas ofthe airport which are usedfortaxiing, hovertaxiing,takeoffandlanding ofaircraft, exclusive ofloadingramps and aircraftparking areas. b. Airport MovementAreas controlled by Grand Strand Tower are: (1) Runway 

### 5123. (2) Taxiways A, B, C, D, and T. 4. RESPONSmILITIES:

a. Grand StrandAirTraffic Control Tower shall: (1) Control all aircraft, vehicular, andpedestriantraffic inthe defmedmovement areaat Grand StrandAirport during operational hours. (2) NotifY the Airport Operations orNorthMyrtle BeachPublic Safety of observedMovementArea incursions committedbyvehicle operators or pedestrians. b. Horry County Department ofAirports shall: (1) Take reasonable steps to inform all airporttenants/users ofthe contents ofthis agreement.

HCDA·000123(2) Takereasonable steps to infonn all authorized to use

### the MovementArea oftherequirement thattheymustreceive authorizationfrom StrandTower on the appropriate ground ortower frequencies. (3) Take reasonable steps to infonn authorized users ofthe requirement

### that vehicles or equipmentonthe movement areamustmaintain a listening watch onthe assigned frequency 121.8. (4). Takereasonable steps to insure that operators are aware oflost communication procedures ofwatchingthe tower for the appropriate tight gun signal.
5. ATTACHMENT: Attachment 1 Depicts the Grand StrandAirport MovementArea.

Michael LaPier Director Horry CountyDepartmentofAirports

MovementAreaJurisdictionLOA (1/2012)

# ~**~~ G~ay**  Manager Grand Strand ATC Tower

HCDA-000124

### Movemeu( Areais inside ofdashed lines

HCDA-O()()125

### Horry County Department otAirports, Myrtle BeachATCT, StrandFCTATCT, and Skydive MyrtleBeach 

### LETTER OF AGREEMENT EFFECTIVE: 5/11112 

### SUBJ: Non-emergency Parachute Operations atNorth Myrtle Beach, SC 

### 1. PURPOSE: TIris agreement establishes procedures and responsibilities for conducting skydiving/non-emergency parachute operations inMyrtle BeachATCT (MYR) and Grand Strand ATCT (CRE) airspace and onGrand Strand Airport. 

### 2. SCOPE: A. Application oftheseprocedures shall be limited to aircraft operatedby orfor Skydive Myrtle Beach, forthe purpose ofskydiving operations atCRE. B. SkydiveMyrtle Beachwill notifY CREand MYRinadvance ofoperations at CRE that are anticipatedto fall outside the scope ofthis agreement, forthepurpose of coordination ofsuch operations. 

### 3. RESPONSIBILITIES: A. HorryCountyDepartment ofAirports (HCDA):


### 1. Approves Skydive Myrtle Beachto operate at Grand Strand Airport in accordance withFAAFederalAviation Regulation (FAR, 14 CFR, Part 105, Section 23). 2. 

### Sha1l issuethe appropriateNotice to Airmen (NO

### TAMS), Advisory Circulars, Airport Advisories.

B. SkydiveMyrtle Beach: I. 

### Shall indemnifY, defend and hold harmless Robinson Aviation (RVA), Inc., employees and MYR employees from and against any and a1l demands, claims, actions, suites, loses, damages to 

### persons or property, arising out oforcaused by Skydive Myrtle Beach, its employees, agents, customers and others acting or participating in the operation or activity of sky diving or non-emergency parachuting on or in the vicinity ofGrand Strand Airport orNorth Myrtle Beach, SC

HCDA-000126

### HorryCounty DepartmentotAirports, Myrtle BeachATCT, Strand FCTATCT, and Skydive MyrtleBeach



### 4. DEFINITIONS: A. Jump Zone: Thatairspace boundby a lineparallel with taxiway alphato the approach end ofrunway 23 then directtomain street inNorth Myrtle beach andthe coast, from taxiwayalphaatthe approach end ofrunway5 to 46thAve. South, NorthMyrtle Beach, (the pointwherethe swashmeets the ocean), then a line from connecting those 2 points alongthe coast. 

### Note: Atno timewill ajumper(s) exitan aircraft outside ofthis Jump Zone without prior coordinationand approval ofMYR. (Attachment A) B. ClimbZone: Racetrackpattern at least2 nautical miles eastoftheJump Zone. C. Landing Zone: The arearepresented bythe rectangularboxand described as follows: WestBorder - a line approximately 450 feet long, 150 feet east andparallel to taxiway Alpha; North Border - a line approximately 300feet long and parallel to 27th 

### AvenueSouth; East Border- a line parallelingthe East Border; SouthBorder- a line parallelingtheNorth Border, approximately 75 feet from the edge ofthe FBOramp (AttachmentB).


### 5. PROCEDURES: A. Skydive Myrtle Beach: 1. Aircraft operated for parachute operations inthevicinityofCRE shall use thebeacon code 0341 and the call sign "Jump I" (ex: JMP1). 2. 

### JMPI must contact MYRfor Visual FlightRules (VFR) traffic advisories on frequency 119.2. On initial contact, thepilot must state theplannedjump altitude and any otherpertinent information. MYRwill issue advisories astraffic and workload permits. 3. JMPI pilotmustensure thatnojumpers exit an aircraftuntil withinthe Jump Zone airspace. 4. JMPI must advise MYRfive minutespriorto the plannedjumpand 2 minutes prior tojump. 5. Skydive Myrtle Beachparachutist are authorized to landinthe defined "Landing Zone" only and are not authorizedto land onany runway, taxiway orramp area. 6. Thejumpplane will advise CRE when alljumpers are onthe ground.

HCDA·000127

### HouyCountyDepartment ofAirports, Myrtle BeachATCT, Strand FCTATCT, and Skydive Myrtle Beach D. CREATCT 

### 1. Approve or disapprove thejumpbased ontraffic at CREand advise MYR. Ifthe jumpis delayed, an estimate oftime before approval shall begiven. 3. CRE shall notifyMYRwhen JMPI departs. 

### 4. CRE shall notify MYRwhen ailjumpers are onthe ground. 5. eRE shall assign a discrete beacon code andenterthe aircraft into the ARTS.
E.MYRATCT: 1. Shall advise CRE 5 minutes priorto the plannedjump 

### 2. Shall advise CRE 

### 2 minutes priorto the plannedjump forjump approval. 3. Switchthejumpplaneto CRE overhead the airport at 3000 feet.

MYR

- 843-238-2994

Michael LaPier Director CRE

- 843-272-3395

Horry County Department ofAirports GlennRay Manager Grand Strand ATC Tower

AndrewLee DZO, Skydive Myrtle Beach Ricarldo Washington Manager, Myrtle Beach Tower Myrtle Beach, South Carolina NorthMyrtle Beach, South Carolina

HCDA·000128

### FEDERAL AVIATION ADMINISTRATION OFFICE OF THE CHIEF COUNSEL

SKYDIVE MYRTLE BEACH, INC., Complainant,


### v. HORRY COUNTY DEPARTMENT OF AIRPORTS, Respondent. ) ) ) ) ) ) ) ) ) ) ) 

## --------------------------) FAADocketNo. 16-14-05



### DECLARATION OFHUGHJASON TERRERI I, Hugh Jason Terreri, do hereby depose and state: 1. Myname is HughJasonTerreri. I amthe AssistantDirectorofAirports for Horry County DepartmentofAirports ("HCDA"), theRespondentinthe above-referencedmatter. I was engaged as AssistantDirectoronMay4, 2014. 2. I make thisDeclarationon my own personal knowledge in my capacity as AssistantDirector ofAirports. 3. I submitthis Declaration in support ofRespondent Horry CountyDepartmentof Airports' Answer andAffirmative Defensesto Complainant Skydive Myrtle Beach, Inc.'sPart 16 Formal Complaint and Statement ofMaterial Facts in the above-referencedmatter. 4. As AssistantDirectorofHCDA, I am familiarwiththe operations atGrand Strand AirportinMyrtle Beach, South Carolina ("CRE") andthe CRE airport layout, includingthe dimensions ofthe ramp, apron, and individual hangars, and the particulartenant aircraft thatpark inthese areas.

4817·9603-3312.2
HCDA-000129

### 5. The Complainant Skydive Myrtle Beach, Inc. ("SDMB") currentlyuses a PAC P750-XL aircraft at CRE. This aircrafthas a wingspanof42 feet and, accordingtothe manufacturer's specifications, requires a minimum theoretical steering circle of84 feet to provide adequate wingtip clearance (15 feet). Basedupon themanufacturer's specifications attachedasExhibitA, and due tothe configurationofthe aproninthe vicinityofHangar 1 at CRE, SDMB'scurrentaircraft couldnotmaneuver into Hangar 1from the apron. 6. EvenifSDMB's aircraftwas able to enter into Hangar 1, HCDA would lose at least 10 revenue-producingparking spaces onthe CREramp inorderto ensure that SDMB's aircraft could safelyturn around and accessthe hangar. Thisis duetothe turningradiusrequired for SDMB's aircraftto access Hangar 1, andtherequired IS-foottaxilane wingtip clearance from fixed ormoveable objects, perthe requirements ofAC 

### 150/5300-13A Change I "Airport Design." The attached ExhibitB, entitled "Hangar 1 Operational Analysis PAC P-750-XL AircraftImpacts," illustratestheimpact SDMB'soccupancy ofHangar 1 wouldhave onaircraft parking spaces atCRE. 7. In addition, there is no directpublic access from the landside to Hangar 

### I. All of SDMB's customers wouldtherefore be required to traverse the active apron to access Hangar 1, adding a significant amount ofvehicular andpedestriantraffic to theramp. 8. HCDAhasnotreceived a formal requestfrom the tenant inHangar 1 to sublease thehangarto SDMB.
Signedunderthepenalties ofpeljuryon**October~** 

### 2014.



### 2 4817-9603-3312.2
HCDA-000130

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HCDA-000134

# EXHIBIT B

HCDA-000135EXiStlng Hangar



# grand strand Existing Hangar

Existing Terminal BUilding 

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...., PAC P-750-XL 15' Wingtip Clearance
Proposed Markings

NOTES 1. Aircraft parking layout shown based on Grand Strand Airport Ramp Rehabilitation Schedule I

- Marking Plan prepared lor Horry County Department of Airports (HCDA) in cooperation**w~h** Federal Aviation Administration (FAA) AlP Grant No: 3·45·0065·17 by Talbert & Bright, Inc. Parked aircraft shown are representaUve of existing aircraftl!eel mix and design aircraft specifications. 2. Pacific Aerospace PAC P·750-XL aircraft shown are drawn referencing aircraft**manufaclure~s** specifications and aircraft performance**capa\)II~les.** 3. The PAC P-75I).XL is an ADG I aircraft which requires 15·fuot taxilane wingtip dear' from fixed or moveable objects pe requirements of AC 150/5300·13A Cha. "Airport Desl!}n".

HANGAR 1 OPERATIONAL ANALYSIS

PAC P-7S0-XL AIRCRAFT IMPACTS OC;iEi!)I>ii%.;l,2014TO: FROM: SUBJECT: DATE: CC: INTEROFFICE MEMORANDUM
PAT APONE ROBERT WERNERSBACH SKYDIVING INCIDENT- MAY 27, 2013 JUNE 2, 2013/ MIKE LA PIER, TOM HINKEL

Date of Incident: May 27,2013 Time of Incident: 17:12hrs Local (Approximate) Location of Incident: CRE
- Grand Strand Airport, North Myrtle Beach, SC Weather Conditions: Clear, 75F, SE Wind @7-10mph Type of Incident: Skydiver landed on taxiway Skydiver Name, Address, Contact info: Taylor Booher 7070 Creekside Court N. St. Petersburg, FL 33709 Ph.: 727-656-2777 Email: taylor.booher@gmail.com Skydive Operator:

Investigative Narrative Skydive Myrtle Beach Aaron Holly Ph.: 910-322-3807 Email: aholly@me.com

Notified on Wednesday, May 29, 2013 by Glen Ray with the NMB Tower regarding a skydiver who on May 27, 2013 at 21:12z (17:12Id) inadvertently strayed onto and landed on the taxiway atthe north end ofthe airport adjacentto RWY23. Contacted Aaron Holly with Skydive Myrtle Beach and requested that his organization provide us with information regarding the incident. Attached find email statements from Aaron Holly & Andre Lee (both with Skydive Myrtle Beach



### M'iR '13 ,JUN17AJ1 3=47

HCDA·000137Wernersbach. Robert From: Sent: 

### To: Subject:


### Hello Bob, alee@leetackle.com Thursday, May 30, 2013 2:50 PM Wernersbach, Robert Student's taxiway Landing



### Here is abriefdescription ofwhatI saw and did. Taxiway landingreport I 

### was walking backto ourhanger whenTaylor was flying herparachute for herlandingpattern. I 

### did not see herland as my backwas to her as I 

### walked. When I 

### turned aroundto see how she did, she was already onthe ground and standing onthe edge ofthe taxiway. I 

### then walkedto ourplane and hadAlex(pilot) call the Control tower. I 

### spoke to Jack, to see ifhe wanted or needed any information we couldprovide, andto find outifthere was anything we shoulddo. He told me he thoughthe would haveto write

### areport. I 

### gave 

### himthe

### student's name 

### andtold 

### himto contactus ifheneeded anything else. Andrew Lee

1Wernersbach. Robert From: Sent: 

### To: Subject: Taylor Booher <taylor.booher@gmail.com> Wednesday, June 12, 2013 12:12 PM Wernersbach, Robert Re: FW: CRE Incident I, 

### TaylorBooherwas completingmy firstjump after ground school on

### May 27th at Skydive Myrtle Beach. During my approachtoland Itnissedjndgedwhere Iwas supposedto land and landed onthe taxiway. OnThursday, June 6,2013, Wemersbach, Robert wrote: Hi

### Taylor;

Here is the original email. Thanks and I lookforward to getting your statement. Bob

From: Wernersbach, Robert 

### Sent: Wednesday, May 29, 2013 5:37 PM 

### To: 'Taylor.booher@qmail.com' Subject: CRE Incident



### Good afternoon Taylor;

I amthe Director ofGeneral Aviationfor Horry Countyresponsible for operations 

## eRE.

AaronHolly with Skydive Myrtle Beachprovidedme withyour contactinformation. 1 HCDA-000139It

### is myunderstanding thatyouwere involved in an incident onMay 

### 27'h at 

### 17: 12 local at the Grand Strand Airportwhereinyou landed onan active taxiway atthe allport. We are attemptingto follow up onthisincident as the Grand StrandFAATowerhas filed anencroachmentreport andwe are requiredto follow up fromthe county'sperspective as to 

### the circumstances.

Please provide a statementto me coveringthe who, what, where, whenandwhy'srelatedto the incident. Thankingyouinadvance for yourresponse.**',I)'~,C '-\"-c:r':)I'f!~:;**  h,\!8" i\'i'!,n:r::**:~(** ·:ci-**.(.::-C~** /;i!);7 fiiia.ir:**,3jjJ,lj:Y~)_6T1,G' ~"'/'i){**  {;':L},ii·,17, ;'?-S'·) C>":.d f14::\,i s;:::" /,)2,': ',hi!i',f'"V FI '/!Vji,nile[+'7::;'[;i-' ,(T,-,',!

,qll e-mail correspondence to and from this address may be subject to public disclosure Linder the South Carolina Freedom of Information Act (FOIA). Trlis correspondence is intended exclusively for the individual or entity to which it is adclressed and may contain information that is proprietary, privileged, confidential or otherwise legally exempt from disclosure.

2 HCDA-000140Wernersbach. Robert From: Sent: 

### To: Subject: 

### Sir, Aaron Holly <aholly@me,com> Thursday, May 30, 2013 11:58 AM Wernersbach, Robert Re: Taylor Booher

In

### our first meeting withthe Tower, Ramp 66 and

### Mr Washington, I saidthat someone willadventially land on the Taxi way or Run Way. Ihappens everywhere. Included are some circulars thatwe use to 

### operate: 

### httg:IIWWV,f.fM.gov/documentLibrary/media/Advisol'y" Citcula.r/ARll-

### JOP**LA"',irQotL~.**

### odf 

### h!l.2Jfwww.faa.rw
. .!ldocumentLibl.llry/mediaiAdvisory Circular/AC%201

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This istechnicallynot an incident. The above circular states so. We have anLOAwithtower, the landing was not intentional and the FAA states ifsuch alanding occurs we are to vacate immediately for safety reasons. The tower knew immediatey and we called Jackinthe toweras soon as ithappened. Andrew and Alex both spoke to 

### Jackinthetower as soon as ithappened. This isnot aRunway or Taxiway incursion. We have permissionto be there. As far as theincident: Who

- you have the students contactinfo. The instructorwas PeterBiro. What-Thiswas the Students firstjump

- This is calledAccelerated FreeFalL The studentwas onradio and was overwhehnedby events (happens quite often) and responding slowly to commands onradio. Winds were withinlimits for student operations. Studentlanded onairport, whichis bestplace to land for safety. No injury ordamage to property occurred Thanks for your support and let me knowifyou need anything else. Aaron

OnMay 30, 20l3, at 11:28 AM, Wemersbach, Robert wrote:

Hi Aaron; I need a little more specific information related to the incident aside fromjust a name and contact info. Iwill need the who, what, where, when, why and how related to this. Please send atyour earliest opportunity. Thanks 1 HCDA-000141Wernersbach. Robert From: Sent: To: Subject:


### Here itis aholly <aholly@me.com> Wednesday, May 29, 2013 5:22 PM Wernersbach, Robert Fwd: Taylor Booher

Sent from my Verizon Wireless 40 LTE Smartphone



### -------- Originalmessage -------- From: alee@leetackle.com Date: 

### 05/29/2013 16:54 (GMT-04:00) To: aholly@me.com Subject: Taylor Booher Taylor Booher 

### Taylor.booher@mnail.com 727-656-2777 7070 creeksidecourtN. St. Petersburg, FI, 33709

1 HCDA·000142

### WeatherHistoryFe- NorthMyrtle)kach, SC I 

### WeatherUndergrOlU1d



## . ' . '\ 

### Page 3on

Time (EDT) Temp. Dew Point Humidity Pressure Visibility Wind Oir Wind Speed GustSpeed Pre, 3:09AM 57.2 of 55.4 of 94% 3.0mi Calm Calm N/A 3:53AM 55.9 of 55.0 of 97% 7.Dmi NE 3.5 mph N/A 4:53AM 57.0 OF 55.9 of 96% i0.0mi Calm Calm N/A 5:53AM 57.0 of 55.9 of 96% i0.0mi NNE 4.6 mph N/A 6:53AM 60.1 of 57.9 of 93% 10.0mi NE 3.5 mph N/A 7:53AM 66.0 of 60.1 of 81% 10.0mi NE 3.5 mph N/A 8:53AM 73.0 of 55.9 of 55% 10.0mi SE 8.1 mph N/A 9:53AM 13.9 of 55.0 of 52% 10.0mi ESE 8.1 mph N/A
10:53 AM 75.0 of 57.0 of 53% 10.0mi ESE 6.9 mph N/A
11:53AM 75.0 of 57.0 OF 53% 30.28 in 10.0mi SE 8.1 mph N/A
12:53 PM 75.9 of 57.0 of 52% 30.27 in 10.0mi ESE 9.2 mph N/A 1:53 PM 75.0 of 57.0 of 53% 30.27 in 10.0mi ESE 8.1 mph N/A 2:53 PM 75.0 of 59.0 OF 57% 30.26 in 10.0mi SSE 8.1 mph N/A 3:53 PM**-..y)'§.~/. ~F**  "r-S.1% ]:O.25,.. •._ .. 11l,0 mi ._ SSE ,_10.4

## '!'J!ll. 17.3 mph N/A**\,,"--'.~"_"'n** "'"" '\ 

### ',r-'**~~'\".,r** '"/ """'/**"/"'~<"'~/"#'~"""""~"** 4:53 PM 75.0 of 57.9 of 55% 30.23 in 10.0mi SE 10.4 mph N/A 75.0 of 60.1 OF 60% 30.22 in 10.0 mi SE 6.9 mph N/A

## ~~~~~ 7:53PM 73.0 of 61.0 OF 66% 30.22 in 10.0mi SSE 5.8 mph N/A 8:53PM 72.0 of 61.0 OF 68% 30.22 in 10.0mi SE 4.6 mph N/A 9:53PM 72.0 of 63.0 of 73% 30.24 in 10.0mi SSE 6.9 mph N/A 10:53 PM 72.0 of 64.0 of 76% 30.25 in 10.0mi SSE 5.8 mph N/A 11:53 PM 72.0 of 64.0 of 76% 30.23 in 10.0mi SSE 8.1 mph N/A
Show full METARS I METAR FAQ I Comma Delimited File

### http;//www.wunderground.comlhistory/airport!KCRE/2013/5/27IDailyHistory.html?r~8tt.-.**OO**

### °6'7212013

### Weather History f'w NorthMyrtle Beach, SC 

## IWeatherUnderground Page:L 

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# n@~ d, midnight1 2 3 4 5 in Hg Barometric**Presslln~.**

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midnight1 2 3 4 5 G 8 9 10 11 noon 1 2 3 4 ; G 7 3 9 10 11 mph

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15,0 10,0 5.0 0.0 >--. midnightl 2 3 4 5

2 3 4 5\Mnd Gust**~'-~'--.--~** I I • B 7 8 9 10 11 noon 1 2

7 8 9 10 11 noon 2 Certify This Report



### Hourly Weather History & Observations 3

3

Tim·tEDn Temp. Dew Point Humidity Pressure Visibilil¥ 12:53 AM 57.0 OF 55.0 OF 93% 10.0 rn; 1:53AM 57.9 OF 57.0 OF 97% 10.0mi 2:53AM 57.0 OF 55.9 OF 96% 6.0m; 3:00AM 57.2 OF 55.4 OF 94% 1.Smi 4 5 7 8 9 10 1 tMrm,"'mt'

WindOir Wind Speed GustSp ••

d NNE 3.5 mph Calm Calm Calm Calm Calm Calm Showfull METARS IMETAR FAQ IComma Delimited File Prel NIA NIA NIA NIA

### http://www.wunderground.comlhistory/airportlKCRE/2013/5/27IDailYHistory.html?re<LI(;tf.~'oo~m2013Skydive Myrtle Beach Tuesday, January 07, 2014
Notes Re: certified letter: Spoke with RobertEastman in reference to my letter addressing unrestrained dog and possible overnightresidents. ·Mr. Eastman's letter states we refused to accept business mail. Incorrect; the letter in question was sent certified with "return receipt" requested. FBO could not sign for itper my instructions. -Dog was observed numerous times by Airport staff, unrestrained on ramp in proximity to an individual thatMr. Eastman stated was one oftheir "riggers". ·SpokewithMr. Eastman the day I received the attached letter. Advised him the dog has been continually observed as recently as a few weeks ago (midNovember 2013) onthe CRE ramp unrestrained. In addition, we have received an FAAlLOI notice in reference to his clientele walking across an active runway during fixed wingoperations. WhenI describedthe dog's "owner" in detail, along withthe silverHondahe drives onthe ramp, Mr. Eastman relented and advised me this is one ofhis employees and the dog issue has been rectified. I further advised any animal in their care mustbe restrained. He agreed. The "many" unrestrained animals Mr. Eastman mentions in his letter belongto transient customers flying into CRE. Inreference to the FAA/LOI; Mr. Eastman advised me all of his clientele are briefed toremain clear ofthe active runway andtaxiways. C. Bree

HCDA·000145'(**:~** i

,**~.**

### Horry County Department ofAirports 

### Unusual Incident Report Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report:**_C_h_a~_e_s_B_re_e** ______ _ Organization and Position: Harry County Department orAlrports(HCDA) Telephone number: ..:8..:43-:....:.44.:.:8-':..1:..;5-::-80:-:-=:-:-

_____ _ Date ofAccident/Incident: .:.A",p",ril..:2:..;4:.:. 2:.:0..:1.:.4

_____ _ Time: Exacttime; unknown Location: Grand Strand Airport (CRE) ramp Date of Report: ..:51::..1::5::12::0.:.14:....:.

_____ _ Names ofWitnesses Witness 1 Name: Sarah GlandersJHCDA FeD Employee Address: 1100Jelport Road Myrtle Beach, SC 29577 Telephone: 843-448-1580 Witness 2 Name: Lon Locklear/HCDA FBD Employee Address: 1100Jelport Road Myrtle Beach. SC29577 Telephone: 843-448-1580 Witness 3**Name:.:.N.:.:~.:.-** _________ _ Address: Telephone: .:.N.:.:/A

_________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident Per Ms. Glanders' and Ms. Locklear's statements a skydiving customer of Skydive Myrtle Beach (SDMB) landed on the CRE ramp in close proximity

### to a businassjet and fuel truck. According to Ms. Glanders, this individual landed within five (5) feet ofthe aircraft and within fifteen (15) feet ofthe FBO building. This area iswell outside the established landing zone on CRE property. Deta ils ofany injuries: None

Details of damage to aircraft/vehicles/equipment/facilities: None

HCDA-000147

### letters regarding gate usage at 

## eRE. These letterswere attached to witness statementsfrom a Skydive incident that occurred on April 

## 24th, 2014.

HCDA-000148On April 24,2014 Sky-dive hadjumpers landing very close toour ramp where our fueltrucks travel, landing on the taxi way, landing on the run way and landing feet from aJetthatwas on our ramp and onlyfeet awayfrom ourdoor. I was outside on my breakwhen I sawthe above statement, and when agolfcart camp up with other sky-dive employees tothejumper, laughing and asked him where he was going.

Lori Locklear 

### r 

# )
".

HCDA·000149On Thursday, April 24, 2014, an individual from Skydlve was landing and came within 10 or 15 feet from the ramp doorofNMBA. He landed within 5' ofthe tall ofaJetwe had parked on the ramp. It appeared as though Ifthe wind had not brought him down quickly to where he was, there was abig possibility he may have landed on the jet.
Sarah Glanders Admin Asst. NMBA

HCDA·000150April 30, 2014

To whom Itmay concern,

What is the purpose ofafence and gate at an airport Ifagroup of people continue

### to abuse thesystem ofIngress and egress security? The officials at North Myrtle Beach Aviation have tried for months to have asystem where the gate would open and close with secure codes forthis same group of people who renta hangarfortheirsky diving business. This groupforthe lastfew weeks has been using a metal sign thattrips thesensorto activate the gate as Ifavehicle was approaching It. This procedure enables entry ofanyone atanytime on this secured federal property. Why have the gate and fence, Ifthis group ofpeople Is continuingtoabuse the system ofsecurityforthis airport. ItIs also known this abuse is allowing unknown people

### to walk around the area smoking cigarettes and drlnking during parties on weekends. It Is perceived this shocking behavior could lead toserious Injury. As an observer Itseems likethis group ofpeople treattheir business as agiant plavground on this airportproperty. I hope as a businessman thatthis observation will help officials gain control ofthis situation and we will all feel safe again.
Regards, Concerned citizen

HCDA·000151

### Horry County Department ofAirports 

### Unusual Incident Report Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report:**-,c:.;.h:;ca~::.:.c;:** •.:::B.:.;r.;.:.

______ _ Organization and Position: HorryCounty DepartmentofAirports Telephone number: .:8;.:43-=-:.44.:.:S-:..,1.:.:5c;:80"-:--:::-:-:-

_____ _ Date ofAccident/Incident: .:.M.:.;a"'y-'Ic;:O,:..:2=Oc;:14-'---

_____ _ Time: Exacttlme; unknown Location: Grand Strand Airport (CRE) ramp Date of Report: _5_/l_512.:.;:;c0l.:..4'-
_____ _ Nemes ofWitnesses WltDessl Name: Glenn Ray/CRETower Manager Address: 1500 west33rd Ave. S North Myrtle Beach 29582 Telephone: 843-272-3395 WltDess2 Name:

__________ _ Address: Telephone:

________ _ Witness 3**Name:.:::N:..:~-'---** ________ _ Address: Telephone:

________ _ DetaUs Details ofthe accident/incident: (Include details ofpeople involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident As reported by CRE Tower Manager Glenn Ray, on April 10, 2014, three (3) skydive customers ofSkydive Myrtle Beach landed in the AOA 

### at CRE. This area is well away from the designated, agreed upon, skydive landing zone. The individuals proceeded to walk across Taxiway "A" and exited the AOA on the ramp. Mr. Ray Has forwarded a**:M~nda.lo~ Occurr~mce**  Report" (MOR) 10 the Atlanta FAA-8afety Office. The MRO does not list any contributing Details ofany injuries: None

Details ofdamage to aircraft/vehicles/equipment/facilities: None

HCDA-OOOI52Wednesday, May 14, 2014
Mr. John Marshall, FAA-ADO Program Manager FAA/Atlanta Airports District Office 1701 Columbia Avenue South College Park, GA 30337-2747
Re: Recent events at Grand Strand Airport (eRE)
Dear Mr. Marshall,
I'm writing in reference to the two recent events we spoke about this morning regarcllng Grand Strand Airport (CRE). The first occurred on April 241h, 2014. Two Harry CountyAirport employees reported an errant skydiver landed on the CRE ramp, well outside the designated/approved landing zone. The skydiverwas a customer of"Skydive Myrtle Beach" (SDMB). SDMB is a CRE tenant. Per the employee statements, the skydiver landed in close proximity to a business jet and a fuel truck. Since this event occurred outside the movement area, an incursion report was not filed by the Tower Manager.
The second event occurred on May 10th, 2014. Three skydivers, also customers of (SDMB), landed in the MovementArea, well outside the designated/approved landing zone. Thethree individuals proceeded to walk across an active taxiway without contacting the Tower. Since this incursion took place inside the MovementArea, the Tower Manager has forwarded a "Mandatory Occurrence Report" (MRO) to the FAA. A similar incident occurred on November 13'h, 2014. Atthat time, I contacted the on-site manager representing (SDMB), Mr. Robert Eastman. Mr. Eastman stated "the company briefs all jumpers before each jumpto stand-by and not move or enter the movement area ifthey miss the LZ." Harry County Department ofAirport's staffconduct continuous training for CRE tenants requiring access to the ramp and Movement Area. The training curriculum is very similarto those used at commercial service (Part 139 Certificated) airports. SDMB has been advised ofthis training. On March 22"", 2014, five (SDMB) staff members had attended training. Owner, Mr. Aaron Holly and Mr. Eastman have not attended training.
I've attached a Letter ofAgreement (LOA) between the CRE Tower Manager (contracted with RVA), the Myrtle Beach InternationalAirport FAA Tower Manager, (SDMB) and Harry County Department of Airports (HCDA). It is important to note that due to construction activity on the ramp during the fall of 2013, the landing zone was moved to a more suitable location. Towards the end ofthe project, the Tower

1.100 Jetport**Ro~d** • Mwtlr. l3encl1. SC 29577 • P843 44B 1580 • F**8,~3** 626 9091J • 'MNIFlyMfrll£BeBch corn HCDA-000153Manager spoke with Mr. Holly. Both were convinced, once the landing zone was moved back to its original location, the errantjumps would cease. Therefore, the HCDA FBO Manager, Mr. Timothy Jackson closely monitored the final days ofconstruction and moved the landing zone back to its original location as soon as he was permitted to do so by the HCDA Construction Manager, Mr. Mike Illes.
Please contact me at the number below or at breec@horrvcounty.org ifyou have any questions. Sincerely,

Charles Bree Operations Manager Horry County Department ofAirports 1100Jetport Road Myrtle Beach, SC 29577 (P) 843-448-1580

Cc: Mr. Lanny Cline/FSDO, Mr. Herman Smith/ASO-Atlanta, Mr. Arrigo Carrotti/Horry County Legal Counsel, Ms. Pat Apone/HCDA Director ofAirports and Mr. Jason Terreri/HCDA Asssistant Director ofAirports

HCDA-000154

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report:**,C.C:::h::.,~:::.:.:s..:B:::r.:.:.** ______ _ Organization and Position: HorryCounty DepartmentofAirports Telephone number: ..:8:..:4::.3-.:.44.:.:!I-:..:.:15:.:8::.0.,--,-:-:-:--
_____ _ Date ofAccident/Incident:**.:;M::.:.~y..:l.:;4,:.:20::..:.14:._._**_____ _ Time: 4:30 PM local Location: Grand StrandAirport(CRE) Date of Report: ..:5:..;'1.:.:612"'0:..1:..;4
_____ _ Nemes ofWitnesses Witness 1 Name: John GrilflnlCRETower Address: 1500West 33rd Ave. S North Myrtle Seach 29582 Telephone: 843-272-3395 Witness2 Name:

__________ _ Address: Telephone:

________ _ Witn •••3**Name:~N.:.:~_=_**________ _ Address: Telephone:

________ _ Deteil. Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place thatcontributed to the incident Per Mr. Griffin's report; three (3) skydive cuslomert; ofSkydive Myrtle Beach landed well outside the landing zone at eRE. One (1) landed in front ofthe Tower and two (2) landed abeam the Runway 5 threshold.
Details ofany injuries: None

Details ofdamage to aircraft/vehicles/equipment/facilities: None

HCDA-OOOI55

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCOA staff in the event ofan unusual incident. Name of person that completed this report: .:C:::h::an:::e::s:::B::.:r

..**~**_____ _ Organization and Position: HonyCounty Department ofAirports Telephone number: .:8"''13-:..:.44:.:8-:..':.:5.:80''-
_______ _ Date ofAccident/Incident: .;:M::,:a:!y..:'.:.6,.:2::0.:.'4-'-
_____ _ Time: 11:25AM local Location: Grand Strand Airport (CRE) Date of Report:**.:51::..1::6::r2::0.:.'4~**_____ _ N.me.ofWitnesses Witness 1 Name: Glenn Ray/cRETower Manager Address: 1500 West 33rd Avo. S North Myrtle Beach 29582 Telephone: 843-272-3395 Witness 2 Name: Bill TIIIer/CRE Tower Controller Address: 1500West 33rdAve.S North Myrtle Beach 29582 Telephone:

________ _ Wltne.53 Name:**.:.N::/A~**_______ _ Address: Telephone:

________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident Per Mr. Tiller's report; two (2) skydive cutomers of Skydive Myrtle Beach landed well outside the designated, approved landing zone west of Runway 5123.

Details ofany injuries: None

Details ofdamage to aircraft/vehicles/equipment/facilities: None

HCDA-000156

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report: -'C"h.;;.art"osc:.c:B"re"e

______ _ Organization and Position: HorryCounty DepartmentofAirports Telephone number: ,;8,,43-:...;.44,,8-:,1:..;5,;80"-:--::-:-:-

_____ _ Date ofAccident/Incident: .::M::a"-y-'-16"',..:2::.0.:..14'-

_____ _ Time: 12:35PM local Location: Grand Strand Airport(CRE) Date of Report: _5I_1_6fl._01_4

______ _ Names ofWitnesses Witness 1 Name: Glenn Ray/CRETower Manager Address: 1500Wesl33rd Ave. S North Myrtle Beach 29582 Telephone: 843-272-3395 Wilne••2 Name: BillTllieriCRE TowerConlroller Address: 1500Wesl33rd Ave. S North Myrtle Beach 29582 Telephone:

________ _ Wltne••3 Name:.cN"'/A-'-

_______ _ Address: Telephone:

________ _ Det.lls Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident Per Mr. Ray's report; two (2) skydive cutomers ofSkydive Myrtle Beach landed well outside the designated, approved landing zone north ofthe approach lights for Runway 5 and and the wooded north of Runway 5.
Details ofany injuries: None

Details ofdamage to aircraft/vehicles/equipment/facilities: None

HCDA-000157Monday, May 19, 2014 Mr. Herman**Sm~h** FAA Southern Region Airports Division P.O. Box 20636 Atlanta, GA 30320 Subject: Request for information on Pedestrian Deviation at Grand Strand Airport
Dear Mr. Smith,
This letter is in response to your inquiry regarding the Pedestrian Deviation on Saturday, May 10, 2014 at Grand Strand Airport (CRE). As stated in your email, the deviation involved the actions of three sport parachutists, customers of Skydive Myrtle Beach (SDMB), attempting to jump into the designated and approved Landing Zone (LZ) at CRE. My conversation with the Control Tower Manager revealed that the three individuals missed the LZ and landed between ataxiway and the runway. Wrthout contacting the Tower, they proceeded to walk across an active taxiway and cleared the Movement Area via the ramp. I have also been in contact with the owner of SDMB with the intent to gather details and workjointlyto find a solution to this safety issue. The owner disputes an incursion occurred. He did state if he feels an incursion does occur, the offending party is suspended from operation for the day. Our investigation determined the following:
Who: Sky Dive Myrtle Beach customers What: Three skydivers landed well outside the LZ in the Movement Area. They gathered their parachutes and proceeded to cross an active taxiway before reaching the ramp. When: May 10,2014 at approximately 4:00 PM local time. How: It's indeterminable how this occurred. Why: In my discussion with the owner of SDMB, he made the statement "there was no incursion."
The owner refuses to recognize this as an incursion due to the fact at some point, he was in contact**w~h** the Tower.

1100 Jetport Road' Myrtle Beach, SC 29577 • P843.44B,1580 • F843626.9096 • www.FlyMyrtleBe.ach.cOID
HCDA-000158Since the owner disputes an incursion occurred, he felt no sanction was warranted. During our discussion, the importance of briefing the SDMB customers and working to ensure incidents such as this do not occur in the future was emphasized.
In addition, MovementArea training is provided by HCDA staff at this location. Five SDMB staff members attended training on March 22, 2014. Training is offered on a continuous basis. SDMB's owner has not attended training.
Ifyou have any further questions, please contact me at 843-839-7343 or breec@horrycounty.org. Sincerely,

Charles Bree Operations Manager Horry County Department ofAirports

HCDA-000159

### Horry County Department ofAirports Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report:_C_ha_"_e_s_B_ree

______ _ Organization and Position:**Hotll'Counl~Dep.llmmiofAirp.~I'(HCDJWOp··al**......M.nag"' Telephone number: -=8-=43-'--'.44-"11-:...1;..:5'-80

________ _ Date ofAccident/Incident: M:.:aY,-2",2=:.,.::.20:...1,,4

______ _ Time: 10:12AM Local Location: Grand strand Airport(CRE) Date of Report: "'512=212=0'-14'-

_____ _ Names ofWitnesses Witness 1 Name: Glenn Ray/eRE Tower Manager Address: 1500West33rd Ave. S Nonh Myrtle Beoch 29582 Telephone: 843-272-3395 Witness 2 Name: John GnfllnlCRE Air Traffic Controller Address: 1500West33rdAve.S North Myrtle Beoch 29582 Telephone: 843-272-3395 Witness 3 Name: Jason rlrnJIIHCDA Asst. DlredorofAlrpOr1s Address: 1110Jelport Road Myrtle Beach, SC 29577 Telephone: 843-4411-1580 Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident Per Mr. Ray's report; six sport parachutistsjumped from a plane operated by Skydive Myrtle Beach (SDMB). Three individuals landed in the agreed upon/designated CRE Landing Zone (LZ). Three others landed well outside the LZ and offCRE property. Mertalking with Mr. Ray via phone, he said the controller lost sight oftwo ofthe individuals and**advi~e~.hey ,:"~y**  have**I~n~~d o.~** **t~~ ~ac~** .•!he**~irtraff~? con!!:0Ile~.~s~7d**  ',!:l::?i!?t, via radio:**i~:~his" w~**  a**plan~e~** "

.. Details ofany injuries: None

Details ofdamage to aircraft/vehicles/equipment/facilities: None

HCDA-000160

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report: ,eC::.h:::an:::e::s.:B::.:re::e'-

_____ _ Organization and Position: Hony**CDuntyDeparlmentorAlrpQrtsJOpera~ons** Manager Telephone number:**~8=4:.3-.::44:::S.:...:.:15::8::.0**_______ _ Date ofAccident/Incident: .::M:::a:.!,y.:2::.3,c: 2 :: O

.:: 14



# =-_____ _ Time: Unknown Location: Grand strand Airport (eRE) Movement Area Date of Report: .::5:!/2::::312:!:,O:.1::4

_____ _ Names ofWitnesses Witness 1 Name: John GriffinJCRE Air Traffic Controller Address: 1500West33rd Ave. S North Myrtle Seach 29582 Telephone: 843-272-3395 Witness2 Name: BlllTllier/CRE AirTraffic Controller Address: 1500West 33rdAve. S North Myrtle Beach 29582 Telephone: 843-272-3395
Wltnes53 Name:**~N:::/A:..:-.**________ _ Address: Telephone:

________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place thatcontributed to the incident Per an E-mail report forwarded by CRE Tower Manager, Glenn Ray; Afterjumpingfrom a plane operated by Skydive Myrtle Beach (SOMB), one spert parachutist landed on Taxiway "A" and ran backto the approved/designated Landing Zone without contacting the Tower. Since thisevent occurred on an active taxiway in the Movement Area, CRE Tower staffwill forward "Mandatory Occurrence Repert". Details ofany injuries: None

Details ofdamage to aircraft/vehicies/equipment/facilities: None

HCDA-000161

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report: .:;E=dwa=rd.:...:D;;:ln"'9;;:le!...y

_____ _ Organization and Position:**HmycounI!iDap..tmentrtAirporw~er:iljOnSS~eMeDr** Telephone number: _8_43-_44;cS-;...1..:;5;...80

________ _ Date ofAccident/Incident: .;.M;;..a"v_2_4,-, 20_14

______ _ Time: 1718 Local Location: Grand strand Airport (eRE) MovementArea Date of Report: .,:51:.:2;;:512=01.:..4'-

_____ _ Nemes ofWitnesses Wltnessl Name: Phil ZelllCRE AirTrafficController Address: 1500W.st33rd Avo. S Nor1h Myrtle Seach 29582 Telephone: 843-272-3395 Witness 2**Name:.:.N~~~**__________ _ Address: Telephone:

________ _ Witness 3 Name: _N_'A

_________ _ Address: Telephone:

________ _ Deteils Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the Incident Per an E-mail report forwarded by CRE Tower Manager, Glenn Ray; Afterjumping from a plane operated by Skydlve Myrtle Beach (SDMB), one sport parachutist landed on West Side of RWY 23 and proceeded across RWY 23 and TWY A on foot without permission. Since this event occurred on an active taxiway in the Movement Area, CRE Tower staff will forward "Mandatory Occurrence Report". Details ofany injuries: None

Details ofdamage to aircraft/vehicies/equipment/facilities: None

HCDA-000162

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event of an unusual incident. Name ofperson that completed this report: ...:C"'h...:ad_C_o-'x'-

______ _ Organization and Position:**"'myCaUII\,DepatmeltItAlrpQUlOperMIon~6~eM~or** Telephone number: .:8...:43-:....:44:.:8-...:1:.:5"'80:-:-=

______ _ Date ofAccident/Incident: .:.M:.:a"y..:2...:4,:..:2:.:0.:.14.:......

_____ _ Time: ..:1"'82::8=--

__________ _ Location: Grand Strand Airport (CRE) MovementAree. Date of Report: _0_512_6f2_0_1_4

_____ _ Nlmes ofWitnesses Witness 1 Name: Phil ZelllCRE AirTraWic Controller Address: 1500West 33rd Avo. S Nalh Myrtle Beech 29582 Telephone: 843-272-3395 Witness2 Name: Robert ColllnsIHCDA Address: 2800 Tennlnel Rd. Nalh Myrtle Beech,Se 29582 Telephone: 843-848-7400
Witness 3 Name: .:.N;::.'A.:......

_______ _ Address: Telephone:

________ _ Details Details ofthe accident/incident: (Include details ofpeople involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident Per an E-mail report forwarded byeRETower Manager, Glenn Ray; Afterjumping from a plane operated by Skydive Myrtle Beach (SDMB), one spert parachutist landed West side of RWf 23, and proceed across RWf 23 without clearance. The jumper then proceeded onto TWfA where he was picked up by North Myrtle Beach Aviation Golf**~art.:.'** ..**~~opr~eded,** alto:.vers**r~~uest. ~ky**  Dive**~yrtle Bea~h** **~nt** a golf**c~rt**

## I? pick up**!h~ir ju~~e..':,** ,!luiwas,**u~ab~~** Details of any injuries: None

Details ofdamage to aircraft/vehicies/equipment/facilities: None

HCDA-000163

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the eventof an unusual incident. Name of person that completed this report: _E_dward

__ D_ln-=g:...le.:.y

_____ _ Organization and Position: HCDA Operatlons SUpel"\lisor Telephone number: .,:;84.;.::>-:...44=8-.;.:15:;:8:...0=c-
______ _ Date ofAccident/Incident: .;.:8-:.;.:22;:-.,:;20:...1..:;4
_______ _ Time: .;.:1.,:;30;:5
___________ _ Location: North Myrtle Beach Airport Date of Report: _8-_2_>-_20_1_4
______ _ Names ofWitnesses Wltn.ssl Name: Ectwa.rd Dingley Address: 1100Jelport Rd. Myrtle Beach, se, 29577 Telephone: .;.:8..:.4:>-_4
__ 4:...8-..:.15:.;80-=-
____ _ Witness 2 Name: Sam Narrow Address: 1100JetportRD Myrtle BeBch, se 29577 Telephone: _8..:.4:>-_4_4_8-_15_80
_____ _ Witness 3 Name: Bill Tiller Address: 2800 Terminal st. North Myrtle Beech, se 29582 Telephone: ..:8..:;4:>-:.c ZT =>-..:.33:.;95-=-
____ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of whattook place that contributed to the incident A parachuter landed then jumped offthe 10011 fuel tank South East of the designated landing area. According to ATe the jumping company did aknowledge the incident on ground Frequency.

Details ofany injuries: No remnrtp.d**inilJrip.~** Details of damage to aircraft/vehiciesjequipment/facilities: No damaged observed to airport property. HCDA-000164

### Horry County Department ofAirports Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report:**-.::C~h::ad~C~o~x~**______ _ Organization and Position: HCOA Operations SUpervisor Telephone number:**.:84~3-44:...:.::.8-~15::8:.0**________ _ Date ofAccident/Incident: .:8-.:22::".::2o::1.:.4
_______ _ Time: .:1.::53::5:....
__________ _ Location: North Myrtle Beach Airport Date of Report:**~8-:.:2::2-:.:2:.01:.:4** ______ _ Names ofWitnesses Wltnes.l Name: PhliZell Address: 2800Terminal st. North Myrtle BeaCh, SC 29582 Telephone: 843-272-3395 Witness2 Name: William Tiller Address: 2800 Terminal st. North Myrtle Beach, SC 29582 Telephone: 843-272-3395 Witness3 Name:

_________ _ Address:
Telephone:

________ _ Oeteil. Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place thatcontributed to the incident Two solojumpers landed outside landing zone. Landing tookplace between taxiways T , C and the ramp. Jumpers did stay in place, and waited fora pickup from Skydive MB staff. Proper clearance was obtained by Skydive MB before proceeding onto airfield.

Details ofany injuries: Nn reoorten**inilJrip.:~** Details of damage to aircraft/vehicles/equipment/facilities: No damaged observed to airport property. HCDA-000165

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report:**..:C::cha=~e::s..:B::cre::e,--**_____ _ Organization and Position: HCDAlOperations Manager Telephone number: _8_4_3-_44_8-_1_5_8_o

________ _ Date ofAccident/Incident:_4..;;J_ul.:.y_20_1_4

______ _ Time: Approx.01:30L Location: Offthe Beach of North Myrtle Beach Date of Report: ..;.7'-'/1.;:.6:;:12::.0.;..14'-

_____ _ Names ofWitnesses Wltnessl Name: None (See details below) Address: Telephone:

________ _ WltnessZ Name:

__________ __ Address: Telephone:

________ _ Witness 3 Name:

__________ __ Address: Telephone:

________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident Advised by local media an incident occurred involving a banner-tow aircraft and a para-sailjust offthe beach in North Myrtle Beach. No injuries reported. The aircraft and para-sail landed safely. FSDO advised they are aware and have been investigating. eRETower reported they were notformally advised and are working with the FSDO.

Details ofany injuries: Details of damage to aircraft/vehicles/equipment/facilities:

HCDA-000166

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the eventofan unusual incident. Name ofperson thatcompleted this report: .::C:::h:.art:::e::s.::B:::ree::...

_____ _ Organization and Position: HCDAlOperations Manager Telephone number: .::8::43-::::::44:::1>-:::1:.:5::8:.0

_______ _ Date ofAccident/Incident:**~4:.:J::U::!ly..:2:::0.::14~**_____ _ Time: Approx.01:30L location: Offtho Beach of North Myrtlo Beach Date of Report:**.:.71:..:1..:6f2=0.:..14~** _____ _ Names ofWitnesses Witness 1 Name: None (Soe details below) Address: Telephone:

________ _ Witness 2 Name:

_________________ _ Address: Telephone:

_______________ _ Witness 3 Name:

_________ _ Address: Telephone:

________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident Advised by local media an incident occurred involving a banner-tow aircraft and a para-sail just offthe beach in North Myrtle Beach. No injuries reported. The aircraft and para-sail landed safely. FSDO advised they are aware and have been investigating. eRETower reported they were not formally advised and are working with the FSDO.

Details ofany injuries: None Details of damage to aircraft/vehicles/equipment/facilities: Minor damage to the banner and the para-sail. HCDA-000167

### Horry County Department ofAirports 

### Unusual Incident Report Accident and Incident Report Form To be completed by HCDA staff inthe eventofan unusual incident. Name of person that completed this report: ..:c:::h=:art:::e::s.:B:::re::e'-

_____ _ Organization and Position: HCDAlOperaUons Manager Telephone number: ..:8..:43-.:....:.44.;.;8-'-1.;.;5'-8_0

________ _ Date of Accident/Incident:**.;7.;.;/2:.;4..;./2..;.0_14~**______ _ Time: 14:38L Location: CRE/Approach end RWY 23 Date of Report: ..:.712=812.=0::.:1..:4

_____ _ Nemes ofWitnesses Witness 1 Name: Bill Tiller/eRE ATC Address: 1500 West 33rd Ave. S Norlh Myrtle Beach 29562 Telephone: 843-272-3395 Witness 2 Name:

_________ _ Address: Telephone:

________ _ Witness 3 Name:

___________ __ Address:
Telephone:

________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident Skydive client of"Skydive Myrtle Beach" in proximityto Runway 23 approach end. While landing, became low overthe runway causing a landing helicopterto initiate a go-around.

Details of any injuries: NIA Details of damage to aircraft/vehicies/equipment/facilities: NIA HCDA·000168

### Horry County Department ofAirports Unusual Incident Report Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name ofperson thatcompleted this report:**~C:::ha=~:::e=s..:B:::ree=-** _____ _ Organization and Position: HCDAlOperations Manager Telephone number: .;;8"-43-::....:.44.:..:8-:,.1':'5::80:::-:-:-

______ _ Date ofAccident/Incident: ..:7.:..:/26=/2,,0'-14'-

______ _ Time: 15:51L Location:.;;C:.:.R:.:E=---:==:c-:-

______ _ Date of Report: .;7:::12:.:8::12:.:0.:..14::....:.

_____ _ Names ofWitnesses Witness 1 Name: eRE TOW(Ir/Controller(unnamed in inllel rapq\:) Address: 1500 Wost 33rd Ave. S North Myrtle Beach 29582 Telephone: 843-272-3395 Witness 2 Name:

__________ _ Address: Telephone:

________ _ Witness 3 Name:

__________ _ Address:
Telephone:

________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident One client ofSkydive Myrtle Beach, landed west ofthe Control Tower inthe Non-movement area.

Details ofany injuries: N/A Details of damage toaircraft/vehides/equipment/facilities: N/A HCDA-000169

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report:**..:C.;.;ha.::;~.;.;.",s..:B.;.;r.:..:.** ______ _ Organization and Position: HCDAlOperations Manager Telephone number:**..:8.:.43-=-4..:.4:.:6-:-1c:5~80=:-:-**______ _ Date ofAccident/Incident: .:.7..:-2:.:6-..:2:.:0..:.14"'-

______ _ Time: 18:20L Location: AIrfield, west ofCRE Control Tower Date of Report: _7-_2_6-_2_01_4

______ _ Names ofWitnesses Witness 1 Name: eRE Tower/Controller (unnamed in Inltial report) Add ress: 15110West 33rdAve. S North Myrtle Seach 29582 Telephone: 843-272-3395 Witness 2 Name:

_________ _ Address: Telephone:

________ _ Witness 3 Name:

_________ _ Address: Telephllne:

________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of whattook place that contributed to the incident One client ofSkydive Myrtle Beach, landed west ofthe Control Tower in the Non-movement area. Similar incident occurred previously on the same day.

Details ofany injuries: N/A Details ofdamage to aircraft/vehicies/equipment/facilities: N/A HCDA-000170

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HeDA staff in the event ofan unusual incident. Name of person that completed this report:**..::C.;.;h=a~c:;.c:s..::B.;.;re-,.**______ _ Organization and Position: HCDAlOperations Manager Telephone number: .:8..:.43-;:::..:.44c:;8-':-I:;S-c- 80



## =:::-:-:-______ _ Date ofAccident/Incident: .:7..::-2::6-..:2::0..:.14'--

______ _ Time: 18:50LL Location: Airfield, west ofCRE Control Tower Date of Report:_7_-2_8-_2_0_14

______ _ N.mesofWitnesses Witness 1 Name: eRE TomrlCortroller(unnemed in Initial report) Address: 1500West 33rd Ave. S Na1h Myrtle Beach 29562 Telephone: 843-272-3395 Witness 2 Name:

__________ __ Address: Telephone:

________ _ Witness 3 Name:

__________ _ Address: Telephone:

________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place thatcontributed to the incident One client of"Skydive Myrtle Beach" landed between TWY A and RWY 23 northeast ofTWY D.

Details ofanyinjuries: N/A Details of damage to aircraft/vehicles/equipment/facilities: N/A HCDA-OOOI71

### Horry County Department ofAirports 

### Unusual Incident Report Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report: ..:c"'h"'an..:eccs.=B._re

__ e ______ _ Organization and Position: HCDAlOperations Manager Telephone number: .:8,,43-""'44..:11-':-1'=5-:-80-::-,:-:-
_______ _ Date ofAccident/Incident: ,,7..:-2..:6-..:2:::0.:.14-'-
______ _ Time: 19:45L Location: Airfield, west of CRE Control Tower Date of Report:_7_-2_11-_2_0_14
______ _ Names ofWitnesses Witness 1 Name: eRE Tower/Controller (unnamed in initial report) Address: 1500West33rd Ave. S North Myrtle Beach 29582 Telephone: 843-272-3395 WltnessZ Name:

______________ ___ Address: Telephone:

_________ _ Witness3 Name:

____________ _ Address:
Telephone:

________ _ Details Details ofthe accident/incident: (Include details ofpeople involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident One client ofSkydive Myrtle Beach, landed west olthe Control Tower in the Non-movement area. Two similar incidents occurred previously on the same day.

Details ofany injuries: N/A Details of damage to aircraft/vehicles/equipment/facilities: NIA HCDA-OOOl72

### Horry County Department ofAirports Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report: Heather Solomon Organization and Position: General Aviation -AdministJalive Analyst Telephone number: _8_43-_84_8-_7_4.,-0,.,0-:-:c-:-
______ _ Oate ofAccident/Incident:_o_810_812_o_1_4
______ _ Time: 3:00pm location: eRE Ramp and Alrtleld Oate of Report: .;:0.:.810=86::./2,,0:..;1-'.4
_____ _ Names ofWitnesses Wltn.ssl Name: Heather Solomon Address: Administrative Analyst Telephone:

________ _ Witness 2 Name: Nikki Lucas Address: Customer Service Telephone:

________ _ Witness 3 Name:

____________ _ Address: Telephone:

__________ _ Detlils Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of whattook place that contributed to the incident Skydivers were landing in the grass on the otherside ofthe ramp. Have a photo. Also, a red golfcart drove on the taxi way area to pick up skydivers. To our knowledge, employees of SkyDive do not have proper accessto drive in thatarea. Heather contacted the tower and spoke with Bill, but he did not see these events. Details ofany injuries: None

Details ofdamage to alrcraft/vehicles/equipment/facilities: None

HCDA-000173

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed bV HCDA staff in the event ofan unusual incident. Name ofperson that completed this report:-'c:;,h.::.ad"-c.:.o"'x'-

______ _ Organization and Position:**HmyC~untyOepm.entctAlrplrt5/qler!tlcnsSl4leM~or** Telephone number:**..:8..:43-:....:.44.:.:S-=:-:c15-:=8~0=_:_------** Date ofAccident/Incident:-'0.::81..:1"'61.:20::.;1..:4
______ _ Time: 1130 Local Location: 7th Ave North MyrHe Beach Date of Report: .:0.::8/..:1.::612.:.0:.1:..:4

_____ _ Names ofWitnesses Wilnessl Name: Jack GrlfflnlCRE Air Traffic Controller Address: 1500West 33rd Ave. S North Myrtle Beach 29582 Telephone: 843-272-3395 Wllne.52 Name: Momy Reed Address: 1015 2nd Ave. S. North Myrtle Beach, SC 29582 Telephone: 843-281-3820 Wilness3 Name: .:.N:;,IA'-

_______ _ Address:
Telephone:

________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident**W~ness** reports state that on Saturday August 16th at approximately 1130am local 10

### to 12 parachutists landed on the beach near 7th Ave in North Myrtle Beach. North Myrtle Beach Beach Patrol responded to location and questioned the parachutists. When Beach Patrol questioned the parachutists as to why they landed on the beach, itwas answered "we do this all the Details ofany injuries: None

Details ofdamage to aircraft/vehicies/equipment/facilities: None

HCDA-000174

### AGENCYLD. SC0260700

3 

### IN-ENT REPORT

JURisDICTION OFTHEFT 'LAW eNFORCEMENT AGENCY H' e

H eJackson, Timothy From: Sent: To: Cc: Subject:

-----Original Message----- Block, Mildred Wednesday, April 09, 2014 11 :03 AM Jackson, Timothy Apone, Pat; Lovell, Kirk FW: Documentation

From: Chad Johnson [mailto:chad@phoenixlandscape.,netj Sent: Tuesday, April 08, 2014 10:36 PM To: Block, Mildred Subject: Documentation Milly, On SaturdayApril 5th,llanded on runway 23 and exited at Bravo taxiway intersection onto Bravo taxiway, I momentarily stopped on Bravo dueto my engine cutting off, I alerted ground control and had it back running in a few seconds, I alerted ground control and was cleared totaxi on Bravo to the ramp. Within afew seconds a green canopy was closing in on my position. I applied the brakes and reached for the mixture to cut offthe motor, in an attemptto not have my prop turning if he were to hit my aircraft, Ground control quickly warned me about him as he closed on my position within 30 feet. He pulled leftas he was traveling down taxiway bravo and landed in the drainage ditchjustoffthe taxiway, Ifear II had notseen him and gotthe plane stopped that he would have been badly injured. Other solo skydivers then descended along the edge ofthe ramp approximately 200 feet to my left. Ground control again warned me thatthey were "landing everywhere". The controller was less than pleased, I have recently been skydiving and enjoyed itvery much, On both occasions all ofourjumpers landed in a designated area outside the runway and taxiway environment. Mysuggestion is thatthey might locate a landing zone further away from the Runway and taxiways. The group I went with had people on the ground slinging sand in the air to show the skydivers the wind direction, Possibly some smoke devices or other means could be employed to improve wind awareness as well.
Chad Johnson President Phoenix Landscape Management Cell 864-201-3840 Toll free cell 866-874-6364 Main office 800-698-3590 Fax 864-609-9125 All e-mail correspondence to and from this address may be subject to public disclosure underthe South Carolina Freedom of InformationAct (FOIA). This correspondence is intended exclusively forthe individual or entityto which it is addressed and may contain informationthat is proprietary, privileged, confidential or otherwise legally exempt from disclosure.

1 HCDA-000176

### Horry County Department ofAirports 

### Unusual Incident Report
Accident and Incident Report Form To be completed by HCDA staff in the event ofan unusual incident. Name of person that completed this report: _C_h_ar_le_s_B_re_e

______ _ Organization and Position: HCDAlOperations Manager Telephone number: -'8_4"-3-_4_48:...-_15:...8-'0

________ _ Date ofAccident/Incident: _2_7_A_ U 9=-U_s_t2_0_1_4

_____ _ Time: 10:08L Location: Grand Strand (KCRE) Airport Date of Report: _2_7_A_u"'9U_s_t_20_1_4

____ _ Names of Witnesses Witness 1 Name: Glenn Ray/eRE ATe Manager Address: 1500 West 33rd Ave. S North Myrtle Beach 29582 Telephone: 843-272-3395 Witness 2 Name:

___________________ _ Address: Telephone:

________ _ Witness 3 Name:

__________ _ Address:
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________________ _ Details Details ofthe accident/incident: (Include details of people involved, aircraft, vehicles, and equipment. Include details of what took place that contributed to the incident Seven sport parachute clients of "Skydive Myrtle Beach" performed a jump. Two clients landed on the beach. One in the neighborhood east of CRE and one on the public road (Wiley Drive) adjacent Airport property.
Weather at the time ofjump: 01008KT 10SM CLR 24/17 A3001

Details of any injuries: N/A Details of damage to aircraft/vehicles/equipment/facilities: N/A HCDA-000177

# north rnyrtle beach
i':in**UE~IL:** 'Ud iil' Owned and operated by Harry County / Horry County Department of Airports March 20, 2014
To: Valued Customer From: Horry County Department ofAirports/North Myrtle Beach Aviation North Myrtle Beach Aviation is owned and operated by Horry County I Horry County Department ofAirports Re: Policy on accepting mail for tenants / Airport Operations Area (AOA) Drivers Training
Sir / Ma'am, Effective April 1 , 2014North Myrtle Beach Aviation will no longer accept any mail or other deliveries for any tenant at Grand Strand Airport (CRE). Ifyour mail or deliveries are currently being left at the Customer Service counter please make other arrangements. We understand that this was the procedure priorto the Horry County Department ofAirports (HCDA) assuming operations at CRE; however, HCDA's staff cannot be responsible for accepting, maintaining control of, or delivering HCDA's tenants' mail or deliveries. Also, to enhance the safety of operations at CRE HCDA will be providing AOA (Aircraft Operations Area) driver's training to all tenants that wish to operate vehicles on the AOA. Once instituted, successful completion ofthis training will be required priorto any person being permitted to gain access to the AOA in a vehicle. The classes are scheduled for; 1. Saturday 22 March 2014 at 09:00 am 2. Tuesday 25 March 2014 at 13:00 (1pm) 3. Thursday 27 March 2014 at 16:00 (4pm) The classes will be held in the FBO building. If you have any questions please feel free to contact North Myrtle Beach Aviation at 843-848-7400 NMBA@horrycounty.org orTim Jackson at 843-839-6740 jacksont@horrycounty.org

.

Sincerely,

# ~~t~,,- Tim JackQ FBO Manager Cc: Pat Apone/Director ofAirports Charles Bree/Airport Operations Manager Steve Robbins IARFF Chief

HCDA-000178'!'=-;. 

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HCDA-000180February 26, 2013 Written Statement

On Sunday, February 23", the pilotfor N750SN, the Skydive plane, came in to request fuel. Lori and I explained to him thatwe had to contact Tim Jackson to get approval to fuel their plane. He left, seemingly upset. I called Tim and he gave us approval forthe fuel request, providedthey have a form of payment at the time. As I hung up, Robert Eastman came in and asked ifthere was an issue. We explained thatwe had gotten approval and we would get the plane fueled. He made a commentthat they (Skydive) "weren't going to stop until Tim and Jack lose theirjobs". He also commented on his way out the doorthat we could make a point oftelling them what he said.

Sarah M. Glanders

HCDA·000181February 26,2013 Written Statement

On Sunday, February 23,d, the pilotfor N750SN, the Skydive plane, came in to request fuel. Sarah and I explained to him that we had to contact Tim Jackson to get approval to fuel their plane because ofcontract issues. He left, upset. We called Tim and he gave us approval for the fuel request, provided they have aform of payment. As Sarah hung up, Robert Eastman and two other men came in and asked ifthere was an issue. We explained that we had to call Tim to get approval and we would get the plane fueled. He made a comment thatthey (Skydive) "weren't going to stop until Tim and Jack lose theirjobs". He also commented on his way outthe doorthat we could tell them what he said.

Lori W. Locklear

HCDA-000182February 26, 2013 Written Statement

On Sunday, February 23", the pilotfor N7S0SN, the Skydive plane, came in to request fuel. Sarah and I explained to him that we had to contact Tim Jackson to get approval to fuel their plane because ofcontract issues. He left, upset. We called Tim and he gave us approval forthe fuel request, provided they have aform of payment. As Sarah hung up, Robert Eastman and two other men came in and asked ifthere was an issue. We explained that we had to call Tim to get approval and we would get the plane fueled. He made a comment thatthey (Skydive) "weren't going to stop until Tim and Jack lose theirjobs". He also commented on his way outthe doorthat we could tell them what he said.

Lori W. Locklear

HCDA-000183February 26, 2013 Written Statement

On Sunday, February 23", the pilot for N750SN, the Skydive plane, came in to request fuel. Lori and I explained to him that we had to contactTim Jackson to get approval to fuel their plane. He left, seemingly upset. I called Tim and he gave us approval forthe fuel request, provided they have aform of payment at the time. As I hung up, Robert Eastman came in and asked ifthere was an issue. We explained that we had gotten approval and we would getthe plane fueled. He made a comment that they (Skydive) "weren't going to stop until Tim and Jack lose theirjobs". He also commented on his way outthe doorthat we could make a point oftelling them what he said.

Sarah M. Glanders

HCDA·000184

### Jackson, Timothy From: Sent: To: Cc: Subject: Terreri, Jason Sunday, June 29, 2014 6:07 PM Bree, Charles Dingley, Edward; Apone, Pat; Jackson, Timothy Re: CRE Sunday

Ed did everything right. No worries. We address if it comes up with Aaron Thanks for sharing. Jason Sent from my iPhone
>On Jun 29, 2014, at 5:03 PM, "Bree, Charles" <BreeC@HorryCounty.org> wrote: > >Very briefly; Ed and Robert Eastman/Skydive MB were talking on the ramp. A skydiver appeared to miss the mark north ofthe fuel farm. Robert said he wanted to take a lookand asked Ed to ride along. After seeing everything was Ok, they returned to the ramp. Ed was approached by Mr. Hollywho followed Ed with his iPhone and recorded Ed's name using his badge. Apparently, even Robertstated Mr. Hollywas rude/aggressive about it. Ed was attemptingto make sure no one was hurtor landed outside the fence. > > Sent from my iPhone > > All e-mail correspondence to and from this address may be subject to public disclosure underthe South Carolina Freedom of Information Act (FOIA). This correspondence is intended exclusively for the individual or entityto which it is addressed and may contain information that is proprietary, privileged, confidential or otherwise legally exempt from disclosure.

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