Document:

Unassociated Document

Exhibit 10.66

 

EXECUTION COPY

 

AIRCRAFT DRY LEASE AGREEMENT

 

THIS AIRCRAFT DRY LEASE AGREEMENT is entered in effective as of November 14, 2012, by and between BRIGHID AIR, LLC, a New York limited liability company 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 CJ3 aircraft, manufacturer’s serial number  525B-0201, United States registration  N525NY (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).

 

  

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2.           Rent.

 

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

 

  

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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.  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.

 

  

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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.

 

  

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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 December 31, 2012.  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 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.

 

  

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(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

 

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.

 

  

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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, 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).

 

  

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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 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 13,870 LBS.

 

(SIGNATURE PAGE FOLLOWS)

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Aircraft Dry Lease Agreement this 14th day of November, 2012, effective as of the date first above written.

 

	 	
LESSOR:

	 
	 	 	 
	 	
BRIGHID AIR, LLC

	 
	 	 	 	 
	 	
By: 

	/s/	Renzo R. Mori	 

	 	 	Name: 	Renzo R. Mori	 
	 	 	Title:	VP	 

 

	 	
LESSEE:

	 
	 	 	 
	 	
CSC TRANSPORT, INC

	 
	 	 	 	 
	 	
By: 

	/s/ James Nuzzo	 

	 	 	Name: 	James Nuzzo	 
	 	 	Title:	EVP, Business Planning	 

  

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SCHEDULE 1

 

RENT PER BLOCK HOUR

 

$1650.00

 

 

S-1Unassociated Document

Exhibit 10.67

 

AIRCRAFT SUPPORT SERVICES AGREEMENT

THIS AIRCRAFT SUPPORT SERVICES 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 Brighid Air, LLC, a New York limited liability company (“Brighid Air”), PATRICK F. DOLAN (“PFD”) and CHARLES F. DOLAN (“CFD”), each with an address at 340 Crossways Park Drive, Woodbury, New York 11771 (Brighid Air,  PFD and CFD are collectively referred to herein as “Client”)

 

CSC will act as  Client’s agent to support Client’s operation of the 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 CJ3

 

	 	●	
Manufacturer’s Serial Number:

	
525B-0201

 

	 	●	
Aircraft Registration Number:

	
N525NY

	
II.

	
Agency Fee

                     

	 	
Monthly Agency Fee: 

	
$3,000

	
III.

	
Term

 

	 	
Effective Date:

	
January 1, 2013

 

	 	
Expiration Date:

	
December 31, 2013

 

	
IV. 

	
Notices

 

	
To Client:

	
To CSC:

	 	 
	
Brighid Air, LLC

	
CSC Transport, Inc.

	
340 Crossways Park Drive

	
8000 Republic Airport, Hangar 5

	
Woodbury, New York 11797

	
Farmingdale, New York 11735

	
Attention:

	
Renzo R. Mori

	
Attention: Phil Stang

	
Telephone:

	
(516) 803-9203

	
Telephone:

	
(516) 803-5904

	
Fax:

	
(516) 364-4592

	
Fax:

	
(516) 694-6923

	
E-mail:

	
rmori@dfollc.com

	
E-mail:

	
pstang@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. 

	
Support

 

	
1.1

	
Pilots.  The parties acknowledge that the primary pilot for the Aircraft  (the “Primary Pilot”) shall be employed and supervised by Client.  The Primary Pilot shall also from to time perform scheduling of the Aircraft, oversee maintenance of the Aircraft and perform certain other administrative services.  CSC shall perform such services as set forth below to the extent not performed by the Primary Pilot, or upon the request of the Client.

 

	
1.2

	
Support Services.  In consideration of the fees paid by Client, CSC will act as Client’s agent to perform the following functions on behalf of Client:

 

	
  

	
(a)

	
Employment or engagement and supervision of flight (for PFD and CFD) and maintenance personnel for the Aircraft, other than the Primary Pilot.

	
  

	
(b)

	
Aircraft maintenance at the Operating Base, maintenance coordination 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)

	
Supervision, on behalf of Client, of the operation and maintenance of the Aircraft by Client.

 

  

  

  

 

	
1.3 

	
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.

 

	
1.4 

	
Operational Control.  It is understood that Brighid Air leases the Aircraft to PFD and CFD 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 PFD or CFD is using the Aircraft under the Leases, PFD or CFD will have and retain exclusive operational control, and exclusive   possession, command and control, of the Aircraft.  PFD or CFD 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.  PFD or CFD 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 (other than the Primary Pilot)  may be independent contractors or employees of CSC.  Each Pilot which is an employee of CSC shall enter into a Pilot Agency Agreement/Acknowledgement with Client. 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 PFD or CFD under this Agreement, which shall be paid in accordance with     Paragraph 8.5.  CSC shall be responsible for and shall timely pay and withhold all payroll and employment related taxes and otherwise fulfill all duties under applicable law with respect to its employees.  The cost of Flight Support Personnel who are provided by    independent contractors will be the responsibility of Client for flights operated by PFD or CFD 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 PFD or CFD 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.

 

  

  

  

 

	
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.  On Client’s behalf, 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.  On behalf of Client, 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

	
Agency Fee.  The monthly Agency 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; Taxes.  Client shall pay directly the cost of the insurance coverage required to be maintained by Client under Paragraph 9.  Client shall be responsible for the payment of any Federal, state, local or other governmental taxes, charges or assessments imposed in connection with this Agreement, other than income or franchise taxes imposed on CSC, and shall reimburse Client for any such tax, charge or assessment which is imposed on it by any governmental agency.

 

	
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 October 31, 2012, 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 PFD, CFD and  Brighid Air in accordance with Client’s written instructions (it being understood and agreed that PFD, CFD and  Brighid Air 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 primary liability coverage of not less than $25,000,000 for each occurrence.  Client will cause its affiliates to procure and maintain insurance that affords Client not less than $200,000,000 of liability coverage in respect of CSC’s liability under the terms hereof.

 

	
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 support services for the Aircraft. There are no other agreements, representations or warranties, whether oral or written, express or implied, relating to the support services for 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 either of PFD, CFD or Brighid Air or be construed as evidence of the intention of either of PFD, CFD or Brighid Air to constitute such; provided, however, that PFD, CFD and Brighid Air 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 Support Services Agreement as of the Effective Date shown in Section III of the Specific Terms.

 

	
Brighid Air, LLC

	 	
CSC TRANSPORT, INC.

	 	 	 	 
	
By:

	/s/ Renzo R. Mori	 	By: 	/s/ James Nuzzo
	 	 	 
	
Name: Renzo R. Mori

	 	
Name:

	 	 	 
	
Title: VP

	 	
Title:

	 	 	 
	
PATRICK F. DOLAN

	 	  
	 	 	  
	/s/ Patrick F. Dolan	 	 
	 	 	 
	
Date:

	 	  
	  	 	  
	
CHARLES F. DOLAN

	 	  
	 	 	  
	/s/ Charles F. Dolan	 	 
	 	 	 
	
Date:

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