Exhibit 10.2
National Transportation Services, LLC
000 Xxxxxxx Xxxxx
Xxxxxxxxxx, Xxx Xxxxxx 00000
000-000-0000 Office
000-000-0000 Facsimile
March 1, 2003
Xxxxx Xxxxxxx, President
New York Cross Harbor Railroad Company
0000 Xxxxx Xxxxxx
Xxxxxxxx, XX 00000
Re: Option Agreement
Dear Xx. Xxxxxxx:
National transportation Services, LLC ("NIS") desires to enter into an
option agreement to lease approximately 5 acres at the Greenville Yard in Jersey
City, New Jersey (the "Property") to be utilized by NTS to submit a bid to
various municipalities to secure contracts regarding disposal of municipal solid
waste ("MSW"). The Property will be used for a facility to store empty
containers and railcars, owned by NTS, for the intermodal transfer of the MSW
from New York via New York Cross Harbor Rairoad ("NYCHRR") "Railcar Barge
Program". Our anticipated volume will be 2,000 tons per day or 12-15 railcars
per day. During the period in which this Option Agreement is in effect, NYCHRR
shall not market or in any way offer the Property to any other party.
NTS will provide and install all required track and equipment pursuant
to specifications (the "Improvements"). At the end of the term of the lease, the
Improvements will inure to the NYCHRR. In return for installing the
Improvements, NTS will receive a credit of $80.00 per car until the costs of the
Improvements, estimated to be $750,000 have been recouped.
This Option Agreement shall be for a period of 24 months (the "Option
Term"). Upon 90 days written notice, NTS may cancel this Option Agreement with
no further obligation to NYCHRR. Upon award of an anticipated contract, a
long-term 20-year agreement will be executed between NTS and NYCHRR guaranteeing
a minimum of 8 railcars per day, with NYCHRR receiving $350 per car as their
revenue requirement for traffic originating in Greeneville and/or and $450 per
car for any barged traffic.
Upon the execution of this Option Agreement, NTS will pay to NYCHRR an
option fee of $2,500 per month for the term of this Option Agreement ( the
"Option Fee"). NTS will pay 3 months advance for security deposit and $2,500 per
month thereafter. During the Option Term, the NYCHRR may not lease the Property,
but may utilize the property for its own use. Should NTS fail to secure an award
of a contract from the various municipalities for a minimum of 1,000 tons per
day of MSW, the Option Fee and this Option Agreement shall be cancelled.
If this Option Agreement is satisfactory, please sign indicating
NYCHRR's agreement and commitment to this proposal.
Sincerely,
Xxxxxx X. Xxxxxxx
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Xxxxxx X. Xxxxxxx
Managing Partner
Approved by New York Cross Harbor Railroad this 1st day of March 2003.
By: Xxxxx Xxxxxxx
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Xxxxx Xxxxxxx
President, NYCHRR
