AGREEMENT BY EVERGREEN, AND DOT FOR ATNEP --

COMPENSATION FOR AIR TRANSPORATION AT DIOMEDE, ALASKA, 

PURSUANT TO ORDER 2013~6-11. -, 

I. BACKGROUND AND PURPOSE 

This agreement is entered into by and among the U.S. Depa11ment of Transportation (DOT), 

Evergreen Helicopters, Inc., a wholly-owned subsidiary of Erickson Crane, Incorporated 

(Evergreen), and Kawerak, Inc. (Kawerak), and each is hereinafter refcm.:d to individually as the 

"Party" and collectively as the "Parties" for the provision by Evergreen of Air Transportation to 

Noneligible Places (ATNEP) at Diomede, Alaska (Diomede), pursuant to 49 U.S.C. § 41736. 

This agreement also sets forth the tenns and conditions of payment to Evergreen of not more 

than $377,520 to provide such ATNEP. Under 49 U.S.C. § 41736(a)(l )(B), one-half ofthe 

subsidy of$377,520 Evert,>Teen will be eligible to receive must be paid by Kawerak and the 

remaining one-half shall be paid by DOT. 

II. PARTIES' ROLES AND RESPONSIBILITIES 

A. EVERGREEN: Evergreen will provide ATNEP at Diomede from 

June 30,2014, based on the level of service described in Order 

• 

l, 2013, through 

11 and will 

provide monthly claims for to DOT after commencing A TNEP at Diomede. 

B. DOT: After reviewing Evergreen's monthly claim for accuracy and confonmmce with 

Order 2013~6-11, DOT will notify Kawerak of its obligation to 50 percent of 

A TNEP compensation to Evergreen. The total amount to be paid by DOT from 1, 

2013, through June 30, 2014, shall not exceed $188.760. After Kawerak provides 

to DOT that it has paid the monthly compensation due to Evergreen, DOT will 

equal share. 

C. KAWERAK: Kawerak will pay 50 percent of Evergreen's monthly claim for providing 

ATNEP at Diomede to Evergreen after receiving notice from DOT that service has 

been provided. The total amount to be paid by Kawerak from July 1, 2013, through 

June 30,201 shall not exceed $188,760. 

LEGAL AUTHORITY 

This contract is entered into pursuant to U.S.C. § 41736 (air transportation to 

places). 

Pagel of7 
IV. FLIGHT RATES 

A. Evergreen shall provide A TNEP services in accordance with the terms and conditions set 

forth in DOT Order 2013-6-11 and this Agreement 

B. The Parties understand that Evergreen intends to stage aircraft at Nome for its eligible 

flights to Diomede. 

C. Evergreen shall request reimbursement for ATNEP services as specified by 

Order 2013 -6-ll, Appendix B. 

V. TERMS AND CONDITIONS 

A. Evergreen shall provide ATNEP at Diomede from July L 2013, through June 30, 201 

based on the level of service indicated in Order 2013-6-11 in exchange for total 

compensation of not more than S377,520. 

B. Evergreen understands and agrees that 50 percent of the total compensatiori' it will receive 

for providing ATNEP at Diomede fi·om July 1, 2013, through June 30, 2014, will be paid 

by Kawerak and the remaining 50 percent will be paid by DOT, pursuant to 49 U.S.C. § 

41736(a)( 1 )(B). 

After commencing ATNEP at Diomede on July 1, 3, Evergreen shall file a monthly 

with DOT indicating the level of service it had provided the p1ior month. 

D. Upon receipt of each monthly claim from Evergreen, DOT shall review the claim to 

ensure accuracy and conformity with this Agreement and Order 2013-6-11. Approval of 

each monthly claim from Evergreen shall not be unreasonably withheld. DOT will 

promptly notify Evergreen with any questions regarding Evergreen's monthly claims, and 

Evergreen shall have the option to wsubmit a monthly claim if DOT requests changes 

that require resubmission. 

E. After reviewing Evergreen's monthly claim, DOT shall notify Kawerak that it is 

obligated to pay 50 percent of Evergreen's monthly claim. 

F. Upon receiving notice from DOT, Kawerak shall pay 50 percent ofEvergreen's monthly 

claim. 

G. Upon payment of 50 percent of Evergreen's monthly claim, Kawerak shall provide proof 

to DOT that Kawerak has paid Evergreen its share of Evergreen's monthly claim. 

H. Once DOT receives proof of payment by Kawerak to Evergreen of 50 percent of 

Evergreen's monthly claim, DOT shall then pay the remaining 50 percent of the monthly 

claim to Evergreen within fifteen ( 15) calendar days. 

I. DOT agrees to continue to pay its 50 percent share of Evergreen's monthly claims as 

long as Evergreen maintains the established level of ATNEP and Kawerak continues to 

pay its 50 percent share. The Secretary of Transportation may also make appropriate 

adjustments in the level of ATNEP provided at Diomede per 49 U.S.C. * 41736(e). 

J. The Parties understand and agree that the compensation to be paid by DOT to Evergreen 

for ATNEP at Diomede is calculated and distributed on DOT's fiscal year basis, subject 

to the availability of funds. The parties further understand and agree that compensation 

Pag~.; 2 of 7 
L. 

M. 

A. 

a 

f'f\tlnt-<,fi Evergreen shall with 

entire it provided at Diomede that 

"""' "'~'-' provided under this the 

provided 

parties understand 

payment DOT's 

PROVISIONS 

a. DOT: 

Jersey A venue, 

Room W86-308 

Washington, D.C. 20590 

(202) 366-1061 

For b11ling: 

John DiLuccio 

Director of Resource 

1200 New Jersey SE 

W86-302 

Washin&rton, DC 20590 

(202) 366-5631 

John.DiLucdo@dot.gov 

3 

with State 

funding 
b. Evergreen: 

c. 

Rizzuti, Vice President, 

& Corporate Secretary 

Erickson Air-Crane T"""'.,.,'"''"''t"'" 

SW Macadam 

OR 97239 

505-5821 

473-8540 

Manager 

Director of 

Evergreen Helicopters 

Anchorage, Alaska 

1936 Merrill Field Drive 

Anchorage, 9950 I 

907:-257-J 

907-748-5629 

tpena@evergreenak. com 

For Payment: 

Accounts Payable 

Evergreen Helicopters, Inc., 

Attention: April Hla Khaing 

Phone: 503-583-7874 

For Grant Management Issues: 

Pearl Mikulski 

Director 

pmikulski@.kawerak.org 

For Accounting Issues: 

Page4 

• 
Kawerak, lnc. 

P.O. Box 948 

AK 99762 

Where possible, disputes will resolved by infom1al discussion 

the event the Pa1ties are unable to resolve any disagreement 

..... ,.vu..,, the dispute will resolved pursuant to 

contract shall be governed by Federal law. 

E This Agreement not create 

prc>ceauJral, ""'·'"""''"""'-''"by law or equity, by persons 

their officers or employees, or 

F. Severability: in contract or any modification thereto shall be construed 

fashion that conflicts with law, directive. Nothing in this contract is 

uu1:=nctoo to conflict with current law or DOT. lf a term of 

this contract is with such authority, then that tenu 

''"'""1''"'T"' of this contract shall remain in full 

~v,,:.rorrP•'n shall retain all books, records, and other Qnllri"P 

summary support claims for payment, and 

documentation in a manner that readily permits and by 

representatives of the Department. documentation shall be retained for seven years 

from the date of this Agreement, or until the Department indicates that the records 

may be destroyed, whichever comes first. Copies of flight sold or 

disposed of must be carrier may forfeit its coJ11pemmtllOI1 

is not supported under the terms this Agreement. In addition, Evergreen 

retain of all of its air service at Diomede -as required by this Agreement 

its -as well"as any charter or other service not so required. 

H. f!,.KJ2iration: signature of all Parties, this contract will remain in effect 

I. 

July 1, 2013, through 30,2014. 

a. Eveq,,rreen 

the Secretary 

Public Facilities; 

Ul<)m!eae provided that it gives 

ofTransportation and 

suspending, 

or reducing the transportation, pursuant to 49 

The Secretary ofTransportation 

to receive compensation 

withdraw designation of Diomede as 

pursuant to 49 U.S .C. § 41736(f) 
has received A TNEP for at least two years and the Secretary decides the 

withdrawal would be in the public interest. 

c. Kawerak may tenninate its continued pmiicipation in A TNEP and this contract 

upon the occunence of either a. or b. of this Section VI. L, or due to a lack of 

availability of funds, provided that it gives the Secretary ofTransportation. the 

Alaska Department ofTranspmiation and Public Facilities, and Evergreen at least 

30 days' notice often11ination. Upon providing notice of termination, Kawerak 

shall pay Evergreen for any remaining monthly claims confinned by DOT 

through the process described in Section V, D.-F., for services perfon11ed prior to 

the date of the notice ofteqnination. 

J. Anti-Deficiency: No provision of this contract shall be interpreted to require obligation 

or payment of funds in violation of the i\nti-Deficiency Act, 31 U.S.C. § 1341, as 

amended. This contract is subject to the availability of funds. 

• 

K. Incorporation bv Reference: This Agreement expressly incorporates DOT Order 20 I 11, 

including its Appendices. Order 20 13-6~ 11 is hereby incorporated and made a part of this 

Agreement. 

L. Modification: This Agreement may be modified in writing (i) by mutual written consent 

ofa11 Patties. or (ii) by DOT ifDOT determines that modification would be the public 

interest. 

M. Entire Agreement: This A!:,rrccment represents the entire agreement of the Parties and 

replaces any previous oral or written agreement by and between the Parties. Other than 

set forth herein. no other promises or representations by any ofiicer. representative, or 

employee of any Party shall have any legal torce or effect. 

N. Execution: The Parties agree that multiple originals of this Agreement may be executed 

and that copies of signatures shall be treated as an original. I 

Page 6 of7 
Approvals: 

For DOT: 

----------···--·-·--------

Robert A. Letteney, Date 

Deputy Assistant Secretary for Aviation and International Affairs 

For Evergreen Helicopters, Inc.: 

Edward T. 

Vice President, General Counsel 

Kawerak: 

Melanie Bahnke, 

President, Kawerak, Inc. 

7 7 

• 

Date 
Approvals: 

For DOT: 

Wu!.y:~ Deputy Assistant Secretary for Aviation and International Affairs 

,4 

For Ever~r{e~ Helicopters, Inc.: /'J jl,,//,-J ~ / ,, II// 0'.1 • ,.. 

, . 

/ 

'izz 

Vice Pre.· ent, General Counsel 

For Kawerak: 

Melanie Bahnke, 

President, Kawerak, Inc. 

Date 

Date 

kJ e-lre-~ 5e~ f.v-e c~J--j 'f'~e 'Sf~-~ 

s:4~~\-~-'{ g.f ~q_~(?""~k ( rtz fG>{U-;(0 

Page 7 of7 

•