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HomeMy WebLinkAboutAlaska Airlines Airport Use & Lease Agreement 6/23/2022DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271 F6CBF9 ro c)-cf-817 b / 2 -~ f-z '7_ FRESNO YOSEMITE International Airport AIRPORT USE AND LEASE AGREEMENT WITH ALASKA AIRLINES, INC. An Alaska Corporation 1 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271 F6CBF9 Section 5.18 Right of Set Off ................................................................................... 35 ARTICLE 6 -SECURITY DEPOSIT ............................................................................. 36 ..................................... 36 ............................................................................. 36 ....................................... 37 Section 6.01 Due Date, Type, Form and Amount of Surety Section 6.02 Drawdowns by City Section 6.03 Return/Surrender/Release of Surety by City ARTICLE 7: INDENTURE OF TRUST ......................................................................... 37 Section 7.01 Subordination to Indenture of Trust.. ................................................... 37 Section 7 .02 Flow of Funds ..................................................................................... 37 ARTICLE 8: MAINTENANCE AND OPERATION OF AIRPORT .................................. 37 Section 8.01 City's Responsibilities ......................................................................... 37 Section 8.02 Airlines Responsibilities ...................................................................... 38 Section 8.03 City's Right to Inspect and Make Repairs ........................................... 39 Section 8.04 Alterations and Improvements ............................................................ 40 Section 8.05 Payment Bond ................................. ................................................... 40 Section 8.06 Leasehold Improvements ....................................................................40 Section 8.07 Debts, Liens, Mortgages ..................................................................... 40 ARTICLE 9: DAMAGE OR DESTRUCTION OF PREMISES ....................................... 41 Section 9.01 Damage or Destruction ....................................................................... 41 ARTICLE 10: INDEMNIFICATION, INSURANCE AND RELEASE .............................. 41 Section 10.1 Indemnification ................................................................................... 41 Section 10.2 Insurance ............................................................................................ 43 Section 10.3 Non-liability of City .............................................................................. 46 ARTICLE 11 : ASSIGNMENT AND SUBLETTING ....................................................... 46 Section 11.01 Merger, Assignment and Subletting .................................................... 46 Section 11.02 Relinquishment of Space .................................................................... 46 Section 11.03 Bankruptcy ......................................................................................... 47 Section 11.04 Consent .............................................................................................. 4 7 ARTICLE 12: DEF AUL TS ............................................................................................ 47 Section 12.01 Default ................................................................................................ 47 ARTICLE 13: TERMINATION ...................................................................................... 48 Section 13.01 Conditions of Leased Premises at Termination .................................. 48 Section 13.02 Events Permitting Termination by City ................................................ 48 ARTICLE 14: GENERAL PROVISIONS ....................................................................... 49 Section 14.01 Compliance with Law .......................................................................... 49 ............................................................................................... 50 ......................................................... 51 ...................................... 51 ......................... 51 ........................................................................... 51 ...................................................... 52 ................................................................ ......................... 52 ............................................................................................ 52 ........................................................................................ 52 ............................ 52 ...................................................................................... 52 .............................................................. 52 ................................................................................. 53 Section 14.02 Notices Section 14.03 Successors and Assigns Bound Section 14.04 Governing Law, Venue and Attorney's Fees Section 14.05 Subordination to Agreements with U.S. Government Section 14.06 Nonwaiver of Rights Section 14.07 Federal Aviation Act, Section 308 Section 14.08 Severability Section 14.09 Headings Section 14.10 Bad Checks Section 14.11 Assignment by City or Other Successor in Interest Section 14.12 Authorization Section 14.13 Removal of Disabled Aircraft Section 14.14 Quiet Enjoyment 3 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 This Airport Use and Lease Agreement (Agreement) is made and entered into this 17 th day of March, 2022, by and between the City of Fresno, a municipal corporation, (City or Airport) and, Alaska Airlines, Inc., an Alaska Corporation admitted in good standing to do business in California, (Airline) and collectively referred to as the "Parties". RECITALS WHEREAS, City is the owner and operator of Fresno Yosemite International Airport located in the City of Fresno, County of Fresno, State of California, (Airport); and WHEREAS, Airline is engaged in the business of commercial air transportation of persons, property, cargo and mail as a scheduled air carrier and is certified or otherwise authorized by the United States Government to engage in such business; and WHEREAS, Airline wishes to provide commercial air transportation at the Airport on a non-exclusive basis and in competition with other passenger carriers engaged in similar businesses and, desires to enter into this Agreement, negotiated in common with all similar incumbent passenger carriers for the use of the Airport and its facilities; and WHEREAS, This Agreement shall supersede all previously executed agreements; and WHEREAS, The City has the right to lease property at the Airport and to grant the use of the Airport to Airline for the operation of Airline's passenger carrier service. AGREEMENT The Parties agree this Agreement is subject to the terms, covenants, conditions, agreements, warranties, and provisions herein contained and Airline expressly covenants and agrees, as a material part of the consideration for the Agreement, that Airline shall fully and faithfully comply with, keep, perform and/or observe each and every term, covenant, condition, agreement, warranty, and/or provision hereof to be complied with, kept performed, and/or observed by Airline. ARTICLE 1 -DEFINITIONS Section 1.01 Meanings and Construction. Except as otherwise clearly indicated by the context, the words and phrases defined in this Section shall have the following meanings when used elsewhere in this Agreement. Affi liate shall mean a passenger carrier that is designated by a Signatory Passenger Carrier on forms in Exhibit J, which is (i) controlled by, controlling, or under common control with a Signatory Passenger Carrier; or (ii) shares an International Air Transport Association (IAT A) flight designator code with a Signatory Passenger Carrier at the Airport (code sharing partner); or (iii) otherwise operates under essentially the same trade name as a Signatory Passenger Carrier at the Airport or uses essentially the same livery as Airline at the Airport. A Passenger Carrier shall only be deemed an Affiliate of a Signatory Passenger Carrier during those times in which the Passenger Carrier is acting for and on behalf of the Signatory Passenger Carrier. 5 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 starting from the first full Fiscal Year after the DBO of the project. For projects put in service prior to July 1, 2022, the interest rate shall be zero percent. Annual True-up shall mean the recalculation of Airline Rates and Charges of a Fiscal Year after the end of such Fiscal Year based on actual results pursuant to Article 5. Bond(s) shall mean all bonds, notes, or other obligations issued by the City pursuant to the Indenture of Trust. Capital Allowance shall mean an annual allowance for capital projects of four million dollars ($4,000,000). The Capital Allowance may be adjusted if the Agreement is extended beyond the initial five (5) year term. City shall mean the City of Fresno California, a municipal corporation. City Airports shall mean the airport known as the Fresno Yosemite International Airport, located within the City, and the airport known as the Fresno Chandler Executive Airport, located within the City, each as it now exists, including, without limitation, runways, taxiways, landing pads, aprons, beacon sites, obstruction lights, navigational and landing aids, control towers, facilities for storage of aircraft and for parking of automobiles, roadways, passenger and freight terminals, land, easements and rights in land for clear zone and approach purposes, maintenance hangars and related facilities and all equipment, buildings, grounds, facilities, utilities and structures owned, leased or operated in connection with or for the promotion or the accommodation of air commerce and air navigation and services in connection therewith, together with all additions, betterments, extensions, replacements, renewals and improvements thereto which may hereafter be undertaken, and any future airport or aviation facilities, or any interest therein, from time to time hereafter owned, operated or controlled in whole or in part by the City and determined by the City to be a part of the City Airports. Collecting Carrier means an issuing carrier or other carrier collecting a PFC, whether or not such carrier issues the air travel ticket. Common Use Facilities Policy and Procedures Manual (Common Use Policy) shall mean the policy and procedures manual provided by Director of Aviation, which describes the procedures lawful, reasonable, and impartial rules and regulations, including ordinances and operating directives, promulgated by the Director of Aviation or the City from time to time for the orderly operation of the Airport. Common Use Formula shall mean the formula for apportionment of the total monthly rental for Common Use Space, net of Non-Signatory Charter Carrier Terminal Use Fee payments if any, among the Signatory and Non-Signatory Passenger Carriers using the Common Use Space on the basis of: (a) twenty percent (20%) of the total monthly rental apportioned evenly among all Signatory and Non-Signatory Passenger Carriers using such space for the month; and (b) the remaining eighty percent (80%) of the total monthly rental prorated among all Signatory and Non-Signatory Passenger Carriers using such space on the basis of the ratio of each airline's Enplaning Passengers at the Airport divided by the total number of Enplaning Passengers at the Airport of all Signatory and 7 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 storage, transportation, or disposal of Hazardous Materials, including, without limitation, the Clean Air Act, 442 U.S.C. §7401 et seq.; the Clean Water Act, 33 U.S.C. §1251 et seq., as amended by the Water Quality Act of 1987; the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. §136 et seq.; the Marine Protection, Research, and Sanctuaries Act, 33 U.S.C. §1401 et seq.; the Noise Control Act, 42 U.S.C. §4901 et seq.; the Occupational Safety and Health Act, 29 U.S.C. §651 et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq., as amended by the Hazardous and Solid Waste Amendments of 1984; the Safe Drinking Water Act, 42 U.S.C. §300f et seq.; the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C §9601 et seq., as amended by the Superfund Amendments and Reauthorization Act, the Emergency Planning and Community Right to Know Act, and the Radon Gas and Indoor Air Quality Research Act; the Hazardous Material Transportation Act, 49 U.S.C. §5101 et seq.; and the Toxic Substance Control Act, 15 U.S.C. §2601 et seq.; the Atomic Energy Act, 42 U.S.C. 2011 et seq.; and the Nuclear Waste Policy Act of 1982, U.S.C. §1010 et seq. Environmental Permits shall mean any and all permits, licenses, approvals, authorizations, consents, or registrations required by Environmental Laws, whether federal, state or local, which pertain to the production, use, treatment, generation, transportation, processing, handling, disposal, or storage of Hazardous Materials. Event of Default shall mean an Event of Default as referred to in Article 7 and as defined in Section 9.01 of the Indenture of Trust. Exclusive Use Space shall mean the areas within the Terminal Building, as depicted on Exhibit B, in which Airline has the exclusive right of use in accordance with this Agreement. Fede ral Aviat ion Adm inistration or FAA shall mean the Federal Aviation Administration or any successor agency thereto. FIS Facility or FIS shall mean federal inspection services facilities as shown on Exhibit A, as may be modified, renovated and enlarged. FIS Fee Rate shall mean the rate for each FIS User established pursuant to Section 5.04. FIS Facility Cost Center shall mean and refers to FIS Facility and includes meeters and greeters area . FIS Facil ity Project shall mean the renovation and expansion of the FIS Facilities, as depicted by the City in the 2019 Master Plan for the Airport. FIS User(s) shall mean a passenger arriving on international flights using the FIS Facility at the Airport. Fiscal Year or FY refers to the City's fiscal year and shall mean the twelve-month period commencing July 1 and extending through June 30 of the following calendar year, or such other fiscal year as the City may establish by ordinance. 9 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 and Terminal Building Rental Rate divided by Enplaned Passengers of all Passenger Carriers using the Terminal Building Common Use Space and multiplied by One Hundred and Twenty-five Percent (125%). Notice shall mean a communication between the Parties to this Agreement performed in accordance with the requirements of Section 14.02. Operating Expenses shall mean the reasonable and necessary costs of operating, maintaining and administering the City Airports, as defined in the Indenture of Trust. Operating Reserve Fund shall mean Operating Reserve Fund as defined in the Indenture of Trust. Other Buildings and Areas shall mean buildings and areas at the Airport that are not part of the Airfield Area, Terminal Building or FIS Facility. Passenger Carriers shall include Signatory Passenger Carriers, Non-Signatory Passenger Carriers, and Non-Signatory Charter Carriers. Passenger Facility Charge or PFC shall mean charges imposed by the City pursuant to 49 U.S.C. § 40117and 14 C.F.R. Part 158, as amended or supplemented from time to time. Preferential Use Positions shall mean means those Gates, Aircraft Parking Positions and Common Use Ticket Counter Position within the Terminal Building, as depicted on Exhibit B. Rate Covenant shall mean Section 8.11 of the Indenture of Trust as hereafter may be amended. Rentable Space shall mean the number of square feet of space in the Terminal Building that is rentable to tenants, excluding public space, FIS Facility space, space used by City or the City's contractor and other space used by federal agencies for which City receives no rent, as may be determined by the Director of Aviation. Rents, Fees, and Charges shall mean for any Fiscal Year, all rents, fees, and charges payable by Airline pursuant to Article 5. The definition of Rents, Fees, and Charges excludes Passenger Facility Charge. Rolling Debt Service Coverage shall go into effect at DBO, and shall amount to 25 percent (25%) of the Debt Service for the Fiscal Year being calculated less 25 percent (25%) of the Debt Service for the prior Fiscal Year, plus similar coverage requirement for the Subordinated Indebtedness if any. Security Deposit shall mean an irrevocable letter of credit or another instrument acceptable to the City provided pursuant to Article 6. Security Fee shall mean the fee imposed on each Enplaned Passenger by the City to recover security related expenses, pursuant to Section 5.06. A Consumer Price Index adjustment may be applied to the Security Fee if the Agreement is extended beyond the initial five (5) year term. 11 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 B. The terms "hereby," "herein," "hereof," "hereto," "hereunder," and any similar terms used in this Agreement refer to this Agreement. C. Words importing persons shall include firms, associations, partnerships, trusts, corporations, and other legal entities, including public bodies, as well as natural persons. D. Any headings preceding the text of the articles and sections of this Agreement, and any table of contents or marginal notes appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction, or effect. E. Words importing the singular shall include the plural and vice versa. Words of any gender shall be deemed to include correlative words of the other gender. F. The term "including" shall be construed to mean "including without limitation," unless otherwise expressly indicated. G. All references to number of days shall mean calendar days. H. Words used in the present tense include the future. ARTICLE 2 -TERM OF THE AGREEMENT Section 2.01 Term The term of this Agreement shall commence on July 1, 2022, and shall expire at midnight on June 30, 2027, unless sooner terminated pursuant to the provisions hereof. Section 2.02 Condition Under Which the Agreement Becomes Effective The Agreement becomes effective if executed by Airlines accounting for at least 75% of Signatory Passenger Carriers' and Signatory Cargo Carriers' total Landed Weight from May 2021 -August 2021. Section 2.03 Options to Extend A. First Option: The first option to extend the term of this Agreement will be for an additional period of five (5) years, thereby ending June 30, 2032, upon the mutual agreement, in writing by side letter, of the City and the Signatory Passenger Carriers. The Signatory Passenger Carriers' and Signatory Cargo Carriers accounting for a combined total Landed Weight of no less than 67% for the calendar year 2025, must agree to the option, and written Notice must be given to the City prior to October 1, 2026. Upon receipt of this Notice, the City must notify the Signatory Passenger Carriers of its mutual agreement to extend the term of this Agreement prior to January 1, 2027. Signatory Passenger Carriers will be allowed to evaluate and adjust their space needs following the initial five (5) year term, and by no later than April 30, 2027, provide the City their adjusted space needs, if any. 13 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 B. Use in Common of Terminal Building. Airline shall have the right to use, in common with, and subject to the rights of others so authorized, the public areas and public facilities of the Terminal Building. C. Use in Common of Airfield Area. Airline shall have the right to use the Airfield Area, in common with others so authorized, to land, takeoff, fly over, taxi, tow, park, and condition Airline's aircraft. Airline shall have the right to park, service, deice, load, unload, and maintain Airline's aircraft and support equipment in areas designated by the City, subject to the availability of space. Airline shall not knowingly permit, without the consent of the City, the use of the Airfield Area or any portion thereof by any aircraft operated or controlled by Airline that exceeds the design strength or capability of such area as described in the then-current FM-approved Airport Layout Plan (ALP) or other engineering evaluations performed subsequent to the then-current ALP, including the then-current Airport Certification Manual, a copy of which shall be provided, upon request, by the City to Airline. D. Airline Operations. Airline shall have the right to handle reservations, sell tickets; document shipments; and load and unload ( i) persons through passenger loading bridges affixed to the terminal structure, (ii) property, (iii) cargo, and (iv) mail, including interlining with other airlines. Airline shall also be permitted to engage in the following activities at the Airport: 1. The operation of an air transportation system by aircraft for the carriage of persons, property, and mail, for compensation or hire, on a reasonable and not unjustly discriminatory basis, including all activities reasonably necessary to such operation including advertising and marketing associated with services offered by Airline and/or its partners. 2. The landing, taking off, flying over, taxiing, pushing, towing, loading, unloading, fueling, repairing, maintaining, conditioning, servicing, parking, storing, and testing of aircraft or other equipment of or operated by Airline, or other certificated air transportation company with which City has an applicable agreement, including the right to provide or handle all or part of the operations or services of such other company, all of which are subject to this Agreement. 3. The sale of tickets, documentation of shipments, handling of reservations, and the loading and unloading of persons, property, cargo, and mail at the Airport by such motor vehicles or other means of conveyance as Airline may desire to use in the operation of its air transportation system. However, City reserves the right to require any ground transportation commercial carrier (including Airline) regularly transporting persons to and from the Airport to first secure and thereafter hold a valid lease, license, permit, or other agreement with City for the right to carry persons to and from the Airport and shall pay City such rentals, fees, charges, and/or percentages of the 15 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271 F6CBF9 10. 11 . 12. 13. The installation, maintenance, and operation, at no cost to City, of such radio, communication, meteorological, and aerial navigation equipment and facilities at suitable locations on the Airport. The location of such equipment and facilities, method of installation, and type of equipment shall be subject to the prior written approval of City, and shall conform with all applicable federal, state, and local requirements. Airline is required to input and maintain flight information in the Multi-User Flight Information Display System (MUFIDS) installed by City to display flight information. Airline may use its own FIDS in its Leased Premises subject to the prior written consent of Director of Aviation and subject to such reasonable conditions as Director of Aviation may require. In order to maximize the utilization of hold room check-in podiums, hold room areas and other passenger facilities in the Terminal Building, City reserves the right, but is not hereby obligated, to install and require Airline to use common use gate information display technology and/or equipment (not to include Airlines customer service automation equipment). Until such time as City installs such equipment, Airline may install, at Airline's cost, identifying signs and/or gate information displays ("signage") at the podium in the holdroom of the Gate(s) assigned to Airline and/or other locations approved by City. City shall reasonably establish standards and/or guidelines regarding the dimensions, materials, and content of such signs, and the method of attaching the sign to the designated location. Any signage installed by Airline shall be at the risk of Airline. In the event that Airline shall be no longer assigned the use of the Gate(s), then, upon the request of City, Airline shall promptly remove such signage at Airline's expense. The provision of baggage porter skycap service, curbside airline baggage check-in services in the public areas of the Terminal Building. Airline may arrange with other airline to provide such services or may provide such services on its own behalf. Airline shall notify the City in writing as to what company is providing such services at the Airport. City reserves the right to require third party companies to enter into a lease or permit with the City for such services provided to Airline. The rights and privileges granted Airline under this Agreement with respect to the performance of ground services and activities in connection with its Air Transportation Business at the Airport may be exercised by Airline only for and on behalf of Airline for its regularly scheduled or unscheduled service and that of its affiliates, subsidiaries, and code share partners identified in this Agreement. Airline may, subject to the prior written approval by City, perform ground services for any Air Transportation Business using the Airport provided said company has executed an operating agreement or permit with the City and further provided that said company agrees to report its activity or arranges to have Airline report its activity in the manner described in this Agreement. 17 of 59 Do cuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271 F6CBF9 8 . C . D . E. F . Shall not do or permit to be done anything, either by act or failure to act, that shall cause the cancellation or violation of the provisions, or any part thereof, of any policy of insurance for the Airport, or that shall cause a hazardous condition so as to increase the risks normally attendant upon operations permitted by this Agreement. If Airline shall do or permit to be done any act not permitted under this Agreement, or fail to do any act required under this Agreement, which act or failure, in and of itself, causes an increase in City's insurance premiums, Airline shall immediately remedy such actions and/or pay the increase in premiums. Shall not dispose of or permit any employee, agent or contractor of Airline to dispose of any waste material, including but not limited to deicing materials, toxic waste, hazardous substance , hazardous waste, and Hazardous Materials (including hazardous materials as defined by federal and State of California regulations) except in accordance with controlling laws. Shall not keep or store any Hazardous Materials such as flammable liquids and solids, corrosive liquids, compressed gases, or magnetized or radioactive materials on the Airport except when all the following conditions are met: (1) such Hazardous Materials are stored in accordance with applicable standards established by National Fire Protection Association, any liquids having a flash point of less than one hundred degrees (100°) Fahrenheit shall be kept and stored as specified by NFPA #30; (2) said Hazardous Materials are under the control and care of designated and properly trained Airline personnel; (3) said Hazardous Materials are packaged , handled and stored in compliance with applicable Environmental Law including but not limited to: U.S. Department of Transportation, Environmental Protection Agency, and other applicable regulations for transport, pre-transport and storage of hazardous articles and materials; and (4) said materials shall be only stored in such storage areas as are designated and approved by Director of Aviation. Shall not install fuel storage tanks and pumping facilities for use in fueling any aircraft at the Airport without prior written approval of City. The granting of the right to store aviation fuels shall be subject to the execution of a separate agreement between Airline and City. Shall not maintain or operate in the Terminal Building or elsewhere at the Airport a cafeteria, restaurant, bar or cocktail lounge for the purpose of selling or dispensing food or beverages to the public or passengers; nor shall Airline in any manner otherwise provide for the sale or dispensing of food and beverages at the Airport except that the Airline may provide vending machines solely for the sale of hot and cold beverages, food and confections to Airline employees in areas not accessible to the general public. Airline may dispense snacks, drinks, and/or in­ flight meals at the Gate to only those persons traveling on such flight. Airline may, by separate agreement with the City and to the extent it does not conflict with any terminal concession agreements, engage in the provision or sale of food or beverages at any A irline clubroom or similar private facility at the Airport. These provisions shall not apply to snacks or drinks provided to passengers by the Airline 19 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271 F6CBF9 A . Airline shall not do or permit its agents, employees, and its contractors or suppliers, while such contractors or suppliers are providing services to Airline, to do anything at the Airport that would be in conflict with or violate the requirements of any federal, state, or local law, regulation or security directive regarding airport security, as they may be amended from time to time, or the Airport's security program. B . Airline shall be responsible for obtaining and coordinating any security badging, vehicle decals, and/or any other actions required to ensure that Airline's agents, employees, contractors, or suppliers are in compliance with the City's approved security plan, and any federal regulation and security directive regarding airport security, as they may be amended from time to time. Airline shall be responsible for all costs associated with obtaining such badge and/or access privileges. Section 3.06 Reassignment, Reallocation, Redesignation, Relocation and/or Recaptu re of Leased Premises City may reassign, reallocate, re-designate and/or relocate Airline's Leased Premises as City, in its reasonable discretion, determines is necessary, after sixty (60 days) written notice to the Airline, under the operational needs of the Airport. The reasonable costs of any such reassignment, re-designation, reallocation or relocation shall be paid by the City. ARTICLE 4 -PREMISES Section 4.01 General The City intends to maximize the utilization and flexibility of current Airport facilities to meet changing air service demands. Section 4.02 Leased Premises A. Common Use Space: The City hereby leases to Airline, subject to the provisions of this Agreement, the Common Use Space as shown on Exhibit A. Airline accepts the Common Use Space in "As Is" condition, with no warranties or representations, expressed or implied, oral or written, made by the City or any of its agents or representatives; provided, however, that this Subsection 4.02A shall in no way diminish the City's obligations as otherwise provided for in this Agreement. B . Exclusive Use Space: The City hereby leases to Airline, subject to the provisions of this Agreement, the Exclusive Use Space as shown on Exhibit B. Airline accepts the Exclusive Use Space in "As Is" condition, with no warranties or representations, expressed or implied, oral or written, made by the City or any of its agents or representatives; provided, however, that this Subsection 4.028 shall in no way diminish the City's obligations as otherwise provided for in this Agreement. 21 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 B. All Gates shall remain as Common Use Space as defined in and as further explained in the Common Use Policy provided that such the Common Use Space designation shall not contravene the Airlines rights of its Preferential Use Position for its "operations as scheduled". Section 4.04 Use of Loading Bridges A. Any loading bridges financed and maintained by City shall be made available to all airlines serving the Airport on a Common Use basis unless assigned for Preferential Use Position. B . The use of City-owned loading bridges shall be subject to the following terms and conditions: 1. The bridges shall be operated only by employees or agents of Airline, but no such employees or agents shall be permitted to operate the bridges until they have satisfactorily completed a course of instruction conducted by City or City's designee in the proper use and operation of the bridges, and have received a certificate or written notice from City or City's designee qualifying them to operate the bridges . 2. City and Airline each shall be solely responsible for any and all damages, claims, or injuries which may be caused by the negligent use of the bridges by their respective employees, agents, or servants, and each shall indemnify, defend and hold harmless the other and their respective officers, agents, and employees from any and all demands, losses, liabilities, or judgments and all claims of every kind and character, together with costs and expenses incident thereto, arising from or as a result of negligent acts or omissions thereof in connection with or arising from use of the loading bridges, provided that City's liability shall not exceed the lesser of proceeds payable from its self-insurance retention or $1,000,000. Each party shall notify the other, in writing, of any claims , damages, or injuries promptly after discovery of same by the party charged with giving notice. 3 . Airline shall be solely responsible for any damage to bridges caused by the action of its employees or agents. 4 . City, during the term of this Agreement, shall maintain and keep in good repair the loading bridges. Section 4.05 Accommodati on in City-Controlled Facilities The City may retain under its exclusive control and possession certain facilities in the Terminal Building, including , initially, the facilities described and shown on Exhibit A. It is the intent of the City to use, at its discretion, any of the City-controlled facilities to accommodate: (i) airlines not requiring permanent facilities or airlines requiring temporary accommodation pending allocation of permanent facilities , and (ii) the needs 23 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 parts. Airline agrees to reimburse City for any net costs incurred by City if City elects to remove or dispose of Airline's property after such thirty (30) day period. C. Ownership of any and all property not removed by Airline within the said thirty (30) day period shall, at the option of City, vest in City. Section 4.09 Access A. Subject to the provisions hereof and such restrictions as City may impose with respect to Airline's use of the Leased Premises pursuant hereto, City hereby grants to Airline, its agents, suppliers, employees, contractors, passengers, guests, and invitees, the right and privilege of free and unrestricted access, ingress, and egress to the Leased Premises and to public areas and public facilities of the Terminal Building. B . The ingress and egress provided for in Section 4.09(A) shall not be used, enjoyed, or extended to any person engaging in any activity or performing any act or furnishing any service for or on behalf of Airline that Airline is not authorized to engage in or perform under the provisions hereof unless expressly authorized in writing by City. C . City shall have the right at any time to close, relocate, reconstruct, change, alter, or modify any such means of access provided for Airline's use pursuant to this Agreement or otherwise, either temporarily or permanently, provided that reasonable notice to Airline and a reasonably convenient and comparable means of access, ingress, and egress shall exist or be provided in lieu thereof. City shall suffer no liability by reason thereof and such action shall in no way alter or affect any of Airline's obligations under this Agreement. ARTICLE 5 -CALCULATIONS OF RENTS, FEES AND CHARGES Section 5.01 Coord in ation Process Effective July 1, 2022, and for each Fiscal Year thereafter for the term of this Agreement, Airline Rates and Charges shall be calculated based on the principles and procedures set forth in this Article. The methodology for the calculation of Airline Rates and Charges described in this Article is illustrated in Exhibit D, Exhibit F, and Exhibit G. A. On or about February 15 of each year, the City shall provide Airline's properties representative with a calculation of the Signatory Credit, as illustrated in Exhibit H. 8. On or about April 1 of each year, the Signatory and Non-Signatory Passenger Carriers, including Airline, shall provide the City with an estimate of their Landed Weights of all aircraft expected to be landed at the Airport during the ensuing Fiscal 25 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 3. Amortization Charges; plus 4. Operating Expenses; plus 5. Required deposit to the Operating Reserve Fund, if any; minus 6. Airfield Area Credit; plus or minus 7. Result of Annual True-up of the applicable prior Fiscal Year; equals 8. Airline Airfield Area Net Requirements, divided by 9. Landed Weight of Passenger Carriers and Cargo Carriers, equals 1o. Landing Fee Rate B . The Airfield Area Credit is made up of the following annual amounts: 1. Military use fees; 2. Fuel flowage fees; 3. Tower area rentals; 4. Government land rentals; 5. U.S. Forest Service landing fees; 6. COVID-19 Federal Operating Grants C . Activities in Section 5.03, 5.04, 5.05, 5.06, 5.09, 5.10 and 5.11 shall include the activities of each Signatory Passenger Carrier's Affiliates. Section 5.04 FIS Fee Rate A. FIS Fee Rate shall be calculated by adding and subtracting the following amounts allocable to the FIS Facility Cost Center, as listed below: 1.-Debt Service (net of PFC revenues applied to eligible debt service, if any); plus 2 . Rolling Debt Service Coverage; plus 3 . Amortization Charges; plus 4 . Operating Expenses; plus 5 . Required deposit to the Operating Reserve Fund, if any; minus 6. Applicable credits including COVID-19 Federal Operating Grants; plus or minus 7. Result of Annual True-up of the applicable prior Fiscal Year; equals 8. Airline FIS Net Requirements, divided by 9. FIS Users, equals 10. FIS Fee Rate A. The maximum FIS Fee Rate shall not exceed $12.00 per FIS User through the D8O of the FIS Facility Project, or $15.00 thereafter for the remaining term of this Agreement. B . The City will use its best efforts to obtain the Port of Entry status, which would transfer the staffing of the FIS Facility to the CBP, resulting in a decline of the calculated FIS Fee Rate. 27 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 B. For the use of FIS Facility, the product of (a) FIS Users of the Non-Signatory Passenger Carrier and (b) One Hundred and Twenty-five Percent (125%) of FIS Fee Rate. C . Other charges that may be established by the City pursuant to Section 5.06. Section 5.08 Charges fo r No n-S ig nat ory Charter Carrier The City shall charge Non-Signatory Charter Carriers fees and charges published in the Master Fee Schedule. Section 5.09 Passenger Facility Charge (PFC) A. City shall have the right to assess passengers a PFC for the use of the Airport in accordance with the requirements of 14 CFR Part 158 ("PFC Regulations") and any other relevant governmental directives, statutes, orders or provisions. In accordance therewith and to the extent required by 14 CFR Part 158, the Collecting Carrier shall collect on behalf of and remit to City any such PFC charges. Any charges so collected shall, pending remittance to City, be held in trust in accordance with federal law. City shall have the right to use all such passenger facility charges collected in any lawful manner. B . Collecting Carrier and City shall be bound by and shall observe all of the provisions of 14 CFR Part 158 and any other relevant governmental directives, statutes, orders or provisions, as they apply to either or both parties. C. If Collecting Carrier fail(s) to collect, maintain in trust and remit PFC revenue to the City within the time limits and in the manner established by federal regulation, Collecting Carrier shall be deemed to be in default of this Agreement. Any late payment of PFCs shall be subject to interest compounded in accordance with Section 5.14, to the extent allowed by law. D . PFCs to be Held in Trust for the City 1. In the event that Collecting Carrier fails to make payments of PFCs to City in accordance with the PFC Regulations and within ten (10) calendar days after receipt of a written notice of non-payment from City, City may require Collecting Carrier to establish a PFC trust account pursuant to this section 5 .09. In the event City requires Collecting Carrier to establish a PFC trust account, and notwithstanding Section 158.49 of the PFC Regulations, upon receipt of PFCs that are collected by Collecting Carrier, Collecting Carrier shall at its own cost establish and shall deposit the net principal amount of such PFCs in a trust account for City's benefit (the "Trust Account"). City and Collecting Carrier agree that the Trust Account shall be held in the name of Collecting Carrier as trustee for City provided that City and Collecting Carrier mutually agree to terms upon which amounts may be withdrawn from such account upon the joint direction of City and Collecting Carrier. If City and Collecting Carrier do not so 29 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 If, at any time during any Fiscal Year, the City estimates that the total costs attributable to the Terminal Building and Airfield Area Cost Centers, or the aggregate Landed Weight for Passenger Carriers and Cargo Carriers, or the enplanement forecast, will vary 10% or more from the estimates used in setting Airline Rates and Charges in accordance with the provisions of Article 5, such rates may be adjusted based on the new estimates and in accordance with the principles and procedures set forth in this Article. The City shall notify Airline of any such rate adjustment, along with a written explanation of the basis for such rate adjustment, 30 days prior to the effective date of the new rates. Unless extraordinary circumstances warrant additional adjustments, the City shall limit any such rate adjustments to no more than once during each Fiscal Year. During any Fiscal Year, if the City anticipates that the minimum annual debt service coverage ratio of 1.25 times may not be met, as required by the Rate Covenant, the City will adjust Airlines Rates and Charges as necessary, including using Rentable Space instead of Usable Space in Section 5.02 Item A.8, and modifying Airfield Area Credits in Section 5.03 item 8. Section 5.11 An nual True -up A. As soon as possible following the completion of the annual audit for a Fiscal Year, the City shall recalculate Airline Airfield Area Net Requirement, Airline FIS Net Requirement, and Airline Terminal Building Net Requirement based on actual audited data, and compare actual requirements to collected requirements. Variances shall be addressed as detailed below: 1. If the actual Airline Airfield Area Net Requirement exceeds the collected Airline Airfield Area Net Requirement, the underpayment shall be added to the Airline Airfield Area Net Requirement in the ensuing Fiscal Year. 2. If the actual Airline FIS Net Requirement exceeds the collected Airline FIS Net Requirement, the underpayment shall be added to the Airline FIS Net Requirement in the ensuing Fiscal Year. 3. If the actual Airline Terminal Building Net Requirement exceeds the collected Airline Terminal Building Net Requirement, the underpayment shall be divided by the Leased Premises of Passenger Carriers and add to the calculation of Terminal Building Rental Rate in the ensuing Fiscal Year. 4. If the actual Airline Airfield Area Net Requirement is less than collected Airline Airfield Area Net Requirement, the overpayment shall be subtracted from the Airfield Area Net Requirement in the ensuing Fiscal Year. 5. If the actual Airline FIS Net Requirement is less than collected Airline FIS Net Requirement, the overpayment shall be subtracted from the Airline FIS Net Requirement in the ensuing Fiscal Year. 6. If the actual Airline Terminal Net Requirement is less than collected Airline Terminal Net Requirement, the overpayment shall be divided by the Leased 31 of 59 DocuS ign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 Signatory Cargo Carriers, subject to annual maximum amount of two million dollars ($2,000,000). The unused amount of the Signatory Credit, if any, shall continue to be applied in the ensuing Fiscal Year. C. The cumulative amount of the Signatory Credit earned during the initial term of this Agreement shall not exceed seven million and five hundred thousand dollars ($7,500,000). D. If Airline ceases operation at the Airport, resulting in Signatory Credit exceeding the remaining invoice amount, the difference shall be kept by the City and used for any lawful purposes. E . To the extent that Rate Covenant is not projected to be met in a given Fiscal Year, the City shall have the right to postpone the Signatory Credit. Section 5.13 Monthly Activity Report A. Airline shall furnish to Director of Aviation on or before the fifteenth (15th) day of each month, an accurate written report of Airline's operations at the Airport during the preceding month, setting forth all data necessary to calculate the rentals, fees, and charges due under this Agreement. The report form shall be provided by the Director of Aviation and shall include, but shall not necessarily be limited to (a copy of the report is attached hereto and incorporated herein as Exhibit K: 1. Airline's total number of aircraft arrivals for the month by type of aircraft, the maximum certificated gross landing weight of each aircraft, and the total airline landed weight for the month to include any non-scheduled and charter operations; 2. Total number of enplaning and deplaning passengers of Airline and aircraft of other airlines handled by Airline (so long as those handled airlines are not otherwise required to report on those same aircraft); 3. Weight of cargo freight, mail, and express for the month; and 4. Other such information that City may reasonably request from Airline to prepare airline invoices and establish and assess rates and charges. 8. If Airline fails to furnish Director of Aviation with the report required by Section 5.13 (A) by the date specified within Section 5.13(A), then Airline's rentals, fees, and charges, as provided for the month thereafter, shall be determined by assuming that Airline's Total Airline Landed Weight and Enplaned Passengers for such month was one hundred twenty-five percent (125%) of its Total Airline Landed Weight and Enplaned Passengers during the most recent month(s) for which such data are available for Airline and by applying the rates of the Fiscal Year. Any necessary adjustment in such rentals, fees, and charges shall be calculated after an accurate report is delivered to Director of Aviation by Airline for the month(s) in 33 of 59 \ DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271 F6CBF9 and delivered or wired, as applicable, to the following address or account, or to such other address or account as City by service of written notice upon Airline , may otherwise direct the payment thereof from time to time during the term hereof: Via Mail/Express City of Fresno -Airports Fresno Yosemite International Airport Attn.: Airport Accounting 4995 East Clinton Way Fresno, CA 93727-1504 Section 5.16 Taxes Airline shall pay all taxes of whatever character that may be lawfully levied, assessed, or charged upon the property, real and personal, occupied, used , or owned by Airline, or upon the rights of Airline to occupy and use the premises and emolument received thereby, or upon Airline's rights or operations hereunder or services provided by Airline at the Airport. Airline shall have the right, at its sole cost and expense , to contest the amount or validity of any tax. 1 Section 5.17 Records of Airlin e Airline shall make available to City, upon the written request of the City , at the offices of the Airline at the Airport such books, records and accounts, or photocopies thereof, that are relevant to payment of rentals, fees and charges required under this Agreement for the current year and the preceding calendar year, and shall make such records, or photocopies thereof, available for inspection and audit by City or its authorized representative at reasonable and mutually agreed upon hours and times during the entire term of this Agreement and for two (2) years thereafter. Section 5. 18 Right of Set Off The City shall have the right to set off any past due amount(s) by applying all or a portion of current payments to such past due amount(s). In the event a disputed charge becomes past due, if resolved in favor of Airline, said overpaid amounts shall be credited to the next amount due under this Agreement. If the Agreement is terminated, it shall be credited to amounts due by or to Airline. Past due amounts may include sums due on prior agreements, this Agreement or for usage of the Airport as a Non-Signatory Airline. In the event the City exercises the right, it shall notify Airline. Airline shall be responsible for promptly submitting such a sum as will reflect the total amount needed to satisfy current amounts due. Regardless of the foregoing, City shall not have the right to offset past due amounts which Airline has notified the City, in writing, are disputed by Airline, 1 Any interest in real property which exists as a result of possession, exclusive use, or a right to possession or exclusive use of any real property (land and/or improvements located therein or thereon) which is owned by the City of Fresno (City) is a taxable possessory interest unless the possessor of interest in such property is exempt from taxation. With regard to any possessory interest to be acqu ired by Airline under th is Agreement, Airline, by its signatures hereunto affixed , warrants , stipulates, confirms, acknowledges and agrees that, prior to executing this Agreement, Airline either took a copy of this Agreement to the office of the Fresno County Tax Assessors or by some other appropriate means independent of City or any employee, agent, or representative of City determined, to Airline 's full and complete satisfaction , how much Airline will be taxed, if at all . 35 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 C. In the event City finds it necessary to draw down on the surety instrument more than two times for any reason, the third draw down shall itself constitute grounds for default and breach of this Agreement by Airline. Section 6.03 Return/Surrende r/Release of Surety by City The surety instrument shall be returned to Airline not later than sixty (60) days after termination of this Agreement, provided there are no outstanding claims against the Airline by City. ARTICLE 7: INDENTURE OF TRUST Section 7.01 Subordination to Indenture of Trust This Agreement and all rights of Airline hereunder are expressly subordinated and subject to the lien and provisions of any pledge, transfer, hypothecation, or assignment made at any time by City pursuant to the terms, covenants (including the Rate Covenant), and conditions of the Indenture of Trust, Supplemental Indentures, and future indentures. In conflicts between this Agreement and the Indenture of Trust, the Indenture of Trust shall govern. All definitional terms that are not specifically defined herein are to have the meanings set forth in the Indenture of Trust. Section 7.02 Flow of Funds Subject to the terms and provisions of the Indenture of Trust and other related instruments, it is mutually understood and agreed that, as long as any Bonds secured by the Indenture of Trust are outstanding, bond proceeds and all Airport revenues shall be deposited, maintained, and paid as set forth in the Indenture of Trust. ARTICLE 8: MAINTENANCE AND OPERATION OF AIRPORT Section 8.01 City's Responsibilities In accordance with Exhibit I, attached hereto and incorporated herein, and except to any extent otherwise expressly provided in this Agreement: A. City agrees that it will, with reasonable diligence, keep the Airport and its aerial approaches reasonably free from obstruction and interference for the safe and proper use thereof by Airline; and will develop, maintain, and operate the Airport in all respects in a manner at least equal to the standards or rating established by the FAA and any other governmental agency having jurisdiction thereof, except for conditions beyond the reasonable control of City. City shall not be liable to Airline for temporary failure to so perform, whether due to mechanical breakdown or for any other causes beyond the reasonable control of City. B. City, with its own forces or by contract, shall operate and maintain and keep in good condition the Terminal Building and all additions, improvements, facilities, 37 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271 F6CBF9 For purposes of this Section, structural repairs are defined as repairs to the roof, insulation, foundation and exterior walls of the Terminal Building. D. Airline shall immediately repair any damage in any other space at the Airport occasioned by the activities, fault or negligence of Airline, its servants, agents, employees, licensees, passengers, and invitees at its sole expense. E . Airline shall not erect, maintain, or display on its Leased Premises or anywhere in the Terminal Building in the public view any billboards, banners, advertising, promotional signs, or materials without the prior written approval of Director of Aviation. F . Airline expressly agrees that City shall not be liable to Airline, for bodily injury or for any loss or damage to real or personal property occasioned by flood, fire, earthquake, lightning , windstorm, hail, explosion, riot, strike, civil commotion, smoke, vandalism, malicious mischief, or acts of civil authority. G. Airline shall provide and maintain hand fire extinguishers for the interior of its Exclusive Use Space in accordance with applicable safety codes. H . Airline shall, in conducting any activity or business at the Airport, including environmental responses or remedial activities, comply with all applicable Environmental Laws, as discussed in detail in Section 14.19. Section 8.03 City's Righ t to Inspect and Ma ke R~pa irs City, by its Director of Aviation or authorized officers, employees, agents, contractors, subcontractors, and other representatives, shall have the right at any time in the case of emergencies or upon request of the Airline, otherwise during normal business hours upon reasonable notice to Airline, and in any event in a manner as to not unreasonably interfere with Airline's normal operations, to enter upon Airline's Exclusive Use Space, accompanied by an authorized Airline representative, if practicable, for the following purposes: A. To inspect such space to determine whether Airline has complied and is in compliance with the terms and conditions of this Agreement. 8. Upon reasonable notice and opportunity to perform, except in emergencies, to perform such maintenance, cleaning, or repair as City reasonably deems necessary, if Airline fails to perform its obligations under Section 8.02, and to recover the actual cost of such maintenance, cleaning, or repair from Airline, plus a fifteen percent (15%) administrative charge from Airline upon invoice. C . Upon reasonable notice, except in emergencies, to perform such maintenance, cleaning, or repair as City reasonably deems necessary, and which is the responsibility of the City under this Agreement. 39 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 Airline shall pay promptly when due and owing, all bills, debts and obligations incurred by Airline in connection with its operations or activities on Leased Premises at the Airport, and shall not permit the same to become delinquent. Except as expressly approved by City in writing, Airline shall not permit any mechanics' or material men or any other lien to be attached to or be foreclosed upon Leased Premises at the Airport or improvements thereto. Airline shall suffer no lien, mortgage, judgment, or execution to be filed against the Leased Premises at the Airport or improvements thereon. If any lien shall be filed against the Leased Premises, Airline shall take action, including the payment of and/or bonding against the amount of the lien, to cause such lien to be removed within twenty (20) business days of recordation of the lien. ARTICLE 9: DAMAGE OR DESTRUCTION OF PREMISES Section 9.01 Damage or Destruction A. If the Airline Leased Premises or any portions thereof, or buildings or structures of which space may be a part, are damaged by fire or other casualty not caused by Airline, Director of Aviation shall notify Airline within sixty (60) days whether the space will be repaired. If the space is to be repaired, it shall be repaired with due diligence by City, and the rent allocable to the particular building, rooms, or other portion of the space rendered untenantable shall be abated for the period from the occurrence of the damage to the completion of the repairs, provided that City shall exert its best effort to provide Airline with temporary substitute space, if available, at such rent as deemed necessary and reasonable by City, until such time as the repairs are completed. City shall provide a credit to the Airline's account for any amounts deemed to be paid in advance for all or the portion of the Leased Premises rendered untenatable. B. For damage, not caused by Airline, Airline shall notify Director of Aviation in writing within 30 days, if Airline will not be able to operate to its reasonable satisfaction without repair of the damaged space. C. If the Director of Aviation shall fail to notify Airline of its decision within sixty (60) days after destruction, City shall be deemed to have elected to terminate the provision of this Agreement as to only the space damaged and destroyed. The specific location, and the Agreement shall automatically terminate as to such space as of the date of the damage or the entire Agreement if Airline is not able to operate to its reasonable satisfaction as a result of the damage, provided Airline gave timely notice as required in 9.01 B above. In such case, any amounts due under this Agreement shall be proportionately abated from the time of such damage, and City shall reimburse Airline for any amounts paid in advance for all or the portion of the Leased Premises rendered untenantable, provided there are no past due amounts on the account. ARTICLE 10: INDEMNIFICATION, INSURANCE AND RELEASE Section 10. 1 Indemnification 41 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271 F6CBF9 Leased Premises, or all or any part of the Airport, including, but not limited to, use of any Common Use Space and/or Exclusive Use Space , upon which the Leased Premises is located, in any way related to the Airline's operations and activities. This waiver shall not extend to any and all loss, liability, fines, penalties, forfeitures, costs, or damages caused solely by the gross negligence, or by the willful misconduct of City. D. Airline shall immediately notify City of any occurrence arising from Airline's use of any Common Use Space and Exclusive Use Space, upon which the Leased Premises is located, resulting in injury or death to any person or damage to property of any person. E . If Airline should contract any work on the Leased Premises or subcontract any of its obligations under this Agreement, Airline shall require each consultant, subconsultant, contractor and subcontractor to indemnify, hold harmless and defend City and its officers, officials, employees, agents and volunteers in accordance with the terms of this Section. F. The provisions of this Section shall survive the termination or expiration of this Agreement. Section 10.2 Insurance A. Throughout the life of this Agreement, Airline shall pay for and maintain in full force and effect all policies of insurance required hereunder with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated not less than "A-VII" in Best's Insurance Rating Guide, or (ii) authorized in writing by City's Risk Manager or his/her designee. The following policies of insurance are required: (i) COMMERCIAL GENERAL LIABILITY insurance which shall be at least as broad as Insurance Services Office (ISO) form CG 00 01 and shall include coverage for "bodily injury", "property damage" and "personal and advertising injury", including premises and operation, products and completed operations, and contractual liability with limits of liability of not less than $5,000,000 per occurrence for bodily injury and property damage, $1 ,000,000 per occurrence for personal and advertising injury, $5,000,000 aggregate for products and completed operations and $10,000,000 general aggregate. Airline may substitute Airport Liability insurance for this insurance provided the coverage is as broad as required and the limits of liability are not less than required. (ii) AIRCRAFT LIABILITY insurance shall include coverage for bodily injury to passengers and non-passengers, property damage and cargo legal liability with combined single limits of liability of not less than $100,000,000 per occurrence for bodily injury, property damage and cargo legal liability for aircraft under 60,000 GTW and $350,000,000 per occurrence for bodily 43 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271 F6CBF9 E. F. G. H. I. this Agreement, Airline shall provide a new certificate, and applicable endorsements, evidencing renewal of such policy prior to the expiration date of the expiring policy. The General Liability (or Airport Liability, if applicable), Aircraft Liability, Pollution and Automobile Liability insurance policies shall be written on an occurrence form and shall name City, its officers, officials, agents, employees and volunteers as an additional insured. Such policy(ies) of insurance shall be endorsed so Airline's insurance shall be primary and no contribution shall be required of City. The coverage shall contain no special limitations on the scope of protection afforded to City, its officers, officials, employees, agents, and volunteers. All policies of insurance including the Workers' Compensation insurance policy shall contain a waiver of subrogation as to City, its officers, officials, agents, employees, and volunteers. Airline shall furnish City with all certificate(s) and applicable endorsements effecting coverage required hereunder. All certificates and applicable endorsements are to be received and approved by the City's Risk Manager or his/her designee prior to City's execution of the Agreement. Such evidence of insurance shall be provided City at the following address: City of Fresno -Airports Department Properties Division 4995 E. Clinton Way Fresno, CA 93727 Or via email at FYI.Properties@fresno.gov Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Agreement. No action taken by City hereunder shall in any way relieve Airline of its responsibilities under this Agreement. The fact that insurance is obtained by Airline shall not be deemed to release or diminish the liability of Airline, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify City and its officers, officials, employees, agents and volunteers shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Airline. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Airline. Airline and its insurers hereby waive all rights of recovery against City and its officers, officials, employees, agents and volunteers, on account of injury, loss by or damage to the Airline or its officers, officials, employees, agents, volunteers, invitees, consultants, subconsultants, contractors and subcontractors, or its property or the property of others under its care, custody, and control. Airline shall give notice to its insurers that this waiver of subrogation is contained in this 45 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 reasonable efforts to reassign the space to another airline. No such reassignment, vacation, transference, conveyance, or sublease shall release Airline from its obligations under this Agreement including responsibility for payment of rent, utilities, fees and other charges, without, specific written consent by City to such release. Airline shall be responsible for returning all relinquished space to the condition upon it was given, normal wear and tear accepted. Section 11.03 Bankruptcy Section 11.01 shall not apply to any valid assumption and/or assignment of this Agreement, the leased space, or any part thereof, by a trustee, or by Airline as a debtor in possession under the Bankruptcy Code of 1978, as amended, including the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (collectively the "U. S. Bankruptcy Code"), provided that adequate assurance of future performance as provided by the U. S. Bankruptcy Code is to be provided, in writing, as a condition of the assumption and/or assignment of this Agreement. Such assurance shall include but shall not be limited to: A. Adequate assurance of the reliability of the proposed source for the rental, utilities, fees or other charges due under this Agreement upon the assumption and/or assignment of this Agreement; 8 . Adequate assurance that all other consideration due under this Agreement shall be forthcoming after the assumption or assignment of this Agreement and that any defaults thereunder shall be cured; and C. The procurement of a bond from a financially reputable surety covering any costs or damages which the City reasonably estimated the City would incur in the event that City, within three (3) years following the assumption and/or assignment of this Agreement, becomes entitled to and exercises any right to reassign the lease covered by this Agreement under this Agreement. Section 11.04 Consent Consent by City to any type of transfer provided for by this Article 11 shall not in any way be construed to relieve Airline from obtaining further consent for any subsequent transfer, assignment, and/or assumption of any nature whatsoever. ARTICLE 12: DEFAULTS Section 12.01 Default If Airline and/or its Affiliates, and/or subsidiaries (1) fails to pay rent or any other payment past due hereunder within ten (10) calendar days after receipt of written notice of a past due account under Article 5 or elsewhere in this Agreement, or (2) fails to keep and perform any of its other covenants and agreements hereunder and such failure continues for thirty (30) calendar days after receipt of written notice of such failure, or (3) fails to 47 of 59 DocuSign Envelope 10: FADF5140-9ECA-422F-9217-85A271F6CBF9 4. Airline voluntarily abandons the Leased Premises for a period exceeding sixty (60) days; 5. Airline defaults in the performance of any of the covenants and conditions required herein ( except rental payments) to be kept and performed by Airline, and such default continues for a period of thirty (30) days after receipt of written notice from Director of Aviation to cure such default; 6. Airline is adjudged a bankrupt in involuntary bankruptcy procedures; 7. Airline is made a party to any receivership proceeding in which a receiver is appointed for the property or affairs of Airline where such receivership is not vacated within sixty (60) days after the appointment of such receiver; 8. The abolition, limitation, or restriction by any act of federal, state or local authority under which these Premises are being leased, except with respect to legislation that grants authority to a successor. 9. Airline and/or its affiliates, and/or subsidiaries fails to comply with PFC requirements including those requirements set forth in this Agreement and such failure continues for ten (10) days after written notice from the Director of Aviation. 10. Redevelopment of the Airport that necessitates relocation of Airline from Leased Premises. B. In any of the aforesaid events, City may take immediate possession of the Leased Premises in any lawful manner including any and all improvements thereon and remove Airline's effects. C. Failure of City to declare this Agreement terminated upon the default of Airline for any of the reasons set out shall not operate to bar or destroy the right of City to terminate this Agreement by reason of any subsequent violation of the terms of this Agreement. D. No receipt or acceptance of money by City from Airline after the expiration or termination of this Agreement, or after the service of any notice, or after the commencement of any suit, or after final judgment for possession of the Leased Premises, shall reinstate, continue, or extend the terms of this Agreement, or affect any such notice, demand or suit or imply consent for any action for which City's consent is required or operate as a waiver of any right or remedy of City including any right to lawfully retake and resume possession of the Leased Premises. ARTICLE 14: GENERAL PROVISIONS Section 14.01 Compliance with Law 49 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 Seattle, WA 98188 or P.O. Box 68900-SEAPZ Seattle, WA 98168-0900 A party may change it notice address of record by written notice thereof given in the manner provided herein. B. If notice is given in any other manner or at any other place, it will also be given at the place and in the manner specified above. Section 14.03 Successors and Assigns Bound This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. Section 14.04 Governing Law, Venue and Attorney 's Fees A. This Agreement and all disputes arising hereunder shall be governed by the laws of the State of California, and exclusive venue in any and all actions arising under this Agreement shall be laid in a state or Federal court located in the Judicial District of Fresno County, California. B. In any action or proceeding which City or Airline may be required to prosecute to enforce its respective rights under this Agreement, the unsuccessful party therein agrees to pay all costs incurred by the prevailing party therein, including reasonable interest and attorneys' fees, to be fixed by the court, and said costs, interest, and attorneys' fees shall be made a part of the judgment in said action. Section 14.05 Subordination to Agreements with U.S. Government This Agreement is subject and subordinate to the provisions of any agreements heretofore or hereinafter made between the City and the United States, relative to the operation or maintenance of the Airport, the execution of which has been required as a condition precedent to the transfer of federal rights or property to City for Airport purposes, or to the expenditure of federal funds for the improvement or development of the Airport, including the expenditure of federal funds for the development of the Airport in accordance with the provisions of the Federal Aviation Act of 1958, as it has been amended from time to time. City covenants that it has no existing agreements with the United States in conflict with the express provisions hereof. Section 14.06 Nonwaiver of Rights The non-enforcement by either party of the breach of any term, covenant or condition herein stipulated, shall never be construed to be a waiver of any other or succeeding breach of any term, covenant or condition herein imposed upon the other party. The acceptance of payments of any amounts due or to become due hereunder in any other 51 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 Following the authorization or clearance of federal avaiton, law enforcement authorities and/or Airport Operations designee, Airline shall promptly remove any of its disabled aircraft from any part of the Airport (including, without limitation, runways, taxiways, aprons, and aircraft parking positions) and place any such disabled aircraft in such storage areas as may be designated by Director of Aviation. Airline may store such disabled aircraft only for such length of time and on such terms and conditions as may be established by Director of Aviation. If Airline fails to remove any of its disabled aircraft promptly, Director of Aviation may, but shall not be obligated to, cause the removal and storage of such disabled aircraft, provided, however, the obligation to remove or store such disabled aircraft shall be consistent with federal laws and regulations, including those of the FAA and the National Transportation Safety Board (NTSB). Airline agrees to reimburse City for all reasonable costs of such removal and storage; and Airline, furthermore, hereby releases City from any and all claims for damage to the disabled aircraft or otherwise arising from or in any connected with such removal by City, except to the extent caused by the active negligence or willful misconduct of City, its agents, or its employees. Section 14.14 Quiet En joymen t Except to any extent otherwise expressly provided in this Agreement, City covenants and agrees that Airline on paying the rent (and other charges herein provided for) and observing and keeping the covenants, conditions, and terms of this Agreement, shall lawfully and quietly hold , occupy and enjoy the Leased Premises during the term of this Agreement without hindrance or molestation by City or any person claiming under City. Section 14.15 Fo rce Ma jeure No party to this Agreement is responsible to the other party for nonperformance or delay in performance of the terms and conditions herein due to acts of God, acts of government, wars, riots, strikes, acts of terrorism, accidents in transportation, fuel or material shortages, or other causes beyond the control of a party. Section 14.16 Indepe nd ent Contracto r Airline is and throughout this Agreement shall be an independent contractor and not an employee, partner or agent of the City. Neither party shall have any right to control, supervise or direct the manner or method or choice by which the other party or its contractors shall perform its or their work or function. However, each party shall retain the right to verify that the other is performing its respective obligations in accordance with the terms hereof. Neither the Airline, nor any of its officers, associates, agents, or employees shall be deemed an employee of the City for any purpose. Airline shall not be entitled to nor shall it receive any benefit normally provided to employees of the City such as, but not limited to, vacation payment, retirement, health care, or sick pay. The City shall not be responsible for withholding income or other taxes from the payments made to Airline. Airline shall be solely responsible for filing all returns and paying any income, social 53 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 transportation and disposal of solid wastes, Hazardous Materials, or other contaminants and regarding releases or threatened releases of Hazardous Materials or other contaminants in the environment. A. Review of Environmental Documents. Airline, at the request of City, shall make available for the inspection and copying upon reasonable notice at a reasonable time, any or all of the documents and materials Airline has prepared pursuant to any applicable Environmental Law or submitted to any governmental regulatory agency pursuant to any Environmental Law; provided, that such documents and materials are not protected from disclosure by a court order, any available self­ audit privilege, attorney work product doctrine or attorney client privilege and are pertinent to Airline's rights and obligations under this Agreement at the Airport or to the Leased Premises. Such documents and materials released to the City shall be kept confidential to the fullest extent allowed by law. If any applicable Environmental Law requires Airline to file any notice or report of a release or threatened release of Hazardous Materials on, under or about the Leased Premises or the Airport, Airline shall provide a draft copy of such report or notice to the City to the extent practical given time constraints imposed by applicable Environmental Laws and Airline shall consult with City and give due consideration to the City's comments and concerns prior to submitting such notice or report to the appropriate governmental agency. B. Access of Environmental Inspection. On reasonable written notice and at a reasonable time, such to not disturb Airline's operations, City shall have access to the Leased Premises to inspect the same, with a representative of Airline to be present during such access and inspection, in order to confirm that the Airline is using the Leased Premises in accordance with applicable Environmental Laws. Airline, at the request of City and at City's expense, shall conduct such testing and analysis as is reasonable and necessary to ascertain whether Airline is using the Leased Premises in compliance with applicable Environmental Laws; provided that if the testing and analysis determines that Airline's use is not in compliance with applicable Environmental Laws, then Airline shall bear the reasonable cost of such testing and analysis. Any such tests shall be conducted by qualified independent experts chosen by Airline and subject to City's approval which approval will not be unreasonably withheld. Copies of reports from any such testing shall be provided to City upon receipt by Airline. C. Environmental Non-compliance. If, after reasonable notice to Airline and opportunity for Airline to commence measures to address compliance, Airline fails to comply with any applicable Environmental Laws, City, in addition to its rights and remedies provided at law or in equity, may lawfully enter the Leased Premises and take all reasonable and necessary measures, at Airline's expense, to insure compliance with applicable Environmental Laws. D. Duty to Notify City. In the event of a release or threatened release of Hazardous Material into the environment in violation of applicable Environmental Laws relating to or arising out of Airline's use or occupancy of the Leased Premises or in the 55 of 59 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 in favor or against any party, but rather by construing the terms in accordance with their generally accepted meaning. Section 14.23 Cumulative Remedies No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. Section 14.24 Non-Solicitation Airline represents and warrants that it has not paid or agreed to pay any compensation, contingent or otherwise, to solicit or procure this Agreement or any rights/benefits hereunder. Section 14.25 Precedence of Documents In the event of any conflict between the body of this Agreement and any exhibit or attachment hereto, the terms and conditions of the body of this Agreement shall control and take precedence over the terms and conditions expressed within the exhibit or attachment. Furthermore, any terms or conditions contained within any exhibit or attachment hereto which purport to modify the allocation of risk between the parties, provided for within the body of this Agreement, shall be null and void. Section 14.26 Entire Agreement This Agreement, together with all exhibits, documents and instruments attached hereto and incorporated herein, constitutes the entire agreement between the parties hereto, and all other representations or statements heretofore made, verbal or written, are merged herein, and this Agreement may be amended only in writing, and executed by duly authorized representatives of the parties hereto. [Signatures on the following page] 57 of 59 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 Exhibit J: Affiliates, Subsidiaries and Code Share Partners Exhibit K: Monthly Operations Report Exhibit L: Conflict of Interest Form Exhibit M : FM Grant Assurances Exhibit N: Federal Provision Applicable to All Agreements 59 of 59 ~--Wft.....1,.~....W, i:rrv or FAESHO -.JRPORTS OEP...Rl~EN'I 995 U.ST CWHON WAY RESNO,CALl rllRNIA9J?27 (46,901 Sq . Ft. ) KONE: 559-l!ill-4500 COld,Ul, 1,llll lllo CIAWII. 1'0 11 FI RS T FLOOR TERM INAL SEC O ND FLOO R TER MINA L COMMON SPACE ·- _,.- I-z w 2 I- 0:::: <( o__ w 0 (f) I- 0:::: 0 o__ ,... 0::::ttu\l U t U tr 1u~• M 1 \/lo¢.a1 <( HJ• ..... ''" t•uu,111 t- 0:: 0 a.. 0:: <i' -' <! z oa.. -< ~:::; z:::. 0::0 w o ~ t-er N z_.~---,: w~ t-:::; -cr :::. w w f- Vl 0 >- 0 z Vl w 0:: LL DIRECTOR OF AVIATION 1(£\'/N R WEIIIL(. ARC Hll[C l PROJECT ijGR~ CDNST , IAGR~ PLA NNIN G MCR-..l&tl PROJECT ID~ """WN IW--!i'II Cttcc,u::D lh·~.. --~ S •H F, ··- SttU1 NO, n c I CuS"nii; 1 TERMINAL KEY REVISIONS/REFERENCEKRA NO.::-----AIRPORTS FUND NO,____ REF NO.FRESNO YOSEMITE INTERNATIONAL AIRPORTDEPARTMENT ORG NO l~o;;;;1R;;,ECl:;:;O:;;;-R--;;o:;-F:;,.Vl/i,~J;;;:;10;:;-N-}--------------------------_J ACTIVllY'---- KEVIN R. MEIKLE, ARCHITECT PROJECT I.D APPROVE'.O CONST. ENG. _ ___OFFICE ENG. ____FIRST FLOOR TERMINAL CITY DESIGN ENG . DR. BY: LNSGATE 8CITY OF FftESNO AIRPOR"IS DEPARTMENJ CH. BY: MGP 4985 EAST CLINJON WAY t-----------------------------l DATE: 3-7-22FftESNO, CALIFORNIA 93727 PHONE: 559-621-4500 SCALE: N/A 1 CITY DRAWING NO. XX-X-XXX SHEET NO. 1 OF 2 SHEETS GATE12 Jllil l.OOHII KRA NO. _ _ _ _ REVISIONS/REFERENCEAIRPORTS FUND NO ____ REF NO.FRESNO YOSEMITE INTERNATIONAL AIRPORT ORG NO,____DEPARTMENT i--;:D;;;IRE;;:CT;;;OR;-;;;O,:-:A;;;;Wl,t;:;;;JIO;;N-1-----------------------------l ACTIVITY ____ KEVIN R. MEIKLE, ARCHITECT ~PR~O~JE=::C~T_'.1-~D===-1,,,,-------_j SECOND FLOOR TERMINAL ENG. ___PP_CONST. A RoriffrcE ENG. ___ CITY DESIGN ENO . 1 DR. BY: LNS CITY DRAWING NO. XX-X-XXXGATE 1 2 CITY OF FRESNO AIRPORTS DEPARTMENT CH. BY: MGP SHEET NO. 1 4995 EAST CLINTON WAY 1------------------------------1 DATE: 3-7-22TERMINAL KEY FRESNO, CALIFORNIA 93727 PHONE: 559-621-4500 SCALE: N/A OF 2 SHEETS ~ 0 wO c..,a:: (3(..'.) l"'M,. c..,Z ~ <CZ m w tIJ w.,,. <(O:::N (l')U ..­ I-(/') I- <'o ' ..-,,, co ' ,,,.., ® n I I I I I I I I 0 0 >­m m 0 __J I­ WO ~o u..- 1-I- C C 0 Legend D Airfield -Terminal Building -FIS Facility D Non Airline FRESNO YOSEMITE International Airport Exhibit C Terminal Building and FIS Facility Cost Centers J )' DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 Exhibit D Illustration of Annual Terminal Building Rental Rate Calculation Fresno Yosemite International Airport Amounts Allocable to Terminal Building Cost Center Debt Service Rolling Debt Service Coverage Amortization Charges Operating Expenses Deposit to the Operating Reserve Fund Terminal Building Credit Terminal Building Net Requirement Usable Space Rate Before Adjustment Rate Adjustment due to Annual True-up Terminal Building Rental Rate leased Premises Airline Terminal Building Net Requirement [A] [Bl [C] [D] [E] [F] [G]= Sum of [A] thru [E] -[F] [H] [l]=[G]/[H] [J] [K]=[I]-[J] [L] [K]*[l) FY 2023 Illustration $ 765,486 256,468 13,747,485 130,928 (4,488,286) $10,412,082 140,704 $ 74.00 $ 74 .00 53,564 $ 3 ,963,721 0 --n" w .....I- a.~ U) w < -~ o­>-~ O .2 z~ U) C w ... ll: 2 u. .!: .... Q)...... C Q) u ...... en 0 u w m ~~ ~ "C ..c Q) >< 't: w~ 3nN3/\V SI/\01:J -~ •-w :, z ;; w 0: w > g "'w :!: /J lC7c::::7 ~ t Ol .!:: ;g "O Q) 'E 1 <{ :::J a:i cii C.E .._ Q) I- >, ~ ·u co LL Cl) u::: Q) C -.:::: <{ C 0 z ·l i___J I I DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271 F6CBF9 Exhibit F Illustration of Annual Landing Fee Rate Calculation Fresno Yosemite International Airport Amounts Allocable to Airfield Cost Center Debt Service Rolling Debt Service Coverage Amortization Charges Operating Expenses Deposit to the Operating Reserve Fund Airfield Area Credit Annual True-up Airline Airfield Area Net Requirement Landed Weight Landing Fee Rate [A] [BJ [C] [D] [E] [F] [G] [H]= Sum of [A] thru [E] -[F]-[G) [I] [H]/[1] FY 2023 Illustration $ 9,856 75,000 6,921,484 65,919 (2,712,502) 164,704 $4,524,461 1,657,757 $ 2.73 OocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 Exhibit G Illustration of FIS Fee Rate Calculation Fresno Yosemite International Airport Amounts Allocable to FIS Cost Center Debt Service Rolling Debt Service Coverage Amortization Charges Operating Expenses Deposit to the Operating Reserve Fund Applicable credits Airline FIS Net Requirement FIS Users FIS Fee Rate Maximum FIS Fee Rate FIS Fee Rate to Charge [A] [B] [CJ [D] [E] [F] [G]= Sum of [A] thru [E] -[F] [H] [l]=[G]/[H] [J] Lower of [I] and [J] FY 2023 Illustration $ 120,911 2,226,760 21,207 (500,976) $ 1,746,991 179,743 $ 9.72 12.00 $ 9.72 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 Exhibit H Illustration of Annual Signatory Credit Calculation Fresno Yosemite International Airport Revenues Debt Service Rolling Debt Service Coverage Operating Expenses Deposit to Operating Reserve Fund Capital Allowance Remaining Revenues Share of Sig. Passenger and Sig . Cargo Carriers (a) Signatory Credit Amounts to Be Applied to FY 2024 (a) Terminal Building Cost Center Airfield Area Cost Center FIS Cost Center Note: subject to further constraints in Section 5.12. [A] [B] [C] [DJ [E] [F] [G]=[A]-SUM OF [B] Thru [F] [H]=50% [l]=[G]*[H] [J] [J]*65% [J]*25% [J]*10% FY 2023 Illustration $43,604,010 (4,862,988) (26 ,669,055) (253,991) (4,000,000) $ 7,817,976 50.0% $ 3,908,988 $ 2,000,000 1,300,000 500,000 200,000 DocuSign Envelope ID: FADF5140-9ECA-422f-9217-85A271f6CBF9 Exhibit I OPERATIONS AND MAINTENANCE RESPONSIBILITIES FRESNO YOSEMITE INTERNATIONAL AIRPORT Item Exclusive Use and Shared Use Common Use Hold Rooms Aircraft Parking Areas 1. Air conditioning a. Maintenance b. Operation FYI FYI FYI FYI FYI FYI FYI FYI 2. Heating a. Maintenance b . Operation FYI FYI FYI FYI FYI FYI FYI FYI 3. Lighting a. Maintenance b . Bulb replacement Airline Airline FYI FYI FYI FYI FYI FYI 4. Electrical a. Maintenance FYI (a) FYI FYI FYI b. Usage Airline FYI, Airline (b) FYI FYI, Airline (b) 5. Water a. Operation FYI FYI FYI FYI b. Distribution FYI FYI FYI FYI C. Fixtures FYI FYI FYI FYI d . Usage Airline FYI FYI FYI 6 . Sewage a . Operation FYI FYI FYI FYI b . Distribution FYI FYI FYI FYI C. Fixtures FYI FYI FYI FYI d . Usaoe Airline FYI FYI FYI 7. Restrooms a . Maintenance b. Janitorial FYI Airline FYI FYI FYI FYI FYI FYI 8. Building maintenance a. Structural b. Non-Structural C. Exterior FYI Airline FYI FYI FYI FYI FYI FYI FYI FYI FYI FYI 9. Ramp a. Sweeping b. Maintenance/Repair N/A N/A N/A N/A NIA N/A Airline (c) FYI DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271 F6CBF9 C. Sponsor Certification. The sponsor hereby assures and certifies, with respect to this grant that: 1. General Federal Requirements. It will comply with all applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance and use of Federal funds for this project including but not limited to the following: a. Title 49, U.S.C., subtitle VII, as amended. b. Davis-Bacon Act -40 U.S.C. 276(a), et seq.1 c. Federal Fair Labor Standards Act -29 U.S.C. 201, et seq. d. Hatch Act-5 U.S.C. 1501, et seq.2 e. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Title 42 U.S.C. 4601, et seq.12 f. National Historic Preservation Act of 1966 -Section 106 -16 U.S.C. 470(f).1 g. Archeological and Historic Preservation Act of 1974 -16 U.S.C. 469 through 469c.1 h. Native Americans Grave Repatriation Act -25 U.S.C. Section 3001, et seq. 1. Clean Air Act, P.L. 90-148, as amended. J. Coastal Zone Management Act, P.L. 93-205, as amended. k. Flood Disaster Protection Act of 1973 -Section 102(a) -42 U.S.C. 4012a.1 I. Title 49, U.S.C., Section 303, (formerly known as Section 4(f)) m. Rehabilitation Act of 1973 -29 U.S.C. 794. n. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252) (prohibits discrimination on the basis of race, color, national origin); o. Americans with Disabilities Act of 1990, as amended, (42 U.S.C. § 12101 et seq.), prohibits discrimination on the basis of disability). p. Age Discrimination Act of 1975 -42 U.S .C. 6101, et seq. q. American Indian Religious Freedom Act, P.L. 95-341, as amended. r. Architectural Barriers Act of 1968 -42 U.S.C. 4151, et seg.1 s. Power plant and Industrial Fuel Use Act of 1978 -Section 403-2 U.S.C. 8373.1 t. Contract Work Hours and Safety Standards Act -40 U.S.C. 327, et seq .1 u. Copeland Anti-kickback Act -18 U.S .C. 874.1 v. National Environmental Policy Act of 1969 -42 U.S.C. 4321, et seq.1 w. Wild and Scenic Rivers Act, P.L. 90-542, as amended . x . Single Audit Act of 1984 -31 U.S.C . 7501, et seg.2 y. Drug-Free Workplace Act of 1988 -41 U.S.C. 702 through 706. z. The Federal Funding Accountability and Transparency Act of 2006, as amended (Pub. L. 109-282, as amended by section 6202 of Pub. L. 110-252). Airport Sponsor Assurances 2/2020 Page 2 of 18 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 n. 49 CFR Part 21-Nondiscrimination in federally-assisted programs of the Department of Transportation -effectuation of Title VI of the Civil Rights Act of 1964. o. 49 CFR Part 23 -Participation by Disadvantage Business Enterprise in Airport Concessions. p. 49 CFR Part 24 -Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs.12 q. 49 CFR Part 26 -Participation by Disadvantaged Business Enterprises in Department of Transportation Programs. r. 49 CFR Part 27 -Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance.1 s. 49 CFR Part 28 -Enforcement of Nondiscrimination on the Basis of Handicap in Programs or Activities conducted by the Department of Transportation. t. 49 CFR Part 30 -Denial of public works contracts to suppliers of goods and services of countries that deny procurement market access to U.S. contractors. u. 49 CFR Part 32 -Government-wide Requirements for Drug-Free Workplace (Financial Assistance) v. 49 CFR Part 37-Transportation Services for Individuals with Disabilities (ADA). w. 49 CFR Part 41 -Seismic safety of Federal and federally assisted or regulated new building construction. SPECIFIC ASSURANCES Specific assurances required to be included in grant agreements by any of the above laws, regulations or circulars are incorporated by reference in this grant agreement. FOOTNOTES TO ASSURANCE C.1. 1 These laws do not apply to airport planning sponsors. 2 These laws do not apply to private sponsors. 3 49 CFR Part 18 and 2 CFR Part 200 contain requirements for State and Local Governments receiving Federal assistance. Any requirement levied upon State and Local Governments by this regulation and circular shall also be applicable to private sponsors receiving Federal assistance under Title 49, United States Code. 4 On December 26, 2013 at 78 FR 78590, the Office of Management and Budget (0MB) issued the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR Part 200. 2 CFR Part 200 replaces and combines the former Uniform Administrative Requirements for Grants (0MB Circular A-102 and Circular A-110 or 2 CFR Part 215 or Circular) as well as the Cost Principles (Circulars A-21 or 2 CFR part 220; Circular A-87 or 2 CFR part 225; and A-122, 2 CFR part 230). Additionally it replaces Circular A-133 guidance on the Single Annual Audit. In accordance with 2 CFR section 200.110, the standards set forth in Part 200 which affect administration of Federal awards issued by Federal agencies become effective once implemented by Federal agencies or when any future amendment to this Part becomes final. Federal agencies, including the Department of Transportation, must implement the policies and procedures applicable to Federal awards by promulgating a regulation to be effective by December 26, 2014 unless different provisions are required by statute or approved by 0MB. Airport Sponsor Assurances 212020 Page 4 of 18 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 Secretary. If the transferee is found by the Secretary to be eligible under Title 49, United States Code, to assume the obligations of this grant agreement and to have the power, authority, and financial resources to carry out all such obligations, the sponsor shall insert in the contract or document transferring or disposing of the sponsor's interest, and make binding upon the transferee all of the terms, conditions, and assurances contained in this grant agreement. c. For all noise compatibility program projects which are to be carried out by another unit of local government or are on property owned by a unit of local government other than the sponsor, it will enter into an agreement with that government. Except as otherwise specified by the Secretary, that agreement shall obligate that government to the same terms, conditions, and assurances that would be applicable to it if it applied directly to the FAA for a grant to undertake the noise compatibility program project. That agreement and changes thereto must be satisfactory to the Secretary. It will take steps to enforce this agreement against the local government if there is substantial non-compliance with the terms of the agreement. d. For noise compatibility program projects to be carried out on privately owned property, it will enter into an agreement with the owner of that property which includes provisions specified by the Secretary. It will take steps to enforce this agreement against the property owner whenever there is substantial non-compliance with the terms of the agreement. e. If the sponsor is a private sponsor, it will take steps satisfactory to the Secretary to ensure that the airport will continue to function as a public-use airport in accordance with these assurances for the duration of these assurances. f. If an arrangement is made for management and operation of the airport by any agency or person other than the sponsor or an employee of the sponsor, the sponsor will reserve sufficient rights and authority to insure that the airport will be operated and maintained in accordance Title 49, United States Code, the regulations and the terms, conditions and assurances in this grant agreement and shall insure that such arrangement also requires compliance therewith. g. Sponsors of commercial service airports will not permit or enter into any arrangement that results in permission for the owner or tenant of a property used as a residence, or zoned for residential use, to taxi an aircraft between that property and any location on airport. Sponsors of general aviation airports entering into any arrangement that results in permission for the owner of residential real property adjacent to or near the airport must comply with the requirements of Sec. 136 of Public Law 112-95 and the sponsor assurances. 6. Consistency with Local Plans. The project is reasonably consistent with plans (existing at the time of submission of this application) of public agencies that are authorized by the State in which the project is located to plan for the development of the area surrounding the airport. 7. Consideration of Local Interest. It has given fair consideration to the interest of communities in or near where the project may be located. 8. Consultation with Users. In making a decision to undertake any airport development project under Title 49, United States Code, it has undertaken reasonable consultations with affected parties using the airport at which project is proposed. Airport Sponsor Assurances 2/2020 Page 6 of 18 OocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 14. Minimum Wage Rates. It shall include, in all contracts in excess of $2,000 for work on any projects funded under this grant agreement which involve labor, provisions establishing minimum rates of wages, to be predetermined by the Secretary of Labor, in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-S), which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work. 15. Veteran's Preference. It shall include in all contracts for work on any project funded under this grant agreement which involve labor, such provisions as are necessary to insure that, in the employment of labor (except in executive, administrative, and supervisory positions), preference shall be given to Vietnam era veterans, Persian Gulf veterans, Afghanistan-Iraq war veterans, disabled veterans, and small business concerns owned and controlled by disabled veterans as defined in Section 47112 of Title 49, United States Code. However, this preference shall apply only where the individuals are available and qualified to perform the work to which the employment relates. 16. Conformity to Plans and Specifications. It will execute the project subject to plans, specifications, and schedules approved by the Secretary. Such plans, specifications, and schedules shall be submitted to the Secretary prior to commencement of site preparation, construction, or other performance under this grant agreement, and, upon approval of the Secretary, shall be incorporated into this grant agreement. Any modification to the approved plans, specifications, and schedules shall also be subject to approval of the Secretary, and incorporated into this grant agreement . 17. Construction Inspection and Approval. It will provide and maintain competent technical supervision at the construction site throughout the project to assure that the work conforms to the plans, specifications, and schedules approved by the Secretary for the project. It shall subject the construction work on any project contained in an approved project application to inspection and approval by the Secretary and such work shall be in accordance with regulations and procedures prescribed by the Secretary. Such regulations and procedures shall require such cost and progress reporting by the sponsor or sponsors of such project as the Secretary shall deem necessary. 18. Planning Projects. In carrying out planning projects: a. It will execute the project in accordance with the approved program narrative contained in the project application or with the modifications similarly approved. b. It will furnish the Secretary with such periodic reports as required pertaining to the planning project and planning work activities . c. It will include in all published material prepared in connection with the planning project a notice that the material was prepared under a grant provided by the United States. d. It will make such material available for examination by the public, and agrees that no material prepared with funds under this project shall be subject to copyright in the United States or any other country. e. It will give the Secretary unrestricted authority to publish, disclose, distribute, and otherwise use any of the material prepared in connection with this grant. Airport Sponsor Assurances 2/2020 Page 8 of 18 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 respect to the airport, of the noise compatibility program measures upon which Federal funds have been expended. 22. Economic Nondiscrimination. a. It will make the airport available as an airport for public use on reasonable terms and without unjust discrimination to all types, kinds and classes of aeronautical activities, including commercial'aeronautical activities offering services to the public at the airport. b. In any agreement, contract, lease, or other arrangement under which a right or privilege at the airport is granted to any person, firm, or corporation to conduct or to engage in any aeronautical activity for furnishing services to the public at the airport, the sponsor will insert and enforce provisions requiring the contractor to- 1) furnish said services on a reasonable, and not unjustly discriminatory, basis to all users thereof, and 2) charge reasonable, and not unjustly discriminatory, prices for each unit or service, provided that the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. c. Each fixed-based operator at the airport shall be subject to the same rates, fees, rentals, and other charges as are uniformly applicable to all other fixed-based operators making the same or similar uses of such airport and utilizing the same or similar facilities. d. Each air carrier using such airport shall have the right to service itself or to use any fixed­ based operator that is authorized or permitted by the airport to serve any air carrier at such airport. e. Each air carrier using such airport (whether as a tenant, non-tenant, or subtenant of another air carrier tenant) shall be subject to such nondiscriminatory and substantially comparable rules, regulations, conditions, rates, fees, rentals, and other charges with respect to facilities directly and substantially related to providing air transportation as are applicable to all such air carriers which make similar use of such airport and utilize similar facilities, subject to reasonable classifications such as tenants or non-tenants and signatory carriers and non­ signatory carriers. Classification or status as tenant or signatory shall not be unreasonably withheld by any airport provided an air carrier assumes obligations substantially similar to those already imposed on air carriers in such classification or status . f. It will not exercise or grant any right or privilege which operates to prevent any person, firm, or corporation operating aircraft on the airport from performing any services on its own aircraft with its own employees [including, but not limited to maintenance, repair, and fueling] that it may choose to perform. g. In the event the sponsor itself exercises any of the rights and privileges referred to in this assurance, the services involved will be provided on the same conditions as would apply to the furnishing of such services by commercial aeronautical service providers authorized by the sponsor under these provisions . h. The sponsor may establish such reasonable, and not unjustly discriminatory, conditions to be met by all users of the airport as may be necessary for the safe and efficient operation of the airport. Airport Sponsor Assurances 2/2020 Page 10 of 18 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 by the airport (and, in the case of a public airport, local taxes on aviation fuel) shall not apply. 2) If the Secretary approves the sale of a privately owned airport to a public sponsor and provides funding for any portion of the public sponsor's acquisition of land, this limitation on the use of all revenues generated by the sale shall not apply to certain proceeds from the sale. This is conditioned on repayment to the Secretary by the private owner of an amount equal to the remaining unamortized portion (amortized over a 20- year period) of any airport improvement grant made to the private owner for any purpose other than land acquisition on or after October 1, 1996, plus an amount equal to the federal share of the current fair market value of any land acquired with an airport improvement grant made to that airport on or after October 1, 1996. 3) Certain revenue derived from or generated by mineral extraction, production, lease, or other means at a general aviation airport (as defined at Section 47102 of title 49 United States Code), if the FAA determines the airport sponsor meets the requirements set forth in Sec. 813 of Public Law 112-95. b. As part of the annual audit required under the Single Audit Act of 1984, the sponsor will direct that the audit will review, and the resulting audit report will provide an opinion concerning, the use of airport revenue and taxes in paragraph (a), and indicating whether funds paid or transferred to the owner or operator are paid or transferred in a manner consistent with Title 49, United States Code and any other applicable provision of law, including any regulation promulgated by the Secretary or Administrator. c. Any civil penalties or other sanctions will be imposed for violation of this assurance in accordance with the provisions of Section 47107 of Title 49, United States Code. 26. Reports and Inspections. ltwill: a. submit to the Secretary such annual or special financial and operations reports as the Secretary may reasonably request and make such reports available to the public; make available to the public at reasonable times and places a report of the airport budget in a format prescribed by the Secretary; b. for airport development projects, make the airport and all airport records and documents affecting the airport, including deeds, leases, operation and use agreements, regulations and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request; c. for noise compatibility program projects, make records and documents relating to the project and continued compliance with the terms, conditions, and assurances of this grant agreement including deeds, leases, agreements, regulations, and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request; and d. in a format and time prescribed by the Secretary, provide to the Secretary and make available to the public following each of its fiscal years, an annual report listing in detail : 1) all amounts paid by the airport to any other unit of government and the purposes for which each such payment was made; and 2) all services and property provided by the airport to other units of government and the amount of compensation rece ived for provision of each such service and property. Airport Sponsor Assurances 2/2020 Page 12 of 18 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 with the airport layout plan as approved by the Secretary and which might, in the opinion of the Secretary, adversely affect the safety, utility or efficiency of the airport. b. Subject to the FAA Reauthorization Act of 2018, Public Law 115-254, Section 163, if a change or alteration in the airport or the facilities is made which the Secretary determines adversely affects the safety, utility, or efficiency of any federally owned, leased, or funded property on or off the airport and which is not in conformity with the airport layout plan as approved by the Secretary, the owner or operator will, if requested, by the Secretary (1) eliminate such adverse effect in a manner approved by the Secretary; or (2) bear all costs of relocating such property (or replacement thereof) to a site acceptable to the Secretary and all costs of restoring such property (or replacement thereof) to the level of safety, utility, efficiency, and cost of operation existing before the unapproved change in the airport or its facilities except in the case of a relocation or replacement of an existing airport facility due to a change in the Secretary's design standards beyond the control of the airport sponsor. 30. Civil Rights. It will promptly take any measures necessary to ensure that no person in the United States shall, on the grounds of race, creed, color, national origin, sex, age, or disability be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination in any activity conducted with, or benefiting from, funds received from this grant. a. Using the definitions of activity, facility and program as found and defined in §§ 21.23 (b) and 21.23 (e) of 49 CFR § 21, the sponsor will facilitate all programs, operate all facilities, or conduct all programs in compliance with all non-discrimination requirements imposed by, or pursuant to these assurances . b. Applicability 1) Programs and Activities. If the sponsor has received a grant (or other federal assistance) for any of the sponsor's program or activities, these requirements extend to all of the sponsor's programs and activities. 2) Facilities . Where it receives a grant or other federal financial assistance to construct, expand, renovate, remodel, alter or acquire a facility, or part of a facility, the assurance extends to the entire facility and facilities operated in connection therewith. 3) Real Property. Where the sponsor receives a grant or other Federal financial assistance in the form of, or for the acquisition of real property or an interest in real property, the assurance will extend to rights to space on, over, or under such property. c. Duration. The sponsor agrees that it is obligated to this assurance for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the assurance obligates the sponsor, or any transferee for the longer of the following periods: 1) So long as the airport is used as an airport, or for another purpose involving the provision of similar services or benefits; or 2) So long as the sponsor retains ownership or possession of the property. Airport Sponsor Assurances 2/2020 Page 14 of 18 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 reinvestment in an approved noise compatibility project, (2) reinvestment in an approved project that is eligible for grant funding under Section 47117(e) of title 49 United States Code, (3) reinvestment in an approved airport development project that is eligible for grant funding under Sections 47114, 47115, or 47117 of title 49 United States Code, (4) transferred to an eligible sponsor of another public airport to be reinvested in an approved noise compatibility project at that airport, and (5) paid to the Secretary for deposit in the Airport and Airway Trust Fund. If land acquired under a grant for noise compatibility purposes is leased at fair market value and consistent with noise buffering purposes, the lease will not be considered a disposal of the land. Revenues derived from such a lease may be used for an approved airport development project that would otherwise be eligible for grant funding or any permitted use of airport revenue. b. For land purchased under a grant for airport development purposes (other than noise compatibility), it will, when the land is no longer needed for airport purposes, dispose of such land at fair market value or make available to the Secretary an amount equal to the United State~• proportionate share of the fair market value of the land. That portion of the proceeds of such disposition which is proportionate to the United States' share of the cost of acquisition of such land will, (1) upon application to the Secretary, be reinvested or transferred to another eligible airport as prescribed by the Secretary. The Secretary shall give preference to the following, in descending order: (1) reinvestment in an approved noise compatibility project, (2) reinvestment in an approved project that is eligible for grant funding under Section 47117(e) oftitle 49 United States Code, (3) reinvestment in an approved airport development project that is eligible for grant funding under Sections 47114, 47115, or 47117 of title 49 United States Code, (4) transferred to an eligible sponsor of another public airport to be reinvested in an approved noise compatibility project at that airport, and (5) paid to the Secretary for deposit in the Airport and Airway Trust Fund. c. Land shall be considered to be needed for airport purposes under this assurance if (1) it may be needed for aeronautical purposes (including runway protection zones) or serve as noise buffer land, and (2) the revenue from interim uses of such land contributes to the financial self-sufficiency of the airport. Further, land purchased with a grant received by an airport operator or owner before December 31, 1987, will be considered to be needed for airport purposes if the Secretary or Federal agency making such grant before December 31, 1987, was notified by the operator or owner of the uses of such land, did not object to such use, and the land continues to be used for that purpose, such use having commenced no later than December 15, 1989. d. Disposition of such land under (a) (b) or (c) will be subject to the retention or reservation of any interest or right therein necessary to ensure that such land will only be used for purposes which are compatible with noise levels associated with operation of the airport. 32. Engineering and Design Services. Engineering and Design Services. If any phase of such project has received Federal funds under Chapter 471 subchapter 1 of Title 49 U.S .C., it will award each contract, or sub-contract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping or related services in the same manner as a contract for architectural and engineering services is negotiated under Chapter 11 of Title 40 U. S. C., or an equivalent qualifications-based requirement prescribed for or by the sponsor of the airport. Airport Sponsor Assurances 2/2020 Page 16 of 18 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 operator will grant to the aircraft owner for the hangar a long term lease that is subject to such terms and conditions on the hangar as the airport owner or operator may impose. 39. Competitive Access. a. If the airport owner or operator of a medium or large hub airport (as defined in section 47102 of title 49, U.S.C.) has been unable to accommodate one or more requests by an air carrier for access to gates or other facilities at that airport in order to allow the air carrier to provide service to the airport or to expand service at the airport, the airport owner or operator shall transmit a report to the Secretary that- 1) Describes the requests; 2) Provides an explanation as to why the requests could not be accommodated; and 3) Provides a time frame within which, if any, the airport will be able to accommodate the requests. b. Such report shall be due on either February 1 or August 1 of each year if the airport has been unable to accommodate the request(s) in the six month period prior to the applicable due date. Airport Sponsor Assurances 2/2020 Page 18 of 18 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 I. PROVISIONS APPLICABLE TO ALL LEASES A. ACCESS TO RECORDS AND REPORTS The contractor must maintain an acceptable cost accounting system. The contractor agrees to provide the sponsor, the Federal Aviation Administration, and the Comptroller General of the United States or any of their duly authorized representatives' access to any books, documents, papers, and records of the contractor which are directly pertinent to the specific contract for the purpose of making audit, examination, excerpts and transcriptions. The contractor agrees to maintain all books, records and reports required under this contract for a period of not less than three years after final payment is made and all pending matters are closed. B. BUY AMERICAN CERTIFICATION The contractor agrees to comply with 49 USC § 50101, which provides that Federal funds may not be obligated unless all steel and manufactured goods us.ed in AIP-funded projects are produced in the United States, unless the FAA has issued a waiver for the product; the product is listed as an Excepted Article, Material Or Supply in Federal Acquisition Regulation subpart 25.108; or is included in the FAA Nationwide Buy American Waivers Issued list. A bidder or offeror must submit the appropriate Buy America Certification (below) with all bids or offers on Airport Improvement Program ("AIP")-funded projects. Bids or offers that are not accompanied by a completed Buy America certification must be rejected as non responsive. Type of Certification is based on Type of Project: There are two types of Buy American certifications. • For projects for a facility, the Certificate of Compliance Based on Total Facility (Terminal or Building Project) must be submitted . • For all other projects, the Certificate of Compliance Based on Equipment and Materials Used on the Project (Non-building construction projects such as runway or roadway construction; or equipment acquisition projects) must be submitted. See Attachments A and B: Buy American Certifications C. GENERAL CIVIL RIGHTS PROVISIONS The contractor agrees that it will comply with pertinent statutes, Executive Orders and such rules as are promulgated to ensure 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 binds the contractor from the bid solicitation period through the completion of the contract. This provision is in addition to that required of Title VI of the Civil Rights Act of 1964. i D. CIVIL RIGHTS ACT OF 1964, TITLE VI FYI Fed Assurances LEASES (07-21-16) Page 2 of 34 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 b. Cancelling, terminating, or suspending a contract, in whole or in part. 6. Incorporation of Provisions: The contractor will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. The contractor will take action with respect to any subcontract or procurement as the sponsor or the Federal Aviation Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the contractor becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the contractor may request the sponsor to enter into any litigation to protect the interests of the sponsor. In addition, the contractor may request the United States to enter into the litigation to protect the interests of the United States. 7. Use or Access to Real Property Acquired Under the Activity, Facility or Program: A. The conractor for himself /herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree (in the case of deeds and leases add, "as a covenant running with the land") that (1) no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land, and the furnishing of services thereon, no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the (grantee, licensee, lessee, permittee, etc.) will use the premises in compliance with all other requirements imposed by or pursuant to the List of discrimination Acts And Authorities. B. With respect to leases and permits, in the event of breach of any of the above nondiscrimination covenants, City will have the right to terminate the lease or permit and to enter or re-enter and repossess said land and the facilities thereon, and hold the same as if said lease or permit had never been made or issued. FYI Fed Assurances LEASES (07-21 -16) Page 4 of 34 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; k. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100); I. Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq). E. DISADVANTAGED BUSINESS ENTERPRISES In the event that the Sponsor has established a Disadvantaged Business Enterprises (DBE) participation goal for the Project which is the subject of this contract, contractor shall comply with all applicable DBE requirements of 49 CFR Part 26. The DBE participation may be composed of any combination of firms certified as DBEs in accordance with 49 CFR Part 26. The contractor shall comply with Sponsor's DBE Program and subcontract with those firms as previously submitted to Sponsor (on form provided by Sponsor) on the contractor's list of disadvantaged businesses to meet the DBE participation goal for this Project. If the contractor intends to subcontract a portion of the services to be performed hereunder, the contractor shall affirmatively seek out DBEs that are potential subcontractors, suppliers, or consultants, and actively solicit their interest, capability and prices. Any questions concerning DBE issues shall be addressed to DBE Program staff at Telephone No. (559) 498-4071 or Fax No. (559) 621-1182. Contract Assurance (§ 26.13) -The contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as the recipient deems appropriate. Prompt Payment (§26.29) -The contractor agrees to pay each subcontractor under this contract for satisfactory performance of its contract no later than 1O days from the receipt of each payment the contractor receives from Sponsor. The contractor agrees further to return any retainage payments to each subcontractor within 10 days after the subcontractor's work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the Sponsor. This clause applies to both DBE and non-DBE subcontractors. F. ENERGY CONSERVATION REQUIREMENTS Contractor and any subcontractors agree to comply with mandatory standards and policies relating to energy efficiency as contained in the state energy conservation plan FYI Fed Assurances LEASES (07-21-16) Page 6 of 34 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 has become erroneous by reason of changed circumstances. The contractor must require subcontractors provide immediate written notice to the Contractor if at any time it learns that its certification was erroneous by reason of changed circumstances. Unless the restrictions of this clause are waived by the Secretary of Transportation in accordance with 49 CFR 30.17, no contract shall be awarded to an Sponsor or subcontractor: (1) who is owned or controlled by one or more citizens or nationals of a foreign country included on the list of countries that discriminate against U.S. firms published by the U.S.T.R. or (2) whose subcontractors are owned or controlled by one or more citizens or nationals of a foreign country on such U.S.T.R. list or (3) who incorporates in the public works project any product of a foreign country on such U.S.T.R. list; Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render, in good faith, the certification required by this provision. The knowledge and information of a contractor is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. The Sponsor agrees that, if awarded a contract resulting from this solicitation, it will incorporate this provision for certification without modification in in all lower tier subcontracts. The contractor may rely on the certification of a prospective subcontractor that it is not a firm from a foreign country included on the list of countries that discriminate against U.S. firms as published by U.S.T.R, unless the Sponsor has knowledge that the certification is erroneous. This certification is a material representation of fact upon which reliance was placed when making an award. If it is later determined that the contractor or subcontractor knowingly rendered an erroneous certification, the Federal Aviation Administration may direct through the Sponsor cancellation of the contract or subcontract for default at no cost to the Sponsor or the FAA. J. VETERAN'S PREFERENCE In the employment of labor (excluding executive, administrative, and supervisory positions), the contractor and all sub-tier contractors must give preference to covered veterans as defined within Title 49 United States Code Section 47112. Covered veterans include Vietnam-era veterans, Persian Gulf veterans, Afghanistan-Iraq war veterans, disabled veterans, and small business concerns (as defined by 15 U.S.C. 632) owned and controlled by disabled veterans. This preference only applies when there are covered veterans readily available and qualified to perform the work to which the employment relates. FYI Fed Assurances LEASES (07-21-16) Page 8 of 34 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 II. PROVISIONS APPLICABLE TO LEASES VALUED AT $2,000 AND GREATER A. COPELAND "ANTI-KICKBACK" ACT (applicable if contract includes construction, alteration, repair, as defined in 29 CFR Part 5) Contractor must comply with the requirements of the Copeland "Anti-Kickback" Act (18 U.S.C. 874 and 40 U.S.C. 3145), as supplemented by Department of Labor regulation 29 CFR part 3. Contractor and subcontractors are prohibited from inducing, by any means, any person employed on the project to give up any part of the compensation to which the employee is entitled. The Contractor and each Subcontractor must submit to the Sponsor a weekly statement on the wages paid to each employee performing on covered work during the prior week. Sponsor must report any violations of the Act to the Federal Aviation Administration. B. DAVIS-BACON REQUIREMENTS (applicable if contract includes construction, alteration, repair, as defined in 29 CFR Part 5) 1. Minimum Wages (i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by the Secretary of Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalent thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b )(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (1 )(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR Part 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under FYI Fed Assurances LEASES (07-21-16) Page 10 of 34 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. 2. Withholding. The Federal Aviation Administration or the sponsor shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other Federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of work, all or part of the wages required by the contract, the Federal Aviation Administration may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. 3. Payrolls and basic records. (i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in 1 (b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1 )(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b )(2)(8) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is FYI Fed Assurances LEASES (07-21-16) Page 12 of 34 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271 F6CBF9 (2) That each laborer and mechanic (including each helper, apprentice and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations 29 CFR Part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the "Statement of Compliance" required by paragraph (3)(ii)(B) of this section. (D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under paragraph (3)(i) of this section available for inspection, copying or transcription by authorized representatives of the sponsor, the Federal Aviation Administration or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the Federal agency may, after written notice to the contractor, sponsor, applicant or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. 4. Apprentices and Trainees. (i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Bureau of Apprenticeship and Training, or with a State Apprenticeship Agency recognized by the Bureau, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Bureau of Apprenticeship and Training or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed FYI Fed Assurances LEASES (07-21-16) Page 14 of 34 DocuSign Envelope 10 : FADF5140-9ECA-422F-9217-85A271 F6CBF9 of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed . In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal Employment Opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 5. Compliance with Copeland Act Requirements. The contractor shall comply with the requirements of 29 CFR Part 3, which are incorporated by reference in this contract. 6. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR Part 5.5(a)(1) through (10) and such other clauses as the Federal Aviation Administration may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR Part 5.5. 7. Contract Termination: Debarment. A breach of the contract clauses in paragraph 1 through 10 of this section may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. 8. Compliance With Davis-Bacon and Related Act Requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this contract. 9. Disputes Concerning Labor Standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, 6 and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U .S. Department of Labor, or the employees or their representatives. 10. Certification of Eligibility. FYI Fed Assurances LEASES (07-21-16) Page 16 of 34 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271 F6CBF9 Ill. PROVISION APPLICABLE TO LEASES $3,000 AND GREATER A. BAN ON TEXTING AND DRIVING The contractor shall adopt and enforce workplace safety policies to decrease crashes caused by distracted drivers, including policies to ban text messaging while driving when performing any work for, or on behalf of, the Federal government. The contractor further agrees to conduct workplace safety initiatives commensurate with the size of its business, such as establishing rules or programs that prohibit text messaging while driving and education, awareness, and other outreach to employees about the safety risks associated with texting while driving. FYI Fed Assurances LEASES (07-21-16) Page 18 of 34 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 under the contract resulting from this solicitation. The notification shall list the name, address, and telephone number of the subcontractor; employer identification number of the subcontractor; estimated dollar amount of the subcontract; estimated starting and completion dates of the subcontract; and the geographical area in which the subcontract is to be performed. 4. As used in this notice and in the contract resulting from this solicitation, the "covered area" is the State of California, County of Fresno, City of Fresno. B. EQUAL EMPLOYMENT OPPORTUNITY (E.E.O) (applicable to construction contracts, as defined in the Affirmative Action provision, over $10,000) 1. EQUAL OPPORTUNITY CLAUSE During the performance of this contract, the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identify or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship . The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. (2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive considerations for employment without regard to race, color, religion, sex, or national origin. (3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (5) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and FYI Fed Assurances LEASES (07-21-16) Page 20 of 34 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271F6CBF9 (2) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin regardless of race); (3) Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); and (4) American Indian or Alaskan native (all persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification). 2. Whenever the contractor, or any subcontractor at any tier, subcontracts a portion of the work involving any construction trade, it shall physically include in each subcontract in excess of $10,000 the provisions of these specifications and the Notice which contains the applicable goals for minority and female participation and which is set forth in the solicitations from which this contract resulted. 3. If the contractor is participating (pursuant to 41 CFR 60-4.5) in a Hometown Plan approved by the U.S. Department of Labor in the covered area either individually or through an association, its affirmative action obligations on all work in the Plan area (including goals and timetables) shall be in accordance with that Plan for those trades which have unions participating in the Plan. Contractors shall be able to demonstrate their participation in and compliance with the provisions of any such Hometown Plan . Each contractor or subcontractor participating in an approved plan is individually required to comply with its obligations under the EEO clause and to make a good faith effort to achieve each goal under the Plan in each trade in which it has employees. The overall good faith performance by other contractors or subcontractors toward a goal in an approved Plan does not excuse any covered contractor's or subcontractor's failure to take good faith efforts to achieve the Plan goals and timetables . 4. The contractor shall implement the specific affirmative action standards provided in paragraphs 7a through 7p of these specifications. The goals set forth in the solicitation from which this contract resulted are expressed as percentages of the total hours of employment and training of minority and female utilization the contractor should reasonably be able to achieve in each construction trade in which it has employees in the covered area. Covered construction contractors performing construction work in a geographical area where they do not have a Federal or federally assisted construction contract shall apply the minority and female goals established for the geographical area where the work is being performed. Goals are published periodically in the Federal Register in notice form , and such notices may be obtained from any Office of Federal Contract Compliance Programs office or from Federal procurement contracting officers. The contractor is expected to make substantially uniform progress in meeting its goals in each craft during the period specified. FYI Fed Assurances LEASES (07-21-16) Page 22 of 34 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 the contractor a minority person or female sent by the contractor, or when the contractor has other information that the union referral process has impeded the contractor's efforts to meet its obligations. e. Develop on-the-job training opportunities and/or participate in training programs for the area which expressly include minorities and women , including upgrading programs and apprenticeship and trainee programs relevant to the contractor's employment needs, especially those programs funded or approved by the Department of Labor. The contractor shall provide notice of these programs to the sources compiled under 7b above. f. Disseminate the contractor's EEO policy by providing notice of the policy to unions and training programs and requesting their cooperation in assisting the contractor in meeting its EEO obligations; by including it in any policy manual and collective bargaining agreement; by publicizing it in the company newspaper, annual report, etc.; by specific review of the policy with all management personnel and with all minority and female employees at least once a year; and by posting the company EEO policy on bulletin boards accessible to all employees at each location where construction work is performed. g. Review, at least annually, the company's EEO policy and affirmative action obligations under these specifications with all employees having any responsibility for hiring, assignment, layoff, termination , or other employment decisions including specific review of these items with onsite supervisory personnel such a superintendents, general foremen, etc., prior to the initiation of construction work at any job site. A written record shall be made and maintained identifying the time and place of these meetings , persons attending, subject matter discussed, and disposition of the subject matter. h. Disseminate the contractor's EEO policy externally by including it in any advertising in the news media, specifically including minority and female news media, and providing written notification to and discussing the contractor's EEO policy with other contractors and subcontractors with whom the contractor does or anticipates doing business. i. Direct its recruitment efforts, both oral and written, to minority, female, and community organizations, to schools with minority and female students; and to minority and female recruitment and training organizations serving the contractor's recruitment area and employment needs. Not later than one month prior to the date for the acceptance of applications for apprenticeship or other training by any recruitment source, the contractor shall send written notification to organizations, such as the above, describing the openings, screening procedures, and tests to be used in the selection process. FYI Fed Assurances LEASES (07-21-16) Page 24 of 34 OocuSign Envelope 10 : FADF5140-9ECA-422F-9217-85A271 F6CBF9 9. A single goal for minorities and a separate single goal for women have been established. The contractor, however, is required to provide equal employment opportunity and to take affirmative action for all minority groups, both male and female, and all women, both minority and non-minority. Consequently, if the particular group is employed in a substantially disparate manner (for example, even though the contractor has achieved its goals for women generally,) the contractor may be in violation of the Executive Order if a specific minority group of women is underutilized. 10. The contractor shall not use the goals and timetables or affirmative action standards to discriminate against any person because of race, color, religion, sex, or national origin. 11. The contractor shall not enter into any subcontract with any person or firm debarred from Government contracts pursuant to Executive Order 11246. 12. The contractor shall carry out such sanctions and penalties for violation of these specifications and of the Equal Opportunity Clause, including suspension, termination, and cancellation of existing subcontracts as may be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing regulations, by the Office of Federal Contract Compliance Programs. Any contractor who fails to carry out such sanctions and penalties shall be in violation of these specifications and Executive Order 11246, as amended. 13. The contractor , in fulfilling its obligations under these specifications, shall implement specific affirmative action steps, at least as extensive as those standards prescribed in paragraph 7 of these specifications, so as to achieve maximum results from its efforts to ensure equal employment opportunity. If the contractor fails to comply with the requirements of the Executive Order, the implementing regulations, or these specifications, the Director shall proceed in accordance with 41 CFR 60-4.8. 14. The contractor shall designate a responsible official to monitor all employment related activity to ensure that the company EEO policy is being carried out, to submit reports relating to the provisions hereof as may be required by the Government, and to keep records. Records shall at least include for each employee, the name, address, telephone number, construction trade, union affiliation if any, employee identification number when assigned, social security numb,er, race, sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay, and locations at which the work was performed. Records shall be maintained in an easily understandable and retrievable form; however, to the degree that existing records satisfy this requirement, contractors shall not be required to maintain separate records. 15. Nothing herein provided shall be construed as a limitation upon the application of other laws which establish different standards of compliance or upon the application of FYI Fed Assurances LEASES (07-21-16) Page 26 of 34 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-85A271 F6CBF9 The list of EPA-designated items is available at www.epa.gov/e pawaste/conserve/tools/cpg/products/. Section 6002(c) establishes exceptions to the preference for recovery of EPA-designated products if the contractor can demonstrate the item is: a) Not reasonably available within a timeframe providing for compliance with the contract performance schedule; b) Fails to meet reasonable contract performance requirements; or c) Is only available at an unreasonable price. E. TERMINATION OF CONTRACT 1. TERMINATION FOR CONVENIENCE The Sponsor may, by written notice to the Contractor, terminate this Agreement for its convenience and without cause or default on the part of Contractor. Upon receipt of the notice of termination, except as explicitly directed by the Sponsor, the Contractor must immediately discontinue all services affected. Upon termination of the Agreement, the Contractor must deliver to the Sponsor all data, surveys, models, drawings, specifications, reports, maps, photographs, estimates, summaries, and other documents and materials prepared by the Engineer under this contract, whether complete or partially complete. Sponsor agrees to make just and equitable compensation to the Contractor for satisfactory work completed up through the date the Contractor receives the termination notice. Compensation will not include anticipated profit on non-performed services. Sponsor further agrees to hold Contractor harmless for errors or omissions in documents that are incomplete as a result of the termination action under this clause. 2. TERMINATION FOR DEFAULT Either party may terminate this Agreement for cause if the other party fails to fulfill its obligations that are essential to the completion of the work per the terms and conditions of the Agreement. The party initiating the termination action must allow the breaching party an opportunity to dispute or cure the breach. The terminating party must provide the breaching party [7] days advance written notice of its intent to terminate the Agreement. The notice must specify the nature and extent of the breach, the conditions necessary to cure the breach, and the effective date of the termination action. The rights and remedies in this clause are in addition to any other rights and remedies provided by law or under this agreement. a) Termination by Sponsor: The Sponsor may terminate this Agreement in whole or in part, for the failure of the Contractor to: FYI Fed Assurances LEASES (07-21-16) Page 28 of 34 DocuSign Envelope ID: FADF5140-9ECA-422F-9217-BSA271F6CBF9 to hold Contractor harmless for errors or omissions in documents that are incomplete as a result of the termination action under this clause. FYI Fed Assurances LEASES (07-21-16) Page 30 of 34 DocuS ign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 V . PROVISIONS APPLICABLE TO LEASES $100,000 AND GREATER A. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT REQUIREMENTS (applicable to contracts employing laborers, mechanics, watchmen and guards, or installing equipment onsite) 1. Overtime Requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic, including watchmen and guards , in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 2. Violation; Liability for Unpaid Wages; Liquidated Damages. In the event of any violation of the clause set forth in paragraph (1) of this clause , the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (1) of this clause, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (1) of this clause. 3. Withholding for Unpaid Wages and Liquidated Damages. The Federal Aviation Administration (FM) or the Owner shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other Federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph 2 of this clause. FYI Fed Assurances LEASES (07-21-16) Page 32 of 34 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 VI. PROVISIONS APPLICABLE TO LEASES $150,000 AND GREATER A. BREACH OF CONTRACT TERMS Any violation or breach of terms of this contract on the part of the contractor or its subcontractors may result in the suspension or termination of this contract or such other action that may be necessary to enforce the rights of the parties of this agreement. Sponsor will provide the contractor with written notice that describes the nature of the breach and corrective actions the contractor must undertake in order to avoid termination of the contract. Sponsor reserves the right to withhold payments to Contractor until such time the Contractor corrects the breach or the Sponsor elects to terminate the contract. The Sponsor's notice will identify a specific date by which the contractor must correct the breach. Sponsor may proceed with termination of the contract if the contractor fails to correct the breach by deadline indicated in the Sponsor's notice. The duties and obligations imposed by the Contract Documents and the rights and remedies available thereunder are in addition to, and not a limitation of, any duties, obligations, rights and remedies otherwise imposed or available by law. B. CLEAN AIR AND WATER POLLUTION CONTROL Contractor agrees to comply with all applicable standards, orders, and regulations issued pursuant to the Clean Air Act (42 U.S.C. § 740-7671q) and the Federal Water Pollution Control Act as amended (33 U .S.C. § 1251-1387). The Contractor agrees to report any violation to the Sponsor immediately upon discovery. The Sponsor assumes responsibility for notifying the Environmental Protection Agency (EPA) and the Federal Aviation Administration. Contractor must include this requirement in all subcontracts that exceeds $150,000. Ill Ill FYI Fed Assurances LEASES (07-21-16) Page 34 of 34 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271F6CBF9 Required Documentation Type 3 Waiver -The cost of components and subcomponents produced in the United States is more that 60% of the cost of all components and subcomponents of the "facility". The required documentation for a type 3 waiver is : a) Listing of all manufactured products that are not comprised of 100% US domestic content (Excludes products listed on the FM Nationwide Buy American Waivers Issued listing and products excluded by Federal Acquisition Regulation Subpart 25.108; products of unknown origin must be considered as non-domestic products in their entirety) b) Cost of non-domestic components and subcomponents, excluding labor costs associated with final assembly and installation at project location. c) Percentage of non-domestic component and subcomponent cost as compared to total "facility" component and subcomponent costs, excluding labor costs associated with final assembly and installation at project location. Type 4 Waiver -Total cost of project using US domestic source product exceeds the total project cost using non-domestic product by 25%. The required documentation for a type 4 of waiver is: a) Detailed cost information for total project using US domestic product b) Detailed cost information for total project using non-domestic product False Statements: Per 49 USC § 47126, this certification concerns a matter within the jurisdiction of the Federal Aviation Administration and the making of a false, fictitious or fraudulent certification may render the maker subject to prosecution under Title 18, United States Code . Date Signature Company Name Title FYI Fed Assurances LEASES (07-21 -16) Page 2 of 4 DocuSign Envelope ID : FADF5140-9ECA-422F-9217-85A271 F6CBF9 a) Listing of all product components and subcomponents that are not comprised of 100% US domestic content (Excludes products listed on the FM Nationwide Buy American Waivers Issued listing and products excluded by Federal Acquisition Regulation Subpart 25.108; products of unknown origin must be considered as non-domestic products in their entirety) b) Cost of non-domestic components and subcomponents, excluding labor costs associated with final assembly at place of manufacture. c) Percentage of non-domestic component and subcomponent cost as compared to total "item" component and subcomponent costs, excluding labor costs associated with final assembly at place of manufacture. Type 4 Waiver -Total cost of project using US domestic source product exceeds the total project cost using non-domestic product by 25%. The required documentation for a type 4 of waiver is: a) Detailed cost information for total project using US domestic product b) Detai led cost i nfo rma ti on f o r t ot al pro ject usi ng non -domesti c product False St~tements: Per 49 USC § 47126, this certification concerns a matter within the jurisdiction of the Federal Aviation Administration and the making of a false, fictitious or fraudulent certification may render the maker subject to prosecution under Title 18, United States Code. Date Signature Company Name Title FYI Fed Assurances LEASES (07-21 -16) Page 4 of 4