# BEFORE THE

UNITED STATES DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

OFFICE OF THE ASSOCIATE ADMINISTRATOR FOR AIRPORTS

WASHINGTON, D.C.

FINAL APPLICATION

UNDER 49 U.S.C. § 47134 FOR THE LONG-TERM LEASE OF

LUIS MUNOZ MARIN INTERNATIONAL AIRPORT

DOCKET NO. FAA-2009-1144

FIRST SUPPLEMENT

All correspondence with respect to the

Final Application should be addressed to:

David Alvarez Eng. Víctor A. Suárez

Executive Director Executive Director

Puerto Rico Public-Private Partnerships Authority Puerto Rico Ports Authority

Roberto Sanchez Vilella Government Center 64 Lindbergh Street

De Diego Avenue, Stop 22 Isla Grande, Puerto Rico 00907

San Juan, Puerto Rico 00907 Phone: (787) 729-8715, ext. 2281/2280

Phone: (787) 722-2525, ext. 152010/15211 Fax: (787) 722-7867

Fax: (787) 728-0963 E-Mail: vasuarez@prpa.pr.gov

E-Mail: david.alvarez@bgfpr.com

# -1- FIRST SUPPLEMENT TO THE FINAL APPLICATION

The following information supplements the Final Application of the Puerto Rico Ports Authority

(the “PRPA”) for the Long-Term Lease of Luis Muñoz Marín International Airport (“LMM” or

“SJU”), which was filed with the FAA on September 10, 2012. Capitalized terms have the same

meanings as in the Final Application, and references are to the Parts and Sections set forth in the

Final Application.

PART IV

Section E

The first sentence of Part IV, Section E is modified to change the words “Aerostar intends to

fully comply” to “Aerostar will comply.”

Section 3.4(b) of the Lease Agreement specifically provides that “[t]he Lessee hereby confirms

its acceptance of all Grant Agreements, including the assurances contained therein.” The section

grants to the Secretary and the FAA and to other federal agencies rights as third-party

beneficiaries to enforce all obligations under the Grant Agreements. As set forth in the

Application, Aerostar is aware of these obligations and is putting in place appropriate procedures

and personnel necessary to fulfill those obligations.

With respect to Grant Assurance 21 (Compatible Land Use), reference is made to Section 3.4(b)

of the Lease Agreement, under which the PRPA specifically “agrees that it will carry out the

terms of any Grant Agreements relating to property or activities that are not part of the LMM

Airport Facility.” A new sentence is hereby be added at the end of Part IV, Section E, as

follows: “In accordance with Section 3.4(b) of the Lease Agreement, the PRPA, in coordination

with Aerostar, will exercise its powers to support necessary actions to assure compatible land

use.”

Section G

In connection with Aerostar’s submission of its final proposal to enter into the Lease Agreement,

the PRPA obtained certifications from Aerostar as to the absence of charges of the type

identified against Aerostar or its key personnel.

# -2- PART V

Section A

The following provides further detail with respect to certain proposed uses of proceeds of the

Lease Agreement:

Early Retirement Fund: In recent years, the PRPA has participated in the Puerto Rico Early

Retirement Incentive Program (“Act No. 70”). Act No. 70 is applicable to all eligible employees

who have at least five years in public service. Under Act No. 70, the employer will provide

either an incentive or a pension depending on the years of service. If the employee has less than

15 years of service, the employer will pay a onetime incentive depending on years of service. If

the employee has more than 15 years of service, the employer will pay a pension between 50%

and 65% of the last two years of service, depending on the amount of eligible years of service.

Once the employee has reached the official retirement year, then the employer will transfer the

responsibility of retirement payments to the Retirement System of the Government of Puerto

Rico. Additional benefits for employees over 15 years of service include the payment of one

year of medical insurance and employer contribution portion due to the Employees Retirement

System of the Government of Puerto Rico.

The PRPA initially estimates that 224 employees will be eligible for a new round of early

retirement under Act No. 70. These initial estimates of the PRPA indicate that the cost of the

retirement window for 224 eligible employees can reach $47.3 million. This cost includes the

payment of retirement pensions, the value of the corresponding Retirement System contributions,

plus the value of corresponding sick and vacation days. The estimated cost of $47.3 million is

subject to change and includes at least two modifications from previous rounds of Act No. 70

that are favorable for eligible employees. These modifications, which are still subject to final

revisions, are the following:

" $700 monthly reimbursement of medical insurance for five years (previous rounds of Act

No. 70 establish medical insurance for only one year); and

" $900 bonus for years of service at the PRPA beginning with 29 years (previous rounds

under Act No. 70 did not include a cash bonus).

Attached hereto as Exhibit A is a spread sheet showing the calculation of the estimated costs

reflected in the Early Retirement Fund.

Reserve for GDB Guaranty: In order to consummate the transaction, all bidders required that the

Government Development Bank of Puerto Rico (the “GDB”) agree to guarantee certain

obligations of the PRPA. The GDB Guaranty is set forth as Schedule 15 to the Lease

Agreement, which has been filed with the Final Application. The potential obligations of the

PRPA under the Lease Agreement are very large, including, in the event of various actions in

violation of Lease Agreement terms, the obligation to make termination payments that are

calculated based upon the initial Lease Agreement proceeds. The PRPA’s financial resources do

not provide the necessary assurance as to such obligations. As a condition of its guarantee, the

GDB has insisted upon the funding of a limited reserve of $15 million to provide some assurance

# -3-

against loss if it should be obligated to carry out its obligations. The amount of the reserve is

limited compared to the potential liability, and the PRPA believes that it is reasonable under the

circumstances and necessary in order to allow the transaction to be consummated.

Transaction Costs: The PRPA, in coordination with the PPP Authority and the Government

Development Bank for Puerto Rico, has initially set aside an amount of $20 million in order to

cover transaction costs. According to Section 17 of the Puerto Rico PPP statute (Act No. 29), the

costs related to the transaction and incurred by the PPP Authority must be paid or reimbursed to

the PPP Authority before the repayment of any debts. The latest estimation of the PPP Authority

for transaction costs reaches $15.8 million. Transaction costs include professional services

rendered by technical and financial advisors, legal counsel, tax and accounting specialists,

environmental services, aviation advisory services, public communications services and certain

operational costs of the PPP Authority, among others.

Other Costs: The PRPA has initially set aside $5 million to cover a potential payment to the

Internal Revenue Service under the Voluntary Closing Agreement Program relating to the

termination of certain American Airlines-supported debt relating to financing of LMM facilities

and to cover costs of completing certain airport improvements that have been committed by the

PRPA to airlines operating at the Airport.

The early retirement fund, GDB Guaranty reserve, transaction costs and other costs are based on

current estimates. If these amounts are reduced, any additional savings would be applied toward

the payment of PRPA obligations, including costs of new amendments to the collective

bargaining agreement described below in this supplement.

As described in Sections A and B of Part V of the Application, the use of LMM airport revenues

to pay non-LMM debt of the PRPA is excluded from the prohibition on diversion of airport

revenue because of the “grandfather” provisions of 49 U.S.C. § 47107(b).

As also stated in the Application, the amount of non-LMM debt that is expected to be paid with

proceeds of the Lease Agreement, approximately $120 million, is less than the amount of debt

that had been issued for PRPA activities outside LMM and that had been authorized to be paid in

whole or in part with LMM revenues as of 1996, the date specified in 49 U.S.C. § 47115(f) for

purposes of determining whether continued reliance upon the grandfather exemption is

appropriate. The records of the PRPA do not allow us to determine the actual amount of LMM

revenues that were being used for payment of such debt in 1996 since financial records were

maintained on a commingled basis. We note, however, that the relevant calculation for present

purposes would be the total LMM revenues that could be used for that purpose over the term of

the Lease Agreement. While we cannot determine the amount precisely, even a relatively low

amount of such LMM revenues in 1996 would aggregate over the term of the Lease Agreement

more than the amount of non-LMM debt to be paid with proceeds. Under these circumstances,

we believe this factor should be considered, along with the other factors set forth in the

Application to support the application for the exemption. In addition, Aerostar requests

confirmation that the grandfather status of LMM would not impact its ability to apply for and

receive AIP discretionary funds it would otherwise be eligible for under the pilot program.

# -4-

In addition to the amounts previously identified in Part V, Section A of the Application and

further supplemented above, the PRPA and Aerostar request exemption for the establishment of

the “Puerto Rico Air Travel Promotion and Support Fund” under Section 4.9 of the new Airport

Use Agreement and the disbursement of funds therein in accordance with its terms. Such fund is

being established, with the consent of the Airlines, as an incentive to promote increased traffic at

the Airport.

Finally, based on the most recent estimates explained above, $500 million (rather than $505

million, as indicated in the Final Application) is expected to be used toward the retirement of

PRPA debt; and $115 million (rather than $110 million) is expected to be used for other

purposes. Within a reasonable period following the closing, the PRPA will provide the FAA

with a complete accounting of the specific use of proceeds of the transaction consistent with the

description in the Final Application.

Section B

The remaining unamortized value of assets financed with FAA grants, based on their estimated

useful lives, is approximately $49 million. Attached hereto as Exhibit B is a schedule of such

assets and the calculation of the remaining unamortized value.

In August 2012, following the announcement of the Lease Agreement with Aerostar, the

Department of Transportation announced that LMM would receive a $14.99 million multi-year

grant to improve runway safety at the airport, which is contemplated to be transferred to Aerostar

upon approval of the transaction. The award of this grant following the announcement of the

Lease Agreement provides further support for the fact that repayment of federal grants in

connection with the transaction would not be appropriate or warranted by any applicable federal

policy.

Section C

As described in the Final Application, under the terms of the transaction any return to Aerostar

must be consistent with (i) its continuation of airline rates and charges under the terms of the

new Airport Use Agreement at levels significantly below those that would otherwise be

applicable, (ii) its compliance with strict standards of operations and requirements for capital

adequacy and maintenance under the Operating Standards and (iii) its maintenance of required

reserves at the Airport. In addition, any return on investment to Aerostar will be the result of its

providing the highest bid for the Lease Agreement after an intensive competitive process among

major airport operators described in Part I of the Application. These factors strongly support the

conclusion that the return to Aerostar under the terms of the transaction will be a reasonable one.

Aerostar has separately provided a confidential briefing to the FAA on its projected revenues and

return on investment.

In addition, as evidenced in the public docket, the project enjoys support from all stakeholders –

from the airlines to public officials. An overwhelming majority of Puerto Rican stakeholders

recently expressed their support during the public comment period that closed in November

2012. Political advocates include Resident Commissioner of Puerto Rico in the U.S. Congress,

Hon. Pedro R. Pierluisi, as well as Puerto Rico’s Democrat Governor Alejandro García Padilla

# -5-

and former Republican Governor Luis Fortuño. Additional supporters include the Mayors of

Aguadilla and Ponce, as well as the Mayor of Fajardo, the largest municipality in close proximity

to Ceiba.

Local businesses support the proposed transaction. Such supporters include the local Chamber

of Commerce, the Puerto Rico Products Association and the Puerto Rico Manufacturers

Association which represent over 10,000 Puerto Rican businesses. Other supporters include

tourism groups such as the Hotel Association, the Puerto Rico Convention Bureau and the Small

Hotel Association, as well as business interests such as trade associations and the airlines.

To further support its exemption requests, Part V.C of the Application is replaced in its entirety

with the following:

C. Describe the specific exemption requested by the private operator under 49 U.S.C. §

47134(b)(3), from the prohibition on use of airport revenue for general purposes,

including the anticipated amount of airport revenue to be used for compensation of the

private operator, the source of airport funds involved, and a description of the effect, if

any, on air carrier or other aeronautical user fees:

Pursuant to 49 U.S.C. § 47134(b)(3), Aerostar requests an exemption from the

provisions of 49 U.S.C. §§ 47107 and 47133 and any other law, regulation, or grant

assurance to the extent necessary to allow Aerostar to earn compensation from the

operations of the airport, including the ability to earn, retain, and use for purposes of

payment of debt, distributions to equity holders, payments under the Lease Agreement,

or otherwise, all of the compensation and/or net revenues from airport operations that

it earns in accordance with the Lease and new Airport Use Agreement and including a

reasonable rate of return on the private operator’s investment and risk undertaken in

operating SJU.

The exemption requested under this Part V.C will only have a positive effect on air

carrier and other aeronautical user fees described in Part III.B.4 of this application. The

transaction is financially sound and in keeping with best practices of other public-privatepartnerships. Pursuant to Section 3.8 of the Lease, Aerostar has agreed to maintain at

all times during the Lease, subject to specified use rights and replenishment obligations,

(a) a debt service reserve equal to the total amount of debt payable with respect to

SJU in the current year and (b) an operating expense reserve equal to 25% of the

projected operating expenses for SJU for the current year. Aerostar must deliver each

quarter to the PRPA a certificate in which it warrants that it is in compliance with

the reserve requirements of Section 3.8 of the Lease.

Initial leverage in the transaction is 52% debt and 48% equity, a ratio that has allowed

Aerostar to achieve investment grade ratings from one of the leading rating agencies in

the capital market. Under the Lease, any increase in Leasehold Mortgage Debt (as

defined in the Lease) or any other Qualified Debt (as defined in the Lease) requires the

submission to the PRPA of an appraisal demonstrating that, at the time of occurrence, the

aggregate amount of the Leasehold Mortgage Debt and other Qualified Debt is not in

excess of 80% of the fair market value of Aerostar’s remaining interest in the Lease.

# -6-

Section 18.1 provides that any Leasehold Mortgage (as defined under the Lease) is

subject and subordinate to the provisions of the Lease, including Aerostar’s obligations to

comply with the Operating Standards and fulfill the terms of all grant assurances. In

addition, as provided in Section 3.4(e) of the Lease, the Lease and any Leasehold

Mortgage are subject and subordinate in all respects to Aerostar’s obligations under any

existing or future agreement or assurance between Aerostar and the United States

government.

This public-private partnership will reinvigorate SJU to better serve residents, workers,

and travelers alike. The significant benefits that will accrue to the many stakeholders

of the airport as a result of this transaction include:

" PRPA:

As part of the transaction there will be multiple new revenue streams for the PRPA,

with cash payments alone totaling approximately $1.2 billion over the term of the

lease. The revenue will come in the form of a $615 million upfront payment from

Aerostar to the PRPA, and anticipated $550 million in annual payments over the

course of the forty year lease. Additionally the PRPA will benefit from

approximately $1.4 billion in airport capital expenditures over the term of the lease –

$200 million of which is planned for the first three years. This cash infusion will help

stabilize the PRPA finances, allowing PRPA to reduce its debt burden, and create a

sustainable and solvent organization that will be in a much stronger financial position

to meet the future development needs of Puerto Rico.

" SJU:

From a capital investment perspective, Aerostar’s capital investment is nearly four

times greater than the PRPA’s average annual investment in LMM in recent years.

Between fiscal years 2006 and 2012, the PRPA’s average annual investment in the

airport was $13.5 million. Aerostar proposes to invest approximately $46 million per

year between 2013 and 2017. The estimated cost of the General Accelerated

Upgrades alone is $16-20 million. From a managerial perspective, the airport will

benefit from Aerostar’s cohesive and coherent management vision. With the

appointment of Aerostar as a committed, long-term operator, capital expenditures will

be deployed more efficiently and with the best interests of the traveler in mind. The

airport will benefit from a long-term plan, and the result will be best-in-class

infrastructure, increased volume, and a comprehensive passenger experience.

" Airlines and General Aviation:

SJU will receive an estimated $1.4 billion in new capital improvements over the term

of the lease, specifically targeted by Aerostar to expand the capacity and service

levels at the airport and to upgrade and replace the existing airfield and terminal

infrastructure.

# -7- The Airlines have unanimously supported this transaction, which provides

management stability at SJU and reduces their projected airport costs by over $100

million on a net present value basis over the first 15 years of the Lease. As described

in Part III.B.4, during the period between closing of the Lease and the end of the fifth

full calendar year of the term, the total annual airline fees (including landing and

terminal fees), will not exceed $62 million. Beginning in the sixth full calendar year

of the term, the amount of total annual airline fees will be increased each year only by

a percentage not to exceed the percentage increase in “core” inflation (i.e., the annual

percentage change in Consumer Price Index, excluding food and energy). This

decrease in airport fees is anticipated to stimulate traffic and lead to greater route

diversity to and from the San Juan market.

As further described in Part VII.A.11, general aviation will also benefit from the

lower airport fees agreed to in the lease, as well as the planned airfield capital

improvements that will increase capacity and safety at SJU. Financial and

management stability at SJU will encourage new business initiatives at SJU such as

upgraded and improved facilities and services from the airport’s fixed base operators.

Aerostar does not currently intend to apply to operate the FBOs at SJU as a way of

supporting the local business operators for general aviation at SJU.

" Airport Employees:

All current airport employees will be eligible to continue employment with the PRPA

or be hired as new employees of Aerostar. As a wholly-owned government

instrumentality, the PRPA is not subject to the National Labor Relations Act

(“NLRA”) or the Labor Management Relations Act (“LMRA”) and must comply

with Act No. 130 of the Legislative Assembly of Puerto Rico, enacted on May 8,

1945, as amended, also known as the “Puerto Rico Labor Relations Act” (“PRLRA”).

The current Collective Bargaining Agreement (“CBA”) between the union and the

PRPA is designed for employees of a government instrumentality governed

exclusively by the PRLRA. However, since Aerostar is a private company, it is

subject to the NLRA and the LMRA. The current CBA between the PRPA and the

union contains many provisions that would be in violation of the NLRA and/or the

LMRA and therefore Aerostar cannot become a party to the current CBA.

As Aerostar committed in the Lease, it has already completed more than 150

interviews of current airport employees, which represents all of the airport employees

who have applied for an interview. As Aerostar transitions into, and the finalizes, the

closing of the Lease and management of the Airport, it intends to continue to

interview additional employees and seek to maximize retention of employees.

Throughout this process, Aerostar will offer fair and market comparable wages, as

well as the opportunity to join a world-class organization committed to transforming

SJU into the leading airport in the Caribbean, for those applicants who are interested

and qualified. Employees who do not join Aerostar will remain employed by the

PRPA in other capacities, but under the same compensation and benefit package they

currently enjoy under the CBA. This mutually beneficial arrangement provides

current PRPA employees the option of new career opportunities with Aerostar or the

# -8- ability to continue their employment with the PRPA under the terms negotiated by

their union.

" Regional Airports:

The proposed transaction will provide for a stable PRPA, the owner and operator of

the regional airports. The transaction facilitates funding for the support of regional

airports. The PRPA will set aside a minimum of $25 million out of the $615 million

upfront commitment for the development of regional airports. In addition, regional

airports will benefit from an anticipated $550 million in annual payments over the

course of the forty year lease to the PRPA. As a result of such benefits, the Mayors

of the municipalities in which the two largest regional airports are located, Aguadilla

and Ponce, submitted comments to the Federal Register in support of the transaction.

To provide perspective, Aguadilla, Ponce and LMM handle approximately 99% of

commercial enplanements in Puerto Rico.

" Puerto Rico Economy:

This transaction is expected to substantially increase economic growth in Puerto Rico.

According to the Economic Impact Assessment of the Luis Muñoz Marín

International Airport Public Private Partnership (EstudiosTecnicos, Inc., June 2012),

during the initial ten years of the Lease Agreement, local businesses are expected to

benefit from an additional $2.3 billion annually in new commercial activity – which

translates to nearly 15,000 new jobs and $437 million in annual salaries.

This partnership and the resulting infrastructure improvements will significantly

increase travel through Puerto Rico – leading to an estimated increase of $8.8 billion

in additional visitor expenditures within the first ten years. Analysis on the economic

impact of new airline service to Puerto Rico commissioned by the Puerto Rico

Department of Economic Development and Commerce and also included in the FAA

application revealed that each new daily flight from the U.S. to Puerto Rico “is

estimated to produce a direct spending impact of $43.4 million per year,” which

amounts to a $76.9 million annual contribution to Puerto Rico’s GDP.

In exchange for these multiple stakeholder benefits, Aerostar expects to earn a reasonable

rate of return (including cost of capital and risk premium) on its capital expenditure

projects (excluding those that are the recipient of past Airport Improvement Program

grants) and aeronautical rates and charges after operating and cost commitments are

satisfied. Additionally, Aerostar plans to increase its revenue by further developing the

non-aeronautical revenues from the Airport, which have never been the recipient of any

federal grants.

# -9- PART VII

Section A(3)

Attached as Exhibit C to this Supplement is a copy of the opinion of Aerostar’s counsel with

respect to the continued operation of the airport in the event of bankruptcy or other financial or

legal impairment of the private operator.

Section A(10)

The following is a description of the current status of Aerostar’s compliance with the provisions

of the Lease Agreement relating to current LMM employees. Aerostar has already completed

more than 150 interviews of current Airport employees, which represents all of the Airport

employees who have applied for an interview. As Aerostar transitions into, and then finalizes,

the closing of the Lease and management of the Airport, it intends to continue to interview

additional employees. Throughout this process Aerostar will offer fair and market comparable

wages, as well as the opportunity to join a world-class organization committed to transforming

SJU into the leading airport in the Caribbean, for those applicants who are interested and

qualified. Employees who do not join Aerostar will remain employed by the PRPA in other

capacities, but under the same compensation and benefit package they currently enjoy under the

CBA. This mutually beneficial arrangement provides current PRPA employees with the option

of new career opportunities with Aerostar or the ability to continue their employment with the

PRPA under the terms negotiated by their union..

In the meantime, the PRPA and the HEO labor union entered into a new collective bargaining

agreement, the English translation of which is attached as Exhibit D . In general terms, the new

collective bargaining agreement provides for increases in monthly salaries to HEO union

employees and proposes increases in the PRPA’s contributions to HEO’s Wellbeing Fund and

augments the daily expense allowance for eligible employees. In addition, the agreements

include the payment of a “signing cash” bonus for all HEO employees. As described above,

Aerostar is not eligible to become a party to this agreement.

The PRPA has separately provided a new collective bargaining agreement to the FAA. Aerostar

continues to maintain a direct and open communication with PRPA labor union leaders as a way

to build trust and a productive relationship with the workforce.

Section A(11)

The following are specific benefits of the proposed transaction for general aviation at LMM and

other airports in Puerto Rico:

Reduced landing fees. Landing fees under the new Airport Use Agreement will be reduced from

those projected under continued management by the PRPA. Those reduced fees will be

maintained under the terms of the agreement for five years without escalation, and thereafter

increased only with core inflation. This is a cost savings for all airlines, resulting additionally in

savings to landing rates for general aviation users.

# -10-

LMM improvements. Aerostar will undertake capital improvements at the airport that will

benefit all airport users, including the repair of access roads, airport lighting, taxiways, and

runways.

Regional airport improvements. The Regional Airport Plan provides for the PRPA to focus

specifically on the needs of the general aviation following completion of the LMM transaction.

ASUR General Aviation Benefits. Attached as Exhibit E to this Supplement is a summary of

general aviation benefits, enhancements, and service improvements provided by ASUR at

Cancun International Airport post-privatization.

# -11- ADDITIONAL INFORMATION

Material Litigation

Attached as Exhibit F is a list of all material litigation to which the PRPA is a party involving the

Airport. Litigation with concessionaires or other contractors relates to the interpretation or

application of contracts to various aspects of Airport operations and does not arise out of the

proposed lease of the Airport.

December 28, 2012 Correspondence

Attached as Exhibit G is a copy of the e-mail correspondence from the Executive Director of the

PPP Authority, David Alvarez, concerning a letter dated September 15, 2011, from the PRPA to

Alliance Duty Free, Inc.

Airport Property; First Amendment to the Lease Agreement

The PRPA and Aerostar have revised Schedule 1 to the Lease Agreement with respect to the

Airport property. Attached as Exhibit H is a copy of the First Amendment to the Lease

Agreement, including Schedule 1 to the Lease Agreement as revised. The First Amendment also

revises Section 3.4(a) of the Lease Agreement to provide that the PRPA, in addition to Aerostar,

is responsible for ensuring that safety and security at the Airport are maintained at the highest

levels and that any collective bargaining agreement covering employees at the Airport in effect

as of the closing will not be abrogated.

Regional Airports Plan

Attached as Exhibit I are responses of the PRPA to the FAA’s summary review of the Regional

Airports Plan.

Airline Use Agreement Changes; Capacity Enhancement Plan

Attached as Exhibit J is a copy of the agreed-upon Capacity Enhancement Plan between Aerostar

and the Airlines, which has the effect of amending certain elements of the Airline Use

Agreements.

Collective Bargaining Agreement Responses

Attached as Exhibit K is a copy of correspondence from Acevedo & Acevedo Law Offices, labor

counsel to the PRPA, with respect to certain questions from the FAA with respect to the

collective bargaining agreement covering employees at the Airport.

Concessions Process at the Airport

Attached as Exhibit L is email correspondence from the Executive Director of the PPP

Authority, David Alvarez, regarding the PRPA’s process with respect to retail concessions at the

Airport.

# EXHIBIT A TO SUPPLEMENT

Retirement Fund Calculation

See AttachedEXHIBITATOSUPPLEMENT*SummaryTableofCostsofProposedRetirementPlanunderAct70*2012201320142015201620172018GrandTotal/ElegibleEmployeesActualYear1Year2Year3Year4Year5Year6Act70PlanTrustEmployees53115CarrerManagementEmployees5814813661158HEOEmployees11729919162519117UDEMEmployees441831135444TotalElegibleEmployees224642044253635224SalariesTrustEmployees397,056$193,905$156,681$268,632$619,218CarrerManagementEmployees$3,006,934$540,432$693,429$1,440,288$853,596$1,137,780$2,324,416$6,989,941HEOEmployees$4,301,047$846,191$483,421$1,538,243$1,710,122$3,454,294$2,635,086$10,667,356UDEMEmployees$1,750,413$545,018$176,280$967,600$356,903$746,460$616,723$3,408,985GrossSalaryCosts$9,455,450$2,125,545$1,353,130$4,102,811$2,920,622$5,338,535$5,844,857$21,685,499BenefitsChristmasBonus$578,816$0$0$0$0$0$0$0Sinot/DriversInsurance$12,096$0$0$0$0$0$0$0SocialSecutiry$723,342$0$0$0$0$0$0$0RetirementSystem(1%annualincrease)$1,066,102$479,310$332,193$1,089,296$833,837$1,630,922$1,902,501$6,268,061MedicalInsurance($700.00)est.$1,881,600$0$0$0$0$0$0$0StateInsuranceFund$283,663$0$0$0$0$0$0$0TotalBenefits$4,545,619$479,310$332,193$1,089,296$833,837$1,630,922$1,902,501$6,268,061Salaries+Benefits$14,001,069$2,604,856$1,685,323$5,192,108$3,754,459$6,969,457$7,747,358$27,953,560AdditionalBenefitsSpecialBonus$900x30Years($27k/Employee)$1,670,400$504,000$1,069,200$585,000$810,000$756,000$5,394,600IncentiveBonus30yrsUp/$25,000.0021$525,000$525,000IncentiveBonus24-29yrs/$20,000.00$860,000$400,000$880,000$500,000$720,000$700,000$4,060,000MedicalInsurancex5yrs($700.00est)$2,688,000$840,000$1,848,000$1,050,000$1,512,000$1,470,000$9,408,000TotalAdditionalBenefits$5,743,400$1,744,000$3,797,200$2,135,000$3,042,000$2,926,000$19,387,600EstimatedAnnualSavingstoPRPA$14,001,069EstimatedCostsofRetirementPlanAct70$8,348,256$3,429,323$8,989,308$5,889,459$10,011,457$10,673,358$47,341,160*Source:PRPA.Estimationssubjecttochange.

# EXHIBIT B TO SUPPLEMENT

Unamortized Value of Grant-Financed Assets

See 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# EXHIBIT C TO SUPPLEMENT

Opinion of Aerostar’s Counsel

See Attached

# EXHIBIT D TO SUPPLEMENT

New Collective Bargaining Agreement

See AttachedUNOFFICIALTRANSLATIONDECEMBER7,2012STATEMENTOFPRINCIPLESCollectivebargainingconstitutesamechanismwhichinourdemocraticsystemofgovernmenthasproventobeaneffectivemethodtoachieveindustrialpeace.Thecontractingpartiesrecognizeandstatethatthecollectivebargainingofreasonablesalariesandfairworkingconditionspromotetheprogressoftheindustryandinturnpromotesthesocio-economicwelfare,notonlyoftheworkers,butofthecommunityingeneral.ThishasbeendemonstratedsincethesigningofthefirstCollectiveBargainingAgreementbetweenthePuertoRicoPortsAuthorityandtheHermandaddeEmpleadosdeOficina,ComercioyRamasAnexasdePuetoRico,Inc.onJune30,1956.Theappearingpartiesratifyatthistimethecommitmentthatasofthatdatetheyassumedtoworktowardsbetterrelations,promoteindustrialpeace,promotetheprogressoftheindustryandimprovetheeconomicandsocialconditionsoftheworkers.ThroughthisCollectiveBargainingAgreement,theAuthorityandtheBrotherhoodreaffirmandagreetohonorsaidcommitmentsandpurposes.2CONTRACTINGPARTIESASPARTYOFTHEFIRSTPART:THEPUERTORICOPORTSAUTHORITY,hereinafterthe“Authority”,representedbyitsExecutiveDirector.ASTHEPARTYOFTHEOTHERPART:TheHERMANDADDEEMPLEADOSDEOFICINA,COMERCIOYRAMASANEXASDEPUERTORICO,INC.(PUERTOS),hereinafterthe“Union”or“theBrotherhood”,representedbyitsauthorizedofficers.ARTICLEIUNIONRECOGNITIONTheAuthorityrecognizestheBrotherhoodastheexclusiverepresentativeofalloftheworkersincludedintheBargainingUnittonegotiatecollectivelywithregardtosalaries,workschedules,complaintsandgrievancesandotherconditionsthataffecttheemploymentoftheworkerscoveredbythisAgreement,pursuanttoDecisionissuedonMarch25,1977bytheHonorableLaborRelationsBoardinCasePC32,D745.ForpurposesofthisCollectiveBargainingAgreement,theterms“worker”and“employee”areinterchangeable,sothattheyshallbeusedalternativelyinbothsingularandplural.ARTICLEIIMANAGERIALRIGHTSTheUnionRecognizesandacceptsthattheadministrationoftheAuthorityandthemanagementoftheworkforceareexclusiveprerogativesoftheAuthorityTherefore,exceptasexpresslylimitedbythetermsofthisAgreement,theAuthoritywillretaintheexclusivecontrolofalloftheaffairsrelatedtotheoperation,managementandadministrationofthecompany.SaidpowersandprerogativeswillnotbeusedbytheAuthorityarbitrarilyorcapriciouslyagainstanyemployee,norforthepurposeofdiscriminatingagainsttheUnionoritsmembers,norforanyactionthatconstitutesaviolationtowhatisprovidedinthisAgreement.ARTICLEIIICLOSEDSHOPSection1:TheAuthorityrecognizesClosedShopfortheselectionofpersonnelwithinthefollowingclassifications:MaintenanceWorkerIFerryOperatorMaintenanceWorkerIIOperatorLightEquipmentSailorOperatorHeavyEquipmentPlumberCraneOperatorLightVehicleDriverVesselConservationWorkerHeavyVehicleDriverTelephone-ReceptionistVesselCaptainJanitorElectricianMachinistWarehouseForemanGuardWarehouseAssistantRampInspectorI3MaintenanceMechanicRampInspectorIIAutomotiveMechanicIRampInspectorAutomotiveMechanicIIElectricianAssistantDieselMechanicVehicleMaintenanceAssistantWaterSystemMechanicVehicleMaintenanceAssistantIIMasonRefrigerationTechnicianAssistantIWelderRefrigerationTechnicianAssistantIIPainterDieselMechanicAssistantCarpenterAutomotiveMechanicAssistantCarpenterIIMaintenanceMechanicAssistantTinkerAssistantWelderOfficerClerkFerryServiceAssistantPlumberAssistanttoMasonAssistantPainterAssistantTinkerAssistantMasonSection2:ThoseworkerswhointheRegionalAirportsandCaptainciescontinuouslyperformfunctionsinthefollowingclassificationswillbeclassifiedasaConservationIIand/orMaintenanceWorkerII:A)CarpenterE)PlumberB)MasonF)PainterC)TinkerG)DieselMechanicD)WelderH)MaintenanceMechanicARTICLEIVUNIONSHOPSection1:ItwillbeacontinuousconditionofemploymentthateverypresentandfutureworkeroftheAuthoritycoveredbythisCollectiveBargainingAgreemententer,beinandremainatalltimesaffiliatedasamemberoftheUnion.Section2:AlloftheclassificationsnotincludedinArticleIII(ClosedShop)willbelongtotheUnionShop.Section3:TheAuthoritywillnotifytheUnion,withinatermthatwillnotexceedthree(3)businessdays,thename,dateofemploymentandoccupationofallnewworkers,whowillaffiliatetotheUnionnolaterthanfifteen(15)daysasofthedateoftheiremployment.Section4:TheAuthority,atthewrittenrequestoftheUnion,willseparatefromtheiremploymentanyworkerwhodoesnotaffiliateorceasestoremainaffiliatedasamemberoftheUnion,whicheverthecase.Saidrequestinwritingwillbenotifiedtotheaffectedemployeeandwillstatethereasonsfortherequest.Section5:Ifanemployeeisseparatedfromhis/heremploymentattherequestoftheBrotherhoodandtheaffectedemployeetakesthecasetotheLaborRelationsBoardorcompetentauthorityorbodyandobtainsafavorabledecision,andthereforeadversetotheactiontakenbytheAuthority,theBrotherhoodwillreimbursetheAuthorityand/oritsExecutive4Directortheamountoftheindemnificationwhichtheemployeeisentitledtoasaresultofthejudgmentorresolutionissued.Section6:TheconditionofaffiliatedmemberwillbedeterminedbytheUnion,onthebasisofitsConstitutionandRegulationspursuanttotheLaborRelationsActanditsregulations.ARTICLEVBARGAININGUNITSection1:TheBargainingUnittowhichthisAgreementreferstoiscomprisedbytheadministration,operationandmaintenanceworkersasclassifiedinthisCollectiveBargainingAgreementemployedbytheAuthoritytocarryoutitsbusinessoractivitiesrelatedtotheoperation,development,conservation,maintenanceandadministrationofthemaritimeandairtransportationfacilities,oranyotherpresentorfutureactivitywhichtheAuthorityisengagedinrelatedtothisAppropriateUnit.Section2:ExcludedfromtheAppropriateUnitaretheexecutive,administrative,supervisory,confidentialemployeesoranyotheremployeeswithauthoritytohire,fire,promote,disciplineorinanyothermannervarythestatusoftheemployeesormakerecommendationstothateffect.TherearealsoexcludedanyotheremployeesincludedinotherappropriatecollectivebargainingunitsalreadyestablishedattheAuthority;furtherexcludedfromtheunitisanyemployeewithinterestsintimatelylinkedtomanagement.Section3:NoworkercoveredbythisAgreementmaybetransferredtoapositionoutsidetheBargainingUnitwithouthis/herexpressconsent.Section4:Incaseofanydiscrepancywithregardtothefactthatanyclassificationshouldbeexcludedfromthepositionofexecutive,administrator,supervisororemployeeinaconfidentialposition,thematterwillbesubmittedtotheLaborRelationsBoardforitsconsiderationanddecision.Section5:ThefollowingpositionsarenotincludedwithintheBargainingUnit:a)AttorneysoftheLegalDivisionb)PublicRelationsOfficersc)Budget,OrganizationandMethodTechniciansd)SpecialAssistanttotheExecutiveDirectore)SpecialAssistanttotheComptrollerf)SpecialAssistanttotheHeadofAviationg)PersonnelTechniciansh)35ConfidentialSecretariesi)BudgetOfficer5j)Two(2)OfficeClerksinchargeofPersonnelFiles(Filing)ARTICLEVIDEDUCTIONOFDUESSection1:TheAuthorityagreestodeductfromthesalaryorearningsoftheemployeeswhoaremembersoftheUniontheamountoftheinitiationduesandofanyotherregular,specialorassessmentthattheUnionimposesonitsmembersinaccordancewithitsConstitutionandRegulations.TheBrotherhoodwillnotifytheAuthorityinwritingwithregardtotheduesorassessmentstobedeductedfromtheemployeescoveredbythisAgreement.Section2:TheAuthoritywillsendtotheTreasureroftheUnionortotheofficialdesignatedbythesame,afterpostingabond,theamountofthecorrespondingduesduringthetwelve(12)calendardaysfollowingthefifteenby-weeklypayment,unlessthereareextraordinarycircumstances.TheAuthoritywillsendtheUnionamonthlylistwiththenamesoftheemployeesfromwhomsaiddeductionshavebeenmade,alsocontainingtheindividualamountandtotalofthesame.TheAuthoritywilldeducttheinitiationduesintheamountandtheinstallmentsestablishedbytheRegulationsoftheUnionfromeveryemployeeassoonashe/sheapproveshis/herprobationaryperiod.Section3:Ifanycompetentbodydeterminesthatanyduesorassessmentwereillegallyestablished,theUnionwillreleasetheAuthorityofallresponsibilityandwilldirectlymakeanyreimbursementorderedbysaidbody.ARTICLEVIIUNIONDELEGATESSection1:ThedelegateswillrepresenttheUnionintheprocessofadministeringthisCollectiveBargainingAgreementbeforetheAuthorityanditsrepresentativesinthosemattersthatthisAgreementrecognizestheirfacultytodoso.ThesedelegateswillrepresentandadvisetheemployeescoveredbythisAgreementofalltherightsandresponsibilitiesprovidedbythisAgreement,willensurecompliancewiththisAgreementandwillhavethefacultytoassistco-workerswhohaveacomplaintorgrievanceorwhenrequiredbyanyHeadorSupervisortobepresentatthetimethathe/sheisgoingtodisciplineanemployeewhichisrepresentedbythedelegate.Section2:NodelegatemayinterveneinanotherDepartment,OfficeorSectionotherthantheoneassignedtohim/her.Section3:Thedelegateorthealternatedelegatewillbegrantedreasonabletimeduringworkinghourstoattendmattersrelatedtoproceduresandfilingofcomplaintsortodiscuss6withmanagerialofficialsmattersrelatedandcoveredbytheprovisionsofthisAgreement,withoutaffectinginanymannerwhatsoeveranytypeofleaveortheirsalary.Thealternatedelegateswillactonlyintheabsenceofthepermanentdelegateorathis/herexpressrequestorofthatofthePresidentoftheUnion.Section4:Thedelegateorthealternatedelegatewillobtainthepriorpermissionofhis/herimmediatesupervisortoleavehis/herworkareainordertoattendmattersrelatedtotheirfunctionsandoncesaideffortshaveconcludedhe/shewillreturntowork.Themeetingsbetweenthedelegateandtheemployeethatneedshis/herserviceswillnormallybeheldintheimmediateareaoftheworkareaoftheemployee.Section5:WhentheAuthorityexpandsitsservicescreatingadditionalunitsand/orincreasesthepersonnelsubstantiallyintheexistingservices,theparties,prioragreement,willagreeonthedesignationofthecorrespondingdelegates.Section6:ThedelegatewillrepresenttheemployeescoveredbythisAgreementincasesofappealsattheleveloftheheadofthedependencyorunitinvolved,beingthePresidentoftheUnionoranyothermemberoftheBoardofDirectorsabletoparticipateinsaidrepresentation.WhenthedelegateorofficialoftheUnionrequirestimetoattendamatterwithinhis/herfacultiesoutsideofhis/herworkarea,he/shewillgivepriornoticetothesupervisorortohis/heralternate,whowillgrantthepermission,exceptinextraordinarycircumstances,inwhichcasethepermissionwillbegrantedtoanotherofficeroftheUnionofsaidworkarea.Section7:AllofthedelegateswillberecognizedbytheAuthorityoncetheyhavebeennotifiedtotheLaborRelationsOfficebythePresidentoftheUnionandanychangethatmayarisewillbeeffectiveonlyafterbeingnotified.Therewillbenodiscriminationagainstthedelegateintheexerciseofhis/herfunctions.Section5:TheAuthorityrecognizesthefacultyoftheVicePresidentsoftheArea(Aviation-Maritime-CentralOffice(three))toattendmatterswithinandoutsidetheworkarea,relatedtotheadministrationofthisAgreement,duringtheirlaborhours,withoutchargetoanytypeofleave,norsalaries,priornotificationtothesupervisororhis/hersubstitute,whowillgrantthepermission,exceptinextraordinarycircumstances.ARTICLEVIIIPERSONNELSELECTIONANDAPPOINTMENTSection1:A)PERSONNELINCLOSEDSHOP7WhentheAuthorityneedspersonneltocoverpositionsinclassificationsthatfallundertheClosedShop,itwillrequestthesamefromtheBrotherhoodinwriting,indicatingthetypeofpositionandthoseminimumandspecialrequirementsrequiredbytheAuthoritytocoverandperformthedutiesofthepositionwhichhavebeenpreviouslynotified.TheBrotherhoodwillprovidesaidpersonnelinalistofthree(three(3)candidates-newentry),throughendorsementinwritingandreferringtothepersonnelrequisitionnumberissuedbytheRecruitmentOffice(TC:Req.No.).TheBrotherhoodwillnotendorseanypersonneltoapositionintheClosedShop,unlessithasanofficialrequisitionoftheAuthority.TheBrotherhoodwillprovidesaidpersonnelwhenthesameisrequestedbytheAuthority,butifthepersonnelprovidedbytheBrotherhooddoesnotmeettherequirementsestablishedfortheposition,theAuthoritymayrejectthesameandwillrequestnewcandidatesfromtheBrotherhood.IftheBrotherhooddoesnotprovidethepersonnelrequiredwithinatermofseventytwo(72)hours,three(3)businessdays,theAuthoritywillbefreetochosethesame,providedhe/shefulfillstherequirementsfortheposition,havingtheAuthoritytonotifytheBrotherhoodofthenameofthepersonselectedsothatitwillknowoftheirselection.B)AFFIRMATIVEPLANSTheUnionagreestocomplywiththerequirementscontainedintheAffirmativeActionplans(EqualEmploymentOpportunity)adoptedbytheAuthorityinrecruitingpersonnelintheClosedShop.Section2:UNIONSHOPPERSONNELThepersonnelintheUnionShopwillberecruitedfromthesourceofemploymentavailableprovideditiscarriedoutinthefollowingorderofpriority:a)RelocationRegistryb)RegistryofPromotionsc)RegistryofInternalTransferd)RegistryofReentrye)RegistryofAdmittanceEveryregularemployeewillbemaintainedinthecorrespondingregistryoncehe/shehasapprovedthetestsandrequirementsrequiredbytheAuthorityforatermofone(1)year,providedtherequirementsofthepositiondonotchange.Iftherequirementsofthepositionchange,andafterananalysismadebytheRecruitmentSection,itwillverifythattheregularemployeesinpromotionandregularemployeeintransfer,includedinthecanceledregistry,qualifyundertheexistingrequirementsinthenewregistry,theywillbepassed8tobeincludedinthenewregistry.SothatthisSectionwilloperateautomaticallytheemployeewillmakesurethathis/herofficialpersonnelrecordcontainsalloftheinformationandrequirementspertinenttothenewposition,afterhavingtheRecruitmentSectioninformedtheemployeesinpromotionandtransferofthenewnecessaryandpertinentrequirements.Section3:APPOINTMENTSINREGULARPOSITIONSTheAuthoritywillextendanappointmentinpositionsbelongingtotheBargainingUnitas:a)Regularb)Probationaryc)Substituted)TemporaryTheregular,probationaryandsubstituteappointmentsmayonlybemadetopersonswhoqualifyfortheposition.A)RegularEmployeesarethosewhohavereceivedanappointmentfromtheExecutiveDirectororhisauthorizedrepresentativetocoveraregularpositionaferhavingapprovedtheprobationaryperiod.B)ProbationaryEmployeesarethoseappointedinapositionthatcorrespondstotheBargainingUnitandwhohavetoapproveaprobationaryperiodbeforebeingabletoreceiveanappointmentasaregularemployee.Theprobationaryperiodwillneverbelessthanthree(3)calendarmonths.TheAuthoritywillnotifyitsdeterminationtotheBrotherhoodpriortorejectinganemployeeinaprobationaryperiodandbeforedismissingthesame.C)PromotedProbationaryEmployeeisaregularemployeewhopassestooccupyapositioninaclassificationwithahigherremunerationforwhichaprobationaryperiodofthree(3)calendarmonthsisrequired.Ifthepromotedemployeedoesnotapprovetheprobationaryperiod,he/shewillbeentitledtoreturntohis/herpreviousposition.Iftheemployeerequeststoreturntohis/herpreviouspositionwithouthavingapprovedhis/herprobationaryperiod,he/shewillbeeliminatedfromtheregistryofeligiblesfromwhichhe/shewascertifiedforpromotion.1)IftheAuthoritydecidestocoverthevacancyleftbythepromotedprobationaryemployee,ifthereexistsaregistry,itwillbecoveredinthefirstinstanceinaninterimmannerwiththecandidatewiththegreatestseniorityinpromotionandsoonsuccessively.Ifthereisnoregistrythepositionwillbecoveredwithatemporaryemployee.TheAuthoritywillcoverthepositionwithinthenextsixty(60)dayspursuanttotheprovisionsofthisAgreement.9D)SubstituteEmployeeisonewhoreceivesanappointmenttosubstitutearegularemployeewhosepositionwillbeunoccupiedduringaspecificperiodofnotlessthanthree(3)calendarmonths.Thesubstituteemployeeswillhavethesameeconomicbenefitsastheregularemployees,exceptforLifeInsuranceandtheRetirementSystemoftheEmployeesoftheCommonwealthofPuertoRico.Thissubstituteemployeewillceaseinhis/heremploymentassoonastheregularemployeewhohe/shesubstitutesreturnstohis/herpositionorbefore,pursuanttootherprovisionsofthisAgreement.Everysubstituteemployeewhohassubstitutedaregularemployeeforsix(6)monthsormorewillbeevaluatedbyhis/hersupervisorandsaidevaluationwillbesubmittedtothePersonnelOffice.Thesubstituteemployeewhohassubstitutedaregularemployeeforsix(6)ormoremonths,afterasatisfactoryevaluationfromhis/herimmediatesupervisor,andbeinginaregistryofadmittance,willhavepriorityoveranyothercandidateintheregistryofadmittance.E)TemporaryEmployeeisonewhohasreceivedanappointmentassuchwithintheBargainingUnitforaperiodthatwillnotexceedninety(90)businessdays.Thisemployeeisusedtoperformworkofatransitoryortemporarynatureintransitoryortemporarypositions.Ifthesameemployeecontinuesforaperiodinexcessofninety(90)days,he/shewillbecomeaprobationaryorregularemployeeandtheAuthoritymaynotdismisshim/hertoappointanewtemporaryemployeetoperformthesamefunctions.AnyappointmentofatemporarynatureforapositionwithintheBargainingUnitwillbemadefromthelistofeligibles.Ifthereisnolistofeligiblesorifnoneofthecandidatesacceptsthetemporaryappointment,theAuthoritywillcommunicatewiththeBrotherhoodtodeterminesaidappointment.Temporaryemployeeswillbeusedtosubstituteregularemployeesforatermthatwillnotexceedninety(90)days.Ifthistermisexceeded,he/shewillbecomeasubstituteemployee.Section4:EMPLOYEESINSPECIALTRAININGInthosepositionswheretheAuthorityrequiresaspecialtrainingtoevaluateandqualifytheemployee,his/heroriginalappointmentwillbemadeasanemployeeinspecialtraining.A)AnEmployeeinSpecialTrainingisonewhohasreceivedanappointmentassuchwithintheBargainingUnitforaperiodthatwillnotexceedninety(90)calendardaysinthepositionsthatarelistedhereinafter:1)ElectronicsSystemProgrammer2)AirRescueSpecialist3)PortsCaptain104)RampInspectorB)AnEmployeeinSpecialTraining,ifhe/sheapprovesthefirstphasethatcovershis/herspecialtraining,willreceiveanappointmentasaprobationaryemployeepursuanttoClauseBofSection3ofthisArticle,beforereceivinganappointmentasaregularemployeeinthepositionforwhichhe/shereceivedthespecialtraining.C)IftheAuthorityhastocoverthepositionthattheemployeeinspecialtrainingonpromotionleavesvacant,itwilldosowithasubstituteemployee;itbeingprovidedthatiftheemployeeinspecialtrainingforappointmentdoesnotapprovesaidtrainingorsubsequentlydoesnotapprovetheprobationaryperiod,he/shewillreturntothepositionfromwhichhe/sheoriginates.D)TheprovisionsofthisSectioncoversemployeesofnewadmittanceaswellasregularemployeesonpromotion.Section5:PROJECTEMPLOYEESA)CONSTRUCTIONPROJECTEMPLOYEE1)Theconstructionprojectemployeeisonewhoreceivesanappointmenttoperformworkonaspecificconstructionproject.2)Theconstructionprojectemployeewhosedurationextendsformorethanthree(3)monthswillhaveallofthebenefits,privilegesandobligationsthattheregularemployeeshaveinthisAgreement,oncetheyhavefulfilledthree(3)monthsasanemployeeinaparticularproject.TheconstructionprojectemployeewillnotbeentitledtoenterintotheRetirementSystemoftheCommonwealthofPuertoRicoandhisoccupancyofthepositionwillbeindefiniteandwillendatthetimetheparticularprojectconcludesorbeforeatthediscretionoftheAuthority.B)PROJECTEMPLOYEETOREGULAREMPLOYEEEveryprojectemployeethatproceedstooccupyaregularpositionwillbeaccreditedthetimehe/shewasemployedinsaidcapacityforpurposesofpermanenceandseniority.Thetimeintheprojectpositionswillbecreditedtotheprobationaryperiodinregularpositions,whenthepositionthathe/sheisgoingtooccupyentailssimilardutiesorfunctions,orwhensaidpositionisofthesameclassificationastheonehe/shehadintheprojectandtheirincumbencyhasbeenforthree(3)ormoremonths.Section6:SUMMEREMPLOYEESThesummerstudentprogram,forallpurposes,willbeconsideredasaproject,andthestudentswillnotbeentitledtootherbenefitsoftheparticularpositionexcepttheminimumsalaryofthesame.11TheAuthoritywillcoordinatethemannerinwhichsaidprogramwillbeimplementedwiththeBrotherhoodpriortorecruitment.Section7:COMPENSATIONOFPERSONNELOFNEWADMITTANCEA)TheAuthoritywillpaynewemployeesthebasicsalaryofthepositiontobecovered.B)Incaseofaprovendifficultyintherecruitmentforaspecificposition,theAuthoritywillnotifythistotheUnioninordertoestablishatypeofcompensationhigherthanthebasicsalaryofthepositioninthescale.Ifthereareemployeesperformingthesamepositionwithalowersalarythantheonegrantedtothenewemployee,theirsalarywillbeincreasedtothebasicofthenewemployee.Ifanyoftheemployeesperformingthesamepositionhasfive(5)ormoreyearsofservice,he/shewillreceivetheequivalentofonestepinthescaleabovethenewbasicgranted.Section8:NOTIFICATIONOFAPPOINTMENTANDDUTIESTheAuthoritywillgiveeveryemployeeappointedinaprobationaryorregularnatureandtotheUnionacopyoftheappointmentandthedutiesandresponsibilitiesofthepositionatthelatestwithinfour(4)businessdaysfollowingthedayoftheappointment,throughasignedreceiptthatverifiesthedateofthedelivery.ARTICLEIXPOSTINGANDADJUDICATIONOFPOSITIONSSection1.Everypositionofanewcreation,oravacancythatistobecovered,willbepostedintheSpanishlanguagethroughanoticespecifyingtherequirementstoqualifyforatermofnotlessthanten(10)daysnormorethanthirty(30)calendardays.TherequesttooccupythepositionmustbefiledwiththePersonnelOfficewithinthetermspecifiedinthenotice.Section2:Everyapplicantthatqualifieswillbesubmittedtotheteststhatareindicatedinthenotice,andthecorrespondingRegistryofEligibleswillbeestablished,creatingwithpriority,theRegistryofPromotionsandTransfersovertheregistriesdescribedinArticleIII,Section3.Section3:WheneverthereisaRegistryofPromotionsineffect,whentherearisesapositiontobecovereditwillbeofferedinthefirstinstancetothecandidatesinsaidregistrybeforepostingthesame.ThesameprocedurewillbeusedwhenthereisaninternalRegistryofTransferincasenocandidateforpromotionacceptstheposition.ThisprocedurewillnotaltertheorderofpriorityestablishedinArticleVIII,Section2.12Section4:VacantpositionsmaynotbereducedinclassificationuntiltheyhavebeenpostedandalloftheworkersoftheRegistryofPromotionsthatqualifyforsaidpositionshavebeenconsidered.Ifavacantpositionisreducedinclassification,thepositioninitsnewclassificationwillbereducedinclassification,thepositioninitsnewclassificationwillbepostedandcoveredpursuanttothisArticle.Section5:IfthereisanydiscrepancywithregardtotheadjudicationofapositionbetweentheUnionandtheAuthority,orwhenanemployeeallegesthattheadjudicationwaserroneous,theUnionoremployeeoremployeesinvolvedwillmakethecorrespondingclaimwithinthirty(30)daysfollowingthemomentoftheadjudication.TheclaimwillbemadetothePersonnelOffice,whomustresolvetheallegationinwritingwithinatermthatwillnotexceedten(10)businessdays,attheendofwhichtheemployeeortheUnionmayappealtotheOfficeoftheDirectorofLaborRelationspursuanttotheprovisionsintheArticleonSettlementofControversies.13ARTICLEXINTERIMWORKSection1:WhentheAuthorityrequiresinwritingthataregularemployeeoccupytemporarilyabetterremuneratedpositionforwhichhe/shequalifiespursuanttothestandardsofrecruitmentoftheAuthority,he/shewillbepaidsincethecommencementoftheinterimworkasfollows:thedifferenceinbasiccompensationbetweenscalesortwostepsinthescaleassignedtotheposition,whicheverishigher.Section2:TheprovisionsofthisArticlemaynotbeusedtosubstitutepersonneloutsideoftheBargainingUnitnortoassignpersonneltoperformworkinclassificationsforwhichthecompensationscaleislowerthanthepositionthatisoccupied.a)Inthoseextraordinarycases,justifiedbytheneedsoftheservice,wherethesupervisorsassignaregularemployeetotemporarilyoccupyahigherremuneratedposition,independentofthequalificationoftheemployeetooccupythesame,theemployeewillbepaidthesalaryofthepositionsincehe/shecommencedtheinterimwork,whichpaymentwillbemadewithinthirty(30)calendardaysfollowingthecommencementofsaidassignment.Section3:IftheAuthorityrequiresanemployeetooccupyapositiononaninterimbasiswhoseremunerationislowerthantheoneofthepositionthathe/sheoccupieshe/shewillcontinuetobepaidthesalaryoftheirposition,withoutreduction,itbeingprovidedthatwhensaidassignmentisforaperiodinexcessoften(10)dayssaidactionmustbejustifiedwiththeUnion;inthiscasetheinterimdesignationmustbetoapositionwhosedutiesandfunctionsaresimilartothoseperformedbytheemployeeinhis/herregularposition.Section4:Theemployeemayrefusetheinterimdesignationforjustifiedhealthreasons.AllinterimdesignationsmustbenotifiedtotheUnionwithasimultaneouscopyofthedesignation.Section5:Theverifiabletimethatanemployeetemporarilyoccupiesinahigherremuneratedpositionforwhichhe/shequalifiespursuanttothestandardsofrecruitmentoftheAuthority,willbecreditedtotheirprobationaryperiod,ifsubsequentlyselectedtothepositionofthehigherremuneration.ARTICLEXIPROMOTIONSSection1:Thechangeofanemployeefromonepositioninoneclasstoanotherpositioninanotherclassforwhichahigherminimumcompensationhasbeenprovidedwillbeunderstoodasapromotion.Section2:Incasesofpromotiontheemployeewillbeentitledtoanincreaseinhis/hersalaryequivalenttothedifferenceinbasiccompensationbetweenscalesortwostepsinthescaleassignedtotheposition,whicheverishigher.Section3:Inpromotions,senioritywillprevail.AnyemployeewhoisinterestedinapromotionmustbesuretofilethecorrespondingrequesttobeincludedintheRegistryofPromotions.ARTICLEXIIRECLASSIFICATIONSSection1:Whenthedutiesandresponsibilitiesofapositionchangesubstantiallyandpermanently,theincumbentofthepositionortheAuthoritymayrequestitsreclassification.TherequestforreclassificationmustbemadeinwritingtothePersonnelOffice,whomustresolvewithinatermthatwillnotexceedsixty(60)calendardays,asofthedateinwhichthePersonnelOfficereceivessaidrequest.Section2:OncethePersonnelOfficemakesthecorrespondingdetermination,itwillnotifytheemployeeaffectedandtheUnion,togetherwiththestudymadesustainingthesame.IftheaffectedemployeeisnotinagreementwiththedecisionmadebythePersonnelOffice,oriftherehaveelapsedmorethansixty(60)dayswithoutthePersonnelOfficehavingmadeadecision,he/shemay,withinthefollowingten(10)daysappealbeforeaClassificationsCommitteecomprisedbyatechnicalrepresentativedesignatedbytheAuthorityandatechnicalrepresentativedesignatedbytheUnion.Section3:Ifthereisagreementbybothrepresentatives,theirdeterminationinthatregardwillbefinalandbinding.Section4:IftheClassificationsCommitteedoesnotreachanagreementwithinatermofsixty(60)days,theemployeeandtheUnionmayappealwithinfifteen(15)businessdaysfollowingtheconclusionofthistermdirectlytotheConciliationandArbitrationBureaupursuanttothesecondstageofArticleXLIIISettlementofControversies.Section5:Allreclassificationswillbeineffectasofthedatewhentheemployeefiledtheclaimandhe/shewillbegrantedtheincreaseasfollows:a)Thedifferenceinbasiccompensationbetweenthescaleortwostepsinthescaleassignedtotheposition,whicheverishigher.b)Ifthepositionisreclassifiedtoalowerlevel,thesalaryoftheemployeewillnotbereduced.Section6:Ifasaresultofchangesintherequirements,dutiesorfunctionsofaposition,thepersonneloftheBargainingUnitthatoccupiesthepositionaffecteddoesnotcomplywiththenewrequirements,dutiesorfunctions15established,thepersonnelaffectedmayberelocatedtoanotherpositionforwhichtheyqualifyandwhichisavailableatthetimeofestablishingthenewrequirement,dutiesorfunctionsinaccordancewiththeprovisionsofthisAgreement.ARTICLEXIIIREASSIGNMENTOFPOSITIONSection1:Theemployeemayrequestareassignmentofthepositionthathe/sheoccupieswhenhe/sheconsidersthatthecircumstancesthatwarrantsaidreassignmentarepresent,asthesearedefinedinthefollowingsection.Section2:Thesalaryscaleofapositionmayberevisedifitisdemonstratedthatsubstantialandpermanentchangeshaveoccurredinthefactorsthataffectthecomplexityandresponsibilityofthesame.Section3:ThePersonnelOfficewillconductthecorrespondingstudyandwillnotifytheincumbentandhis/hersupervisoroftheresultsofthestudy,withinsixty(60)daysofhavingreceivedthepetitionandthenecessarydocumentsthatsupportthesame.Section4:Ifthereassignmentofthepositionisapplicable,theadjustmentofthesameinthesalaryscalewillbemadepursuanttotheprovisionsofArticleXII(Reclassification)ofthisAgreement.Section5:IftheemployeeisnotinagreementwiththedecisionofthePersonnelOfficeorifthesixty(60)dayshaveelapsedwithoutadecisionbeingmade,he/shemaywithinthefollowingten(10)days,appealtotheClassificationsCommittee.TheClassificationsCommitteewillhavesixty(60)daystomakeitsdecisionandifitfailstodosowithinthisterm,theemployeeandtheUnionmayappealwithinthefollowingfifteen(15)businessdaysdirectlytotheConciliationandArbitrationBureau.ARTICLEXIVTRANSFERSSection1:Thepermanentmovementofanemployeefromonepositiontoanother,withintheAuthority,inthesameclass;fromonepositioninoneclasstoanotherinanotherclassofasimilarlevelforwhichtheminimumtypeofcompensationisthesamewhentheemployeemeetstherequirementsfortheposition,willbeconsideredasatransfer.Section2:TransfersmaybemadebyaformalvoluntarypetitionoftheemployeeorwhenitisdeterminedthattheservicesoftheemployeecanbemorenecessarytotheAuthorityinanotherunitduetothepriorknowledge,experienceandtrainingoftheemployee;inthislastcasethetransferwillbeconsideredasaninvoluntaryone,andmayneverbeusedasadisciplinarymeasureorindiscriminatorymanner.16Section3:ThePersonnelOfficewillpreparearegistryofvoluntarytransferswiththerequestsfiledbythoseinterestedinthisregard,fromwhichpersonnelwillbeappointedpursuanttotheprovisionsoftheAgreement.Section4:WhentheAuthoritypermanentlyneedstotransferaregularworkerinitsexclusiveinterest,exceptbetweenSanJuan,CarolinaandCataño,theAuthorityandtheUnionwilldiscusstogetherwiththeemployeethereasonsthatobligatetheAuthoritytomakesaidtransfer,aswellasthoseotherfactorsthatmayaffecttheworkerintheperformanceofhis/herwork.Section5:InthosecaseswheretheAuthorityneedstomakeatransfer,theUnionandtheemployeewillbenotifiedwithtwelve(12)calendardaysinadvance,unlessthereareextraordinarycircumstancesinvolved.Section6:IncaseswherethetransferismadeintheexclusiveinterestoftheAuthority,theworkerwillbecompensatedpursuanttotheprovisionsoftheArticleonPerDiem.Section7:ForpurposesofthisAgreement,“involuntarytransfer”,willbeanytransferthatismadewithoutarequestfromtheemployeeorfromtheUnion.ARTICLEXVPERSONNELREDUCTIONANDRELOCATIONSection1:IfthereoccursanyvacancyinanyofthepositionsoftheBargainingUnit,duetoresignation,retirementorappointmentoutsideoftheBargainingUnit,theAuthoritywillcoverthepositionwithinthefollowingsixty(60)daysofsaidvacancy,pursuanttotheprovisionsofthisAgreement.Saidvacantpositionmaybeleftuncovered,priornotificationtotheBrotherhood,indicatingthereasonfortakingsaidaction.IftheAuthoritydecidesnottocoveravacantposition,itwillnotbeoccupied,norwillthefunctionsbeperformedbytemporary,substituteorinterimpersonnel.Section2:WhentheAuthoritydeterminestheneedtomakeareductionofpersonnelinspecificclassificationsofemploymentoroperationalunitssaidreductionwillbecarriedoutobservingthefollowingorder:a)TemporaryEmployeesb)SubstituteEmployeesc)ProbationaryEmployees,exceptpromotedprobationaryemployeesd)RegularEmployeesOncethedeterminationoftheneedtoreducepersonnelismade,theAuthoritywillnotifytheBrotherhoodsixty(60)daysinadvanceoftheimplementationofthe17decisionandthepersonnelprotectedbythisArticlewillberelocated.Section3:Whenpersonnelarerelocatedduetoanecessaryadministrativereductionorrelocation,saidrelocationwillbeconsideredasaninvoluntarytransfer.Ifrelocatedtoahigherpositiontheprovisionsforpromotionswillapply.Section4:Everyemployeeaffectedbyareductioninpersonnelwillbeincludedinaregistryofrelocationofpersonnel,andwillhaveprioritytobeappointedtovacantpositionsforwhichtheyqualifyoveranyotherregistryofeligiblesthatmaybeavailable.Section5:Thoseregularworkerswhoarepermanentlypartiallydisabledonandforthisreasonareunabletoperformthedutiesofthepositionthattheyoccupy,willbeassignedwithprioritytooccupythosevacantornewlycreatedpositionswhichhavetobecoveredofasimilaroraninferioroccupationalgrouptothepositionthattheyoccupy,whichtheycanperformdespitetheirpartialorpermanentdisability.Section6:Thoseregularemployeewhoprematurelyleaveduetoaphysicalormentaldisability,ifinterestedinreturningtowork,willbeincludedintheregistryofreentryafterademonstrationwithmedicalevidencethatthecauseofthedisabilitywhichgaverisetotheirleavingnolongerexists.Section7:Ifaregularworkeraffectedbyasuspensionorreorganizationofactivitiesisassignedtoapositionofaloweroccupationalgroup,andtheresubsequentlyarisesanopportunityinapositionthatisthesameastheonehe/sheoccupied,aprioritywillbegiventosaidemployeetooccupysaidposition,whichwillbegivenwiththesamesalarythathe/shehadinthepositionthatwasoccupiedbeforetherelocation.Whileoccupyingthelowerpositionanadjustmentinsalarywillbemadeequivalenttothedifferenceinbasiccompensationbetweenthepositionthathe/sheoccupiedandthepositiontowhichhe/shewasassigneduptoamaximumoftwo(2)steps.ARTICLEXVIMERGER,TRANSFER,SALEORLEASEOFFACILITIESSection1.IftheAuthoritysells,transfers,privatizesorleasespropertywhereemployeescoveredbythisAgreementwork,ormergesanyofitsdependencieswithanotherpublicagency,ortransferspersonneltoanothergovernmentalagency,theAuthoritymustnotifytheUnionwithnotlessthanonehundredtwenty(120)daysinadvanceofthepossiblesale,transfer,privatization,mergerortransfer.TheAuthority18willalsoinformthenewentityoftheexistenceofthisAgreement.Section2:Ifduetothepossiblemerger,sale,transfer,privatization,leaseortransferofpersonnelthereareemployeesdisplacedfromtheBargainingUnit,theregularemployeesaffectedwillbeconsignedforrelocationinotheractivitiesoftheindustry.Section3:IfduringtheeffectivetermofthisAgreementtheAuthorityacquiresanyfacilityorservicethatispresentlynotbeingadministeredbytheAuthorityanditisintegratedtoitsprogram,thenewpositionsthatarecreated,aswellasanyvacantpositioninthenewfacilityorservicethatcorrespondstotheBargainingUnitwillbecoveredinaccordancewiththeprovisionsofthisAgreement.ThesenioritytimeforpurposesofthisAgreementofallpersonnelthatpassestotheAuthoritythroughthisprocedurewillcommencetocountasoftheeffectivedateoftheirappointmentasaregularemployeeoftheAuthority.ThenewpositionsthatarecreatedwithintheBargainingUnitandthatarenotfilledwiththepersonneltransferredwillbecoveredpursuanttotheprovisionsofthisAgreement.ARTICLEXVIITRAININGSection1:IftheAuthorityacquiresspecializedequipmentthatrequirestrainingandthataffectspersonneloftheBargainingUnititwillselectthetraineesfromamongthemembersoftheBargainingUnitthatfulfilltherequirementsforthepositionaswellasforsaidtraining.TheAuthoritywillselectthepersonneltoparticipateinsaidtrainingpursuanttotheprovisionsofthisAgreement,providedthereisnopersonnelqualifiedavailableintheBargainingUnitthathasrequestedthesame.Section2:TheAuthoritywillextendappointmentsconditionaltotheapprovalofthetrainingtothecandidatesselected.Duringthetrainingphasethedailyworkscheduleandtheweeklyworkprogrammayvaryaccordingtotherequirementsandconditionsofthetrainingtobeprovided.Section3:Assoonasthetrainingconcludes,thetraineesthatapprovethesamewillbeassignedtoaworkprogram,accordingtothenumberofpositionstobecovered,inharmonywiththeCollectiveBargainingAgreementineffect.Withregardtotheregularworkerswhohaveapprovedsaidtraining,theselectiontooccupysaidpositionswillbemadegivingpreferencetoseniority.Section4:TheAuthoritywillprovidetrainingtotheworkersoftheBargainingUnit,whenthesameisintimatelyrelatedtothenatureofthepositionsoftheBargainingUnit19andtheAuthorityunderstandsthatthetechniquesandskillsoftheemployeeswillbeimprovedandtheytrainthemtoperformthefunctionsoftheirpositionwithgreaterefficiency.a)ThePresidentoftheUnionwillsubmitsuggestionsregardingtheareasofneedfortrainingthathe/sheunderstandsshouldbeconsidered;theAuthoritywillgiveconsiderationtosaidrecommendations.ARTICLEXVIIISUBCONTRACTINGSection1:TheAuthoritywillnotsubcontracttheworkortasksperformedbytheemployeescoveredbythisAgreementifthisentailstheeliminationorreductionofpersonneloftheBargainingUnit,exceptwhenitinvolvesoccasionalworkortasksthatrequiresspecializedequipment,ortheacquisitionoffacilities,whichinoneoranothercasedoesnotjustifytheacquisitionbytheAuthority,orwhenitinvolvesoccasionalworkortasksthatrequiretheinterventionofskilledpersonnelthatisnotavailableattheBargainingUnitorintheregistriesofeligiblepersonnel.Section2:TheAuthoritywillnotsubcontractworkortasksthatcorrespondtotheBargainingUnitinanyfutureactivitywhichitisengaged,includingtheexpansionofitscurrentactivities.Section3:Theterms“subcontracting”or“subcontract”usedhereininclude,withoutlimitation,anyformalcontract,serviceorder,verbalagreementoranyothermodality,formalorinformal,ofsubcontracting.20ARTICLEXIXSENIORITYSection1:ThetimethatanemployeehasrenderedservicesattheAuthoritysincehislastdateofemploymentistheseniorityofsaidemployee.Section2:TheAuthorityandtheBrotherhoodrecognizetheprincipleofseniorityfortransactionsrelatedtoemployment,promotion,transfer,reassignment,reductionandrelocationofthemembersoftheBargainingUnit,subjecttowhatisprovidedinotherpertinentarticlesoftheCollectiveBargainingAgreement.Section3:Thesenioritywillnotbeaffectedorinterruptedinanymannerwhatsoeverwhentheemployeeis:a)OnaunionleavebecausetheyareanofficeroftheBrotherhood.b)Onlay-offduetoasuspensionofactivitiesintheindustry,exceptwhentheyfailtoreportwithinten(10)daysofhavingbeennotifiedtoreturntoactiveservice.c)Areonaleavewithorwithoutpayduetooccupationalornon-occupationalillnessorduetoaworkaccident.Section4:TheAuthoritywillprepareannuallyandmaintainaregistryofsenioritywhichwillincludethedateofemploymentandtheclassificationoftheemployee.AcopyofsaidregistrywillbesenttotheBrotherhoodwithinninety(90)daysfollowingthesigningofthisAgreementanditwillmaintaintheBrotherhoodinformedofanychangesthataffectthisregistry.Section5:Thesenioritywillonlybelostforthefollowingreasons:a)Dismissalfromemploymentb)Provenabandonmentofservicec)ResignationARTICLEXXCOMPENSATIONANDCLASSIFICATIONSection1:TheAuthoritywillcompensatethepositionsoftheBargainingUnitaccordingtothescaleofcompensationthatisincludedhereinafterandwillalsoadoptasarecruitmentsalaryforclassificationscoveredbylevel,inaccordancewithExhibitAthatisattachedtothisAgreement.SCALEMINIMUMPERMONTH123193595597599529801,0001,0201,04031,0351,0551,0751,09541,0651,0901,1151,14051,1051,1301,1551,18061,1501,1751,2001,2252171,2001,2301,2601,29081,2551,2851,3151,34591,3151,3451,3751,405101,4001,4351,4701,505111,5051,5401,5751,610121,6351,6701,7051,740Section2:Anynewpositionthatiscreatedwillbeassignedthebasicmonthlysalaryofthescaleinwhichthepositionislocatedsothatitwillconformtothesameinsofarastheminimum,maximumandintermediatelevelsareconcerned.NoworkercoveredbythisAgreementwillearnacompensationlowerthanthemonthlyminimumsalarythatcorrespondstothesamepursuanttothescale.Section3:IfpursuanttoanycontractualcompensationestablishedbythisAgreementanemployeewillearnasalarybetweentwo(2)intermediatestepstheemployeewillbeassignedthesalarycorrespondingtothehigherintermediatelevel.Section4:CLASSIFICATIONPLANOFPOSITIONSThepartiesagreethattheClassificationPlanofPositionsadoptedbytheAuthorityasanadditionalcriteriainitsAdministrationofPersonnelcoversthosepositionsthatfallwithintheBargainingUnit,theHermandaddeEmpleadosdeOficina,ComercioyRamasAnexasdePuertoRico(H.E.O.)asincludedandexcludedbyArticlesIIandIVofthisAgreement.SaidClassificationPlanofPositionsconsistsof:A)ClassSpecificationsManualTheClassSpecificationsManualconstitutespartofthisClassificationPlanandcontainsthedescriptionoftheclassesofpositionincludedintheAppropriateUnitasindicatedinthepreviousparagraph.B)ClassSpecifications:EachClassSpecificationconsistsoffive(5)sectionsthatjointlyrepresentadescriptionofthegeneralworkthatisexecutedineachone.Inthedevelopmentofthesametherearetakenintoconsideration:1)thedutiesandresponsibilitiesofeachofthepositionsassignedbytheAuthoritytoeachoneoftheclassesdescribedbytheClassSpecification;(2)thedegreeofdifficulty,responsibilityandcomplexityinvolvedintheperformanceofthetasksofthepositions;and(3)thedegreeofindependenceintheexecutionandtheuseoftheperson’scriteriaandjudgmentwhicharerequiredbythedutiesoftheposition.Undernoconceptwillaclassbeinterpretedtocontainallofthefunctionsordutiescorrespondingtoallofthepositionsassignedtothesame.Norwillitbeinterpretedthatthedutiesandresponsibilitiesofthepositionshavetoadhere,asifthe22sameinvolvedastraightjacket,tothosethataredescriedinthecorrespondingClassSpecification.Theclasswillnotlimitthefacultyofthecorrespondingauthoritytoassignotherfunctionstotheemployeeswhenrequiredbythecircumstances,usingasastandardtheprovisionsoftheCollectiveBargainingAgreementandothernormativeinstrumentineffect.TheClassSpecificationisdescriptive,notrestrictive.TheprocessforthedevelopmentoftheClassSpecificationexcludesfromconsiderationthequalifications,abilities,preparationorexperienceoftheoccupantsofthepositions.TheClassificationPlanofPositionsconstitutesamechanismtoclassifypositionsandnotpersons.Hereinafterwedescribethefive(5)sectionsthatcompriseaClassSpecification:B-1TitleoftheClass:Thetitleoftheclassprovidesabriefdescriptivenamebywhichallofthepositionsassignedtotheclasswillbeknown.ThisistheofficialtitleoftheClassificationPlanofPositions.Theassignmentofaclassificationtitlesdoesnotimpedetheutilizationoffunctionaltitlesforoperationalpurposes.B-2FunctionsandResponsibilitiesoftheJob:ThissectiondescribesthecharacteristicsoftheclassthatdistinguishesitfromalltheothersinthePlan.Generally,itiscomprisedofthefollowingelements:(1)theoccupationalfieldand/orrelativelevel,(2)whatthejobconsistsof,(4)thedifficultyorcomplexityofthework,(45)thedegreeofdirectionandsupervisionthatisreceivedand(5)thedegreeofdiscretionandjudgmentintheexecutionthatisrequiredbytheposition.a.IllustrativeExamplesoftheWork:Thispartsupplementstheprecedingsectionbylistingthefunctions,tasksandresponsibilitiesthataretypicalofthepositionsassignedtotheclass.Theexamplesaremerelyillustrativeanddonotincludealloftheworkthatisexecutedinthepositionsassignedtotheclass.B-3Knowledge,AbilitiesandSkillsDesired:Thissectionstatessomeoftheknowledge,abilitiesandskillsthatitisestimatedtheaspirantstooccupythepositionsassignedtotheclassmusthave.B-4preparationandExperienceDesired:Thissectionindicatestherequirementsdesiredintermsoftheacademicpreparationanddurationandtypeofexperiencethatitisconsideredshouldberequiredofthe23candidatestoemploymentinthepositionsassignedtotheclass.B-5AdditionalRequirements:ItindicatesthelicensesorcertificatesrequiredinprofessionsandtradeswhoseexerciseareregulatedbytheState.C.DefinitionofTerminology:TheterminologyusedintheClassificationPlanofPositionsifthefollowing:C-1Position:Setofdutiesandresponsibilitiesassignedordelegatedbyacompetentauthority,thatrequirestheemploymentofapersonduringapart-timeorfull-timeworkschedule.C-2ClassofPosition:Groupofpositionsthataresufficientlysimilarwithregardtotheirdutiesandresponsibilitiessothattheycanbedesignatedwiththesamedescriptivetitle;requiresubstantiallythesamerequirementsfromthoseaspiringtooccupythepositionsassignedtotheclass,administersthesametestorexaminationfortherecruitmentofcandidatesandappliesthesamescaleofsalariesunderthesameorsubstantiallythesameworkingconditions.C-3SeriesofClasses:Verticalgroupingofclasseswithsimilarcharacteristics,belongingtothesamefieldofwork,differentiatedfromeachotherbythedegreeofcomplexityandresponsibility.Thedifferenceinlevelsinaseriesofclassesisestablishedthroughtheuseofromannumbersinascendingscale,withthehighestnumberindicatingtheclassofthehighestlevel.C-4StipulationofClass:Writtenstatementoftheclassthatdescribesthefactorsandconditionsthatseparateitfromallotherclassesandwhichinturnconstitutesessentialcharacteristicsoftheclass.C-5ClassificationPlanofPositions:TheclassesofpositionsincludedintheBargainingUnit(H.E.O.),ArticlesIIIandIV,thespecificationofclasses,togetherwiththerulesfortheadministrationofthePlan,constitutewhatisknownastheClassificationPlanofPositions.C-6AssignmentofPositions:Thisistheofficialdocumentofassigningaparticularpositiontoaspecificclass.C-7ReclassificationofPositions:24Thisistheactofrevisingapositionwhosedutieshavechangedsubstantiallyandpermanentlytoclassifyitinadifferentclassthantheonethatwasoriginallyassignedtoit,andpursuanttoArticleXII,Section1ofthisCollectiveBargainingAgreement.Section5:RULESFORTHEADMINISTRATIONOFTHECLASSIFICATIONPLANOFPOSITIONSA)TheClassificationPlanofPositionsoftheAuthorityreflectstherealityofthefunctionsandtasksthatareexecutedinthepositionsatthesigningofthisCollectiveBargainingAgreement.ThisrealitycanvaryinthemeasurethattheneedsoftheAuthorityrequirechangesormodificationsintheiroperations.Thesechangescanaffectthedutiesandresponsibilitiesofthepositions.Theycanalsorequirethecreationofnewpositionsorthediscontinuationofsomethatalreadyexist.MaintainingtheClassificationPlanofPositionsupdatesothatitwillrepresentatalltimestheactivitiesandtasksthatarereallyperformedintheclassifiedposition,requiresthatthechangesthataffectthepositionsberegisteredandreflectedimmediatelyintheassignmentofthepositionstotheclassesandinthespecificationsoftheclass.ThePersonnelOfficeoftheAuthority,istheonlyoneresponsibleformaintainingtheClassificationPlanofPositionsupdatedmakingperiodicrevisionstothePlantoensurethatitfaithfullyreflectsthedifferentworkthatisexecutedattheAuthorityandthatitcontainsallofthenecessaryclassestocorrectlyclassifyallofthepositionssubjecttoclassificationintheBargainingUnit.B)DOCUMENTSRELATEDTOTHECLASSIFICATIONOFPOSITIONSThePersonnelOfficeoftheAuthoritywillbetheowner,willconserve,bethecustodianoftheQuestionnairesoftheClassificationofPositionsthatwerecompletedbytheemployees.TheformswillbefiledintheorderinwhichthepositionsappearintheBudgetoftheAuthority.TheAuthorityattherequestoftheUnionwillprovideacopyofthedocumentsthatwerefilledoutbytheemployees.Section6:REVIEWOFVACANTPOSITIONSWhencoveringvacantpositionsthePersonnelOfficewillreviewthedutiesandresponsibilitiesofthesameinordertoverifyiftheyhavevariedinsuchamannerthatjustifiesareclassification.Oncetherevisionismade,ifsaidreclassificationiswarranted,theprovisionsofArticleXII,Section1ofthisCollectiveBargainingAgreementwillbefollowed.25Section8:CREATION,MODIFICATIONORELIMINATIONOFCLASSESThePersonnelOfficewilldraftnewclassspecificationswhennecessary.WhenmakingtheperiodicreviewofthePlan,itwillmodifytheclassesthatdonotexactlydescribetheworkthatisperformedinthepositionsassignedtothesame.Oncetheclassesaremodifiedtheywillbeassignedtotheoccupationalgroupinthecorrespondingsalaryscalepursuanttotheduties,requirementsandcomplexityofthesame.Itwillalsoeliminatetheclasseswhichbecauseofreorganizationorduetoanyothernaturedonothavepositionsassignedtothesame.TheAuthority,attherequestoftheUnion,willprovideacopyofthedocumentscoveredbythisSection.ARTICLEXXISALARIESSection1:ThecontractingpartieshaveagreedonthefollowingsalaryincreasesfortheemployeescoveredbythisAgreement.AGREEMENTYEARMONTHLYINCREASEDecember1,2012toNovember30,2013$105.00December1,2013toNovember30,2014$110.00December1,2014toNovember30,2015$115.00December1,2015toNovember30,2016$120.00NOTE:TheeconomicphaseoftheCollectiveBargainingAgreementwillenterintoeffectonDecember1,2012andissubjecttotheapprovaloftheGovernmentDevelopmentBank(GDB)pursuanttotheFiscalOversightAgreement(FOA),signedwiththeGDB.TheincreaseinsalariesissubjecttotheapprovaloftheGDB.BonusatthesigningoftheAgreementof$1,500.00payableintwo(2)installments.AtthesigningoftheAgreement$750.00OnMarch30,2013$750.00Section2:TheemployeeswhowillreceivetheincreaseeffectiveonDecember1ofeachyearduringthefour(4)yearsoftheeffectivetermofthisAgreementwillbethoseregular,probationary,substitute,temporaryandprojectemployees.Section3:Theemployeesonleavewithoutpayduetoillnesswillreceive,effectiveasofthedatetheyreturntowork,asalaryincreaseequivalenttotheamountthatwouldhavecorrespondedtothemhadtheybeenworkingonDecember126ofeachyearoftheeffectivenessinwhichtheyreinstatetowork.Section4:Thecompensationoftheemployeeswillbemadeonanannualbasispayableinfifteendayinstallmentsonthe15thandlastdayofeachmonth.Whenthepaymentdayisaholiday,Saturday,SundayorMonday,thepaymentwillbemadeontheprecedinglaborday.ARTICLEXXIIWORKSCHEDULESANDSHIFTSSection1.WORKSCHEDULETheregulardailyworkschedulewillbe7-1/2hours.Theregularworkweekwillbe37-1/2hoursduringfive(5)consecutivedaysofwork.TheAuthorityandtheBrotherhoodmaymutuallyagreetomakeexceptionstotheabove,providedtheexcessof37-1/2hoursarepaidatdoubletheregularrateofpay.Section2.WORKHOURS2(a):Theregularworkschedulefortheemployeeswithafixedshiftwillbe7:30to11:30inthemorningandfrom12:30to4:00intheafternoon,fromMondaytoFriday.ForthosePierCustodiansthatoccupytheirpositionsatthesigningofthisAgreementtheworkschedulewillbefrom7:00to11:00inthemorningandfrom12:00to3:30intheafternoonfromMondaytoFriday.TheAuthorityandtheBrotherhoodmay,throughagreement,varythepreviousschedule,providedtheneedsoftheservicerequirethis.2(b):TheAuthorityandtheBrotherhoodagreethattheworkscheduleestablishedinthisAgreementwillbeadjustedtocovertheneedsoftheserviceintheoperationsoftheFajardoandCatañoFerryService;itbeingprovidedthattheadjustmentinthisschedulewillnotinanymannerwhatsoeveraffect,impairorreduceanybenefitwhatsoeverprovidedinthisAgreement,includingthatnoworkerwillworkformorethansevenandahalf(7-1/2)hoursperregularworkschedule.2(c):Allhoursworkedbyanemployeeinaregularworkscheduleafterhavingworkedfifteen(15)consecutivehours,willbepaidforeachadditionalhouroverthefifteen(15)hoursworkedattherateoftriplethecorrespondinghourlyrateofpay.2(d):TheAuthoritywilldecideifeveryPierCustodianthatisrecruitedasofthesigningofthisAgreementisassignedpermanentlytoafixedshiftortoanirregularshift.EveryPierCustodianthatissoatthesigningofthisagreementorthatisrecruitedafterthesigningofthesame,willbesubjecttoarotationeverysix(6)monthsinthedocksunderthecontroloftheAuthority.27Section3:IRREGULARWORKSHIFTSEveryemployeethatisrequiredtoworkinashiftdifferenttotheoneestablishedinSection2(a)abovewillbeconsideredtohaveanirregularworkshift,withaweeklyworkscheduleoffive(5)consecutivedays.Section4:COMPENSATIONFORIRREGULARWORKSHIFTSTheemployeesinirregularworkshiftsareentitledtoadifferentialpaymentforirregularshifts,pursuanttothefollowing:4(a):Everyemployeeinirregularshiftswillhaveadifferentialofeightycents($.80)foreveryhourworkedbetween4:00p.m.and7:30a.m.,duringeveryyearofeffectivenessofthisAgreement.4(b):EveryhourworkedinashiftonaSundayentailsadifferentialofeightyfivecents($.85)duringeveryyearofeffectivenessofthisAgreement.4(c):Everyhourworkedbyanemployeeinanirregularworkshiftafterhavingworkedfifteen(15)consecutivehoursofworkwillbepaidforeveryadditionalhourafterthefifteen(15)workedattherateoftriplethecorrespondingregularhourlyrateofpay.4(d):Everyemployeewhohasbeenassignedanirregularworkshiftandwhichasaresultofhis/herabsencewithoutpriornotificationatthebeginningoftheworkshifttohis/herSupervisor,causesthatanotherworkerhastoworkmorethaneight(8)consecutivehours,willhavesaidabsencedeductedfromhis/hersalary.Thisprovisionwillnotapplywhentheabsencecouldnotbenotifiedduetoforcemajeure.4(e):Whenanemployeeinanirregularworkshifthasfinishedhis/hershiftandtheAuthorityrequiresthatthesamereturntohis/herpositionafterhavinglefttheAuthority,he/shewillbecompensatedasofthemomentthathewasorderedandrespondsimmediatelytothecallappearingtohis/herworkarea.Section5:EXTRAHOURSExtrahourswillbeunderstoodtomeanthosehoursthattheemployeeworksinanyofthefollowingcircumstances:A)Theexcessofsevenandahalf(7-1/2)hoursadayB)Theexcessofthirtysevenandahalf(37-1/2)hoursaweekC)OnHolidaysD)OntheirdayoffE)DuringmealperiodsAsofthesigningofthisAgreementtheholidays,proclamations,andjustifieddaysofabsencethatarechargedtoannualvacationsortosickleavewillbecountedasifthe28employeehadworkedthesameforpurposesofthepaymentofovertime,inthedailyaswellastheweeklyworkschedule.Section6:RATEOFPAYFOREXTRAHOURSTheAuthoritywillpayDOUBLEtheregularrateofpayforeachextrahourworked.Section7:MEALPERIODEveryworkerisentitled,independentoftheworkschedule,toenjoyone(1)hourformealsbetweenthethirdandthefifthhourofthecorrespondingshift.Whenaworkerdoesnotenjoythisperiodbeforetheendofthefifthhourofwork,thesamewillbepaidthemealperiodasextraeventhoughgrantedanhoursubsequentlytohavehis/hermeals.ThepersonneloftheOperationsDivisionoftheInternationalAirportexclusivelyandtheAirRescueSpecialistsoftheRegionalAirportsoftheAuthoritywillenjoyahalfhour(1⁄2)hourmealperiodinsteadofthehourestablishedinthisSection.TheAirRescueSpecialistsoftheRegionalAirportsthatworkshiftscommencingat10:00p.m.andendingat6:00a.m.,willnotenjoytheirhalfanhour(1⁄2)formeals,whichwillbecompensatedasovertime.Section8:CONTINUOUSWORKSCHEDULE:Everyworkerwhopursuanttotheneedsoftheserviceisrequiredacontinuousworkscheduleofsevenandahalf(7-1/2)hourswillbepaidthemealperiodasovertime.Section9:RESTPERIOD:Theemployeewhosodesiresitmayenjoyabreakoffifteen(15)minutesinthemorningandfifteen(15)minutesintheafternoon.Saidbreakswillbeenjoyedbetween9:00and10:00inthemorningandbetween2:00and3:00intheafternoon,providedtheproperoperationoftheworkplaceisnotaffected.Intheirregularshifttherestperiodwillbeenjoyedbetweenthesecondandthirdhourandbetweenthefifthandsixthhourofwork,providedtheproperoperationoftheworkplaceisnotaffected.Section10:WAITINGTIMEWhenaworkercoveredbythisAgreementisassignedtocommencetoworkataspecifictimeandtheAuthoritypostponesthehourofcommencementoftheshiftwithoutpriornotificationofatleasttwelve(12)hoursinadvance,saidworkerwillbepaidforallthetimefromthehouroriginallyassignedtocommencetoworkuntiltheterminationofthenewshift.Section11:TERMINATIONDUETOPHYSICALIMPOSSIBILITYWhenduetoatemporaryphysicalimpedimentcertifiedbyaphysiciananemployeeisimpededfromworkingduringthenighttimeperiod,butcanworkduringthedaytimeshift,said29employeeswillbereassignedtoworkinthedaytimeshiftforthedurationoftheimpediment,providedthechangeisfeasibleandthereispersonnelavailabletoputthisintoeffect.ARTICLEXXIIITARDINESSANDABSENCESSection1:TARDINESSa)TheAuthoritywillgrantagraceperiodequivalenttofifteen(15)minutesaftertheofficialtimeofentrance.b)Tardinesswillbeconsideredwhenanemployeearrivestoworkfifteen(15)minutesaftertheofficialtimeofentrance.Thetimethatelapsesfromtheofficialentrancetimeuntilthetimeofarrivalwillbechargedtohisannualleave.Tardinesswillnotbeconsideredforthecalculationofabsenteeism.c)Thetardinessofthree(3)minutesorlessmaybeauthorizedbytheHeadofthecorrespondingOfficethroughanadministrativeactionwheninhis/herjudgmentthecircumstanceswarrantthesame.d)IfforreasonsofrenderingservicesfortheAuthorityanemployeearrivesafterthetimeestablishedintheworkschedule,theAuthoritywillnotdeductthetimethathaselapsedbetweenthetimeestablishedandthetimeofthearrival.Section2:ABSENCESa)Anabsencewillbeconsideredasanemployee’sfailuretoappeartoworkonaworkday.b)Notconsideredforthecalculationofabsenteeismare:1)AppearancesthroughofficialsummonsasawitnessofthePeopleofPuertoRicobeforetheCourtsofJustice.2)Summonstoappearbeforeadministrativegovernmentalorganismssuchas:DepartmentofLaborandHumanResources,LaborRelationsBoard,PublicServiceCommission,StateInsuranceFund,etc.3)TheappearancesindicatedabovewillhavetobeevidencedthroughanofficialwrittencommunicationfromtheCourtorthepertinententity.4)IncasesoftheStateInsuranceFund,whenanemployeereceivestreatmentinC.T.,saidappearanceswillnotaffecttheleavesaccrued,providedtheemployeesubmitsacopyofhis/herappointmentcarddulysignedoranofficialcertificationthathis/herappointmentisfor1:00p.m,inwhichcasehe/shewillbeexcusedduringthehoursoftheafternoon,buthavingtoappeartoworkinthemorninghours.Onthecontrary,ifhis/herappointmentisinthemorning,he/shewillhavetoappeartoworkduringtheafternoonhours.305)One(1)yearaftertheremittanceofareprimandfortardinessorabsenteeism,theAuthoritywilleliminatesaidreprimandfromtherecordoftheemployee,unlessthepatternofconductcontinues.Everyemployeewillbeentitledatanytimetoexaminehis/herrecordtoverifythattheAuthorityhascompliedwiththisrequirement.ARTICLEXXIVHOLIDAYSGRANTEDWITHPAYSection1:TheworkerscoveredbythisAgreementwillreceivefullpayforalloftheregularhoursofworkandwillenjoytimeoffwithpayforthefollowingholidays:NewYearsDayThreeKingsDayEugenioMarìadeHostosBirthdayGeorgeWashingtonBirthdayAbolitionDayHolyFridayJosèDeDiegoBirthdayMemorialDayIndependenceDayoftheU.S.LuisMuñozRiveraBirthdayConstitutionoftheCommonwealthofP.R.JosèCelsoBarbosaDayLaborDayDiscoveryofAmericaVeteransDayGeneralElectionsDayDiscoveryofPuertoRicoThanksgivingDayChristmasDayMartinLutherKingDayWheneverthedaysindicatedabovefallonaSunday,thefollowingdaywillbeconsideredasaholiday.Section2:HolidayswillalsobeconsideredandwillbeincludedaspartofthoseindicatedinSection1above,thosethatbyproclamationoftheGovernorofPuertoRicoorthePresidentoftheUnitedorbyLawaredeclaredhereinafterasholidays.Section3:TheemployeesinregularorirregularworkshiftswhoduetotheneedsoftheservicearerequiredtocontinuerenderingserviceswithintheregularworkscheduleoftheAuthority,asdefinedinArticleXXII,Section2(a),whenanAdministrativeOrderhasbeenissuedbytheGovernorofPuertoRico,ratifiedbytheExecutiveDirector,orbytheExecutiveDirector,willbecompensatedsaidperiodoftimeinthesamemannerasthetimeworkedonholidaysiscompensated.31Section4:Everyworkerinanirregularshiftforwhichaholidaycoincideswithanydayoff,unlesssaidholidayisaSaturday,willbegrantedthenextworkdayinsubstitutionoftheholiday.Ifsaidsubstitutedayisaworkday,itwillbepaidasaholiday.Section5:ForpurposesofthisCollectiveBargainingAgreement,everyholidayfortheemployeesofirregularshiftswillcommenceonthefirstshiftofthemorningandwillendattheconclusionofthethirdshift.ARTICLEXXVREGULARVACATIONLEAVESection1:TheemployeescoveredintheBargainingUnitwillbeentitledtoaccrueregularleaveattherateoftwoandahalf(2-1(2)daysforeverycalendarmonthworked.Section2:Theregularvacationswillbeaccruedasofthefirstdayofworkoftheemployee.Section3:ThevacationswillbeenjoyedbytheemployeeinaccordancewithaprogramwhichtothateffectwillbepreparedbytheAuthorityineachBureau,usingasabasistheneedsoftheservice,thenon-interruptionofthesameandthepreferencesoftheemployee.Section4:Everyemployeewillbeobligatedtoenjoytheregularvacationsforaperiodofnotlessthantwenty(20)businessdaysduringeachnaturalyearofservice,ifthereisanyleaveaccrued.Section5:TheAuthority,attherequestoftheemployee,willpaytheentiresalarycorrespondingtothevacationsrequested,priortotheenjoymentofthesame.Saidrequestmustbefiledatleastfifteen(15)businessdaysinadvanceofthedateofcommencementofthevacations.Theperiodofpaymentthatdoesnotconcurtotallywithinthevacationperiodwillnotbepaidinadvance.Section6:PeriodicallytheemployeeswillbeinformedofthebalanceofvacationsaccruedandtheywillbeentitledtoverifyatthePersonnelOfficeoftheAuthorityanydateorinformationthattheyareinterestedintothateffect.Section7:Anemployeeintheuseofaregularleavewillbeentitledtoaccrueregularandsickleaveforthetimeoutofservice,providedtheyreturntoworkonetheleaveconcludes.Section8:TheExecutiveDirectoroftheAuthoritymaygrantvacationsinexcessofthirty(30)businessdaysanduptoamaximumofsixty(60)daysinanyyeartotheemployeeswhohavesufficientleaveaccruedforthis.ThisconcessionconstitutesaprivilegeandnotarightandwillbegrantedonlyinmeritoriouscasesatthediscretionoftheAuthority.32Section9:Everyemployeewillbeentitledtoreceivetheequivalentincashofthevacationleavethattheyhaveaccruedasofthedateoftheirresignationorseparationfromtheserviceforothercauses.Section10:AnyabsencethatisrequestedbechargedagainsttheannualleavemusthavebeenrequestedinadvancetotheHeadtheBureau,DivisionandOffice,unlesssaidabsenceissubsequentlyauthorizedbythesame.Section11:Anabandonmentofservicewillbeconsideredasanemployeebeingabsentfromworkornotreturningtotheserviceattheconclusionofhis/hervacationswithoutinformingthecauseofhis/herabsencetotheHeadoftheBureau,OfficeorDivision,withinthecourseoffour(4)businessdaysfollowingthedateinwhichhe/sheshouldhavereturnedfromvacationorthedateinwhichhe/shewasabsentfromtheservice,unlessthereisforcemajeureinvolved.Section12:Theemployeeswhoareabouttoretireaftermorethanten(10)yearsofservicerenderedtotheAuthoritywillnothaveanylimitofaccrualduringthethree(3)lastyearsofserviceafterhavingofficiallyandfinallyandfirmlyannouncedtheirintentiontoretire.Iftheemployeedoesnotretirewithinthetree(3)yearspreviouslyannounced,thefirstofthetree(3)yearssoaccruedwillbeliquidatedonthebasisofthesalaryearnedduringsaidyear.ARTICLEXXVISICKLEAVESection1:TheemployeescoveredbythisAgreementwillbeentitledtoaccruetwenty(20)businessdaysayearforsickleaveandwillbeentitledtoenjoythesameeitherduetosicknessoftheemployeehim/herselforduetoacontagiousillnessinthefamilySection2:Thesickleavewillbeaccruedasofthemomenttheemployeecommencestowork.Theaccrualofsaidleavewillbemadeusingasabasisthecalendarmonthsattherateof12.5percalendarmonthworkeduptoatotaloftwenty(20)businessdays,onehundredfifty(15)hoursinacalendaryear.Section3:Thechargeforsickleavewillbemadebasedonthedailyworkscheduleassignedtotheemployee,itbeingunderstoodthatnochargewillbemadeforthedaysoffoftheemployeenorforholidays.Section4:Everyabsenceinexcessofthree(3)consecutiveworkdayswhichisrequestedbechargedtosickleave,willbechargedonlyafterthepresentationbytheemployeeofanauthenticcertificateissuedbyaphysicianlegallyauthorizedtopracticemedicineinPuertoRicoorinthelocationwhereitisissued.Thecertificateandtherequestforleavemustbepresentedbytheemployeetohis/her33immediateSupervisorwithinfifteen(15)workdaysfollowingthelastdayoftheabsence.Section5:TheAuthoritymayalsorequiremedicalcertificatesfromallemployeeswhohavebeenabsentduetoillnessiftherehaveoccurredfour(4)absenceswithinaperiodoffifteen(15)workdaysforwhichhe/sheallegestobeilleventhoughsaidabsencesarenotconsecutive.Inbothcases,ifsaidmedicalcertificateandthecorrespondingrequestisnotsubmitted,theabsenceswithinsaidperiodwillbechargedagainsttheannualleaveaccrued.Ifthereisnoannualleaveaccrued,theywillbeconsideredasabsenceswithoutpay.Section6:Afterthefirstabsenceforillnesswithinapayperiod,iftheemployeeisobligatedtocontinuebeingabsentfromwork,he/shemustcommunicatethiswithinthenextfortyeight(48)hourswithoutincludingSaturday,Sundayandholidays,totheHeadoftheBureau,OfficeorDivision.Ifhe/shefailstodoso,saidabsenceswillbedeductedfromtheannualleaveaccrued.Iftherearenovacationsaccrued,saidabsenceswillbewithoutpay.Section7:TheAuthoritywillpayonehundredpercent(100%)ofthesickleaveaccruedinexcessofsixhundredfifty(650)hours,asofJanuary31,2001andsoonsuccessivelyupuntilthedateofeffectivenessofthisAgreementandtheywillbepaidonorbeforeMarch131,2001andsoonsuccessively.b)TheAuthoritywillpayonehundredpercent(100%)ofthesickleaveaccruedinexcessoffourhundredfifty(450)hours(ifthisactioniselected,informingthistothePersonnelOffice,inwritingonNovember30,2000),onJanuary31,2001,andsoonsuccessivelyuntiltheeffectivedateofthisAgreementanditwillbepaidonorbeforeMarch31,2001,andsoonsuccessively.c)Ifanemployeedecidestoremainwiththeexcessofsixhundredfifty(650)hoursasofJanuary31,2001,anddecidestochangetofourhundredfifty(450)hoursasofJanuary31,2002,he/shemayinformthePersonnelOfficeinwritingasofNovember30,2001,tomakethechangepermanently.Section8:Anemployeewhoisonsickleavewillbeentitledtoaccrueregularandsickleaveforthetimeenjoyingsaidleave,providedhe/shereturnstoworkoncetheleavethathasbeenauthorizedhasconcluded.Section9:TheAuthoritywillrendertoeveryemployeeandtotheBrotherhood,asemi-annualreportontheannualvacationsandsickleaveaccrued.SaidreportwillbemadeforthesemesterendingonDecember1,nolaterthanFebruary20.34Section10.Incaseofprolongedillnessandwhentherequirementsofthesituationrequirethis,sickleavemaybeadvanceduptoamaximumofsixty(60)businessdays,whentheleavesaccruedhavebeenexhausted.Thetotalsickleavesoadvancedwillbechargedtothesubsequentsickleaveaccruals.Thisrequestmustbesubmittedbeforethepersonreturnstowork.Section11:Iftheemployeewhohasbeenadvancedasickleavedoesnotreturntowork,theaforementionedsickleavewillbecancelleduptoamaximumofsixty60)days,providedhe/shehasworkedfortheauthorityforatermofthree(3)ormoreyears.Section12:Everyemployeewhohasbeenadvancedasickleavewillbeobligatedtoworktheequipmenttotheperiodnecessarytoaccruethetimeadvanced.Duringsaidperiodtheemployeewillnothaveasickleavebalanceinhis/herfavor,sincewhatisaccruedwillbecreditedtothetimethatwasadvanceduntiltheliquidationofthesame.Section13:TheAuthoritywillpayanamountequaltotheregularrateofsalaryearnedbyanemployeeforsickleavenotusedtoeveryemployeecoveredbythisAgreementthatdoesnotseparatefromtheservicepermanentlyortemporarilyduetoretirement,ageordisability.Section14:IncaseofdeathofanemployeecoveredbythisAgreement,thesickleaveaccruedonthedayofhis/herdemisewillbepaidtohis/herheirsattheregularrateofpayearnedbythesame.ARTICLEXXVIIMATERNITYLEAVESection1:Theemployeeswhoarepregnantwillbegrantedaperiodoffour(4)weeksofrestbeforethebirthandanotherfour(4)weeksafterthesame.Theemployeewillearnonehundredpercent(100%)ofhersalaryduringtheseeight(8)weeks.Duringtheseeight(8)weekstheywillaccruesickleaveandannualleave.Section2:Therequestformaternityleavemustbepresentedwithone(1)monthinadvance.Section3:Ifthebirthoccursbeforetheemployeehasenjoyedthefour(4)weekspriortothedeliverybecauseitwasearlierthantheprobabledeliverydate,orbecausethephysicianincorrectlyestimatedthedateofprobablebirth,therestperiodafterthedeliverywillbeextendeduntilthecompletionofatotalrestperiodofeight(8)weeks.Section4:Whenasadirectresultofthedeliverytheemployeeisphysicallyunabletoreturntoworkattheendofthefour(4)weekperiodafterthedelivery,theAuthoritywillgrant,fromthesickleaveaccrued,thetimeoftheadditional35restrequiredbysaidemployee.Iftheemployeehasnosickleaveaccrued,shewillbegrantedanadvanceofthesickleavefortheentiretimerequiredofrest,pursuanttotheprovisionsofSection10oftheArticleonSickLeave.Section5:Theemployeewhoispregnantmaychosetotakeonlyoneweekofpre-natalrestandextenduptoseven(7)weeksthepost-natalresttowhichsheisentitled,providedshepresentsamedicalcertificateindicatingthatsheisinphysicalconditionstoworkuptoone(1)weekbeforethedelivery.Section6:Iftheemployeeisinconditiontoreturntoworkwithinthefour(4)post-partumweeks,shemayreturntoherworkbeforetheexpirationofsaidfour(4)weeks,providedshepresentsmedicalevidencecertifyingthatsheisfittowork.Section7:MiscarriagePeriod-Thismaternityleavewillcovercasesofmiscarriageasifthesamewereanormaldeliveryprovidedtheemployeepresentsamedicalcertificateestablishingthatthemiscarriageproducedinherthesamephysiologicaleffectsasifithadbeenanormaldelivery.Section8:MaternityLeaveduetoAdoption:Thebenefitofamaternityleaveforadoptionisgrantedwithpayforuptoeight(8)weekstotheemployeeswhorequestthis.Thebenefitisconditionedtothepetitioningemployeepresentingthenecessaryevidencefromoneoftheagenciesorentitiesofthegovernmentthatinterveneinthisprocedure,certifyingthedatewhenthechildwillbegiven,soastograntsaidleavefromthatpointforward.Therewillbegranted,chargedtotheaccruedsickleave,accordingtotheprocedures,thenecessarytimerequiredbytheemployeetoprocesstheadoption.ARTICLEXXVIIILEAVESDUETOWORKACCIDENTSection1:IncaseswherearegularworkerwhoissuchatthesigningofthisAgreement,pursuanttoarulingofthephysicianfromtheStateInsuranceFund,requirestobeabsentfromworkduetoanaccidentsufferedduringwork,asaresultofthesame,andwhoseinjuryissusceptibletobeingverifiedinplainsightorthroughradiological,ultrasonic,electrocardiographicequipmentorotherspecializedequipmentthatverifiesinjuriesandthesameisfinallyrelatedbytheAdministratoroftheStateInsuranceFund;theAuthoritywillpaytheworker,duringthetimeoftheabsence,asofthedayfollowingthedateoftheworkaccident,his/herfullsalaryfortheregularhoursofwork,chargedtohis/herannualorsickleaveuptoamaximumofthree(3)monthsduringeachof36theyearsoftheeffectivetermofthisAgreement,returningtheperdiempaidbytheStateInsuranceFund.Section2:OncetheAdministratoroftheStateInsuranceFundissueshis/herdecisionrelatedtothecase,theAuthoritywillreplacethebalanceused(asprovidedbySection1(supra)orthenumberofhoursthattheemployeemayhaveavailable,ifhe/shehasnoaccruals,uptothemaximumprovidedbythisArticle)forthisconcepttothecorrespondingleaveorleaves.Section3:TheAuthoritymayrequireamedicalevaluationbyaphysicianspecializedinIndustrialMedicine,paidandchosenbytheAuthority,beforegrantingthepaymentcoveredbySection1ofthisArticle.Section4:TheworkersthatarerecruitedafterthesigningofthisAgreementwillnotbeentitledtothisbenefit,norwilltheyenjoythebenefitofattendingtotreatmentinCTwithoutachargetotheleave.WhentheemployeerecruitedasofthesigningofthisAgreementhastoattendtotreatmentinCT,saidtimewillbechargedtohis/hersickleave.Theseworkerswillbeextendedthebenefitdescriedinthefollowingsection5.Section5:TheAuthoritywillpaytheworkerswhoaresuchasofthesigningofthisAgreementandwhoindividuallyandvoluntarilywaivethisbenefitinfull,onorbeforeDecember31,2000,theentirecostoftheirmedicalplanforthefirstfive(5)yearsofretirement,oncetheseworkersacceptthebenefitsofretirementforyearsofserviceintheGovernmentofPuertoRico.Thepartiesincludingtheworker,willsignanindividualagreementsothatthisvestedbenefitwillbeguaranteed.Themedicalplanmustbeequalinbenefittotheonethisworkerwasenjoyingatthetimeoftheretirement.Afterthesefive(5)yearstheworkermaycontinueinthegroupmedicalplanoftheAuthority,butwillpaythecostofhis/hermedicalplan.ARTICLEXXIXSPECIALLEAVESSection1:LEAVEWITHOUTPAYA)TheAuthority,afterdemonstrationofjustcause,willgranttheemployeewhorequestsit,aleavetobeabsentfromworkwithoutpayforaperiodthatwillnotexceedone(1)year;itbeingprovidedthatattheexpirationofthisperiodtheAuthoritymaygranttwo(2)additionalyearsofleavewithoutpay.B)Everyemployeewhoisauthorizedaleavewithoutpay,oncehe/shereturnstowork,willbeobligatedtopaytheBrotherhoodtheduesthatwerenotpaidduringtheperiodofsaidleaveinmonthlyinstallmentsuntiltheliquidationofthedebt.Thisdeductionwillbeinadditiontotheirregulardues.37Section2:BEREAVEMENTLEAVEIncasesofdeathofthemother,father,spouse,bloodbrothersorsisters,grandchildrenorchildrenofanyemployee,theywillbegrantedaleavewithpayofthree(3)consecutiveworkdaysasofthedateorthedayofthefuneral,itbeingprovidedthatforcasesofthedeathofthespouseorchildrenlivingunderthesameroofoftheemployee,four(4)consecutiveworkdaysmaybegrantedasofthedeathorthedayofthefuneral.Saidtimewillnotbechargedtotheleavesaccruedbytheemployee.Section3:MILITARYLEAVEA)EveryemployeewhoentersthemilitaryservicepursuanttotheMilitaryServiceAct(PublicAct756-86thCongress)willbegrantedleavewithoutpayforthetermthathe/sheisonmilitaryservice.B)WhenanemployeerenderstemporaryservicestotheNationalGuardofPuertoRico,pursuanttothepertinentprovisionsofLawNo.62ofJune23,1996(MilitaryCodeofPuertoRico)ortheArmedForcesReserveoftheUnitedStates,he/shewillentitledtoamilitaryleavewithpayofuptoamaximumofthirty(30)labordaysoftheparticularemployeewithinanaturalyear.Section4:LEAVEFORJUDICIALPURPOSESTheemployeesofficiallysummonedtoappearbeforeanyCourt,prosecutor,administrativeagencyorgovernmentagencyareentitledtogoonleaveforthetimeabsentfromworkbecauseofsuchsubpoenas,withoutreductioninpayorvacationleave,unlesstheemployeeisthedefendantorplaintiffinanycase,orchargedwithanycrimeoroffense.ARTICLEXXXLICENSEANDSCHOLARSHIPSFORSTUDYSection1:FEETheAuthoritymayauthorizetuitionpaywhenstudiesortrainingtobetakenarerelatedtothesubjectofthepositionheldbytheemployee,orwithsomepositionthatexistsintheAuthoritywithinthesamelineofwork(seriesofclassifications)oftheemployee.a)RegistrationforAcademicStudiesIncaseofhighereducationstudies,theemployeemaybeauthorizeduptoamaximumofnine(9)creditsperregularsemesterorsummersession.Inexceptionalcases,theExecutiveDirectormayauthorizeuptoamaximumoftwelve(12)credits.Thetuitionforundergraduatestudiesshallbethecostofcredittoamaximumofthirty-sixdollars($36.00)percredit.ForpurposesofMastersDegree,itshallbeunderstoodthatpaymenttobeauthorizedshallbetheprevailingcostat38theUniversityofPuertoRico,whichissetatseventy-fivedollars($75.00)percreditatthistime.b)TuitionforTechnicalStudiesand/orTrainingIncaseoftechnicaland/ortrainingsforprofessionaldevelopment,tuitionshallbepaid:1.WhenstudiesarecontinuingeducationrequirementstomaintainalicenserequiredbylaworanAssociation.2.Whenthestudiesleadtotheawardofalicensethatqualifiestheemployeetoobtainmembershipinthecaseofauxiliariesincollegiateoccupations.(E.g.ElectricianAssistant).Section2:SCHOLARSHIPSItmaybegrantedinequaltermstothepersonneloftheAuthorityandpotentialcandidatesforemploymentinordertoimproveandbecometrainedinhighlytechnicalareasofdifficultrecruitment.TheExecutiveDirectormayappointacommitteetoevaluateandmakerecommendationsongrantapplications.IndesignatingaScholarshipCommitteetoevaluateandmakerecommendationsofgrantapplicationsforpositionscoveredbytheBargainingUnit,theAuthorityshallappointaspartofsuchcommitteeanOfficeroftheBrotherhood.Thescholarshipsshallmeetthefollowingrequirements:a)Thescholarshipopportunitiesshallbeannounced;b)Candidatesshallcompeteinequalterms;c)Candidatesshallbeselectedfromamongthoseresultingqualifiedinsuchcompetitions.Ifafterannouncingtheopportunitiesthereisonlyonequalifiedcandidate,thescholarshipshallbegrantedtohim/her;d)Grantsshallbeunopposedwhenthespecialandexceptionalrequirementsofserviceandqualificationsofemployeessowarrant;e)PersonsselectedforscholarshipsorpaidleaveforstudiesthatdonotmeetthepledgedobligationshallformalizeacontractcommittingtoworkfortheAuthorityforatimeequaltotwicetheperiodofstudy,atthesiteandpositionthattheExecutiveDirectordetermines;f)Anypersonwhohasbeengrantedascholarshiporstudyleavewithpaythatdoesnotmeettheobligationmustrepaytheamountinvestedandshallbeineligibleforemploymentforatimeequaltothreetimesthetimeofstudy;andg)TheExecutiveDirectormaycanceltheofferofascholarshipatanystageoftheproceedingsforcause.ARTICLEXXXIUNIONLEAVESection1:Anythree(3)employeesmay,attherequestoftheBrotherhood,occupyapaidpositionontheboardofthe39same,shallbeentitledtoreturntotheoriginaljoborapositionofequalrankwhenhe/sheceasesinthepositionattheBrotherhood.Whileactingassuch,anofficialoftheBrotherhoodshallhaveannualrenewablelicensewithoutpay,providedthatthedaysabsentfromtheemploymentforitshallnotaffecthis/herrightofseniority.Section2:AnytimespentbyrepresentativesoftheBrotherhoodincollectivebargaining,RelationsBoardorinadministrativegovernmentalagencies,suchastheDepartmentofLaborandHumanResources,LaborRelationsBoardorCourts,shallnotbedeductedfromtheemployee’svacationprovidedthatinthatoccasiontheAuthorityhasbeendulyrepresentedandthemattertobediscussedisrelevanttobothparties.TheemployeeshallberequiredtogivereasonablenoticetotheHeadofDepartmentorOfficeinorderthatthejobfunctionsarenotadverselyaffected.Iftheappearanceoftheemployeetosuchactivityisinthemorning,he/sheshallnothavetoreturntoworkthatafternoon,withoutdetrimenttohis/herannualleave.Provided,thatwhenthehearinghasbeenscheduledfortheafternoon,theemployeeisrequiredtoworkinthemorningandifhe/shedoesnotwork,thattimeshallbechargedagainstaccruedannualleave.Ifthereisnoaccruedannualleave,suchpartialabsenceshallbewithnopay.Theemployeemustsubmitwrittenevidenceoftheappearance.Section3:TheAuthorityshallpaythefullsalaryandallbenefitsgrantedthatthisAgreementprovides,forregularemployees,tothePresidentoftheBrotherhoodduringthetimehe/sheoccupiesthatoffice,providedthathe/sheisabonafideemployeeonactivedutyintheAuthorityandmayuseuptofiftypercent(50%)ofhis/herregularworkinghourstoaddressissuesrelatedtotheadministrationofthisAgreementandeffortsdirectlyrelatedtotheAuthority,itsofficersandemployees,withoutdeductingoraffectinganysalaryorlicense.Providedthatincasethathe/shedevotesfulltimetoworkonmattersoftheUnion,theBrotherhoodshallrefundfiftypercent(50%)ofthesalarytotheAuthority.ARTICLEXXXIISTIPENDSSection1:ItisunderstoodasstipendsthereimbursableexpensesforfoodandlodgingincurredbyemployeescoveredbythisAgreementwhenrequiredtoworkoutsidetheareaorworkplace.Section2:EmployeescoveredbythisCollectiveBargainingAgreementshallreceiveratespayableaccordingtothefollowingdistributioneffectiveonthedateofsigningthisAgreement.Thesecostsshallbereimbursedattherateof:40a)$84.00(eighty-fourdollars)overthetermoftheAgreement,distributeddailyasfollows:Breakfast$6.00Lunch$8.00Food$10.00Lodging$60.00b)WherethetripistoViequesandCulebra,travelexpensesshallbereimbursedattherateof$97.00(ninety-seven)duringthetermofthisAgreementdistributeddailyasfollows:Breakfast$7.00Lunch$9.00Food$11.00Lodging$70.00Section3:Stipendsspecifiedaboveshallbepaidaccordingtothefollowingdeparturetimeandreturntotheofficialstationorprivateresidenceoftheemployee:AmountonorbeforeReturnonorafterBreakfast6:00a.m.9:00a.m.Lunch11:00a.m.2:00p.m.Food5:00p.m.8:00p.m.Lodging6:00p.m.6:00a.m.ThelunchstipendshallbepaidwhenevertheemployeeisnotphysicallyintheusualworkareaduringthelunchhourorfractionthereofandisperformingataskinanotherplacepursuanttodirectivesoftheAuthority.Section4:Theapplicabledietshallbepaidat100%totheemployeeassignedtoaprojectorOfficeduringworkingdaysinwhichitisincurred.ARTICLEXXXIIIPRO-RETIREMENTWAGEDIFFERENTIALSection1:TheAuthorityshallpayapro-retirementwagedifferentialofseventydollars($70.00)permonth,duringthethirdyearbeforeretirement,apro-retirementwagedifferentialofonehundreddollars($100.00)permonthinthesecondyearbeforeRetirement,apro-retirementwagedifferentialofonehundredthirtydollars($130.00)permonth,duringthelastyearbeforeretirement,regardlessofanyotherincreaseshe/shewasentitledbycollectivebargainingorprovisionoflaw,duringthethree(3)yearsprecedingthedateofretirementatanyregularemployeeoftheAuthoritythatcomplieswiththefollowingrequirements:A.Thirtyyearsofservicea)Hasworkedforatleastten(10)yearswiththeAuthority.41b)Hastwenty-seven(27)yearsormoreofservicetotheGovernmentoftheCommonwealth,certifiedbytheRetirementSystem.c)HasofficiallynotifiedtheExecutiveDirectorfinalandfirmintentiontoobtainthebenefitsofaMeritPension.d)Isonthree(3)yeartermorlesstoturnthirty(30)yearsofservicewiththeGovernmentoftheCommonwealth.B.Between24and29yearsofservicea)Hasworkedforatleastten(10)yearswiththeAuthority.b)Hastwenty-one(21)yearsormoreofservicetotheGovernmentoftheCommonwealth,certifiedbytheRetirementSystem.c)HasofficiallynotifiedtheExecutiveDirectorfinalandfirmintentiontoobtainthepensionbenefitsbyageandyearsofservice(voluntaryretirement).d)Isonthree(3)yeartermtomeetbetween24-29yearsofserviceintheGovernmentoftheCommonwealth.Section2:FailuretomeetthefinalbindingintentioninwritingmadebytheemployeetoobtainpensionbenefitsofaPensionbyMeritand/orPensionforageandyearsofservice(voluntaryretirement),theAuthorityshalldeductfromthesourceslistedassubsectionb)thefollowing:a)Deductions1.Totalwageincreasesgrantedaspro-retirementwagedifferential,foreachofthethree(3)yearsoftheAgreementasspecifiedinSectionone(1).2.EmployercontributionsmadebytheAuthorityrequiredbylawandtheproportionatepartofthefollowingpayments:TheRetirementSystem.FederalSocialSecurityTheexcessoftheChristmasBonuseachofthethree(3)yearsinwhichthedifferentialwaspaid.Excessofsickleaveliquidationifitwaspaidandtheproportionatepartofanyregularvacationsenjoyedduringthethree(3)years.b)SourcesforDeductionsThepro-retirementincreases,asindicatedinSectionOne(1)above,shallbedeductedfromthemonthlysalaryandotherdeductionsshallbemadefromtheliquidationoftheMeritRetirementBonusand/orSickLeaveBalancesand/orRegularVacationLeavesand/oranyotheroutstandingbalancesincludingtheWelfareFund.Section3:BeforegivingthedifferentialcoveredbythisArticle,theemployeeshallsignthecorrespondingdocumentthat42coversallthedetailsenteredintheprecedingsectionsforalllegalpurposes.Section4:Iftheemployeehasappliedforthisbenefitandforwhateverreasondoesnotretire,asagreedcommitment,he/shecannotenjoythepro-retirementwagedifferentialsubsequently.ARTICLEXXXIVRETIREMENTBONUSTheAuthorityshallgrantameritbonusconsistingofninehundreddollars($900.00)foreachofthesevenyearofeffectivenessofthisCollectiveBargainingAgreement,foreachyearofservicewiththeAuthority,toanyemployeethereof,withregularstatustodateofretirement,belongingtotheCommonwealth'sRetirementSystem.ThemaximumannualpaymentforanemployeewhomeetsalloftherequirementscontainedinthisSectionshallnotexceedtwenty-seventhousanddollars($27,000)underanycircumstances.Yearofserviceshallbeunderstoodasaperiodoftwelve(12)monthsfromthedateofappointmentoftheemployee.Forpurposesofthiscomputation,fractionsofayearshallbeconsideredaccordingtothestandardinterpretationoftheCommonwealth'sRetirementSystem.ArticleXXXVCHRISTMASBONUSSection1:TheAuthorityshallgrantonorbeforeDecember15ofeachyearaChristmasbonusequivalenttoanineandahalfpercent(9.5%)duringthetermoftheAgreementwithacapof$26,500(twentythousandfivehundreddollars)oftheannualsalaryearnedbytheworker.Section2:Anyemployee,whohasworkedforaperiodofsix(6)monthsormoreatNovember30thofeachyear,shallbeentitledtoreceiveonorbeforeDecember15aChristmasbonusofnotlessthan$150.00.Section3:IncaseswherepriortoNovember30,theemployeehasdied,orhasstartedretirement,orhasbeenrecruitedbythearmedforcesoftheUnitedStates,he/sheshallbeentitledtotheChristmasbonusinproportiontototalwagesaccruedduringtheyear,asifhe/shehadcontinuedandservedonactivedutyuntiltheendofAgreementyear.Section4:Annualpaylicenses,sickandmaternity,shallbeconsideredtimeworkedforpurposeofthepaymentofthebonus.Section5:Thetimeinleavewithoutpayshallnotbetakenintoaccountforthecomputationoftimeworkedforthepurposeofpaymentofthebonus,exceptinthosecaseswheretheunpaidleaveisduetoillness.Inthelattercase,thebonusshallbedeterminedinproportiontothepartoftheyearinwhichthe43employeewasinservicepriortoNovember10thofeachoftheyearcoveredbythisAgreement.Section6:TheChristmasBonuspaymentshallbegovernedbytheprovisionsoflaw,astowhichemployeequalifiesforthebonusinproportiontothetimeservedworkingintheAuthority.ARTICLEXXXVIMEDICALPLANSection1:TheAuthorityshallprovideamedicalplantoemployees,individuallyand/orfamily.Section2:TheAuthorityagreestopayinfulldirectlytotheinstitutionthatmanagesand/orprovidesthemedicalplanand/ordentalplan,servicecostsincurredbytheemployeeand/ormonthlyfeeapplicableforthetermofthisAgreement,individualand/orfamily,asmaybethecase,oftheinstitutionthatprovidesinpatientservicesforthreehundredsixty-five(365)days,nodeductible,medicalsurgicalservices,emergencyroom(nomaximumpayment),medicaldirectoryandbioequivalentandmandatorymedicines(incaseswherethereisnotbioequivalent),brandprescription(nodeductibleboth).Physiotherapyservicesandrespiratorytherapyto20perconditionperyearinhospitalizationand20perconditionperyearinoutpatientservicesineachofthesituations,gastroenterologytestswith30%deductible,laboratoriesandX-rays-bothwithoutdeductibles,eyeglassesforemployeesandfamily$125.00annualdentalplan-preventivephaseanddiagnosticnodeductible,composite-20%deductible,majorsurgeries-50%deductible,endodontic-50%deductible,periodontics-50%deductible,vaccinesforchildren,includinghepatitisB,MajorMedical(50-150deductible)withsurgicalcare,drugandalcoholtreatment,organandmarrowto$1,000,000.00bytypeoftransplantforlifeinsured,Mammoplasty,LazyEyeTreatment.Ahearingtestperyear,hearingaidstoamaximumof$250.00percontractyear,OccupationalTherapyandSpeechTherapy,SterilizationandVasectomycover.Disabledchildrenshallbecoveredduringemploymenttenureofcoveredemployee,collegekidsupto25years,andcoverEndovaginalProstateSonogram,eachandeveryoneoftheemployeesoftheBargainingUnitwhoqualifyundertheprovisionsofthisAgreementandtheinstitution’sregulation.Section3:IndividualPlan3(a):TheAuthorityshallcontinuetopaythepremiums,asatpresentforeverysingleactiveemployeeattheeffectivedateofthisAgreementthatatthattimewereenjoyingthebenefitsofthePlan.ThecollateraldependenttobecoveredshallbethemotherorfatherthatiscoveredunderthePlanatthedateofsigningtheAgreement.443(b):SingleEmployeesofnewrecruitment:AnysingleemployeethatisrecruitedintheAuthorityfromhis/herappointmentshallbecoveredindividuallybytheAuthority.Thesenewlyrecruitedsingleemployeesshallhavetheoptiontocoverascollateraldependentthemotherorfather,theemployeecontributingthepremiumsrequiredbytheinstitutionforcollateraldependent,accordingtotheinternalregulationsoftheinstitution.3(c):RequiredDocumentation:InthecaseofemployeesdescribedinSections3(a)and3(b)above,theyshallsubmitproofthatthecollateraldependentarethemotherorfatherofthecoveredemployee,asthecasemightbe.EmployeesdescribedinSection3aboveshallsubmit,inaddition,evidencethatcollateraldependentsarecoveredunderthePlanattheeffectivedateofthisAgreement.Section4:FamilyGroupPlan4(a):MarriedEmployees:AnyemployeemarriedtoanemployeeoftheAuthorityshallbecoveredunderasingleFamilyPlan.4(b):Employeeswithchildren:TheAuthorityshallcoveremployeeswithchildrenunderFamilyPlancoverage.4(c):DocumentationRequired:EachemployeewithFamilyGroupPlanshallsubmitthefollowingdocuments,aspereachparticularcase:1)Marriagecertificate.2)CertificateofbirthofchildrenandstepchildrentobecoveredbythePlan.3)Adoptioncertificateissuedbythecompetentcourt.4(d):TheFamilyGroupPlanisonethatincludes,inadditiontotheemployee,his/herdependentsthereof,asdeterminedbytheregulationsoftheinstitution.Section5:Itshallbethedutyofmarriedemployeesand/orwithchildrentonotifytheAuthorityofthemarriageofachildrencoveredbythePlan,aswellasnotifywhenacollegestudentceasestudyingbetweentheagesof19and25yearsaswellasanyothercircumstancesthatvarytheplancoverageofferedbytheAuthority.Section6:ThemedicalplanservicesthateligibleemployeesshallreceiveduringthetermofthisAgreementwhichareofferedbyadifferentinstitutionthantheonecurrentlyprovidingthemshallbethesameorsimilartothoseidentifiedinSection2ofthisArticle.ARTICLEXXXVIILIFEINSURANCE45TheAuthorityiscommittedtomaintainalifeinsurancepolicyinanamountequivalenttotwice(2)theemployee’sannualsalarywithdoubleindemnitycoverageforaccidentaldeathbenefitsinoroutofworkthatshallcoverworkersintheBargainingUnitandthecurrentdisabilitycoverage.Employeeswhohavebeendismissedfromservicepermanentlyortemporarilyforretirement,ageordisability,asofDecember31,1983,shallmaintaininforcethelifeinsuranceasatpresent.ARTICLEXXXVIIIWELFAREFUNDSection1:TheAuthorityshallcontributetotheWelfareFundasofDecember1,2012andduringthetermofthisAgreementthesumof$70.00(seventydollars)permonthforthetermoftheAgreementforeachregular,substituteorprobationaryemployeecoveredbythesame.TheuseoftheWelfareFundshallbeadministeredbytheBrotherhoodonthebasisoftheprovisionsoftheRegulationsfortheadministrationoftheFund,ofthefirstofMay1979,whichmayberevisedbytheCouncilonRelationswiththepurposeofimprovingandharmonizeitwiththisAgreement;providedthatanyprovisionoftheaforementionedRegulationcontrarytowhatisconvenedbythepartiesinthisAgreementisherebyrepealed,forthatregulationmustcomplywiththeprovisionsofthisAgreement.TheBrotherhoodandtheAuthorityarerequiredtofulfilltheresponsibilitiessetinthatregulation.TheAuthorityshallhavetherighttoaudittheWelfareFundannuallyaspartofitsinternalauditprogrambeginningin2013.Section2:ItisagreedthatnolaterthanJanuary30thofeachyear,theBrotherhoodshallsubmittotheComptrolleroftheAuthoritycertifiedstatementsbyaCertifiedPublicAccountantonrevenuesandexpensesoftheFund,aswellasastatusreportforthepreviousyearendingonNovember30thofeachyear.Section3:ThefeestobepaidtotheCertifiedPublicAccountantshallbedisbursedfromtheWelfareFund.Section4:FromtheWelfareFundanamountshallbebudgetedtoprovidedisability,retirementordeathbenefitstothemembersoftheBargainingUnit.Section5:FromtheWelfareFund,anamountshallbebudgetedforaprogramand/orcontributionsandexpensesrelatedtouniontrainingandeducationformembersoftheBargainingUnitwhichaimatimprovingtheadministrationoftheCollectiveBargainingAgreement.ARTICLEXXXIXNONOCCUPATIONALDISABILITYINSURANCE46EmployeescoveredbythisAgreementshallreceivethebenefitsprovidedbytheDisabilityInsuranceAct(SINOT)paidinfullbytheAuthority.ARTICLEXLAUTOMOBILEINSURANCEANDPAYMENTOFMILEAGESection1:AutoInsuranceTheAuthoritydoesnotrequireanemployeetousehis/herprivatecaronofficialbusiness.TheAuthorityiscommittedtomaintainingitspublicliabilityinsuranceandautomobilecollision,includinginitemployeesofthisUnitwhoarerequiredtohaveavehicleasaconditionofemployment,whentheyareauthorizedtousetheirvehicleinofficialbusinessmattersoftheAuthority.Thispolicycoverageshallbe:InjuryorDeathUpto$100,000.00PropertyDamagesUpto$50,000.00CollisionUpto$5,000.00Section2:MileageA)InallcaseswhereanemployeeisauthorizedbytheAuthoritytooperatehis/herownvehicleonofficialbusinessmatters,theAuthorityshallpaythemileageattherateofforty-threecents(43¢)permileplustencentavos(10¢)permileforeachadditionalemployeeauthorizedtotravelinthevehiclefromthedateofsigningthisAgreement.B)EachemployeeauthorizedtoundertakeofficialaffairsfortheAuthoritythatarerequiredandauthorizedtoincurtransportationexpensesshallbereimbursedfortheamountofexpensesincurredbysubmittingthecorrespondingreceipts.Section3:UseofAutomobileasConditionofEmploymentIftheAuthorityrequiresaworker,asaconditionofemployment,theuseofacaronofficialbusinessmatters,theemployeeshallbepaidacompensationoffiftydollars($50.00)permonthinadditiontodietsthatmayapplytosuchemployee.Thiscompensationshallnotbepaidwhentheworkerisenjoyingsomekindoflicensethatlastsmorethanthirty(30)days.ARTICLEXLIPARKINGTheAuthority,awareoftheneedforemployeescoveredbythisAgreementtousetheirpersonalvehicletogotowork,shallprovidereservedparkingfacilityatnocosttoemployees.InthegeneralparkingfacilitiesofIslaGrandeandofthecurrentgeneralemployeesparkingoftheLuisMunozMarinInternationalAirport,therequiredsurveillanceshallbeprovidedfrom7:00amto5:00pmMondaythroughFriday.AparkingspaceforthePresidentoftheUnion(HEO)onofficialbusinessshallbereservedinthegeneralparkingareaforemployeesandvisitors.47Iftheconditionsprevailingatthesigningofthisarticlewerechanged,thepartiesagreetoreopennegotiationsonthisArticle.ARTICLEXLIIDISPUTERESOLUTIONTheterm"Dispute"includesanycomplainorcomplaintinvolvingtheinterestofoneormoreworkersarisinginanyUnitoragencyoftheAuthorityand/orgrievance,complaintorclaimconcerningtheinterpretation,application,administrationorallegedviolationofthisAgreement.ComplaintsorgrievancesmaybeinitiatedbytheBrotherhoodortheAuthority.AnycomplaintorgrievanceshallbeprocessedinaccordancewiththemechanismssetoutinthisArticleandorganismscreatedbylawwithjurisdictiontodoso.ThepartiestothisAgreementagreethatshouldadisputeariseduringthetermhereof,thesameshallbesettledthroughtheproceduresetoutinthisArticle.TheAuthorityandtheBrotherhoodagreethatmattersofacontroversialnatureshallberesolvedthroughthefollowingprocedurewhichincludestwo(2)phases:Section1:FIRSTPHASE–ADMINSITRATIVESTAGEA)Anycomplaintarisingshallbediscussedinthefirstinstancewithinaperiodofthree(3)workingdaysfromthetimeitarises,withtheemployee'simmediatesupervisor,havingtheobligationtoanswerthesameinwritingwithinthefollowingthree(3)businessdaysafterhavingdiscussedit.B)IftheUnionisnotsatisfiedwiththedecisioninthecase,itshallbeappealed,withinfive(5)businessdaysofreceiptofthedecisionoroftheterminationoftheperiodofthefirststep,totheDirectorofthecorrespondingBureauwhoshallhaveuptofive(5)workingdaystoresolveand/oranswerthecomplaintinwriting.C)TheDirectoroftheBureau'sdecisionmaybeappealedwithinten(10)daysafterreceiptofthedecisionoftheDirectoroftheBureauorterminationofthetermofthesecondstepabove,withtheDirectorofLaborRelationswhoshallresolveand/orrespondinwritingwithinaperiodnotexceedingfifteen(15)daysofhavingbeensubjected.Section2:SECONDPHASE–ARBITRATIONWhenthecomplainthasnotbeensatisfactorilyresolvedbythepartiesinthepreviousphase,itmaybesubmittedtoarbitrationwhichshallbemadewithinfifteen(15)daysfollowingthedecisionoftheDirectorofLaborRelationsorafterexpirationofthetermoftheCouncilordecisionthereof,asapplicable.TherefereesusedarethoseoftheConciliationandArbitrationBureauofLaborDepartment,unlessotherwiseagreedbetweentheparties,andthesameshallbeselectedaccordingtotheprocedureoftriplesandtherulesofsaid48Bureau.Thearbitrator'sdecisionshallbefinalandbinding,followedandfulfilledbythepartieswheneverlawfully.ThepartiesshallsubmittotheArbitratorwrittensubmissionofthecomplainttoberesolved.Wherethereisnotanagreementonthewrittensubmission,therefereeshalldraftthesamebasedonthefactspresentedtohim/her.ThearbitratormaynotimposedamagesprovidedthatthislimitationshallnotaffectinanymannerthefacultytorecognizerightsunderthisAgreement,ortomodifyorrevokedisciplinarysanctions,withtheacknowledgementofthemonetarycompensationprovidedforinthisAgreement.Section3:AlltermscontainedinthisArticleshallnotbeextendedtoallparties,exceptthattheAuthorityandtheUnionthroughitsofficialrepresentativesdecidetoextendanyparticularterm,inwhichcaseitshallspecifythetimeofthenewtermagreed.AnycasependingbeforetheRelationsCouncil,atthetimeofthesigningofthisAgreementshallbecontinuedandcompletedinaccordancewiththeabove.Section4:IncasesofdisciplinethatdonotinvolvereasonsforsuspensioncontemplatedinArticleXLIII,SummaryorPeremptorySuspensions,progressivedisciplinaryactionbeginswithaverbalwarning,awrittenreprimandcontinues,thenasuspensionthatshallnotexceedthirty(30)daysandfinallydismissal.Section5:IncaseswherethecomplaintorgrievancearisingfromadirectdecisionoftheExecutiveDirectororthoseinwhichtheUnionclaimrightsorcollectiverightsofthemembersoftheUnion,undertheprovisionsofthisAgreement,shallbefiledinfirstinstancewiththeDirectorofLaborRelations.TheDirectorofLaborRelationsshallhavefifteen(15)workingdaystoreply.Whenthegrievancehasnotbeensatisfactorilyresolvedbytheparties,itmaybesubmittedtoarbitration,whichshallbemadewithinfifteen(15)workingdaysofthedecisionoftheDirectorofLaborRelationsoraftertheterminationoftheperiodhavetoanswerit.ARTICLEXLIIISUMMARYORPEREMPTORYSUSPENSIONSection1:IncaseswherearegularemployeeintheBargainingUnithasbeenpermanentlyseparatedorshallbesummarilyorperemptorilysuspended,withinfive(5)businessdaysoftheoccurrencethesituationgivingrisetothisaction,ameetingshallbeheldwiththeaffectedemployee,accompaniedbyhis/herDeputy,PresidentoftheHEOandtheDirectorofLaborRelationsorhis/herrepresentatives,thatshallinformofthechargesagainsttheemployee.49IncasesarisingasaresultofinternalorexternalauditoftheAuthorityand/orcasesarisingoutofreportsoftheComptroller,theAuthorityshallbedeemedtohaveknowledgeofthefactsforpurposesofthisArticlefromthedatetheAuditorsendsthereporttotheExecutiveDirector.Dependingonthetypeofviolation,ifany,itshallbeprocessedbythenormalorsummaryprocedure.a)TheAuthorityintheabove-mentionedcasesreservestherighttoimposedisciplinaryactionthatmayrangefrompermanentseparationuptosuchmeasuresitdeemsappropriate.Section2:Thepurposeofthemeeting,besidesinformingaboutthecharges,shallbethattheemployeereportofafact,witness,differentversionthatmayvarythechargessubstantially.Section3:OncethemeetingreferredtoinSection2ofthisArticleisheld,theAuthorityshalltakethecourseofactionthatitdeemsappropriatewithinfive(5)businessdays.Section4:a)Ifthedecisioninvolvesapermanentseparation,thepartiesmayusetheexpeditedarbitration,ifthispossibleandsogranttheConciliationandArbitrationBureauoftheDepartmentofLaborandHumanResourcesbythemethodofchoosingfromalistofarbitrators.b)AnyactiontakenotherthanpermanentseparationunderthisprocedureshallbecarriedbytheordinarycourseofArbitration.Section5:Includedinthisprocedurearethosecasesthatoccurredinthefollowingcircumstances:1.Misappropriationofpropertyand/orfundsoftheAuthority.2Misappropriationofpropertyand/orfundsfromusersordealersoftheAuthority.3IncurredinconductthatendangersthesafetyofthefellowemployeesorthepublicwhovisitorusetheservicesoftheAuthority.4HavingcauseddamagetothepropertyoftheAuthority.5.Hasbeenfoundinpossessionand/oruseofexplosives.6.Hasbeenfoundinillegalpossessionofafirearmand/orotherprohibitedweaponswithinthefacilitiesoftheAuthority.7.Hasbeenaccusedand/orimprisonedforoffensesaffectingtheimageoftheAuthorityanditsemployees.8.HavingliedsubstantiallyinthejobapplicationinordertobeemployedbytheAuthority.509.HasabandonedorrefusedtoattendadrugrehabilitationtreatmentoralcoholafterbeingevaluatedbydoctorsoftheAuthorityandreferredbytheAuthority.10.Incurredinverbalattacksconsistingofusingfoullanguage,insulting,offensive,obsceneandmenacingagainstthemonitoringand/ormanagement.11.Workinginanapparentstateofintoxicationordrug.12.RefusetouseorattempttopenetrateorenterunauthorizedpersonstotheAuthority,totheareasrequiringtheuseofIDcardissuedbytheAuthority,docks,airportsandotherfacilitiesoftheAuthority.13.Incurredinattemptsofand/orphysicalattacksonthesupervisorand/ormanagement.14.Hasbeenfoundinpossessionoruseand/orarrestedandchargedfortheuse,sale,distributionand/orcomplicity,andothersrelatedtodrugtrafficking.15.Accusedand/orimprisonedforviolationoffederalregulationsgoverningand/orregulatingtheportsandairports.16.Unjustifiedabandonmentofserviceforfourdaysormore,withoutnoticetotheAuthority,verifiableonlybyofficialreceiptstampofthedepartmenttowhichtheemployeeisassigned,withintheperiodspecifiedabove.17.Thatbyruse,simulation,plot,ployoranyformofcheating,altering,change,deletefrom,counterfeit,withintenttodefraud,anyformofauthorityand/orsignatureofanysupervisorormemberofmanagement.18.ThattheemployeeincurredinbriberyorofferingbribesasithasbeendefinedintheCriminalCode.Section6:CasesrequiringprogressivedisciplinaryactionshallbegovernedbySections1through4ofArticleXLII,DisputeResolution,andshallnotbesubjecttotheprovisionsofthisArticle.ARTICLEXLIVPRIORITYOFDISCIPLINARYCASESSection1:Thepartiesagreetogivepriorityandexpeditecasesinvolvingdisciplinarymeasures;forthispurpose,theyshallusetheirbesteffortstoinitiatethecasehearingwithinaperiodnotexceedingsixty(60)daysofthefilingofthedisciplinaryproceedingbytheAuthority,thatis,intheordinaryprocedure,thefilingofthecase,andinthesummaryproceeding,thedisciplinaryaction.TheordinaryproceedingisthatinwhichthedisciplinarymeasureisnoteffectiveuntilthedeterminationoftheArbitratorandthesummaryproceedingisthatinwhichthedisciplinaryactioniseffectiveimmediately.51Section2:Bygivingprioritytocasesofsuspensionanddismissalheldunderthetwoprocedures,thepartiesagreetosuspendothercasesbeforetheselectedArbitratorthatdonothavethispriority.ARTICLEXLVCOMPLIANCEWITHAGREEMENTThepartiesattestthattheconversationsfornegotiationofthisCollectiveBargainingAgreementwereconductedinanatmosphereofreasonablenessmakingpossiblethesatisfactoryunderstandingbetweentheparties,whichhasundoubtedlyledtomorecordialrelations.Inthesamespiritofunderstandingandmaintainingtheachievementsandwithaclearunderstandingoftheresponsibilitiesassumedbyeachoftheparties,thepartiesbymutualagreementconvenethatduringthetermofthisAgreementshallfaithfullycomplywitheachandeveryoneofitsprovisionsandintheeventofclaimsordisputestheyshallexhaustallthemeansprovidedinthisAgreement.ThepartiesagreethatduringthetermofthisAgreement,anydisputearisingfromtheinterpretation,application,administrationorallegedviolationofthisAgreementshallberesolvedexclusivelyusingtheproceduressetforthinthisAgreement.ARTICLEXLVIGENERALPROVISIONSSection1:NonAttributableAbsencesWhenforreasonsattributabletotheAuthorityandnottheemployee,he/sheisunabletoworkthedayorpartthereof,theAuthorityshallpaythefulldayorpartofadayasifhe/shehadworked.Section2:Equipment-RainProtectionTheAuthorityshallprovideemployeeswhoarerequiredtoworkoutdoorsequipmentnecessaryforprotectionagainstrain.Section3:UniformIftheAuthorityrequiresanemployee,asaconditionofemployment,theuseofuniform,theAuthorityshallprovidesix(6)uniformsannually,tobedeliveredthree(3)inJulyandthree(3)NovemberofeachyearofthetermofthisAgreementbeginninginthemonthofNovember2000.Section4:SafetyRequirementsTheAuthorityshallprovideallthesafetyequipment(e.g.,gloves,shoes)requiredbytheemployeeforpersonalprotectionintheperformanceoftheduties,inaccordancewiththeregulationsoftheOccupationalHealthandSafetyOfficeoftheDepartmentofLaborandHumanResources.TheemployeeshallberequiredtouseequipmentprovidedbytheAuthority.Section5:Cafeteria52TheUnionhastherighttomakerecommendationsregardingthecafeteriascurrentlyoperatingandtheAuthorityshallresolveanyproblemthattothateffecttheBrotherhoodreports,ifitisunderitscontroltosolveit.Section6:BulletinBoardsTheAuthorityshallplaceatsuitablesiteswhereemployees,coveredbythisAgreement,arerenderingserviceBulletinBoards.OntheseboardstheBrotherhoodmaypublishnoticesofmeetings,meetingsoftheBoardofDirectors,academies,RelationsCouncilmeetings,diseaseordeathofanypartnerorfamilyofamember,providedthatanyotherinformationthattheBrotherhoodwishestoplaceinsaidbulletinboardshallfirstbeapprovedbytheHeadofDepartment,DivisionorOfficeordesigneeforthatpurpose.Section7:ProhibitionandFunctionsIncludedandExcludedTheAuthorityshallnotconferpowersandsupervisoryandexecutivefunctionstoanemployeeincludedwithintheBargainingUnit.NorallowexecutivesorsupervisoryemployeesperformthedutiesandfunctionsofpositionsincludedintheBargainingUnit,exceptinemergencycasesforwhichtheAuthorityandtheUnionshallagreetoresolvethem,providedthatwhentheemergencyarisesinoffhours,theAuthorityshallnotifytheUnionoftheactiontakenduringthenextbusinessday.Section8:NotificationsRelatingtoEmploymentTheAuthorityshallsendtheBrotherhoodacopyofallcirculars,administrativeordersorwrittencommunicationsdirectedtoanyemployeecoveredbythisAgreementorthataffectshim/herassuch.Section9:NotifiableAbsenceAllemployeescoveredbythisAgreementarerequiredtonotifytheirimmediatesupervisor,orhisauthorizedrepresentative,anyabsencetoworkwithinthefirstfour(4)hourofthedailyshift,exceptforforcemajeure,orjustifiedcause.Section10:VestingAllright,concessionorbenefitthatasofthesigningofthisAgreementareenjoyinganymemberoftheBargainingUnitindividuallyorcollectively,thathasnotbeenmodified,revokedoralteredbytheprovisionsofthisAgreementshallnotbeimpairedtosuchemployeeorgroupofemployed.Section11:BirthdayDayTheAuthorityshallgrantregularemployeesthebirthdayoffwithpay.IftheAuthorityrequirestheemployeetowork,itshallcompensateitatdoubletime.Allregularemployeesthathis/herbirthdaycoincideswithadayofforholiday,unlesssuchdayofffallsonaSaturday,thenextbusinessday53itshallbegiveninsubstitutionofthebirthday.Iftheemployeeworksonthesubstituteday,he/sheshallbepaidatdoubletime.Section12:IndustrialSafetyCommittee(OSHO)WhentheIndustrialSafetyCommittee(OSHO)oftheAuthoritydiscussesandconsidersissuesrelatedtotheMaritimeandAviationBureaus,orCentralOffice,theBrotherhoodshallbeentitledtohaveamemberofthebargainingUnitrepresentingthesectorindiscussionsorconsideration.Section13:EffectiveStipulationsThestipulationsmentionedinthepreviousAgreementarerepealed.Employeeswhowerecoveredbystipulationsthatareeliminatedshallpasstotheshifttheyhadatthesigningofthestipulationthatwaseliminated.Section14:EmploymentofRelativesTheAuthoritydoesnotemploypersonswhoarerelativestoworkinthesameworkarea,evenonatemporarybasis.Neithershallithirerelativestoworkwhenoneofthemissubordinateoftheother.Shouldamarriageoccurbetweenemployeesinthesameoffice,onespouseshallbetransferredtoanotheroffice.Forpurposesofthissection,bloodrelativesareparentsandchildren,brothers,unclesandnephews,andrelativesbymarriagearesonsordaughtersinlawandspouses.Section15:Duetothenatureofthefunctionscarriedoutbybuildinginspectorsitisnecessarythattheybegintheirworkdayat7:00amandendat3:30pm.Themealperiodshallbeenjoyedbytheseworkersfrom12:00noon1:00pmSection16:IntheMaritimeBureaucoexistsemployeeswithaclassificationofBrigadesDriversassignedtotheHEOandemployeeswithaclassificationof"Utilities"assignedtotheUDEM,whichareseparateappropriateunits,andthatworkdifferentschedules,althoughbothmustworkinunison.Toharmonizethecoexistenceinthedailyperformanceofthefunctionsofeachgroup,theAuthorityandBrotherhoodofOffice,CommerceandAnnexBranchesInc.(Ports),agreetoestablishthemealperiodpursuanttothelawratherthanwhatisprovidedinArticleXXII,Section7ofthecurrentCollectiveBargainingAgreement.ThepartiesfurtheragreethattheworkinghoursoftheDriversandBrigadesshallbecoveredbytheprovisionsofArticleXXII,Section3ofthecurrentCollectiveBargainingAgreementandthescheduleshallbeasprovidedbelow:A)A.M.7:00amCheck-Out12:00M.D.B)P.M.Check1:00p.m.-4:00p.m.DepartureC)MealPeriodHour12:00M.D.-1:00p.m.Thehalfhourbetween3:30pmand4:00pm,isunderstoodtobe"extra"forbeinginexcessoftheregulardayof7.5hours.54TheseprovisionscoverthoseemployeesengagedasdriversofBrigade,aswellasthosewhobyreasonofvacation,sickleaveoranyothersituationssubstituteorreplacethecurrentincumbents.Section17:inArticleXXXIIofthisAgreement,thepartiesprovidedeverythingrelatedtoDietsoftheemployeescoveredbytheBargainingUnit.GiventhenatureoftheoperationscarriedoutintheboatservicefromFajardo,CulebraandVieques,forirregularschedules,itisprovidedasfollows:EmployeesassignedtotheFajardoferryserviceinirregularshiftsarebrowsingareentitledtobreakfastwhenevertheystarttheirworkdaybetween3:00amand8:00am.Likewise,shallbeentitledtothedietfordiningwhenbrowsingafter11:00pmoutsidehis/herofficialstation("homeport").Section18:A)ThoseemployeeswhoreplacebrigadesdriversinanyofthosebureausoftheAuthorityduetoabsences,holidaysorprolongedillness,shallreceivefromthetimetheyperformtheirfunctionsaspreadofforty-fivecents($0.45)perhour.Wheretheworkcontinuesformorethanten(10)days,thedifferentialisreplacedbytheprovisionsofArticleX(LaborInterim).B)ThoseemployeesspecificallydesignatedTechnicalBrigades(onebrigade)shallbecompensatedbasedonfortydollars($40.00)permonthwhileexecutingthework,exceptduringvacationsandextendedillness.ARTICLEXLVIISURVIVALCLAUSEIfforanylegalreason,acourtbyvirtueofafinalandbindingjudgmentdeclaresinvalidorunconstitutionalorinconflictwithapplicablelawanyclauses,sectionsorarticlesofthisAgreement,thisdoesnotinvalidatetherestofitandallotherpartsshallcontinuetogovernwithfullforceandeffect,exceptfortheaffectedpart.Thecontractingpartiesshallmeetwithinaperiodnottoexceedfifteen(15)daysafterbecomingawarethatapartofthisagreementwasdeclaredvoidorisinconflictorinconsistentwithanylaw,todiscussanewprovisionthatonceadoptedshallbecomepartofthisAgreementinfullforceandeffect.ARTICLEXLVIIIEFFECTIVENESSSection1:ThetermofthisAgreementshallbeforaperiodoffour(4)years,beginningonOctober1,2012andendingon30September2016.55Section2:WhenthisCollectiveBargainingAgreementexpiresitshallsurvivedaybydayuntilthenegotiationofanewCollectiveBargainingAgreement.SignedinSanJuan,PuertoRicoonDecember______,2012.AUTORIDADDELOSPUERTOSHERMANDADDEEMPLEADOSDEPUERTORICODEOFICINA,COMERCIOYRAMASANEXASDEPUERTORICO,INC.

# EXHIBIT E TO SUPPLEMENT

ASUR General Aviation Benefits

See Attached

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# EXHIBIT F TO SUPPLEMENT

Material Litigation

See Attached

# EXHIBIT G TO SUPPLEMENT

December 28, 2012 Correspondence

See Attached

# From: Alvarez Castañeda, David (GDB) [ mailto:David.Alvarez@bgfpr.com ]

Sent: Friday, December 28, 2012 10:48 AM

To: kevin.willis@faa.gov

Cc: Randall.Fiertz@faa.gov ; Gil Olazabal, Gerard A. (GDB); Schmidt, John R.

Subject: Concessionaire Letter Sept-15-2011

Kevin,

We have reviewed the letter dated September 15, 2011 regarding concessions at LMM to which

you made reference in our call on Dec-21-2012 (attached copy of letter).

We do not believe the letter (which as you noted predates the conclusion of the P3 bidding

process and the selection of Aerostar as the winning bidder) is any way inconsistent with the

obligations of Aerostar to assume all existing concessions and other contracts under the LMM

lease or with the ongoing efforts of both the PRPA and (since its selection) Aerostar to engage

retail concessionaires at the Airport in a positive way in the P3 process. We note the following

points about the letter:

The letter called for a pause in the process of concessions related only to the new

Terminal A and was attributable to concerns at the PRPA about the legal status of

previously granted concessions that were asserted to cover that new Terminal (which as

you know are now the subject of litigation) and the need to consider such issues before

moving forward.

Since the issuance of the letter a series of negotiation efforts have been carried out by the

PRPA with the concessionaire claiming rights with respect to the new Terminal, and

since its selection as the winning bidder such discussions have continued with Aerostar.

The letter solely relates to Terminal A and has no impact on any other current concession

agreement at LMM.

We are optimistic that agreement will be reached between the parties to the dispute regarding

Terminal A concessions. We do not believe the issues involved in that dispute have any bearing

upon or should have any impact on the conclusion of the P3 process.

Let me know if you require additional information regarding this matter.

David Alvarez

Executive Director

Puerto Rico Public-Private Partnerships Authority

Phone: 787.722.2525 ext. 15210 / 15211

Fax: 787.728.0963

Email: david.alvarez@bgfpr.com

# EXHIBIT H TO SUPPLEMENT

First Amendment to the Lease Agreement

See Attached

# 1

AMENDMENT NO. 1 TO LUIS MUNOZ MARÍN INTERNATIONAL AIRPORT

LEASE AGREEMENT

THIS AMENDMENT, dated as of February ___, 2013 (this “First Amendment ”), to the

Luis Munoz Marín International Airport Lease Agreement dated as of July 24, 2012 (the “Lease

Agreement ”), by and between the Puerto Rico Ports Authority (the “Authority ”), a public

corporation and government instrumentality of the Commonwealth of Puerto Rico, created

pursuant to Act No. 125 of the Legislative Assembly of Puerto Rico enacted on May 7, 1942, as

amended, and Aerostar Airport Holdings, LLC (the “Lessee ” and, together with the Authority,

the “Parties ”), a limited liability company organized under the laws of the Commonwealth of

Puerto Rico. Capitalized terms used but not defined herein shall have the meanings set forth in

the Lease Agreement.

WHEREAS, the Parties wish to amend the Lease Agreement in accordance with the

terms herein.

NOW, THEREFORE, the Lease Agreement is hereby amended and restated, as follows:

Section 1. Amendment of Lease Agreement . Section 3.4(a) of the Lease Agreement

is hereby amended (a) by amending clause (ix) to read as follows: “any collective bargaining

agreement that covers employees of the LMM Airport Facility and is in effect on the Date of

Closing will not be abrogated by this Agreement.” and (b) by adding the following sentence

immediately after clause (ix): “To the extent items (vi) and (ix) described above are under the

control of the Authority, the Authority will ensure that (A) safety and security at the LMM

Airport Facility will be maintained at the highest possible levels and (B) any collective

bargaining agreement that covers employees of the LMM Airport Facility and is in effect on the

Date of Closing will not be abrogated by this Agreement.”

Section 2. Amendment to Lease Agreement Schedules . Schedule 1 to the Lease

Agreement (Legal Description of LMM Airport Facility) is hereby replaced with Schedule 1

attached hereto.

Section 3. Representations and Warranties . Each of the Parties represents and

warrants to the other Party that:

(a) It has the power and authority to enter into this First Amendment and to do

all acts and things and execute and deliver all other documents as are required hereunder

to be done, observed or performed by it in accordance with the terms hereof;

(b) This First Amendment has been duly authorized, executed and delivered

by it and constitutes a valid and legally binding obligation of it, enforceable against it in

accordance with the terms hereof, subject only to (i) the effect of bankruptcy, insolvency,

reorganization, moratorium or other similar requirements of Law and judicial decisions

now or hereafter in effect generally affecting the enforcement of creditors’ rights and

remedies and (ii) the effect of requirements of Law governing equitable remedies and

defenses and the discretion of any court of competent jurisdiction in awarding equitable

remedies;

# 2 (c) The execution and delivery of this First Amendment by it and the

performance by it of the terms, conditions and provisions hereof do not and/or will not

contravene or violate or result in a breach of (with or without the giving of notice or lapse

of time, or both) or acceleration of any material obligations of such Party or give rise to a

right of termination, cancellation or augmentation of any obligation or loss of a material

benefit under or result in the creation of any material Encumbrance under (i) any

applicable Law or (ii) any agreement, instrument or document to which such Party is a

party or by which such Party is bound;

(d) No Consent is required to be obtained by it from, and no notice or filing is

required to be given by it to or made by it with, any Person (including any Governmental

Authority) in connection with the execution, delivery and performance by it of this First

Amendment or the consummation of the transactions contemplated hereby; and

(e) Except as amended hereby, the Lease Agreement remains in full force and

effect.

Section 4. Continuing Effect . Except as expressly provided in this Amendment, the

provisions of the Lease Agreement shall remain in full force and effect, and the Parties hereby

reserve all rights and remedies under the Lease Agreement and at law and in equity. This

Amendment shall not constitute an amendment or waiver of or consent of any provision of the

Lease Agreement except as expressly stated herein and shall not be construed as an amendment,

waiver or consent to any action on the part of the Lessee that would require an amendment,

waiver or consent of the Authority except as expressly stated herein.

Section 5. References to Agreement . All references to the Lease Agreement from

and after the execution and delivery of this Amendment, shall be deemed a reference to the

Lease Agreement as amended hereby, unless the context expressly requires otherwise.

Section 6. Governing Law . This Amendment shall be governed by the laws of the

Commonwealth of Puerto Rico, without regard to the choice of law provisions thereof, except

that the provisions of Section 19.4 of the Lease Agreement, and any arbitration conducted

thereunder, shall be governed exclusively by the Federal Arbitration Act, Article 9 §§1-16

United States Code, to the exclusion of any State, Commonwealth or Municipal Law or

Arbitration.

Section 7. Incorporation by Reference . Articles 19 and 20 of the Lease Agreement

are hereby incorporated herein mutatis mutuandis

.

Section 8. Counterparts . This Amendment may be executed in any number of

counterparts, each of which when so executed and delivered shall be an original, but all of which

shall constitute one and the same instrument.

[ Signature Page Follows ]

# First Amendment to Lease Agreement dated as of July 24, 2012 by and between The Puerto Rico

Ports Authority and Aerostar Airport Holdings LLC– Signature Page IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be

duly executed and delivered as of the day and year first above written.

PUERTO RICO PORTS AUTHORITY

By: ________________________

Name:

Title:

AEROSTAR AIRPORT HOLDINGS, LLC

By: ________________________

Name:

Title:

By: ________________________

Name:

Title:

Acknowledged and agreed, solely for purposes of Section 4(a) of the GDB Guaranty:

GOVERNMENT DEVELOPMENT BANK FOR PUERTO RICO

By: ________________________

Name:

Title:

# SCHEDULE 1

LEGAL DESCRIPTION OF THE LMM AIRPORT FACILITY

The real property which comprises the LMM Airport Facility is recorded in the Registry

of Property of Puerto Rico, First Section of Carolina, at page ( folio ) 10 of volume ( tomo ) 564 of

Carolina, property number 16,374, and is described in the Spanish language as follows:

“RUSTICA: Predio de terreno situado en los Barrios Cangrejo Arriba y

Hato Cangrejos del Municipio de Carolina, en la que se encuentran los edificios,

estructuras, instalaciones y zonas de amortiguamiento que componen el

Aeropuerto Internacional Luis Muñoz Marín, con una cabida de cinco millones

ochocientos veintidós mil seiscientos setenta y seis punto cuatro uno nueve cinco

(5,822,676.4195) metros cuadrados (equivalentes a mil cuatrocientos ochenta y

uno punto cuatro cuatro siete ocho (1,481.4478) cuerdas), compuesto de las

siguientes tres porciones de terreno:

(i) la primera y principal porción de terreno identificada en el plano de

inscripción como “Parcel A” y “Parcel A1”, con una cabida de cinco millones

cuatrocientos sesenta y cinco mil quinientos treinta punto ocho cinco seis uno

(5,465,530.8561) metros cuadrados (equivalentes a mil trescientos noventa punto

cinco ocho cero tres (1,390.5803) cuerdas), cuya cabida incluye la parcela

identificada en el plano de inscripción como “Parcel A1” con una cabida de

ochenta y siete mil quinientos sesenta y dos punto uno dos siete tres

(87,562.1273) metros cuadrados (equivalentes a veintidós punto dos siete ocho

dos (22.2782) cuerdas), con una forma irregular, en la que se encuentran los

edificios, estructuras e instalaciones del Aeropuerto Internacional Luis Muñoz

Marín, colindando por el NORTE, con la Avenida Boca de Cangrejos; por el

SUR, con la Avenida Ramón Baldorioty de Castro (PR-26); por el ESTE, con la

Laguna Torrecilla, terrenos ganados al mar de dominio público y el Canal Suárez;

y por el OESTE, con la Avenida Ramón Baldorioty de Castro (PR-26);

(ii) la segunda porción de terreno identificada en el plano de inscripción

como “Parcel B”, con una cabida de doscientos setenta y cuatro mil quinientos

noventa y uno punto cero uno cero nueve (274,591.0109) metros cuadrados

(equivalentes a sesenta y nueve punto ocho seis tres cinco (69.8635) cuerdas), con

una forma irregular, la cual está localizada al lado OESTE de la primera porción

descrita arriba y sirve como una zona de amortiguamiento para el Aeropuerto

Internacional Luis Muñoz Marín, colindando por el NORTE Y ESTE, con la

Avenida Ramón Baldorioty de Castro (PR-26); y por el SUR y OESTE, con la

Laguna San José; y

(iii) la tercera porción de terreno identificada en el plano de inscripción

como “Parcel D”, con una cabida de ochenta y dos mil quinientos cincuenta y

cuatro punto cinco cinco dos cinco (82,554.5525) metros cuadrados (equivalentes

a veintiuno punto cero cero cuatro (21.004) cuerdas), con una forma de triángulo,

la cual está localizada al lado ESTE de la primera porción descrita arriba y sirve

como una zona de amortiguamiento para el Aeropuerto Internacional Luis Muñoz

Marín, colindando por el NORTE, con el Canal Suárez; por el SUR, con la

# 705215215



# Urbanización Vista Mar; por el ESTE, con la Urbanización Villa Venecia y la

Urbanización Vista Mar; y por el OESTE, con el Canal Suárez.”

The portion of the LMM Airport Facility which is demised pursuant to this Agreement

and subject to the Lease, is graphically shown as the area included within the yellow boundaries

(but excluding the areas shaded in blue and the areas identified as “CAF 2” and “NOAA”) in the

plan prepared by URS Caribe, LLP in June 2012 entitled “LMMA Obligation Maps” and

attached hereto as Schedule I-A , and which demised portion is described as follows:

“Parcel of land with an irregular shape located within the real property

which comprises the Luis Muñoz Marín International Airport (property number

16,374 of Carolina), with a surface area equal to five million ninety thousand one

hundred eight point six one nine five (5,090,108.6195) square meters, equivalent to

one thousand two hundred ninety-five point zero six (1,295.06) cuerdas , and which

parcel is graphically shown as the area included within the yellow boundaries in the

plan prepared by URS Caribe, LLP in June 2012 entitled “LMMA Obligation

Maps” and attached as Schedule I-A to the Luis Muñoz Marín International Airport

Lease Agreement dated as of July 24, 2012, as amended on February 25, 2013, by

and between the Puerto Rico Ports Authority and Aerostar Airport Holdings, LLC.

Said parcel of land does not include the areas shaded in blue in the aforementioned

plan and/or which are identified therein as “Muñoz Airbase National Guard,” “CAF

1,” “CAF 2,” “CAF 3,” “Vortac,” “AEE Substation,” “AEE Substation,” “FAA,”

“Hotel,” “FAA Control Tower,” “ASR,” “NOAA,” and the roads shaded in blue

and located at the west boundary of the Luis Muñoz Marín International Airport.”

# EXHIBIT I TO SUPPLEMENT

Response to FAA Review of Regional Airports Plan

See Attached

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Maritime

Revenues $ 947 $ 4,874

Expenses (681) (3,581)

Net Revenues 266 1,293

LMM

Revenues 74 237

Expenses (65) (188)

Net Revenues 10 49

Regional Airports

Revenues 119 848

Expenses (213) (1,115)

Net Revenues (95) (267)

Other Revenues

Revenue Share 42 604

Regional Support Fund 12 12

Other 47 183

Net Cash Flow before Debt Service 282 1,873

Total Debt Service (281) (1,021)

Net Surplus After Debt Service $ 2 $ 853



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Maritime

Revenues $ 947 $ 4,874

Expenses (720) (3,833)

Net Revenues 227 1,041

LMM

Revenues 74 237

Expenses (67) (191)

Net Revenues 7 46

Regional Airports

Revenues 119 848

Expenses (224) (1,179)

Net Revenues (106) (331)

Other Revenues

Revenue Share 42 604

Regional Support Fund 12 12

Other 52 188

Net Cash Flow before Debt Service 234 1,561

Total Debt Service (281) (1,021)

Net Surplus After Debt Service $ (46) $ 540



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# EXHIBIT J TO SUPPLEMENT

Capacity Enhancement Plan

See Attached

# [NEWYORK 2683607_2]



# sf-3249980 

# TRANSITION PLAN

This document (the “ Transition Plan ”) sets forth a transition plan to ensure the orderly

transition of control, custody, operation, management, maintenance and rehabilitation of the Luis

Muñoz Marín International Airport located in the Municipality of Carolina (the “ Airport ”) in

connection with the Closing of the transactions contemplated by the Lease Agreement between

the Puerto Rico Ports Authority the (“ PRPA ”) and Aerostar Airport Holdings, LLC (the

“ Lessee ”).

A. The Puerto Rico Ports Authority (“ PRPA ”) expects to receive approval from the

Federal Aviation Administration (“ FAA ”) to transfer control of the Airport to a private party

pursuant to the Pilot Program on Private Ownership of Airports, 49 U.S.C. § 47134 (the “ Pilot

Program ”). Pursuant to the conditions of that Pilot Program, the PRPA has selected the Lessee

to manage and operate the Airport.

B. The PRPA and the Lessee entered into a Lease Agreement dated July 24, 2012

(the “ Lease Agreement ”), pursuant to which the PRPA granted the Lessee the right to operate,

manage, maintain, improve, enhance, develop and rehabilitate the LMM Airport Facility.

C. In connection with the Closing of the transactions contemplated by the Lease

Agreement, the Lessee and the PRPA will enter into Use Agreements with each Signatory

Airline, dated as of the date of the Closing Date (the “ Use Agreements ”).

D. The transactions contemplated by the Lease Agreement and the Use Agreements

involve the separation, redefinition and establishment of various commercial and regulatory

relationships of varying levels of complexity. The parties agree that this Transition Plan serves

the best interests of the parties hereto by creating a framework to document and implement the

transition contemplated by the Lease Agreement and the Use Agreements in an orderly and

transparent manner:

" in accordance with Law; and

" consistent with the rights and obligations under the Lease Agreement and the Use

Agreements.

E. This Transition Plan is intended to provide a framework to assure an orderly

transition of control from the PRPA to the Lessee without disruptions in services for airlines

operating at the Airport, other Airport tenants, users, and customers, and provide the PRPA and

the Signatory Airlines with a sound understanding of how obligations under the Lease

Agreement and Use Agreements will be effectively managed. In accordance with the Transition

Plan, the parties have developed agreed-upon steps and procedures for:

(a) implementing certain aspects of the Lease Agreement and Use Agreements;

(b) providing additional information related to the parties’ respective obligations

under the Lease Agreement and Use Agreements; and

# 2

(c) facilitating activities with third parties, including the Federal Aviation

Administration (“ FAA ”), and the Transportation Security Administration (“ TSA ”), as part of an

orderly transition of the management and operation of the Airport by the Lessee.

F. This Transition Plan is based on, and to a large extent memorializes, the

collaborative work of the PRPA, the Lessee, and the Signatory Airlines, and is intended to serve

as a guide and reference document for a period of twelve months after the Closing Date as

defined in the Lease (the “ Closing Date ”) but, except as expressly stated herein, is not intended

to supersede the rights and obligations of the parties to the Lease Agreement and the Use

Agreements. This time limitation shall not apply to the CEP, which as provided for in the Use

Agreement shall continue to be in effect for the duration of the Use Agreement.

G. In addition, consistent with the terms and conditions of the Lease Agreement and

the Use Agreement, the approval by the Signatory Airlines of this Transition Plan shall be

deemed to be the approval of the Capacity Enhancement Plan, which is attached hereto as

Exhibit E, including the Revised Schedule F (attached as Exhibit B to the Capacity Enhancement

Plan), described in Section 8.13 of the Use Agreement.

ARTICLE 1

DEFINITIONS

Section 1.01 Definitions . All capitalized terms not defined in this Transition Plan have

the meanings ascribed to them in the Use Agreement or the Lease Agreement, as the case may

be.

(a) “ Net PFC Amount ” means the total principal amount of all PFCs that are

collected by an Airline or its Delegates, reduced by all amounts that such Airline is permitted to

retain pursuant to Section 158.53(a) of the PFC Regulations.

(b) “ Unremitted PFC Funds ” means PFCs collected by an Airline as of the Closing

Date, but not yet remitted to the PRPA.

Section 1.02 Duties of Ongoing Cooperation and Collaboration . The parties

recognize that the Lease Agreement and the Use Agreements may involve a number of

additional issues that are not specifically addressed in this Transition Plan. Accordingly, the

parties will cooperate and use commercially reasonable efforts to:

(a) Provide for the efficient and timely consummation of the transactions

contemplated by the Lease Agreement and the Use Agreements, including the action items

described in this Transition Plan.

(b) Address and resolve in a cooperative manner any matters relating to this

Transition Plan.

(c) Interpret this Transition Plan in a manner consistent with the intent and spirit of

the Lease Agreement, the Use Agreements and applicable Law.

# 3 ARTICLE 2

TRANSFER OF FUNDS

Section 2.01 Unremitted PFC Funds . From and after the Closing Date, each Airline

will remit the Net PFC Amount of all Unremitted PFC Funds by the time and as otherwise

required by Federal PFC regulations to an account (the “Regulated Funds Account”) specified

by the Lessee no later than 10 Business Days prior to such date. Prior to the Closing Date, each

Airline will remit the Net PFC Amount to the PRPA as required by Federal PFC regulations.

ARTICLE 3

INFORMATION REQUIREMENTS

Section 3.01 Information to be Provided by Airlines on the Closing Date . Within

30 days after the Closing Date, each Airline shall provide the Lessee:

(a) the number of the total arriving passengers of such Airline for the fiscal year of

the Authority ended on June 30, 2011;

(b) a copy of any posters, displays and other materials that advertise the services

offered by such Airline to the traveling public in such Airline’s Exclusive Use Space; and

(c) a statement indicating:

(i) whether such Airline is providing food service in passenger clubs

sponsored by such Airline or such Airline has contracted with a third party to provide food

services (and, as the case may be, identifying such third party);

(ii) whether such Airline is providing ground handling services for itself and

and/or its Affiliates and Alliance Partners or such Airline has contracted with a third party to

provide ground handling services (and, as the case may be, identifying such third party).

If any Airline is providing food services as contemplated by clause (i) above, such Airline shall

enter into arrangements complying with Section 3.1(m) of the Use Agreement within 30 days of

the Closing Date (provided that the concession fee contemplated by Section 3.1(m) shall apply

from and after the Closing Date). If any Airline is providing ground-handling services to any

Airline other than itself or an Affiliate or an Alliance Partner as contemplated by clause (ii)

above, such Airline shall enter into arrangements complying with Section 3.7(a) of the Use

Agreement within 30 days of the Closing Date (provided that the concession fee contemplated by

Section 3.7(a) shall apply from and after the Closing Date).

Section 3.02 Initial Traffic Information

.

(a) No later than 30 days after the Closing Date, each Airline shall provide the Lessee

with the information required pursuant to Section 5.1(a) of the Use Agreements for the First

Partial Term Year.

# 4

(b) Until the date on which all Airlines have provided the Lessee with the information

required by Section 5.1(a), the Lessee shall invoice the Airlines based on rates set forth in the

Statement of Estimated Contribution prepared using the information provided for the year ending

December 31, 2012. Within fifteen (15) days of the date on which all Airlines have provided the

Lessee with the information required by Section 5.1(a), the Lessee shall prepare a new

Statement of Estimated Contribution, and from and after such date, the rates set forth in the new

Statement Estimates Contribution shall apply for the First Partial Term Year.

Section 3.03 Monthly Flight Schedule Report to be Provided by Airlines . The form

of the monthly flight schedule report to be provided by the Airlines to the Lessee pursuant to

Section 5.1(b) of the Use Agreements is attached hereto as Exhibit A.

ARTICLE 4

TRANSITION COMMUNICATIONS STRUCTURE

Section 4.01 Lessee and Airline Communications Prior to the Closing Date . Prior

to the Closing Date, the Lessee will provide updates to the Airlines on a periodic basis, but no

less frequently than bi-weekly, which updates shall include the following information:

(a) Airport Security Plan . The Lessee is required to produce and obtain approval of

the Airport Security Plan that conforms to TSA requirements under 49 C.F.R. § 1542. The Lessee

will provide periodic updates on its development of its Security Plan as requested by the

Executive Committee.

(b) Airport Operating Certificate . Pursuant to the Lease, the Lessee is required to

obtain an Airport Operating Certificate in accordance with 14 C.F.R. Part 139. The Lessee will

provide the Executive Committee with periodic updates on the status of its application to FAA

for the Airport Operating Certificate.

(c) Emergency Protocols . Prior to the Closing Date, the Lessee will inform the

Airlines of all emergency communications contact information and any changes in emergency

protocols.

Section 4.02 Executive Committee

.

(a) The Lessee will form and operate an Executive Committee as contemplated by

Section 3.12(b) of the Use Agreement. The Executive Committee will oversee execution of the

Transition Plan to facilitate communications and problem solving. The designated representative

to the Executive Committee for the Lessee shall be Mr. Augustin Arellano Rodriguez, Chief

Executive Officer of the Lessee. The Lessee will conduct meetings of the Executive Committee

on a periodic basis as agreed by the Committee, but no less frequently than quarterly.

(b) During the twelve months after the Closing Date (the “Transition Period ”), the

Executive Committee will meet no less frequently than monthly. At each monthly meeting, the

Lessee will discuss the following information with the Committee members in connection with

the Lessee’s activities at the Airport and as it relates to the Transition Plan:

# 5 (i) Airport functions being transitioned and the Lessee’s ultimate plan for

each function;

(ii) New activities and programs that the Lessee is implementing to properly

transition Airport functions;

(iii) A description of assessment techniques that the Lessee will use to measure

the success of each transition component;

(iv) A progress report on the status of transition activities being conducted,

noting any material deviations from the Lessee’s projections for that activity;

(v) A description of actions required to coordinate any transition activity with

authorities or other third parties;

(vi) A description of any policies or other legal actions necessary to transition

any activity;

(vii) A report on complaints received or issues encountered during the

transition process and the Lessee’s response to those matters; and

(viii) Other actions that the Lessee will take to smooth the transition, ensure

proper continuous operations, and facilitate communications.

Section 4.03 Other Joint Committees . The following Committees will be formed by

the Lessee and the Signatory Airlines to provide a communications framework to assure an

orderly transition of control from the PRPA to the Lessee without disruptions in services for

airlines operating at the Airport, other Airport tenants, users, and customers, and provide the

PRPA and the Signatory Airlines with a clear understanding of how obligations under the Lease

Agreement and Use Agreement will be effectively managed. These Committees are intended to

remain active throughout the term of the Lease as airport activities dictate:

(a) Airport Affairs Committee

(i) Members: All Signatory Airlines (who will designate a chairperson),

Lessee represented by the Airport Director, General Counsel, Director of Finance and other staff

as required

(ii) Responsibilities:

(A) Decisions on airport development plans and airport MII requests

(B) Review of estimated Total Annual Contribution and other rates and

charges matters

(iii) Periodicity: Meets semi-annually unless required more frequently due to

ongoing airport developments. Meets jointly with the Technical Committee to review annual

Lessee capital budget.

# 6 (iv) Status: The Airlines and the Lessee acknowledge that this Committee is

currently active, as it has been a key component of the preparations for the transition.

(b) Airline Technical Committee

(i) Members: All Signatory Airlines (who will designate a chairperson).

Airport represented by Director of Planning & Development, Director of Operations and

appropriate project staff

(ii) Responsibilities:

(A) Consultation on elaborating project definition for the Capacity

Enhancement Plan in accordance therewith.

(B) Consultation on airline facilities and operational requirements and

standards related to airport capital projects on an ongoing basis

(C) Consultation on airport construction phasing and participation in

design and construction workshops

(D) Participate in commissioning activities

(iii) Periodicity: Meets annually to review Lessee capital budget (joint meeting

with Airport Affairs Committee). Expected to meet monthly during the implementation of the

Capacity Enhancement Plan, and may meet at other times based on airport development needs.

(iv) Status: This Committee is currently active and has been a key component

of the Capacity Enhancement Plan development.

(c) Airport Operations Committee;

(i) Members: Airline station managers, Airport represented by Director of

Operations, additional Operations Department staff and construction management staff (during

phasing and construction activities). Also includes representatives of airlines’ ground handling

firms.

(ii) Responsibilities:

(A) Consultation for ongoing airport operations and customer service

including landside, terminal, airside and security

(B) Consultation on maintenance of safe, secure operations during

airport development activities

(C) Coordination of safe, efficient airline operations within the airport

operating environment including landside, terminal and airfield.

# 7 (D) Representation in airport stakeholder meetings regarding airport

operations and customer service issues such as coordination with TSA, USDA,

CBP and local law enforcement agencies.

(E) Participation in the CEP consultation process through design and

implementation with a focus on maintaining safe, secure airline operations during

the phasing and construction activities associated with the CEP Agreement.

(iii) Periodicity: This Committee will meet monthly or as required by the

Committee.

(iv) Status: This Committee will be formed within 30 days of the Closing Date

from the existing Station Managers Committee currently working locally with the PRPA.

Section 4.04 Key Aerostar Personnel; Aerostar Organizational Structure . An

organizational diagram for Aerostar identifying the key personnel responsible for Airport

operations is attached hereto as Exhibit B.

ARTICLE 5

BILLING AND PAYMENT

Section 5.01 Airline Annual Contribution. As provided in Section 5.2 of the Use

Agreements, the Lessee will provide each Airline operating at SJU with an initial estimate of the

following items for the First Partial Term Year in accordance with Schedule E of the Use

Agreement:

(i) the prorated Total Annual Contribution for that year;

(ii) such Airline’s Annual Contribution for the First Partial Term Year,

including its Landing Contribution, Parking Fees, Exclusive Use Rent, Domestic Terminal

Contribution, International Terminal Contribution and Local Terminal Contribution for the First

Partial Term Year;

(iii) the applicable rates for the First Partial Term Year, including the Landing

Rate, Parking Rates, Domestic Terminal Rate, International Terminal Rate and Local Terminal

Rate for the First Partial Term Year;

(iv) the percentages used to compute the Total Domestic Terminal

Contribution, Total International Terminal Contribution and Total Local Terminal Contribution,

as adjusted in accordance with Section 4.6(e) of the Use Agreements; and

(v) the information required by Section 5.10(f) of the Use Agreements.

As provided in the Use Agreement, the estimate will be pro-rated to accommodate the

shortened calendar year due to the Closing Date.

# 8

Section 5.02 Pro-forma Lessee Invoice with Banking Information . Attached to this

Transition Plan as Exhibit C is a pro-forma invoice containing all Lessee banking information

for the purpose of facilitating the payments from the airlines to the Lessee. The airlines will

establish Lessee in their accounts payable system as a vendor prior to the Closing Date.

Section 5.03 Miscellaneous Charges . For the First Partial Term Year the following

miscellaneous charges will be in effect in accordance with Section 5.10 of the Use Agreement:

(a) Airline Employee Parking . The cost for employee parking at the Airport for the

First Partial Term Year will be $25 per month per employee. The Airlines agree and

acknowledge that no shuttle or similar transportation service between such parking and the

Airport is required by the Airlines in connection with the current employee parking locations,

and that none will be provided by the Airport; any such transportation services will be the

responsibility of the Airlines.

(b) Employee Security Badging . The Lessee will require new security badging

following the Closing Date as part of the transition of the Airport Security Plan (ASP). The cost

for new employee security badging will be $25 for existing employees at the time of the new

badging and $50 for any new employees after the commencement of the new badging

procedures.

ARTICLE 6

CAPITAL PROJECTS

Section 6.01 Five-Year Airport Capital Improvement Plan (ACIP) . The initial fiveyear ACIP is attached as Exhibit D. The five-year ACIP is prepared solely for planning

purposes as part of the Lessee’s obligations to the FAA for the Airport Improvement Program.

The ACIP contains possible airport capital projects and sources of funds for the current fiveyear period. All parties acknowledge that nothing contained in the ACIP obligates the Lessee to

commence or complete any capital project or to obtain or use any sources of funding described

in the ACIP. Any capital projects within the ACIP requiring airline MII approval have been

noted accordingly.

Section 6.02 Capacity Enhancement Plan (CEP) . The Capacity Enhancement Plan is

attached to this Transition Plan as Exhibit E. The Capacity Enhancement Plan constitutes the

Plan for Terminal Reconfiguration as described in Section 8.13 of the Use Agreement.

Section 6.03 Initial Capital Projects . The commencement and completion dates for

each Initial Capital Project is attached to this Transition Plan as Exhibit F. A form of the

quarterly construction progress report contemplated by Section 6.1(b) of the Use Agreements is

attached to this Transition Plan as Exhibit G.

Section 6.04 Annual Lessee Capital Budget Planning . Within sixty (60) days of the

Closing Date, the Lessee will present its initial annual capital budget to the airlines in

accordance with Section 5.2 of the Use Agreement. The capital budget will identify any new

potential or actual Government-Mandated Capital Project or Government-Mandated Operating

Expense along with intended sources of funding.

# 9

Section 6.05 Airline Project Studies . The Airlines acknowledge and agree that (a)

any work required to be conducted in connection with the Airline Project Studies contemplated

by Section 6.3(e) of the Use Agreements has been included in (i) the Capacity Enhancement

Plan, which provides for a new in-line baggage system with no capital contribution from the

Airlines, and (ii) the Airline Capital Improvement Contracts entered into by the PRPA with

JetBlue, US Airways and Delta, which provide for the installation of new jet bridges at Gates

37, 38, 39, 40 and 41 in Terminal B with no capital contribution from the Airlines, as the same

have been amended by two letter agreements dated February 25, 2013 among the PRPA,

Aerostar and each of US Airways and Delta and (b) no further consultation, agreement or action

shall be required by the Lessee or the Airlines in respect of the Airline Project Studies.

# 1

[NEWYORK 2683607_2]



# sf-3249980 

# EXHIBIT E TO TRANSITION PLAN

CAPACITY ENHANCEMENT PLAN

This document sets forth a “Plan for the Reconfiguration of Terminal Space,” proposed

by Aerostar Airport Holdings, LLC, a limited liability company organized under the laws of the

Commonwealth of Puerto Rico (the “Lessee ”) for the reconfiguration and enhancement of the

Terminals at the Airport (the “Plan ”). This Plan shall be governed in all respects by the

provisions of the Use Agreement. This time limitation shall not apply to the CEP, which as

provided for in the Use Agreement shall continue to be in effect for the duration of the Use

Agreement.

ARTICLE I

DEFINITIONS

1.1 Defined Terms

.

(a) Capitalized terms used but not otherwise defined herein shall have the

meanings assigned to such terms in the Use Agreement, as it may be amended from time to time

in accordance with the terms thereof.

(b) The following capitalized terms shall have the meanings set forth below:

“Adjustment Effective Date ” means the First Space Adjustment Effective Date, the

Second Space Adjustment Effective Date or the Third Space Adjustment Effective Date, as the

case may be.

“CEP Background Information ” shall mean the written presentations, including drawings

and schematics, attached hereto as Exhibits C and D. 1



# “Commencement Date ” means the Phase 2 Commencement Date, the Phase 3

Commencement Date or the Final Configuration Date, as the case may be.

“Completion Date ” means the Phase 1 Completion Date, the Phase 2 Completion Date or

the Phase 3 Completion Date, as the case may be.

“Days ” means calendar days.

“Final Configuration Date ” means the date on which the Lessee notifies the Airlines that

the Plan has been substantially completed, as determined in accordance with Section 2.1(d)(ii)

.

“ Phase 1 Completion Date ” means the date on which the Lessee notifies the Airlines that

Phase 1 has been completed in accordance with the Plan (other than the actions described in

Sections 2.1(a)(i)(J) through 2.1(a)(i)(L), which shall be completed prior to the Final

1 

# Note to Draft : Aerostar expects to attach Airline Presentation 3 and 4 as Exhibits C and D.

# 2

Configuration Date), which date shall not be earlier than the date on which the steps described in

Section 2.1(a)(i) are substantially completed such that each Signatory Airline required to move to

different Common Use Assigned Gates and/or different Exclusive Use Space on the Phase 2

Commencement Date will be able to conduct normal Airline operations in a manner that is

substantially similar to that conducted in the prior gates and space prior to the relocation.

“Phase 2 Commencement Date ” means the date on which Phase 2 shall commence, as

determined in accordance with Section 2.1(b)(ii)

.

“Phase 2 Completion Date ” means the date on which the Lessee notifies the Airlines that

Phase 2 has been completed in accordance with the Plan, which date shall not be earlier than the

date on which the steps described in Section 2.1(b)(i) are substantially completed such that each

Signatory Airline required to move to different Common Use Assigned Gates and/or different

Exclusive Use Space on the Phase 3 Commencement Date will be able to conduct normal Airline

operations in a manner that is substantially similar to that conducted in the prior gates and space

prior to the relocation.

“Phase 3 Commencement Date ” means the date on which Phase 3 shall commence, as

determined in accordance with Section 2.1(c)(ii)

.

“Phase 3 Completion Date ” means the date on which the Lessee notifies the Airlines that

Phase 3 has been completed in accordance with the Plan, which date shall not be earlier than the

date on which the steps described in Section 2.1(c)(i) are substantially completed such that each

Signatory Airline required to move to different Common Use Assigned Gates and/or different

Exclusive Use Space on the Final Configuration Date will be able to conduct normal Airline

operations in a manner that is substantially similar to that conducted in the prior gates and space

prior to the relocation.

“Schedule F ” means Schedule F to the Use Agreement.

“Space Adjustment ” shall mean the Phase 1 Space Adjustment, the Phase 2 Space

Adjustment or the Phase 3 Space Adjustment, as the case may be.

1.2 Interpretation; Certain Definitions. The principles of interpretation set forth in

Section 1.2 of the Use Agreement shall be incorporated herein mutatis mutuandis.

ARTICLE II

CAPACITY ENHANCEMENT PLAN

2.1 The Plan for Reconfiguration of Terminal Space . The Parties agree that the

Plan shall consist of three separate phases:

(a) Phase 1

(i) The following actions described in Schedule 1 hereto shall be

taken by the Lessee in connection with Phase 1:

# 3 (A) Relocation of the USDA inspection area from Terminal B to

Terminal D;

(B) Demo and reconfigure ticketing lobby and ATO space in

Terminal D;

(C) Lower-level airline operations preparations in Concourse D;

(D) Build-out of a new “customs” holdroom in Concourse D;

(E) Preparations for renovations to the holdrooms for Gates 12

through 19;

(F) Refurbishment and/or replacement of the passenger loading

bridges (“Jet bridges ”) for Gates 5, 6, 12, 14, 15 and 16;

(G) Preparation of the vacant check-in areas in Terminal A for

commuter relocation;

(H) Preparation of Gates A1 and A2 for commuter operations,

including provision for vertical circulation between Gates A1 and A2 and the

apron , such that Gates A-1 and A2 can continue to be used simultaneously with

jet aircraft operations;

(I) Expansion of the security checkpoint in Terminal A;

(J) Modifications to the Terminal A lobby to include relocation(s)

and/or removal of the vertical circulation;

(K) Improvements to the Terminal A roadways; and

(L) Interim accommodations for more Terminal A concessions.

(ii) The Lessee shall provide written notice to each Airline of the

commencement of construction works for Phase 1.

(iii) During Phase 1, the Common Use Assigned Gate locations for

each Airline shall remain as set forth in Schedule F and Schedule G attached to the Use

Agreement as such schedules exist on the Closing Date, subject to adjustment in

accordance with Schedule F (such allocation of Common Use Assigned Gates, as so

modified, the “Phase 1 Common Use Assigned Gates ”).

(iv) During Phase 1, the Exclusive Use Space for each Airline shall

remain as set forth in Schedule F and Schedule G attached to the Use Agreements as such

schedules exist on the Closing Date (the “Use Agreement Space Schedules ”), subject to

adjustment in accordance with clause (v) below and/or Schedule F (such allocation of

Exclusive Use Space, as so modified, the “Phase 1 Exclusive Use Space ”).

# 4 (v) On or before the later of (x) March 31, 2013 and (y) the date that is

75 days after the Closing, each Signatory Airline shall have the right to request to the

Lessee in writing a reduction or expansion in its Exclusive Use Space and the Lessee

shall be obligated to accommodate such reduction or use commercially reasonable efforts

to accommodate such expansion, as the case may be (a “Phase 1 Space Adjustment ”),

which reduction or expansion shall take effect 120 days following the Closing (the “First

Space Adjustment Effective Date ”). Any Signatory Airline that requests a reduction in

its Exclusive Use Space shall, unless otherwise agreed by Lessee on a case-by-case basis

(which agreement shall not be unreasonably withheld in the case of premises that are

scheduled to be vacated by such Signatory Airline at the request of the Lessee on the

Phase 2 Commencement Date) comply with the final sentence of Section 3.3(b)(i) of the

Use Agreement with respect to the condition of the premises associated with such

reduction. For the avoidance of doubt, the rights of the Signatory Airlines are in addition

to and not in lieu of the rights of the Signatory Airlines under Section 3.3(b)(iii) or any

other applicable provision of the Use Agreement.

(b) Phase 2

(i) The following actions described in Schedule 2 will be taken by the

Lessee in connection with Phase 2:

(A) Movement of Airlines to the Common Use Assigned Gates

described in Section 2.1(b)(iii), including:

1) Commuters move gate holdroom/boarding to A1/A2

holdroom;

2) Commuters remain on aprons at Gates 32/34 and 31/33;

and

3) All Concourse B Gates move to Concourse D;

(B) Movement of Airlines to the ticket counters and other Exclusive

Use Space described in Section 2.1(b)(iv) and depicted in Schedule 2, including:

1) Commuters move ticket counters to Terminal A; and

2) All Terminal B ticketing and ATO moves to Terminal D;

(C) Construction of the FIS connector between the existing FIS and

Concourses A and B;

(D) Closure of the departures level of Terminals B and C for

construction;

(E) Use by the Airlines of the arrivals level for Terminals B and C for

baggage claim operations;

# 5 (F) Closure of Concourse B for construction;

(G) Use of a “secure-side shuttle” on the airside for the purposes of

connecting passengers among Concourses A, C and D during Phase 2

construction;

(H) Provision for vertical circulation between the “Customs” holdroom

and the apron; and

(I) Construction of an in-line Baggage Handling System (BHS) for

Terminals B and C.

(J) Activation of the existing, or installation of new, moving sidewalks

from Concourse C to D.

(ii) The Lessee’s initial estimate of the Phase 2 Commencement Date

is November 15, 2013; however, the Phase 2 Commencement Date shall be no earlier

than the Phase 1 Completion Date. If the Lessee’s estimate of the Phase 2

Commencement Date changes to a later date from the Lessee’s prior estimate as

previously notified to Airlines, the Lessee shall provide each Signatory Airline notice of

such change and the new estimated Phase 2 Commencement Date at least thirty ( 30 ) days

(or such shorter period as may be agreed by a Terminal MII) prior to such initially set and

new estimated dates.

(iii) The preliminary allocation of Common Use Assigned Gates for

each Airline during Phase 2 shall be as set forth on Schedule 2 hereto, as may have been

modified prior to the Phase 2 Commencement Date in accordance with Schedule F (such

allocation of Common Use Assigned Gates, as so modified, the “Phase 2 Common Use

Assigned Gates ”). The Phase 2 Common Use Assigned Gates shall be deemed to amend

and replace the Common Use Assigned Gates set forth in Schedule F and Schedule G to

the Use Agreement during Phase 2 (provided that the Phase 2 Common Use Assigned

Gates may continue to be modified during Phase 2 in accordance with Schedule F).

(iv) The preliminary allocation of Exclusive Use Space for all Airlines

during Phase 2 shall be as set forth on Schedule 2 hereto, as such schedule may have been

modified prior to the Phase 2 Commencement Date as a result of any prior Space

Adjustments in accordance with Section 2.2(c) , in accordance with Section 2.1(b)(v)

and/or Schedule F (such allocation of Exclusive Use Space, as so modified, the “Phase 2

Exclusive Use Space ”). The Phase 2 Exclusive Use Space shall be deemed to amend and

replace the Exclusive Use Space set forth in Schedule F and Schedule G to the Use

Agreement during Phase 2 (provided that the Phase 2 Exclusive Use Space may continue

to be modified during Phase 2 in accordance with Schedule F).

(v) Between ninety (90) and sixty (60) days prior to the Lessee’s

initial estimated Phase 2 Commencement Date, each Signatory Airline shall have the

right to request in writing a reduction or expansion in its Phase 2 Exclusive Use Space

and the Lessee shall be obligated to accommodate such reduction or use commercially

reasonable efforts to accommodate such or expansion (a “Phase 2 Space Adjustment ”),

# 6

which reduction or expansion shall take effect on the Phase 2 Commencement Date (the

“Second Space Adjustment Effective Date ”). Any Signatory Airline that requests a

reduction or expansion in its Exclusive Use Space shall comply with the final sentence of

Section 3.3(b)(i) of the Use Agreement with respect to such reduction, unless otherwise

agreed by Lessee on a case-by-case basis (which agreement shall not be unreasonably

withheld in the case of premises that are scheduled to be vacated by such Signatory

Airline at the request of the Lessee on the Phase 2 Commencement Date). For the

avoidance of doubt, the rights of the Signatory Airlines are in addition to and not in lieu

of the rights of the Signatory Airlines under Section 3.3(b)(iii) or any other applicable

provision of the Use Agreement.

(vi) No later than forty-five (45) days prior to the Lessee’s initial

estimated Phase 2 Commencement Date, the Lessee shall deliver to each Airline a revised

Schedule 2 which shall reflect any modifications made prior thereto (i) as a result of any

prior Space Adjustments in accordance with Section 2.2(c) , (ii) in accordance with

Section 2.1(b)(v) and/or (iii) in accordance with Schedule F (provided that after such

date, the Lessee may continue to make adjustments pursuant to Schedule F, and shall

promptly notify each Airline of any such adjustments).

(vii) No later than the Phase 2 Commencement Date, each Airline shall

commence operations in the Phase 2 Common Use Assigned Gates and Phase 2

Exclusive Use Space

. If an Airline has moved to a different location of gates, such

Airline shall have removed or reasonably determined to abandon any improvements

made by such Airline to its Phase 1 Common Use Assigned Gates and Phase 1 Exclusive

Use Space or have relocated such improvements to its Phase 2 Common Use Assigned

Gates and Phase 2 Exclusive Use Space, the reasonable and documented cost of the

relocation or removal (or, if Lessee so agrees, replacement) of improvements made to

Phase 1 Common Use Assigned Gates and Phase 1 Exclusive Space shall be borne by the

Lessee subject to Sections 2.2(d) and 3.1 below, provided that if the Airline decides to

relocate such improvements, the Lessee may at its sole discretion hire contractors or carry

out such relocation. For the avoidance of doubt, the Airline may reasonably determine to

abandon improvements at its current space and direct the Lessee to discard such

improvements at the Lessee’s sole cost and expense.

(c) Phase 3

(i) The following actions described in Schedule 3 hereto shall be

taken by the Lessee in connection with Phase 3:

(A) Movement of Airlines to the Common Use Assigned Gates

described in Section 2.1(c)(iii) , including:

1) Commuters move to permanent apron with FIS Access;

2) DL, UA, WN, NK and CM move to Concourse B gates;

and

3) B6 International operates from new FIS-capable gates in

# 7 Terminal A;

(B) Movement of Airlines to the ticket counters and other Exclusive

Use Space described in Section 2.1(c)(iv) and depicted in Schedule 3, including:

1) Commuters move to permanent ticket counters in B/C; and

2) Airlines move to permanent ticket counters in B/C;

(C) Use of the secure-side connection between Concourses A and B

and D; and

(D) Closure of Concourse C for construction.

(ii) The Lessee’s initial estimate of the Phase 3 Commencement Date

is November 15, 2014; however, the Phase 3 Commencement Date shall be no earlier

than the Phase 2 Completion Date. If the Lessee’s estimate of the Phase 3

Commencement Date changes to a later date from the Lessee’s prior estimate as

previously notified to Airlines, the Lessee shall provide each Signatory Airline notice of

such change and the new estimated Phase 3 Commencement Date at least thirty ( 30 ) days

(or such shorter period as may be agreed by a Terminal MII) prior to such initially set and

new estimated dates.

(iii) The preliminary allocation of Common Use Assigned Gates for

each Airline during Phase 3 shall be as set forth on Schedule 3 hereto, as modified prior

to the Phase 3 Commencement Date in accordance with Schedule F (such allocation of

Common Use Assigned Gates, as so modified, the “Phase 3 Common Use Assigned

Gates ”). The Phase 3 Common Use Assigned Gates shall be deemed to amend and

replace the Common Use Assigned Gates set forth in Schedule F and Schedule G to the

Use Agreement during Phase 3 (provided that the Phase 3 Common Use Assigned Gates

may continue to be modified during Phase 3 in accordance with Schedule F).

(iv) The preliminary allocation of Exclusive Use Space for all Airlines

during Phase 3 shall be as set forth on Schedule 3 hereto, as such schedule may have been

modified prior to the Phase 3 Commencement Date as a result of any prior Space

Adjustments in accordance with Section 2.2(c) , in accordance with Section 2.1(c)(v) or in

accordance with Schedule F (such allocation of Exclusive Use Space, as so modified, the

“Phase 3 Exclusive Use Space ”). The Phase 3 Exclusive Use Space shall be deemed to

amend and replace the Exclusive Use Space set forth in Schedule F and Schedule G to the

Use Agreement during Phase 3 (provided that the Phase 3 Exclusive Use Space may

continue to be modified during Phase 3 in accordance with Schedule F).

(v) Between ninety (90) and sixty (60) days prior to the Lessee’s

initial estimated Phase 3 Commencement Date, each Signatory Airline shall have the

right to request in writing a reduction or expansion in its Phase 3 Exclusive Use Space

and the Lessee shall be obligated to accommodate such reduction or use commercially

reasonable efforts to accommodate such expansion (a “Phase 3 Space Adjustment ”),

which reduction or expansion shall take effect on the Phase 3 Commencement Date (the

# 8

“Third Space Adjustment Effective Date ”). Any Signatory Airline that requests a

reduction in its Exclusive Use Space shall comply with the final sentence of Section

3.3(b)(i) of the Use Agreement with respect to such reduction, unless otherwise agreed by

Lessee on a case-by-case basis (which agreement shall not be unreasonably withheld in

the case of premises that are scheduled to be vacated by such Signatory Airline at the

request of the Lessee on the Phase 3 Commencement Date). For the avoidance of doubt,

the rights of the Signatory Airlines are in addition to and not in lieu of the rights of the

Signatory Airlines under Section 3.3(b)(iii) or any other applicable provision of the Use

Agreement.

(vi) No later than forty-five (45) days prior to the Lessee’s initial

estimated Phase 3 Commencement Date, the Lessee shall deliver to each Airline a revised

Schedule 3 which shall reflect any modifications made prior thereto (i) as a result of any

prior Space Adjustments in accordance with Section 2.2(c) , (ii) in accordance with

Section 2.1(c)(v) and/or (iii) in accordance with Schedule F ( provided that after such

date, the Lessee may continue to make adjustments in accordance with Schedule F, and

shall promptly notify each Airline of any such adjustments).

(vii) No later than the Phase 3 Commencement Date, each Airline shall

commence operations in the Phase 3 Common Use Assigned Gates and Phase 3

Exclusive Use Space

. If an Airline has moved to a different location of gates, such

Airline shall have removed or reasonably determined to abandon any improvements

made by such Airline to its Phase 2 Common Use Assigned Gates and Phase 2 Exclusive

Use Space or have relocated such improvements to its Phase 3 Common Use Assigned

Gates and Phase 3 Exclusive Use Space, the reasonable and documented cost of the

relocation or removal (or, if Lessee so agrees, replacement) of improvements made to

Phase 2 Common Use Assigned Gates and Phase 2 Exclusive Space shall be borne by the

Lessee subject to Sections 2.2(d) and 3.1 below, provided that if the Airline decides to

relocate such improvements, the Lessee may at its sole discretion hire contractors or carry

out such relocation. For the avoidance of doubt, the Airline may reasonably determine to

abandon improvements at its current space and direct the Lessee to discard such

improvements at the Lessee’s sole cost and expense.

(d) Final Configuration

(i) The following actions shall be taken be taken by the Lessee in

connection with the Final Configuration:

(A) Movement of Airlines to the Common Use Assigned Gates

described in Section 2.1(d)(iii) , including:

1) AA moves its gates to Concourse C; and

2) US moves its gates to Concourse C; and

(B) Movement of Airlines to the ticket counters and other Exclusive

Use Space described in Section 2.1(d)(iv) and depicted in Schedule 4, including:

# 9 1) AA moves its Admirals’ Club to Concourse C.

(ii) The Lessee’s initial estimate of the Final Configuration Date is

August 15, 2015; however, the Final Configuration Date shall be no earlier than the

Phase 3 Completion Date. If the Lessee’s estimate of the Final Configuration Date

changes to a later date from the Lessee’s prior estimate as previously notified to Airlines,

the Lessee shall provide each Signatory Airline notice of such change and the new

estimated Final Configuration Date at least thirty ( 30 ) days (or such shorter period as may

be agreed by a Terminal MII) prior to such initially set and new estimated dates.

(iii) On and after the Final Configuration Date, the Common Use

Assigned Gate locations for each Airline shall be as set forth on Schedule 4 hereto, as

such schedule may have been modified prior to the Final Configuration Date in

accordance with Schedule F (such allocation of Common Use Assigned Gates

, as so

modified, the “Final Configuration Common Use Assigned Gates ”). The Final

Configuration Common Use Assigned Gates shall be deemed to amend and replace the

Common Use Assigned Gate locations set forth in Schedule F and Schedule G to the Use

Agreement as of the Final Configuration Date.

(iv) On and after the Final Configuration Date, the Exclusive Use

Space for all Airlines shall be as set forth on Schedule 4 hereto, as such schedule may be

modified prior to the Final Configuration Date as a result of any prior Space Adjustments

in accordance with Section 2.2(c) , or in accordance with Schedule F (such allocation of

Exclusive Use Space, as so modified, the “Final Configuration Exclusive Use Space ”).

The Final Configuration Exclusive Use Space shall be deemed to amend and replace the

Exclusive Use Space set forth in Schedule F and Schedule G to the Use Agreement as of

the Final Configuration Date.

(v) No later than sixty (60) days prior to the Final Configuration

Completion Date, the Lessee shall deliver to each Airline a revised Schedule 4 which

shall reflect any modifications made prior thereto (i) as a result of any prior Space

Adjustments in accordance with Section 2.2(c) and/or (ii) in accordance with Schedule F

( provided that after such date, the Lessee may continue to make adjustments in

accordance with Schedule F, and shall promptly notify each Airline of any such

adjustments).

(vi) No later than the Final Configuration Date, each Airline shall

commence operations in the Final Configuration Common Use Assigned Gates and Final

Configuration Exclusive Use Space

. If an Airline has moved to a different location of

gates, such Airline shall have removed or reasonably determined to abandon any

improvements made by such Airline to its Phase 3 Common Use Assigned Gates and

Phase 3 Exclusive Use Space or have relocated such improvements to its Final

Configuration Common Use Assigned Gates and Final Configuration Exclusive Use

Space, the reasonable and documented cost of the relocation or removal (or, if Lessee so

agrees, replacement) of improvements made to Phase 3 Common Use Assigned Gates

and Phase 3 Exclusive Space shall be borne by the Lessee subject to Sections 2.2(d) and

3.1 below, provided that if the Airline decides to relocate such improvements, the Lessee

# 10

may at its sole discretion hire contractors or carry out such relocation. For the avoidance

of doubt, the Airline may reasonably determine to abandon improvements at its current

space and direct the Lessee to discard such improvements at the Lessee’s sole cost and

expense.

(vii) On and after the Final Configuration Date:

(A) Except for the areas described below in Sections 2.1(d)(vii)(B)3)

and (B)4) , Terminals D and E shall be closed

, provided that they shall remain

reserved for future capacity expansion at the sole discretion of the Lessee;

(B) The operational footprint of the Terminal will be no more than

1,500,000 square feet comprised of the following areas:

1) Terminal A: departure and arrivals levels and Concourse A

gates;

2) Terminal B/C: departure and arrivals levels and Concourses

B and C gates;

3) FIS Facility: immigration and customs level; and

4) Outbound Baggage Facility: ground level below customs

level; and

(C) Any further consolidation, relinquishment, reassignment,

designation and recapture by the Lessee of Common Use Assigned Gates and

Exclusive Use Space from the Common Use Assigned Gates and Exclusive Use

Space as set forth in Sections 2.1(d)(iii) and (iv) above shall only be effected as

set forth in Schedule F and the Use Agreements.

2.2 Plan Implementation Principles

.

(a) Generally . The Lessee shall consult and cooperate with the Airlines in

good faith in designing any necessary technical plans and in seeking any necessary approvals for

implementation of the Plan. At the request of any Airline, the Lessee shall make itself available

within a reasonable amount of time to meet with such Airline and any other Airline wishing to

meet with the Lessee to discuss the Plan and its implementation. At the request of an Airline, the

Lessee shall provide copies of the drawings and technical plans for the Plan as the same are

developed throughout the construction. The Airlines will use commercially reasonable efforts to

(i) support the implementation of the Plan, including seeking any necessary approvals for

implementation of the Plan and (ii) take such other reasonable actions as may be requested from

time to time by the Lessee in support of the Plan (provided that any such actions, to the extent

requested by the Lessee, shall be at the expense of the Lessee). The final decision with respect to

the implementation of any aspect of the Plan (except as expressly set forth herein) shall be

subject to the reasonable discretion of the Lessee, except as expressly set forth herein and

provided that such implementation does not result in a material change in the Plan as presented

in the CEP Background Information.

# 11 (b) Disruption . The Lessee shall use commercially reasonable efforts to

minimize any disruption to any operations of the Airlines during the implementation of the Plan.

Such commercially reasonable efforts shall include the type of actions taken at other Comparable

Public Airports to avoid disruption to Airline operations when such airports undertake projects

similar to the Plan.

(c) Space Reductions . If any Signatory Airline has requested a Space

Adjustment during a Phase, the Exclusive Use Space allocated to such Signatory Airline in the

corresponding schedule for the next phase shall be proportionally adjusted, such that the

percentage of Exclusive Use Space allocated to such Signatory Airline in the schedule is

approximately equal to the percentage of Exclusive Use Space allocated to such Signatory

Airline after such Space Adjustment. The Lessee shall, to the extent reasonably practicable,

apply such adjustments to Exclusive Use Space that is used for the same purposes as the

Exclusive Use Space adjusted in the Space Adjustment.

(d) Airline Improvements to Common Use Gates, Exclusive Use Space . Each

Airline agrees to take into account, when making improvements to its Common Use Assigned

Gates and to its Exclusive Use Space, the relocations, removals or abandonments that may be

required in connection with the Plan, and agrees to consult with the Lessee prior to making any

material improvements to Common Use Assigned Gates or Exclusive Use Space that may have

to be relocated, removed or abandoned or require reimbursement from the Lessee. The Lessee

shall bear the cost of relocation, removal or abandonment or reimbursement, or both, on a “like

for like” basis, corresponding to an approximately equivalent amount of Exclusive Use Space or

reduced Exclusive Use Space, and shall not be responsible for more than the costs for buildout of

an approximately equivalent amount of Exclusive Use Space granted to an airline pursuant to

Section 2.1(a)(v) , 2.1(b)(v) or 2.1(c)(v)

.

(e) Timing . The Lessee shall use commercially reasonable efforts to

accomplish the implementation of the Plan as expeditiously as is practicable. The Lessee will

consult with the Airlines with respect to any material delay in the anticipated Commencement

Dates as indicated herein and will notify the Airlines of any event that is reasonably likely to

result in such a material delay. Notwithstanding anything to the contrary in this Section 2.2 (e),

the Initial Capital Projects shall continue to be governed by Section 6.1 of the Use Agreement.

2.3 Reports . Until the Final Reconfiguration Date, the Lessee, at its sole cost and

expense, shall deliver to each Signatory Airline on a monthly basis a report detailing the status

of the implementation of the Plan (including the progress towards implementation and the

estimated Completion Date of each Phase) and any material changes to the Financial Plan. In

addition, the Lessee shall give notice to each Signatory Airline promptly upon the occurrence

of any Completion Date and if it appears likely that the Plan or the completion of any Phase

will be delayed in any material respect.

2.4 Contractors

. The final sentence of Section 6.3(h) of the Use Agreement shall

not be applicable to any contract for implementation of the Plan.

# 12

2.5 Abandonment of Plan

.

(a) If, at any time, the Lessee determines that based on unforeseen

circumstances it is unable to complete the Plan or any Phase or portion thereof or will be

suspending implementation of the Plan for a period of longer than 6 months, other than as a

result of a Force Majeure Event, the Lessee shall (i) notify the Airlines of the abandonment or

suspension of the Plan or such Phase or portion thereof and (ii) shall propose to the Airlines

that would be or have been relocated under the Plan a proposed plan to address such

abandonment or suspension (such notice and plan, an “Abandonment/Suspension Notice ”).

The Airlines shall cooperate in good faith with the Lessee in developing an acceptable plan in

connection with this Section 2.5 , which plan may be agreed by a Terminal MII. The costs and

expenses of relocating the Airlines (and any improvements made to Common Use Assigned

Gates or Exclusive Use Space), if any, in connection with this Section 2.5 shall be borne by the

Lessee in accordance with Section 3.1 . For the avoidance of doubt, the Lessee shall

nonetheless be obligated to complete the Initial Capital Projects in accordance with Section 6.1

of the Use Agreement.

(b) If (i) after 120 days from the delivery of an Abandonment/Suspension

Notice, the Lessee and the Signatory Airlines have not agreed (other than as a result of the

failure of the Airlines to cooperate in good faith) on a plan to address such abandonment as

contemplated in clause (a) above and (ii) a Terminal MII determines that the abandonment or

suspension of the Plan is materially and adversely disrupting the operations of the Signatory

Airlines at the Airport, then the Signatory Airlines participating in such Terminal MII shall

have the right to complete such restoration and repair projects as are reasonably necessary to

mitigate such disruptions to their operations, and all documented out-of-pocket costs and

expenses reasonably incurred by the Signatory Airlines in performing such projects shall be

reimbursed to the Airlines in accordance with the final sentence of Section 3.1

.

ARTICLE III

FUNDING AND EXPENSES

3.1 Costs and Expenses

. The costs and expenses of implementing the Plan shall be

borne solely by the Lessee. Notwithstanding anything to the contrary in the Use Agreement,

the Airlines shall not bear any costs relating to Government Mandated Capital Projects or

Government Mandated Operating Expense resulting from the Plan or the implementation of

LMM Terminal Construction Plan to the extent that such Government Mandated Capital

Project or Government Mandated Operating Expense arise from any applicable Law or airport

certification requirement that was in effect on the Closing Date

. In the event that the

implementation of the Plan requires the relocation of any improvement made by an Airline to

its Common Use Assigned Gates or Exclusive Use Space (other than as a result of a Space

Adjustment), the Lessee shall reimburse the Airline for the reasonable and documented costs of

such relocation or replacement, provided that in lieu thereof, the Airline may, at its sole

discretion, require the Lessee to (x) remove, at its own cost and expense, such improvement

and reimburse the Airline for the reasonable and documented cost of such improvement or (y)

# 13

relocate such improvement or make a new comparable improvement using its own staff and/or

equipment or staff and/or equipment contracted for by the Lessee for such purpose (subject to

any reasonable and customary insurance and indemnification requirements imposed by the

applicable Airline in accordance with its policies and practices at Comparable Public Airports).

Any costs and expenses for which an Airline seeks reimbursement from the Lessee shall be

submitted by the Airline to the Lessee, with supporting documentation, no later than sixty (60)

days immediately following a relocation or removal of an improvement. Lessee shall

reimburse the Airline for any amounts not subject to dispute no later than thirty (30) days after

the Airline’s reimbursement request has been submitted together with all supporting

documentation.

3.2 Government Funding Sources

.

Each Airline agrees to use commercially reasonable efforts to support the use of

any available federal funding (including without limitation AIP and TSA grants)

and the use of PFCs to fund costs and expenses incurred in connection with the

implementation of the Plan, including costs and expenses required to be

reimbursed by the Lessee pursuant to Section 3.1 provided that this provision

shall not obligate the Signatory Airlines with respect to federal funding and the

use of PFCs for any capital project not contemplated by the Plan, as to which

Section 6.3(b) of the Use Agreement shall continue to apply. For the avoidance

of doubt, the Airlines’ support required under this Section 3.2 shall not include

amending or revising Schedule F or the Use Agreement.

3.3 Financial Plan

. The indicative financial plan for the Plan as of the date hereof

is set forth in Exhibit A hereto. The Lessee reserves the right to modify the financial plan at its

sole discretion provided that such modifications do not require an increase to the Total Annual

Contribution. The Lessee represents and warrants that, as of the Closing Date, it will have

entered into a multiple-draw credit facility providing for loans for the purposes of capital

expenditures in an aggregate amount of at least US$50 million.

ARTICLE IV

ADJUSTMENTS TO STATEMENT OF ANNUAL CONTRIBUTIONS; EXCLUSIVE

USE SPACE

4.1 Adjustments Due to Space Adjustments . If any Signatory Airline has elected

to make a Space Adjustment and if such Space Adjustment is a reduction and the Exclusive

Use Space that is returned to Lessee by such Signatory Airline is not leased by another tenant

at the Airport, subject to Section 5.3 of the Use Agreement, the Statement of Estimated

Annual Contribution for each Airline shall be adjusted by the Lessee, effective on the Space

Adjustment Effective Date following such Adjustment so as to adjust the Domestic Terminal

Rate, the International Terminal Rate or the Local Terminal Rate, as appropriate under the

circumstances, in order to take into account the aggregate reduction or expansion in Total

Exclusive Use Rent, if any, and any corresponding increase or decrease in the Domestic

Terminal Contribution, International Terminal Contribution or Local Terminal Contribution, as

the case may be.

# 14

4.2 Adjustments Not Exclusive

. Any adjustment to the Statement of Estimated

Annual Contribution pursuant to Section 4.1 shall be in addition to any adjustment permitted

under the Use Agreement.

4.3 Notice and Effect

. The Lessee shall provide to each Airline notice of any

adjustment permitted pursuant to Section 4.1 and the effect thereof on the Monthly Payments at

least 30 days prior to the applicable Adjustment Effective Date. If requested by the Executive

Committee or any Signatory Airline, the Lessee shall make appropriate representatives

available to discuss the adjustment, the revised Statement of Estimated Annual Contribution

and the revised Monthly Payment. Upon the applicable Adjustment Effective Date, Airlines

shall make payments to the Lessee for the remainder of the year as provided in the Use

Agreement but in the amount of the revised Monthly Payment.

4.4 Adjustments to Exclusive Use Space Invoices

. If the amount of Exclusive

Use Space alloca t ed to an Airline is decreased or increased as a result of a Space Adjustment,

then on the applicable Adjustment Effective Date, such Airline shall be invoiced for such

increased or decreased amount of Exclusive Use Space.

ARTICLE V

CONDITION PRECEDENT TO EFFECTIVENESS

This Plan shall not become effective unless the following condition precedent is satisfied

or waived:

5.1 Use Agreement Approval . The approval described in Section 8.13 of the Use

Agreement has been obtained. If the condition precedent described in Section 8.13 of the Use

Agreement has been satisfied, the Plan shall become effective on the Closing Date.

ARTICLE VI

INDEMNIFICATION

6.1 Indemnification

.

(a) The Lessee agrees to indemnify each Airline, each of its respective

officials, agents and employees, and each of its respective successors and assigns, individually

and collectively, from and against any claim, action, loss, damage, injury, liability and cost and

expense of whatsoever kind or nature (including reasonable attorney fees, disbursements, court

costs and expert fees), due to or caused by injury to persons, including death, or damage to

property or other tort claims to the extent caused by the implementation of this Plan, except to

the extent that such injury or damage is caused by the negligence or willful misconduct of such

Airline, a third party not contractually related to the Lessee, or their respective officers,

employees, agents, successors, or assigns, as applicable.

(b) Each Airline shall indemnify, save, hold harmless, and defend the Lessee

and its officials, agents and employees, and each of their respective successors and assigns,

individually and collectively, from and against any claim, action, loss, damage, injury, liability,

# 15

and cost and expense of whatsoever kind or nature (including reasonable attorney fees,

disbursements, court costs, and expert fees) due to or caused by injury to persons, including

death, or damage to property or other tort claims to the extent caused by such Airline or any of

such Airline’s contractors, while such contractor is performing work on behalf of Airline, in

connection with this Plan, except to the extent such injury or damage is due to or caused by the

negligence or willful misconduct of the Lessee, a third party not contractually related to such

Airline, or its officers, employees, agents, successors, or assigns, as applicable.

ARTICLE VII

MISCELLANEOUS

7.1 Use Agreement . Except as expressly modified by this Plan, all of the provisions

of the Use Agreement remain in full force and effect for all purposes and shall apply to the

Plan including without limitation the dispute resolution provisions of Article 11 of the Use

Agreement.

7.2 Notice Periods . If any notice period provided for in this plan in respect of the

temporary closure of areas of the Airport would be less than the notice period required by

Section 3.2(c) of the Use Agreements, each Signatory Airline shall be deemed to have

waived Section 3.2(c) with respect to such temporary closure provided that notice thereof has

been given in accordance with this Plan.

7.3 Entir e Plan

. This Plan, including the attached exhibits and endorsements,

constitutes the entire agreement of the Parties on the subject matter hereof.

7.4 Changes to the Plan . Any change to this Plan shall be deemed an

amendment to the Use Agreement and be governed by the provisions of Section 12.6(b) of

the Use Agreement.

ARTICLE VIII

REVISED SCHEDULE F AND USE AGREEMENT AMENDMENT

8.1 Revised Schedule F

. As part of the Plan, the Lessee and the Airlines agree to

the revisions of Schedule F as set forth in the Revised Schedule F attached hereto as Exhibit B.

Revised Schedule F shall go into the effect and replace Schedule F to the Use Agreement at the

same time as the Plan, subject to the conditions precedent for effectiveness of the Plan set forth

in Article V above.

8.2 Amendments to the Use Agreement.

(a) Section 6.3(c)(vii) of Use Agreement . As part of the terms and

conditions for the approval by the Airlines of this Plan, the parties have agreed to the

amendment and restatement of Section 6.3(c)(vii) of the Use Agreement, effective

immediately after the Closing, as follows:

Small Capital Projects. Notwithstanding the foregoing provisions,

# 16 the Lessee shall bear the costs for Small Capital Projects, up to a

maximum of $750,000 (which amount shall be adjusted in

accordance with the following sentence) per Term Year, and shall

not add the same to the Total Annual Contribution. Such amount

shall be adjusted in every Term Year after the first Term Year by

multiplying the CPI Factor for such Term Year by such amount

applicable in the prior Term Year.

(b) Section 6.2(c) of Use Agreement.

(i) The parties have also agreed to amend the Use

Agreement to strike the second sentence of Section 6.2(c) that provided

for the priority of the Use of PFCs and read as follows: “Any PFCs that

are not shown on Schedule K shall be used, in order of priority, for (i) the

Initial Capital Projects, (ii) Government-Mandated Capital Projects, (iii)

Airline Projects, (iv) Capital Projects for the Airfield and Terminal Areas

in accordance with Section 6.3(c) and (v) other PFC-eligible projects.”

The parties acknowledge that the Lessee has full discretion in the use and

priority of PFCs.

(ii) Accordingly, Section 6.2(c) of the Use Agreement

is amended and restated in its entirety, effective immediately after

Closing, as follows:

6.2(c) Schedule K sets forth all PFC commitments as of the Closing. PFCs

collected at the Airport shall not be used to finance projects at any other airport.

(c) Amendments. For the avoidance of doubt, the

amendments of the Use Agreement set forth in this Section 8.2 shall be effective

during the entire term of the Use Agreement.

[The Remainder of this Page Intentionally Left Blank]

# 1

[NEWYORK 2683607_2]



# sf-3249980 

# EXHIBIT A TO CAPACITY ENHANCEMENT PLAN

FINANCIAL PLAN

# EXHIBIT B TO CAPACITY ENHANCEMENT PLAN

REVISED SCHEDULE F

TERMINAL FACILITY UTILIZATION

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# 2

[NEWYORK 2684209_2]



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# 3

[NEWYORK 2684209_2]



# sf-3249785 

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# 4

[NEWYORK 2684209_2]



# sf-3249785 

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# 5

[NEWYORK 2684209_2]



# sf-3249785 

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# 6

[NEWYORK 2684209_2]



# sf-3249785 

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# 7

[NEWYORK 2684209_2]



# sf-3249785 

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2QQ YNHPJY HTZSYJWX XMFQQ GJ HTSSJHYJI YT GFLLFLJ RFPJZU IJ[NHJX% 4TRRTS DXJ

GFLLFLJ RFPJZU IJ[NHJX \NQQ GJ FQQTHFYJI TS F UWNTWNY^ GFXNX YT BNLSFYTW^ 2NWQNSJX

\NYM YNHPJY HTZSYJWX FXXTHNFYJI \NYM YMTXJ GFLLFLJ RFPJZU IJ[NHJX% 3FLLFLJ

RFPJZU IJ[NHJX \NQQ GJ UWT[NIJI \MJSJ[JW WJFXTSFGQ^ UWFHYNHFGQJ FX WJVZJXYJI G^

YMJ FNWQNSJ%

F.6 PREFERENTIAL USE GATES AND ACCOMMODATION

CMNX XJHYNTS UWT[NIJX YMJ <JXXJJ FSI FNWQNSJ XHMJIZQNSL FSI TUJWFYNSL UJWXTSSJQ

LZNIFSHJ TS YMJ IJXNLSFYNTS# FHHTRRTIFYNTS# WJHFUYZWJ# FSI WJFXXNLSRJSY TK

@WJKJWJSYNFQ DXJ 8FYJX% @WJKJWJSYNFQ DXJ 8FYJX XMFQQ RJFS YMTXJ LFYJX FY YMJ 2NWUTWY

YMFY YMJ <JXXJJ IJXNLSFYJX FX 4TRRTS DXJ 2XXNLSJI 8FYJX KTW YMJ UWNTWNY^ ZXJ TK F

UFWYNHZQFW 2NWQNSJ NS FHHTWIFSHJ \NYM YMNX BHMJIZQJ 7% CMJ UFWYNJX MF[J FSYNHNUFYJI

YMJ UTYJSYNFQ KZYZWJ LWT\YM FY YMJ 2NWUTWY# NSHQZINSL SJ\ JSYWFSYX \NYM WJXUJHY YT

YMJ @WJKJWJSYNFQ DXJ 8FYJX G^ FLWJJNSL TS TGOJHYN[J RJFXZWJX JXYFGQNXMJI NS BJHYNTS

7%- YMFY UJWRNY YMJ <JXXJJ YT WJHFUYZWJ TW WJVZNWJ FHHTRRTIFYNTSX TS @WJKJWJSYNFQ

DXJ 8FYJX%

F.6.1 Lessee and Airline Gate Pools

2QQ LFYJX FY YMJ 2NWUTWY XMFQQ GJ HTRRTS ZXJ J]HJUY FX UWJ[NTZXQ^ IJXNLSFYJI G^ YMJ

<JXXJJ FSI YMNX BHMJIZQJ 7 FX @WJKJWJSYNFQ DXJ 8FYJX% 9T\J[JW# YMJ <JXXJJ XMFQQ

IJXNLSFYJ HJWYFNS LFYJX FX @WJKJWJSYNFQ DXJ 8FYJX NS FHHTWIFSHJ \NYM YMJ UWT[NXNTSX

MJWJNS FY F BNLSFYTW^ 2NWQNSJ`X WJVZJXY% >TSXNLSFYTW^ 2NWQNSJX XMFQQ STY GJ UWT[NIJI

\NYM @WJKJWJSYNFQ DXJ 8FYJX# J]HJUY FX RF^ GJ WJVZNWJI YT FHHTRRTIFYJ YMJR NS

FHHTWIFSHJ \NYM YMJ UWT[NXNTSX TK YMNX BHMJIZQJ 7% 2QQ FNWHWFKY LFYJX \NQQ GJ FXXNLSJI

YT TSJ TK Y\T aUTTQXb# YMJ <JXXJJ @TTQ FSI YMJ 2NWQNSJ @TTQ% CMJ 2NWQNSJ @TTQ \NQQ

NSHQZIJ FQQ LFYJX IJXNLSFYJI FX @WJKJWJSYNFQ DXJ 8FYJX1 YMJ <JXXJJ @TTQ \NQQ NSHQZIJ

# 8

[NEWYORK 2684209_2]



# sf-3249785 

# FQQ TYMJW LFYJX# \MNHM XMFQQ GJ IJXNLSFYJI FX 4TRRTS DXJ 8FYJX% CMJ SZRGJW TK

LFYJX NS JFHM UTTQ RF^ GJ FIOZXYJI KWTR YNRJ YT YNRJ NS FHHTWIFSHJ \NYM YMNX

BHMJIZQJ 7% CMJ YJWR a=NSNRZR 5FNQ^ 5JUFWYZWJXb FX ZXJI NS BJHYNTS 7%- XMFQQ

RJFS YMJ RNSNRZR IFNQ^ IJUFWYZWJX FX WJFXTSFGQ^ IJYJWRNSJI G^ YMJ <JXXJJ TS FS

FSSZFQ GFXNX GFXJI ZUTS YMJ HFQHZQFYNTS TK YMJ F[JWFLJ ZYNQN_FYNTS TK FQQ LFYJX FY YMJ

FNWUTWY1 YMJ =NSNRZR 5FNQ^ 5JUFWYZWJX KTW YMJ KNWXY CJWR EJFW XMFQQ GJ +%'

IJUFWYZWJX UJW IF^%

CMJ NSNYNFQ IJXNLSFYNTSX NS 7NLZWJX 2$( YMWTZLM 2$+ GJQT\ FWJ UWTOJHYJI GFXJI TS YMJ

46@ FSI RF^ GJ FIOZXYJI NS FHHTWIFSHJ \NYM YMJ 46@% CMJ NSNYNFQ IJXNLSFYNTSX FWJ

XZGOJHY YT WJHFUYZWJ FSI WJFXXNLSRJSY NS FHHTWIFSHJ \NYM YMNX BHMJIZQJ 7%

2NWQNSJ NX IJJRJI YT MF[J WJVZJXYJI FSI <JXXJJ MFX FLWJJI YT YMJ KTQQT\NSL NSNYNFQ

IJXNLSFYNTS TK @WJKJWJSYNFQ DXJ 8FYJX YT YMJ 2NWQNSJ UWNTW YT YMJ NRUQJRJSYFYNTS TK

YMJ 46@ FSI YMWTZLM @MFXJ ; TK YMJ 46@# FX XMT\S NS 7NLZWJ 2$(% 7TW FQQ UMFXJX TK

YMJ 46@ !NSHQZINSL @MFXJ ( FKYJW 2UWNQ (# )'(*"# YMJ SZRGJW TK 4TRRTS DXJ 8FYJX NS

YMJ <JXXJJ @TTQ NX KTZW !+"%

Figure A-1

AIRLINE POOL – PREFERENTIAL USE GATES –

CLOSING DATE THROUGH COMPLETION OF PHASE 1

9L^P 6P]TRXL^TYX 5YXNY_\]P 3T\VTXP

, 6 33

- 6 33

. 6 33

/ 6 33

0 6 33

(+ 6 BH (



# (, 6 BH

(- 6 BH

(. 6 BH

)* 5 A>

), 5 8?&HA

). 5 8?&HA

)0 5 8?&HA

*+ 4 G3&5B

*- 4 G3&5B

*. 4 GE

*/ 4 GE

*0 4 6?

1 

# OW Gates 14, 15, 16, and 17 shall remain in Airline Pool until March 31, 2013.

# 9

[NEWYORK 2684209_2]



# sf-3249785 

# 9L^P 6P]TRXL^TYX 5YXNY_\]P 3T\VTXP

+( 4 6?

3( 3 4-

3) 3 4-

3* 3 4-

3+ 3 4-

3, 3 4-

3- 3 4-

3. 3 4-



# Subject to the foregoing, the initial delineation of the two pools is also shown in Schedule G

to this Agreement.

Following completion of Phase 1of the CEP, the following initial designation of Preferential

Use Gates for Phase 2 of the CEP is as shown in Figure A-2.

Figure A-2

AIRLINE POOL – PREFERENTIAL USE GATES –

CEP PHASE 2

9L^P 6P]TRXL^TYX 5YXNY_\]P 3T\VTXP

, 6 GE

- 6 GE

. 6 33

/ 6 33

0 6 33

(( 6 33

(, 6 33

() 6 6?

(+ 6 6?

(- 6 6?

)* 5 A>

), 5 8?&HA

). 5 8?&HA

)0 5 8?&HA

)- 5 G3

)/ 5 G3

3( 3 4-

3) 3 4-

3* 3 4-

3+ 3 4-

# 10

[NEWYORK 2684209_2]



# sf-3249785 

# 9L^P 6P]TRXL^TYX 5YXNY_\]P 3T\VTXP

3, 3 4-

3- 3 4-

3. 3 4-



# CMJ KTQQT\NSL NSNYNFQ IJXNLSFYNTS TK @WJKJWJSYNFQ DXJ 8FYJX KTW @MFXJ * TK YMJ 46@ NX

XMT\S NS 7NLZWJ 2$*%

# 11

[NEWYORK 2684209_2]



# sf-3249785 

# Figure A-3

AIRLINE POOL – PREFERENTIAL USE GATES –

CEP PHASE 3

9L^P 6P]TRXL^TYX 5YXNY_\]P 3T\VTXP

, 6 GE

- 6 GE

. 6 33

/ 6 33

0 6 33

(( 6 33

(, 6 33

*( 4 A>

** 4 8?&HA

*, 4 8?&HA

*. 4 8?&HA

*- 4 G3

*/ 4 G3

*0 4 6?

+( 4 6?

3( 3 4-

3) 3 4-

3* 3 4-

3+ 3 4-

3, 3 4-

3- 3 4-

3. 3 4-



# CMJ KTQQT\NSL NSNYNFQ IJXNLSFYNTS TK @WJKJWJSYNFQ DXJ 8FYJX ZUTS HTRUQJYNTS TK YMJ

46@ NX FX XMT\S NS 7NLZWJ 2$+%

# 12

[NEWYORK 2684209_2]



# sf-3249785 

# Figure A-4

AIRLINE POOL – PREFERENTIAL GATES –

FINAL CEP CONFIGURATION

9L^P 6P]TRXL^TYX 5YXNY_\]P 3T\VTXP

)' 5 33

)) 5 33

)+ 5 33

)- 5 33

)/ 5 33

). 5 GE

)0 5 GE

*( 4 A>

** 4 8?&HA

*, 4 8?&HA

*. 4 8?&HA

*- 4 G3

*/ 4 G3

*0 4 6?

+( 4 6?

3( 3 4-

3) 3 4-

3* 3 4-

3+ 3 4-

3, 3 4-

3- 3 4-

3. 3 4-



# CMJ SZRGJW TK LFYJX NS YMJ <JXXJJ @TTQ RF^ NSHWJFXJ TW IJHWJFXJ GFXJI TS YMJ

IJXNLSFYNTS TK FIINYNTSFQ TW WJHFUYZWJ TK @WJKJWJSYNFQ DXJ 8FYJX NS FHHTWIFSHJ \NYM

BJHYNTSX 7%-%) FSI 7%-%+% ;S FIINYNTS# YMJ T[JWFQQ SZRGJW TK F[FNQFGQJ LFYJX RF^

NSHWJFXJ TW IJHWJFXJ T[JW YMJ YJWR TK YMNX FLWJJRJSY NS YMJ J[JSY TK HFUNYFQ

NRUWT[JRJSYX !\MNHM HFUNYFQ UWTOJHYX# KTW YMJ F[TNIFSHJ TK ITZGY# XMFQQ YT YMJ J]YJSY

FUUQNHFGQJ# HTRUQ^ \NYM 2WYNHQJ - FSI BJHYNTS /%/ TK YMNX 2LWJJRJSY" YT NRUWT[J

HZXYTRJW XJW[NHJ TW JSMFSHJ TUJWFYNTSFQ JKKNHNJSH^# HFUFHNY^# HTRUJYNYNTS# FSI FHHJXX

HTSXNXYJSY \NYM YMJ XYFYJRJSY TK NSYJSY FWYNHZQFYJI NS BJHYNTS 7%)% ;K XZHM HFUNYFQ

NRUWT[JRJSY UWTOJHYX \TZQI FKKJHY YMJ HFQHZQFYNTS TK LFYJ ZYNQN_FYNTS WFYNTX# YMJS

SJ\ LFYJ ZYNQN_FYNTS WFYNTX YT GJ ZXJI NS HTSSJHYNTS \NYM YMNX BHMJIZQJ 7 XMFQQ GJ

HFQHZQFYJI%

# 13

[NEWYORK 2684209_2]



# sf-3249785 

# 7TW YMJ UZWUTXJ TK YMNX XJHYNTS# HTRUFWNXTSX GJY\JJS YMJ 2NWQNSJ @TTQ FSI <JXXJJ

@TTQ F[JWFLJ LFYJ ZYNQN_FYNTS WFYNTX \NQQ GJ KTW YMJ XUJHNKNH Y^UJ TK LFYJ% CMJ LFYJ

Y^UJX FWJ0 NSYJWSFYNTSFQ FSI ITRJXYNH% ;S FIINYNTS# NY NX FXXZRJI YMFY FQQ

NSYJWSFYNTSFQ LFYJX FWJ HFUFGQJ TK XJW[NSL ITRJXYNH TUJWFYNTSX# XMTZQI YMJ LFYJX STY

GJ WJVZNWJI KTW NSYJWSFYNTSFQ TUJWFYNTSX% CJRUQFYJ ( UWT[NIJX F XZRRFW^ TK

HFQHZQFYNTSX KTW LFYJ ZYNQN_FYNTS WFYNTX%

F.6.2 Designation of Preferential Use Gates

;S FIINYNTS YT YMJ NSNYNFQ IJXNLSFYNTS TK @WJKJWJSYNFQ DXJ 8FYJX ZSIJW 7%-%(# YMJ <JXXJJ

XMFQQ LWFSY F WJVZJXYNSL BNLSFYTW^ 2NWQNSJ F @WJKJWJSYNFQ DXJ 8FYJ NK YMJ KTQQT\NSL

HTSINYNTSX FWJ RJY KTW YMJ Y^UJ TK LFYJ0

2% CMJ <JXXJJ @TTQ F[JWFLJ ZYNQN_FYNTS KTW YMJ Y^UJ TK LFYJ WJVZJXYJI !YFPNSL NSYT

FHHTZSY PST\S UQFSSJI ZXJX G^ FNWQNSJX ZXNSL TW XJJPNSL YT ZXJ YMJ 2NWUTWY"

NX QJXX YMFS YMJ 2NWQNSJ @TTQ F[JWFLJ ZYNQN_FYNTS \NYM YMJ WJVZJXYJI FIINYNTSFQ

@WJKJWJSYNFQ DXJ 8FYJ!X" FXXZRJI YT GJ NS YMJ 2NWQNSJ @TTQ# FX IJYJWRNSJI TS F

UWT KTWRF GFXNX NS FHHTWIFSHJ \NYM YMJ RJYMTITQTL^ NQQZXYWFYJI NS CJRUQFYJ

(%

3% CMJ FNWQNSJ WJVZJXYNSL F @WJKJWJSYNFQ DXJ 8FYJ \TZQI MF[J F ZYNQN_FYNTS WFYNT

TS YMJ WJVZJXYJI LFYJ LWJFYJW YMFS YMJ F[JWFLJ ZYNQN_FYNTS TK YMJ <JXXJJ @TTQ

KTW YMFY Y^UJ TK LFYJ1 ,-+0($%$! '+1%0%- # YMFY YMJ FNWQNSJ WJVZJXYNSL F

@WJKJWJSYNFQ DXJ 8FYJ \TZQI MF[J F ZYNQN_FYNTS WFYNT KTW FQQ TK XZHM FNWQNSJ`X

J]NXYNSL @WJKJWJSYNFQ DXJ 8FYJX# NSHQZINSL YMJ UWTUTXJI FIINYNTSFQ

@WJKJWJSYNFQ DXJ 8FYJ# FY QJFXY JVZFQ YT YMJ =NSNRZR 5FNQ^ 5JUFWYZWJX UJW

@WJKJWJSYNFQ DXJ 8FYJ% CMJ HFQHZQFYNTS TK F[JWFLJ IJUFWYZWJX \TZQI GJ

\JNLMYJI NS FHHTWIFSHJ \NYM CFGQJ 3 XMT\S NS CJRUQFYJ (%

4% CMJ FNWQNSJ WJVZJXYNSL YMJ @WJKJWJSYNFQ DXJ 8FYJ FHHJUYX YMFY TYMJW FNWQNSJX

RF^ ZXJ YMJ @WJKJWJSYNFQ DXJ 8FYJX TS THHFXNTS NS HTSKTWRFSHJ \NYM YMJ

YJWRX FSI HTSINYNTSX NS BJHYNTS 7%-%*1

5% CMJ FNWQNSJ WJVZJXYNSL YMJ @WJKJWJSYNFQ DXJ 8FYJ NX \NQQNSL YT NSHZW YMJ HTXYX TK

RTINK^NSL YMJ LFYJ FSI NYX JVZNURJSY KTW NYX ZXJ%

BZGOJHY YT YMJ WJ[NJ\ TK YMJ BNLSFYTW^ 2NWQNSJX KTW FHHZWFH^# YMJ HFQHZQFYNTS TK

\JNLMYJI F[JWFLJ LFYJ ZYNQN_FYNTS XMFQQ GJ IJYJWRNSJI G^ YMJ <JXXJJ TS MNXYTWNHFQ

GFXNX# T[JW F UJWNTI TK *-, IF^X%

8FYJX JQNLNGQJ KTW IJXNLSFYNTS FX F @WJKJWJSYNFQ DXJ 8FYJ \NQQ GJ UWT[NIJI KWTR YMJ

<JXXJJ @TTQ TK 8FYJX !NSHQZINSL KWTR XZHM LFYJX WJHFUYZWJI G^ <JXXJJ UZWXZFSY YT

# 14

[NEWYORK 2684209_2]



# sf-3249785 

# BJHYNTS 7%-%+"# UWT[NIJI MT\J[JW YMFY NS ST J[JSY XMFQQ YMJ SZRGJW TK <JXXJJ

4TRRTS DXJ 8FYJX GJ WJIZHJI GJQT\ TSJ !("% CMJ BNLSFYTW^ 2NWQNSJ XMFQQ GJ

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FNWQNSJX YT FHHTRRTIFYJ STS$WTZYNSJ NWWJLZQFW TUJWFYNTSX% CMJXJ TUJWFYNTSX G^

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HFQHZQFYNSL YMJ FNWQNSJ`X MNXYTWNHFQ ZYNQN_FYNTS WFYNT% CMJ 2NWQNSJ XMFQQ MF[J YMJ WNLMY YT

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UWTUWNJYFW^ JVZNURJSY# YMJ 2NWQNSJ XMFQQ HTSXZQY \NYM YMJ <JXXJJ YT HTSXNIJW \MJYMJW

YMJWJ \TZQI GJ FS^ NXXZJX WJLFWINSL NSYJWKJWJSHJ TW NSHTRUFYNGNQNY^ \NYM YMJ

<JXXJJ`X X^XYJRX%

F.6.3 Procedures for Accommodation at Preferential Use Gates

2% S NLSFYTW^ 2NWQNSJX XMFQQ HTTUJWFYJ \NYM <JXXJJ YT FHHTRRTIFYJ YMJ SJJIX TK F

WJVZJXYNSL FNWQNSJ YT UJWRNY YMJ WJVZJXYNSL FNWQNSJ FHHJXX NS FHHTWIFSHJ \NYM

YMNX BJHYNTS 7% -%*%

B. <JXXJJ \NQQ WJVZNWJ F WJVZJXYNSL FNWQNSJ YT KNWXY HTTWINSFYJ INWJHYQ^ \NYM

BNLSFYTW^ 2NWQNSJX NS \WNYNSL KTW YMJ OTNSY ZXJ TK XZHM @WJKJWJSYNFQ DXJ 8FYJ# NK

WJVZJXY ing airline cannot be accommodated on an existing Common Use Gate.

4% ;K YMJWJ FWJ ST 4TRRTS DXJ 8FYJX TK YMJ Y^UJ WJVZNWJI F[FNQFGQJ KWTR YMJ

<JXXJJ @TTQ# YMJ <JXXJJ RF^ LWFSY F WJVZJXYNSL FNWQNSJ!X" YMJ WNLMY YT ZXJ NS

HTRRTS FQQ TW F IJXNLSFYJI UTWYNTS TK F BNLSFYTW^ 2NWQNSJ`X @WJKJWJSYNFQ DXJ

8FYJX FSI WNLMYX TK NSLWJXX FSI JLWJXX XZGOJHY YT FSI NS FHHTWIFSHJ \NYM YMJ

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2% CMJ <JXXJJ TS GJMFQK TK YMJ WJVZJXYNSL FNWQNSJ XMFQQ RFPJ F WJVZJXY TK

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BNLSFYTW^ 2NWQNSJX XMFQQ RFPJ WJFXTSFGQJ JKKTWYX YT FHHTRRTIFYJ XZHM

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JRJWLJSHNJX# YMJ <JXXJJ RF^ FHHTRRTIFYJ F WJVZJXYNSL FNWQNSJ

\NYMTZY FI[FSHJ STYNKNHFYNTS# NS FHHTWIFSHJ \NYM YMJ UWNTWNYNJX

JXYFGQNXMJI NS BJHYNTS 7%.%

3% 7TW WJLZQFW TW HTSYNSZTZX TUJWFYNTSX# NK ST BNLSFYTW^ 2NWQNSJ

[TQZSYJJWX YT FHHTRRTIFYJ YMJ WJVZJXYNSL FNWQNSJ`X TUJWFYNTSFQ SJJIX

TW WJVZNWJRJSYX KTW 8FYJ FHHTRRTIFYNTS FY WJFXTSFGQJ FSI

ITHZRJSYJI HTXYX# YMJ <JXXJJ RF^# ZUTS *' IF^X` STYNKNHFYNTS YT F

BNLSFYTW^ 2NWQNSJ# LWFSY YMJ WJVZJXYNSL FNWQNSJ YMJ WNLMY TK ZXJ NS

HTRRTS \NYM YMJ BNLSFYTW^ 2NWQNSJ TSJ TW RTWJ TK YMJ BNLSFYTW^

# 15

[NEWYORK 2684209_2]



# sf-3249785 

# 2NWQNSJ`X @WJKJWJSYNFQ DXJ 8FYJX XZGOJHY YT YMJ HTSINYNTSX HTSYFNSJI

MJWJNS% ;S RFPNSL XZHM F IJYJWRNSFYNTS# YMJ <JXXJJ XMFQQ FHY

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SJJIX TK YMJ WJVZJXYNSL FNWQNSJ# FSI \NQQ GJ LZNIJI G^ FQQ UJWYNSJSY

KFHYTWX# NSHQZINSL0

i. BNLSFYTW^ 2NWQNSJ`X FSI NYX 2KKNQNFYJX` FSI 2QQNFSHJ @FWYSJWX`

KQNLMY XHMJIZQJX FSI SJJIX# NSHQZINSL HTSSJHYNSL KQNLMYX# FSI YMJ

KQNLMY XHMJIZQJX FSI SJJIX TK YMJ WJVZJXYNSL FNWQNSJ1

ii. BNLSFYTW^ 2NWQNSJ`X FSI NYX 2KKNQNFYJX` FSI 2QQNFSHJ @FWYSJWX`

HTRGNSJI MNXYTWNHFQ FSI YMJS UWJXJSY 8FYJ ZYNQN_FYNTS NS YMJ *-,

IF^X NRRJINFYJQ^ UWNTW YT YMJ WJVZJXY1

iii. CMJ PST\S UQFSSJI ZXJ G^ FNWQNSJX ZXNSL TW XJJPNSL YT ZXJ YMJ

2NWUTWY KTW XZHM UWJRNXJX NS YMJ *-, IF^X NRRJINFYJQ^ FKYJW YMJ

WJVZJXY1

iv. CMJ HTRUFYNGNQNY^ TK XZHM WJVZJXYNSL FNWQNSJ`X FSI NYX 2KKNQNFYJX`

FSI 2QQNFSHJ @FWYSJWX` UWTUTXJI TUJWFYNTSX FSI \TWP KTWHJ#

NSHQZINSL LWTZSI$MFSIQNSL TUJWFYNTSX \NYM YMJ TUJWFYNTSX FSI

\TWP KTWHJ TK BNLSFYTW^ 2NWQNSJ FSI NYX 2KKNQNFYJX FSI 2QQNFSHJ

@FWYSJWX1

v. CMJ <JXXJJ`X TGQNLFYNTSX YT UWTRTYJ HTRUJYNYNTS# FNW XJW[NHJ FSI

FHHJXX G^ SJ\ JSYWFSYX FSI QNRNYJI NSHZRGJSYX1 FSI

vi. CMJ XJHZWNY^ TK YMJ BNLSFYTW^ 2NWQNSJ`X FSI YMJ WJVZJXYNSL

FNWQNSJ`X TUJWFYNTSX%

CMJ <JXXJJ RF^ WJVZJXY YMFY UQFSSJI ZXJX FSI WJVZNWJRJSYX TK YMJ WJVZJXYNSL

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XT FX STY YT NSYJWKJWJ \NYM YMJ BNLSFYTW^ 2NWQNSJ`X XHMJIZQJI FWWN[FQX

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# 16

[NEWYORK 2684209_2]



# sf-3249785 

# YMJ WJVZJXYNSL FNWQNSJ XMFQQ TSQ^ GJ FHHTRRTIFYJI NK NY NX KTW FS FWWN[FQ

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STWRFQ \JFW FSI YJFW J]HJUYJI# ZSQJXX YMJ BNLSFYTW^ 2NWQNSJ FSI YMJ

<JXXJJ WJQJFXJ YMJ WJVZJXYNSL FNWQNSJ KWTR YMNX WJVZNWJRJSY%

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F.6.4 Recapture of Preferential Use Gates

CMJ <JXXJJ RF^ \NXM KWTR YNRJ YT YNRJ YT WJHFUYZWJ @WJKJWJSYNFQ DXJ 8FYJX \MNHM

YMJ <JXXJJ GJQNJ[JX RF^ GJ SJHJXXFW^ KTW YMJ LTFQ TK TUJWFYNTSFQ JKKNHNJSH^#

HTRUJYNYNTS FSI FNWQNSJ FHHJXX% ;S FIINYNTS# YMJ <JXXJJ RF^ GJQNJ[J YMFY XTRJ HFUNYFQ

# 17

[NEWYORK 2684209_2]



# sf-3249785 

# NRUWT[JRJSYX FWJ SJHJXXFW^ KTW YMJ T[JWFQQ TUJWFYNTSFQ JKKNHNJSH^ TK YMJ YJWRNSFQ

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# 18

[NEWYORK 2684209_2]



# sf-3249785 

# BNLSFYTW^ 2NWQNSJX YMFY WJXZQYJI NS F aUFXXb GZY MF[J JVZFQ ZYNQN_FYNTS WFYJX# NK

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# 19

[NEWYORK 2684209_2]



# sf-3249785 

# ZSIJUWJHNFYJI [FQZJ TK BNLSFYTW^ 2NWQNSJ`X NRUWT[JRJSYX# YMJ <JXXJJ RF^

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# 20

[NEWYORK 2684209_2]



# sf-3249785 

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DXJ 8FYJX%

# 21

[NEWYORK 2684209_2]



# sf-3249785 

# F.7.2 Responsibilities

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# 22

[NEWYORK 2684209_2]



# sf-3249785 

# F.7.4. Gate Scheduling Protocol

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Figure B

SCHEDULE SUBMISSIONS

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# 23

[NEWYORK 2684209_2]



# sf-3249785 

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Figure C

TIME ON GATE PRIORITIES

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# 24

[NEWYORK 2684209_2]



# sf-3249785 

# FNWHWFKY XN_J# NSYJWSFYNTSFQ TW ITRJXYNH TWNLNSFYNTS# FSI TYMJW WJQJ[FSY

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F.7.5 Gate Assignment Protocol for Off-Schedule or Non-Scheduled

Flights

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# 25

[NEWYORK 2684209_2]



# sf-3249785 

# F.8 Regulatory Compliance

If the Federal Aviation Administration, U.S. Department of Transportation, or any successor

agency advises the Lessee in a written communication that such agency believes that any

provision in this Schedule F fails to comply with applicable statutory, regulatory, PFC

assurance, or FAA grant assurance requirements, the Lessee shall, if necessary and

appropriate, develop an acceptable corrective action plan, in consultation with the Signatory

Airlines to fully address and correct any noncompliance in a timely fashion and in a manner

so as to ensure its continuing eligibility to impose and use PFCs or receive AIP or other

grants or funds, including by modification of the provisions or interpretation of this Schedule

F to the extent necessary to address the noncompliance identified by the agency.[NEWYORK2684209_2]sf-3249785Template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sf-3249785Template1HYPOTHETICALDEDICATEDGATERECAPTURECALCULATION(continued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sf-3249785Template1HYPOTHETICALDEDICATEDGATERECAPTURECALCULATION(continued)=/>@)]A@787D/@7<;0C5/@31/=/0787@C/;2@C=3>31/=@A>3@3?@?/YIUEKI=IUMRH5EWIV2RPIVWMG&7QWIUQEWMRQEO?XQ9RQ@XIBIH@LX4UM?EW@RWEO!5EWIV/YIUEKI3T\VTXP6YWP]^TN(-%.,(*%''()%+'()%)'((%.,()%),(,%.,0+%('-)%)+<X^P\XL^TYXLV,0%,',/%.,,-%-',,%/',.%.,,0%'',0%.,+'.%(,(0*%'-.-%),.(%.,-0%''-/%''-0%,'.(%),.,%,','(%),),)%/-3T\VTXPL`P\LRP*%',)%/.)%.-)%.))%./)%/,*%')?P]]PP6YWP]^TN(0%/((.%-0(/%(,(-%0'(.%//(0%'')'%*(()0%.+-*%'0<X^P\XL^TYXLV*%''*%''*%'')%'')%''*%''*%''(0%''(+'%(0))%/()'%-0)(%(,(/%0'(0%//))%'')*%*((+/%.+)'(%'-?P]]PPL`P\LRP(%(+(%'*(%'-'%0,'%00(%('(%(.?P]]PPVP]]LT\VTXP6YWP]^TN*%'-+%-0,%.,+%.'-%(*-%.,+%,-*,%-+'%/,!%"<X^P\XL^TYXLV!,-%,'"!,,%.,"!,*%-'"!,*%/'"!,,%.,"!,-%''"!,-%.,"!*//%(,"!)%/."!&"!,*%++"!,(%'-"!+.%/,"!+0%('"!+0%-*"!+0%),"!,)%(0"!*,)%,("!)%')"!%"@RUIGESWXUIEHRPIVWMGKEWIUEWMRPXVWFI.-'%'!&"@RUIGESWXUIEQMQWIUQEWMRQEOKEWIUEWMRPXVWFI.-'%'29[NEWYORK2684209_2]sf-3249785Template1HYPOTHETICALDEDICATEDGATERECAPTURECALCULATION(continued)=/>@*]/??A9=@7<;?@/083?FLMVP35/@3=<<8/??A9=@7<;?4<>@39=8/@3(1/81A8/@7<;3T\VTXPCYYV?P]]PPCYYV9L^P6P]TRXL^TYX5YXNY_\]P3T\VTXP9L^P6P]TRXL^TYX5YXNY_\]P,633(7-633)6.633*6/633+60633(/6((6BH(06()68?&HA)'5(+68?&HA))5(,6BH)+5(-68?&HA),5(.6BH)-5)*5A>).5*+4G3&5B)/5*-4G3&5B)05*.4GE*(34*/4GE*(44*046?*)4+(46?**43(34-*,43)34-+'43*34-3+34-3,34-3-34-3.34-@<@/8?3T\VTXPZYYVRL^P]),?P]]PPZYYVRL^P])'FY^LVRL^P]+,30[NEWYORK2684209_2]sf-3249785Template1HYPOTHETICALDEDICATEDGATERECAPTURECALCULATION(continued)FLMVP4<=3>/@7<;/8B3756@7;5/??A9=@7<;?4<>@39=8/@3(1/81A8/@7<;DLXRPYQ]PL^]HPTRS^TXRFbZTNLVLT\N\LQ^9\PL^P\^SLXY\P[_LV^Y(''(%'4.*.#3*)'4P^aPPX00LXO+''%,3F.#6;*#?P]]^SLX+''%),6;F#5A331[NEWYORK2684209_2]sf-3249785Template2REQUIREDSCHEDULESUBMISSIONFORMAT?GLIHXOIHEUUMYEO&HISEUWXUIWMPIV=UIJIUIQGIV4OMKLWQXPFIU<UMKMQ2IVW3TXMSW[SI2RP&7QW\O?XQ9RQ@XIBIH@LX4UM?EW5EWI0EK1OEMPV@MGNIWGWUV9ENIXSHIYMGI"V#3ZSOEQEWRU[QRWIV8VTRS^''(JJJE=G3*)(6(,1''(,1''(,1''(,1''(,1''(,1''(,1''I(I(I#J#KI#J#K8VTRS^'')E=GJJJ3*)(6(,1*'(,1*'(,1*'(,1*'(,1*'(,1*'(,1*'I(I(I#J#KI#J#K8VTRS^''*JJJE=G4.*.6))1''))1''))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# sf-3249785

# EXHIBIT K TO SUPPLEMENT

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# EXHIBIT L TO SUPPLEMENT

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See Attached

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