Document:

exv10w2

Exhibit 10.2

AIRCRAFT MANAGEMENT AGREEMENT

     THIS AIRCRAFT MANAGEMENT AGREEMENT is entered into as of the Effective Date set forth below,
by and between CSC TRANSPORT, INC., a Delaware corporation with an office at 8000 Republic Airport,
Hangar 5, Farmingdale, New York 11735 (“CSC”); and NEW YORK AIRCAM CORP., a New York corporation
(“NY Aircam”), CHARLES F. DOLAN (“CFD”) and PATRICK F. DOLAN (“PFD”), each with an address at
340 Crossways Park Drive, Woodbury, New York 11771 (NY Aircam, CFD and PFD are collectively
referred to herein as “Client”).

CSC will manage Client’s aircraft described below (the “Aircraft”) in accordance with the terms and
conditions of this Agreement.

SPECIFIC TERMS

	 	 	 	 	 

	I.

	 	Aircraft Identification	 	 
	 
	 	 	 	 
	 

	 	•    Aircraft Make and Model:
	 	Cessna 501
	 
	 	 	 	 
	 

	 	•    Manufacturer’s Serial Number:
	 	501-0038
	 
	 	 	 	 
	 

	 	•    Aircraft Registration Number:
	 	N501JG

	 	 	 	 	 	 	 

	II.	 	Management Fee	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Monthly Management Fee:
	 	$1,000
	 
	 	 	 	 	 	 
	III.	 	Term	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Effective Date:
	 	July 9, 2010
	 
	 	 	 	 	 	 
	 

	 	 	 	Expiration Date:
	 	July 8, 2011

	 	 	 	 	 

	IV.

	 	Notices	 	 
	 
	 	 	 	 
	 

	 	To Client:
	 	To CSC:
	 
	 

	 	New York Aircam Corp.
	 	CSC Transport, Inc.
	 

	 	340 Crossways Park Drive
	 	8000 Republic Airport, Hangar 5
	 

	 	Woodbury, New York 11797
	 	Farmingdale, New York 11735
	 

	 	Attention: William A. Frewin
	 	Attention: Philip Prosseda
	 

	 	Telephone: (516) 803-9200
	 	Telephone: (516) 803-5910
	 

	 	Fax: (516) 364-4592
	 	Fax: (516) 694-6923
	 

	 	E-mail: bfrewin@dfollc.com
	 	E-mail: pprossed@cablevision.com

 

 

	 	 	 	 	 

	 

	 	and
	 	and
	 
	 	 	 	 
	 

	 	Charles F. Dolan
	 	Cablevision Systems Corporation
	 

	 	Patrick F. Dolan
	 	1111 Stewart Avenue
	 

	 	340 Crossways Park Drive
	 	Bethpage, New York 11714
	 

	 	Woodbury, New York 11797
	 	Attn: General Counsel
	 

	 	Telephone: (516) 803-9200
	 	Telephone: (516) 803-2300
	 

	 	Fax: (516) 364-4592
	 	Fax: (516) 803-2575

	V.	 	Aircraft Operating Base
	 
	 	 	The Aircraft will be based at Hangar 5, Republic Airport, Farmingdale, New York.

GENERAL TERMS

	1.	 	Management

	1.1	 	Management Services. In consideration of the fees paid by Client, CSC will perform
the following functions on behalf of Client:

	 	(a)	 	Employment or engagement and supervision of flight (for CFD and PFD) and
maintenance personnel for the Aircraft;
	 
	 	(b)	 	Aircraft maintenance at the Operating Base, maintenance management at contract
facilities, and related maintenance support functions;
	 
	 	(c)	 	Advice regarding insurance for the Aircraft;
	 
	 	(d)	 	FAA liaison;
	 
	 	(e)	 	Aircraft hangar, office, and shop facilities at the Operating Base and other
airport locations, as required;
	 
	 	(f)	 	Record keeping, reporting, budgeting, payment on behalf of Client of
Aircraft-related invoices and other administrative requirements;
	 
	 	(g)	 	Aircraft, passenger and Flight Support Personnel (as defined in Paragraph 2.1)
scheduling support services for Client and Client’s passengers; and
	 
	 	(h)	 	Management supervision of the operation and maintenance of the Aircraft by Client.

 

 

	1.2	 	Part 91 Operations. All flight operations by Client under this Agreement will be
conducted under Part 91 of the Federal Aviation Regulations, as amended (the “FAR’s”), and in
accordance with any other laws and rules pertaining to the operation of the Aircraft. Client
acknowledges that services to be provided by CSC to Client under this Agreement are intended
to assist Client in the operation by Client of its Aircraft under Part 91 of the FAR’s in the
conduct of Client’s business, and shall be undertaken by CSC consistent with such intentions
and only for such purposes.

	1.3	 	Operational Control. It is understood that NY Aircam leases the Aircraft to CFD
and PFD pursuant to Non-Exclusive Aircraft Dry Lease Agreements (each a “Lease”). Pursuant to
the Leases and in compliance with Part 91 of the FAR’s, at all times during the term of this
Agreement, when CFD or PFD (each, a “Lessee”) is using the Aircraft under the Leases, such
Lessee will have and retain exclusive operational control, and exclusive possession, command
and control, of the Aircraft. Each Lessee will have and retain complete and exclusive
responsibility for scheduling, dispatching and flight following of the Aircraft on all of his
own flights conducted under the Lease and this Agreement, which responsibility includes the
sole and exclusive right over initiating, conducting and terminating any such flights, subject
to the pilot-in-command’s authority for all safety-of-flight matters. Each Lessee will have
complete and absolute control of the crewmembers in preparation for and in connection with the
operation of all of his own flights conducted under the Lease and this Agreement.

	2.	 	Flight Support Personnel

	2.1	 	General. Pilots, mechanics, and flight attendants for the Aircraft (collectively,
“Flight Support Personnel”) will be appropriately certified, rated and trained as required
by the FAR’s and the insurance required by Section 9. Flight Support Personnel may be
independent contractors or employees of CSC. Flight Support Personnel who are CSC
employees will be employed by CSC and carried on CSC’s payroll, and CSC shall be
responsible for and shall timely pay and withhold all payroll and employment-related taxes
(including, without limitation, Social Security, Medicare and unemployment taxes) relating to
such Flight Support Personnel and shall timely file returns with respect to such taxes with
proper taxing authorities. Without duplicative effect, CSC shall pay the entire cost of
salary, benefits, employer payroll taxes, training and testing for Flight Support Personnel
who are employees of CSC. The cost of Flight Support Personnel who are provided by
independent contractors will be the responsibility of Client for flights operated by CFD or
PFD under this Agreement, and shall be paid in accordance with Paragraph 8.5. CSC shall cause
its contracts with independent contractors providing Flight Support Personnel to CFD or PFD to
provide that such independent contractor shall be responsible for all wages, and all payroll
and employment-related taxes (including, without limitation, Social Security, Medicare and
unemployment taxes) relating to such Flight Support Personnel and shall timely file returns
with respect to such taxes with proper taxing authorities. Client shall reimburse CSC for
hourly costs (based on the salary and benefits payable by CSC) incurred by CSC for the
services of Flight Support Personnel who are CSC employees on

 

 

	 	 	flights operated by CFD or PFD under this Agreement, which shall be paid in accordance with
Paragraph 8.5.

	2.2	 	Monitoring and Reviews. CSC will monitor the qualifications and performance of
Flight Support Personnel through a process of record keeping, performance reviews, direct
supervision and flight checks. Client will provide reasonable access to the Aircraft,
subject to Client’s prior permission, for CSC supervisory personnel to conduct required
training and flight checks to observe Flight Support Personnel performance.

	2.3	 	Termination or Replacement. CSC reserves the right to terminate or replace Flight
Support Personnel for any reason. If the credentials or performance of any Flight Support
Personnel are unsatisfactory to Client, CSC agrees that upon notice to that effect from
Client, it shall reassign and replace such Flight Support Personnel as quickly as possible
with another qualified individual acceptable to Client.

	3.	 	Flight Support Personnel Training and Qualification

	3.1	 	Training. CSC will conduct or contract for training for Flight Support Personnel who
are CSC employees that meets or exceeds the requirements of the FAR’s governing the type of
operation being conducted. Training will include, but not be limited to:

(a) Pilots: (i) initial aircraft qualification, if required; (ii)
Aircraft-specific recurrent training; (iii) policy and procedures recurrent training; (iv)
emergency situations training; and (v) professional qualifications enhancement training, as
required, such as cockpit resource management, international operations, and cabin medical
safety.

(b) Mechanics: (i) initial aircraft qualification, if required; (ii) biennial
aircraft-specific recurrent training; and (iii) biennial system-specific recurrent training
(engines, avionics, etc.).

(c) Flight Attendants: (i) initial qualification training, if required; (ii) policy
and procedures training; (iii) cabin medical training; and (iv) emergency situations
training.

	3.2	 	Training Flights. Client shall make available at its expense a reasonable amount of
Aircraft time to accomplish pilot training, proficiency checks and line checks as required by
the FAR’s; provided, however, that simulators shall be used to the extent practicable. In
addition to required FAA pilot checkrides, CSC supervisory personnel will observe line
operation of Flight Support Personnel to confirm crew performance and adherence to
CSC’s company procedures. Client will provide reasonable access to the Aircraft, subject

 

 

	 	 	to Client’s prior permission, for CSC supervisory personnel to conduct this observation. CSC
will maintain a current training record for Flight Support Personnel documenting
satisfactory completion of FAA and CSC training and currency requirements.

	4.	 	Aircraft Maintenance

	4.1	 	Maintenance Program. On Client’s behalf and at Client’s expense, CSC will
cause the Aircraft to be enrolled on an FAA-approved inspection program under Part 91 of
the FAR’s, and will conduct, contract for and/or supervise Aircraft maintenance services to
cause the Aircraft to be maintained in accordance with the requirements of the approved
inspection program and the FAR’s.

	4.2	 	MEL. On Client’s behalf, CSC will obtain an FAA approved Minimum Equipment List
(MEL) for the Aircraft.

	4.3	 	Records. On Client’s behalf, CSC will maintain records on the Aircraft, engines and
systems in accordance with the applicable FAR’s and CSC’s maintenance procedures.

	4.4	 	Maintenance Scheduling. Client will cooperate with CSC to schedule all maintenance
requirements. CSC will schedule maintenance, to the extent practicable, to minimize
conflicts with Client’s use of the Aircraft. CSC will keep Client apprised of the Aircraft’s
maintenance schedule.

	4.5	 	Maintenance Service Plan. On Client’s behalf, CSC shall provide to the appropriate
parties any periodic reports required in order to maintain in full force and effect the
Williams Total Assurance Program contract for the Aircraft’s engines. Client shall maintain
such program contract in full force and effect. All amounts payable under such contract shall
be the responsibility of Client and shall be paid in accordance with Paragraph 8.5.

	4.6	 	Appointment as Agent. Client appoints CSC as its agent for the purpose of
executing, for and on behalf of Client, any documentation required in connection with any
maintenance program, maintenance service plan and/or maintenance inspection agreements as
may be necessary in order for CSC to fulfill its maintenance obligations under this
Agreement. Client agrees to indemnify and hold CSC harmless from and against any claims,
damages, losses and expenses arising pursuant to any maintenance program, maintenance service
plan and/or maintenance inspection agreements entered into in accordance with the terms of
this Agreement.

 

 

	5.	 	Flight Scheduling

	5.1	 	Services. On behalf of Client, CSC will perform the following services related to
scheduling by Client of the Aircraft:

	 	(a)	 	Assist Client in scheduling the Aircraft;
	 
	 	(b)	 	Receive trip notices from Client and produce an itinerary for each trip giving the
pertinent details of the trip;
	 
	 	(c)	 	Arrange ground transportation requirements for Aircraft passengers;
	 
	 	(d)	 	Schedule Flight Support Personnel;
	 
	 	(e)	 	Arrange for Aircraft catering per Client’s request;
	 
	 	(f)	 	Arrange for landing permits, clearances, and ground handling for domestic and
international destinations; and
	 
	 	(g)	 	Coordinate the Aircraft’s movements to support Client’s travel schedule.

	5.2	 	Hours of Service. CSC will provide the above-listed services 24 hours per day, seven
days per week.

	5.3	 	Client Information. Client will give CSC the most up-to-date and complete
information available on the Aircraft’s proposed travel schedule. CSC agrees to hold in
confidence any information that it may gain regarding Client’s travel, business and security
arrangements, subject in all respects to applicable laws, regulations and rules of the New
York Stock Exchange.

	6.	 	Records and Administration

	6.1	 	Record Keeping. CSC will maintain facilities and personnel at its office for
Aircraft record keeping, operations supervision, scheduling assistance, and accounting
support. CSC will keep all flight, passenger, maintenance, operational, logbook, tax, and
cost records up to date and in accordance with good accounting practice and all other
applicable laws and regulations.

	6.2	 	Reports. CSC will supply Client with an annual budget and monthly reports
summarizing financial and flight activity.

 

 

	6.3	 	Record Retention. All records pertaining to the performance of CSC’s services
hereunder will be open for inspection and audit by Client at CSC’s office upon not less than
48 hours’ notice throughout the term of this Agreement, and for the period ending four (4)
years after the termination hereof. CSC will not destroy such records prior to the time when
Client’s right to inspect and audit terminates. The provisions of this Paragraph 6.3 will
survive the termination or expiration of this Agreement.

	7.	 	Hangar and Office at Operating Base

	7.1	 	Hangarage. CSC will provide Client with appropriate hangar, office, and shop space
at the Aircraft’s Operating Base (as specified in Section V of the Specific Terms) and at
other airport locations as may be required from time to time. Client shall be responsible
for the cost of hangarage at locations other than the Aircraft’s Operating Base, payable in
accordance with Paragraph 8.5.

	7.2	 	Provisioning. CSC will provision the Operating Base to support the operation and
maintenance of the Aircraft, subject to budget approval by Client.

	8.	 	Fees, Expenses, Deposits and Billing Procedures

	8.1	 	Management Fee. The monthly Management Fee to be charged to Client specified in
Section II of the Specific Terms will be billed to and payable by Client in monthly
installments in advance.

	8.2	 	Insurance Expense. Client shall pay directly the cost of the insurance coverage
required to be maintained by Client under Paragraph 9.

	8.3	 	Operating Expenses. Client shall be responsible for all Operating Expenses relating
to the Aircraft (to be paid in accordance with Paragraph 8.5). Operating Expenses include,
but are not limited to, the following items:

	 	(a)	 	Fuel, oil, and additives;
	 
	 	(b)	 	Replacement and consumable parts (including shipping costs and core charges for
parts and components), maintenance labor and third-party service fees for technical
support of the Aircraft;
	 
	 	(c)	 	Engine and airframe maintenance service plan fees, as applicable, and all other
expenses under Paragraph 4;

 

 

	 	(d)	 	Landing, parking, handling, customs, airways and overflight fees, hangarage fees at
locations other than the Operating Base, and computer flight plans;
	 
	 	(e)	 	Navigation, operations, and maintenance publications;
	 
	 	(f)	 	Catering, supplies, and in-flight entertainment materials;
	 
	 	(g)	 	Flight Support Personnel and CSC supervisory personnel travel expenses incurred in
support of Client’s operation of the Aircraft;
	 
	 	(h)	 	Communications charges and outside computer services related to Aircraft operations
and maintenance;
	 
	 	(i)	 	Passenger ground transportation; and
	 
	 	(j)	 	Cost of Flight Support Personnel in accordance with Paragraph 2.1.

	8.4	 	Non-recurring Expenses. Non-recurring Expenses relating to the Aircraft shall be the
responsibility of Client (to be paid in accordance with Paragraph 8.5). Non-recurring
Expenses include, but are not limited to, such items as Aircraft paint and refurbishing,
major maintenance items such as engine overhaul and airframe modifications,
maintenance ground support equipment, initial spare parts provisioning and inventories, office
and shop equipment, and communications and computer equipment at the Operating Base.

	8.5	 	Payment of Expenses. To the extent reasonably practicable, Client will pay all
amounts for which it is responsible under this Agreement directly to the applicable vendor,
supplier or provider. To the extent CSC incurs any such expenses on Client’s behalf, within
20 days after the end of each calendar month during the term of this Agreement, commencing
with the calendar month ending July 31, 2010, CSC will issue invoices detailing all charges
reasonably and properly incurred on Client’s behalf pursuant to the terms of this Agreement
for that calendar month. Invoices will be due 15 days from date of receipt. All goods,
support services, parts, labor, fuel, materials and any other items purchased by CSC on
behalf of Client will be passed on to Client at CSC’s actual cost, with no markup, rebate,
commission or other fee received or retained by CSC. CSC will attempt to secure
discounts on all purchases made on behalf of Client, and all such discounts will be credited
in full to Client’s account. Promptly after execution of this Agreement, Client agrees to
maintain with CSC an appropriate agreed-upon advance deposit, to be applied by CSC against any
amounts payable by Client under this Agreement.

	8.6	 	Post-Termination Expenses. Notwithstanding the expiration or termination of this
Agreement, Client will promptly reimburse CSC upon receipt of invoices from time to time until
all remaining Aircraft expenses reasonably and properly incurred by CSC on

 

 

	 	 	Client’s behalf pursuant to the terms of this Agreement are paid. The provisions of this
Paragraph 8.6 will survive the termination or expiration of this Agreement.

	8.7	 	Overdue Amounts. Overdue amounts payable pursuant to this Agreement shall bear
interest at a monthly rate equal to the lesser of 1.25% or the highest lawful rate
allowable under applicable law.

	8.8	 	Billing. All amounts due from Client under this Agreement shall be invoiced
separately to CFD, PFD and New York Aircam in accordance with Client’s written instructions
(it being understood and agreed that CFD, PFD and New York Aircam are jointly and severally
liable for all obligations of Client under this Agreement).

	9.	 	Insurance and Indemnity

	9.1	 	General. During the term of the Agreement, and notwithstanding anything in this
Agreement to the contrary, Client will procure and maintain at its sole cost and expense
aircraft insurance (the “Policy”) that provides hull insurance of not less than $1,600,000 and
liability coverage of not less than $25,000,000 for each occurrence. Client will cause its
affiliates to procure and maintain umbrella insurance that affords Client not less than an
additional $175,000,000 of liability coverage in connection with the Aircraft.

	9.2	 	Policy Provisions. The Policy will provide that:

	 	(a)	 	CSC and its affiliates and each of their respective members, managers,
shareholders, officers, directors, partners, employees, agents, licensees and guests are
designated as additional insureds (without responsibility for premiums) with respect to the
liability coverage.
	 
	 	(b)	 	The insurer waives any right of set-off and any right of subrogation against any of
the additional insureds.
	 
	 	(c)	 	No cancellation or substantial change in coverage of the policy shall be effective
as to the additional insureds for 30 days (seven days, in the case of war risk or allied
perils) after receipt by CSC of written notice from the insurer of any such cancellation
or substantial change in coverage of the policy;
	 
	 	(d)	 	All coverages will be primary, not subject to any co-insurance clause, not
contributory or subject to offset with respect to any other policies in force;
	 
	 	(e)	 	The insurance will include a severability of interest clause providing that such
policy will operate in the same manner to give each insured the same protection as if
there were a separate policy issued to each insured except for the limit of liability;
and
	 
	 	(f)	 	The “Approved Pilots” section will require all pilots to be approved by CSC and the
“Territory” section will provide Worldwide Coverage.

 

 

	9.3	 	Certificate of Insurance. On or before the Effective Date, Client will provide CSC
with a certificate of insurance evidencing all coverages in compliance with the requirements
of this Agreement.

	9.4	 	CSC Insurance. At all times during the term of this Agreement, CSC, at its own cost
and expense, will maintain the following types of insurance:

	 	(a)	 	Workers’ compensation insurance that provides applicable statutory benefits for all
of CSC’s employees including, without limitation, Flight Support Personnel who are CSC
employees, performing services pursuant to this Agreement and includes broad form
all-states coverage; and
	 
	 	(b)	 	Employer’s liability insurance for bodily injury by accident or disease.

	9.5	 	Cross Indemnities. Without limiting the respective obligations of CSC and Client
(each, a “Party”), each Party (in each case, the “Indemnitor”) hereby indemnifies and holds
harmless the other Party and its affiliates and their respective officers, directors,
partners, employees, shareholders, members and managers (in each case, collectively, the
“Indemnitee”) for any claim, damage, loss, or reasonable expense, including
reasonable attorneys’ fees (an “Indemnified Loss”), resulting from bodily injury or property
damage arising out of the ownership, maintenance or use of the Aircraft which results from
gross negligence or willful misconduct of such Party; provided, however, that neither Party
will be liable for any Indemnified Loss to the extent:

	 	(a)	 	Such loss is covered by the insurance policies described in this Paragraph 9 (the
“Policies”);
	 
	 	(b)	 	Such loss is covered by the Policies but the amount of such loss exceeds the policy
limits specified by Client; or
	 
	 	(c)	 	Such loss consists of expenses incurred in connection with any loss covered in
whole or in part by the Policies but such expenses are not fully covered by the Policies.
	 
	 	(d)	 	Such loss is caused by the gross negligence or willful misconduct of the
Indemnitee.

	 	 	For purposes of this Agreement, (i) Client and its affiliates (other than CSC and its
affiliates), if any, shall be the Indemnitees in any case in which CSC is the Indemnitor; and
(ii) CSC and its affiliates and their respective officers, directors, employees and
shareholders (excluding Client and its members and managers, if any) shall be the Indemnitees
in any case in which Client is the Indemnitor.

	9.6	 	LIMITATION ON LIABILITY. EACH PARTY ACKNOWLEDGES AND AGREES THAT:

 

 

	 	(a)	 	THE PROCEEDS OF INSURANCE TO WHICH IT IS ENTITLED;
	 
	 	(b)	 	ITS RIGHTS TO INDEMNIFICATION FROM THE OTHER PARTY UNDER PARAGRAPH 9.5; AND
	 
	 	(c)	 	ITS RIGHT TO DIRECT DAMAGES ARISING IN CONTRACT FROM A BREACH OF THE OTHER
PARTY’S OBLIGATIONS UNDER THIS AGREEMENT ARE THE SOLE REMEDIES FOR ANY DAMAGE, LOSS, OR EXPENSE ARISING OUT OF THIS AGREEMENT
OR THE SERVICES PROVIDED HEREUNDER OR CONTEMPLATED HEREBY.
	 
	 	 	 	EXCEPT AS EXPRESSLY SET FORTH IN THIS PARAGRAPH 9.6, EACH PARTY WAIVES ANY RIGHT TO
RECOVER ANY DAMAGE, LOSS OR EXPENSE ARISING OUT OF THIS AGREEMENT OR THE SERVICES
PROVIDED HEREUNDER OR CONTEMPLATED HEREBY. IN NO EVENT SHALL EITHER PARTY BE LIABLE
FOR OR HAVE ANY DUTY FOR INDEMNIFICATION OR CONTRIBUTION TO THE OTHER PARTY FOR ANY
CLAIMED INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR FOR ANY
DAMAGES CONSISTING OF DAMAGES FOR LOSS OF USE, REVENUE, PROFIT, BUSINESS OPPORTUNITIES
AND THE LIKE, OR DEPRECIATION OF VALUE OF THE AIRCRAFT, OR INSURANCE
DEDUCTIBLE, EVEN IF THE PARTY HAD BEEN ADVISED, OR KNEW OR SHOULD HAVE KNOWN, OF
THE POSSIBILITY OF SUCH DAMAGES.

	9.7	 	Survival. The provisions of Paragraphs 9.5 and 9.6 will survive the termination or
expiration of this Agreement.

	10.	 	Duration, Notification, and Termination

	10.1	 	Term. The term of the Agreement is as set forth in Section III of the Specific
Terms. The term may be extended by mutual written agreement of the Parties.

	10.2	 	Notices. All notices or other communications delivered or given under this
Agreement shall be in writing and shall be deemed to have been duly given if hand-delivered,
sent by certified or registered mail, return receipt requested, or nationally-utilized
overnight delivery service, Portable Document Format (“PDF”) or confirmed facsimile
transmission, as the case may be. Such notices shall be addressed to the Parties at the
addresses set forth in Section IV of the Specific Terms, or to such other address as may be
designated by any Party in a writing delivered to the other in the manner set forth in this
Paragraph 10.2. Notices sent by certified or registered mail shall be deemed received three
business days after being mailed. All other notices shall be deemed received on the date delivered.
Routine communications may be made by e-mail or fax to the addresses set forth therein.

 

 

	10.3	 	Default. This Agreement may be terminated immediately by the Party not in default
(without prejudice to any other rights that such Party may have) upon written notice to the
defaulting Party in the event of any of the following:

	 	(a)	 	failure of the defaulting Party to make payments due hereunder within five business
days of a notice from the non-defaulting Party that such payment was not timely made when
due;
	 
	 	(b)	 	except as provided in Paragraph 10.3(c)-(f), violation or default of any term,
obligation or condition of a non-monetary nature set forth in this Agreement, together
with a failure to cure within ten days after receipt of written notice of such violation;
	 
	 	(c)	 	breach of any material warranty or provision, or falsity of any material
representation, made by Client or CSC in connection with this Agreement.
	 
	 	(d)	 	if the Aircraft is operated or maintained in violation of any law, regulation,
directive or order of any governmental authority or in violation of any provision of any
insurance policy contemplated by this Agreement;
	 
	 	(e)	 	lapse of insurance coverage required to be kept in force by either Party; or
	 
	 	(f)	 	if CSC or any constituent of Client shall make a general assignment for the benefit
of creditors, or be declared insolvent or bankrupt under any bankruptcy, insolvency or
other similar law, or commence a voluntary proceeding seeking liquidation,
reorganization or other relief under any such law or seeking the appointment of a
receiver or liquidator over any substantial portion of their respective assets.

11. Force Majeure

	11.1	 	General. Neither Party will be deemed to be in breach of its obligations hereunder
or have any liability for any delay, cancellation, or damage arising in whole or in part from
any act of God, act of nature, acts of civil or military authority, civil unrest, war,
terrorism, strike or labor dispute, mechanical failure, lack of essential supplies or parts,
or for any cause, whether similar or dissimilar to any of the foregoing, beyond the reasonable
control of such party. The time required for any performance hereunder shall be extended by
the duration of any such event(s).

12. Liens

	12.1	 	No Liens. CSC agrees that it shall not lien or otherwise encumber, or create or
place any lien or other encumbrance of any kind whatsoever, on or against the Aircraft for any
reason. CSC also will ensure that no liens or encumbrances of any kind whatsoever are
created or placed against the Aircraft for claims against CSC or by CSC. In the event that
any mechanic’s liens or other encumbrances are created or placed against the Aircraft by a
third party, CSC shall take all necessary action to discharge such liens at Client’s expense
as quickly as possible.

 

 

	13.	 	Miscellaneous

	13.1	 	Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York. If any provision of this Agreement conflicts with any
statute or rule of law of the State of New York or is otherwise unenforceable, such
provision shall be deemed null and void only to the extent of such conflict or
unenforceability and shall be deemed separate from and shall not invalidate any other
provision of this Agreement.

	13.2	 	Headings. Captions and paragraph headings in this Agreement are inserted only as a
matter of convenience, and in no way define, limit, extend or interpret the scope of this
Agreement or of any particular section.

	13.3	 	Modification. This Agreement shall not be modified or amended or any provision
waived except by an instrument in writing signed by authorized representatives of the Parties.

	13.4	 	Legal Fees and Other Costs and Expenses. In the event of any dispute, litigation
or arbitration between the Parties with respect to the subject matter of this Agreement,
the unsuccessful Party to such dispute, litigation or arbitration shall pay to the successful
Party all costs and expenses, including, without limitation, reasonable attorneys’ fees,
incurred therein by the successful Party, all of which shall be included in and as a part of
the judgment or award rendered in such dispute, litigation or arbitration. For purposes
of this Agreement, the term “successful Party” shall mean the Party which achieves
substantially the relief sought, whether by judgment, order, settlement or otherwise.

	13.5	 	Successors and Assigns. Neither Party shall have the right to assign this
Agreement without the prior written consent of the other Party. This Agreement shall be
binding upon the Parties hereto and their respective heirs, executors, administrators,
successors and assigns, and shall inure to the benefit of the Parties hereto and their
respective heirs, executors, administrators, successors and permitted assigns.

	13.6	 	Counterparts. This Agreement may for all purposes be executed in several
counterparts, each of which shall be deemed an original, and all such counterparts, taken
together, shall constitute the same instrument, even though all Parties may not have executed
the same counterpart of this Agreement. Each Party may transmit its signature by confirmed
facsimile or PDF transmission, and such signatures shall have the same force and effect as an
original signature.

	13.7	 	Venue. Any legal action, suit or proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby may be instituted in any state or federal
court in the State of New York. Each Party waives any objection which such Party may now or
hereinafter have to the laying of the venue in Suffolk County, New
York in any such action, suit or proceeding, and irrevocably submits to the jurisdiction of any such court in
any such action, suit or proceeding.

 

 

	13.8	 	Integration. This Agreement sets forth the entire agreement between the Parties
with respect to the subject matter hereof and supersedes any and all other agreements,
understandings, communications, representations or negotiations, whether oral or
written, between the Parties with respect to the management of the Aircraft. There are no
other agreements, representations or warranties, whether oral or written, express or implied,
relating to the management of the Aircraft that are not expressly set forth in this
Agreement.

	13.9	 	No Partnership or Joint Venture. Nothing contained in this Agreement will in any way
create any partnership or joint venture relationship between CSC and Client or be construed as
evidence of the intention of the Parties to constitute such. In addition, CSC understands
and agrees that this Agreement shall not be deemed to have created any partnership or joint
venture relationship between or among any of CFD, PFD and New York Aircam or be construed as
evidence of the intention of any of CFD, PFD or New York Aircam to constitute such; provided,
however, that CFD, PFD and New York Aircam shall be jointly and severally liable for
all of the obligations of Client under this Agreement.

(signature page follows)

 

 

IN WITNESS WHEREOF, the Parties have executed this Aircraft Management Agreement as
of the Effective Date shown in Section III of the Specific Terms.

	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	 	 	 	 	 
	NEW YORK AIRCAM CORP.	 	 	 	CSC TRANSPORT, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Renzo R. Mori	 	 	 	By:	 	/s/ Thomas M. Rutledge	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 	 	Title: Vice President

	 	 	 	 	 	Title: Chief Operating Officer

	 	 
	 	 	Date: July 8, 2010

	 	 	 	 	 	Date: July 13, 2010

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	CHARLES F. DOLAN	 	 	 	PATRICK F. DOLAN	 	 
	 
	/s/ Charles F. Dolan

	 	 	 	/s/ Patrick F. Dolan	 	 
	 	 	 	 	 	 	 
	Date:

	 July 8, 2010	 	 	 	Date:	 	July 8, 2010exv10w3

Exhibit 10.3

AIRCRAFT DRY LEASE AGREEMENT

     THIS
AIRCRAFT DRY LEASE AGREEMENT is entered in effective as of July 9, 2010, by and between
NEW YORK AIRCAM CORP., a New York corporation with an address at 340 Crossways Park Drive,
Woodbury, New York 11797 (“Lessor”), and CSC TRANSPORT, INC., a Delaware corporation with an
address at 8000 Republic Airport, Hangar 5, Farmingdale, New York 11735 (“Lessee”).

W I T N E S S E T H:

     WHEREAS, Lessor is the owner of a Cessna Model 501 aircraft, manufacturer’s serial number
501-0038, United States registration N501JG (the “Aircraft”); and

     WHEREAS, the parties have agreed that Lessor shall lease the Aircraft to Lessee on a
non-exclusive basis for use by Lessee upon the terms and subject to the conditions set forth
herein.

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants,
agreements, representations and warranties set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which hereby are acknowledged, Lessor and Lessee,
intending to be legally bound, agree as follows:

     1. Lease of Aircraft.

          (a) This Lease sets forth the exclusive terms and conditions under which Lessee is entitled to
use the Aircraft, and Lessee shall have no right to use the Aircraft except as expressly set forth
herein. Lessor shall lease the Aircraft to Lessee, and Lessee shall lease the Aircraft from
Lessor, during all Lease Periods throughout the Term (as defined in Section 12) of this Lease as
provided hereunder. “Lease Periods” shall mean those times, if any, when the Aircraft is being
utilized by Lessee hereunder, with the consent of Lessor as provided in Section 1(e), for flight
operations conducted by Lessee under Part 91 of the Federal Aviation Regulations, including any
deadhead, ferry or repositioning flights to return the Aircraft to the airport at which the Lease
Period commenced or to pick up Lessee’s passengers at a remote location away from Republic Airport,
Farmingdale, New York (FRG), but excluding any deadhead, ferry and repositioning flights described
in Section 1(b) below (“Lessee Flights”). Lessee’s right to use the Aircraft hereunder during the
Term shall be non-exclusive and is subject in all respects to Lessor’s right to use the Aircraft at
all times during the Term other than during such Lease Periods under its exclusive operational
control and possession, command and control and Lessor’s right to permit other non-exclusive
lessees to use the Aircraft under their operational control and possession, command and control.

 

          (b) Notwithstanding the foregoing, the parties agree that if a trip by Lessee causes or will
cause the Aircraft to be at a remote location away from FRG (“Lessee’s Location”), Lessee shall, at
Lessor’s request, permit the Aircraft to be relocated from Lessee’s Location to FRG or other
location designated by Lessor (and thereafter shall be returned to Lessee’s Location) if Lessor
requires use of the Aircraft for one of its affiliated non-exclusive lessees, but only if such
itinerary will not unreasonably delay or interfere with any scheduled flight by Lessee. In that
event, (i) Lessee’s then-current Lease Period shall terminate effective as of initial engine
start-up for the departure flight from Lessee’s Location; (ii) Lessor or its affiliated
non-exclusive lessee shall pay all costs incurred during the period in which the Aircraft is away
from Lessee’s Location, including all occupied and deadhead legs to ferry the Aircraft from
Lessee’s Location and back; and (iii) a new Lease Period shall begin effective as of final engine
shut-down upon return of the Aircraft to Lessee’s Location.

          (c) Transfer of the Aircraft from Lessor to Lessee to commence a Lease Period hereunder, and
transfer of the Aircraft from Lessee to Lessor to terminate a Lease Period hereunder, shall be
evidenced by the entry of appropriate notations of such transfer on the Aircraft’s logs. Upon the
commencement or termination of any Lease Period hereunder, the party transferring possession of the
Aircraft shall deliver the Aircraft to the other party at FRG or such other location as the parties
may agree. In the case of a transfer of possession from Lessee to Lessor, the Aircraft shall be in
at least the same operating condition, order, repair and condition as when received by Lessee at
the commencement of the Lease Period, reasonable wear and tear excepted.

          (d) Subject to Aircraft and crew availability, Lessor shall use its good faith efforts,
consistent with Lessor’s approved policies, in order to accommodate the needs of Lessee, to avoid
conflicts in scheduling with Lessor’s affiliated non-exclusive lessees’ use of the Aircraft, and to
enable Lessee to enjoy the benefits of this Agreement; however, Lessee acknowledges and agrees that
notwithstanding anything in this Agreement to the contrary, Lessor shall have sole and exclusive
final authority over the scheduling of the Aircraft and Lessor’s other affiliated non-exclusive
lessees’ needs for the Aircraft shall take precedence over Lessee’s rights and Lessor’s obligations
under this Agreement.

          (e) Lessee shall use its best efforts to give Lessor as much notice as possible of Lessee’s
proposed utilization hereunder. If Lessee notifies Lessor pursuant to Section 14 of Lessee’s
proposed use of the Aircraft and Lessor consents thereto, the period described in such notice of
proposed use may be scheduled by Lessee (unless such intended use is cancelled by Lessee by like
notice to Lessor). Notwithstanding anything herein to the contrary, all Lessee Flights approved by
Lessor and scheduled by Lessee are subject to the absolute right of Lessor to revoke such approval
at any time prior to 24 hours before the scheduled departure of the initial flight of the approved
itinerary, without liability, upon notice to Lessee. Any notice under this Section 1(e) may be
either written or oral, but shall be given only to or by individuals designated by each party from
time to time as authorized to act on its behalf for purposes of this Section 1(e).

     2. Rent.

          (a) Lessee shall remit to Lessor the sum per block hour set forth on Schedule

2

 

1 hereto from
time to time as rent for the use of the Aircraft by Lessee during each Lease Period hereunder. For
this purpose, a “block hour” shall be measured in hours and tenths of hours from the time the
Aircraft moves for purposes of flight at the departure airport to the time the Aircraft comes to
stop at the arrival airport. Lessee’s obligation to pay rent is limited to block hours during any
Lease Period.

          (b) Not later than 30 days after the end of each calendar month during the Term, Lessee shall
provide to Lessor a statement showing all use of the Aircraft during Lease Periods during that
month, and a complete accounting detailing any rent due from Lessee for that month.
Notwithstanding anything in this Agreement to the contrary, Lessee shall have no obligation to
utilize the Aircraft hereunder, and there shall be no rent payable to Lessor hereunder with respect
to any calendar month if Lessee does not use the Aircraft hereunder during such month. All payments
of rent due for any month shall be made at Lessor’s address set forth above, or at such other place
as Lessor may designate to Lessee from time to time, not later than the 30th day of the
following month.

     3. Expenses. Lessor shall pay the entire cost of insuring and maintaining the Aircraft
during the Term. Lessee shall pay all trip-specific costs of operating the Aircraft during Lease
Periods under this Lease, including, without limitation, fuel, landing fees, parking fees, crew
travel expenses, catering, remote hangarage and other similar trip-specific expenses.

     4. Flight Crew.

          (a) Lessee shall obtain at its sole cost and expense the services of fully qualified and
properly certificated flight crew to operate the Aircraft under this Lease. All flight crew
provided by Lessee to operate the Aircraft during any Lease Period hereunder shall be employees or
contractors of Lessee, and Lessee shall be solely responsible for their compensation. Lessor shall
have the right to review and approve the credentials and work experience of any flight crewmembers
selected by Lessee to operate the Aircraft hereunder. If any such crewmember’s credentials or work
experience are unsatisfactory to Lessor in its sole and absolute discretion, Lessee, upon notice to
that effect from Lessor, shall immediately replace such crew member with another flight crew member
acceptable to Lessor.

          (b) Only fully-qualified and properly-credentialed flight crews who are included under the
insurance coverage required to be maintained hereunder shall be permitted to operate the Aircraft
during any Lease Period. All flight crew utilized by Lessee hereunder shall comply with all
applicable regulations, and the requirements of all applicable operations and maintenance manuals.
Lessee shall bear the cost of all initial and recurrent training of the flight crewmembers.

     5. Operational Control; Operations.

          (a) Lessor and Lessee intend that the lease of the Aircraft effected hereby shall
be treated as a “dry lease”. Notwithstanding anything in this Lease to the contrary, Lessee shall
have complete and exclusive operational control, and complete and exclusive possession, command and
control, of the Aircraft for all flights during each Lease Period under this Lease.

3

 

Lessee shall
have complete and absolute control of the crewmembers in preparation for and in connection with the
operation of all flights during each Lease Period under this Lease. Lessee shall have complete and
exclusive responsibility for scheduling, dispatching and flight following of the Aircraft on all
flights conducted during Lease Periods under this Lease, which responsibility includes the sole and
exclusive right over initiating, conducting and terminating any such flights. Lessee shall have no
operational control over, nor any responsibility for scheduling, dispatching or flight following
of, any flights of the Aircraft not conducted during Lease Periods under this Lease, nor any right
over initiating, conducting or terminating any such flights.

          (b) Lessee shall use and operate the Aircraft under this Lease only in accordance with
applicable manufacturers’ recommendations and airport and climatic conditions. Lessee shall not
permit the Aircraft to be maintained, used or operated in violation of any law, rule, regulation,
ordinance or order of any governmental authority having jurisdiction, or in violation of any
airworthiness certificate, license or registration relating to the Aircraft.

     6. Regulatory. Lessee shall obtain and maintain in full force and effect any
necessary certificates, licenses, permits and authorizations required for its use and operation of
the Aircraft hereunder. Lessee agrees to conduct all operations contemplated by this Lease in
compliance with all applicable provisions of the Federal Aviation Regulations, including, but not
limited to, Part 91 thereof.

     7. Records. Lessee shall maintain any records required by applicable laws, rules or
regulations in connection with the operation of the Aircraft during any Lease Period hereunder.
Without limiting the generality of the foregoing, Lessee shall maintain or cause to be maintained
flight log books showing the full flight time of the Aircraft during each Lease Period hereunder,
and shall keep such logs available for inspection by Lessor or its representatives at all
reasonable times. Lessor shall be entitled to access, upon reasonable notice to Lessee, to inspect
any books or records of Lessee that relate to the Aircraft.

     8. Base; Hangarage. Lessor agrees to provide (or cause to be provided) hangar space
for the Aircraft at FRG during the Term. While the Aircraft is at its home base, the Aircraft
shall be kept in an enclosed hangar space at all times overnight, which hangar space shall be
heated as required during cold weather for the proper maintenance, security and appearance of the
Aircraft. Lessee shall pay the cost of hangaring the Aircraft at remote locations during any Lease
Periods hereunder.

     9. Insurance. Lessor shall cause the Aircraft to be insured, at its sole cost and
expense, in accordance with the requirements of the Aircraft Management Agreement dated the date
hereof among Lessee, Lessor and the other parties specified therein (the “Aircraft Management
Agreement”). From time to time during the Term, Lessor shall, upon the request of Lessee, cause
its insurer to provide Lessee with certificates of insurance or other evidence reasonably
satisfactory to Lessee that the insurance coverage required to be furnished by Lessor
hereunder is in effect.

4

 

     10. Maintenance. Lessor shall, at its sole cost and expense, (i) enroll or cause the
Aircraft to be enrolled on an FAA-approved or manufacturer-approved maintenance and inspection
program under Part 91 of the FAR’s, and (ii) maintain or cause the Aircraft to be maintained in
accordance with the requirements of the approved maintenance and inspection
program and all applicable FAA regulations. Lessor represents and warrants that at all times
during the Term of this Agreement, the Aircraft will be in airworthy condition and current on the
approved maintenance program.

     11. Default. In addition to the termination rights set forth in Section 12, the
non-defaulting party shall have the right to terminate this Lease immediately (without prejudice to
any other rights that such party may have) upon written notice to the defaulting party in the event
of any one or more of the following Events of Default:

               (i) failure of the defaulting party to make payments due hereunder within ten days following
notice from the non-defaulting party that such payment was not timely made when due;

               (ii) except as provided in Section 11(iii) — (vii), violation or default of any material term,
obligation or condition of a non-monetary nature set forth in this Lease, together with a failure
to cure within ten days after receipt of written notice of such violation;

               (iii) if Lessee operates or maintains the Aircraft in violation of any law, regulation,
directive or order of any governmental authority or in violation of any provision of any insurance
policy contemplated by this Lease;

               (iv) if any representation or warranty made in this Lease by Lessee is or becomes false,
misleading or incorrect in any material respect;

               (v) lapse of insurance coverage required to be kept in force hereunder;

               (vi) if Lessee or Lessor shall make a general assignment for the benefit of creditors, or be
declared insolvent or bankrupt under any bankruptcy, insolvency or other similar law, or commence a
voluntary proceeding seeking liquidation, reorganization or other relief under any such law or
seeking the appointment of a receiver or liquidator over any substantial portion of its respective
assets; or

               (vii) assignment by Lessee of this Lease or any right or interest created hereunder without
the prior written consent of Lessor.

     12. Term. The term of this Lease (the “Term”) shall commence on the date hereof and,
except as otherwise provided herein, shall remain in full force and effect for an initial term that
expires on July 8, 2011. Unless and until terminated in accordance with the provisions hereof, at
the expiration of the initial term or any renewal term, this Lease shall be extended for
an additional one-year renewal term upon the same terms and conditions as set forth herein.
Notwithstanding the foregoing, either party shall have the right to terminate this Lease at any
time for any reason or for no reason upon 30 days’ prior written notice to the other party.
Further, this Lease shall terminate upon the occurrence of a total loss or destruction of the

5

 

Aircraft, damage to the Aircraft that causes it, in the opinion of Lessor, to be irreparable, or
theft of the Aircraft. Lessee shall promptly notify Lessor of any loss or damage to, or theft of,
the Aircraft during any Lease Period hereunder.

     13. Remedies on Default or Termination. In the event of a termination of this Lease,
whether as a result of a default or the expiration of its term, Lessee shall immediately cease its
use of the Aircraft and return the Aircraft and all records pertaining thereto to the custody of
Lessor or its agents or representatives as set forth herein at such airport as Lessor and Lessee
may agree. Not later than 30 days after the termination, a full accounting shall be made between
Lessee and Lessor and all accounts settled between the parties. In no event shall any termination
affect the rights and obligations of the parties arising prior to the effective date of such
termination.

     14. Cross Indemnities; LIMITATION ON LIABILITY.

     (a) Without limiting their respective obligations hereunder, each party (in each case,
the “Indemnitor”) hereby indemnifies and holds harmless the other party and its affiliates
and their respective officers, directors, partners, employees, shareholders, members and
managers (in each case, collectively, the “Indemnitee”) for any claim, damage, loss, or
reasonable expense, including reasonable attorneys’ fees (an “Indemnified Loss”), resulting
from bodily injury or property damage arising out of the ownership, maintenance or use of
the Aircraft which results from the gross negligence or willful misconduct of such party;
provided, however, that neither party will be liable for any Indemnified Loss to the
extent:

	 	(i)	 	Such loss is covered by the insurance policies described in
Section 9 (the “Policies”);
	 
	 	(ii)	 	Such loss is covered by the Policies but the amount of such
loss exceeds the policy limits specified by Lessor;
	 
	 	(iii)	 	Such loss consists of expenses incurred in connection with any
loss covered in whole or in part by the Policies but such expenses are not fully
covered by the Policies; or
	 
	 	(iv)	 	Such loss is caused by the gross negligence or willful misconduct
of the Indemnitee.

	 	(b)	 	EACH PARTY ACKNOWLEDGES AND AGREES THAT:

	 	(i)	 	THE PROCEEDS OF INSURANCE TO WHICH IT IS ENTITLED;
	 
	 	(ii)	 	ITS RIGHTS TO INDEMNIFICATION FROM THE OTHER PARTY UNDER THIS
SECTION 14; AND
	 
	 	(iii)	 	ITS RIGHT TO DIRECT DAMAGES ARISING IN CONTRACT FROM A BREACH OF THE
OTHER PARTY’S OBLIGATIONS UNDER THIS AGREEMENT

6

 

ARE THE SOLE REMEDIES FOR ANY DAMAGE, LOSS, OR EXPENSE ARISING OUT OF THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 14, EACH PARTY WAIVES ANY RIGHT TO RECOVER
ANY DAMAGE, LOSS OR EXPENSE ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR OR HAVE ANY DUTY FOR INDEMNIFICATION
OR CONTRIBUTION TO THE OTHER PARTY FOR ANY CLAIMED INDIRECT, SPECIAL, INCIDENTAL,
CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR FOR ANY DAMAGES CONSISTING OF DAMAGES FOR LOSS OF
USE, REVENUE, PROFIT, BUSINESS OPPORTUNITIES AND THE LIKE, OR DEPRECIATION OF VALUE OF THE
AIRCRAFT, OR INSURANCE DEDUCTIBLE, EVEN IF THE PARTY HAD BEEN ADVISED, OR KNEW OR SHOULD
HAVE KNOWN, OF THE POSSIBILITY OF SUCH DAMAGES.

NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, NEITHER PARTY SHALL HAVE ANY
LIABILITY TO THE OTHER PARTY FOR ITS PERFORMANCE OR FAILURE TO PERFORM ANY OF ITS
OBLIGATIONS UNDER THIS AGREEMENT (INCLUDING, WITHOUT LIMITATION, IN THE CASE OF ITS
NEGLIGENCE) EXCEPT IN THE CASE OF ITS GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

     (d) The provisions of this Section 14 shall survive the termination or expiration of
this Agreement.

     15. Notices. Unless otherwise expressly specified herein, all notices or other
communications delivered or given under this Lease shall be in writing and shall be deemed to have
been duly given if hand-delivered, sent by certified or registered mail, return receipt requested,
by nationally-utilized overnight delivery service, or by confirmed facsimile transmission. Such
notices shall be addressed to the parties at the addresses set forth above, or to such other
address as may be designated by any party in a writing delivered to the other in the manner set
forth in this Section 15. Notices shall be deemed to have been given and made on the date on which
hand-delivered or sent by confirmed facsimile, one business day following the date on which sent by
nationally-utilized overnight delivery service, or four days following the date on which sent by
certified or registered mail, return receipt requested.

     16. Relationship of Parties. The relationship of the parties created by this Lease is
strictly that of lessor and lessee. Nothing in this Lease is intended, nor shall it be construed
so as, to constitute the parties as partners or joint venturers or as principal and agent.

     17. Taxes. Lessor shall pay all taxes, assessments and charges imposed by any
Federal, state, municipal or other public authority upon or relating to the ownership of the
Aircraft during the Term of this Lease (other than any taxes, fines or penalties imposed upon
Lessor as a result of a breach of this Lease by Lessee). Lessee shall pay all taxes, assessments,

7

 

and charges imposed by any Federal, state, municipal or other public authority upon or relating to
the rental, use or operation of the Aircraft by Lessee during the Term of this Lease (including any
sales or use tax imposed by the State of New York on any lease payment hereunder), other than
income taxes of Lessor. Lessee shall also be liable for any federal excise tax imposed under
Internal Revenue Code Section 4261 if such tax is applicable to any or all amounts paid (or deemed
to be paid) by Lessee to Lessor hereunder. Lessee shall pay such tax to Lessor within thirty (30)
days after receipt of Lessor’s written invoice therefor. Each party agrees to indemnify and hold
the other harmless against any and all liabilities, costs and expenses (including attorneys’ fees)
resulting from a breach of its respective undertaking hereunder.

     18. Severability. Any provision of this Lease that is prohibited or unenforceable
shall be ineffective only to the extent of such prohibition or unenforceability. The invalidity or
unenforceability of any term or provision of this Lease shall not affect the validity or
enforceability of any other term or provision hereof.

     19. Governing Law. This Lease shall be governed by and construed in accordance with
the law of the State of New York, without regard to its choice of law rules.

     20. Amendment. This Lease may not be amended, supplemented, modified or terminated,
or any of its terms varied, except by an agreement in writing signed by each of the parties hereto.

     21. Counterparts. This Lease may be executed in counterparts, each of which shall,
for all purposes, be deemed an original and all such counterparts, taken together, shall constitute
one and the same agreement, even though all parties may not have executed the same counterpart.
Each party may transmit its signature by fax to the other party, and any faxed signature and/or
faxed counterpart of this Lease shall have the same force and effect as an original.

     22. Successors and Assigns; Third-Party Beneficiaries. This Lease shall be binding
upon the parties hereto, and their respective successors and assigns, and shall inure to the
benefit of the parties hereto and, except as otherwise provided herein, to their respective
successors and assigns. Lessee shall not sublease, assign, transfer, pledge or hypothecate the
Aircraft or any part thereof, or any of Lessee’s interest in this Lease or the Aircraft (including,
without limitation, any assignment or transfer pursuant to or as part of any merger, consolidation
or other transfer of assets), without the prior written consent of Lessor, which may be given or
withheld by Lessor in
its sole and absolute discretion. This Lease shall not be construed to create any third-party
beneficiary rights in any person not a party hereto (or a successor to or permitted assign of any
such party).

     23. Integration. This Lease sets forth the entire agreement between the parties with
respect to the lease of the Aircraft and supersedes any and all other agreements, understandings,
representations, warranties or negotiations by or between the parties with respect thereto, all of

8

 

which are hereby cancelled. There are no other agreements or representations, whether oral or
written, express or implied, with respect to the subject matter of this Lease that are not
expressly set forth in this Lease.

     24. TRUTH IN LEASING. TRUTH IN LEASING STATEMENT UNDER SECTION 91.23 OF THE FEDERAL
AVIATION REGULATIONS:

	 	(a)	 	NEW YORK AIRCAM CORP. HEREBY CERTIFIES THAT THE AIRCRAFT HAS
BEEN MAINTAINED AND INSPECTED UNDER FAR PART 91 DURING THE 12-MONTH PERIOD
PRECEDING THE DATE OF EXECUTION OF THIS AGREEMENT. THE AIRCRAFT WILL BE
MAINTAINED AND INSPECTED UNDER FAR PART 91 FOR ALL OPERATIONS TO BE CONDUCTED
DURING LEASE PERIODS UNDER THIS LEASE.
	 
	 	(b)	 	CSC TRANSPORT, INC., 8000 REPUBLIC AIRPORT, HANGAR,
FARMINGDALE, NEW YORK 11735, HEREBY CERTIFIES THAT IT IS RESPONSIBLE FOR
OPERATIONAL CONTROL OF THE AIRCRAFT DURING ALL LEASE PERIODS UNDER THIS LEASE.
	 
	 	(c)	 	EACH OF LESSOR AND LESSEE CERTIFIES THAT IT UNDERSTANDS ITS
RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.
	 
	 	(d)	 	EACH OF LESSOR AND LESSEE UNDERSTANDS THAT AN EXPLANATION OF
THE FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL AVIATION
REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT
OFFICE.

THE MAXIMUM TAKE-OFF GROSS WEIGHT OF THE AIRCRAFT IS LESS THAN OR EQUAL TO 12,500 LBS.

(SIGNATURE PAGE FOLLOWS)

9

 

     IN WITNESS WHEREOF, the parties hereto have executed this Aircraft Dry Lease Agreement
this 13 day of July, 2010, effective as of the date first above written.

	 	 	 	 	 
	 	LESSOR:

NEW YORK AIRCAM CORP.

 	 
	 	By:  	/s/
Patrick F. Dolan	 
	 	 	Name: 	Patrick F. Dolan	 
	 	 	Title:  	President	 
	 
	 	LESSEE:

CSC TRANSPORT, INC.

 	 
	 	By:  	/s/
Thomas M. Rutledge	 
	 	 	Name:  	Thomas M. Rutledge	 
	 	 	Title:  	Chief
Operating Officer	 
	 

10

 

SCHEDULE 1

RENT PER BLOCK HOUR

$650.00

S-1

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