Document:

Exhibit
10.1

 

FIFTH
AMENDMENT TO

FOURTH AMENDED AND RESTATED LOAN AGREEMENT

 

THIS FIFTH AMENDMENT TO FOURTH AMENDED AND RESTATED
LOAN AGREEMENT (this “Amendment”) is made and entered into as of the
24th day of June, 2003 by and among WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, a
national banking association formerly known as Wells Fargo Bank (Texas),
National Association (the “Bank”), FOSSIL PARTNERS, L.P. (the “Borrower”),
FOSSIL,
INC. (the “Company”), FOSSIL INTERMEDIATE, INC. (“Fossil
Intermediate”), FOSSIL TRUST (“Fossil Trust”), FOSSIL
STORES I, INC. (“Fossil I”) and FOSSIL STORES II, INC. (“Fossil
II”) (the Company, Fossil Intermediate, Fossil Trust, Fossil I and Fossil
II are sometimes referred to herein individually as a “Guarantor” and
collectively as the “Guarantors”).

 

RECITALS

 

WHEREAS, the Bank, the Borrower and the Guarantors are
parties to that certain Fourth Amended and Restated Loan Agreement, dated as of
June 28, 1999, as amended by that certain First Amendment to Fourth Amended and
Restated Loan Agreement, dated as of June 27, 2000, that certain Second
Amendment to Fourth Amended and Restated Loan Agreement, dated as of
June 26, 2001, that certain Third Amendment to Fourth Amended and Restated
Loan Agreement, dated as of  November
14, 2001, and that certain Fourth Amendment to Fourth Amended and Restated Loan
Agreement, dated as of June 25, 2002 (as amended, the “Agreement”);

 

WHEREAS, the Bank, the Borrower and the Guarantors
desire to amend the Agreement and the other Loan Documents as herein set forth.

 

NOW, THEREFORE, in consideration of the premises
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound, agree as follows:

 

ARTICLE I

Definitions

 

1.01         Capitalized terms used in this
Amendment are defined in the Agreement, as amended hereby, unless otherwise
stated.

 

ARTICLE II

Amendments

 

2.01         Amendment to Section 1.  Effective as of the date hereof, the second
sentence of Section 1 of the Agreement is hereby amended by deleting the
words “Fourteenth Amended and Restated Master Revolving Credit Note” and
substituting in lieu thereof the words “Fifteenth Amended and Restated Master
Revolving Credit Note”.

 

 

2.02         Amendment
to Section 2.  Effective as of the
date hereof, Section 2 of the Agreement is hereby amended by deleting it
in its entirety and substituting the following in lieu thereof:

 

“2.           Documentary
and Stand-by Letters of Credit. 
Subject to the conditions herein, the Bank shall (a) from time to time,
at the request of the Borrower, issue documentary or stand-by letters of
credit to Borrower’s vendors for the acquisition of inventory for the Borrower
(the “Inventory Acquisition Letters of Credit”) and (b) issue a stand-by
letter of credit in an aggregate amount up to ¥486,000,000.00 in favor of any
Japanese domestic bank for the account of the Borrower (the “JDB Letter of
Credit”) (the Inventory Acquisition Letters of Credit and the JDB Letter of
Credit are hereinafter collectively referred to as the “Documentary or
Stand-by Letters of Credit”).  The
fees for issuance of all Inventory Acquisition Letters of Credit shall be in
accordance with the Bank’s schedule of fees for issuance of letters of credit
existing as of the time of issuance.  No
fees shall be charged directly by Bank to Borrower in connection with the
issuance of the JDB Letter of Credit. 
Immediately upon issuance, such Documentary and Stand-by Letters
of Credit shall be considered in computing the amount of funds available to the
Borrower, as provided in Section 5 herein.  The Bank shall not be obligated: (x) to issue any Documentary or
Stand-by Letter of Credit if the issuance of same would cause the
Outstanding Revolving Credit to exceed the Total Commitment; (y) to issue any
Documentary or Stand-by Letter of Credit with an expiration date that is more
than one hundred eighty (180) days after the maturity date of the Revolving
Note; or (z) to extend the expiration date of any Documentary or Stand-by
Letter of Credit to a date that is more than one hundred eighty (180) days
after the maturity date of the Revolving Note. 
If any Documentary or Stand-by Letters of Credit are outstanding on the
maturity date of the Revolving Credit Note, the Borrower shall deposit with the
Bank, as cash collateral, an amount equal to the undrawn face amount of all
such Documentary or Stand-by Letters of Credit then outstanding (such cash
collateral to be maintained in a deposit account at Bank pursuant to
documentation in form and substance mutually acceptable to the Borrower and
Bank).

 

2.03         Amendment
to Section 16.  Effective as of the
date hereof, Section 16 of the Agreement is hereby amended by deleting
the notice address for the Bank in its entirety and substituting the following
in lieu thereof:

 

	
  “if to the Bank:

  	
  Wells Fargo Bank
  Texas,

  National Association

  1445 Ross Avenue, 3rd Floor

  MAC 75303-031

  Dallas, Texas  75202

  Attention: Susan K. Nugent

  

 

2

 

	
  with a copy to:

  	
  Patton Boggs LLP

  2001 Ross Avenue

  Suite 3000

  Dallas, Texas 75201

  Attention:  Robert Jeffery Cole”

  

 

ARTICLE III

Conditions Precedent

 

3.01         Conditions to Effectiveness.  The effectiveness of this Amendment is
subject to the satisfaction of the following conditions precedent, unless
specifically waived in writing by the Bank:

 

(a)           The
Bank shall have received the following documents, each in form and substance
satisfactory to the Bank and its counsel:

 

(i)            This
Amendment, duly executed by the Borrower and the Guarantors (except as provided
in Section 5.05 hereof); and

 

(ii)           A
Fifteenth Amended and Restated Master Revolving Credit Note in the form of Exhibit A
to this Amendment (hereinafter, the “Revolving Note”), duly executed by
the Borrower.

 

(b)           There
shall have been no material adverse change in the financial condition of the
Borrower or any Guarantor;

 

(c)           There
shall be no material adverse litigation, either pending or threatened, against
the Borrower or any Guarantor that could reasonably be expected to have a material
adverse effect on the Borrower or such Guarantor;

 

(d)           The
representations and warranties contained herein and in the Agreement and the
other Loan Documents, as each is amended hereby, shall be true and correct as
of the date hereof, as if made on the date hereof;

 

(e)           No
default or Event of Default shall have occurred and be continuing, unless such
default or Event of Default has been specifically waived in writing by the
Bank;

 

(f)            All
corporate proceedings taken in connection with the transactions contemplated by
this Amendment and all documents, instruments and other legal matters incident
thereto shall be satisfactory to the Bank and its legal counsel; and

 

3

 

(g)           The
Bank shall have received from the Company or the Borrower, as appropriate, all
fees and expenses (if any) required to be paid to the Bank pursuant to the
Agreement, as amended hereby.

 

ARTICLE IV

No Waiver

 

4.01         Nothing contained herein shall be
construed as a waiver by the Bank of any covenant or provision of the
Agreement, the other Loan Documents, this Amendment, or of any other contract
or instrument between the Borrower and/or the Guarantors and the Bank, and the
failure of the Bank at any time or times hereafter to require strict performance
by the Borrower and/or any Guarantor of any provision thereof shall not waive,
affect or diminish any right of the Bank to thereafter demand strict compliance
therewith.  The Bank hereby reserves all
rights granted under the Agreement, the other Loan Documents, this Amendment
and any other contract or instrument between the Borrower and/or the Guarantors
and the Bank.

 

ARTICLE V

Ratifications, Representations and Warranties,
Covenants

 

5.01         General Ratifications.  The terms and provisions set forth in this
Amendment shall modify and supersede all inconsistent terms and provisions set
forth in the Agreement and the other Loan Documents, and, except as expressly
modified and superseded by this Amendment, the terms and provisions of the
Agreement and the other Loan Documents are ratified and confirmed and shall
continue in full force and effect.  The
parties hereto agree that the Agreement and the other Loan Documents, as
amended hereby, shall continue to be legal, valid, binding and enforceable in
accordance with their respective terms.

 

5.02         Ratification of Guaranties.  Each of the Guarantors hereby acknowledges
and consents to all of the terms and conditions of this Amendment and the
Revolving Note and hereby ratifies and confirms the Guaranty Agreement to which
it is a party to or for the benefit of the Bank.  Each of the Guarantors hereby represents and acknowledges that it
has no claims, counterclaims, offsets, credits or defenses to the Loan
Documents or the performance of its obligations thereunder.  Furthermore, each Guarantor agrees that
nothing contained in this Amendment or the Revolving Note shall adversely
affect any right or remedy of the Bank under the Guaranty Agreement to which
such Guarantor is a party.  Each
Guarantor hereby agrees that with respect to the Guaranty Agreement to which it
is a party, all references in such Guaranty Agreement to the “Guaranteed
Obligations” shall include, without limitation, the obligations of Borrower to
Bank under the Agreement, as amended hereby, and under the Revolving Note.  Each Guarantor hereby also agrees that with
respect to the Guaranty Agreement to which it is a party, (i) all
references in such Guaranty Agreement to “First Interstate Bank of Texas, N.A.”
shall be deemed references to “Wells Fargo Bank Texas, National Association”
and (ii) the Bank’s notice address shall be amended to read “Wells Fargo Bank
Texas, National Association, 1445 Ross Avenue, 3rd Floor, MAC
75303-031, Dallas, Texas  75202”.  Finally, each of the Guarantors hereby
represents and acknowledges that the execution and delivery of this Amendment
and the other Loan Documents executed in connection herewith shall in no way

 

4

 

change or modify its obligations as a guarantor, debtor, pledgor,
assignor, obligor and/or grantor under its respective Guaranty Agreement
(except as specifically provided in this Section 5.02) and shall not
constitute a waiver by the Bank of any of the Bank’s rights against such
Guarantor.

 

5.03         Ratification of Security Interests.  The Company hereby agrees that the Stock
Pledge Agreement is hereby expressly amended such that the definition of
“Secured Obligations” contained therein includes, without limitation, all
indebtedness and other obligations of Borrower now or hereafter existing
hereunder the Agreement, as amended hereby, the Revolving Note and the other
Loan Documents, as amended hereby. 
Furthermore, the Company hereby ratifies and reaffirms its obligations
under the Stock Pledge Agreement, as the same is amended hereby, and represents
and acknowledges that the Stock Pledge Agreement is not subject to any claims,
counterclaims, defenses or offsets.  The
Company hereby also agrees that all references in the Stock Pledge Agreement to
“First Interstate Bank of Texas, N.A.” shall be deemed references to “Wells
Fargo Bank Texas, National Association.” 
Finally, the Company hereby represents and acknowledges that the
execution and delivery of this Amendment and the other Loan Documents executed
in connection herewith shall in no way change or modify its obligations as a
debtor, pledgor, assignor, obligor and/or grantor under the Stock Pledge
Agreement (except as specifically provided this Section 5.03) and shall
not constitute a waiver by the Bank of any of the Bank’s rights against the
Company.

 

5.04         Representations and Warranties.  The Borrower and each of the Guarantors
hereby jointly and severally represent and warrant to the Bank that (a) the
execution, delivery and performance of this Amendment and any and all other
Loan Documents executed and/or delivered in connection herewith have been duly
authorized by all requisite corporate, partnership or trust proceedings, as
appropriate, and will not contravene, or constitute a default under, any
provision of applicable law or regulation or of the Agreement of Limited
Partnership, Articles of Incorporation, By-Laws or Trust Agreement, as
applicable, of the Borrower or any Guarantor, or of any mortgage, indenture,
contract, agreement or other instrument, or any judgment, order or decree,
binding upon the Borrower or any Guarantor; (b) the representations and
warranties contained in the Agreement and the other Loan Documents, as amended
hereby, are true and correct on and as of the date hereof and on and as of the
date of execution hereof as though made on and as of each such date; (c) no
default or Event of Default under the Agreement, as amended hereby, has
occurred and is continuing, unless such default or Event of Default has been
specifically waived in writing by the Bank; and (d) the Borrower and the
Guarantors are in full compliance with all covenants and agreements contained
in the Agreement and the other Loan Documents, as amended hereby.

 

5.05         Covenants.  In addition to any covenants and agreements
contained in the Agreement, Borrower hereby agrees to cause each Guarantor to
deliver, within sixty days after the date of this Amendment, to the Bank the
documents and materials indicated below (each of which shall be in form and
substance satisfactory to Bank, in its sole discretion):

 

(a)        this
Amendment, duly executed by the Guarantors; and

 

(b)        a
General Certificate of each Guarantor, (i) attaching a copy of any amendments
to Guarantor’s constituent organizational documents, if any, (ii) acknowledging
that 

 

5

 

such Guarantor’s
Board of Directors or other governing body, as applicable, has met and has
adopted, approved, consented to and ratified resolutions which authorize the
execution, delivery and performance by such Guarantor of this Amendment and all
Loan Documents to which such Guarantor is or is to be a party, (iii) providing
the names of the officers of such Guarantor authorized to sign this Amendment
and each of the Loan Documents to which such Guarantor is or is to be a party
hereunder (including the certificates contemplated herein) together with
specimen signatures of such officers and (iv) containing a representation as to
such Guarantor’s existence, good standing and/or authority to transact business
in the state in which such or Guarantor was incorporated and in each other
state in which Guarantor is required to be qualified;

 

provided, however, the failure to
deliver the documents and materials indicated above within sixty days from the
date of this Amendment shall constitute an immediate Event of Default under the
Agreement.

 

ARTICLE VI

Miscellaneous Provisions

 

6.01         Survival of Representations and
Warranties.  All representations and
warranties made in the Agreement or any other Loan Documents, including,
without limitation, any document furnished in connection with this Amendment,
shall survive the execution and delivery of this Amendment and the other Loan
Documents to be executed in connection herewith, and no investigation by the
Bank or any closing shall affect the representations and warranties or the
right of the Bank to rely upon them.

 

6.02         Reference to Agreement.  Each of the Agreement and the other Loan
Documents, and any and all other agreements, documents or instruments now or
hereafter executed and delivered pursuant to the terms hereof or pursuant to
the terms of the Agreement, as amended hereby, are hereby amended so that any
reference in the Agreement and such other Loan Documents to the Agreement,
shall mean a reference to the Agreement, as amended hereby.

 

6.03         Expenses of the Bank.  As provided in the Agreement, the Borrower
agrees to pay on demand all reasonable costs and expenses incurred by the Bank
in connection with the preparation, negotiation, and execution of this
Amendment and the other Loan Documents executed pursuant hereto and any and all
amendments, modifications, and supplements hereto or thereto, including,
without limitation, the costs and fees of the Bank’s legal counsel, and all
costs and expenses incurred by the Bank in connection with the enforcement or
preservation of any rights under the Agreement or any other Loan Document, in
each case as amended hereby, including, without, limitation, the costs and fees
of the Bank’s legal counsel.

 

6.04         Severability.  Any provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

 

6

 

6.05         Successors and Assigns.  This Amendment is binding upon and shall
inure to the benefit of the Borrower, the Guarantors and the Bank and their
respective successors and assigns.

 

6.06         Counterparts.  This Amendment may be executed in one or
more counterparts, each of which when so executed shall be deemed to be an
original, but all of which when taken together shall constitute one and the
same instrument.

 

6.07         Effect of Waiver.  No consent or waiver, express or implied, by
the Bank to or for any breach of or deviation from  any covenant or condition by the Borrower or any Guarantor shall
be deemed a consent to or waiver of any other breach of the same or any other
covenant, condition or duty.

 

6.08         Headings.  The headings, captions and arrangements used
in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

 

6.09         Applicable Law.  THIS AMENDMENT AND ALL OTHER AGREEMENTS
EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE
PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS.

 

6.10         Final Agreement.  THE AGREEMENT AND THE OTHER LOAN DOCUMENTS,
EACH AS AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH
RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS
EXECUTED.  THE AGREEMENT AND THE OTHER
LOAN DOCUMENTS, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.  NO MODIFICATION,
RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY PROVISION OF THIS AMENDMENT
SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY THE BORROWER, THE
GUARANTORS AND THE BANK.

 

6.11         AGREEMENT FOR BINDING ARBITRATION.  The parties agree to be bound by the terms
and provisions of the Bank’s current Arbitration Program which is incorporated
herein by reference and is acknowledged as received by the parties pursuant to
which any and all disputes shall be resolved by mandatory binding arbitration
upon the request of any party.

 

 

[Remainder of page
intentionally left blank.]

 

7

 

IN WITNESS
WHEREOF, this Amendment has been executed and is effective as of the date first
above-written.

 

	
   

  	
  “BANK”

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK
  TEXAS,
  NATIONAL ASSSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Susan K. Nugent,

  
	
   

  	
   

  	
  Relationship
  Manager/Banking Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  “BORROWER”

  
	
   

  	
   

  	
   

  
	
   

  	
  FOSSIL PARTNERS,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Fossil, Inc., its general partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Randy S. Kercho,

  
	
   

  	
   

  	
  Executive Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “GUARANTORS”

  
	
   

  	
   

  	
   

  
	
   

  	
  FOSSIL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Randy S. Kercho,

  	
   

  
	
   

  	
   

  	
  Executive Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FOSSIL
  INTERMEDIATE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Mike Kovar,
  Treasurer

  

 

Fifth Amendment to Loan
Agreement

 

 

	
   

  	
  FOSSIL TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Mike Kovar,
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FOSSIL STORES I,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Mike Kovar,
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FOSSIL STORES
  II, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Mike Kovar,
  Treasurer

  

 

 

Exhibit:

 

A - Revolving Note

 

 

EXHIBIT A

 

FORM OF REVOLVING NOTE

 

(See Attached)

 

EXHIBIT AAIRCRAFT HANGAR FACILITY

LEASE AGREEMENT

 

 

Between

 

Metropolitan Airports
Commission

Minneapolis-St. Paul

 

And

 

Mesaba Aviation, Inc.

 

 

 

September 2002

 

 

Lease Summary

 

	
  Type of
  Agreement

  	
   

  	
  Aircraft Hangar Facility Lease

  
	
  Tenant

  	
   

  	
  Mesaba Aviation, Inc. (d/b/a Mesaba Airlines)

  
	
  Representative

  	
   

  	
  Robert E. Weil

  
	
  Phone

  	
   

  	
  612-713-6308

  
	
  FAX

  	
   

  	
  612-726-1568

  
	
  E-Mail

  	
   

  	
  Weil_Bob@mesaba.com

  
	
  Mesaba 

  Notice Address

  	
   

  	
  Mesaba
  Aviation, Inc.

  7501 – 26th Avenue

  South  Minneapolis, MN 55450

  
	
  MAC
  Representative

  	
   

  	
  Eric Johnson

  
	
  Phone

  	
   

  	
  612-725-8322

  
	
  FAX

  	
   

  	
  612-970-9600

  
	
  E-mail

  	
   

  	
  Ejohnson@mspmac.org

  
	
  MAC

  Notice Address

  	
   

  	
  Attn: Comm. Mgmt. & Airline Affairs

  6040 28th Avenue South

  Minneapolis, MN  55450

  
	
  Effective Date

  	
   

  	
  September      , 2002

  
	
  Term

  	
   

  	
  25 years from DBO

  
	
  Expiration

  	
   

  	
  25 years from DBO

  
	
  Leased Premises

  	
   

  	
  10.36 acres

  
	
  Rent

  	
   

  	
  $1,328,686.00 annually (to be reconciled to actual
  after construction complete)

  
	
  Rental Increases

  	
   

  	
  Ground rent only based ordinance change

  
	
  Utilities

  	
   

  	
  Mesaba

  
	
  Maintenance

  	
   

  	
  Mesaba responsible for all maintenance with the
  exception of ramp maintenance which will be done by MAC

  
	
  Authorized
  Use(s)

  	
   

  	
  Maintenance and operation of Mesaba aircraft,
  storage of equipment, administrative offices, and vehicle maintenance as part
  of operations on the Airport.

  
	
  Minimum
  Insurance

  	
   

  	
  Commercial General Liability $100 million

  Property Damage Liability $100 million

  Workers’ Compensation $100,000

  

 

Note:  This Lease Summary is presented as a reference of the
Lease information at the time of execution.  
If there is a discrepancy between the information contained in this Lease
Summary
and the requirements contained in the remainder of this Lease, the requirements
as stated in the remainder of this Lease will be applied.

 

2

 

Metropolitan
Airports Commission

AIRCRAFT
HANGAR FACILITY LEASE AGREEMENT

 

Table
of Contents

 

 

	
  ARTICLE I

  	
   

  	
  SPECIAL TERMS
  AND CONDITIONS

  
	
   

  	
  1.

  	
   

  	
  DEFINITIONS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
   

  	
  LEASED PREMISES

  
	
   

  	
   

  	
   

  	
  A.         Exclusive Ground Area

  
	
   

  	
   

  	
   

  	
  B.         Preferential Use Leased Premises

  
	
   

  	
   

  	
   

  	
  C.         Building Improvements

  
	
   

  	
   

  	
   

  	
  D.         Future Development

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
   

  	
  EFFECTIVE DATE AND TERM

  
	
   

  	
   

  	
   

  	
  A.         Effective Date

  
	
   

  	
   

  	
   

  	
  B.         Term

  
	
   

  	
   

  	
   

  	
  C.         Holdover

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
   

  	
  RENTAL FEES AND CHARGES

  
	
   

  	
   

  	
   

  	
  A.         Ground
  Rent

  
	
   

  	
   

  	
   

  	
  B.         Revision of Ground Rent

  
	
   

  	
   

  	
   

  	
  C.         Site Improvement Costs

  
	
   

  	
   

  	
   

  	
  D.         Facilities Rent

  
	
   

  	
   

  	
   

  	
  E.          Snow Removal,
  Maintenance and Repair

  
	
   

  	
   

  	
   

  	
  F.          Reserve Requirement

  
	
   

  	
   

  	
   

  	
  G.         Late Fee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
   

  	
  AUTHORIZED USE

  
	
   

  	
   

  	
   

  	
  A.         Leased Premises

  
	
   

  	
   

  	
   

  	
  B.         Fueling

  
	
   

  	
   

  	
   

  	
  C.         Aircraft Deicing

  
	
   

  	
   

  	
   

  	
  D.         Maintenance of Other Aircraft

  
	
   

  	
   

  	
   

  	
  E.          Noise

  
	
   

  	
   

  	
   

  	
  F.          Storage

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.

  	
   

  	
  TITLE TO IMPROVEMENTS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.

  	
   

  	
  CONSTRUCTION AND
  FINANCIAL COMMITMENT

  
	
   

  	
   

  	
   

  	
  A.         Project

  
	
   

  	
   

  	
   

  	
  B.         Design and Construction

  
	
   

  	
   

  	
   

  	
  C.         Construction Fund

  
	
   

  	
   

  	
   

  	
  D.         Maximum Amount to be Financed

  
	
   

  	
   

  	
   

  	
  E.          Finishes and Equipment
  Provided by Mesaba

  

 

3

 

	
   

  	
  8.

  	
   

  	
  CONSENTS,
  APPROVALS, AND NOTICES

  
	
   

  	
   

  	
   

  	
  A.         Consent

  
	
   

  	
   

  	
   

  	
  B.         Notice

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.

  	
   

  	
  MAINTENANCE
  OF LEASED PREMISES AND IMPROVEMENTS

  
	
   

  	
   

  	
   

  	
  A.         Maintenance by MAC and Mesaba

  
	
   

  	
   

  	
   

  	
  B.         Condition of Leased Premises

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.

  	
   

  	
  BUILDING CONSTRUCTION, REPAIRS,
  SECURITY FOR LIENS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.

  	
   

  	
  INDEMNIFICATION AND
  INSURANCE

  
	
   

  	
   

  	
   

  	
  A.         Indemnification

  
	
   

  	
   

  	
   

  	
  B.         Property Insurance on Buildings

  
	
   

  	
   

  	
   

  	
  C.         Insurance

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.

  	
   

  	
  ENVIRONMENTAL

  
	
   

  	
   

  	
   

  	
  A.         Definitions

  
	
   

  	
   

  	
   

  	
  B.         Indemnification

  
	
   

  	
   

  	
   

  	
  C.         Compliance with Environmental Laws

  
	
   

  	
   

  	
   

  	
  D.         Claims Relating to
  Environmentally Regulated Substances

  
	
   

  	
   

  	
   

  	
  E.          Testing and Reports

  
	
   

  	
   

  	
   

  	
  F.          Notification

  
	
   

  	
   

  	
   

  	
  G.         Right to Investigate

  
	
   

  	
   

  	
   

  	
  H.         Right to Take Action

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.

  	
   

  	
  TANKS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.

  	
   

  	
  UTILITIES

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.

  	
   

  	
  MAC TO OPERATE AIRPORTS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.

  	
   

  	
  PUBLIC
  DATA

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  17.

  	
   

  	
  FUTURE LEASES

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  18.

  	
   

  	
  SIGNS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  19.

  	
   

  	
  BANKRUPTCY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.

  	
   

  	
  MAC’S RIGHT UPON DEFAULT

  
	
   

  	
   

  	
   

  	
  A.         Events of Default

  
	
   

  	
   

  	
   

  	
  B.         Remedies

  

 

4

 

	
   

  	
  21.

  	
   

  	
  TERMINATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  22.

  	
   

  	
  CONDEMNATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  23.

  	
   

  	
  QUIET ENJOYMENT

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  24.

  	
   

  	
  THE RIGHT TO AUDIT

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  25.

  	
   

  	
  NONDISCRIMINATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  26.

  	
   

  	
  CIVIL
  RIGHTS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  27.

  	
   

  	
  GENERAL
  PROVISIONS

  
	
   

  	
   

  	
   

  	
  A.         Memorandum of Agreement

  
	
   

  	
   

  	
   

  	
  B.         Waiver of Breach

  
	
   

  	
   

  	
   

  	
  C.         Commitments to Federal or State Agencies

  
	
   

  	
   

  	
   

  	
  D.         Sublease or Assignment

  
	
   

  	
   

  	
   

  	
  E.          Taxes and Other Charges

  
	
   

  	
   

  	
   

  	
  F.          Headings

  
	
   

  	
   

  	
   

  	
  G.         Severability

  
	
   

  	
   

  	
   

  	
  H.         Compliance with Laws

  
	
   

  	
   

  	
   

  	
  I.           Authority of MAC and Executive Director

  
	
   

  	
   

  	
   

  	
  J.          Attorney’s
  Fees

  
	
   

  	
   

  	
   

  	
  K.         Minnesota
  Law

  
	
   

  	
   

  	
   

  	
  L.          Entire Agreement

  

 

	
  Exhibit A

  	
   

  	
  Leased Premises

  
	
  Exhibit B

  	
   

  	
  Building and Facility Improvements

  
	
  Exhibit C

  	
   

  	
  Rental Fees and Charges

  
	
  Exhibit D

  	
   

  	
  Maintenance Responsibility Matrix

  
	
  Exhibit E

  	
   

  	
  Aircraft Deicing Field Rule

  
	
  Exhibit F

  	
   

  	
  Beneficial Occupancy Certificate

  
	
  Exhibit G

  	
   

  	
  Mesaba Hangar Project Budget Summary

  
	
  Exhibit H

  	
   

  	
  Mesaba Aviation, Inc. Agreement for Termination of
  Facilities Lease and Operating Agreement and First Amendment

  

 

5

 

AIRCRAFT HANGAR
FACILITY LEASE AGREEMENT

 

 

This Agreement, dated this 30th day of September, 2002 between the
Metropolitan Airports Commission, a public corporation of the State of
Minnesota (“MAC”), and Mesaba Aviation, Inc. (d/b/a/ Mesaba Airlines), a
corporation of the State of Minnesota (“Mesaba”).

 

WHEREAS, MAC owns and operates the Minneapolis-St. Paul International
Airport (“Airport”) located in Hennepin County, Minnesota; and

 

WHEREAS, MAC is in the process of constructing Runway 17-35 to
accommodate the increased flight activity on the Airport; and

 

WHEREAS, the runway construction necessitated MAC and Mesaba to enter
into an Agreement for Termination of Facilities Lease and Operating Agreement
dated June 27, 2001 (“Termination Agreement”) to terminate the Facilities
Lease and Operating Agreement dated April 18, 1988, as amended; and

 

WHEREAS, simultaneous with the execution of this
Agreement, the parties agree to amend the Termination Agreement to modify the
termination date from January 1, 2003 to September 30, 2003; and

 

WHEREAS, Mesaba has a
need for new facilities on the Airport, to replace the facilities being removed
for the construction of Runway 17-35 and to accommodate the growth in Mesaba’s
operations at the Airport; and

 

WHEREAS, MAC will finance and construct a facility to lease to Mesaba
for storage and maintenance of aircraft and related administrative functions in
support of Mesaba’s on-airport airline activity; and

 

WHEREAS, MAC will construct a Preferential Use Aircraft Parking Area
and associated common taxilanes, taxiways and related areas to be used in
conjunction with Mesaba’s facilities.

 

NOW THEREFORE, it is mutually agreed, in consideration of rents to be
paid by Mesaba and the mutual undertakings of the parties hereto, as follows:

 

6

 

ARTICLE I —
SPECIAL TERMS AND CONDITIONS

 

1.        DEFINITIONS

 

A.            Affiliates.  “Affiliated Airline” as defined in the
Airline Agreement.

 

B.            Air Transportation
Business.  “Air Transportation
Business” as defined in the Airline Agreement.

 

C.            Aircraft Parking
Area.  “Aircraft Parking Area” has
the meaning given in Section 2.B. and Exhibit A of this Agreement, or as amended.

 

D.            Airline Agreement.  Airline Operating Agreement and Terminal
Building Lease for Minneapolis-St. Paul International Airport dated
January 1, 1999, or as amended, superceded or replaced.

 

E.             DBO.  Date of Beneficial Occupancy as set forth in
Section 3.B.

 

F.             Executive Director.  MAC’s Executive Director or such other
person designated by the Executive Director to exercise functions with respect
to the rights and obligations of MAC under this Agreement.

 

G.            Mesaba Project.  Mesaba Project has the meaning given in
Section 7.A.

 

H.            Plans and
Specifications.  Plans and
Specifications has the meaning given in Section 7.A.

 

I.              Preferential Use.   Aircraft Parking Area is designated as
preferential use, meaning that Mesaba has the first opportunity to use all ramp
area that is part of the Leased Premises under this Agreement.

 

J.             Trade Fixtures.
An article used by an airline in the usual course of its aircraft maintenance
business that was once personal property, but has been attached to the land or
building in a manner so that it is regarded in law as part of the real estate.

 

2.             LEASED PREMISES

 

MAC leases to Mesaba the
premises as shown on the attached Exhibit A, and as listed below,
collectively called “Leased Premises”. Such Leased Premises shall be used by
Mesaba to accommodate Mesaba’s operation at the Airport.

 

A.            Exclusive Ground Area  

 

MAC leases to Mesaba
approximately 365,625 square feet of exclusive use premises as shown on Exhibit A,
which includes the hangar pad, shop/office space, and employee parking.

 

7

 

B.            Preferential Use Leased Premises 

 

MAC
grants to Mesaba, on a Preferential Use basis, the use of approximately 85,795
square feet as shown on Exhibit A (“Aircraft Parking Area”). Mesaba
shall be granted priority to utilize such Preferential Use Aircraft Parking
Area.

 

The
Preferential Use Aircraft Parking Area shall be used by Mesaba for its own
aircraft. If Mesaba is not using any Aircraft Parking Area that is not
directly in front of its hangar facility and another airline has a need for
aircraft parking, MAC may encourage the two parties to negotiate a sublease.
Payment will be made directly to Mesaba as subtenant rent in accordance with
Section 27.D. of this agreement.  MAC acknowledges
that Mesaba is not likely to have Aircraft Parking Area available for such use
by other airlines unless and until the Leased Premises is expanded.

 

Mesaba agrees that such use and assignment of Preferential Use Aircraft
Parking Areas shall be consistent with FAA criteria to enable such Aircraft
Parking Areas to remain eligible for Federal AIP grant and other funding.

 

C.            Building Improvements

 

MAC will lease to Mesaba building improvements in accordance with, and
will provide the level of finishes in the building improvements as specified,
in Exhibit
B.

 

D.            Future
Development

 

Both parties understand that Mesaba has an interest in
expanding its maintenance facility. MAC will use its best efforts to
concentrate future land development on the southwest side of the ramp area and
expanding to the north. If through the development of the area over time or due
to operational requirements the land adjacent to Mesaba becomes the focus for a
long term development MAC will provide Mesaba 120 days notice during which time
the Commission will consider the highest and best use of the land in question.

 

3.             EFFECTIVE DATE AND TERM

 

A.            Effective
Date 

 

The Aircraft Hangar Facility Lease Agreement shall be
effective on the date executed by both parties (hereinafter “Effective Date”).

 

B.            Term

 

The Term of this Agreement shall commence on the Date of Beneficial
Occupancy (DBO), and expire on the last day of the month twenty-five (25) years
beyond the DBO.  The DBO shall be the
date on which MAC and Mesaba substantially 

 

8

 

complete the improvements and MAC delivers a Final Certificate of
Occupancy issued by the MAC Building Official. 
A copy of the Final Certificate of Occupancy will be attached as Exhibit F
to the Agreement.

 

Prior to any occupancy of the Leased Premises, at a minimum, a
Temporary Certificate of Occupancy shall be issued by the MAC Building
Official.

 

Mesaba shall have the use of the
Preferential Use Aircraft Parking Area commencing on the DBO and continuing
through the term of this Agreement, subject to the terms and conditions of this
Agreement.

 

C.            Holdover

 

Any holding over beyond the term of the Agreement will be on a month to
month basis and shall be at the rental rates in effect prior to the termination
of the Agreement.

 

4.             RENTAL FEES AND CHARGES

 

Rent will commence
effective on the DBO.  Mesaba shall pay
all rentals, fees and charges in advance on the first day of the month without
the issuance of an invoice or notice by MAC, in accordance with Exhibit C
attached hereto and incorporated by this reference, and as further identified
below. 
Rent will be comprised of three components: (A) Ground Rent, (B)
Site Improvement Costs, (C) Facility Rent.

 

A.            Ground Rent

 

Commencing on the DBO Mesaba shall pay ground rent in
advance on the first day of each month, without demand or invoice, subject to
Section 4.B.

 

	
  LEASE AREA

  	
   

  	
  AREA

  	
   

  	
  RATE

  	
   

  	
  MONTHLY

  	
   

  	
  ANNUALLY

  	
   

  
	
  Exclusive

  Ground Area

  	
   

  	
  365,625

  	
   

  	
  $

  	
  0.20

  	
   

  	
  $

  	
  6,093.75

  	
   

  	
  $

  	
  73,125.00

  	
   

  
	
  - Hangar pad, shop/office site, employee parking

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preferential

  Ramp Area

  	
   

  	
  85,795

  	
   

  	
  $

  	
  0.20

  	
   

  	
  $

  	
  1,429.92

  	
   

  	
  $

  	
  17,159.00

  	
   

  

 

If anytime during
the term of this Agreement Mesaba stops flying passenger service to the
Minneapolis-St. Paul International Airport, the ground rent shall be adjusted
to the applicable classification defined by the Ordinance 83 and its revisions
effective the first day of the month following the termination of passenger
service.

 

9

 

B.            Revision of Ground Rent

 

In conjunction with Ordinance 83
and its revisions anytime after October 1, 2002, and no more frequent than
every fifth year during the remainder of the term of the Agreement, MAC
reserves the right to amend ground rent, either upward or downward. MAC shall
rely upon appraisals obtained from one or more qualified, independent
appraisers chosen by MAC. It is understood, consistent with Minnesota Statutes,
that any revision or changes in rents shall be reasonable and uniform covering
Mesaba’s lease rights with those charges to other users at the Airport in the
same class of users as Mesaba.

 

C.            Site Improvement
Costs (Preferential Use Aircraft Parking Area, Common Use Taxilanes/Areas and
Site Work)

 

MAC shall have the necessary site work, paving of the Preferential Use
Aircraft Parking Area, common use taxilanes/areas and work incidental thereto
completed that will serve as the Preferential Use Aircraft Parking Area of the
Leased Premises and associated areas.  Such
work shall be completed prior to the DBO as defined above.

 

The cost of such work shall be recovered by MAC and paid by Mesaba in
monthly payments as described on the attached Exhibit C, commencing on the
DBO.  The amount to be recovered by MAC
shall be the actual cost of all work directly related to the Mesaba Project and
the common use taxilanes/areas and work incidental thereto. The cost of the
common taxilanes/areas shall be allocated to Mesaba based on the percentage
that its Preferential Use Aircraft Parking Area is of the total Preferential
Use Aircraft Parking Area in the designated West Side area.

 

The costs of the work shall be amortized over thirty (30) years at an
annual interest rate equal to that being paid on the bonds issued for the
financing of this portion of the Runway 17-35 program, plus a debt coverage
amount determined by MAC. The annual amount shall be divided by twelve (12) to
determine the monthly amount to be paid by Mesaba.  The cost to be paid by Mesaba shall be determined initially based
on estimates of cost of the work, including contingencies, and adjusted to
actual costs no later than 120 days after substantially all elements relating
to the cost of the Mesaba Project have been completed.  MAC shall notify Mesaba in writing of the
actual cost and the associated amount to be paid.  Upon reconciliation of the Mesaba Project costs, Exhibit C
shall be amended to reflect actual expenses. Mesaba may request and MAC will
furnish reasonable documentation to substantiate the reconciled costs used to
determine its rental rate.

 

D.            Facilities Rent

 

MAC shall complete the necessary site work for the building and adjacent
areas, construction of exclusive Leased Premises, including employee vehicle
parking, equipment parking, and necessary related facilities as identified in Exhibit B.

 

10

 

The cost of such work shall be recovered by MAC and paid by Mesaba in
monthly payments as described in Exhibit C, commencing on the DBO. The
amount to be recovered by the MAC shall be the actual cost of all work directly
related to the Mesaba Project.

 

The cost to be paid by Mesaba shall be determined initially based on
estimates of cost of the work, including contingencies, and adjusted to actual
costs no later than 120 days after substantially all elements relating to the
cost of the Mesaba Project have been completed.  MAC shall notify Mesaba in writing of the actual cost and the
associated amount to be paid.  Upon reconciliation
of the Mesaba Project costs, Exhibit C shall be amended to reflect
actual expenses.

 

The rent is calculated as shown on Exhibit C
such that Mesaba is not paying full debt service on a portion of the employee
parking area.  The parties agree that at
such time as Mesaba desires to expand the Aircraft Maintenance Hangar and
Leased Premises, rent will be recalculated to make full debt service applicable
to the entire Leased Premises.

 

E.             Snow Removal, Maintenance and Repair

 

MAC shall be responsible
for snow removal, routine maintenance, operation, repair and replacement on the
Preferential Use Aircraft Parking Area of the Leased Premises and common use
taxilanes in accordance with Exhibit D (Maintenance Responsibility
Matrix).  Mesaba shall pay costs for MAC
performing such snow removal, routine maintenance, operations and repair on the
Preferential Use Aircraft Parking Area of the Leased Premises and its pro-rata
share of such costs for common use taxilanes/areas as billed by MAC.  MAC will use its best efforts to minimize
the snow removal costs to Mesaba by requiring one half inch of snow
accumulation on the ramp prior to calling out the snow removal contractors. At
the discretion of MAC’s maintenance staff there may be situations or particular
snow conditions that will warrant a waiver to this standard in order to
maintain Mesaba’s aircraft operations. 
Mesaba hereby grants to MAC the right to access the Preferential Use
Aircraft Parking Area for the purpose of performing snow removal, maintenance,
operational activities and repairs as MAC determines appropriate.  MAC shall use reasonable efforts not to
interfere with Mesaba’s business operations when performing such
obligation.  MAC shall provide equipment
and labor to fulfill these responsibilities in keeping with Mesaba’s
operational needs in a reasonable manner.

 

Mesaba shall be
responsible for the snow removal from all areas of the Leased Premises with the
exception of the Preferential Use Aircraft Parking Areas as described
above.  Notwithstanding the above,
Mesaba shall be responsible for snow removal on the Preferential Use Aircraft
Parking Areas to the extent that Mesaba shall remove snow from such areas that
are immediately adjacent to Mesaba’ building, Mesaba’s airside building doors,
and other appurtenances which cannot be reasonably efficiently reached by
routine airfield snow removal equipment utilized by MAC.   

 

11

 

F.             Reserve Requirement

 

A reserve requirement is due and payable upon execution of this
Agreement.  An irrevocable letter of
credit, in a form acceptable to MAC, is acceptable in guaranteeing the reserve
requirement.  The reserve requirement
shall be automatically renewed each year by Mesaba and is required in advance
for each year during the term of this Agreement and shall be provided to MAC
thirty (30) days prior to the expiration of the previous letter of credit.

 

The amount of the reserve requirement is equal to three (3) months rent,
to be calculated as the sum of 1 and 2:

 

1.             Rent Reserve Requirement

 

A rent reserve requirement defined
as maintenance and operating costs for the site and taxilanes, common use area,
and land rent.  This amount is currently
estimated at $25,000 per month or $75,000 in total. This amount is subject to
change based on final construction figures and modification to the ground rent
ordinance.

 

2.             Debt Reserve
Requirement

 

A debt reserve requirement in the amount of $773,000.
This amount represents the projects’ proportionate share of the debt service
reserve requirement associated with the funding source, which is MAC’s 2001
General Airport Revenue Bond Issue. 
This amount is subject to change based on final construction figures.

 

G.            Late Fee

 

Any payment not received
within thirty (30) days of the due date shall accrue interest at the rate of
1.5 percent per month measured from the due date until paid in full.

 

5.             AUTHORIZED USE

 

A.            Leased
Premises

 

The Leased Premises shall
only be used by Mesaba for the maintenance and operation of Mesaba aircraft,
storage of equipment, administrative offices and vehicle maintenance as a part
of Mesaba’s operations on the Airport and for other purposes as authorized by
this Agreement.  Any use and/or activity not expressly authorized pursuant to this
Section requires the prior written approval of MAC.

 

B.            Fueling

 

Mesaba may fuel or
defuel its own aircraft, its ground equipment and vehicles used in Mesaba’s
operation at the Airport, with its own employees or a

 

12

 

commercial vendor
authorized by MAC to operate at the Airport. 
Mesaba shall not engage in fueling activities other than as specified
above.  No bulk fuel storage, except
propane, is permitted on the Leased Premises.

 

C.            Aircraft Deicing

 

Mesaba shall only
de-ice its aircraft in areas of the Airport specifically designated by MAC pursuant
to field rule entitled: Aircraft Deicing, dated July 21, 1999, attached as
Exhibit E,
as such may be amended from time to time. 
Mesaba acknowledges that it is aware of and has read and will comply
with the Field Rule.  Mesaba is
responsible for being aware of and complying with all current field rules and
any revisions as they may occur from time to time whether or not this Agreement
is amended to incorporate the revised field rule.

 

D.            Maintenance of
Other Aircraft

 

Mesaba
may provide routine servicing and maintenance consisting of A, B, C or other
similar level checks, and emergency repair or maintenance services, to other
air carrier type aircraft owned, leased or operated by air carriers other than
Mesaba, provided such services are not provided to hushkitted or
widebody aircraft. It is understood that
Mesaba does not intend to and will not solicit or engage in such maintenance
activities for aircraft not otherwise serving the Minneapolis-St. Paul area and
that such maintenance activities shall not include major modifications,
conversions, remodeling or the maintenance, servicing, handling or hangaring of
general aviation or corporate aircraft. 
Mesaba will provide MAC with written monthly reports of any maintenance
done on air carrier type aircraft owned, leased or operated by air carriers
other than Mesaba.

 

E.             Noise

 

Mesaba agrees to abide by all current and future
Airport noise rules, regulations, and field rules. The parties agree that use
of the facility will be for aircraft consistent with Mesaba’s fleet mix up to
aircraft equal in size to the Airbus A320. Any variation requires the prior
approval of MAC.

 

At the date the Agreement
is executed, Mesaba and MAC are parties to an Airline Agreement, which is
scheduled to expire December 31, 2015. 
In the event anytime during the term of this Agreement Mesaba shall
either fail to renew such Airline Agreement or for any reason not be a party to
the most current Airline Agreement between MAC and signatory airlines at the
Airport, Mesaba shall, as a term and condition of this Agreement, comply with
all aircraft noise and operational provisions of the then current Airline
Agreement although Mesaba is not a party to the then current Airline Agreement.

 

F.             Storage

 

Mesaba is authorized to store necessary supplies for
maintaining aircraft on the Leased Premises, provided that Mesaba (1) meets all
environmental and

 

13

 

regulatory requirements, and (2) that such storage is
approved by MAC.  Such consent will not be
unreasonable withheld.

 

6.             TITLE
TO IMPROVEMENTS

 

For any and all improvements constructed on the Leased Premises, not
financed by MAC, the title to the improvements and possession except personal
property and Trade Fixtures paid for and installed by Mesaba on the Leased
Premises shall revert to MAC at the expiration of the term or upon early
termination of this Agreement for any reason. 
Any  Trade Fixtures removed by
Mesaba must not negatively impact the structure or finishes of the facility; in
the event such condition should arise, Mesaba must restore the condition of the
Leased Premises after such removal. Title to all improvements financed and/or
put in place by MAC will remain with MAC and will be leased to Mesaba pursuant
to this Agreement, except as provided in Section 13.

 

7.             CONSTRUCTION AND FINANCIAL COMMITMENT

 

A.            Project

 

The Project will include
site preparation, utility installation and construction of the following
facilities: 137,410  sq. ft. of maintenance shop, office
facility, and hangar; hangar fire suppression system; 85,795 sq. ft. of
Aircraft Parking Area; 228,215  sq. ft. of auto parking space and related
appurtenances.  All dimensions listed
are approximated for the purpose of this document. Upon completion, the
premises indicated on Exhibits A and B, will be leased by Mesaba
(the “Mesaba Project”).

 

MAC and Mesaba will
coordinate and develop a set of plans and specifications (Project number:
106-4-092,
dated July 23, 2002) (as amended from time to time, the “Plans
and Specifications”).  MAC will ensure
integration of the facilities being constructed by MAC with the installation
and operation of necessary aircraft maintenance equipment to be installed by
Mesaba.  MAC will construct the project
in accordance with the Plans and Specifications and Exhibit B.

 

B.            Design and
Construction

 

The Mesaba Project shall be constructed pursuant to Plans and
Specifications prepared and adopted as follows:

 

1.             Plans and Specifications

 

Mesaba has selected, and
MAC has approved, consultants to prepare Plans and Specifications for the
Mesaba Project and related improvements to be constructed on the Airport to
meet the requirements of Mesaba for its aircraft maintenance hangar.  Mesaba will provide input to the plans and
specification to ensure integration of the facilities to be constructed with
other MAC facilities or plans for future facilities.  Mesaba shall provide to MAC a complete set of Plans and
Specifications in paper and electronic form.

 

14

 

The parties will cooperate to establish a project team
to ensure coordination among all elements of the Mesaba Project, to minimize
impacts on the traveling public and to attain project completion in accordance
with the date established in the construction documents and in coordination
with development of Runway 17-35. The parties will coordinate with Mesaba and
other entities as necessary to ensure coordination among all elements
comprising the West Side airline development area.

 

2.             Bids

 

MAC shall advertise for bids according to all applicable laws.  The contracts for construction shall include
such provisions and alternates provided in the plans as Mesaba may reasonably
request and which are not inconsistent with the statute.  Award of contracts for the construction of
the Mesaba Project and work incidental thereto shall require the written
concurrence of Mesaba.  If the total of
low responsible bids for the Mesaba Project at any time is projected to or does
exceed the Maximum Amount to be Financed by MAC according to Section 7.D., one
of the following shall occur:

 

a.             Modify Project

 

If Mesaba is unwilling to pay the excess cost, MAC with Mesaba’s
concurrence shall make such modifications to the Plans and Specifications for
the Mesaba Project as necessary to reduce the costs so the total design and
construction portion of the Mesaba Project Costs to be financed by MAC do not
exceed the Maximum Amount to be Financed, and MAC shall effect such
modifications in such a manner that will meet the requirements of applicable
law.

 

b.             Mesaba
Pay Additional Costs

 

If Mesaba agrees to pay all design and construction Project Costs
exceeding the Maximum Amount to be Financed, MAC will proceed with the award of
the applicable contract(s) and Mesaba shall pay to MAC an amount equal to the
total costs exceeding the Maximum Amount to be Financed.  Such amount shall be paid by Mesaba to MAC
prior to MAC executing the contract(s). MAC shall deposit such amount in the
Construction Fund and such excess costs shall not be considered part of the
Project Costs to be financed by MAC.

 

Mesaba’s not to exceed costs identified in this Section, shall be
comprised of the following:

 

15

 

(i)            Lowest Responsible Bid for the project
construction as outlined on the bid documents and specifications.  The lowest Responsible Bid for the project
construction shall be the general contract amount, excluding any contingencies,
for the project construction as specified in the Plans and Specifications bid
documents.

 

Mesaba shall not be responsible and shall not pay for any additional
construction cost in excess of this amount with the exception as follows:
Mesaba may initiate and approve, in writing, additions to the scope of
work.  Such approval may add to or
reduce the construction cost and shall be subject to the provisions of the
contract.

 

Mesaba will also approve additions to the general contract amount for
fair and reasonable costs associated with design omissions.  Fair and reasonable amounts shall be
established at the option of Mesaba, via a proposal for the work submitted to
Mesaba, a bid amount for the work, or Mesaba may approve the work subject to a
cost adjustment that is determined by construction unit costs and audit of the
work performance by Mesaba’s representative

 

(i)            Architectural and engineering fees necessary for
the design and administration of the bid documents and construction
coordination and administration.  Mesaba
will pay fair and reasonable architectural and engineering fees and construction
coordination fees in an amount not-to-exceed $799,500, for the design, design
services, and construction coordination for the Mesaba Project.  Such fee amounts are shown on Exhibit G.

 

(ii)           Any additions and/or deletions to the project scope of work that may be
requested and approved in writing by Mesaba’s assigned representative.

 

3.             Approvals

 

No construction shall occur until all necessary
approvals are received from the FAA and the Environmental Quality Board (EQB),
including but not limited to shadow and airspace studies.  No construction shall commence until Mesaba
has approved in writing the final Plans and Specifications for the Mesaba
Project.  Such consent not to be
unreasonably withheld.

 

16

 

7

4.             Construction

 

MAC will be responsible for design and construction of the Mesaba
Project as noted in the Plans and Specifications to ensure that integration
with surrounding facilities is maintained. 
MAC will be responsible for the design and construction of the utility
corridor and bringing the necessary utilities to the Mesaba Project.  It is understood and agreed that
representatives of Mesaba shall have full inspection rights during
construction.

 

5.             Warranties

 

MAC will ensure that all transferable
warranties will transfer to the benefit of Mesaba or its successors or
assigns.  If the warranties cannot be
transferred, MAC will cooperate with Mesaba or its successors or assigns to
satisfy warranty claims.

 

C.            Construction
Fund

 

MAC will create and maintain a special bookkeeping
account to be designated on its books as the “Project construction fund” (the
“Construction Fund”), in which it will record all receipts and disbursements of
funds used to pay costs of the development of the Mesaba Project, as follows:

 

1.             Receipts

 

The receipts to be
credited to the Construction Fund shall be:

 

a.             Such sums as Mesaba
is required by the provisions hereof or may determine to apply toward the
development cost; and

 

b.             Any sums recovered by
MAC incident to the payment of the development costs and the construction of
the Mesaba Project and incidental work, including without limitation,
penalties, liquidated damages, rebates and insurance proceeds; and

 

c.             Any sums in addition
to those specified in subparagraphs (a) and (b) above required to fund the
Mesaba Project which sums shall be provided by MAC as needed, not to exceed the
Maximum Amount to be Financed by MAC as stated in Section 7.D..

 

2.             Project Costs

 

The expenses to be
charged to and paid from the Construction Fund shall make up the Project Costs
and shall include:

 

17

 

a.             The cost of all
planning fees, engineering and design fees, construction
management/coordination fees, fees for environmental studies and testing,
inspection fees levied by appropriate agencies, interest during construction,
financing costs (i.e. capitalized interest, costs of issuance, and funding of
mandatory reserves with bond proceeds), the costs associated with installing a
new hangar fire suppression system, and all other funds that are expended
directly on or toward the construction, purchase, installation and completion
of the Mesaba Project; and

 

b.             The reasonable cost
of all fiscal, legal and other professional service and all printing and
publications incurred by MAC, including traveling expenses, if any reasonable,
necessary and incidental to the financing or construction of the Mesaba
Project; and

 

c.             Interest on sums, if
any, at an imputed interest rate of 6.4440% per annum advanced by MAC from its
other funds for any of the foregoing purposes, from the respective dates of any
such advances to the date of repayment to be computed at the net average
interest rate on all MAC bonds outstanding; and

 

d.             Costs associated with
changes, modifications, additions or improvements prior to and during the
construction of the Mesaba Project; and

 

e.             All
other costs incurred by MAC and approved by Mesaba, which, in accordance with
generally accepted accounting practice, are capital expenditures related to the
completion of the Mesaba Project.

 

D.            Maximum Amount to be Financed

 

The amount of financing provided by MAC to finance
construction of the Mesaba Project shall not exceed $10,736,570 (“Maximum Amount
to be Financed”).  The Mesaba Project’s
elements and costs are as set out in the attached Exhibit C.  If the cost of the Mesaba Project, as
modified by MAC’s Project Change Management Policy and as approved by Mesaba in
writing at any time exceeds such amount, the provisions of Section 7.B.2 above
will apply.

 

E.             Finishes and Equipment Provided by
Mesaba

 

Mesaba, at its sole cost and expense, will install all
interior finishes and equipment necessary for its aircraft maintenance and
storage related activities, except as stated on Exhibit B.  Mesaba will have access to the Leased
Premises

 

18

 

during the construction period to the extent necessary
to complete such installation in a timely manner.  During such access, Mesaba agrees to: (1) use its best efforts to
not disrupt construction by MAC or other projects in the vicinity, and (2)
arrange for its own construction power and other required utilities or
participate in its proportionate share of such utility costs.

 

8.             CONSENTS, APPROVALS, AND NOTICES

 

A.            Consent

 

Whenever in this Agreement the
consent or approval of MAC or Mesaba is required, such consent or approval
shall mean the consent or approval of the Executive Director on behalf of MAC
and a representative designated by Mesaba in writing on behalf of Mesaba.

 

B.            Notice

 

All notices required by this Agreement shall be in writing and shall be
given by registered or certified mail by depositing the same in the U.S. mail
in the continental United States, postage prepaid, return receipt requested, or
by personal or courier delivery.  Either
party shall have the right, by giving written notice to the other, to change
the address at which its notices are to be received.  Notice shall be given to:

 

	
  1)

  	
   

  	
  MAC:

  	
   

  	
  Director
  – Commercial Management and Airline Affairs

  Metropolitan Airports Commission

  6040 28th Avenue South

  Minneapolis, MN  55450

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2)

  	
   

  	
  Mesaba:

  	
   

  	
  Mesaba
  Aviation, Inc.

  7501 – 26th Avenue South

  Minneapolis, MN 55450

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3)

  	
   

  	
  If notice is given in another
  manner or place, it shall also be given at the place and in the manner
  specified above.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4)

  	
   

  	
  The effective date of such
  notice, consent, or approval shall be the date of the receipt as shown by the
  U.S. Postal Service Return Receipt or the courier receipt, or the date
  personal delivery is certified, unless provided otherwise in this Agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5)

  	
   

  	
  MAC
  and/or Mesaba shall notify the other party in the event of a corporate name
  change.

  
							

 

19

 

ARTICLE II —
GENERAL TERMS AND CONDITIONS

 

9.             MAINTENANCE OF LEASED PREMISES  AND IMPROVEMENTS

 

A.            Maintenance by MAC and Mesaba

 

Mesaba will be
responsible for providing all maintenance of the Leased Premises as defined in Exhibit D and
Section 3E, except as otherwise provided in this Agreement.

 

MAC by its
authorized officers, employees, agents, contractors, subcontractors, or other
representatives, will have the right (at such times as may be reasonable under
the circumstances and with as little interruption of Mesaba’s operation as is
reasonably practicable) to enter the Leased Premises for the following
purposes:

 

1)             To inspect such space
to determine whether Mesaba has complied and is currently in compliance with
the terms and conditions of the Lease.

 

2)             Upon reasonable notice to perform such
maintenance, cleaning, or repair as MAC’s Executive Director deems necessary,
if Mesaba fails to perform its obligations under the Agreement, and to recover
the reasonable cost of such maintenance, cleaning, or repair from Mesaba, which
will include a 15% administrative fee.

 

For items not specifically identified on Exhibit D,
Mesaba shall be responsible for maintenance, repair and replacement of the
following: 1) other systems and equipment serving the Leased Premises
exclusively; 2) alterations to the Premises whether installed by MAC or Mesaba;
3) improvements to the Premises whether installed by MAC or Mesaba; 4) all
other repairs, replacements, renewals and restorations, interior and exterior,
ordinary and extraordinary, foreseen and unforeseen; and 5) all other work
performed by or on behalf of Mesaba pursuant to the Agreement.

 

B.            Condition of Leased
Premises

 

Mesaba will ensure all
maintenance, repairs, replacement, and restorations of building components and
building systems are completed in compliance with manufacturer recommendations
and warranty specifications.  Upon
request by MAC, Mesaba will provide evidence substantiating that such
maintenance was performed by a qualified professional.

 

Mesaba at all times at its own
costs and expense shall take good care of the Leased Premises and the
buildings, structures or improvements located thereon

 

20

 

and shall keep and maintain them
in good order and repair and in a clean and neat condition.  Mesaba shall not suffer or permit any waste
or nuisance on the Leased Premises or anything thereon that shall interfere
with the rights of other airlines or MAC in connection with the use of portions
of the Airport not leased to Mesaba.

 

10.           BUILDING CONSTRUCTION, REPAIRS, SECURITY FOR
LIENS

 

Whenever and as often as Mesaba shall erect or shall
cause to have erected any building, structure or improvement, regardless of the
dollar value, on the Leased Premises and whenever and as often as it shall
repair, rebuild, alter, enlarge or extend any building, structure, or
improvement which may from time to time be on the Leased Premises, or cause the
same to be done, Mesaba shall in each instance satisfy the following
requirements.

 

a.             Procure from the
necessary authority all building permits that may be required,

 

b.             Do or cause the work
to be done in a good and professional manner and to be completed within a
reasonable time and in conformity with such building codes, zoning ordinances,
or regulations and orders of any lawful authority applicable to the Airport,

 

c.             Keep the Leased
Premises and every building, structure and improvement on the Leased Premises
free and clear from all liens for labor performed and materials furnished
therefor.  If notice of lien is filed,
Mesaba shall bond over or obtain a release within 30 days of notice of the
lien,

 

d.             Defend, at its own
cost and expense, each and every such lien asserted or filed against the land,
or any part thereof, or against any building, structure or improvement thereon,
and pay each and every judgment made or given against the land, building or any
part thereof,

 

e.             Indemnify and save
harmless MAC from each and every claim, demand, action, and cause of action
(including reasonable attorney’s fees), arising out of or in connection with
any act or omission of Mesaba or of any agent, employee, or contractor of
Mesaba in or about the premises caused by the removal, erection, alteration,
enlargement or extension of any building, structure or improvement on the
Leased Premises, arising out of or connected with the assertion or filing of
any such  lien on the land or against
any building, structure or improvements thereon,

 

f.              Comply with the
current version, at the time of design and construction, of the Airport
Facility Guidelines for Minneapolis-St. Paul International Airport and MAC
Ordinance 94 (MSP Building Code Ordinance), as amended or changed, and

 

g.             Provide MAC an
estimate from a responsible contractor showing the expense of completing the
work, and unless waived by MAC, a bond or other security in amount, form and
with surety satisfactory to MAC, conditioned for the commencement and
completion and payment for such work, and against loss or

 

21

 

damage by reason of mechanics liens, and an insurance
policy from an insurance company approved by MAC protecting MAC from all
liability to persons or property for damages arising out of the contemplated
work. MAC shall within thirty (30) days after receipt thereof approve or disapprove
the Plans and Specifications and notify Mesaba with respect to the bond or
security required, provided that such approval shall not be unreasonably
withheld.

 

11.           INDEMNIFICATION AND INSURANCE

 

A.            Indemnification

 

Mesaba agrees to indemnify and hold harmless MAC for
loss, damage or injury from act or omission of Mesaba, its employees, agents,
contractors, subcontractors, subsidiaries, licensees, sublessees, and invitees
while on MAC property, including the Leased Premises, to the person or property
of the parties hereto and their employees, and to the person or property of any
other person or corporation, and MAC shall not be liable to any extent for, nor
will Mesaba make any claim against MAC for or on account of any injury, loss or
damage to the Leased Premises, the buildings or structures thereon, the
personal property facilities located therein, or to any person or property at
anytime on the Leased Premises whether occasioned by fire, water, smoke, steam,
gas, electricity, or other agency or instrumentality which may come or be on
the Leased Premises or occasioned by any other cause, unless any such injury or
damage shall result from the sole negligence or willful misconduct of MAC.

 

B.            Property Insurance
on Buildings

 

Mesaba will keep all buildings on the Leased Premises
continuously insured, during the term of this Agreement, including fire and all
risk coverage, for an aggregate amount equal to 100 percent of their
replacement value, and any money received from the insurance shall be divided between
Mesaba and MAC as their interests may appear (the amount owed to MAC, if any,
shall be based upon the unamortized principal amount of funds contributed by
MAC to fund capital improvements).  Such
policies shall be in a form reasonably satisfactory to MAC and name MAC as a
loss payee as its interest may appear. 
Mesaba shall keep evidence of such insurance on file with MAC at all
times.

 

In the event of damage or destruction to any buildings
or improvements on the Leased Premises, all insurance proceeds shall be used to
repair, rebuild and/or restore the buildings and improvements on the Leased
Premises unless otherwise mutually agreed in writing by both MAC and Mesaba.

 

C.            Insurance

 

Mesaba shall procure and maintain insurance for
protection from claims against it under worker’s compensation acts, claims for
damages because of bodily injury

 

22

 

including personal injury, sickness or disease or
death of any and all employees or of any person other that such employees, and
from claims for damages against it because of injury to or destruction of
property including loss of use resulting therefrom.

 

Mesaba shall carry premises operations liability
insurance and aircraft liability insurance on each aircraft engaged in air
carrier activities which is owned and / or operated by Mesaba at the
Airport.  All such insurance shall be in
at least the following amount, shall include MAC as an additional insured and
shall be in form reasonably acceptable to MAC. 
Mesaba shall keep evidence of such insurance on file with MAC at all
times.  MAC reserves the right and
Mesaba agrees to revisions upwards or downwards in the minimum insurance
requirements hereinafter set forth either by field rule or ordinance of MAC,
provided, however, that any such revision shall be nondiscriminatory.

 

1)             Commercial General
Liability Policy for Bodily injury and Property Damage - $100 million.

 

2)             Owned and Non-Owned
Aircraft Bodily Injury and Property Damage Liability including Passenger Liability
- $100 million.

 

3)             Workers’ Compensation
to statutory limits and employer’s liability to at least $100,000 bodily injury
by accident, $500,000 policy limit each accident bodily injury by disease,
$100,000 each employee.

 

12.           ENVIRONMENTAL

 

A.            Definitions

 

“Environmentally Regulated Substances” means any
elements, compounds, pollutants, contaminants, or toxic or Hazardous
Substances, material or wastes, or any mixture thereof, regulated pursuant to
any Environmental Law, including but not limited to products that might
otherwise be considered of commercial value, such as asbestos, polychlorinated
biphenyls, petroleum products and byproducts, glycol and other materials used
in de-icing operations.

 

“Environmental Law (or Laws)” means any case law,
statute, rule, regulation, law, ordinance or code, whether local, state or
federal, that regulates, creates standards for or imposes liability or
standards of conduct concerning any element, compound, pollutant, contaminant,
or toxic or Hazardous Substance, material or waste, or any mixture thereof,
including but not limited to products that might otherwise be considered of
commercial value, such as asbestos, polychlorinated biphenyls and petroleum
products and byproducts. Such laws shall include, but not be limited to, the
National Environmental Policy Act (“NEPA”) 42 U.S.C. Section 4321 et seq., the
Comprehensive Environmental Response, Compensation and Liability Act
(“CERCLA”), 42 U.S.C. Section 9601 et seq., the Resource Conservation and
Recovery Act (“RCRA”), 42 U.S.C. Section 6901 et seq., the Federal Water
Pollution Control Act (“FWPCA”), 33 U.S.C. Section 1251

 

23

 

et seq. the Federal Clean Air Act (“FCAA”), 42 U.S.C.
Section 7401 et seq., the Toxic Substances Control Act (“TSCA”), 15 U.S.C.
Section 2601 et seq., the Federal Insecticide, Fungicide and Rodenticide Act
(“FIFRA”), 7 U.S.C. Section 136 et seq., and any amendments thereto, as are now
or at anytime hereafter may be in effect, as well as their state and local
counterparts, including but not limited to the Minnesota Environmental Response
and Liability Act (“MERLA”), Minn. Stat. Section 115B the Minnesota Petroleum
Tank Release Clean Up Act (“MPTRCA”) Minn. Stat. Section 115C, and the
Minnesota Environmental Rights Act (“MERA”), Minn. Stat. Section 116B.

 

“Hazardous Substances” shall be interpreted in the
broadest sense to include any and all substances, materials, wastes,
pollutants, oils or governmental regulated substances or contaminants as
defined or designated as hazardous, toxic, radioactive, dangerous, or any other
similar term in or under any of the Environmental Laws, including but not
limited to asbestos and asbestos containing materials, petroleum products
including crude oil or any fraction thereof, gasoline, aviation fuel, jet fuel,
diesel fuel, lubricating oils and solvents, urea formaldehyde, flammable
explosives, PCBs, radioactive materials or waste, or any other substance that,
because of its quantity, concentration, physical, chemical, or infectious
characteristics may cause or threaten a present or potential hazard to human
health or the environment when improperly generated, used, stored, handled,
treated, discharged, distributed, disposed, or released. Hazardous Substances
shall also mean any hazardous materials, hazardous wastes, toxic substances, or
regulated substances under any Environmental Laws.

 

B.            Indemnification

 

In addition to the general indemnification provided by
Mesaba in this Agreement, Mesaba indemnifies and agrees to defend, protect, and
hold harmless, MAC, Commission members, its officers, employees or agents, and
their respective successors, as well as successors in title to any interest in
the Leased Premises (“Indemnitees”), from and against any and all losses, liabilities,
fines, damages, injuries, penalties, response costs, or claims of any and every
kind whatsoever paid, incurred or asserted against, or threatened to be
asserted against, any Indemnitee (“Environmental Claims”), including, without
limitation:  (i) all consequential
damages; (ii) the costs of any investigation, study, removal, response or
remedial action, as well as the preparation and implementation of any
monitoring, closure or other required plan or response action; and (iii) all
reasonable costs and expenses incurred by any Indemnitee in connection
therewith, including but not limited to, reasonable fees for attorney and
consultant services; which Environmental Claims arise out of or relate to (A)
the presence on, in or under, or the escape, seepage, leakage, spillage,
discharge, deposit, disposal, emission or release of Environmentally Regulated
Substances on, in or from the Leased Premises not in full accordance with
Environmental Laws arising out of Mesaba’s past or present operations on the Leased
Premises, or (B) any material and intentional inaccuracy, incompleteness,
breach or misrepresentation under Parts C and D hereof, provided, however,
Mesaba shall not be required to

 

24

 

indemnify against any Environmental Claims hereunder
to the extent such Environmental Claims arise out of, directly or indirectly,
the negligence, willful misconduct, or recklessness of any Indemnitee or any
third-party unrelated to Mesaba.

 

If any Environmental Claim or action shall be brought
against any Indemnitee hereunder, then after such Indemnitee notifies Mesaba
thereof, Mesaba shall be entitled to participate therein as a party, and shall
assume the defense thereof at the expense of Mesaba with counsel reasonably satisfactory
to such Indemnitee and shall be entitled to settle and compromise any such
claim or action; provided, however, that such Indemnitee may elect to be
represented by separate counsel, at such Indemnitee’s sole expense, and if such
Indemnitee so elects, such settlement or compromise shall be effected only with
the consent of such Indemnitee.  This
indemnification and Mesaba’s obligations hereunder, shall survive after the
cancellation, termination or expiration of the term of this Agreement.

 

C.            Compliance with Environmental Laws

 

Mesaba shall keep and maintain and shall conduct its
operations on the Leased Premises in full compliance with all applicable
Environmental Laws. Mesaba shall further ensure that its employees, agents,
contractors and subcontractors occupying or present on the Leased Premises and
any other invitees or persons conducting any activities on the Leased Premises
under the control of Mesaba comply with all applicable Environmental Laws. By
virtue of its operational control of the Leased Premises, Mesaba shall be fully
responsible for obtaining all necessary permits or other approvals under the
Environmental Laws and shall have full responsibility for signing and
submitting any necessary applications, forms, documentation, notifications or
certifications relating thereto. Upon request of MAC, Mesaba shall provide
copies to MAC of any such applications, forms, documents, notifications or
certifications.

 

D.            Claims Relating to Environmentally
Regulated Substances

 

Mesaba represents and warrants that to the best of
Mesaba’s actual knowledge, except as previously disclosed to the MAC or any
applicable regulatory body as required, (i) no enforcement, investigation,
cleanup, removal, remedial or response action or other governmental or regulatory
actions have been asserted against Mesaba with respect to the Leased Premises,
pursuant to any Environmental Laws or relating to Environmentally Regulated
Substances; (ii) no violation or noncompliance with Environmental Laws has
occurred with respect to Mesaba’s past or present operations conducted on the
Leased Premises; (iii) no claims have been made or been threatened by any third
party against Mesaba with respect to the Leased Premises relating to
Environmental Laws or Environmentally Regulated Substances, including by any
governmental entity, agency or representative (collectively “Governmental
Entity”).

 

25

 

E.             Testing and
Reports

 

Mesaba shall provide to MAC within ten (10) days of
request, a copy of any notice regarding violation of any Environmental Law
arising out of Mesaba’s past or present operations on the Leased Premises, a
copy of any inquiry regarding environmental matters by any Governmental Entity,
a copy of any reports required by the Environmental Laws regarding violation of
any Environmental Law arising out of Mesaba’s past or present operation of the
Leased Premises, or a copy of any notice of the emission or release of
Environmentally Regulated Substances in violation of any Environmental Law
arising out of Mesaba’s past or present operations on the Leased Premises. If
MAC has a reasonable basis to believe that Mesaba is not meeting the
obligations of subsection C. of this Section, MAC may by notice require Mesaba
to conduct a reasonable review of its records for such documents as MAC
reasonably believes have not been provided and submit any such documents as
required.

 

F.             Notification

 

Mesaba shall notify MAC in writing within fifteen (15)
business days of any matter that Mesaba obtains knowledge of that may give rise
to an indemnified claim under subsection B. of this Section or that constitutes
any emission or release or any threatened emission or release of any
Environmentally Regulated Substance in, on, under or about the Leased Premises
arising out of Mesaba’s past or present operations which is or may be in
violation of the Environmental Laws.

 

G.            Right to
Investigate

 

Subject to subsections E. and H. of this Section, upon
reasonable notice to Mesaba, MAC shall have the right, but not the obligation
or duty, at anytime from and after the date of this Agreement, to investigate,
study and test the Leased Premises (at MAC’s own expense, unless otherwise
provided herein) and without unreasonably interfering with Mesaba’s operation or
the Leased Premises, during normal business hours, except under emergency
circumstances, to determine whether Environmentally Regulated Substances are
located in, on or under the Leased Premises, or were emitted or released
therefrom, which are not in compliance with Environmental Laws, provided that
such investigation, study and testing shall not unreasonably interfere with
Mesaba’s operations on and use of the Leased Premises.  Mesaba shall be entitled to have a representative
present during such investigation.

 

H.            Right to Take
Action

 

MAC shall have the right, but not the duty or
obligation, to take whatever reasonable action it deems appropriate to protect
the Leased Premises from any material impairment to its value resulting from
any escape, seepage, leakage, spillage, discharge, deposit, disposal, emission
or release of Environmentally Regulated Substances from the Leased Premises
which is not in full accordance with any Environmental Law and arises out of
Mesaba’s past or present

 

26

 

operations during the term of this Agreement. MAC
shall notify Mesaba of its intention to take such action in writing thirty (30)
days before proceeding under this subsection . 
Within that thirty (30) day period, Mesaba shall have the opportunity to
take whatever reasonable action is deemed appropriate by MAC or provide MAC a
binding commitment to do so within a reasonable time. If Mesaba does not take
such action or provide a binding commitment within the thirty (30) day period,
MAC may proceed under the terms of this subsection H of this Section.  All costs associated with any action by the
MAC in connection with this provision, including but not limited to reasonable
attorneys’ fees, shall be subject to subsection B. of this Section.

 

13.           TANKS

 

Mesaba, or its assignee, accepts title and ownership
to all tanks installed as part of the Mesaba Project or at anytime during the
term of this Agreement or during any period of holding over. Underground tanks
shall be prohibited and any tanks shall not be installed without written
approval of MAC.

 

Both Mesaba, or its assignee, and MAC acknowledge and
agree that any tanks located on the Leased Premises during the term of this
Agreement continue to remain under the ownership and control of Mesaba until
such tanks are removed from the Leased Premises by Mesaba.  At the expiration or termination of this
Agreement, Mesaba is required to remove all tanks from the Leased Premises and
conduct a Phase I environmental review or other studies to adequately
demonstrate that there was no environmental contamination to the Leased
Premises.

 

14.           UTILITIES

 

Mesaba agrees to promptly pay all fees in addition to
its rent for all water, sewer, gas, electric, trash removal, and other service
facilities supplied to or consumed by Mesaba relative to Mesaba’s operations on
the Leased Premises.  Utilities will be
metered separately when reasonably possible, otherwise Mesaba shall pay its
prorated share of utilities.

 

15.           MAC TO OPERATE AIRPORTS

 

MAC shall properly maintain, operate, and manage the
Airport at all times and in a safe manner not dissimilar to generally accepted
good practices in the State of Minnesota for airports of similar size and
character.  If for any reason beyond the
control of MAC (including but not limited to war, strikes, riots, and civil
commotion), MAC shall fail to properly maintain, operate and manage the
Airport, such failure shall not operate as a breach of this Agreement or render
MAC liable in damages.  In such case
Mesaba will be able to cancel this Agreement upon one hundred eighty (180) days
written notice and rent will abate during the time of non-use.

 

27

 

16.           PUBLIC DATA

 

The parties agree that this Agreement is subject to
the Minnesota Government Data Practices Act.

 

17.           FUTURE LEASES

 

MAC shall be free in its discretion to rent any other
space or concessions on the Airport to any other person, persons, or
corporations, and for any purpose that it desires, subject, however, to the
provisions of Minn. Stat. § 473.651.

 

18.           SIGNS

 

Mesaba shall be allowed to erect suitable advertising
signs on the Leased Premises to advertise its business, subject to the prior
written approval of MAC as to the form, type, size, location and method of
installation so as to be consistent with the current version at time of design
and installation of the following: 1) MAC’s Exterior Signage and Promotional
Activities Policy, 2) Airport Facility Guidelines for Minneapolis-St. Paul
International Airport, and 3) MAC Ordinance 94 (MSP Building Code Ordinance) as
amended or changed.

 

19.           BANKRUPTCY

 

Section 27.D. shall not apply to any valid assumption
or assignment of this Agreement by a trustee as a debtor in possession under
Section 365 of the Bankruptcy Code of 1978, as amended.  However, adequate assurance of future
performance as provided by Section 365 of the Bankruptcy Code of 1978, as
amended, for the purposes of the assumption or assignment of this Agreement
shall include, but shall not be limited to:

 

A.            Adequate assurance of
the reliability of the source of all of the rentals, fees, charges, and other
consideration due under this Agreement after the assumption or assignment of
this Agreement.

 

B.            Adequate assurance
that neither the assumption or assignment of this Agreement nor the exercise of
rights hereunder by the party assigning or the assignee will breach any
provision in any other agreement to which MAC is bound, any federal or state
statute, rule or regulation affecting MAC or the Airport, or any rule,
regulation, or ordinance made by MAC.

 

C.            Adequate assurance
that the assumption or assignment of this Agreement will not disrupt the
operation of the Airport.

 

D.            Adequate assurance of
future performance under this Agreement as may be requested by MAC, including
the procurement of a bond from a financially reputable surety covering any
costs or damages incurred by MAC in the event that MAC, within five (5) years
after assumption or assignment of this Agreement exercises its right to relet the
Leased Premises.

 

28

 

E.             Adequate assurance
that the Leased Premises will be used to provide the services permitted by this
Agreement.

 

20.           MAC’S RIGHTS UPON DEFAULT

 

A.            Events of Default

 

The
occurrence and continuation of any one or more of the following shall
constitute an event of default:

 

1)             Mesaba
fails to make payment in full when due of any rents, fees, charges or any other
amount payable hereunder within 5 business days after notice thereof from MAC;

 

2)             Mesaba
shall make or permit any unauthorized assignment or transfer of this Agreement,
or any interest herein, or of the right to use or possession of the Premises,
or any part thereof;

 

3)             Any
insurance required by the terms hereof shall at any time not be in full force
or effect;

 

4)             Failure
of Mesaba to perform, comply with, or observe, in any material respect, any
other term, condition or covenant of this Agreement not identified elsewhere in
Section A of this Article within thirty (30) days after receipt of notice from
MAC of such failure, or for such longer period of time as may be reasonably
necessary to cure the event of default, but only for such longer period if: (a)
Mesaba is reasonably capable of curing the event of default and (b) Mesaba
promptly and continuously undertakes to cure and diligently pursues the curing
of the event of default at all times until such event of default is cured;

 

5)             Any
representation or warranty of a material fact made by Mesaba herein or in any
certificate or statement furnished to the MAC pursuant to or in connection with
this Agreement proves untrue in any material respect as of the date of issuance
or making thereof;

 

6)             (a)
Mesaba shall commence any case, proceeding or other action (i) under any
existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an
order for relief entered with respect to Mesaba, or seeking to adjudicate
Mesaba as bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, liquidation, dissolution, composition or other relief with respect
to Mesaba or any of its debts, or (ii) seeking appointment of a receiver,
trustee, custodian or other similar official for Mesaba or for all or any
substantial part of any of its property; or (b) Mesaba shall make a general
assignment for the benefit of its creditors; or (c) there shall be commenced
against Mesaba any case, proceeding or

 

29

 

other action of nature referred to in clause (a) above
or seeking issuance of a warrant of attachment, execution, distraint or similar
process against all or any substantial part of any of its property, which case,
proceeding or other action results in the entry of an order for relief or
remains undismissed, unvacated, undischarged and unbonded for a period of sixty
(60) days; or (d) Mesaba shall take any action consenting to or approving of
any of the acts set forth in clause (a) or (b) above; or (e) Mesaba shall
generally not, or shall be unable to, pay its debts as they become due or shall
admit in writing its inability generally to pay its debts as they become due;

 

7)             Any
money judgment, writ or warrant of attachment or similar process, or any
combination thereof, involving an amount in excess of $25,000,000 shall be
entered or filed against Mesaba or any of its assets and shall remain
undischarged, unvacated, unbonded and unstayed for a period of sixty (60) days
or in any event later than five (5) days prior to the date of any proposed sale
or execution thereunder;

 

8)             Any act occurs that deprives Mesaba permanently
of any material right, power or privilege necessary for the conduct and
operation of its Air Transportation Business; or

 

9)             If Mesaba fails to use its exclusive use space
for a period of ninety (90) consecutive days, except when such cessation or
abandonment is due to the default of MAC or the circumstances beyond the
control of Mesaba.

 

B.            Remedies

 

If an event of default
occurs hereunder, MAC, at its option, may at any time thereafter, do one or
more of the following as MAC in its sole discretion shall elect, to the extent
permitted by, and subject to compliance with any mandatory requirements of,
applicable law then in effect:

 

1)             Declare all rents,
fees and other charges payable hereunder, whether currently or hereafter
accruing, to be immediately due and payable;

 

2)             Proceed
by appropriate court action or actions, either at law or in equity, to enforce
performance by Mesaba of the applicable covenants and terms of this Agreement
or to recover damages for the breach thereof;

 

3)             Enter and take possession of the Premises and/or
the rights of Mesaba hereunder without such re-entry terminating Mesaba’s
obligations for the full term hereof, which remedy shall be in addition to all
other remedies at law or in equity, including action for forcible entry and
lawful detainer, for ejectment or for injunction;

 

4)             Terminate
all rights of Mesaba under this Agreement (without terminating the continuing
obligation of Mesaba to fulfill its past and future obligation hereunder) and
in such case Mesaba further agrees to indemnify and hold harmless MAC against
all loss in rents, fees, and charges and other

 

30

 

damages which MAC shall incur by reason of such
termination, including, without limitation, costs of restoring and repairing
the Leased Premises and putting the same in rentable condition, costs of
reletting the Leased Premises to another airline (including without limitation
Mesaba improvement costs and related fees), loss or diminution of rents and
other damage which MAC incurs by reason of such termination, and all reasonable
attorneys’ fees and expenses incurred in enforcing the terms of this Agreement;

 

5)             In
the event of any default hereunder, Mesaba shall reimburse MAC for all
reasonable fees and costs incurred by MAC, including reasonable attorneys’
fees, relating to such default and/or the enforcement of MAC’s rights
hereunder; and

 

6)             Apply
any of the reserve requirement granted by Mesaba to any unpaid obligations of
Mesaba hereunder.

 

Any waiver or any breach of covenants herein contained
to be kept and performed by Mesaba shall not be deemed or considered a
continuing waiver and shall not operate to bar or prevent MAC from declaring a
forfeiture for any succeeding breach either of the same condition or covenant
or otherwise.

 

21.           TERMINATION

 

MAC may terminate the
Agreement on twenty-four months advance written notice if, in its sole
discretion, it determines that the Leased Premises or any portions thereof are
needed to permit the development of the 2010 Plan. The termination would be
without recourse by Mesaba and will relieve Mesaba from accruing further
financial obligation under this Agreement beyond such date Mesaba vacates the
Leased Premises.  The notice will also
constitute a twenty-four month period for Mesaba’s right to remove the personal
property on the Leased Premises or any improvements constructed or installed on
the Leased Premises that were not financed by MAC as part of this Project.  In the event MAC terminates the Agreement,
MAC will pay to Mesaba within 30 days after the date Mesaba surrenders the
Leased Premises to MAC in the condition required pursuant to the Agreement, the
Leasehold Improvement Termination Amount in effect on the effective date of
such termination with respect to each element or portion of the leasehold
improvements.

 

The Leasehold Improvement
Termination Amount will be applicable to improvements constructed on the Leased
Premises and paid for by Mesaba.  Such
Leasehold Improvement Termination Amount will be the unamortized costs of each
improvement, assuming the full amount of the initial capital cost (not
including cost of personal property or Trade Fixtures that Mesaba removes or is
eligible to remove from the Leased Premises) of each improvement as if fully
amortized on a straight line basis (at zero percent interest) over a period
from such time as the improvement was completed to the natural expiration of the
Agreement.  MAC must approve any other
amortization period in writing.  This
section constitutes all compensation to which Mesaba is entitled in the event
of such termination.  Mesaba is entitled
to no compensation from MAC if Mesaba voluntarily vacates the Leased Premises
during the term of the Agreement.

 

31

 

22.           CONDEMNATION

 

If it is determined to be
in the public interest, MAC will have the power to condemn the property
interests created by the Agreement even though it is itself a party to the
Agreement; provided that this provision will not be construed as a waiver by
Mesaba of its right to contest the validity of any such condemnation action.

 

Upon taking by MAC and without limitation to the
preceding paragraph, (a) in the event of a taking by MAC of the Agreement or
any portion of the Leased Premises, the improvements or other property of
Mesaba, Mesaba’s award shall be limited solely and exclusively to Mesaba’s
relocation expenses and those relating to a permanent taking of Mesaba’s
personal property and value of leasehold improvement made by Mesaba, and (b) in
no event shall Mesaba be entitled to any award relating to the value of any
unexpired portion of the term of this Agreement, the improvements constructed
by MAC (including, without limitation, the Initial leasehold improvements) any
fixture located on or about the Property, or any loss, damage or diminution in
Mesaba’s business.

 

23.           QUIET ENJOYMENT

 

MAC covenants and agrees with Mesaba that upon
Mesaba’s paying the rent and keeping, paying and performing all the terms of
this Agreement on Mesaba’s part, Mesaba shall have ingress and egress to the
Leased Premises, and may, subject to the terms of this Agreement, peaceably and
quietly have and hold the Leased Premises for the term of this Agreement.

 

MAC shall have the right to enter the Leased Premises
at anytime, to inspect the same for operations conducted from the Leased
Premises, and for the purpose of making repairs or improvements to any adjoining
Leased Premises or to the Airport and to install through or upon the Leased
Premises, such pipes, wires and appurtenances as it may deem necessary or
useful to the operation of the Airport, but the making of such repairs,
improvements or installations shall be done in such a manner as will not
interfere materially with the use and enjoyment of the Leased Premises by
Mesaba, except in cases of emergency and shall be at MAC’s expense except as
provided herein.

 

24.           THE RIGHT TO AUDIT

 

MAC shall retain the right to audit data, financial
books and records, at any reasonable time upon notice, directly connected with
or related to operations taking place on or about the Leased Premises.

 

25.           NONDISCRIMINATION

 

Mesaba for itself, its heirs, personal representatives,
successors in interest, and assigns, as a part of the consideration hereof,
does hereby covenant and agree as a covenant running with the land that in the
event facilities are constructed, maintained, or otherwise operated on the
property described in this Agreement for a purpose for which a Department of
Transportation program or activity is extended or for another purpose

 

32

 

involving the provision of similar services or
benefits, Mesaba shall maintain and operate such facilities and services in
compliance with all other requirements imposed pursuant to 49 CFR Part 21,
Nondiscrimination in Federally Assisted Programs of the Department of
Transportation, and as the Regulations may be amended.

 

Mesaba for itself, its personal representatives,
successors in interest, and assigns, as a part of the consideration hereof,
does hereby covenant and agree as a covenant running with the land that (1) no
person on the grounds of race, color, or national origin shall be excluded from
participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of the facilities thereon, (2) that in the
construction of any improvements on, over or under such land and the furnishing
of services thereon, no person on the grounds of race, color, or national
origin shall be excluded from participation in, denied the benefits of, or
otherwise be subjected to discrimination, and (3) that Mesaba shall use the
Leased Premises in compliance with all other requirements imposed by or
pursuant to Title 49, Code of Federal Regulations, Department of
Transportation, Subtitle A, Office of the Secretary, Part 21,  Nondiscrimination in Federally-assisted
programs of the Department of Transportation-Effectuation of Title VI of the
Civil Rights Act of 1964, and as the Regulations may be amended.

 

26.           CIVIL RIGHTS

 

Mesaba assures that it will comply with applicable
statutes, Executive Orders and such reasonable rules as are promulgated to
assure that no person shall, on the grounds of race, creed, color, national
origin, sex, age, or handicap be excluded from participating in any activity
conducted with or benefiting from federal assistance.  This provision obligates Mesaba or its transferee for the period
during which federal assistance is extended to the Airport program, except
where federal assistance is to provide, or is in the form of personal property
or real property or interest therein or structures or improvements
thereon.  In these cases, the provision
obligates the party or any transferee for the longer of the following
periods:   (1) the period during which
the property is used by the sponsor or any transferee for a purpose for which
federal assistance is extended, or for another purpose involving the provision
of similar services or benefits; or (2) the period during which the Airport
sponsor or any transferee retains ownership or possession of the property.  In the case of contractors, this provision
binds the contractors from the bid solicitation period through the completion
of the contract.

 

27.           GENERAL PROVISIONS

 

A.            Memorandum of Agreement

 

At the request of either party, the parties shall
execute a Memorandum of this Agreement for recording purposes.

 

B.            Waiver of Breach

 

The waiver by MAC or Mesaba of any breach of any term,
covenant or condition of this Agreement shall not be deemed to be a waiver of
any subsequent breach of the same or any other term, covenant or condition.

 

33

 

C.            Commitments to Federal or State Agencies

 

Nothing in this Agreement shall be construed to
prevent MAC from making such commitments as it desires to the Federal
Government or to the State of Minnesota in order to qualify for the expenditure
of Federal or State funds on the Airport.

 

D.            Sublease or Assignment

 

Mesaba may not assign any
of its rights under this Agreement without the prior consent of MAC, except
that Mesaba may assign any of its rights and obligations under this Agreement
to any of its respective Affiliates, including Northwest Airlines, Inc., and
its subsidiaries without the consent of MAC.

 

It will not be
unreasonable for MAC to disapprove or condition a sublease of the Leased
Premises if the proposed subleasee is not an Air Transportation Business, as
defined in the Airline Agreement with MAC.

 

In the event Mesaba
subleases or assigns the Leased Premises in accordance with the terms of this
Agreement, Mesaba will not charge, on a per square foot basis, more than 15%
above the per square foot cost being incurred by Mesaba.

 

E.             Taxes and Other Charges

 

Mesaba shall pay all real estate and personal property
taxes and assessments of any nature levied against Mesaba’s interest in the
Leased Premises or against any improvements made by Mesaba or equipment on the
Leased Premises, without deduction or set-off against the rent to be paid under
this Agreement.

 

F.             Headings

 

The headings in this Agreement are for convenience in
reference and are not intended to define or limit the scope of any provision of
this Agreement.

 

G.            Severability

 

If any part of this Agreement shall be held invalid,
this does not affect the validity of the remaining parts of this Agreement,
provided that such invalidity does not materially prejudice either MAC or
Mesaba under the remaining parts of this Agreement.

 

H.            Compliance With Laws

 

Mesaba shall comply with all applicable federal, state
and local laws, ordinances, resolutions, rules and regulations including those
of MAC relating to the Leased Premises and with respect to control of ground
and air traffic operations, de-icing operations, and the general use of the
Airport.

 

34

 

I.              Authority of MAC and Executive
Director

 

Whenever the term MAC or Commission appears in this
Agreement, including all parts thereof, it means the Metropolitan Airports
Commission, sometimes referred to as the Minneapolis-St. Paul Metropolitan
Airports Commission, and where this Agreement speaks of approval by or consent
of MAC or Commission, such approval or consent means action by the Executive
Director or a designated representative of MAC.

 

J.             Attorney’s Fees

 

In any action brought by either party for the
enforcement of any provisions of this Agreement, the party prevailing in said
action shall be entitled to recover reasonable attorney’s fees from the other
party.

 

K.            Minnesota
Law

 

This Agreement is governed by Minnesota Law.

 

L.             Entire Agreement

 

This Agreement supercedes all prior agreements between
the parties regarding the same premises on the Airport.  This Agreement may only be modified if done
in writing and executed by both parties.

 

Mesaba and MAC may also be party to an Airline
Agreement or other agreements regarding use of the Airport or airfield.  Should the provisions of this Agreement and
the Airline Agreement conflict, this Agreement governs with respect to the
Leased Premises; the Airline Agreement shall govern with respect to other parts
of the Airport or airfield.

 

35

 

In witness whereof, the parties have caused this Agreement to be
executed by their proper officer(s) or partner(s).

 

 

	
  Date: 
  September 30, 2002

  	
   

  	
  METROPOLITAN AIRPORTS COMMISSION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/  Gordon
  P. Wennerstrom

  	
   

  
	
   

  	
   

  	
  Gordon P. Wennerstrom

  Director, Commercial Management & Airline Affairs

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: 
  September 17, 2002

  	
   

  	
  MESABA AVIATION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/  Robert
  E. Weil

  	
   

  
	
   

  	
   

  	
   

  	
  Robert E. Weil

  Vice President & CFO

  
							

 

36

 

	
  STATE OF MINNESOTA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF HENNEPIN

  	
  )

  

 

 

This instrument was
acknowledged before me on the 30th day of September, 2002, by Gordon P.
Wennerstrom the Director of Commercial Management & Airline Affairs of the
Metropolitan Airports Commission.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  /s/ Elizabeth J. Hoium

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  	
   

  

 

 

	
  STATE OF MINNESOTA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF RAMSEY

  	
  )

  

 

 

This instrument was acknowledged before me on the 17th day of
September, 2002, by

 

 

Robert E. Weil, the Vice President & CFO of Mesaba Aviation, Inc.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  /s/ Jean M. Volkenant

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  	
   

  

 

37

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