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The SJU Airport Use Agreement

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The SJU Airport Use Agreement EXECUTION COPY AIRPORT USE AGREEMENT For LUIS MUÑOZ MARÍN INTERNATIONAL AIRPORT By and Among THE PUERTO RICO PORTS AUTHORITY And THE LESSEE And [AIRLINE] TABLE OF CONTENTS ARTICLE 1. DEFINITIONS ............................................................................................2 Section 1.1. Definitions.........................................................................................2 Section 1.2. Interpretation...................................................................................16 Section 1.3. Incorporation of Schedules; Revisions to Schedules.........................17 ARTICLE 2. TERM; REPRESENTATIONS; TRANSITION .....................................18 Section 2.1. Term of Agreement..........................................................................18 Section 2.2. Representations and Warranties.......................................................18 Section 2.3. Closing; Conditions to the Effective Date........................................21 Section 2.4. Assumed and Terminated Agreements.............................................23 Section 2.5. New Use Agreement; Extension ......................................................24 Section 2.6. Transition ........................................................................................24 Section 2.7. Changes in Fees...............................................................................24 ARTICLE 3. USES, RIGHTS AND PRIVILEGES .......................................................25 Section 3.1. Use of Facilities...............................................................................25 Section 3.2. Restrictions......................................................................................28 Section 3.3. Allocation and Use of Space............................................................30 Section 3.4. Operating Standards.........................................................................32 Section 3.5. Operation, Maintenance, Replacement and Repair ...........................34 Section 3.6. Removal of Airline Property............................................................35 Section 3.7. Ground-Handling Services...............................................................36 Section 3.8. Taxes, Licenses and Permits ............................................................37 Section 3.9. Performance by the Lessee upon Failure of the Airline ....................37 Section 3.10. Utilities............................................................................................37 Section 3.11. Rights Pertaining to Cargo Carriers..................................................38 Section 3.12. Governance......................................................................................38 ARTICLE 4. FEES..........................................................................................................39 Section 4.1. Total Annual Contribution...............................................................39 Section 4.2. Annual Contribution........................................................................39 Section 4.3. Landing Contribution.......................................................................40 Section 4.4. Parking Fees....................................................................................40 Section 4.5. Exclusive Use Rent..........................................................................41 Section 4.6. Terminal Contribution .....................................................................42 TABLE OF CONTENTS (continued) Section 4.7. Adjustments for Inflation.................................................................46 Section 4.8. Treatment of Affiliates.....................................................................46 Section 4.9. Puerto Rico Air Travel Promotion and Support Fund .......................46 ARTICLE 5. PAYMENTS..............................................................................................47 Section 5.1. Information on Airline Operations ...................................................47 Section 5.2. Statement of Estimated Annual Contribution ...................................47 Section 5.3. Adjustment to Statement of Estimated Annual Contribution ............48 Section 5.4. Monthly Payments...........................................................................49 Section 5.5. Statement of Actual Annual Contribution; Overpayment; Underpayment .................................................................................50 Section 5.6. Place of Payment .............................................................................50 Section 5.7. Late Payments .................................................................................50 Section 5.8. Security Deposits.............................................................................50 Section 5.9. Right to Contest; No Abatement or Set-Off......................................52 Section 5.10. No Other Fees and Charges..............................................................52 Section 5.11. Airline Books and Records ..............................................................54 Section 5.12. Lessee Books and Records...............................................................55 ARTICLE 6. CAPITAL PROJECTS .............................................................................55 Section 6.1. Initial Capital Projects .....................................................................55 Section 6.2. Passenger Facility Charges ..............................................................56 Section 6.3. Additional Capital Projects..............................................................56 ARTICLE 7. INDEMNIFICATION AND INSURANCE..............................................64 Section 7.1. Indemnification................................................................................64 Section 7.2. Insurance .........................................................................................65 Section 7.3. Waiver of Subrogation.....................................................................68 ARTICLE 8. AIRLINE RIGHTS WITH RESPECT TO THE LEASE AGREEMENT ..........................................................................................68 Section 8.1. Lessee Capitalization and Financing ................................................68 Section 8.2. Transfers by Lessee and Changes in Control....................................69 Section 8.3. Insurance Requirements...................................................................69 Section 8.4. Damage and Destruction; Completion of Work................................70 Section 8.5. Compliance Monitoring; Notice of Default......................................71 TABLE OF CONTENTS (continued) Section 8.6. Incident and Financial Reports.........................................................71 Section 8.7. Security Deposit ..............................................................................71 Section 8.8. Modifications under the Lease Agreement.......................................71 Section 8.9. Modifications to the Operating Standards ........................................72 Section 8.10. Lessee Work Plan............................................................................73 Section 8.11. Amendments to the Lease Agreement..............................................73 Section 8.12. General Provisions Concerning Airline Approvals ...........................73 Section 8.13. Approval of Plan for the Reconfiguration of Terminal Space ...........74 ARTICLE 9. COMPLIANCE WITH LAW...................................................................74 Section 9.1. Observance and Compliance with Laws...........................................74 Section 9.2. Compliance with Environmental Laws.............................................75 Section 9.3. Compliance with FAA Standards.....................................................76 Section 9.4. Non-Contravention..........................................................................77 Section 9.5. Local Goods and Services................................................................77 Section 9.6. Filing with the Office of the Comptroller of Puerto Rico..................77 Section 9.7. Code of Ethics .................................................................................77 ARTICLE 10. DEFAULT AND TERMINATION...........................................................78 Section 10.1. Default by Airline............................................................................78 Section 10.2. Remedies of the Lessee Upon Airline Default..................................79 Section 10.3. Defaults by the Lessee.....................................................................81 Section 10.4. Remedies of Airline Upon Lessee Default .......................................82 Section 10.5. Leasehold Mortgagee’s Right to Cure..............................................83 Section 10.6. Other Termination by the Airline.....................................................84 Section 10.7. Covenants Regarding Airport Operations; Termination by the Airlines upon Material Limitations on Operations............................85 Section 10.8. No Waiver.......................................................................................86 Section 10.9. Force Majeure..................................................................................86 Section 10.10. Limitation of Liability .....................................................................87 ARTICLE 11. DISPUTE
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