Document:

Exhibit
10.3

 

AIRPORT
USE AND LEASE AGREEMENT

BETWEEN

WAYNE COUNTY AIRPORT AUTHORITY

AND

NORTHWEST AIRLINES, INC.

 

DATED AS OF       ,
2005

 

 

[McNamara
Terminal Agreement]

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page(s)

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  Premises

  	
  2

  
	
   

  	
   

  	
   

  
	
  A.

  	
  Use of Airport

  	
  2

  
	
  B.

  	
  Lease of Space

  	
  7

  
	
   

  	
  1.             Preferential
  Use Premises

  	
  7

  
	
   

  	
  2.             Shared
  Use Premises

  	
  14

  
	
  C.

  	
  Public Space

  	
  14

  
	
  D.

  	
  Parking Space

  	
  14

  
	
  E.

  	
  Right of Ingress and Egress

  	
  15

  
	
  F.

  	
  Fuel

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  Term

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  Rentals, Fees and Charges

  	
  16

  
	
   

  	
   

  	
   

  
	
  A.

  	
  Cost Centers

  	
  17

  
	
  B.

  	
  Allocation Methodology

  	
  17

  
	
  C.

  	
  Terminal Rentals

  	
  17

  
	
   

  	
  1.             South
  Terminal Rentals

  	
  17

  
	
   

  	
  2.             North
  Terminal Rentals

  	
  19

  
	
  D.

  	
  Terminal Use Charges for Shared Use
  Premises

  	
  20

  
	
  E.

  	
  Activity Fees

  	
  22

  
	
  F.

  	
  International Facilities Use Fees – FIS
  Facilities

  	
  24

  
	
  G.

  	
  Continuing Rental Obligation

  	
  24

  
	
  H.

  	
  Payment of Terminal Charges and Activity
  Fees

  	
  26

  
	
   

  	
  1.             Information
  on Signatory Airlines’ Operations

  	
  26

  
	
   

  	
  2.             Projection
  of Rentals and Activity Fees

  	
  28

  
	
   

  	
  3.             Payment
  of Terminal Charges and Activity Fees

  	
  29

  
	
   

  	
  4.             Adjustment
  of Terminal Charges and Activity Fees

  	
  30

  
	
   

  	
  5.             Preliminary
  Annual Settlement and Final Audit

  	
  30

  
	
  I.

  	
  Supplemental Capital Cost Payments

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  Lessor Covenants; Capital Expenditures

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  Construction, Maintenance and Repair by
  Lessee

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  Right of Entry by Lessor

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  Maintenance, Operation and Repair by Lessor

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  Utility Services

  	
  44

  

 

i

 

	
  ARTICLE IX

  	
  Space for United States Weather Bureau,
  Postal Service,

  	
   

  
	
   

  	
  Federal Aviation Administration, and
  Express Agencies

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  Airline Clubs

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  Rules and Regulations

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  Control of Rates, Fares or Charges

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  Damage or Destruction of Premises

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
  Cancellation by Lessor

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
  Cancellation by Lessee

  	
  49

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVI

  	
  Suspension and Abatement

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVII

  	
  Arbitration

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVIII

  	
  Indemnity

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIX

  	
  Insurance

  	
  53

  
	
   

  	
   

  	
   

  
	
   

  	
  1.             Commercial
  General Liability Insurance

  	
  54

  
	
   

  	
  2.             Aviation
  Public Liability Insurance

  	
  54

  
	
   

  	
  3.             Workers
  Compensation Insurance

  	
  55

  
	
   

  	
  4.             All
  Risk Physical Damage Insurance

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE XX

  	
  Quiet Enjoyment

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXI

  	
  Title to Equipment, Improvements and
  Facilities

  	
   

  
	
   

  	
  Erected by Lessee

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXII

  	
  Surrender of Possession

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXIII

  	
  Mineral Rights

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXIV

  	
  Condemnation

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXV

  	
  Assignment and Subletting

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXVI

  	
  Subsidiary Companies

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXVII

  	
  Notices

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXVIII

  	
  Definitions

  	
  59

  

 

ii

 

	
  ARTICLE XXIX

  	
  Paragraph Headings

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXX

  	
  Invalid Provision

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXXI

  	
  Successors and Assigns Bound by Covenants

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXXII

  	
  Right to Lease to United States Government

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXXIII

  	
  Covenants Against Discrimination

  	
  73

  
	
   

  	
   

  	
   

  
	
  A.

  	
  Covenant Pursuant to Requirements of the

  	
   

  
	
   

  	
  Department of Transportation

  	
  73

  
	
  B.

  	
  Employment

  	
  73

  
	
  C.

  	
  Affirmative Action Program

  	
  74

  
	
  D.

  	
  Disadvantaged Business Enterprise

  	
  74

  
	
   

  	
  1.             Policy

  	
  74

  
	
   

  	
  2.             DBE
  Obligation

  	
  75

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXXIV

  	
  Conformity of Agreement

  	
  75

  

 

iii

 

	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  —

  	
  Airport

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  —

  	
  [Intentionally omitted]

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  —

  	
  Lessee’s Preferential South Terminal Space
  and Shared Use South Terminal Space

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  —

  	
  Priorities for Use of International Gates

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  —

  	
  Allocation of O&M Expenses and Bond
  Debt Service

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  —

  	
  Airport Parcels to be Sold

  
	
   

  	
   

  	
   

  
	
  Exhibit G

  	
  —

  	
  [Intentionally omitted]

  
	
   

  	
   

  	
   

  
	
  Exhibit H

  	
  —

  	
  Required Use of PFCs

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
  —

  	
  Facilities Use Fees

  
	
   

  	
   

  	
   

  
	
  Exhibit J

  	
  —

  	
  Terminal Cost Centers

  

 

iv

 

AIRPORT USE AND LEASE AGREEMENT

 

This AIRPORT USE AND
LEASE AGREEMENT (this “Agreement”) made and entered into this       
day of          , 2005, by and
between the WAYNE COUNTY  AIRPORT AUTHORITY, a Michigan public body
corporate, with principal offices located at the Detroit Metropolitan Wayne
County Airport, hereinafter referred to as “Lessor”, and NORTHWEST AIRLINES, INC., a Minnesota
corporation, with principal offices located at 2700 Lone Oak Parkway, Eagan,
Minnesota 55121, hereinafter referred to as “Lessee”.  Unless defined elsewhere in this Agreement,
capitalized terms shall have the meanings set forth in Article XXVIII
hereof.

 

Witnesseth:

 

WHEREAS, pursuant to the provisions of the Aeronautics
Code of the State of Michigan, Lessor, as successor in interest to the Charter
County of Wayne, Michigan (the “County”), operates and maintains the Detroit
Metropolitan Wayne County Airport (the “Airport”), said airport being more
fully described in Exhibit A attached
hereto and hereby made a part hereof, with the power to lease premises and
facilities and to grant rights with respect thereto; and

 

WHEREAS, Lessee is engaged in the Air Transportation
business; and

 

WHEREAS, Lessor, as successor in interest to the
County, and Lessee are parties to an Airport Use and Lease Agreement dated as
of June 21, 2002 (the “2002 Airport Agreement”), pursuant to which the
County leased to Lessee certain premises, facilities, rights, licenses,
services and privileges with and on the Airport; and

 

WHEREAS, Lessor and Lessee desire to amend certain
provisions of the 2002 Airport Agreement by entering into this Agreement,
which, upon approval by Lessor’s 

 

 

Board and execution by Lessor’s Chief Executive
Officer and a duly authorized officer of Lessee, shall supersede in all
respects and replace the 2002 Airport Agreement;

 

NOW, THEREFORE, for and in consideration of the
premises and of the mutual covenants and agreements herein contained, and other
valuable considerations, as of the effectiveness of this Agreement Lessor does
hereby grant, demise and let unto Lessee and Lessee does hereby hire and take
from Lessor, certain premises and facilities, rights, licenses, services and
privileges hereinafter described in connection with and upon the Airport.

 

ARTICLE I

PREMISES

 

A.            USE
OF AIRPORT: In common with others so authorized, Lessee shall have the use
of the common areas of the Airport and its appurtenances, together with all
facilities, equipment, improvements and services which have been, or may
hereafter be, provided at or in connection with the Airport from time to time,
including, without limiting the generality hereof and subject to the rules and
regulations of Lessor promulgated in accordance with Article XI hereof,
the landing field and any extensions thereof or additions thereto, passenger
and cargo ramp areas and facilities, aircraft parking areas and facilities,
roadways, runways, aprons, taxiways, sewage and water facilities, floodlights,
landing lights, beacons, control tower, signals, radio aids, and all other
conveniences for flying, landings and take-offs of aircraft of Lessee, which
use, without limiting the generality hereof, shall include:

 

1.             The
right to operate thereat and therefrom a transportation system by aircraft for
the carriage of persons, property, cargo and mail;

 

2

 

2.             The
right to repair, maintain, condition, service, test, park or store aircraft or
other equipment of Lessee, or of any other scheduled air transportation
company, or aircraft of the U.S. Armed Forces or the FAA within such areas as
are designated by Lessor; provided, that such right shall not be construed as
authorizing the conduct of a separate business by Lessee, but shall permit
Lessee to perform such functions as an incident to its conduct of Air
Transportation;

 

3.             The
right to train, subject to rules and regulations as promulgated under Article XI
hereof, on the Airport, personnel in the employ of or to be employed by Lessee
or any scheduled air transportation company, or of the U.S. Armed Forces, or of
the FAA, provided, that such right shall not be construed as authorizing the
conduct of a separate business by Lessee, but shall permit Lessee to perform
such functions as an incident to its conduct of Air Transportation;

 

4.             The
right to sell, dispose of or exchange Lessee’s aircraft, engines, accessories,
supplies or other personal property; provided, that such right shall not be
construed as authorizing the conduct of a separate business by Lessee, but
shall permit such sales as an incident to its conduct of Air Transportation or
accommodation to others engaged therein;

 

5.             The
right, subject to the terms and conditions hereof, to purchase or otherwise
obtain personal property of any nature (including aircraft, engines,
accessories, gasoline, oil, greases, lubricants, other fuel or propellant, food,

 

3

 

beverages, other
equipment and supplies and any articles or goods) reasonably necessary or
convenient for its operations, from any supplier of its choice;

 

6.             The
right to service, by Lessee or others selected by Lessee, Lessee’s aircraft or
other equipment by truck or otherwise, with gasoline, oil, greases, lubricants,
or any other fuel or propellant or other supplies, required by Lessee; such
right to include, without limiting the generality thereof, the right to install
and maintain on the Airport, separately or in common with others, appropriate
pipes (including a pipeline or lines between Lessee’s sources of supply and its
storage facilities for gasoline, oil, greases, lubricants or other fuel or
propellant and from such storage facilities to the point or points of
servicing), pumps, motors, filters and other appurtenances incidental to the
use thereof, either through construction and maintenance by Lessee or by a
nominee of Lessee in accordance with plans and specifications therefor approved
by Lessor; provided, however, that Lessor shall not be responsible for the cost
of excavation, construction, installation and maintenance of any such storage
facilities, pipes or pipelines, pumps, motors, filters or other appurtenances;

 

7.             The
right to land, take-off, fly, taxi, tow, park, load, and unload Lessee’s
aircraft and other equipment used in the operation of schedule, shuttle,
courtesy, test, training, inspection, emergency, special, charter, sightseeing
and other flights;

 

8.             The
right to transfer, load and unload persons, cargo, property and mail to, from
and at the Airport by such loading and unloading devices, motor cars, buses,
trucks or other means of conveyance as Lessee may choose or require in 

 

4

 

the operation of its Air
Transportation system; with the non-exclusive right to designate and enter into
arrangements with any carrier or carriers of its choice to transport to and
from the Airport, passengers and their baggage, cargo, property and mail
carried or to be carried by air by Lessee provided that with respect to
passengers, Lessee shall not enter into arrangements with a carrier for
transportation to or from the Airport except for such period or periods during
which there is no satisfactory ground transportation service provided by bus or
limousine operator selected by the Lessor;

 

9.             The
right to install, maintain and operate, without cost to Lessor, by Lessee
alone, or in conjunction with any other air transportation companies who are
lessees at the Airport, or through a nominee, communication systems between
suitable locations in the aircraft loading areas and suitable locations in or
about Lessee’s hangar, and between any or all of said locations and Lessee’s
offices;

 

10.           The
right to install, maintain and operate, without cost to Lessor, by Lessee
alone, or in conjunction with any other air transportation companies that are
lessees at the Airport, or through a nominee, suitable Lessee-owned aircraft
air-conditioning equipment, including, but not limited to, trucks, or a
suitable airplane air-conditioning system in the loading area.

 

11.           The
right to provide in any hangar or other non-public space leased by Lessee
without cost to Lessor, by Lessee alone, a subsidiary of Lessee or by contract
with a supplier or caterer, foods and beverages for consumption by employees
and occasional invitees of Lessee on such premises for business 

 

5

 

purposes.  Without limiting the generality of the
foregoing, said right shall include the right to install, maintain, and
operate, or cause to be installed, maintained and operated without cost to
Lessor, in any hangar on premises leased to Lessee at the Airport, vending
machines, a cafeteria, restaurant or other plant for the purpose of preparing,
cooking, and dispensing of foods and beverages for consumption as aforesaid;

 

12.           The
right to provide, without cost to Lessor, by Lessee alone, a subsidiary of
Lessee, or by contract with a supplier or caterer of its choice, food and
beverages for consumption on aircraft of Lessee; provided, however, that if
Lessee shall purchase such foods and beverages by contract with a supplier or
caterer other than an Airport food concessionaire, Lessee shall require such
supplier or caterer, other than its wholly-owned subsidiary, to pay to Lessor
the same percentage commission as would be paid to Lessor by an Airport food
concessionaire;

 

13.           The
right to install and operate, at Lessee’s expense, a reasonable number and type
of company identification signs, subject to the right of Lessor to approve the
same as to type and location;

 

14.           The
right to install, maintain and operate, at Lessee’s expense, by Lessee alone,
or in conjunction with any other air transportation companies who are lessees
at the Airport, or through a nominee, such radio communications, meteorological
and aerial navigation equipment and facilities in or on premises preferentially
leased to Lessee, and, subject to the approval of Lessor’s Chief Executive
Officer with respect to location of installation, elsewhere on the Airport 

 

6

 

as may be necessary or
convenient in the opinion of Lessee for its operations; provided, however, that
such approval shall not be withheld unless such installation, maintenance and
operation at the location selected by Lessee shall interfere with the
reasonable use of the Airport by other authorized persons;

 

15.           The
right to conduct operations or activities other than those enumerated in
Subparagraphs (1) to (14), inclusive, of this paragraph, reasonably
related to the landing, taking off, flying, moving, loading, unloading, or
servicing of aircraft which are reasonably necessary or convenient to the
conduct by it of Air Transportation; provided, however, that all such other
operations and activities shall be subject to the approval of Lessor.

 

B.            LEASE OF
SPACE:

 

1.             PREFERENTIAL USE
PREMISES.

 

(a)           Lessor hereby grants to
Lessee, its employees, agents, guests, patrons and invitees, the preferential
use of space, improvements and facilities in the South Terminal consisting of
the Preferential South Terminal Space identified on Exhibit C
attached hereto (hereinafter referred to as “Lessee’s Preferential
South Terminal Space”).  Lessee shall
have the right to permit its code share partners and commuter carriers to have
access to Lessee’s Preferential South Terminal Space.  Exhibit C
shall be amended, effective as of the Date of Beneficial Occupancy of all of
Lessee’s Preferential South Terminal Space resulting from the McNamara Terminal
Phase II Project, to include all of such space not then reflected on Exhibit C, which amendment may be entered into by 

 

7

 

the Chief Executive Officer of Lessor without further
approvals of Lessor’s Board.

 

(b)           Lessee’s
Preferential South Terminal Space shall be available to Lessee in accordance
with the following preferential use provisions:

 

(i)            Lessee
shall have priority in using such space, subject to the provisions of subsection (iii) below.  In addition, Lessor hereby grants to Lessee,
and Lessee hereby accepts from Lessor, for so long as Lessee leases such space,
the preferential right to use the aircraft parking positions adjacent to such
space, as shown on Exhibit C,
for the parking of aircraft and support vehicles and the loading and unloading
of passengers and cargo.

 

(ii)           Lessor
intends to maintain a policy of providing open access to the Airport and
achieving a balanced utilization of Airport facilities.  To achieve that goal, Lessor reserves the
right to require shared use of Preferential Use Premises as described in subsection (iii) below.

 

(iii)          (A)          If
an airline, including any airline seeking to expand its service or an airline
seeking entry into the Airport, is in need of space or facilities at the
Airport, which need cannot be met by use of then unleased premises, if any, in
the South Terminal or the North Terminal, Lessor shall direct such airline to request
the use of leased space or facilities of all Signatory Airlines on a voluntary
basis.  Lessee and the other Signatory
Airlines shall make 

 

8

 

reasonable efforts to
accommodate such requests in a timely manner from any Preferential Use Premises
leased to them.

 

(B)           In
the event (I) Lessor receives a written request from an airline requesting
space or facilities of a type granted to Signatory Airlines on a preferential
use basis, (II) the requesting airline demonstrates to Lessor that it has
contacted all Signatory Airlines and has exhausted all reasonable efforts to
find reasonable accommodation for its proposed operations and the space or
facilities it needs, and (III) Lessor determines that (x) such requesting
airline needs the requested space or facilities to accommodate passengers or
aircraft and (y) Lessor cannot provide such space or facilities to such airline
on a timely basis, then Lessor may grant such requesting airline the right of
temporary or shared use of a designated portion of Lessee’s Preferential South
Terminal Space, including, but not limited to, the use of passenger loading
bridges and other appurtenant equipment which are reasonably necessary for the
effective use of such space, whether owned by Lessee or Lessor, as well as the
aircraft parking positions adjacent to such space, but excluding Lessee’s
member-only airline clubs within Lessee’s Preferential South Terminal Space.

 

(C)           In
the event Lessor determines that a requesting airline’s needs require granting
such requesting airline the right to share or temporarily use Preferential Use
Premises, Lessor shall 

 

9

 

serve written notice to all Signatory Airlines of that
determination and notice of Lessor’s intention to make a further determination,
in not less than 15 calendar days, as to how the requesting airline will be
accommodated.

 

(D)          In
accordance with the rules and priorities set forth in subparagraph (F) below,
Lessor may grant the requesting airline the right of shared or temporary use of
a designated portion of Lessee’s Preferential South Terminal Space (excluding
Lessee’s member-only airline clubs), as well as rights of ingress and egress,
the right to use the aircraft parking positions adjacent thereto and the right
to use passenger loading bridges and other appurtenant equipment which are
reasonably necessary for the effective use of such space, provided, that:

 

(I)            such
proposed user provides Lessee with indemnification and proof of insurance
satisfactory to Lessee; provided, however, that Lessee may not require any
indemnification more favorable to it than that which Lessee provides to Lessor
hereunder;

 

(II)           such
proposed user agrees to pay Lessee the sum of the following:

 

(x)            an
amount equal to a pro rata share of the sum of the terminal rentals and any
other applicable payments, fees or taxes payable by 

 

10

 

Lessee hereunder with
respect to such areas during such shared or temporary use period as calculated
herein; and

 

(y)           additional
amounts sufficient to recover Lessee’s direct costs and operation and
maintenance expenses, if any, of such shared or temporary use, including a
reasonable allocation of any capital and equipment costs for property and
equipment owned by Lessee;

 

(III)         such
proposed user enters into a written agreement with Lessee therefor, which
agreement shall not be inconsistent with the terms and conditions stated herein
and shall be submitted to Lessor for written approval prior to the effective
date thereof.

 

(E)           Lessee
agrees to make reasonable efforts to facilitate the temporary or shared
accommodation of the requesting airline’s scheduled operations, including the
use of passenger loading bridges used or owned by Lessee and other portions of
Lessee’s Preferential South Terminal Space (excluding Lessee’s member-only
airline clubs) as may be reasonably necessary to accommodate the requesting
airline in the event Lessor requires such use. 
In the event that the requesting airline and Lessee are not able to
agree to a form of written agreement pursuant to 

 

11

 

subparagraph (D)(III) above after reasonable efforts
by both parties, Lessor shall have the right, after consultation with both
parties, to set the final terms of such written agreement, which shall provide
no less protection of Lessee’s interests than Lessee provides for Lessor’s
interest hereunder, and be binding on both the requesting airline and Lessee.

 

(F)           In
the event that, pursuant to subparagraph (B) above, Lessor determines that
a requesting airline is in need of facilities to accommodate passengers or
aircraft and such facilities should be made available from Preferential Use
Premises, Lessor will follow the following rules and priorities in
designating the specific premises for temporary or shared use by the requesting
airline:

 

(I)            Preferential
Use Premises shall be designated for temporary or shared use in the reverse
order of the magnitude of the then present utilization by Signatory Airlines.

 

(II)           In
assessing the degree of such utilization by Signatory Airlines, Lessor will
consider all factors deemed relevant, which may include:  (u) the average number of flight arrivals and
departures per aircraft parking position per day; (v) flight scheduling
considerations; (w) potential labor conflicts; (x) the number, availability and
type (e.g. 

 

12

 

wide-body or narrow body)
of aircraft parking position locations; (y) the preferences of the Signatory
Airlines as to which of their specific premises are designated for temporary or
shared use by the requesting airline and (z) other operational considerations.

 

(III)         In
the event Lessee is required to share Lessee’s Preferential South Terminal
Space, Lessee shall have priority in all aspects of usage of such shared
premises over all other airlines; provided that Lessee shall not change its
scheduling or ordinary course usage of such premises for the purpose of interfering
with the usage of such premises by a requesting airline sharing such premises.

 

(G)           The
foregoing provisions of this Article IB.1.(b)(iii) notwithstanding,
Lessor may grant a requesting airline the right to temporarily use a designated
portion of Lessee’s Preferential South Terminal Space (excluding Lessee’s
member-only airline clubs) in non-recurring emergency or safety-related
circumstances, so long as such use will not unreasonably adversely affect
Lessee’s Air Transportation operations at the Airport.

 

(H)          During
the use of Lessee’s Preferential South Terminal Space or other related
facilities by other airlines scheduled by Lessor pursuant to this Article IB.1.,
Lessee shall not be held liable by Lessor with regard to any claim for damages
or 

 

13

 

personal injury arising out of or in connection with
such requesting airline’s use of Lessee’s Preferential South Terminal Space or
other related facilities, unless caused by the negligence of Lessee, its
employees or agents.

 

2.             SHARED USE PREMISES. Lessor
hereby grants to Lessee, its employees, agents, guests, patrons and invitees,
the shared use, along with all other air carriers operating Air Transportation
businesses in the South Terminal to whom Lessor grants such shared use, of
space, improvements and facilities in the South Terminal consisting of the
Shared Use South Terminal Space identified on Exhibit C attached
hereto.  That portion of the Shared Use
South Terminal Space consisting of the international gates in the South
Terminal, together with related holdrooms, jet bridges, ramp access and baggage
facilities, shall be allocated for use by the users thereof in accordance with
the priorities described in Exhibit D attached hereto.

 

C.            PUBLIC
SPACE:  Lessee, its employees,
passengers, guests, patrons and invitees, in common with others, shall have the
use of all public space in the terminals at the Airport, and all additional
public space which may thereafter be made available therein and in any additions
thereto, including, without limiting the generality thereof, common areas for
passenger movement, concessions areas, entrances, exits, lobbies, public
waiting areas, public restrooms, hallways and other premises for other public
and passenger convenience.

 

D.            PARKING
SPACE:  Vehicular parking spaces
shall be provided near the terminal from which Lessee is operating (adequate in
Lessor’s judgment, considering 

 

14

 

the number of vehicles and
traffic to be accommodated) for the use of Lessee, its employees, passengers
and limousine operators, in common with any other scheduled air transportation
companies, their employees, passengers and limousine operators.  Lessor or its concessionaires may make a
reasonable charge to passengers for the use of the parking space provided for
them, but no charges shall be made for use of such adequate parking spaces as
are designated by Lessor for the respective use of Lessee’s employees or
limousine operators.

 

E.             RIGHT
OF INGRESS AND EGRESS:  Subject to
the reasonable rules and regulations promulgated by Lessor in accordance
with Article XI hereof, Lessee shall have the right and privilege over the
Airport of ingress to and egress from the premises and facilities described in
this Article I for its employees, agents, passengers, guests, patrons and
invitees, its or their suppliers of materials and furnishers of service, its or
their aircraft, equipment, vehicles, machinery and other property, and, except
as herein otherwise specifically provided, no charges, fees or tolls of any
nature, direct or indirect, shall be imposed by Lessor upon Lessee, its
employees, agents, passengers, guests, patrons and invitees, its or their
suppliers of materials and furnishers of service for such right of ingress and
egress, or for the privilege of purchasing, selling or using any materials, or
services purchased or otherwise obtained by Lessee, or for transporting,
loading, unloading or handling persons, property, cargo or mail in connection
with Lessee’s business or exercising any right or privilege granted by Lessor
hereunder.  Nothing in this Article I
shall limit Lessor’s right to impose, collect and use PFCs.

 

F.             FUEL:  Lessee shall have the right during the
term of this Agreement to lease land in the common fuel storage area as shown
in the Airport Master Plan, at a rental 

 

15

 

rate of not to exceed five
cents ($.05) per square foot per year, together with the right to install
thereon underground fuel storage tanks, pumps, piping, and appurtenances for
the storage of aviation fuel; the location and amount of such land to be
determined by written agreement of the parties hereto, a copy of which
agreement, if entered into prior to the effective date of this Agreement, will
be attached to this Agreement as an exhibit.

 

ARTICLE II

TERM

 

Lessee shall have full authority to use the premises
and facilities and to exercise the rights, licenses and privileges set forth in
Article I hereof for a term that began on February 26, 2002, and will
end on September 30, 2032.

 

ARTICLE III

 

RENTALS, FEES AND CHARGES

 

Lessee agrees to pay to Lessor for the use of the
premises, facilities, rights, licenses, services and privileges granted
hereunder, the following rentals, fees and charges, all payable in monthly
installments in accordance with paragraph H. below.  In the event that the commencement or
termination of the term with respect to any of the particular premises, facilities,
rights, licenses, services or privileges as herein provided falls on any date
other than the first or last day of a calendar month, the applicable rentals,
fees and charges for that month shall be paid for said month pro rata according
to the number of days in that month during which the particular premises,
facilities, rights, licenses, services or privileges were enjoyed.  No rentals, fees, charges or tolls imposed by
Lessor other than those specifically provided in this Agreement are payable by
Lessee for the use of or access to the Airport, provided that the foregoing
shall not be construed to prohibit Lessor from imposing and collecting charges
and fees from 

 

16

 

passengers for the use of the
public auto parking areas on the Airport, from operators of ground
transportation to, from and on the Airport or from any concessionaire at the
Airport in accordance with the terms of a contract with Lessor for the
operation of such concession; and provided, further, that Lessor reserves the
right to impose and use PFCs; and provided, further, that the foregoing shall
not preclude Lessor from imposing or levying any permit or license fee not
inconsistent with the rights and privileges granted to Lessee hereunder.

 

A.            COST
CENTERS:

 

Lessor will create the following cost centers at the
beginning of Fiscal Year 2009, for the purpose of allocating the cost of
operating, maintaining and developing the Airport among the users thereof:

 

1.             South
Terminal Cost Center;

 

2.             North
Terminal Cost Center; and

 

3.             Airport
Cost Center.

 

B.            ALLOCATION
METHODOLOGY:

 

Commencing in Fiscal Year 2009, Lessor shall maintain
accurate records identifying O&M Expenses for each Fiscal Year and
allocating O&M Expenses, Bond Debt Service and Other Available Moneys for
each Fiscal Year between (i) the South Terminal Cost Center, (ii) the
North Terminal Cost Center, and (iii) the Airport Cost Center.  Lessor will allocate O&M Expenses, Bond
Debt Service and Other Available Moneys in accordance with Exhibit E
attached hereto.

 

17

 

C.            TERMINAL
RENTALS:

 

1.             SOUTH TERMINAL RENTALS.

 

(a)           Lessee’s
Terminal Rentals for each Fiscal Year (or portion thereof on a pro rated basis)
for its Preferential South Terminal Space shall be an aggregate amount equal to
the product of the number of square feet of Lessee’s Preferential South
Terminal Space, multiplied by the South Terminal Rental Rate for such Fiscal
Year.

 

(b)           Until the
Rental Rate Change Date, the South Terminal Rental Rate is as follows for the
following Fiscal Years:

 

	
  2005

  	
   

  	
  $

  	
  19.71

  	
   

  
	
  2006

  	
   

  	
  19.71

  	
   

  
	
  2007

  	
   

  	
  19.71

  	
   

  
	
  2008 and
  thereafter

  	
   

  	
  20.04

  	
   

  

 

(c)           Commencing
with the Rental Rate Change Date, the South Terminal Rental Rate for each
Fiscal Year shall be determined by dividing the Cost of the South Terminal for
such Fiscal Year, calculated pursuant to subparagraph (d) below, by the
sum of (i) the total number of square feet of Preferential South Terminal
Space leased to all Signatory Airlines, and (ii) the total number of
square feet of Shared Use South Terminal Space.

 

(d)           The Cost
of the South Terminal for each Fiscal Year will be an amount equal to the sum
of, for such Fiscal Year:

 

(i)            O&M
Expenses allocated to the South Terminal Cost Center; and

 

(ii)           Bond Debt
Service allocated to the South Terminal Cost Center;

 

18

 

minus, for such Fiscal
Year:

 

(iii)          Other
Available Moneys allocated to the South Terminal Cost Center and used by Lessor
in such Fiscal Year to pay Bond Debt Service allocated to the South Terminal
Cost Center;

 

(iv)          the total
amount of South Terminal International Facilities Use Fees collected by Lessor
for such Fiscal Year; and

 

(v)           the total
amount of South Terminal Authority-Controlled Airline Space Revenue and South
Terminal Rental Revenue for such Fiscal Year.

 

2.             NORTH TERMINAL RENTALS.

 

(a)           Commencing
with the Rental Rate Change Date, Lessor shall charge each Signatory Airline
leasing Preferential North Terminal Space, Terminal Rentals for each Fiscal
Year (or portion thereof on a pro rated basis) for such space in an aggregate
amount equal to the product of the number of square feet of such Signatory
Airline’s Preferential North Terminal Space, multiplied by the North Terminal
Rental Rate for such Fiscal Year.

 

(b)           Commencing
with the Rental Rate Change Date, the North Terminal Rental Rate for each
Fiscal Year shall be determined by dividing the Cost of the North Terminal for
such Fiscal Year, calculated pursuant to subparagraph (c) below, by the
sum of (i) the total number of square feet of Preferential North Terminal
Space leased to all Signatory Airlines, and (ii) the total number of
square feet of Shared Use North Terminal Space.

 

19

 

(c)           The Cost
of the North Terminal for each Fiscal Year will be an amount equal to the sum
of, for such Fiscal Year:

 

(i)            O&M
Expenses allocated to the North Terminal Cost Center; and

 

(ii)           Bond Debt
Service allocated to the North Terminal Cost Center;

 

minus, for such Fiscal
Year:

 

(iii)          Other
Available Moneys allocated to the North Terminal Cost Center and used by Lessor
in such Fiscal Year to pay Bond Debt Service allocated to the North Terminal
Cost Center;

 

(iv)          the total
amount of North Terminal International Facilities Use Fees collected by Lessor
for such Fiscal Year; and

 

(v)           the total
amount of North Terminal Authority-Controlled Airline Space Revenues for such
Fiscal Year and North Terminal Rental Revenue.

 

D.            TERMINAL USE
CHARGES FOR SHARED USE PREMISES:

 

Lessee’s Terminal Use Charges for each Fiscal Year (or
portion thereof on a pro rated basis) for the use of the Shared Use South
Terminal Space shall be an aggregate amount equal to the sum of:

 

1.     (a)   the
product of (i) the total number of square feet of Shared Use Domestic
South Terminal Space multiplied by (ii) the South Terminal Rental Rate for
such Fiscal Year (as set forth in Article III.C.1.(b) or as
established pursuant to Article III.C.1.(c), as the case may be) times (b) a
fraction the numerator of 

 

20

 

which is the
number of Lessee’s domestic deplaned passengers that used the Shared Use
Domestic South Terminal Space during such Fiscal Year, and the denominator of
which is the total number of all Signatory Airlines’ domestic deplaned
passengers that used the Shared Use Domestic South Terminal Space during such
Fiscal Year; plus

 

2.     (a)   the
product of (i) the total number of square feet of Shared Use International
South Terminal Space multiplied by (ii) the South Terminal Rental Rate for
such Fiscal Year (as set forth in Article III.C.1.(b) or as
established pursuant to Article III.C.1.(c), as the case may be) times (b) a
fraction the numerator of which is the number of Lessee’s international
deplaned passengers that used the Shared Use International South Terminal Space
during such Fiscal Year, and the denominator of which is the total number of
all Signatory Airlines’ international deplaned passengers that used the Shared
Use International South Terminal Space during such Fiscal Year; plus

 

3.     (a)   the
product of (i) the total number of square feet of Shared Use Swing South
Terminal Space multiplied by (ii) the South Terminal Rental Rate for such
Fiscal Year (as set forth in Article III.C.1.(b) or as established
pursuant to Article III.C.1.(c), as the case may be) times (b) a
fraction the numerator of which is the number of Lessee’s deplaned passengers
that used the Shared Use Swing South Terminal Space during such Fiscal Year,
and the denominator of which is the total number of all Signatory Airlines’
deplaned 

 

21

 

passengers that used the
Shared Use Swing South Terminal Space during such Fiscal Year.

 

E.             ACTIVITY
FEES:

 

1.             For
each Fiscal Year, Lessee’s Activity Fee for the landing of aircraft operated by
Lessee shall be an amount equal to the product of the number of thousand pounds
of Approved Maximum Landing Weight of aircraft landed by Lessee at the Airport
in such Fiscal Year, multiplied by the Activity Fee Rate for such Fiscal Year.

 

2.             The
Activity Fee Rate for each Fiscal Year shall be the quotient arrived at by
dividing (a) the Revenue Requirement, as below defined, for such Fiscal
Year by (b) the aggregate amount of Approved Maximum Landing Weight of
aircraft, in units of one thousand pounds, of all Signatory Airlines, for such
Fiscal Year.  The unit thus arrived at
shall be the Activity Fee Rate per thousand pounds of Approved Maximum Landing
Weight payable by Lessee to Lessor for such of Lessee’s aircraft, as have
landed at the Airport during the Fiscal Year for which such calculation is
made.  The Activity Fee as herein
established shall not be subject to further adjustment except by agreement of
the parties hereto, or as provided in Article III.H.

 

3.             The
“Revenue Requirement” for any Fiscal Year as used herein shall mean that amount
of Revenue required to produce total net Revenue equal to the sum of:

 

(a)           O&M
Expenses for such Fiscal Year; plus

 

(b)           (i) one
hundred twenty-five percent (125%) of the amount of principal and interest due
(net of any capitalized interest) for such Fiscal Year on all then outstanding
Bonds, less (ii) any unencumbered amounts 

 

22

 

on deposit in the Revenue Fund on the last day of the
Fiscal Year preceding such Fiscal Year that are useable to satisfy the rate
covenant requirements of any Bond Ordinance under which Bonds have been issued,
and less (iii) Other Available Moneys used in such Fiscal Year to pay Bond
Debt Service; plus

 

(c)           deposits
into the Bond Reserve Account, the Junior Lien Bond Reserve Account, the
Operation and Maintenance Reserve Fund and the Renewal and Replacement Fund
required for such Fiscal Year pursuant to the provisions of all applicable Bond
Ordinances; plus

 

(d)           an amount equal
to $5 million (which amount has been and shall be escalated each Fiscal Year
beginning in Fiscal Year 2002 to reflect percentage increases in the Producer
Price Index during the most recently ended 12-month period for which such index
is available); plus

 

(e)           $350,000;

 

minus

 

(f)            an amount
equal to the sum of (i) all Terminal Charges collected by Lessor for such
Fiscal Year (taking into account all end-of-year payments by the Signatory
Airlines or end-of-year refunds by Lessor, as the case may be, pursuant to Article III.H.4.
and Article III.H.5. below of Terminal Charges for such Fiscal Year), (ii) all
International Facilities Use Fees collected by Lessor during such Fiscal Year, (iii) all
Authority-Controlled Airline Space Revenue, North Terminal Rental Revenue and
South Terminal Rental Revenue, (iv) all concession and parking revenue,
and (v) 

 

23

 

all other Revenue received (or receivable if Lessor is
on an accrual accounting basis) during such Fiscal Year, except (A) up to
but not exceeding $2.5 million of Revenue attributable to an automated vehicle
identification program for the entire Airport, and (B) all proceeds
received by Lessor from the sale of certain parcels of Airport property located
on the West side of the airfield and shown on Exhibit F.

 

F.             INTERNATIONAL
FACILITIES USE FEES – FIS FACILITIES:

 

Lessor will charge each air carrier operating at the
Airport an International Facilities Use Fee per deplaned international
passenger of such air carrier for the use of the FIS Facilities at the
Airport.  The Facilities Use Fees will be
charged in accordance with the schedule attached as Exhibit I.

 

G.            CONTINUING
RENTAL OBLIGATION:

 

1.             Should
any scheduled air carrier, including Lessee, having an agreement with Lessor
(or with Lessor in its capacity as successor of the County) substantially
similar to this Agreement, terminate its operations at the Airport by reason of
the loss of its operating authority to serve the Detroit Metropolitan Area and
exercise the right of cancellation provided for in such case in Article XV
of such agreement, its continued obligation to pay to Lessor charges thereafter
due under such agreement, including space rentals and Activity Fees, shall,
subject to the provisions of the paragraph next following, thereupon
terminate.  Payment of rentals and
Activity Fees thereafter required shall be the responsibility of such of the
other aforesaid scheduled air carriers which continue to provide air
transportation service to the Detroit Metropolitan Area.

 

24

 

2.             Should
(a) all such aforesaid air carriers lose their operating authority to
serve the Detroit Metropolitan Area, or (b) should Lessor fail to maintain
the necessary certifications required to permit scheduled air carrier
operations at the Airport, and all of such air carriers exercise the right of
cancellation provided for in either event in said Article XV, the
obligation to pay such aforesaid charges shall terminate subject, however, to
the following condition.  Until Fiscal
Year 2009, upon such termination all such aforesaid carriers then operating at
the Airport (including Lessee if such be the case) shall be obligated, to the
extent hereinafter required, to pay annually, or in such installments as Lessor
may require, an amount not in excess of three hundred percent (300%) of their
respective annual rentals (calculated in the manner set forth in paragraph 2
immediately below) payable at that time for terminal building space at the
Airport (whether leased under an Airport Agreement, or otherwise) for the
purpose of providing funds to be applied to Bond Debt Service (exclusive of any
additional coverage) on the then outstanding issues of Bonds.  Payments required of such carriers shall be
assessed against each of them in a uniform manner per square foot leased and
shall be diminished pro rata to the extent that Airport revenues or capital
funds are realized from other sources and are available for application to the
debt service on the said Bonds as provided for in Subparagraph 3 below.

 

3.             For
the purpose of calculating payments which such carriers may be obligated to
make, Lessor shall first determine the average annual rental rate per square
foot paid for such terminal building space by all such carriers by dividing
their total annual rentals for such space by the total square footage of the
space.  The square footage leased by each
carrier shall then be multiplied by such average rate in order to 

 

25

 

obtain an annual rental of each
such carrier for the purpose of establishing the three hundred percent (300%)
maximum annual limitation.

 

4.             In
the event Lessor fails to maintain the necessary certifications required to
permit scheduled air carrier operations at the Airport and thereafter operates
at the Airport for other purposes, any revenues earned as a result shall, after
providing for necessary operating and maintenance expenses, be first applied
each year to such debt service requirements before requiring payments by the
carriers pursuant to paragraph 1 above. 
In the foregoing circumstances and as long as any of the aforesaid Bonds
are outstanding, Lessor shall use its best efforts to operate or lease the
Airport properties so as to produce sufficient revenues to satisfy the
requirements of the aforesaid Bonds.  If
under such circumstances the Airport properties or portion thereof are sold by
Lessor, the proceeds of such sale(s) shall first be used (or set aside) and be
applied to current and future debt service requirements or to retire the
aforesaid Bonds before requiring payments by the carriers pursuant to
subparagraph 1 above.

 

H.            PAYMENT OF
TERMINAL CHARGES AND ACTIVITY FEES:

 

1.             INFORMATION ON SIGNATORY AIRLINES’ OPERATIONS.

 

(a)           Not
earlier than 120 days nor later than 90 days prior to the last day of each
Fiscal Year, each Signatory Airline shall furnish Lessor with an estimate for
the next ensuing Fiscal Year of (i) the total Approved Maximum Landing
Weight of all aircraft to be landed at the Airport by such Signatory Airline, (ii) the
total number of such Signatory Airline’s domestic and international enplaned
passengers, (iii) the number of domestic and the number of international
deplaned passengers of such Signatory Airline 

 

26

 

that are estimated to use each of the Shared Use
Domestic South Terminal Space, the Shared Use International South Terminal
Space, the Shared Use Swing South Terminal Space, the Shared Use Domestic North
Terminal Space, the Shared Use International North Terminal Space and the
Shared Use Swing North Terminal Space, as the case may be, (iv) the total
number of arriving and departing domestic and international flights of such
Signatory Airline, and (v) in the case of Lessee only, the South Terminal
O&M Expenses to be reimbursed to Lessee pursuant to Article VII.B.

 

(b)           No later
than the 20th day of each calendar month, each Signatory Airline shall transmit
to Lessor a report, certified by such Signatory Airline, setting forth (i) the
actual number of such Signatory Airline’s enplaned passengers and the actual
number of such Signatory Airline’s deplaned passengers for the preceding
calendar month that used each of the Shared Use Domestic South Terminal Space,
the Shared Use International South Terminal Space, the Shared Use Swing South
Terminal Space, the Shared Use Domestic North Terminal Space, the Shared Use
International North Terminal Space and the Shared Use Swing North Terminal
Space, as the case may be, (ii) the actual aggregate Approved Maximum
Landing Weight for all aircraft operated by such Signatory Airline and landed
at the Airport during the preceding calendar month, (iii) the actual
number of such Signatory Airline’s arriving and departing domestic and
international flights for the preceding month, 

 

27

 

and (iv) in the case of Lessee only, the South
Terminal O&M Expenses actually paid by Lessee pursuant to Article VII.B.
for the preceding calendar month.

 

2.             PROJECTION OF RENTALS AND ACTIVITY FEES.

 

(a)           Not later
than 60 days prior to the end of each Fiscal Year, Lessor shall furnish each
Signatory Airline with a projection and estimated calculation for the next
ensuing Fiscal Year pursuant to Article III.C., D. and E. (the “Projection”)
of the South Terminal Rental Rate, the North Terminal Rental Rate, such
Signatory Airline’s Terminal Charges, the Activity Fee Rate per thousand pounds
of Approved Maximum Landing Weight and such Signatory Airline’s Activity
Fees.  The Projection shall be based on
Lessor’s estimates of O&M Expenses, Bond Debt Service, Other Available
Moneys and Revenues for such Fiscal Year. 
Such Projection will include Lessor’s proposed Airport budget (including
all sources of revenue and all expenses) for the next ensuing Fiscal Year,
together with other information relevant thereto reasonably requested by
Lessee.

 

(b)           The
projected South Terminal Rental Rate shall be calculated in accordance with the
provisions of Article III.C.3., and shall be an amount equal to the result
of such calculation, rounded up to the nearest dollar.

 

(c)           The
projected North Terminal Rental Rate shall be calculated in accordance with the
provisions of Article III.C.6., and shall be an amount equal to the result
of such calculation, rounded up to the nearest dollar.

 

28

 

(d)           Lessor
shall give due consideration to any suggestions and comments made by Lessee
with respect to the Projection.  The
Projection, as revised by Lessor after considering Lessee’s suggestions and
comments, shall be the basis for computing the Signatory Airlines’ Terminal
Charges and Activity Fees for the next ensuing Fiscal Year unless and until
otherwise revised pursuant to paragraph 4 below.

 

3.             PAYMENT OF TERMINAL CHARGES AND ACTIVITY FEES.

 

(a)           Not later
than the 20th day of each calendar month of each Fiscal Year, Lessee shall pay
Lessor, without demand or invoice, an amount equal to (i) 1/12 of Lessee’s
aggregate Terminal Charges for such Fiscal Year, computed in accordance with Article III.C
and Article III.D, and based on the Projection, as such projection may
have been revised pursuant to paragraph 4 below, plus (ii) Lessee’s
aggregate Activity Fees for the preceding calendar month, calculated by
multiplying the total Approved Maximum Landing Weight for aircraft landed by
Lessee at the Airport during the preceding calendar month by the Activity Fee
Rate for such Fiscal Year, computed in accordance with Article III.E., and
based on the Projection, as such projection may have been revised pursuant to
paragraph 4 below.

 

(b)           Lessee may
net from the payments to be made to Lessor pursuant to paragraph (a) above
the amount of South Terminal O&M Expenses actually paid by Lessee pursuant
to Article VII.B. for the preceding calendar month.

 

29

 

4.             ADJUSTMENT
OF TERMINAL CHARGES AND ACTIVITY FEES.  Not
later than the 150th day of each Fiscal Year, Lessor shall furnish each
Signatory Airline with a revised Projection (the “Mid-Year Projection”), which
shall reflect the most recently available information with regard to the
amounts actually incurred or realized during such Fiscal Year for Bond Debt
Service, O&M Expenses and the Revenue Requirement, together with the most
recently available information with regard to Terminal Charges, Activity Fees,
Facilities Use Fees, Authority-Controlled Airline Space Revenues, North
Terminal Rental Revenue and South Terminal Rental Revenue actually received by
Lessor.  Lessor shall give due
consideration to any suggestions and comments made by Lessee with respect to
the Mid-Year Projection.  If the Mid-Year
Projection, as revised by Lessor after considering Lessor’s suggestions and
comments, indicates that aggregate payments of Terminal Charges and Activity
Fees at the then-existing rates would result in an overpayment or underpayment
of the aggregate amount required to be generated by Lessor through Activity
Fees, Lessor shall revise the Projection and adjust the rates set forth therein
for such Fiscal Year to conform to the Mid-Year Projection.

 

5.             PRELIMINARY ANNUAL SETTLEMENT AND FINAL AUDIT.

 

(a)           Within 60
days after the end of each Fiscal Year, Lessor will furnish each Signatory
Airline with a preliminary report, containing a preliminary calculation, based
on actual data, in accordance with this Agreement, of the South Terminal Rental
Rate, the North Terminal Rental Rate and the Activity Fee Rate, and the
Terminal Charges and Activity Fees estimated 

 

30

 

to be chargeable to such Signatory Airline for the
preceding Fiscal Year, and setting forth the amount of Terminal Charges and
Activity Fees actually paid by such Signatory Airline for such period.

 

(b)           If such
report indicates that the aggregate of such rentals, fees and charges actually
paid by Lessee were greater than the aggregate amounts chargeable to Lessee,
then within 90 days after the end of such Fiscal Year Lessor shall refund, in
cash, 80% of any such estimated excess to Lessee.  If such report indicates that the aggregate
of such fees and charges paid by Lessee was less than the amounts chargeable to
Lessee, then within 90 days after the end of such Fiscal Year Lessee shall pay
to Lessor 80% of the amount of any such estimated deficiency.  Interest shall accrue at a rate of 7% per
annum, and be payable by Lessee in cash, on any portion of any deficiency not
paid by Lessee when due.  Interest shall
accrue at a rate of 7% per annum, and be payable by Lessor in cash, on any
portion of any excess not refunded to Lessee when due.

 

(c)           By the
180th day of each Fiscal Year, Lessor shall furnish to each Signatory Airline a
copy of an annual audit report prepared by a nationally recognized accounting
firm, covering the operation of the Airport for the preceding Fiscal Year (the “Final
Audit”).  Lessor shall prepare a
calculation, based on the Final Audit, in accordance with this Agreement, of
all Terminal Charges and Activity Fees chargeable to Lessee for the preceding
Fiscal Year, and setting forth the amounts actually paid by Lessee for such
period, taking into account all payments and refunds

 

31

 

pursuant to paragraph 5.(b) above.  If aggregate fees and charges actually paid
by Lessee were greater than the aggregate amount chargeable to Lessee, then
within 30 days after delivery of the Final Audit Lessor shall refund the amount
of such overpayment to Lessee.  If
aggregate fees or charges actually paid by Lessee were less than the aggregate
amount chargeable to Lessee, then within 30 days after receipt of the Final
Audit Lessee shall pay to Lessor the amount of any such deficiency.

 

(d)           The
foregoing provisions of paragraphs 5.(b) and 5.(c) notwithstanding,
for purposes of calculating the amount of end-of-year refunds by Lessor or
end-of-year payments by the Signatory Airlines, as the case may be, for each
Fiscal Year, (i) if the calculation of the South Terminal Rental Rate for
such Fiscal Year would result in an increase or decrease to the projected South
Terminal Rental Rate for such Fiscal Year of $1.00 or less, the South Terminal
Rental Rate used for purposes of determination of such refunds or payments, as
the case may be, shall be the projected South Terminal Rental Rate, and (ii) if
the calculation of the North Terminal Rental Rate for such Fiscal Year would
result in an increase or decrease to the projected North Terminal Rental Rate
for such Fiscal Year of $1.00 or less, the North Terminal Rental Rate used for
purposes of such refunds or payments, as the case may be, shall be the
projected North Terminal Rental Rate.

 

(e)           The
payment by Lessee of any fees and charges hereunder and the acceptance by
Lessor thereof for any Fiscal Year shall not preclude 

 

32

 

either Lessee or Lessor from questioning, within a
period of one (1) year from the date of receipt by Lessee of the Final
Audit for such Fiscal Year, the accuracy of any report or statement on the
basis of which such payment was made, or preclude Lessor from making any claim
against Lessee for any additional amount payable by Lessee, or preclude Lessee
from making any claim against Lessor for the return of any excess amount paid
by Lessee.

 

I.              SUPPLEMENTAL CAPITAL COST PAYMENTS: 
In addition to all other rentals and
charges payable hereunder by Lessee, Lessee shall pay the following annual Bond
Debt Service charges, which shall be billed on a monthly basis in advance each
month, in respect of certain projects that were constructed for the benefit of
Lessee in the Existing Terminal Facilities pursuant to that certain Airport
Agreement dated February 26, 1959, as amended, to which Lessor and the
County were at one time parties:

 

1.             $463,984.20 for the United Airlines relocation project;

 

2.             $12,015.00 for the Concourse G elevator project;

 

3.             $254,158.68 for the extension to Concourse C;

 

4.             $1,206,095.64 for the new Concourse G and related projects.

 

Lessee will pay the above annual Bond Debt Service on
that portion of the Bonds issued by the County in 1996 and Bonds issued by
Lessor in 2003 (which refunded Bonds issued by the County in 1993) even though
the term of such debt service obligation extends beyond the term of the lease
of such temporary facilities.  The
foregoing notwithstanding, the parties acknowledge that the aforesaid amounts
will be 

 

33

 

adjusted if and when the coverage requirements change
and/or the Bonds to which such Bond Debt Service charges relate are refinanced
or refunded.

 

ARTICLE IV

LESSOR COVENANTS; CAPITAL EXPENDITURES

 

A.            Lessor covenants:

 

1.             That it will provide efficient
management and operation of the Airport on the basis of sound business
principles and that it will not incur expense for Airport operation,
maintenance and administration in excess of the amounts reasonably and
necessarily required therefor.

 

2.             That it shall operate the Airport
in a manner so as to produce revenues from concessionaires, tenants, and users
of a nature and amount which would be produced by a reasonably prudent operator
of an airport.

 

3.             That it will comply in all respects
with the revenue retention requirement in § 511(a)(12) of the Airport and
Airway Improvement Act of 1982, as amended, now codified at 49 U.S.C. § 47107(b).

 

4.             That it will utilize competitive
bidding procedures for the award of all maintenance and operation contracts and
construction contracts for the Airport.

 

5.             That all senior appointed Airport
officials shall have professional qualifications commensurate with the
responsibilities of the jobs to be performed by such officials.

 

6.             That it will take all necessary
actions to assure that the personnel of Lessor, whose wages and benefits are
included in O&M Expenses, are actually performing work for the Airport
as represented by such inclusion.

 

34

 

7.             That it will operate Willow Run
Airport only as a reliever airport for the Airport with no scheduled air
carrier or public charter passenger service.

 

8.             That in each Fiscal Year it will
use PFCs to pay PFC-eligible Bond Debt Service due during such Fiscal Year in
accordance with the provisions of Exhibit H.

 

9.             That in each Fiscal Year it will
make the following deposits into the following funds and accounts in addition
to or in furtherance of those fund deposits required by any Bond Ordinance:

 

(a)              Three Hundred Fifty
Thousand Dollars ($350,000) shall be deposited annually into the Authority
Discretionary Fund;

 

(b)             Deposits shall be
made into the Bond Reserve Account, the Junior Lien Bond Reserve Account, the
Operation and Maintenance Reserve Fund and the Renewal and Replacement Fund
pursuant to the provisions of applicable Bond Ordinances; and

 

(c)              (i) Amounts
includible each Fiscal Year in the Revenue Requirement pursuant to item (d) of
the definition thereof in Article IIIE.3, (ii) up to $2.5 million of
revenue received by Lessor each Fiscal Year that is attributable to an automated
vehicle identification program for the entire Airport, and (iii) any
proceeds received by Lessor during such Fiscal Year from the sale of the
Airport property shown on Exhibit F,
shall be deposited into the Airport Development Fund, to be established and
held by Lessor for the purposes described in Article IVD.2 below.

 

35

 

10.           That it will subject all sales by it
of the Airport property shown on Exhibit F to
noise easements in the form customarily used by Lessor as part of its noise
mitigation program.

 

B.            Lessor may issue Bonds to finance the costs (including
all reasonable costs incidental to the issuance and sale of such bonds) of
capital projects and may include the Bond Debt Service (including, among other
things, coverage requirements) on such Bonds in Lessee’s fees hereunder only
after first receiving approval of a Weighted Majority for such capital
projects.

 

C.            Lessor may assign, in accordance with any Bond Ordinance
and the terms of this Agreement, certain of its interests in and pledge certain
revenues and receipts of the Airport as security for payment of the principal
of, premium, if any, and interest on Bonds. 
Except as set forth in the preceding sentence and except for residential
property acquired by the Airport pursuant to the Airport’s noise mitigation
program, Lessor shall not pledge, sell, convey, mortgage, encumber, assign or
otherwise transfer the Airport or any portion thereof during the term of this
Agreement.

 

D.            The following limitations shall apply to expenditures
from the below-described funds and accounts:

 

1.                                       Expenditures
to be made from the Authority Discretionary Fund.  Lessor may make expenditures from the
Authority Discretionary Fund without approval by the air carriers for any
lawful Airport-system purpose, except that expenditures for Willow Run Airport
shall only be made if Lessor is in compliance with its covenant in Article IV.A.7.

 

36

 

2.                                       Expenditures
to be made from Airport Development Fund. 
Lessor may make capital expenditures from the Airport Development Fund
without approval by the air carriers for any lawful Airport-system related
purpose, provided that Lessor shall not pledge the Airport Development Fund as
security for any Bond or other debt of Lessor without approval of a
Majority-in-Interest of the air carriers, and provided, further, that capital
expenditures for Willow Run Airport shall only be made if Lessor is in
compliance with its covenant in Article IV.A.7.

 

E.             In order to permit Lessor to issue Bonds in compliance
with applicable securities laws, Lessee agrees that, upon the request of
Lessor, Lessee shall provide to Lessor such information with respect to Lessee
as Lessor deems reasonably necessary in order for Lessor to issue Bonds in
compliance with the requirements of Rule 15c-2(12) of the Securities and
Exchange Commission.

 

ARTICLE V

CONSTRUCTION, MAINTENANCE AND REPAIR BY LESSEE

 

Lessee may construct or install at its own expense any
equipment, improvements and facilities, and any additions thereto, upon all or
any part of the premises hereunder leased to Lessee for its preferential use
and may construct or install at its own expense, any equipment, improvements
and facilities authorized under Article I hereof upon any Airport property
not leased to Lessee for its preferential use at such locations as may be
approved by Lessor.  Plans and
specifications of any proposed construction or installation of improvements and
facilities (including any substantial alteration or addition thereto) shall be
submitted to and receive the prior approval of Lessor.  Lessor shall have the right to refuse
approval of such plans and specifications if the external appearance of such
improvements and facilities does not meet Lessor’s reasonable 

 

37

 

requirements for substantial
uniformity of appearance of improvements and facilities on the Airport, or, if
the type or time of construction or installation, or the location thereof does
not meet Lessor’s reasonable requirements for safe use of the Airport and
appurtenances by other authorized persons. 
Lessor may, at its own cost, inspect any such construction or
installation.

 

Lessee shall keep and maintain all premises hereunder
leased to Lessee for its preferential use and all such improvements and
facilities and additions thereto, whether constructed or installed by it upon
premises hereunder leased to it for its preferential use or upon Airport
property not leased to it for its preferential use, in good condition and
repair, reasonable wear and tear excepted, and damage by fire or other casualty
excepted.  Lessee shall not be liable for
the repair or restoration of damage to premises hereunder leased where such
damage results from fire, structural defect, or other casualty for which Lessor
has obtained and there is in effect adequate insurance protection covering such
fire or other casualty.  No restriction
shall be placed upon Lessee as to the architects, builders or contractors who
may be employed by it in connection with any construction, installation,
alteration, repair or maintenance of any such equipment, improvements,
facilities and additions.

 

Lessee shall keep such premises leased to Lessee for
its preferential use in a sanitary and sightly condition, and shall provide all
necessary janitor services with respect thereto.

 

In the event that Lessee fails to perform for a period
of thirty days after written notice from Lessor so to do, any obligation
required by this Article V to be performed by Lessee at Lessee’s cost, or
fails to correct any construction or installation by it of any 

 

38

 

equipment, improvements or
facilities not completed in accordance with the plans and specifications
approved by Lessor within thirty days of Lessor’s notice to Lessee of a
deviation from such plans and specifications and request for appropriate
changes in such construction and installation, Lessor, upon the expiration of
such thirty day period, may, but shall not be obligated to, enter upon the
premises involved and perform such obligation of Lessee, charging Lessee the
reasonable cost and expense thereof, and Lessee agrees to pay Lessor such
charge in addition to any other amounts payable by Lessee hereunder; provided,
however, that if Lessee’s failure to perform any such obligation adversely
affects or endangers the health or safety of the public or of employees of
Lessor, and if Lessor so states in its aforesaid notice to Lessee, Lessor may
but shall not be obligated to perform such obligation of Lessee at any time
after the giving of such notice and without awaiting the expiration of said
thirty day period, and charge to Lessee, and Lessee shall pay, as aforesaid,
the reasonable cost and expense of such performance.  If Lessor shall perform any of Lessee’s
obligations in accordance with the provisions of this section, Lessor shall not
be liable to Lessee for any loss of revenues to Lessee resulting from such
performance.

 

ARTICLE VI

RIGHT OF ENTRY BY LESSOR

 

Lessor may enter upon the premises now or hereafter
leased exclusively or preferentially to Lessee hereunder at any reasonable time
for any purpose necessary, incidental to, or connected with the performance of
its obligations hereunder, in the exercise of its governmental functions, or in
the event of any emergency.

 

39

 

ARTICLE VII

MAINTENANCE, OPERATION AND REPAIR BY LESSOR

 

A.            Lessor shall operate, maintain and keep in good repair
the areas and facilities described in Article I hereof.  Lessor shall keep the Airport free from
obstruction, including, without limitation, the clearing and removal of snow,
vegetation, stones and other foreign matter from the runways, taxiways, and
loading areas and areas immediately adjacent to such runways, taxiways and
loading areas, as may be reasonably necessary for the safe, convenient and
proper use of the Airport by Lessee, and shall maintain and operate the Airport
in all respects in a manner at least equal to the highest standards or ratings
issued by the FAA for airports of similar size and character and in accordance
with all rules and regulations of the FAA.

 

Lessor shall provide and supply adequate heat to and
air conditioning for the premises hereunder leased to Lessee for its
preferential or shared use, and shall provide reasonable illumination and
drinking water in the public and passenger space in the South Terminal and the
North Terminal and, except as otherwise provided herein, for the areas and
facilities adjacent thereto. Lessor shall also provide adequate lighting for
the vehicular parking spaces and adequate field lighting on and for the
Airport, including, without limiting the generality hereof, boundary lights,
landing lights, flood lights and beacons. 
Lessor shall also provide all janitor services and other cleaners
necessary to keep the vehicular parking spaces and the landing field of the
Airport at all times clean, neat, orderly, sanitary and presentable.  The cost of the items required to be provided
by Lessor in this paragraph shall be included in O& M Expenses.

 

40

 

Lessor shall provide adequate guards, at such times as
may be required by the circumstances, at all parts of the Airport that Lessee
is entitled to use jointly and in common with others.

 

In the event that Lessor fails to perform for a period
of thirty days after written notice from Lessee so to do, any obligation
required by this Article VII to be performed by Lessor at Lessor’s cost,
Lessee, upon the expiration of such thirty day period, may but shall not be
obligated to perform such obligation of Lessor and deduct the reasonable cost
to Lessee of performing such obligation from any rentals, fees or charges
subsequently becoming due from Lessee to Lessor under this Agreement; provided,
however, that if Lessor’s failure to perform any such obligation adversely
affects or endangers the health or safety of Lessee or of any of any of its
employees, agents, passengers, guests, patrons, invitees, or its or their
suppliers of materials or furnishers of service or any of its or their
property, and if Lessee so states in its aforesaid notice to Lessor, Lessee may
but shall not be obligated to perform such obligation of Lessor at any time
after the giving of said notice and without awaiting the expiration of said
thirty day period, and Lessee may deduct its reasonable costs of performance
thereof from any rentals, fees or charges as aforesaid.

 

Lessor shall have the right to relocate at its cost
any equipment, improvements and facilities constructed or installed by Lessee
upon the Airport property not leased hereunder to Lessee for its exclusive use
or preferential use pursuant to authorization therefor under Article I
hereof; provided, however, that such relocation shall be performed in such a
manner and at such times as are calculated to reduce to the minimum possible
under the circumstances any interference with Lessee’s operations at 

 

41

 

the Airport, that the relocated
equipment, improvements and facilities shall, when completed, be commensurate
with the equipment, improvements and facilities existing prior to such
relocation.

 

B.            Notwithstanding the foregoing, Lessor hereby appoints Lessee
as Lessor’s agent for the performance of, and Lessee agrees to and undertakes
to perform, the Assigned Operations and Maintenance Functions to be performed
by Lessor pursuant to this Article VII with respect to the South Terminal,
pursuant to the following agreements:

 

1.             Lessee agrees to perform the Assigned Operations and
Maintenance Functions in a manner and to the standards as are established for
Lessor in this Article VII.

 

2.             In the event that Lessee fails to perform, for a period
of 30 days after written notice from Lessor so to do, any obligation required
by this Article VII to be performed by Lessee at Lessee’s cost, Lessor,
upon expiration of such 30 day period, may, but shall not be obligated to,
enter upon the premises involved and perform such obligation of Lessee,
provided, however, that if Lessee’s failure to perform any such obligation
adversely affects, or endangers the health or safety of the public or of
employees of Lessor, and if Lessor so states in its aforesaid notice to Lessee,
Lessor may, but shall not be obligated to, perform such obligation of Lessee,
at any time after the giving of such notice and without awaiting the expiration
of said 30 day period.

 

3.             As required by Article IIIH.1.(b)(iv) above,
Lessee shall render a detailed statement for reimbursement of the costs
incurred by Lessee in connection with 

 

42

 

the Assigned Operations
and Maintenance Functions undertaken by Lessee under this Article VII
within 20 days after the end of each month. 
Lessee also shall be entitled to reimbursement from Lessor for any costs
incurred by Lessee for salaries and benefits of Lessee’s employees exclusively
assigned to the Assigned Operations and Maintenance Functions and who are based
at, and spend substantially all of their work time at, the Airport.  Lessor shall be entitled to audit all monthly
statements of costs rendered by Lessee, and Lessee will make available to
Lessor all of the records supporting such statements.  In lieu of reimbursement payments by Lessor
to Lessee of Lessee’s aforesaid costs, Lessee shall be entitled to net the
reimbursement amounts against payments due Lessor pursuant to Article III.H.3
above.   All such costs shall be deemed
to be South Terminal O&M Expenses, and includible as such for all purposes
under this Agreement.

 

4.             In the performance of the functions undertaken pursuant
to this Article VII by contractor or third party forces engaged by Lessee,
Lessee shall require payment of wage rates and provision of benefits comparable
to the wage rates and benefits paid and provided to workers engaged in similar
skilled trades work for building maintenance projects in the Detroit
Metropolitan Area.

 

5.             Lessor shall obtain the concurrence of Lessee for all
modifications to the South Terminal that will adversely affect South Terminal
building-wide systems or interior building signage.

 

43

 

ARTICLE VIII

UTILITY SERVICES

 

Lessor shall, directly or by arrangement with appropriate
utility companies or suppliers, supply Lessee with electrical current, gas,
water, telephone and sewerage facilities. 
Lessor shall also supply electrical current to the ramp areas to be used
by Lessee in common with others.

 

ARTICLE IX

SPACE FOR UNITED STATES WEATHER BUREAU, POSTAL SERVICE, 

FEDERAL AVIATION ADMINISTRATION, AND EXPRESS AGENCIES

 

Lessor shall, upon request of such persons or
governmental or express agencies make available reasonable and convenient space
and facilities at the Airport for the use of the United States Postal Service,
or any person required to use such space by regulations thereof, and for the
use of an express agency or agencies at a reasonable rental charge to such
persons, governmental agency and express agencies; and Lessor shall in like
manner make available reasonable and convenient space and facilities at the
Airport for the use of the United States Weather Bureau and FAA.

 

ARTICLE X

AIRLINE CLUBS

 

Any other provision of this Agreement to the contrary
notwithstanding, Lessee shall have the right to operate directly or through a
designee, assignee or sub-lessee, member-only club facilities within such
appropriate space leased to it in the South Terminal for such purposes, which
club facilities shall be authorized to serve food and beverages; provided,
however, food and beverages served in such member-only club 

 

44

 

facilities will be obtained by
Lessee from an Airport food concessionaire to the extent that same are available
for purchase from an Airport food concessionaire.

 

ARTICLE XI

RULES AND REGULATIONS

 

Lessor shall adopt and enforce reasonable rules and
regulations and any reasonable amendments thereto, with respect to the use of
the Airport, which shall provide for the safety of those using the Airport, and
Lessee agrees to observe and obey the same; provided, that such rules and
regulations shall be consistent with safety and with rules, regulations and
orders of the FAA with respect to aircraft operations at the Airport; and
provided further, that such rules and regulations shall not be
inconsistent with the procedures prescribed or approved from time to time by
the FAA with respect to the operation of Lessee’s aircraft at the Airport.  Lessee shall be given notice of all
amendments to rules and regulations as are from time to time adopted by
Lessor and no such amendment shall be effective as to Lessee until thirty (30)
days after the date of such notice unless Lessor states in said notice that the
amendment is of an emergency nature, in which case the amendment shall be
immediately effective.

 

ARTICLE XII

CONTROL OF RATES, FARES OR CHARGES

 

Lessor shall have no control whatsoever over the rates
or charges that Lessee may prescribe for any of its services to, from, through
or at the Airport, or between the Airport and Lessee’s ticket offices or other
stopping places in the City of Detroit or the County of Wayne, or elsewhere,
nor shall Lessor, except to the extent reasonably necessary to prevent physical
damage or injuries to persons or property at the Airport, in any manner
whatsoever, control the type, design, style, figuration, weight, allowable 

 

45

 

loads, specifications or means
of propulsion of, or use of space on, the aircraft Lessee may operate to and
from said Airport, or the point of origin or destination of flights operated by
Lessee to or from the Airport.

 

ARTICLE XIII

DAMAGE OR DESTRUCTION OF PREMISES

 

Notwithstanding the provisions of Article V as to
maintenance and repair of premises by Lessee, if any terminal at the Airport
shall be partially damaged by fire, the elements, the public enemy or other
casualty but not rendered untenantable, the same shall be repaired with due
diligence by Lessor at its own cost and expense.  In case any such terminal is so damaged or
destroyed by fire, the elements, the public enemy or other casualty, that it
will or does become untenantable, the said building shall be repaired, reconstructed
or restored as the case may be, with due diligence by Lessor at its own cost
and expense, and the rent payable hereunder with respect to said building shall
be paid up to the time of such damage or destruction and shall thenceforth
abate until such time as the said building shall be made tenantable.  Lessor shall maintain insurance sufficient to
enable it to fulfill its obligations under this Article.

 

In the event that the Airport or any other premises
herein leased are rendered untenantable or unusable because of the condition
thereof, there shall be a reasonable and proportionate abatement of the
rentals, fees and charges provided for herein during the period that the same
are so untenantable or unusable.

 

46

 

ARTICLE XIV

CANCELLATION BY LESSOR

 

Lessor may cancel this Agreement by giving Lessee
sixty (60) days advance written notice to be served as hereinafter provided,
upon or after the happening of any one of the following events:

 

(a)           The
filing by Lessee of a voluntary petition in bankruptcy;

 

(b)           The
institution of proceedings in bankruptcy against Lessee and the adjudication of
Lessee as a bankrupt pursuant to such proceedings if such adjudication shall
remain unvacated or unstayed for a period of at least sixty (60) days;

 

(c)           The
taking by a court of competent jurisdiction of Lessee and its assets pursuant
to proceedings brought under the provisions of any Federal reorganization act
if the judgment of such court shall remain unvacated or unstayed for a period
of at least sixty (60) days;

 

(d)           The
appointment of a receiver of Lessee’s assets if such appointment by a court of
competent jurisdiction shall remain unvacated or unstayed for a period of at
least sixty (60) days;

 

(e)           The
divestiture of Lessee’s estate herein by other operation of law;

 

(f)            The
abandonment by Lessee of its conduct of Air Transportation at the Airport;

 

(g)           If
the Lessee shall be prevented for a period of sixty (60) days (after exhausting
or abandoning all appeals) by any action of any governmental authority, board,
agency or officer having jurisdiction thereof from conducting Air
Transportation at the Airport unless it is so prevented from 

 

47

 

conducting Air Transportation, either (1) by
reason of the United States or any agency thereof acting directly or
indirectly, taking possession of and operating, in whole or in substantial
part, the premises and space leased or operated by the Lessee, or premises
required for the actual operation of Lessee’s aircraft to and from the Airport,
or (2) if all or a substantial part of the premises and space leased by
the Lessee shall be acquired in the manner described in Article XXIV
hereof;

 

(h)           The
default by Lessee in the performance of any covenant or agreement herein required
to be performed by Lessee and the failure of Lessee to remedy such default for
a period of sixty (60) days after receipt from Lessor of written notice to
remedy the same; provided, however, that no notice of cancellation, as above
provided, shall be of any force or effect if Lessee shall have remedied the
default prior to receipt of Lessor’s notice of cancellation;

 

Notwithstanding anything to the contrary herein
contained, Lessor shall not have the right to cancel, or give notice of
cancellation of, this Agreement solely by reason of Lessee’s failure or refusal
to pay any part of the rentals, fees or charges provided for in this Agreement
if, within sixty (60) days after such failure or refusal, Lessee shall have
given to Lessor a written notice stating that Lessee in good faith predicates
such failure or refusal upon either or both of the following: (1) any
provision of this Agreement granting to Lessee in specified events a reduction
in or abatement of any rentals, fees 

 

48

 

or charges payable by Lessee to
Lessor hereunder, or (2) any provision of this Agreement authorizing
Lessee in specified events to deduct from any such rentals, fees or charges,
the reasonable cost to Lessee of performing any obligation or obligations
required by this Agreement to be performed by Lessor.

 

No waiver or default by Lessor of any of the terms,
covenants or conditions hereof to be performed, kept and observed by Lessee
shall be construed to be or act as a waiver of any subsequent default of any of
the terms, covenants and conditions herein contained to be performed, kept and
observed by Lessee.  The acceptance of
rental by Lessor for any period or periods after a default of any of the terms,
covenants and conditions herein contained to be performed, kept and observed by
Lessee, shall not be deemed a waiver of any right on the part of Lessor to
cancel this Agreement for failure by Lessee to so perform, keep or observe any
of the terms, covenants or conditions of this Agreement.

 

ARTICLE XV

CANCELLATION BY LESSEE

 

Lessee, in addition to any other right of cancellation
herein given to Lessee or any other rights to which Lessee may be entitled by
law or otherwise, may, so long as Lessee is not in default in any payments to
Lessor hereunder, cancel this Agreement by giving Lessor sixty (60) days
advance written notice to be served as hereinafter provided, upon or after the
happening of any one of the following events:

 

(a)           The
failure or refusal, for reasons beyond the control of Lessee, of the FAA, at
any time during the term of this Agreement or any renewal thereof, to permit
Lessee to operate into or from the Airport with any type of aircraft which
Lessee may be licensed to operate into or from other airports of like size and
character and which Lessee may reasonably desire to operate into or from the
Airport;

 

49

 

(b)           Issuance
by any court of competent jurisdiction of an injunction in any way
substantially preventing or restraining the use of the Airport or any part
thereof necessary for Lessee’s operations, and the remaining in force of such
injunction for a period of at least sixty (60) days at least after Lessor has
exhausted or abandoned all appeals;

 

(c)           The
inability of Lessee due to circumstances beyond its control to use, for a
period in excess of ninety (90) days, the Airport or to exercise any rights and
privileges granted to Lessee hereunder and necessary to its operations because
of any law or ordinance, or because of any order, rule, regulation or other
action or any non-action of the FAA or any other governmental authority, or,
because of earthquake, other casualty (excepting fire) or because of Acts of
God or the public enemy;

 

(d)           The
default by Lessor in the performance of any covenant or agreement herein
required to be performed by Lessor and the failure of Lessor to remedy such
default for a period of ninety (90) days after receipt from Lessee of written
notice to remedy the same; provided, however, that no notice of cancellation,
as above provided, shall be of any force or effect if Lessor shall have
remedied the default prior to receipt of Lessee’s notice of cancellation.

 

Lessee’s performance of all or any part of this
Agreement for or during any period or periods after a default of any of the
terms, covenants and conditions herein contained to be performed, kept and
observed by Lessor, shall not be deemed a waiver of any right on the part of
Lessee to cancel this Agreement for failure by Lessor so to 

 

50

 

perform, keep or otherwise
observe any of the terms, covenants, or conditions hereof to be performed, kept
and observed by Lessor, or be construed to be or act as a waiver by Lessee of
any subsequent default of any of the terms, covenants and conditions herein
contained to be performed, kept and observed by Lessor.

 

ARTICLE XVI

SUSPENSION AND ABATEMENT

 

In the event that Lessor’s operation of the Airport or
Lessee’s operation at the Airport should be restricted substantially by action
of any court of competent jurisdiction or by action of the federal government
or any agency thereof, or by action of the State of Michigan or any agency
thereof, then either party hereto shall have the right, upon written notice to
the other, to a suspension of this Agreement and an abatement of a just
proportion of the services and facilities to be afforded hereunder, or a just
proportion of the payments to become due hereunder, from the time of such
notice until such restriction shall have been remedied and normal operations
restored.  Ascertainment of all matters
under this Article shall be determined by agreement or by arbitration as
provided in Article XVII hereof.

 

ARTICLE XVII

ARBITRATION

 

If any controversy or claim should arise out of,
under, or relating to, the provisions of Articles III or XVI of this Agreement,
then either party may by notice in writing to the other, submit the controversy
or claim to arbitration.  The party
desiring such arbitration shall give written notice to that effect to the other
party, specifying in said notice the name and address of the person designated
to act as arbitrator on its behalf. 
Within fifteen (15) days after the service of such notice, the other party
shall 

 

51

 

give written notice to the
first party specifying the name and address of the person designated to act as
arbitrator on its behalf.  The
arbitrators thus appointed shall appoint a third disinterested person of recognized
competence in such field, and such three arbitrators shall as promptly as
possible determine the controversy or claim.

 

If the two arbitrators appointed by the parties shall
be unable to agree upon the appointment of a third arbitrator within fifteen
(15) days after the appointment of the second arbitrator, then within fifteen
(15) days thereafter either of the parties upon written notice to the other
party, on behalf of both, may request the appointment of a disinterested person
of recognized competence in the field involved as the third arbitrator by the
then chief judge of the United States District Court for the Eastern District
of Michigan, Southern Division, or upon his failure, refusal or inability to
act, may request such appointment by the then miscellaneous presiding judge of
the Circuit Court (Third Judicial Circuit) of the State of Michigan, County of
Wayne, or, upon his failure, refusal or inability to act, may apply to the
Circuit Court (Third Judicial Circuit) of the State of Michigan, County of
Wayne for the appointment of such third arbitrator, and the other party shall
not raise any question as to the court’s full power and jurisdiction to
entertain the application and make the appointment. If none of the parties
shall so request such appointment of a third arbitrator within fifteen (15)
days after the expiration of the period within which the two arbitrators are to
appoint a third arbitrator as hereinabove provided, the rights of each party to
arbitrate the matter shall be deemed to have been waived and either of the
parties may proceed to enforce whatever remedies, legal or otherwise, it may
otherwise have.

 

52

 

The decision in which any two of the three arbitrators
so appointed and acting hereunder concur shall in all cases be binding and
conclusive upon the parties.  Each party
shall pay the fees and expense of the arbitrator appointed by such party and
one-half of the other expense of the arbitration properly incurred hereunder.

 

Each of the parties hereto agree that if, in the
opinion of the other party, any separate agreement is required by law in order
to effectuate or enforce the arbitration provisions hereinabove contained, it
will execute such separate agreement provided that the same is not inconsistent
with the terms and provisions of this Agreement.

 

ARTICLE XVIII

INDEMNITY

 

Lessee agrees to indemnify and hold Lessor harmless
from and against all liability for injuries to persons or damage to property
caused by Lessee’s use and occupancy of or operations at the Airport; provided,
however, that Lessee shall not be liable for any injury, damage or loss caused
by Lessor’s sole negligence or by the joint negligence of Lessor and any person
other than Lessee; and provided further that Lessor shall give to the Lessee
prompt and timely notice of any claim made or suit instituted which in any way,
directly or indirectly, contingently or otherwise, affects or might affect
Lessee, and Lessee shall have the right to compromise and defend the same to
the extent of its own interest.

 

ARTICLE XIX

INSURANCE

 

Lessee, at its own expense and in its own
name, and in Lessor’s name and in the name of the County as additional
insureds, as their interests may appear, shall, at all times during the term of
this Agreement, maintain and keep in effect the following 

 

53

 

policies of insurance issued by
a financially responsible insurance company or companies authorized to do
business in the State of Michigan, insuring Lessee against all liabilities to
the public for loss resulting from injury to persons or damage to property
arising out of or caused by Lessee’s operations, acts or omissions or those of
Lessee’s employees, agents or contractors, subject to the limitations set forth
in Article XVIII hereof in respect of Lessor’s negligence:

 

1.             Commercial General Liability
Insurance, which includes coverage for premises and operations, and a contractual
liability endorsement covering the obligations assumed by Lessee under Article XVIII,
said policy not to include any exclusions from liability other than those
exclusions which are a part of the standard, basic, unamended and unendorsed
commercial general liability policy and, in addition, shall not contain any
exclusion for bodily injury to or sickness, disease or death of any employee of
Lessee which would conflict with or in any way impair coverage under the
contractual liability endorsement.  Said
policy shall provide combined bodily injury and property damage liability
insurance with limits of not less than $5,000,000 per person and $10,000,000
per occurrence.

 

2.             Aviation Public
Liability Insurance:

 

Bodily Injury Liability:

 

	
  For injury or wrongful death per person

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
  For injury
  or wrongful death from any one occurrence

  	
   

  	
  $

  	
  50,000,000

  	
   

  

 

54

 

Property Damage Liability:

 

	
  For all damages arising out of injury to or
  destruction of property in any one occurrence

  	
   

  	
  $

  	
  10,000,000

  	
   

  

 

3.             Workers
Compensation Insurance coverage as required by the laws of the State of Michigan and Employer’s
Liability Insurance in an amount of not less than $500,000.

 

4.              All
Risk Physical Damage Insurance for 100% of the replacement cost of all insurable fixed improvements
located in Lessee’s Preferential South Terminal Space.

 

Each of the above policies shall provide for
at least thirty (30) days advance written notice to Lessor prior to any
cancellation, termination, or material modification of the policy or any part
thereof.  Promptly upon approval of this
Agreement by Lessor’s Board and by the expiration date of any expiring policy,
Lessee must deliver to the Contract Compliance Division of Lessor at Detroit
Metropolitan Wayne County Airport, L. C. Smith Terminal, Mezzanine Level,
Detroit, Michigan 48242, either a certificated copy of each insurance policy
required hereunder or a certificate of insurance as evidence of compliance with
this section.  If, at any time, any of
the policies fail to comply with the provisions of this Section, Lessee shall promptly
obtain new policies complying with this Section.  Compliance with this Section is a
continuing condition to Lessee’s enjoyment of the rights and privileges granted
under this Agreement.  In the event
Lessee fails to maintain and keep in force insurance as required herein, Lessee
will be deemed in default and, at Lessor’s election, shall forewith cease all
operations 

 

55

 

from and at all terminal space
at the Airport, without abatement of rental, until such default is remedied..

 

ARTICLE XX

QUIET ENJOYMENT

 

Lessor agrees that on payment of the rentals, fees and
charges as herein provided and performance of the covenants and agreements on
the part of Lessee to be performed hereunder, Lessee shall peaceably have and
enjoy the leased premises and all the rights and privileges of the Airport, its
appurtenances and facilities granted herein.

 

ARTICLE XXI

 

TITLE TO EQUIPMENT, IMPROVEMENTS

AND FACILITIES ERECTED BY LESSEE

 

It is agreed
that title to any equipment, improvements, and facilities, and any additions
thereto, irrespective of whether the same would otherwise become a fixture
under Michigan law (including without limitation all buildings, hangars,
structures, storage tanks, pipes, pumps, wires, poles, machinery and
air-conditioning equipment), constructed or installed by Lessee upon the
premises leased hereunder to Lessee for its exclusive or preferential use or
upon other Airport property (other than equipment, improvements and facilities
financed by Lessor, whether with the proceeds of Bonds, PFCs, Federal funds or
otherwise), shall remain the property of Lessee, unless it has at any time
during the term of this Agreement by written notice and election, vested title
to all or any part thereof in Lessor. 
Lessee shall have the right at any time during the term of this
agreement, or any renewal or extension hereof, to remove any or all of such
equipment, improvements and facilities, provided Lessee is not at any such time
in

 

56

 

default in its payments
to Lessor hereunder and subject further to Lessee’s obligation to repair all
damage, if any, reasonable wear and tear excepted, resulting from such removal.
If at any time during this Agreement, Lessee has exercised its right to vest
title to such equipment, improvements and facilities in Lessor, it shall no
longer have the right to remove such property. Lessee agrees to remove said
equipment, improvements and facilities at the expiration or other termination
of this Agreement irrespective of whether it has exercised its right of
election to vest title to the same in Lessor, if so requested by Lessor, and,
upon failure so to do, Lessor shall have the right to remove the same and
charge to Lessee the actual cost of such removal and restoration of the site to
its original condition, ordinary wear and tear excepted. Any such equipment,
improvements or facilities not removed by Lessee prior to the expiration or
other termination of this Agreement shall thereupon become the property of Lessor.

 

ARTICLE XXII

SURRENDER OF POSSESSION

 

Upon the expiration or earlier termination of this
Agreement or any renewal hereof, Lessee shall forthwith surrender possession of
the premises in as good condition as when received, reasonable wear and tear,
damage by flood, fire, earthquake, other casualty, Acts of God or the public
enemy, excepted.

 

ARTICLE XXIII

MINERAL RIGHTS

 

It is agreed and understood that all water, gas, oil
and mineral rights in and under the soil are expressly reserved to Lessor.

 

57

 

ARTICLE XXIV

CONDEMNATION

 

Upon the acquisition by condemnation or the exercise
of the power of eminent domain under any Federal or state statute by the
Federal Government, the State of Michigan, or any Federal or state agency or
any other person vested with such power, of a temporary or permanent interest
in all or any part of the Airport, Lessor and Lessee each shall have the
right to appear and file claims for damages, to the extent of their respective
interests, in the condemnation or eminent domain proceedings, to participate in
any and all hearings, trials and appeals therein, and to receive and retain
such amount as they may lawfully be entitled to receive as damages or
payment as a result of such acquisition.

 

ARTICLE XXV

ASSIGNMENT AND SUBLETTING

 

A.                                   Lessee
shall not at any time assign this Agreement or any part hereof, or sublet
any premises now or hereafter leased to Lessee, without the consent in writing
of Lessor, which consent will not be unreasonably withheld; provided, that the
foregoing shall not prevent the assignment of this Agreement to any corporation
with which Lessee may merge or consolidate, or which may succeed to
the business of Lessee. No such subletting, however, shall release Lessee from
its obligations to pay any and all of the rentals, charges, and fees provided
or from any other obligation under this Agreement.

 

B.                                     Except
as provided in Article IIIB.2.(b), Lessor shall not at any time assign
this Agreement or any part hereof, or pledge, sell, convey, mortgage,
encumber, assign 

 

58

 

or otherwise transfer the Airport or any portion
thereof during the term of this Agreement.

 

ARTICLE XXVI

SUBSIDIARY COMPANIES

 

The right to use the premises and facilities leased to
Lessee under Article I hereof, or which it may subsequently be
entitled to use in accordance with the exercise of options pursuant to this
Agreement, in the manner specified in such Article and any other Articles
of this Agreement, shall be extended to all of Lessee’s subsidiary companies at
no additional cost.

 

ARTICLE XXVII

NOTICES

 

Notices to Lessor provided for herein shall be
sufficient if sent by registered mail, postage prepaid, addressed to Chief
Executive Officer, Wayne County Airport Authority, Detroit Metropolitan Wayne
County Airport, Detroit, Michigan 48242; and notices to Lessee, if sent by
registered mail, postage prepaid, addressed to Lessee at the address set forth
on page 1 of this Agreement, Attention: Vice President—Facilities and
Airport Affairs, or to such other respective addresses as the parties may designate
to each other in writing from time to time.

 

ARTICLE XXVIII

DEFINITIONS

 

1.                                       “Activity Fee” shall mean, with respect to each Signatory
Airline, the Activity Fee calculated pursuant to its Airport Agreement.

 

2.                                       “Activity Fee Rate” shall mean the rate
established pursuant to Article III.E.2.

 

59

 

3.                                       “Agreement” shall mean this Airport Use and Lease Agreement.

 

4.                                       “Air Transportation” shall mean the business of transporting
natural persons, property, cargo and mail by aircraft.

 

5.                                       “Airport” shall have the meaning set forth in the first “Whereas”
clause of this Agreement.

 

6.                                       “Airport Agreement” shall mean, collectively, (a) until
the end of Fiscal Year 2008, this Agreement and each other airport use and
lease agreement with respect to the Airport that is substantially the same as
this Agreement, the 2002 Airport Agreement or the Amended and Restated Airport
Agreements in effect as of the date of this Agreement with the other Signatory
Airlines, except with respect to specific leased premises thereunder, and (b) commencing
October 1, 2008, this Agreement and each other airport use and lease
agreement with respect to the Airport that is substantially the same as this
Agreement, except with respect to specific leased premises thereunder.

 

7.                                       “Airport Development Fund” shall mean the fund of such name
established under the Master Bond Ordinance.

 

8.                                       “Airport-system” shall mean the Airport and Willow Run
Airport.

 

9.                                       “Approved Maximum Landing Weight” for any aircraft shall mean
the maximum landing weight approved by the FAA for landing such aircraft at the
Airport.

 

10.                                 “Assigned Operations and Maintenance Functions” shall
mean:  (a) operation and maintenance
for all of Lessee’s Preferential South Terminal Space, (b) operation and
maintenance (including janitorial services, cleaning and minor repairs) of all
of the Shared Use South Terminal Space and public space in the South Terminal
and the mechanical equipment therein, (c) the operation and maintenance of
all 

 

60

 

building-wide services, such as heating, cooling,
lighting, and electrical services and (d) the maintenance and repairs of
the interior and exterior floors, walls, ceilings and roof of the South
Terminal. The foregoing notwithstanding, Assigned Operations and Maintenance
Functions shall not include: (i) operation of the Shared Use South
Terminal Space (including gate allocation and utilization), and FIS Facilities
in the South Terminal, (ii) the selection of concessionaires in the South
Terminal and operations and maintenance functions to be performed by such
concessionaires in the South Terminal, and (iii) police and building
security functions in the South Terminal.

 

11.                                 “Authority Act” shall mean the Public Airport Authority Act,
Public Act 90, Michigan Public Acts of 2002.

 

12.                                 “Authority-Controlled Airline Space” shall mean South
Terminal Authority-Controlled Airline Space and North Terminal
Authority-Controlled Airline Space.

 

13.                                 “Authority-Controlled Airline Space Revenues” shall mean
revenue received by Lessor for the use of Authority-Controlled Airline Space.

 

14.                                 “Authority Discretionary Fund” shall mean the fund of such
name established pursuant to the Master Bond Ordinance.

 

15.                                 “Bond Debt Service” shall mean, for any Fiscal Year, all
amounts of any nature whatsoever payable during such Fiscal Year under the
Master Bond Ordinance into the Bond Fund (including, but not limited to, the
Bond Reserve Account), the Junior Lien Bond Fund (including, but not limited
to, the Junior Lien Bond Reserve Account), the Operation and Maintenance
Reserve Fund and the Renewal and Replacement Fund, any other payment required
by Section 604 of the Master Bond Ordinance 

 

61

 

(including, but not limited to, amounts required to
satisfy debt service coverage requirements), reduced in all cases by an amount
equal to any interest payable on Bonds during such Fiscal Year from Bond
proceeds.

 

16.                                 “Bond Fund” shall mean the fund of such name established
pursuant to the Master Bond Ordinance.

 

17.                                 “Bond Ordinance” shall mean Ordinance 319, the Master Bond
Ordinance and such ordinances enacted and amended from time to time under which
Lessor is authorized to issue Bonds.

 

18.                                 “Bond Reserve Account” shall mean the fund of such name
established pursuant to the Master Bond Ordinance.

 

19.                                 “Bonds” shall mean bonds issued by the County pursuant to
Ordinance 319 prior to the Transfer, bonds, notes and other obligations issued
by Lessor pursuant to the Master Bond Ordinance and such other bonds, notes and
other obligations that are secured by a pledge of Revenues or net Revenues, on
a senior or subordinate lien basis. The term “Bonds” does not include bonds,
notes and other obligations secured other than by Revenues and issued under a
separate indenture or ordinance the proceeds of which bonds, notes or other
obligations are used to finance capital projects at or related to the Airport,
such as bonds issued to construct Special Facilities or bonds secured solely by
PFC revenue.

 

20.                                 “Cost Centers” shall mean the South Terminal Cost Center, the
North Terminal Cost Center and the Airport Cost Center, which shall be certain
areas of the Airport grouped together for the purpose of accounting for
Revenues, O&M Expenses and Bond Debt Service. Each such area is a Cost
Center.

 

62

 

21.                                 “Cost of the North Terminal” shall mean, for any Fiscal Year,
the Cost of the North Terminal calculated for that Fiscal Year pursuant to Article IIIC.2.

 

22.                                 “Cost of the South Terminal” shall mean, for any Fiscal Year,
the Cost of the South Terminal calculated for that Fiscal Year pursuant to Article IIIC.1.

 

23.                                 “County” shall mean the County of Wayne, Michigan.

 

24.                                 “Date of Beneficial Occupancy” shall mean, with regard to any
terminal facility, the date on which an air transportation company occupies
such facility for the operation of its Air Transportation business.

 

25.                                 “Existing Terminal Facilities” shall mean space, improvements
and facilities in the terminals in operation at the Airport prior to February 26,
2002.

 

26.                                 “FAA” shall mean the Federal Aviation Administration, or any
successor agency.

 

27.                                 “Final Audit” shall have the meaning set forth in Article III.H.5.

 

28.                                 “FIS Facilities” shall mean that portion of the terminals at
the Airport consisting of facilities for the United States Custom Service, the
United States Immigration and Naturalization Service, the United States
Department of Health and Human Services and the United States Department of
Agriculture, and any successor departments or services thereto, for the
processing of arriving international passengers.

 

29.                                 “Fiscal Year” shall mean October 1 of any year through September 30
of the following year or such other fiscal year as Lessor may adopt for
the Airport.

 

30.                                 “International  Facilities
Use Fees” shall mean the fees for use of FIS Facilities charged
pursuant to Article III.F.

 

63

 

31.                                 “June 6, 2001 Weighted Majority Request” shall have the
meaning set forth in Exhibit H.

 

32.                                 “Junior Lien Bond Fund” shall mean the fund of such name
established pursuant to the Master Bond Ordinance.

 

33.                                 “Junior Lien Bond Reserve Account” shall mean the fund of
such name established pursuant to the Master Bond Ordinance.

 

34.                                 “Lessee’s Preferential South Terminal Space” shall have the
meaning set forth in Article IB.2.(a).

 

35.                                 “Majority-in-Interest of the air carriers” shall mean either (i) seventy-five
percent (75%) of the Signatory Airlines who together have landed fifty-one
percent (51%) of the total landed weight of all such Signatory Airlines during
the immediately preceding calendar year (as such weight is reflected by
official Airport records), or (ii) fifty-one percent (51%) of the
Signatory Airlines who have together landed seventy-five percent (75%) of the
total landed weight of all such Signatory Airlines during the immediately
preceding calendar year (as such weight is reflected by official Airport
records).

 

36.                                 “Master Bond Ordinance” shall mean that Master Revenue Bond
Ordnance adopted by the Authority Board on September 26, 2003, which
assumed, amended, restated and superseded Ordinance 319, as the Master Bond
Ordinance shall be amended or supplemented from time to time by series ordinances
or otherwise.

 

37.                                 “Mid-Year Projection” shall have the meaning set forth in Article III.H.4.

 

38.                                 “New Bonds” shall have the meaning set forth in Exhibit H.

 

64

 

39.                                 “North Terminal” shall mean the new north terminal facilities
at the Airport planned to be constructed to replace the Smith Terminal and
related concourses, provided that references herein to the North Terminal
applicable with respect to the period of time prior to the Date of Beneficial
Occupancy of such new north terminal facilities shall mean South Terminal and
related concourses.

 

40.                                 “North Terminal Airline Premises” shall mean collectively,
the Preferential North Terminal Space and the Shared Use North Terminal Space.

 

41.                                 “North Terminal Authority-Controlled Airline Space” means
certain airline areas in the North Terminal, including but not limited to, holdrooms,
ticket counters, baggage claim areas, outbound baggage rooms, international
baggage pick-up, and recheck lobbies, which Lessor may from time to time
retain under its exclusive control and possession and are not leased to an
airline pursuant to an Airport Agreement.

 

42.                                 “North Terminal Authority-Controlled Airline Space Revenues”
shall mean, for any Fiscal Year, revenues received or receivable by Lessor for
that Fiscal Year for the use of North Terminal Authority-Controlled Airline
Space.

 

43.                                 “North Terminal Cost Center” shall mean the Cost Center of
the same name described in Exhibit J,
which includes the land identified as the North Terminal on Exhibit J, and all facilities, equipment and
improvements now or hereafter located thereon, including all passenger terminal
buildings, connecting structures, passenger walkways and tunnels, concourses,
hold areas and federal inspection service facilities, and any additions and
improvements thereto, as that land, facilities, equipment and improvements may change
from time to time.

 

65

 

44.                                 “North Terminal International Facilities Use Fees”
shall mean International Facilities Use Fees for use of the FIS Facilities in
the North Terminal.

 

45.                                 “North Terminal Rental Revenue” shall mean, for any Fiscal
Year, rental revenue received or receivable by Lessor for that Fiscal Year for
the use of space in the North Terminal, not including Terminal Charges to
Signatory Airlines and North Terminal Authority-Controlled Airline Space
Revenues.

 

46.                                 “North Terminal Rentals” shall mean the
terminal rentals for Preferential North Terminal Space established pursuant to
the Airport Agreements.

 

47.                                 “North Terminal Rental Rate” shall mean, for
any Fiscal Year, the terminal rental rate established as such pursuant to Article IIIC.2.

 

48.                                 “O&M Expenses” shall mean, for any Fiscal Year, direct
and indirect expenses of maintenance, operation and administration of the
Airport (including, but not limited to, the South Terminal and the North
Terminal) for such Fiscal Year.

 

49.                                 “Operation and Maintenance Reserve Fund” shall mean the fund
of such name established pursuant to the Master Bond Ordinance.

 

50.                                 “Ordinance 319” shall mean that Amended and Restated Master
Airport Revenue Bond Ordinance No. 319 adopted by the County Commission on
April 14, 1998, as such ordinance was amended or supplemented from time to
time, and which ordinance was assumed, amended, restated and superseded by the
Master Bond Ordinance.

 

51.                                 “Other Available Moneys” shall mean, for any Fiscal Year, the
amount of money determined by Lessor’s Chief Financial Officer in concurrence
with Lessor’s Chief Executive Officer to be transferred by Lessor for such
Fiscal Year from PFCs or 

 

66

 

other sources other than Revenues to the Bond Fund or
the Junior Lien Bond Fund; provided that “Other Available Moneys” shall not
include PFCs or other sources other than Revenues deposited in the Revenue Fund
for debt service coverage.

 

52.                                 “Persons” shall mean natural persons, firms, corporations,
partnerships, limited liability companies and other legal entities.

 

53.                                 “PFCs” shall mean passenger facility charges imposed by
Lessor or the County pursuant to the Aviation and Safety Capacity Expansion Act
of 1990, Pub. L. 101-508, Title IX, Subtitle B, §§ 9110 and 911,
recodified as 49 U.S.C. 40117, as amended from time to time, and Part 158
of the Federal Aviation Regulations (14 CFR Part 158), as amended from
time to time.

 

54.                                 “Preferential North Terminal Space” shall mean Preferential
Use Premises in the North Terminal.

 

55.                                 “Preferential South Terminal Space” shall mean Preferential
Use Premises in the South Terminal.

 

56.                                 “Preferential Use Premises” shall mean space, improvements
and facilities at the Airport provided to an air carrier on a preferential,
non-exclusive manner, e.g., in the manner provided in Article IB.2.(b).

 

57.                                 “Producer Price Index” shall mean the Producer Price
Index/All Commodities published by the United States Department of Labor,
Bureau of Labor Statistics (January, 1996 = 100), or if such index is
discontinued or otherwise becomes unavailable to the public, the most nearly
comparable index published by a recognized financial institution, financial
publication or university.

 

58.                                 “Projection” shall have the meaning set forth in Article IIIH.2.

 

67

 

59.                                 “Renewal and Replacement Fund” shall mean the fund of such
name established pursuant to the Master Bond Ordinance.

 

60.                                 “Rental Rate Change Date” shall mean the later of (a) October 1,
2008, or (b) the first day of the month following the month in which the
Date of Beneficial Occupancy of the North Terminal occurs.

 

61.                                 “Revenues” shall have the meaning for such term set forth in
the Master Bond Ordinance.

 

62.                                 “Revenue Fund” shall mean the fund of such name established
under the Master Bond Ordinance.

 

63.                                 “Revenue Requirement” shall have the meaning set forth in Article IIIE.3.

 

64.                                 “Series 1998A Bonds” shall have the meaning set forth in
Exhibit H.

 

65.                                 “Shared Use Domestic North Terminal Space” shall mean Shared
Use North Terminal Space that is used exclusively for domestic operations.

 

66.                                 “Shared Use Domestic South Terminal Space” shall mean Shared
Use South Terminal Space that is used exclusively for domestic operations.

 

67.                                 “Shared Use International North Terminal Space” shall mean
Shared Use North Terminal Space that is used exclusively for international
operations.

 

68.                                 “Shared Use International South Terminal Space” shall mean
Shared Use South Terminal Space that is used exclusively for international
operations.

 

69.                                 “Shared Use North Terminal Space” shall mean Shared Use
Premises in the North Terminal.

 

68

 

70.                                 “Shared Use Premises” shall mean space, improvements and
facilities at the Airport to be used jointly or in common by air carriers,
excluding Authority-Controlled Airline Space and FIS Facilities.

 

71.                                 “Shared Use South Terminal Space” shall mean Shared Use Premises
in the South Terminal.

 

72.                                 “Shared Use Swing North Terminal Space” shall mean Shared Use
North Terminal Space that is used for both domestic and international
operations.

 

73.                                 “Shared Use Swing South Terminal Space” shall mean Shared Use
South Terminal Space that is used for both domestic and international
operations.

 

74.                                 “Signatory Airlines” shall mean Lessee and those air carriers
who have executed an agreement substantially similar to this Agreement, the
2002 Airport Agreement or the Amended and Restated Airport Agreements with
respect to the Airport in effect as of the date of this Agreement (except for
the premises leased hereunder or thereunder). After October 1, 2008,
in order to be a Signatory Airline, an air carrier must have executed an agreement
substantially similar to this Agreement (except for the premises leased
thereunder).

 

75.                                 “South Terminal” shall mean the south terminal facilities at
the Airport known as the Edward H. McNamara Terminal, as such facilities are
modified from time to time.

 

76.                                 “South Terminal Airline Premises” shall mean collectively,
the Preferential South Terminal Space and the Shared Use South Terminal Space.

 

77.                                 “South Terminal Authority-Controlled Airline Space” shall
mean certain airline areas in the South Terminal, including, but not limited
to, holdrooms, 

 

69

 

ticket counters, baggage claim areas, outbound baggage
rooms, international baggage pick-up, and recheck lobbies, which Lessor may from
time to time retain under its exclusive control and possession and are not
leased to an airline pursuant to an Airport Agreement.

 

78.                                 “South Terminal Authority-Controlled Airline Space Revenues”
shall mean, for any Fiscal Year, revenues received or receivable by Lessor for that
Fiscal Year for the use of South Terminal Authority-Controlled Airline Space.

 

79.                                 “South Terminal Cost Center” shall mean the Cost Center of
the same name described in Exhibit J,
which includes the land identified as the South Terminal on Exhibit J, and all facilities, equipment and
improvements now or hereafter located thereon, including all passenger terminal
buildings, connecting structures, passenger walkways and tunnels, concourses,
hold areas and federal inspection service facilities, and any additions and
improvements thereto, as that land, facilities, equipment and improvements may change
from time to time.

 

80.                                 “South Terminal International Facilities Use Fees”
shall mean International Facilities Use Fees for use of the FIS Facilities in
the South Terminal.

 

81.                                 “South Terminal Rental Revenue” shall mean, for any Fiscal
Year, rental revenue received or receivable by Lessor for that Fiscal Year for
the use of space in the South Terminal, not including Terminal Charges to
Signatory Airlines and South Terminal Authority-Controlled Airline Space
Revenues.

 

82.                                 “South Terminal Rentals”
shall mean the terminal rentals for Preferential South Terminal Space
established pursuant to the Airport Agreements.

 

70

 

83.                                 “South Terminal Rental Rate”
shall mean, for any Fiscal Year, the terminal rental rate set forth for such
Fiscal Year in Article IIIC.1.(b), or established as such pursuant to Article IIIC.1.(c),
as the case may be.

 

84.                                 “Special Facilities” shall have the meaning for such term set
forth in the Master Bond Ordinance.

 

85.                                 “2002 Airport Agreement” shall have the
meaning set forth in the third “Whereas” clause of this Agreement.

 

86.                                 “Terminal Charges” shall mean, collectively, Terminal Rentals
and Terminal Use Charges.

 

87.                                 “Terminal Rentals” shall mean, collectively,
South Terminal Rentals and North Terminal Rentals.

 

88.                                 “Terminal Use Charges” shall mean the terminal use charges
established pursuant to Article III.D.

 

89.                                 “Transfer” shall mean the transfer of operational
jurisdiction and control of the Airport from the County to Lessor pursuant to
the Authority Act.

 

90.                                 “Weighted Majority” shall mean either (a) Signatory
Airlines which, in the aggregate, landed eighty-five percent (85%) or more of the
landed weight of all Signatory Airlines for the preceding twelve-month period
for which records are available, or (b) all but one of the Signatory
Airlines regardless of landed weight.

 

ARTICLE XXIX

PARAGRAPH HEADINGS

 

The paragraph headings contained herein are for
convenience in reference and are not intended to define or limit the scope of
any provision of this Agreement.

 

71

 

ARTICLE XXX

INVALID PROVISION

 

In the event any covenant, condition or provision
herein contained is held to be invalid by any court of competent jurisdiction,
the invalidity of any such covenant, condition or provision shall in no way
affect any other covenant, condition or provision herein contained; provided
that the invalidity of any such covenant, condition or provision does not
materially prejudice either Lessor or Lessee in its respective rights and
obligations contained in the valid covenants, conditions or provisions of this
Agreement.

 

ARTICLE XXXI

SUCCESSORS AND ASSIGNS BOUND BY COVENANTS

 

All the covenants, stipulations and agreements in this
Agreement shall extend to and bind the legal representatives, successors and
assigns of the respective parties hereto.

 

ARTICLE XXXII

RIGHT TO LEASE TO UNITED STATES GOVERNMENT

 

It is agreed that during time of war or national
emergency Lessor shall have the right to lease the landing area or any part thereof
to the United States Government for military or naval use, and, if any such
lease is executed, the provisions of this instrument insofar as they are
inconsistent with the provisions of the lease to the United States Government
shall be suspended.

 

It is agreed that this lease shall be subordinate to
the provisions of any existing or future agreement between Lessor and the United
States, relative to the operation or maintenance of the Airport, the execution
of which has been or may be required as a 

 

72

 

condition precedent to the expenditure of Federal
funds for the development of the Airport.

 

ARTICLE XXXIII

COVENANTS AGAINST DISCRIMINATION

 

A.                                    COVENANT
PURSUANT TO REQUIREMENTS OF THE DEPARTMENT OF TRANSPORTATION:   Lessee, for itself, its personal
representatives, successors in interest, and assigns, as a part of the
consideration hereof, does hereby covenant and agree as a covenant running with
the land, that (1) no person on the grounds of race, color, national
origin or gender shall be excluded from participation in, denied the benefits
of, or be otherwise subjected to discrimination in the use of facilities at the
Airport, (2) that in the construction of any improvements on, over, or
under land at the Airport and the furnishing of services thereon, no person on
the grounds of race, color, national origin or gender shall be excluded from
participation in, denied the benefits of, or otherwise be subjected to
discrimination, (3) that Lessee shall use the premises in compliance with
all other requirements imposed by or pursuant to Title 49, Code of Federal
Regulations, Department of Transportation, Subtitle A, Office of the Secretary,
Part 21, Nondiscrimination in Federally-assisted Programs of the
Department of Transportation - Effectuation of Title VI of the Civil Rights Act
of 1964, and as said Regulations may be amended. In the event of a breach
of any of the above non-discrimination covenants, Lessor shall have the right
to terminate this agreement and to reenter and repossess said land and the
facilities thereon, and hold the same as if said agreement had never been made
or issued.

 

B.                                    EMPLOYMENT:   The parties hereto hereby covenant not to
discriminate against an employee or applicant for employment with respect to
his or her hire, tenure, terms, 

 

73

 

conditions or privileges of employment, or any matter directly or
indirectly related to employment because of his or her age or sex, except where
based on a bona fide occupational qualification, or because of his or her race,
color, religion, national origin or ancestry, and to require a similar covenant
on the part of any sublessee hereunder and any subcontractor employed as a
result, or in connection with the exercise of rights granted and/or the
performance of obligations assumed under this Agreement.

 

C.                                    AFFIRMATIVE
ACTION PROGRAM:   Lessee assures that
it will undertake an affirmative action program as required by 14 CFR Part 152,
Subpart E to assure that no person shall, on the grounds of race, creed,
color, national origin or sex, be excluded from participating in or receiving
the services or benefits of any program or activity covered by this Subpart. Lessee
assures that it will require that its covered suborganizations provide
assurances to Lessee that they similarly will undertake affirmative action
programs and that they will require assurances from their suborganizations, as
required by 14 CFR Part 152, Subpart E, to the same effect.

 

D.                                    DISADVANTAGED
BUSINESS ENTERPRISE:   Lessee agrees
to comply with the following policy and requirements of the Department of
Transportation:

 

1.                                      POLICY.
 It is the policy of the Department of
Transportation that disadvantaged business enterprises as defined in 49 CFR Part 23
shall have the maximum opportunity to participate in the performance of
contracts financed in whole or in part with Federal funds under this
Agreement. Consequently the disadvantaged business enterprise requirements of
49 CFR Part 23 and 49 CFR Part 26 apply to this Agreement.

 

74

 

2.                                      DBE
OBLIGATION.  (i)  The recipient
or its contractor agrees to ensure that disadvantaged business enterprises as
defined in 49 CFR Part 23 have the maximum opportunity to participate in
the performance of contracts and subcontracts financed in whole or in part with
Federal funds provided under this Agreement. In this regard all recipients or
contractors shall take all necessary and reasonable steps in accordance with 49
CFR Part 23 and 49 CFR Part 26 to ensure that disadvantaged business
enterprises have the maximum opportunity to compete for and perform contracts.
Recipients and their contractors shall not discriminate on the basis of race,
color, national origin, or sex in the award and performance of Department of
Transportation-assisted contracts.

 

Failure of a contractor or subcontractor to carry out
the requirements set forth in 49 CFR Part 23 and 49 CFR Part 26 shall
constitute a breach of contract and, after notification of the Department of
Transportation, may result in termination of this Agreement or such
contracts referenced above by the recipient or such remedy as the recipient
deems appropriate.

 

The definitions set forth in paragraph 23.5 of 49 CFR Part 23
shall apply to the foregoing statements concerning disadvantaged business
enterprises.

 

ARTICLE XXXIV

 

CONFORMITY OF AGREEMENT

 

In the event that Lessor shall hereafter enter into
any lease, contract or agreement with any other scheduled air transport
operator, with respect to the use of the Airport or terminal facilities,
containing more favorable terms than this Agreement, or shall hereafter grant
to any other scheduled air transport operator, rights or privileges with
respect thereto which are not accorded to Lessee hereunder, then the same
rights, 

 

75

 

privileges and more favorable terms shall be
concurrently and automatically made available to Lessee.

 

[Balance
of page intentionally left blank. Signature page follows.]

 

76

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of the day and year first above written.

 

	
   

  	
  WAYNE COUNTY AIRPORT AUTHORITY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Lester W. Robinson

  	
   

  
	
   

  	
   

  	
  Its:

  	
  CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NORTHWEST AIRLINES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James M. Greenwald

  	
   

  
	
   

  	
   

  	
  Its:

  	
  V.P. Facilities & Airport Affairs

  	
   

  

 

77

 

 

EXHIBIT D-1

 

Protocol for Use of
International Gates

McNamara Terminal

 

This Exhibit D-1 sets forth the
utilization procedures for the international gates at the McNamara Terminal,
effective until the commencement of the operation of a Federal Inspection Service
facility at the new North Terminal. 
These procedures will apply to any future international gates at the
McNamara Terminal.

 

The international gates, together with related hold rooms, passenger
loading bridges, ramp access and baggage facilities shall be made available for
arrivals or departures based on the following priorities.

 

1.                                       Regularly
scheduled international airline service, with existing service having
precedence over new service;

 

2.                                       Regularly
scheduled Northwest Airlines domestic service;

 

3.                                       International
charter arrivals, if and for so long as the Federal government prohibits FIS
operations at the Berry International Terminal;

 

4.                                       Irregular or
Diversion international arrivals of scheduled airlines;

 

5.                                       Delayed
international charter arrivals when the expected delay for the flight to use
the Berry International Terminal will exceed 90 minutes and use of a McNamara
Terminal gate will not interfere with the scheduled international or domestic
use of that gate.

 

6.                                       Northwest
Airlines domestic irregular and diversion aircraft.

 

In the event the FAA makes a determination in writing that the
foregoing priority of regularly scheduled Northwest domestic service over
international charter arrivals if and for so long as the Federal government
prohibits FIS operations at the Berry International Terminal would cause the
international gates at the McNamara Terminal to cease to be PFC-eligible or
would be a non-competitive procedure, Lessor and Lessee shall negotiate in good
faith a resolution permitting international charter arrivals to have access to
FIS facilities on a basis sufficient to satisfy all applicable governmental
requirements, provided that pending such resolution Lessee shall accommodate
such international charter arrivals at the McNamara Terminal international
gates on a reasonable basis considering the scheduled operations of Lessee.

 

The following criteria will be used to make the determination that an
airline is offering scheduled service.

 

 

•                  The
international operation of the airline generally has passengers connecting at
the Airport on-line, inter-line, or via code share, and the operational need
for connecting facilities.

 

•                  The
airline operating the flight is a signatory under the use and lease agreement
for the Airport.

 

•                  The
airline holds all necessary governmental approvals to operate international
regularly scheduled service.

 

•                  The
airline’s international service is scheduled on a year-round basis or is
offered seasonally on an annual basis.

 

•                  The
airline’s schedules are published in the Official Airline Guide and displayed
in computer reservation systems, and the fares regularly published by the
Airline Tariff Publishing Company.

 

•                  The
airline provides reservation services and creates PNRs (passenger name records)
for the flights with its own employees.

 

International operations that meet these criteria overall shall be
considered international regularly scheduled flights for purposes of this
protocol.  However, the failure to meet
any one or more criteria shall not necessarily preclude the operation from
being considered an international regularly scheduled flight.  Lessor’s goal of optimizing overall Airport
operating efficiency shall be an important consideration.

 

Lessor will review with Northwest Airlines and other scheduled
international carriers, on an annual (or more frequent) basis, the procedures
for scheduling, gate occupancy times, ramp storage locations and penalties for
non-compliance.

 

 

Exhibit D-2

 

Protocol for Use of
International Facilities at the Airport

 

This Exhibit D-2
sets forth the utilization procedures for the facilities at the Airport used
for international arrivals and departures of aircraft, effective immediately
upon the commencement of the operation of a Federal Inspection Service facility
at the new North Terminal.

 

For the purposes of the priorities stated in
this Exhibit D-2, Northwest Airlines,
Mesaba Airlines, Pinnacle Airlines, KLM Royal Dutch Airlines, Air France, Delta
Airlines and Continental Airlines will be deemed to be included in the term “Northwest
and its alliance partners”, provided that other airlines may be included in
such term in the future if additional airlines become alliance partners of
Northwest Airlines.

 

For the purposes of the priorities stated below, the following terms
have the following meanings:

 

An arrival of an
aircraft is a “delayed arrival” if such aircraft is scheduled and it has landed
at the Airport and is waiting on the airfield for access to a gate.

 

An arrival of an
aircraft is an “irregular arrival” if such aircraft is scheduled and it has
landed at the Airport 60 minutes earlier or later than its scheduled arrival.

 

An arrival of an
aircraft is a “diversion arrival” if such aircraft was planned to arrive at
another airport, but for any reason is diverted to the Airport for arrival.

 

South Terminal

 

The following sets forth utilization
procedures for the gates at the South Terminal that are usable for the
international arrivals of aircraft (the “South International Gates”) and
related facilities.

 

The South International Gates, together with
related hold rooms, passenger loading bridges, ramp access and baggage
facility, shall be available for aircraft arrivals and departures based on the
following priorities:

 

1.               Regularly scheduled
international service of Northwest and its alliance partners, with existing
service having precedence over new service.

 

2.               Regularly scheduled
international arrivals of all airlines operating at the Airport (other than the
arrivals of Northwest and its alliance partners 

 

 

and international charter arrivals) if and
for so long as the Federal government prohibits the operation of the North
Terminal FIS facility, with existing service having precedence over new
service.

 

3.               Regularly scheduled
domestic service of Northwest and its alliance partners.

 

4.               Delayed, irregular
or diversion scheduled international arrivals of Northwest and its alliance
partners.

 

5.               Delayed regularly
scheduled international arrivals of all airlines operating at the Airport
(other than the arrivals of Northwest and its alliance partners and
international charter arrivals), with existing service having precedence over
new service, in each case when the expected delay for the arriving flight to
use the North Terminal will exceed 90 minutes and the use of a South
International Gate by such arriving flight will not interfere with the
scheduled use of the gate for international or domestic service of Northwest
and its alliance partners.

 

6.               Delayed, irregular
or diversion scheduled domestic arrivals of Northwest and its alliance
partners.

 

7.               Irregular or
diversion scheduled international arrivals of all airlines operating at the
Airport (other than the arrivals of Northwest and its alliance partners and
international charter arrivals).

 

8.               International
charter arrivals, if and for so long as the Federal government prohibits the
operation of the North Terminal FIS facility.

 

9.               Delayed
international charter arrivals, in each case when the expected delay for the
arriving flight to use the North Terminal will exceed 90 minutes and the use of
a South International Gate by such arriving flight will not interfere with the
scheduled use of the gate for international or domestic service of Northwest
and its alliance partners.

 

In the event the FAA makes a determination in writing that the
foregoing priority of regularly scheduled Northwest domestic service over
international charter arrivals if and for so long as the Federal government
prohibits the operation of the North Terminal FIS facility would cause the
South International Gates to cease to be PFC-eligible or would be a
non-competitive procedure, Lessor and Lessee shall negotiate in good faith a
resolution permitting international charter arrivals to have access to FIS
facilities at the South Terminal on a basis sufficient to satisfy all
applicable government requirements, provided that pending such resolution such
international charter arrivals shall be accommodated at the South International
Gates on a reasonable basis considering the scheduled operations of Lessee.

 

2

 

North
Terminal

 

The following sets forth utilization
procedures for the gates at the North Terminal that are usable for
international arrivals of aircraft (the “North Terminal International Gates”)
and related facilities.

 

The North Terminal International Gates,
together with related hold rooms, passenger loading bridges, ramp access and
baggage facility, shall be made available for aircraft arrivals and departures
based on the following priorities:

 

1.               Regularly scheduled
international service of all airlines operating at the Airport (other than
Northwest and its alliance partners), with existing service having precedence
over new service.

 

2.               Regularly scheduled
international arrivals of Northwest and its alliance partners if and for so
long as the Federal government prohibits the operation of the South Terminal
FIS facility, with existing service having precedence over new service.

 

3.               International
charter arrivals.

 

4.               Regularly scheduled
domestic service of all airlines operating at the Airport (other than Northwest
and its alliance partners).

 

5.               Delayed, irregular
or diversion scheduled international arrivals of all airlines operating at the
Airport (other than Northwest and its alliance partners).

 

6.               Delayed regularly
scheduled international arrivals of Northwest and its alliance partners, with
existing service having precedence over new service, in each case when the
expected delay for the arriving flight to use the South Terminal will exceed 90
minutes and use of a North Terminal International Gate by such arriving flight
will not interfere with the scheduled use of the gate for international or
domestic service of any airline operating at the Airport (other than Northwest
and its alliance partners).

 

7.               Delayed, irregular
or diversion scheduled domestic arrivals of all airlines operating at the
Airport (other than Northwest and its alliance partners).

 

8.               Irregular or
diversion scheduled international arrivals of Northwest and its alliance partners.

 

9.               Delayed, irregular
or diversion international charter arrivals.

 

3

 

The following criteria will be used to make
the determination that an airline is offering scheduled service.

 

•                  The
international operation of the airline generally has passengers connecting at
the Airport on-line, inter-line, or via code share, and the operational need
for connecting facilities.

 

•                  The
airline operating the flight is a signatory under the use and lease agreement
for the Airport.

 

•                  The
airline holds all necessary government approvals to operate international
regularly scheduled service.

 

•                  The
airline’s international service is scheduled on a year-round basis or is
offered seasonally on an annual basis.

 

•                  The
airline’s schedules are published in the Official Airline Guide and displayed
in a computer reservation system, and the fares regularly published by the
Airline Tariff Publishing Company.

 

•                  The
airline provides reservation services and creates PNRs (passenger name records)
for the flights with its own employees.

 

International operations that meet this
criteria overall shall be considered international regularly scheduled flights
for purposes of these protocols. 
However, the failure to meet any one or more criteria shall not
necessarily preclude the operation from being considered an international
regularly scheduled flight.  The goal of
optimizing overall Airport operating efficiency shall be an important
consideration.

 

Lessor will review with Lessee and other scheduled
international carriers, on an annual (or more frequent) basis, the procedures
for scheduling, gate occupancy times, ramp storage locations and penalties for
non-compliance.

 

4

 

Exhibit E

 

Allocation of O&M Expenses, Bond Debt
Service and Other Available Moneys

 

O&M Expenses

 

	
  Cost Center

  	
   

  	
   

  
	
  North
  Terminal

  	
   

  	
  South Terminal

  	
   

  	
  Rest of Airport

  
	
  O&M Expenses attributable to the operations and
  maintenance of the North Terminal (Preferential, Shared Use, public and
  Authority controlled airline space), including any passenger bridges and
  connectors to parking garages as well as immediate curbside. These expenses
  include, but are not limited to, the following:

   

  •      Costs of janitorial services, cleaning and
  minor repairs of all North Terminal space and the mechanical equipment
  therein (including conveyance systems and baggage handling systems)

  •      Costs of operation and maintenance of all building-wide
  services such as heating, cooling. lighting, and electrical services

  •      Costs of maintenance and repairs of the
  interior and exterior floors, walls, ceilings and roof

  •      Costs of utilities (includes HVAC, water,
  sewage, electric, etc.)

  •      Property insurance costs

  	
   

  	
  O&M Expenses attributable to the operations and maintenance of the
  South Terminal (Preferential, Shared Use and public space), including any
  passenger bridges and connectors to parking garages as well as immediate
  curbside. These expenses include, but are not limited to, the following:

  •      Costs
  of janitorial services, cleaning and minor repairs of all South Terminal
  space and the mechanical equipment therein (including conveyance systems and
  baggage handling systems)

  •      Costs of operation and maintenance of all building-wide
  services such as heating, cooling. lighting, and electrical services

  •      Costs
  of maintenance and repairs of the interior and exterior floors, walls,
  ceilings and roof

  •      Costs
  of utilities (includes HVAC, water, sewage, electric, etc.)

  •      Property
  insurance costs

  	
   

  	
  O&M Expenses not allocated to either the North Terminal Cost
  Center or the South Terminal Cost Center. These expenses include, but are not
  limited to, the following:

  •     Payroll
  and fringe benefit costs of Authority employees

  •     Costs
  associated with all parking garages, lots and facilities

  •      All
  costs associated with Airport access roadways, including Airport signage

  •      Shuttle
  bus costs

  •      General
  Airport costs (i.e. landscaping, insurance not allocated to the North
  Terminal Cost Center or the South Terminal Cost Center, fire & rescue,
  etc.)

  •      Cost
  of utilities (including HVAC, water, sewage, electric, etc.) not allocated to
  the North Terminal Cost Center or the South Terminal Cost Center

  •     County chargebacks

  •      Cost
  of capital items procured from O&M budget

  •      All
  airfield costs, including expenses attributable to the North Terminal and
  South Terminal aprons and taxiways

  •      Professional
  services contracts and costs

  

 

 

 Allocation of O&M Expenses, Bond Debt
Service and Other Available Moneys

 

Bond Debt Service

 

	
  Cost Center

  	
   

  	
   

  
	
  North
  Terminal

  	
   

  	
  South Terminal

  	
   

  	
  Rest of Airport

  
	
  1) Bond Debt Service attributable to Series 1998A Bonds issued
  for:

  •      Existing
  Terminal Projects

  2) Bond Debt Service attributable to New Bonds issued to fund:

  •      North Terminal Redevelopment Project
  (including Bond Debt Service attributable to the North Terminal apron and
  taxiways, but excluding costs (if any) in connection with removal of
  abandoned fuel lines associated with the former Davey Terminal apron and any
  related work, including fuel contamination remediation, required to comply
  with environmental laws)

  •     North Terminal In-Line Explosive Detection
  System (EDS)

  •      Smith
  Terminal Demolition Project

  •      Berry
  Terminal Demolition Project if funded as part of North Terminal Redevelopment
  Project

  3) Bond Debt Service attributable to any Bonds issued in the future
  (other than New Bonds) to finance North Terminal improvements, additions or
  other modifications

  	
   

  	
  1) Bond Debt Service attributable to New Bonds and Series 1998A
  Bonds issued to fund

  •      McNamara
  Terminal Project Phase I and II (excluding Bond Debt Service attributable to
  the South Employee Parking Lot and Taxiway Q)

  •      McNamara Terminal In-Line Explosive
  Detection System (EDS)

  2) Bond Debt Service attributable to any Bonds issued in the future
  (other than New Bonds) to finance South Terminal improvements, additions or
  other modifications.

  	
   

  	
  1) All outstanding Bond Debt Service attributable to Bonds issued
  prior to 1998

  2) All Bond Debt Service attributable to Series 1998A Bonds
  issued to fund projects other than the Existing Terminal Projects and the
  McNamara Terminal Project Phase I

  3) All Bond Debt Service attributable to Series 1998B Bonds

  4) Bond Debt Service attributable to New Bonds issued to fund:

  •      North
  Terminal Redevelopment Project costs (if any) in connection with removal of
  abandoned fuel lines associated with the former Davey Terminal apron and any
  related work, including fuel contamination remediation, required to comply
  with environmental laws)

  •      Taxiway
  Q Project

  •      South
  Employee Parking Lot Project

  •      Noise
  Mitigation Project

  •      Vehicles
  and Equipment

  •      Central
  Admin Building and Training Complex Project

  •      West
  Airfield Improvements

  •      Runway
  3L-21R Shoulders Overburden Project

  •      Perimeter
  Fencing and Other Security Enhancements

  •      Preliminary
  Design of Runway 3R/21L Reconstruction and Pavement Management Study

  •      Infill Island at Taxiway Y-10

  •      Runway
  3L/21R Planning

  •      Part 150
  Study Update

  •      Master
  Plan Update

  

 

2

 

	
   

  	
   

  	
   

  	
   

  	
  •      Automated
  Parking Revenue Management System

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  5) Bond Debt Service attributable to any Bonds issued in the future
  (other than New Bonds) to finance Airport capital projects other than
  improvements, additions or other modifications to the North Terminal or South
  Terminal.

  

 

Bond
Debt Service attributable to future capital projects approved by a Weighted
Majority shall be allocated as agreed upon in the Weighted Majority approval
process.

 

3

 

Allocation of O&M Expenses, Bond Debt
Service and Other Available Moneys

 

Other Available Moneys

 

Each
Fiscal Year, PFCs required to be used during such Fiscal Year as set forth in Exhibit H shall be allocated to the
North Terminal Cost Center, the South Terminal Cost Center and the rest of the
Airport as follows:

 

	
  Cost Center

  	
   

  	
   

  
	
  North
  Terminal

  	
   

  	
  South Terminal

  	
   

  	
  Rest of Airport

  
	
  1. Existing
  Terminal Projects (100% of Series 1998A Bonds PFC eligible Bond Debt
  Service)

  

  2. North Terminal Redevelopment Project

  

  (100% of New Bonds PFC eligible Bond Debt Service, excluding Bond Debt
  Service for costs (if any) in connection with removal of abandoned fuel lines
  associated with the former Davey Terminal apron and any related work,
  including fuel contamination remediation, required to comply with
  environmental laws)

  

  3.North Terminal In-Line Explosive Detection System (EDS) (100% of New Bonds
  PFC eligible Bond Debt Service)

  

  4. Smith Terminal Demolition Project (100% of New Bonds PFC eligible Bond
  Debt Service

  

  5. Berry Terminal Demolition Project (100% of New Bonds PFC eligible Bond
  Debt Service) if funded as part of North Terminal Redevelopment Project

  	
   

  	
  1. Midfield
  Terminal Phase I Project (100% of Series 1998A Bonds PFC eligible Bond
  Debt Service).

  

  2. Midfield Terminal Phase II Project (excluding South Employee Parking Lot
  and Taxiway Q)

  

  (100% of New Bonds PFC eligible Bond Debt Service)

  

  3. McNamara Terminal In-Line Explosive Detection System (EDS) (100% of New
  Bonds PFC eligible Bond Debt Service)

  

  	
   

  	
  1.
  Series 1998A Bonds issued to fund Other CIP Projects (77% of Bond Debt
  Service)

  

  2. Taxiway Q (100% of New Bonds PFC eligible Bond Debt Service)

  

  3. Noise Mitigation Project (100% of New Bonds PFC eligible Bond Debt
  Service)

  

  4. Vehicles and Equipment (100% of New Bonds PFC eligible Bond Debt Service)

  

  5. West Airfield Improvements (100% of New Bonds PFC eligible Bond Debt
  Service except with respect to Runway 4/22 elements as set forth in
  Exhibit H)

  

  6. Runway 3L-21R Shoulders Overburden Project (100% of New Bonds PFC eligible
  Bond Debt Service)

  

  7. Center Runway Rehabilitation Project/ Runway 3L/21R Planning (100% of New
  Bonds PFC eligible Bond Debt Service)

  

  8. Runway Surface Monitor System Project (100% of New Bonds PFC eligible Bond
  Debt Service)

  

  9. Surface Movement Guidance System Lighting Project (100% of New Bonds PFC
  eligible Bond Debt Service)

  

  10. Third Fire Station ARFF Project (100% of New Bonds PFC eligible Bond Debt
  Service)

  

  11. Perimeter Fencing and Other Security Enhancements (100% of New Bonds PFC
  eligible Bond Debt Service)

  

  12. Preliminary Design of Runway 3R/21L Reconstruction and Pavement
  Management Study (100% of New Bonds PFC eligible Bond Debt Service)

  

  13. Infill Island at Taxiway Y-10 (100% of New Bonds PFC eligible Bond Debt
  Service)

  

 

4

 

	
   

  	
   

  	
   

  	
   

  	
  14. Part 150
  Study (100% of New Bonds PFC eligible Bond Debt Service)

  

  15. Master Plan Update (100% of New Bonds PFC eligible Bond Debt Service)

  

  16. North Terminal Redevelopment Project costs (if any) in connection with
  removal of abandoned fuel lines associated with the former Davey Terminal
  apron and any related work, including fuel contamination remediation,
  required to comply with environmental laws (100% of New Bonds PFC eligible
  Bond Debt Service)

  

 

Federal
grant proceeds received from the FAA for 2002 through 2008 pursuant to Lessor’s
FAA Letter of Intent as reimbursement for the Runway 4L/22R and related
projects and the South Terminal apron and related projects shall be allocated
to the rest of the Airport.

 

5

 

EXHIBIT H

 

REQUIRED
USE OF PFCs

 

Capital Projects

 

Lessor must use PFCs to pay the maximum
amount (except as set forth below) of PFC-eligible Bond Debt Service on (i) the
Bonds designated as Series 1998A (the “Series 1998A Bonds”) and
issued to pay the costs of the capital projects listed below under the heading “Series 1998A
Bonds”, and (ii) Bonds to be issued to pay the costs of the capital
projects listed below under the heading “New Bonds”, including but not limited
to the Bonds designated as Series 2002A, Series 2003A and Series 2005
(the “New Bonds”), in each case as described in the Weighted Majority approvals
of each of the below listed capital projects as such Weighted Majority
approvals are in effect on the date of this Agreement; provided that the
requirement to use PFCs to pay the maximum amount of PFC-eligible Bond Debt
Service on the New Bonds shall only apply to those New Bonds issued to pay the
costs for such capital projects set forth in Lessor’s June 6, 2001 request
for Weighted Majority approval of such projects (the “June 6, 2001
Weighted Majority Request”):

 

A.                                   Series 1998A
Bonds

 

1.                                       McNamara
[Midfield] Terminal Project-Phase I

 

2.                                       Existing
Terminal Projects

 

3.                                       Other
CIP Projects (but not more than 77% of total Bond Debt Service attributable to
these projects, except for Fiscal Years 2005, 2006 and 2007 in which case the
percentage is 100%)

 

 

B.                                     New
Bonds(1)

 

1.                                       McNamara
[Midfield] Terminal Project-Phase II (excluding the South Employee Parking Lot
)

 

2.                                       North
Terminal Redevelopment Project

 

3.                                       Noise
Mitigation Program

 

4.                                       Vehicles/Equipment

 

5.                                       West
Airfield Improvements (provided that PFCs shall be used to pay PFC-eligible
Bond Debt Service on New Bonds issued to pay the costs of the Runway 4/22
Construction project element of the West Airfield Improvements only to the
extent that the amount of PFCs used for such purpose in any Fiscal Year, when
added to the amount of PFCs used in such Fiscal Year to pay PFC-eligible Bond
Debt Service on Series 1998A Bonds issued to pay the costs of projects A.1
and A.2 above, does not exceed $40 million)

 

6.                                       Runway 3L-21R
Shoulders/Overburden Project

 

7.                                       Center
Runway (3L/21R) Rehabilitation Project

 

8.                                       Runway
Surface Monitor System Project

 

9.                                       Surface Movement
Guidance System Lighting Project

 

10.                                 Hold Pad
East of 4L

 

11.                                 Third Fire
Station (ARFF)

 

12.                                 McNamara
Terminal In-Line Explosive Detection System

 

13.                                 North
Terminal In-Line Explosive Detection System

 

14.                                 Perimeter
Fencing and Other Security Enhancements

 

(1) Lessor will use PFCs
on a pay-as-you go basis to pay the PFC-eligible coverage requirements on the
New Bonds to be issued to pay the costs of projects B.1, B.2, B.3, B.4, B.5,
B.6 and B.11.

 

2

 

15.                                 Preliminary
Design of Runway 3R/21L Reconstruction and Pavement Management System

 

16.                                 Infill
Island at Taxiway Y-10

 

17.                                 Smith
Terminal Demolition

 

18.                                 Berry
Terminal Demolition

 

19.                                 Part 150
Study Update

 

20.                                 Master Plan
Update

 

Priority Use of Available PFCs

 

If in any Fiscal Year available PFCs are
insufficient to pay as set forth above PFC-eligible Bond Debt Service for such
Fiscal Year on the Series 1998A Bonds and the New Bonds issued to pay the
costs of the projects listed above, such available PFCs will be used to pay
PFC-eligible Bond Debt Service in the following order of priority:

 

1.             First,
to pay PFC-eligible Bond Debt Service on the Series 1998A Bonds issued to
pay the costs of projects A.1 and A.2 above, allocated between such projects on
a pro rata basis in accordance with the amount of total Bond Debt Service
attributable to such projects; provided that the amount of available PFCs used
for this purpose in any Fiscal Year shall not exceed the lesser of (a) the
PFC revenues received by Lessor in such Fiscal Year that are attributable to a
PFC of $3, and (b) $45,996,580;

 

2.             Second,
to pay a maximum of 77% of total Bond Debt Service on the Series 1998A
Bonds issued to pay the costs of the projects in A.3 above (except for Fiscal
Years 2005, 2006 and 2007 in which case the percentage shall be 100%);

 

3.             Third, to pay PFC-eligible Bond
Debt Service on New Bonds issued to pay the costs of the terminal portions of
projects B.1 and B.2 above (i.e., excluding the Taxiway Q and apron and other taxiway
portions of such projects) and the costs of 

 

3

 

projects
B.12 and B.13 above, allocated among such projects on a pro rata basis in
accordance with the amount of PFC-eligible Bond Debt Service attributable to
the terminal portions of projects B.1 and B.2 and to projects B.12 and B.13
above; and

 

4.             Fourth,
to pay PFC-eligible Bond Debt Service on New Bonds issued to pay the costs of
the airfield related portions of projects B.1 through B.6 above ( i.e., projects B.3 through B.6, and the Taxiway Q and
apron and other taxiway portions of projects B.1 and B.2), and New Bonds issued
to pay the costs of projects B.7 through B.11 and B.14 through B.20 above,
allocated between (a) such airfield related portions of projects B.1
through B.6 above on the one hand and (b) projects B.7 through B.11 and
B.14 through B.20 above on the other hand on a pro rata basis in accordance
with the amount of total Bond Debt Service attributable to (i) the
airfield related portions of projects B.1 through B.6 above on the one hand and
(ii) projects B.7 through B.11 and B.14 through B.20 above on the other
hand.

 

PFC-eligible Bond Debt Service in any Fiscal
Year on any Bonds issued after January 18, 2001 to pay the cost of
additional capital projects not identified above may not be paid with PFCs
unless (and solely to the extent that) there are remaining available PFCs in
such Fiscal Year after available PFCs have been applied in such Fiscal Year to
pay all PFC-eligible Bond Debt Service on the Series 1998A Bonds (except
for the Series 1998A Bonds issued to pay for the projects in A.3 above, in
which case the percentage of PFC-eligible Debt Service to be paid with PFCs is
77%, except for Fiscal Years 2005, 2006 and 2007 in which case the percentage
shall be 100%) and on New Bonds issued to pay the capital project costs set
forth in the June 6, 2001 Weighted Majority Request (including New Bonds
issued to pay the costs of the Runway 4/22 Construction project portion of
project B.5 above to the extent set forth in B.5 above) and in Lessor’s December 16,
2004 request for Weighted Majority approval.

 

4

 

Subject to the priority use of available PFCs
as set forth above, Lessor shall use legally available PFCs to pay all interest
due prior to October 1, 2008, on New Bonds issued to pay the costs of
projects B.1 through B.2 above (including interest on New Bonds issued to pay
both PFC-eligible and ineligible portions of such projects).

 

5

EXHIBIT I

 

 

INTERNATIONAL FACILITY USE FEE (IFUF) SCHEDULE

Detroit Metropolitan Wayne County Airport

For Operating Years

 

	
   

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  	
  2012

  	
   

  	
  2013

  	
   

  	
  2014

  	
   

  
	
  Berry
  Terminal

  	
   

  	
  $

  	
  3.50

  	
   

  	
  $

  	
  3.50

  	
   

  	
  $

  	
  3.50

  	
   

  	
  $

  	
  3.50

  	
   

  	
  $

  	
  3.50

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  McNamara
  Terminal

  	
   

  	
  $

  	
  4.50

  	
   

  	
  $

  	
  4.50

  	
   

  	
  $

  	
  4.50

  	
   

  	
  $

  	
  4.50

  	
   

  	
  $

  	
  4.50

  	
   

  	
  $

  	
  5.00

  	
   

  	
  $

  	
  5.00

  	
   

  	
  $

  	
  5.00

  	
   

  	
  $

  	
  5.00

  	
   

  	
  $

  	
  5.00

  	
   

  	
  $

  	
  5.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  North
  Terminal

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  $

  	
  5.00

  	
   

  	
  $

  	
  5.00

  	
   

  	
  $

  	
  5.00

  	
   

  	
  $

  	
  5.00

  	
   

  	
  $

  	
  5.00

  	
   

  	
  $

  	
  5.50

  	
   

  

 

	
   

  	
   

  	
  2015

  	
   

  	
  2016

  	
   

  	
  2017

  	
   

  	
  2018

  	
   

  	
  2019

  	
   

  	
  2020

  	
   

  	
  2021

  	
   

  	
  2022

  	
   

  	
  2023

  	
   

  	
  2024

  	
   

  	
  2025

  	
   

  
	
  Berry
  Terminal

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  McNamara
  Terminal

  	
   

  	
  $

  	
  5.50

  	
   

  	
  $

  	
  5.50

  	
   

  	
  $

  	
  5.50

  	
   

  	
  $

  	
  5.50

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  North
  Terminal

  	
   

  	
  $

  	
  5.50

  	
   

  	
  $

  	
  5.50

  	
   

  	
  $

  	
  5.50

  	
   

  	
  $

  	
  5.50

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  2026

  	
   

  	
  2027

  	
   

  	
  2028

  	
   

  	
  2029

  	
   

  	
  2030

  	
   

  	
  2031

  	
   

  	
  2032

  	
   

  
	
  Berry
  Terminal

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  McNamara
  Terminal

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  North
  Terminal

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  	
  $

  	
  6.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

NOTE:  International Facility Use Fee represents
charge per international deplaning passenger.

Asuming that the Berry Terminal FIS will be closed upon DBO of North
Terminal FIS.EXHIBIT 10.4

 

AIRLINE
OPERATING AGREEMENT AND TERMINAL BUILDING LEASE

MINNEAPOLIS-ST.
PAUL INTERNATIONAL AIRPORT

 

BETWEEN

 

METROPOLITAN
AIRPORTS COMMISSION

 

AND

 

NORTHWEST
AIRLINES, INC.

 

EFFECTIVE
JANUARY 1, 1999

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  I.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
  A.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
  B.

  	
  HEADINGS AND CROSS
  REFERENCES

  	
  11

  
	
  II.

  	
  TERM

  	
  12

  
	
  III.

  	
  USE OF THE AIRPORT

  	
  13

  
	
   

  	
  A.

  	
  AIRLINE RIGHTS

  	
  13

  
	
   

  	
  B.

  	
  EXCLUSIONS, RESERVATIONS,
  AND CONDITIONS

  	
  16

  
	
   

  	
  C.

  	
  USE OF THE INTERNATIONAL
  ARRIVALS FACILITY

  	
  19

  
	
  IV.

  	
  PREMISES

  	
  20

  
	
   

  	
  A.

  	
  LEASED PREMISES

  	
  21

  
	
   

  	
  B.

  	
  EXCLUSIVE/PREFERENTIAL
  LEASED AREAS

  	
  21

  
	
   

  	
  C.

  	
  COMMON BAG CLAIM AREAS

  	
  25

  
	
   

  	
  D.

  	
  MEASUREMENT OF SPACE

  	
  26

  
	
   

  	
  E.

  	
  ACCOMMODATION OF OTHER
  AIRLINES

  	
  26

  
	
   

  	
  F.

  	
  WIDE BODY AND BOEING 757
  ACCESS

  	
  29

  
	
   

  	
  G.

  	
  ACCESS

  	
  29

  
	
   

  	
  H.

  	
  SHORT TERM GATES

  	
  30

  
	
   

  	
  I.

  	
  REGIONAL RAMP

  	
  31

  
	
   

  	
  J.

  	
  RELINQUISHMENT OF PREMISES

  	
  32

  
	
   

  	
  K.

  	
  MID-TERM RELINQUISHMENT OF
  PREMISES

  	
  32

  
	
   

  	
  L.

  	
  SURRENDER OF PREMISES

  	
  33

  
	
  V.

  	
  RENTS, FEES, AND CHARGES

  	
  35

  
	
   

  	
  A.

  	
  GENERAL

  	
  35

  
	
   

  	
  B.

  	
  RENTS, FEES, AND CHARGES

  	
  35

  
									

 

i

 

	
   

  	
  C.

  	
  MONTHLY ACTIVITY REPORT

  	
  37

  
	
   

  	
  D.

  	
  SECURITY DEPOSITS

  	
  38

  
	
   

  	
  E.

  	
  PAYMENT PROVISIONS

  	
  39

  
	
   

  	
  F.

  	
  NET AGREEMENT

  	
  40

  
	
   

  	
  G.

  	
  NO OTHER FEES AND CHARGES

  	
  40

  
	
   

  	
  H.

  	
  PASSENGER FACILITY CHARGES

  	
  40

  
	
   

  	
  I.

  	
  NON-WAIVER

  	
  41

  
	
   

  	
  J.

  	
  NONSIGNATORY LANDING FEES

  	
  41

  
	
   

  	
  K.

  	
  AFFILIATED AIRLINE

  	
  41

  
	
  VI.

  	
  CALCULATION OF RENTS, FEES,
  AND CHARGES

  	
  42

  
	
   

  	
  A.

  	
  GENERAL

  	
  42

  
	
   

  	
  B.

  	
  CALCULATION/COORDINATION
  PROCEDURES

  	
  42

  
	
   

  	
  C.

  	
  LANDING FEES

  	
  43

  
	
   

  	
  D.

  	
  ENVIRONMENTAL SURCHARGE

  	
  46

  
	
   

  	
  E.

  	
  TERMINAL APRON FEES

  	
  46

  
	
   

  	
  F.

  	
  REGIONAL RAMP FEES

  	
  47

  
	
   

  	
  G.

  	
  TERMINAL BUILDING RENTS

  	
  48

  
	
   

  	
  H.

  	
  CARROUSEL AND CONVEYOR
  CHARGE

  	
  49

  
	
   

  	
  I.

  	
  IAF USE FEES

  	
  50

  
	
   

  	
  J.

  	
  YEAR-END ADJUSTMENTS OF
  RENTS, FEES, AND CHARGES

  	
  51

  
	
  VII.

  	
  CAPITAL EXPENDITURES

  	
  52

  
	
   

  	
  A.

  	
  GENERAL

  	
  52

  
	
   

  	
  B.

  	
  CAPITAL PROJECTS SUBJECT TO
  MII REVIEW

  	
  53

  
	
   

  	
  C.

  	
  CAPITAL PROJECTS NOT
  SUBJECT TO MII REVIEW

  	
  54

  
						

 

ii

 

	
   

  	
  D.

  	
  2010 PLAN AIRFIELD PROGRAMS

  	
  55

  
	
  VIII.

  	
  INSTALLATION, MAINTENANCE
  AND UTILITIES

  	
  57

  
	
   

  	
  A.

  	
  OBLIGATIONS OF MAC

  	
  57

  
	
   

  	
  B.

  	
  OBLIGATIONS OF AIRLINE

  	
  59

  
	
  IX.

  	
  DAMAGE OR DESTRUCTION OF
  PREMISES

  	
  61

  
	
   

  	
  A.

  	
  DAMAGE OR DESTRUCTION

  	
  61

  
	
   

  	
  B.

  	
  FORCE MAJEURE

  	
  62

  
	
  X.

  	
  INDEMNITY AND LIABILITY
  INSURANCE

  	
  63

  
	
   

  	
  A.

  	
  INDEMNIFICATION

  	
  63

  
	
   

  	
  B.

  	
  LIABILITY INSURANCE

  	
  64

  
	
   

  	
  C.

  	
  OTHER INSURANCE

  	
  66

  
	
   

  	
  D.

  	
  ENVIRONMENTAL LIABILITY

  	
  66

  
	
  XI.

  	
  ASSIGNMENT, SUBLETTING, AND
  GROUND HANDLING

  	
  69

  
	
   

  	
  A.

  	
  ADVANCE APPROVAL

  	
  69

  
	
   

  	
  B.

  	
  ASSIGNMENT

  	
  70

  
	
   

  	
  C.

  	
  SUBLEASE AGREEMENT

  	
  70

  
	
   

  	
  D.

  	
  GROUND HANDLING AGREEMENT

  	
  71

  
	
   

  	
  E.

  	
  BANKRUPTCY

  	
  71

  
	
  XII.

  	
  ARBITRATION

  	
  73

  
	
  XIII.

  	
  SUPPLEMENTAL AGREEMENTS

  	
  74

  
	
   

  	
  A.

  	
  GOLD CONCOURSE

  	
  74

  
	
   

  	
  B.

  	
  TEMPORARY REGIONAL TERMINAL

  	
  77

  
	
   

  	
  C.

  	
  FIS BAG BELT ENCLOSURE

  	
  80

  
	
   

  	
  D.

  	
  TERMINAL BUILDING

  	
  81

  
						

 

iii

 

	
   

  	
  E.

  	
  MONTH TO MONTH PREMISES

  	
  81

  
	
  XIV.

  	
  EVENTS OF DEFAULT; REMEDIES

  	
  82

  
	
   

  	
  A.

  	
  EVENTS OF DEFAULT

  	
  82

  
	
   

  	
  B.

  	
  REMEDIES

  	
  83

  
	
  XV.

  	
  TERMINATION

  	
  85

  
	
   

  	
  A.

  	
  TERMINATION BY MAC

  	
  85

  
	
   

  	
  B.

  	
  TERMINATION BY AIRLINE

  	
  85

  
	
   

  	
  C.

  	
  TERMINATION BY GOVERNMENT
  TAKING

  	
  86

  
	
  XVI.

  	
  GENERAL PROVISIONS

  	
  87

  
	
   

  	
  A.

  	
  INTERPRETATION

  	
  87

  
	
   

  	
  B.

  	
  COMPLIANCE WITH LAW

  	
  87

  
	
   

  	
  C.

  	
  CIVIL/HUMAN RIGHTS LAWS

  	
  90

  
	
   

  	
  D.

  	
  ECONOMIC NONDISCRIMNATION

  	
  91

  
	
   

  	
  E.

  	
  GRANTING OF MORE FAVORABLE
  TERMS

  	
  91

  
	
   

  	
  F.

  	
  CONSENTS, APPROVALS, AND
  NOTICES

  	
  92

  
	
   

  	
  G.

  	
  WAIVER

  	
  92

  
	
   

  	
  H.

  	
  APPLICABLE LAW AND FORUM
  SELECTION

  	
  93

  
	
   

  	
  I.

  	
  SUCCESSORS

  	
  93

  
	
   

  	
  J.

  	
  INSPECTION

  	
  93

  
	
   

  	
  K.

  	
  QUIET ENJOYMENT

  	
  94

  
	
   

  	
  L.

  	
  NON-LIABILITY OF AGENTS AND
  EMPLOYEES

  	
  94

  
	
   

  	
  M.

  	
  NO PARTNERSHIP OR AGENCY

  	
  94

  
	
   

  	
  N.

  	
  SECURITY

  	
  94

  
	
   

  	
  O.

  	
  SUBORDINATION TO AGREEMENTS
  WITH THE U.S. GOVERNMENT

  	
  96

  
						

 

iv

 

	
   

  	
  P.

  	
  NO EXCLUSIVE RIGHT

  	
  96

  
	
   

  	
  Q.

  	
  CONCERNING DEPRECIATION AND
  INVESTMENT CREDIT

  	
  96

  
	
   

  	
  R.

  	
  ATTORNEY’S FEES

  	
  97

  
	
   

  	
  S.

  	
  SAVINGS

  	
  97

  
	
   

  	
  T.

  	
  MASTER TRUST INDENTURE

  	
  97

  
	
   

  	
  U.

  	
  TERMINATION OF PRIOR AGREEMENTS

  	
  98

  

 

v

 

EXHIBITS

 

	
   

  	
   

  	
   

  	
   

  
	
  A

  	
  -

  	
   

  	
  Airport Layout Plan

  
	
   

  	
   

  	
   

  	
   

  
	
  B

  	
  -

  	
   

  	
  Airfield

  
	
   

  	
   

  	
   

  	
   

  
	
  C

  	
  -

  	
   

  	
  Terminal Building

  
	
   

  	
   

  	
   

  	
   

  
	
  D

  	
  -

  	
   

  	
  Terminal Apron/Terminal
  Ramp

  
	
   

  	
   

  	
   

  	
   

  
	
  E

  	
  -

  	
   

  	
  Gold Concourse

  
	
   

  	
   

  	
   

  	
   

  
	
  F

  	
  -

  	
   

  	
  Landside Area

  
	
   

  	
   

  	
   

  	
   

  
	
  G

  	
  -

  	
   

  	
  Other Areas

  
	
   

  	
   

  	
   

  	
   

  
	
  H

  	
  -

  	
   

  	
  International Regularly
  Schedule Airline Service Criteria

  
	
   

  	
   

  	
   

  	
   

  
	
  I

  	
  -

  	
   

  	
  2010 Plan

  
	
   

  	
   

  	
   

  	
   

  
	
  J

  	
  -

  	
   

  	
  Premises

  
	
   

  	
   

  	
   

  	
   

  
	
  K

  	
  -

  	
   

  	
  Guidelines for
  Administering Validated Airport Parking

  
	
   

  	
   

  	
   

  	
   

  
	
  L

  	
  -

  	
   

  	
  Regional Aircraft Parking
  Plan

  
	
   

  	
   

  	
   

  	
   

  
	
  M

  	
  -

  	
   

  	
  Indirect Cost Center
  Allocations

  
	
   

  	
   

  	
   

  	
   

  
	
  N

  	
  -

  	
   

  	
  Illustration of Calculation
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vi

 

AIRLINE
OPERATING AGREEMENT AND TERMINAL BUILDING LEASE

 

MINNEAPOLIS-ST.
PAUL INTERNATIONAL AIRPORT

 

THIS AGREEMENT (hereinafter referred to as “Agreement” or “Airline Operating
Agreement and Terminal Building Lease”), effective as of January 1, 1999, by
and between the Metropolitan Airports Commission, a public corporation under
the laws of the State of Minnesota (hereinafter referred to as “MAC” or “Commission”),
and Northwest Airlines, Inc. a corporation organized and existing under the laws
of the State of Minnesota and authorized to do business in the State of
Minnesota (hereinafter referred to as “AIRLINE”).

 

WHEREAS, MAC owns and operates the Airport (as hereinafter defined) and has
the power to grant rights and privileges thereto; and

 

WHEREAS, AIRLINE operates an Air Transportation Business (as hereinafter
defined) and desires to use or lease from MAC certain premises and facilities
and to acquire from MAC certain rights and privileges in connection

with its use of the Airport;

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants
and agreements herein contained, MAC and AIRLINE agree as follows:

 

I.              DEFINITIONS

 

A.            DEFINITIONS

 

1.             “Affiliated Airline” means an Airline other
than AIRLINE that (a) operates aircraft of 72 passenger seats or less at the
Airport and is party to a code share agreement with AIRLINE applicable to such Airline’s
flights to and from the Airport, (b) has signed an Airline Operating Agreement
and Terminal Building Lease similar to the form of this Agreement, and (c) has
been designated in writing by AIRLINE as an “affiliate” of AIRLINE.

2.             “Air Operations Area” and “AOA” shall be interchangeable
terms and both terms shall mean any area of the Airport used or intended to be
used for landing, taking off, or surface maneuvering of aircraft, including the
tug drive and all other areas shown on Exhibit A or as amended by the Executive
Director, within that portion of the Airport which is enclosed by fencing,
walls, or other barriers and to which access is controlled through designated
entry points, but excluding all exclusive leasehold areas. 

 

3.             “Air Transportation Business” means the
carriage by aircraft of persons or property as a common carrier for
compensation or hire, or the carriage of mail by aircraft in commerce, and
activities directly related thereto.

 

4.             “AIRLINE” means the entity that has executed
this Agreement.

 

1

 

5.
            “Airline” means an entity (including AIRLINE)
that operates an Air Transportation Business at the Airport.

 

6.
            “Airport” means Minneapolis-St. Paul
International Airport located in Hennepin County, Minnesota, including but not
limited to those contiguous and non-contiguous areas shown on Exhibit A
attached hereto and incorporated herein, together with any additions thereto,
or improvements or enlargements thereof, hereafter made, whether contiguous or
not.

 

7.
            “Airport Cost Centers” means areas of the
Airport and the Airport System to be used in accounting for airport revenues
and expenses and for calculating and adjusting certain rents, fees, and charges
described herein, as shown in Exhibits B, C, D, E, F and G as such areas now
exist or may hereafter be modified or extended, and as more particularly
described below. Such Exhibits B, C, D, E, F and G shall be updated
periodically to reflect changes to Airport Cost Centers.

 

a.
            “Airfield” means the runways, taxiways,
approach and clear zones, safety areas, infield areas, landing and navigational
aids, and other facilities and land areas which are not leased to any entity
and are required by or related to aircraft operations (landings, takeoffs, and
taxiing) at the Airport and other facilities as generally shown on Exhibit B
including, but not limited to, the control tower, roads, tunnels, and
collection and processing facilities for deicing agents and shall include
on-Airport noise costs and Off-Airport Aircraft Noise Costs, but excluding any
areas under lease at any time.

 

b.
            “Terminal Building” means the passenger
terminal buildings known as the Lindbergh Terminal, the Regional Terminal, the
Southwest Addition, Red Concourse, Blue Concourse, and Green Concourse as shown
on Exhibit C, including the Temporary Regional Terminal and related facilities
at the Airport including, but not limited to, underground parking beneath the
Lindbergh Terminal, a portion of the auto rental/parking/terminal people mover,
the Ground Transportation Center (the “GTC”), skyways, and the Energy
Management Center, together with additions and/or changes thereto (but
excluding the Gold Concourse, but including the IAF).

 

c.
            “Terminal Apron” and “Terminal Ramp” shall be
interchangeable terms and both terms shall mean the aircraft parking apron
serving both the Terminal Complex and the commuter airlines, which latter area
is known as the Regional Ramp, as shown on Exhibit D, together with any
additions and/or changes thereto.

 

2

 

d.              “Gold Concourse” means the original Loading
Pier A which consists of gates 1-9, the Loading Pier A Extension which consists
of the balance of the gates (gates 10 through the end of the concourse), and
the Gold World Club, all as more specifically depicted on Exhibit E.

 

e.
            “Humphrey Terminal” means the Hubert H.
Humphrey Terminal building located on 34th Avenue South at the Airport or any
replacement facility.

 

f.
             “International Arrivals Facility” or “IAF”
shall be interchangeable terms and both terms shall mean the space in the
Terminal Complex utilized for the arrival and departure of international
flights, all as more specifically depicted on Exhibit C.

 

g.
            “Reliever Airports” means the general aviation
airports owned and operated by Commission, including but not limited to St.
Paul Downtown Airport, Flying Cloud Airport, Crystal Airport, Anoka
County-Blaine Airport, Lake Elmo Airport, and Airlake Airport.

 

h.
            “Landside Area” means the upper and lower
level terminal roadways, the inbound and outbound terminal roads, the
commercial lane, rental car service and storage areas, a portion of the auto
rental/parking/terminal people mover, rental car ready/return areas, skyways,
and the automobile parking areas (except the underground parking beneath the
Lindbergh Terminal) at the Airport as shown on Exhibit F.

 

i.
             “Equipment Buildings” means the building and
ground areas at the Airport provided for the storage of equipment owned and/or
rented/leased by MAC including, but not limited to, shops, storage facilities,
and vehicle parking areas.

 

j.
             “ARFF” means the building and ground areas at
the Airport provided for aircraft rescue and fire fighting functions.

 

k.
            “Police” means the building and ground areas
at the Airport provided for police functions.

 

l.
             “Administration” means the building and ground
areas at the Airport provided for MAC administration activities including, but
not limited to, the general office building and the Terminal Building.

 

m.
           “Other Areas” means all other direct cost building and ground areas at
the Airport provided for general aviation, cargo, aircraft maintenance, and
other aviation- and nonaviation-related activities as shown on Exhibit G.

 

3

 

8.
            “Airport Bonds” means general airport revenue
bonds, general obligation bonds, commercial paper, and other forms of
indebtedness incurred or assumed by the Commission in connection with the
ownership or operation of the Airport System and payable from MAC revenues.

 

9.
            “Airport Grants” means those moneys
contributed to the Commission by the United States or any agency thereof, or by
the State of Minnesota, or any political subdivision or agency thereof, to pay
for all or a portion of the cost of a Capital Project.

 

10.
          “Airport System” means the Airport and the Reliever Airports.

 

11.
          “Capital Cost” (or a phrase of similar import) means the sum of (a)
project costs, which includes any expenditures to acquire, construct, or equip
a Capital Project, together with related costs such as planning fees,
architectural and engineering fees, program management fees, construction
management fees, fees for environmental studies, testing fees, inspection fees,
impact fees, other direct and allocable fees, and interest during construction,
and (b) financing costs, if any, such as capitalized interest, costs of
issuance, and funding of mandatory reserves with bond proceeds. In the case of
estimates, Capital Costs also include an allowance for contingencies.

 

12.
          “Capital Project” means (a) the acquisition of land or easements; (b)
the purchase of machinery, equipment, or rolling stock; (c) the planning,
engineering, design, and construction of new facilities; (d) the remediation of
environmental contamination, including noise mitigation, or expenditures to
prevent or protect against such contamination; or (e) the performance of any
extraordinary, non-recurring major maintenance of existing facilities that may
be acquired, purchased, or constructed by Commission to improve, maintain, or
develop the Airport; provided, however, that any single item of the foregoing
has a Capital Cost of $100,000 or more and a useful life in excess of three
years.

 

13.
          “Capital Outlay” means any item that fails to meet the cost threshold
and useful life criterion necessary to qualify as a Capital Project.

 

14.
          “Commission” and “MAC” shall be interchangeable terms and both terms
shall mean the Metropolitan Airports Commission, a public corporation organized
and operating pursuant to Chapter 500, Laws of Minnesota 1943 and amendments
thereto.

 

15.
          “Common Use Formula” means a formula that prorates the cost of a service
or space, excluding the Regional Ramp, among those Airlines actually using the
service or space as follows: 20 percent of the cost equally among each such
Airline and 80 percent of the cost on the basis of that proportion which the
number of each such Airline’s Enplaned Passengers at the Airport bears to the
total number of Enplaned Passengers of all such Airlines at the Airport;
provided, however, that Airlines that only operated aircraft with 40 seats or
less during the relevant period will be excluded from the proration of the 20
percent of costs, but included in the proration of 80% of costs.

 

4

 

16.
          “Current Cost Estimate” means as of the date of the estimate, the total
project costs in then current dollars, for one or more or all of the 2010 Plan
Airfield Programs, as the context shall determine, as estimated by MAC. The
Current Cost Estimate shall reflect actual costs for completed projects, bid
amounts when available, and change orders accepted by MAC (including
contingencies).

 

17.
          “Coverage Account” means the Coverage Account established and maintained
pursuant to the terms of the Trust Indenture.

 

18.
          “Date of Beneficial Occupancy” or “DBO” means the earlier of (a) the
date on which the Commission certifies that Premises or Capital Project are
available for beneficial use or (b) the date on which beneficial use is first
made of Premises or Capital Project; provided, however, that with respect to
land and other non-depreciable assets, the date on which beneficial occupancy
occurs is the date of closing.

 

19.
          “Deplaned Passenger” means all terminating passengers and online or
interline transfer passengers deplaned at the Airport, but excluding Through
Passengers and Non-Revenue Passengers.

 

20.
          “Executive Director” means Commission’s Executive Director or such other
person designated by the Executive Director to exercise functions with respect
to the rights and obligations of Commission under this Agreement.

 

21.
          “Enplaned Passengers” means all Originating Passengers and connecting
passengers boarded at the Airport, including passengers traveling on frequent
flyer coupons, but excluding Through Passengers and Non-Revenue Passengers.

 

22.
          “Environmentally Regulated Substances” means any elements, compounds,
pollutants, contaminants, or toxic or Hazardous Substances, material or wastes,
or any mixture thereof, regulated pursuant to any Environmental Law, including
but not limited to products that might otherwise be considered of commercial
value, such as asbestos, polychlorinated biphenyls, petroleum products and
byproducts, glycol and other materials used in de-icing operations.

 

23.
          “Environmental Law (or Laws)” means any case law, statute, rule,
regulation, law, ordinance or code, whether local, state or federal, that
regulates, creates standards for or imposes liability or standards of conduct
concerning any element, compound, pollutant, contaminant, or toxic or Hazardous
Substance, material or waste, or any mixture thereof, including but not limited
to products that might otherwise be considered of commercial value, such as
asbestos, polychlorinated biphenyls and petroleum products and byproducts. Such
laws shall include, but not be limited to, the National Environmental Policy
Act (“NEPA”) 42 U.S.C.

 

5

 

Section 4321 et seq., the
Comprehensive Environmental Response, Compensation and Liability Act
(“CERCLA”), 42 U.S.C. Section 9601 et seq., the Resource Conservation and
Recovery Act (“RCRA”), 42 U.S.C. Section 6901 et seq., the Federal Water
Pollution Control Act (“FWPCA”), 33 U.S.C. Section 1251 et seq. the Federal
Clean Air Act (“FCAA”), 42 U.S.C. Section 7401 et seq., the Toxic Substances
Control Act (“TSCA”), 15 U.S.C. Section 2601 et seq., the Federal Insecticide,
Fungicide and Rodenticide Act (“FIFRA”), 7 U.S.C. Section 136 et seq., and any
amendments thereto, as are now or at any time hereafter may be in effect, as
well as their state and local counterparts, including but not limited to the
Minnesota Environmental Response and Liability Act (“MERLA”), Minn. Stat.
Section 115B, the Minnesota Petroleum Tank Release Clean Up Act (“MPTRCA”),
Minn. Stat. Section 115C, and the Minnesota Environmental Rights Act (“MERA”),
Minn. Stat. Section 116B.

 

24.
          “FAA” means the Federal Aviation Administration of the U.S. Government
or any federal agencies succeeding to its jurisdiction.

 

25.
          “Fiscal Year” refers to Commission’s fiscal year and means the
twelve-month period commencing on January 1 and ending December 31.

 

26.
          “Facilities Construction Credit” and “Facilities Construction Credits”
shall mean the amounts resulting from an arrangement embodied in a written
agreement of the MAC and an Airline pursuant to which the MAC permits such
Airline to make a payment or payments to the MAC which is reduced by the amount
owed by the MAC to such Airline as a result of such Airline upfronting and
paying for the cost of construction of MAC improvements under such agreement,
resulting in a net payment to the MAC by such Airline. The “Facilities
Construction Credit” shall be deemed to be the amount owed by the MAC under
such agreement which is “netted” against the payment of such Airline to the
MAC.

 

27.
          “Ground Handling” means providing airside services to an aircraft,
including, but not limited to, wing walkers, marshalling, lavatory services,
aircraft cleaning and maintenance, luggage transfer and providing catering
supplies, but not including fueling or any services provided directly to
passengers in the Terminal Complex other than baggage handling.

 

28.
          “Hazardous Substances” shall be interpreted in the broadest sense to include
any and all substances, materials, wastes, pollutants, oils or governmental
regulated substances or contaminants as defined or designated as hazardous,
toxic, radioactive, dangerous, or any other similar term in or under any of the
Environmental Laws, including but not limited to asbestos and asbestos
containing materials, petroleum products including crude oil or any fraction
thereof, gasoline, aviation fuel, jet fuel, diesel fuel, lubricating oils and
solvents, urea formaldehyde,

 

6

 

flammable explosives, PCBs,
radioactive materials or waste, or any other substance that, because of its
quantity, concentration, physical, chemical, or infectious characteristics may
cause or threaten a present or potential hazard to human health or the
environment when improperly generated, used, stored, handled, treated,
discharged, distributed, disposed, or released. Hazardous Substances shall also
mean any hazardous materials, hazardous wastes, toxic substances, or regulated
substances under any Environmental Laws.

 

29.
          “International Regularly Scheduled Airline Service” means a status of
international service as determined by MAC according to Exhibit H.

 

30.
          “Maximum Certificated Gross Landing Weight” means the maximum gross
landing weight in thousand-pound units based on the current FAA Type
Certificate Data Sheet applicable to the particular type, design, and model of
aircraft.

 

31.
          “Majority-In-Interest” (“MII”) means the Signatory Airlines who (a)
represent no less than 50 percent in number of the Signatory Airlines operating
at the time of the voting action and (b) paid no less than 40 percent of
landing fees incurred by Signatory Airlines during the preceding Fiscal Year.
No Airline shall be deemed a Signatory Airline for the purpose of determining a
Majority-In-Interest so long as the Commission has given written notice of an
event of default to such Airline and the event of default is continuing at the
time of the voting action.

 

32.
          “Non-Revenue Passengers” means passengers from whom the AIRLINE receives
no remuneration or only token remuneration, including employees of an airline
and others, but excluding passengers traveling on frequent flyer coupons.

 

33.
          “Off-Airport Aircraft Noise Costs” means the capital and operating costs
(including legal and administrative costs), net of any amounts for off-airport
aircraft noise costs received from nonsignatory airlines and/or federal and
state grants, connected to the acquiring of land or interests in land within the
2005 DNL 60 contours of the Airport, soundproofing of existing public and
private schools and day care facilities, public hospitals, nursing homes,
private single- and multi-family residences, and other categories of land use,
and implementing other programs to prevent, reduce or mitigate non-compatible
land uses within the 2005 DNL 60 contours of the Airport resulting from
aircraft noise emissions from turbojet aircraft. Such costs shall also include
but not be limited to liabilities or responsibilities imposed upon MAC for
noise in connection with the operation or use of the Airport, or from flights
to or from the Airport, or from aircraft thereon, or from takings or any other
causes of action related to aircraft noise or for settlement of claims based on
such causes of action.

 

7

 

 34.          “Operation and Maintenance Expenses” (or a
phrase of similar import) means, for any Fiscal Year, the costs incurred by the
Commission to operate, maintain, and administer the Airport System, including
but not limited to items a through j listed below, but excluding operation and
maintenance reserves and an optional Coverage Account associated with the
planned bond issues after January 1, 1999 in connection with the financing of
the 2010 Plan as shown on Exhibit I.

 

a.
            Personnel costs, including salaries and wages
of Commission employees and temporary workers (including overtime pay),
together with payments or costs incurred for associated payroll expenses such
as life, health, accident, and unemployment insurance premiums; contributions
to pension funds, retirement funds, union funds, and unemployment compensation
funds; vacation and holiday pay; post-retirement benefits; and other fringe
benefits;

 

b.
            Costs of materials, supplies, machinery and
equipment, and other similar expenses, which are not capitalized under
generally accepted accounting principles as evidenced by a written opinion of
MAC’s independent auditors;

 

c.
            Costs of maintenance, landscaping, decorating,
repairs, renewals, and alterations, which are not reimbursed by insurance and
which are not capitalized under generally accepted accounting principles as
evidenced by a written opinion of MAC’s independent auditors;

 

d.
            Costs of water, electricity, natural gas, fuel
oil, telephone service, and all other utilities and services whether furnished
by the Commission or furnished by independent contractors and purchased by the
Commission;

 

e.
            Cost of operating services, including services
for stormwater, airport shuttle bus, service agreements, and other cost of
operating services;

 

f.
             Costs of premiums for insurance covering the
Airport System and its operations maintained by MAC pursuant to this Agreement;

 

g.
            Costs incurred in collecting and attempting to
collect any sums for the Commission in connection with the operation of the
Airport System and the write-off of bad debts;

 

h.
            Except to the extent capitalized the
compensation paid or credited to persons or firms engaged by the Commission to
render advice and perform architectural, engineering, program management,
construction management, financial, legal,

 

8

 

accounting, testing, or other
professional services in connection with the operation of the Airport System;

 

i.
             Except to the extent capitalized, the fees of
trustees and paying agents, and all other fees and expenses incurred in order
to comply with the provisions of a master or supplemental trust indenture; and

 

j.
             All other expenses, which arise out of the
operation of the Airport System and which are properly regarded as operating
expenses under generally accepted accounting principles, provided, however,
that Operation and Maintenance Expenses shall not include any allowance for
depreciation, payments in lieu of taxes, the costs of improvements, extensions,
enlargements or betterments, or any charges for the accumulation of reserves
for capital replacements.

 

35.
          “Original Cost Estimate” means for one or more or all of the 2010 Plan
Airfield Programs, as the context shall determine, that were approved by a
Majority-In-Interest of the Signatory Airlines, the amount of estimated project
costs as specified in Exhibit I. The Original Cost Estimate includes
contingencies, but excludes financing costs, interest on bonds or on any
interim financing obtained by MAC to finance the 2010 Plan, and other deposits
and reserves.

 

36.
          “Originating Passengers” means Airline passengers for whom the Airport
is the point of origin in their air travel itinerary.

 

37.            “Passenger Facility Charges” or “PFCs” means
those charges on AIRLINE’s passengers using the Airport authorized under
Section 111 3(e) of the Federal Aviation Act of 1958, as amended by Section
9110 of the Omnibus Budget Reconciliation Act of 1990 (Pub. L. 101-508, 49
U.S.C. App. Section 1513), or any successor program authorized by federal law,
and the rules and regulations promulgated thereunder (14 C.F.R. Part 158,
hereafter the “PFC Regulations”).

 

38.
          “Premises” means the areas at the Airport leased by AIRLINE pursuant to
this Agreement, as set forth in Exhibit J.

 

39.
          “Rentable Space” means the space in the Terminal Building available for
lease to Airlines, concessionaires, and other rent-paying tenants and for
public automobile parking. Rentable Airline space is separated into the
following categories:

 

a.
            “Exclusive Use Space” means space leased by an
Airline for its exclusive use and occupancy.

 

9

 

b.
            “Preferential Use Space” means space leased by
an Airline on a preferential basis.

 

c.
            “Common Use Space” means space used by an
Airline in common with all other Airlines using the space.

 

40.
          “Rules and Regulations and Ordinances” means rules, regulations, and
ordinances adopted by the Commission pursuant to Minn. Stat. 473.608 et seq.
and rules pursuant to such rules, regulations, and ordinances.

 

41.
          “Security Area” means the Security Identification Display Area, the Air
Operations Area, and any other area defined by the FAA or MAC as an area of
restricted access requiring display of appropriate MAC-issued or MAC-approved
security identification for unescorted access rights.

 

42.
          “Security Identification Display Area” or “SIDA” (or a phrase of similar
import) means that area defined as such in the Master Security Program adopted
by MAC, approved by the FAA, and amended from time to time.

 

43.
          “Signatory Airlines” means Airlines that have executed agreements with
the Commission substantially the same as this Agreement.

 

44.
          “Stage 2 Operation” means a landing-and-takeoff cycle conducted using a
Stage 2 aircraft. A Stage 2 aircraft is determined in accordance with Section
36.1(f), Title 14, Code of Federal Regulations, and Federal Aviation
Administration Advisory Circular 36-3G, ESTIMATED AIRPLANE NOISE LEVELS IN
A-WEIGHTED DECIBELS, or successor documents.

 

45.
          “Stage 3 Operation” means a landing-and-takeoff cycle conducted using a
Stage 3 aircraft. A Stage 3 aircraft is determined in accordance with Section
36.1(f), Title 14, Code of Federal Regulations, and Federal Aviation
Administration Advisory Circular 36-3G, ESTIMATED AIRPLANE NOISE LEVELS IN
A-WEIGHTED DECIBELS, or successor documents.

 

46.
          “Terminal Complex” means the passenger terminal facilities consisting of
the Terminal Building, the Gold Concourse, and the International Arrivals
Facility.

 

47.
          “Through Passengers” means Airline passengers for whom the Airport is an
intermediate stop in their itinerary between their point of origin and their
point of destination, which intermediate stop does not involve a change of
plane.

 

48.
          “Total Landed Weight” means the sum of the Maximum Certificated Gross
Landing Weight for all aircraft arrivals over a stated period of time. Said sum
shall be rounded to the nearest thousand pounds for all landing fees.

 

10

 

49.            “Trust Indenture” means the Master Trust
Indenture between the Commission and Norwest Bank, Minnesota, N.A., as Trustee,
dated as of June 1, 1998 (for purposes of this Agreement, without giving effect
to any amendments thereto).

 

50.
          “2010 Plan” means the construction, acquisitions, and improvements to
the Airport System, as described in Exhibit I, as such may be revised from time
to time.

 

51.
          “2010 Plan Airfield Programs” means the programs in the 2010 Plan that
are subject to and have been approved by a Majority-In-Interest of the
Signatory Airlines, as described in Exhibit I.

 

52.            “VIP Club” means an area or areas designated
by the Commission which AIRLINE has made available primarily for seating of a
select group of members and their guests, as well as members (and their guests)
of VIP Clubs of other Airlines under reciprocal agreements with such other
Airlines, for which there is a daily or annual membership fee paid by the users
in an amount consistent with industry standards.

 

B.            HEADINGS AND CROSS REFERENCES

 

References in the text of
this Agreement to articles, sections, or exhibits of this Agreement, unless
otherwise specified, are for convenience in reference and are not intended to
define or limit the scope of any provisions of this Agreement.

 

11

 

II. TERM

 

The term of this Agreement shall begin as of
the effective date of this Agreement and end December 31, 2010, except as
expressly provided herein (hereinafter referred to as the “Term”), and the
rents, fees, and charges established in this Agreement shall apply to said
Term.

 

III. USE OF THE AIRPORT

 

A.            AIRLINE RIGHTS

 

AIRLINE shall have the
following rights to use the Airfield and the Premises for the conduct of
AIRLINE’s Air Transportation Business at the Airport. These rights are subject
to the terms of this Agreement and to MAC Rules and Regulations and Ordinances.
These rights are as follows:

 

1.
            To land upon, takeoff from, and fly over the
Airport using aircraft operated by AIRLINE in areas designated for such
purposes by MAC; provided, however, that effective January 1, 2000, AIRLINE
agrees not to conduct any Stage 2 Operation at the Airport.

 

2.
            To taxi, tow, and park aircraft operated by
AIRLINE in areas designated for such purposes by MAC. Subject to reasonable
Rules and Regulations and Ordinances, AIRLINE may operate regional jets on the
Terminal Apron, but pursuant to Commission policy AIRLINE may not operate turbo
prop aircraft on any portion of the Terminal Apron other than the Regional
Ramp.

 

3.
            To provide the following services for itself
and any Affiliated Airlines and, either directly or through an Airline
consortium or an approved handling agreement, for other Airlines, either by
itself or in conjunction with other Signatory Airlines:

 

a.
            Passenger handling services, including
enplaning and deplaning passengers, handling reservations, ticketing, billing,
manifesting, baggage check-in, interline and lost baggage services, and other
services necessary to process passengers and baggage for air travel.

 

b.
            Ground Handling.

 

c.
            Aircraft and equipment services, including
services to repair, maintain, test, park, and store aircraft and ground support
equipment.

 

d.
            Operational services, including de-icing
aircraft and ramp services, dispatching and communication services, and
meteorological and navigational services.

 

e.
            Porter services.

 

f.
             Security screening services; provided that the
level and quality of such services shall meet or exceed the level and quality
of such services at comparable airports.

 

g.
            Mail, freight, and express package services.

 

12

 

4.
            To train personnel in the employ, or working
under the direction, of AIRLINE or of any other Airline; but only to the extent
that such training is incidental to the conduct of AIRLINE’s Air Transportation
Business at the Airport.

 

5.
            To sell, lease, transfer, dispose, or exchange
AIRLINE’s aircraft, aircraft engines, aircraft accessories, other equipment,
and supplies to any other party, but only to the extent that such activities
are incidental to the conduct of AIRLINE’s Air Transportation Business at the
Airport.

 

6.
            To acquire by purchase or otherwise any goods
or services required by AIRLINE in the conduct of its Air Transportation
Business at the Airport from any supplier, contractor, or Signatory Airline
subject to the conditions of this Agreement.

 

7.
            To install and maintain in AIRLINE’s Exclusive
and Preferential Use Premises at AIRLINE’s sole cost and expense, signs,
posters, displays, banners, pamphlets, and other materials that identify and
promote AIRLINE’s Air Transportation Business or that identify and promote
AIRLINE’s Air Transportation Business and one or more of AIRLINE’s partners in
a joint marketing program. Such signs shall be constructed, installed and
maintained consistent with professional, first class standards. AIRLINE shall
not place such signs, posters, displays, banners, pamphlets and other materials
outside of AIRLINE’s Exclusive and Preferential Use Premises without MAC’s
prior written consent. Any signs in violation of this Section may be removed by
MAC.

 

8.
            To install, maintain and operate at no cost to
MAC, alone or in conjunction with any other Signatory Airline, radio
communication, computer, meteorological and aerial navigation equipment and
facilities on AIRLINE’s Premises; provided, however, that any such future
installations shall be subject to the prior written approval of MAC (not to be
unreasonably withheld).

 

9.
            To maintain and operate directly or through a
subcontractor a kitchen or other plant without cost to MAC within areas leased
to it at the Airport outside of the Terminal Complex for the purpose of
preparing and dispensing in-flight food and beverages (for consumption by
passengers and crews on board aircraft of AIRLINE or any Affiliated Airline),
including alcoholic beverages subject to procuring licenses and insurance
therefor.

 

a.             To maintain combination lunch and locker rooms
in AIRLINE’s Exclusive Use Premises for use by AIRLINE’s employees.

 

10.
          To install, maintain, and operate customer relations, security and
holdroom facilities and equipment, administrative offices, crew facilities,
ready rooms, operations offices, training facilities, and related facilities,
and to install personal property, including furniture, furnishings, supplies,
machinery and equipment, in AIRLINE’s Exclusive Use Premises.

 

13

 

11.
          To have ingress to and egress from the Airport and AIRLINE’s Premises
for AIRLINE’s officers, employees, agents, contractors, passengers, and
invitees, including furnishers of goods and services.

 

12.
          To use, for the benefit of AIRLINE’s employees who perform substantially
all of their work at the Airport, vehicular parking areas not leased by AIRLINE
designated by MAC, subject to the right of MAC to relocate the same from time
to time and to levy reasonable charges for the use thereof.

 

13.
          To obtain Garage Parking Cards pursuant to MAC’s Guidelines for
Administering Validated Airport Parking, which are incorporated herein as
Exhibit K.

 

14.
          To install soft drink vending machines and snack vending machines in
that section of AIRLINE’s Premises which are not intended to be open to the
general public for the sole use of AIRLINE’s officers, employees and agents.
Vending machines shall not be within the view of the general public and
locations of all vending machines installed after the date of this Agreement
are subject to the prior written approval of MAC.

 

15.
          To operate a VIP Club or Clubs in areas authorized by this Agreement
subject to the following restrictions: (a) AIRLINE may provide food, beverage,
newspapers and magazines to Club users provided that it is without charge;
provided that alcoholic beverages may be sold if provided by MAC or MAC’s
concessionaires or, subject to any restrictions contained in the existing
agreement between MAC and Host International, Inc. (which rights will not be
extended past December 31, 2003 or granted to another party) if a concessions
fee is paid to MAC in an amount equal to twelve percent (12%) of gross sales;
(b) AIRLINE may provide Club users access to telephones, facsimile machines,
copy machines and including computer access and access to the internet via data
ports; (c) AIRLINE may rent conference rooms, which are no larger than 300
square feet each and a maximum of 1,000 square feet per Club, to VIP Club users
only. AIRLINE may not install cash machines or vending machines, sell
merchandise or conduct any other retail business within a VIP Club. No other
services may be provided unless prior written approval is obtained from the
Executive Director.

 

16.
          To install telephones, facsimile machines, and other telecommunications
devices and conduit in AIRLINE’s Premises that are not accessible to the
public.

 

17.
          To install one or more of the following: flight information display
systems (“FIDS”), baggage information display systems (“BIDS”), or ramp
information display systems (“RIDS”) in the Premises and other areas approved
by the Executive Director at no cost to MAC, provided, however, that MAC may,
in connection with its installation of a multiple

 

14

 

user flight information
display system (“MUFIDS”) in the Terminal Complex, purchase the FIDS system
currently being developed by Northwest Airlines at a mutually agreed upon
price. Northwest agrees that: (a) this system will interface with other
Airlines serving the Airport, (b) this system will utilize a technical approach
which provides flight data across a local area network (“LAN”) that meets MAC
and Northwest requirements, (c) architectural details of the installation of
this system must be approved by MAC, and (d) MAC may participate in the
supplier selection process for this system.

 

18.
          To install self-service ticketing devices (“SSDs”) in areas approved by
the Executive Director and added to the Premises.

 

19.
          To maintain and operate without cost to MAC a reasonable amount of air
conditioning equipment, including without limiting the generality thereof the
operation of air conditioning truck equipment for the air conditioning of
aircraft, either alone or in conjunction with other Signatory Airlines.

 

B.
           EXCLUSIONS, RESERVATIONS, AND CONDITIONS

 

Except as authorized by this
Agreement, AIRLINE may conduct no business on the Airport without the prior
written consent of MAC.

 

1.
            Wherever under this Article III, AIRLINE or
AIRLINE in conjunction with other Airlines carries on permitted operations
through the agency of third persons or corporations not employees or
subsidiaries of AIRLINE or of such other Airlines such third persons or
corporations shall first be approved by the Executive Director in writing,
which approval will not be unreasonably withheld.

 

2.
            MAC reserves the right to contract for the
sale to the public of food, beverages (including alcoholic beverages), tobacco,
merchandise, personal services, and business services within the Terminal
Complex, and to charge for the privilege so to do.

 

3.
            MAC reserves the right to assess the following
fees and charges to suppliers of goods and services:

 

a.
            MAC may charge suppliers, including Airlines,
of in-flight food and beverages and vending that are supplied to any third
party other than an Affiliated Airline but not to any such third party to whom
such food and beverage was supplied without charge by MAC as of April, 1998.

 

b.
            MAC shall have the right to charge suppliers
to AIRLINE of goods and services, fees and rentals for exclusive use of MAC
property or improvements thereon or, as to suppliers not under contract with

 

15

 

AIRLINE, when their use is
such as to constitute the performance of a commercial business at the Airport.

 

c.
            MAC shall have the right to charge ground
transportation companies, including AIRLINE, or ground transportation companies
under agreement with AIRLINE, if regularly engaged in ground transportation
business, for ground transportation of passengers or others to or from the
Airport.

 

4.
            AIRLINE shall take all reasonable steps within
its control so as not to interfere with the effectiveness or accessibility of
the drainage and sewage system, electrical system, air conditioning system,
fire protection system, sprinkler system, alarm system, fire hydrants and
hoses, if any, installed or located on or within the Premises or the Airport.

 

5.
            AIRLINE shall not do or permit to be done any
act upon the Airport that will invalidate or conflict with any fire or other
casualty insurance policies of MAC covering the Airport or any part thereof.

 

6.
            AIRLINE shall not dispose of or permit any
other person to dispose of any waste material taken from or products used
(whether liquid or solid) with respect to its aircraft into the sanitary or
storm sewers at the Airport unless such waste material or products first be
properly treated by equipment installed for that purpose or otherwise disposed
of pursuant to law. All such disposal shall comply with regulations of the
United States Department of Agriculture and shall be in compliance with this
Agreement.

 

7.
            AIRLINE shall not keep or store, during any
24-hour period, flammable liquids within the enclosed portion of the Premises
in excess of AIRLINE’s working requirements during said 24-hour period, except
in storage facilities and containers especially constructed for such purposes
in accordance with standards established by the National Board of Fire
Underwriters and approved by a governmental agency with authority to inspect
such facilities for safety compliance. Any such liquids having a flash point of
less than 100° shall be kept and stored in safety containers of a type approved
by the Underwriters Laboratories.

 

8.
            AIRLINE shall promptly remove and dispose of
any disabled aircraft that obstruct any part of the Airport, including any
parts thereof, subject, however, to any requirements or direction by the
National Transportation Safety Board, the FAA, or the Executive Director that
such removal or disposal be delayed pending an investigation of an accident.
AIRLINE consents that the Executive Director may take any and all necessary
actions to effect the prompt removal or disposal of any disabled aircraft that
obstructs any part of the Airport; that any costs incurred by or on behalf of
the Airport for any such removal or disposal of any aircraft shall be paid by
AIRLINE to MAC; that any claim for compensation against MAC, and any of its
officers, agents, or employees, for any and all loss

 

16

 

or damage sustained to any
such disabled aircraft, or any part thereof, by reason of any such removal or
disposal is waived; and that AIRLINE shall indemnify, hold harmless, and defend
MAC, and all of its officers, agents, and employees against any and all
liability for injury to or the death of any person, or for any injury to any
property arising out of such removal or disposal of said aircraft.

 

9.
            Unless otherwise authorized by this Agreement,
AIRLINE shall not maintain or operate on the Airport a cafeteria, restaurant,
bar, or cocktail lounge, stand, or any other facility for the purpose of
providing (and AIRLINE shall not otherwise provide) food, beverages, tobacco,
or merchandise for sale to the public.

 

10.            MAC has provided for underground aircraft
fueling facilities under agreements with Airlines and other users which
agreements control as to installation, maintenance, and operation of the
fueling facilities on the Terminal Apron and the Airport.

 

11.
          MAC may prohibit the use of the Airfield or Terminal Apron by any
aircraft operated or controlled by AIRLINE which exceeds the design strength of
the paving of the Airfield or Terminal Apron facilities, so long as such
prohibition also extends to similar aircraft operated by other Airlines.

 

12.
          Except as otherwise authorized by this Agreement, AIRLINE shall not
install, maintain or operate in the Terminal Complex, or permit the
installation, maintenance, or operation in the Terminal Complex, of any vending
machine or device designed to dispense or sell food, beverages, tobacco, or
merchandise of any kind.

 

13.
          Access to or egress from the Airport and the AIRLINE’s Premises shall
not be used, enjoyed, or extended to any person engaging in any activity or
performing any act or furnishing any service for or on behalf of AIRLINE that
is not authorized under the provisions of this Agreement unless expressly
authorized by MAC.

 

14.
          Subject to AIRLINE’s consent, MAC retains the right to install all
public telephones, facsimile machines, and other telecommunications devices and
conduit in the Premises leased to AIRLINE, and to collect the proceeds
therefrom.

 

15.
          MAC may designate points at which all-cargo flights may load and unload.

 

16.
          Except as otherwise authorized by this Agreement, AIRLINE shall not
sell, take orders for, or deliver duty free merchandise and international
travel merchandise on any outbound flight from the Airport under a program in
which AIRLINE solicits or accepts order for purchase by passengers of duty

 

17

 

free merchandise at any time prior to the departure of AIRLINE’s
aircraft on the outbound flight from the Airport.

 

17.           AIRLINE shall not contract to provide Ground
Handling services and shall not permit the use of its Premises through a Ground
Handling agreement without the advance written approval of MAC.

 

18

 

C.            USE OF THE INTERNATIONAL ARRIVALS FACILITY

 

MAC will control
prioritization and utilization of the IAF and  associated gates for international arrivals by
Airlines providing International
Regularly Scheduled Airline Service and may develop prioritization procedures not inconsistent with the terms of this Agreement. The
provisions in this Section C.
shall continue through December 31, 2015.

 

1.             In order to use the International Arrivals
Facility, AIRLINE must maintain
its status as International Regularly
Scheduled Airline Service. AIRLINE shall provide MAC a detailed written certification for each numbered element on Exhibit H, upon MAC’s
request. MAC retains the right to
verify the status of AIRLINE and
determine whether AIRLINE qualifies as International Regularly Scheduled Airline Service.

 

2.             Gates 1 through 9 and associated passenger
loading bridges, ramp access and
lobby and baggage facilities on
the Gold Concourse currently leased by Northwest Airlines, Inc. (hereinafter referred to as “Northwest” or “Northwest Airlines”) shall be
made available for access to the
International Arrivals Facility
based on the following priority of use:

 

a.             International Regularly Scheduled Airline Service
as defined in Exhibit H.

 

b.             Northwest or a Northwest Affiliated Airline domestic arrivals and departures.

 

c.             Non-scheduled irregular or delayed international charter arrivals when theexpected delay for the flight to use the Humphrey Terminal facility
will exceed 90 minutes and the use of an IAF gate will not interfere with the
scheduled use of that gate. Such interference shall be defined as the overlap
of the non-scheduled use with the scheduled use such that the scheduled flight
will have to be relocated to another concourse for its operation or will have
to wait for a gate due to the unavailability of any gate. Use of an IAF gate by
a non-scheduled flight is subject to Northwest’s approval; such approval is not
to be unreasonably withheld or delayed.   Northwest
shall designate an individual on site to give necessary approvals.

 

3.             Northwest shall provide all Ground Handling at
the IAF gates subject to air
carrier self-handling rights contained
in AIP grant assurances, at rates that do not exceed those specified in the Mutual Assistance Ground Service Agreement, and Northwest shall
also provide reasonable access
for air carriers to data and
communications systems at gates 1-9. Northwest shall be responsible for the operation and maintenance of security checkpoints, provided
that invoices for third party
maintenance of security equipment
shall be submitted directly to MAC for payment.

 

19

 

4.             No Airline aircraft will remain on gates 1-9
over two hours if a narrow-body or three hours if a wide-body. Northwest will
coordinate any moving of aircraft with MAC’s operations department, FAA and
appropriate federal inspections agencies. No Airline aircraft will remain on
gates 1-9 beyond the times specified above if a gate is needed by another air
carrier pursuant to the priority schedule set forth above.

 

5.             AIRLINE, if it self-handles, or Northwest, if
it provides Ground Handling to AIRLINE, on gates 1-9, shall handle and dispose
of all international waste on AIRLINE’s aircraft in accordance with the requirements
of the United States Department of Agriculture.

 

6.             Northwest shall be responsible for all
maintenance, repair, and operation of MAC jet bridges provided by MAC as part
of the IAF. Northwest shall make the MAC jet bridges available for use by all
users of the IAF without additional charge.

 

20

 

IV.                           PREMISES

 

A.            LEASED PREMISES

 

For the Term of this
Agreement, MAC, in consideration of the  compensation, covenants, and agreements set forth herein to be kept and performed by AIRLINE, hereby leases
to AIRLINE, upon the conditions
set forth in this Agreement, the areas in the Terminal Complex as described and identified in Exhibit J and the initial assignment of aircraft parking
positions as described and
identified in Exhibit D. AIRLINE shall lease these areas on an Exclusive, Preferential, or Common Use basis as follows:

 

	
  Ground Transportation
  Center Offices

  	
   

  	
  Exclusive

  
	
  Ticket
  counter and office

  	
   

  	
  Exclusive

  
	
  Baggage
  make-up area and claim office 

  	
   

  	
  Exclusive

  
	
  VIP
  Clubs

  	
   

  	
  Exclusive

  
	
  Operations
  areas

  	
   

  	
  Exclusive

  
	
  Enclosed
  storage areas

  	
   

  	
  Exclusive

  
	
  Holdroom

  	
   

  	
  Preferential

  
	
  Aircraft
  parking positions on Terminal Apron

  	
   

  	
  Preferential

  
	
  Regional
  Ramp - MAC

  	
   

  	
  Common

  
	
  Regional
  Ramp - Northwest Airlines

  	
   

  	
  Preferential

  
	
  Tug
  drive

  	
   

  	
  Common

  
	
  Inbound
  baggage area 

  	
   

  	
  Common

  
	
  Baggage
  claim area

  	
   

  	
  Common

  
	
  IAF
  sterile circulation corridor

  	
   

  	
  Common

  
	
  IAF Inspections Area 

  	
   

  	
  Common

  
	
  IAF
  baggage claim

  	
   

  	
  Common

  
	
  IAF
  ticketing and baggage recheck

  	
   

  	
  Common

  

 

In addition, MAC leases space
to Northwest Airlines, Inc. in  the Gold Concourse and the Temporary Regional Terminal as set forth herein.

 

MAC and AIRLINE may, from
time to time, add, subject to availability, additional space to the various
Premises of  AIRLINE by
jointly executing revised Exhibits J or D as appropriate. Space added to AIRLINE’s Premises shall be subject to all of the terms, conditions,
requirements, and limitations of
this Agreement and AIRLINE shall pay to MAC all rents, fees, and charges
applicable to such additional space in accordance with the provisions of this Agreement.

 

B.            EXCLUSIVE/PREFERENTIAL LEASED AREAS

 

1.             MAC will provide existing space to AIRLINE in “as
is” condition. MAC will provide
the following for any newly
constructed space:

 

a.             TERMINAL BUILDING - MAIN FLOOR TICKETING
COUNTER AND OFFICES BEHIND TICKETING AREAS.

 

21

 

1)             Finished flooring, finished acoustical tile ceiling, entrance doors and walls enclosing gross rental area. The floor immediately behind ticket counter shall be surfaced with terrazzo flooring or an equivalent alternative upon which AIRLINE may install resilient matting.

 

2)             Conditioned air for comfortable occupancy (meeting normal standards for offices).

 

3)             Standard lighting fixtures installed complete for illumination not less than an average of 30 foot candles measured 30 inches from the floor, and maintenance thereof exclusive of relamping and/or relocation.

 

4)             Finished ticket counter shell or sectional unit (front, top, ends and turrets)
of plastic laminate, designed to receive AIRLINE inserts.

 

5)             Uniform lighting fixture and airline
identification signage suspended over ticket counter; letters to be supplied by
AIRLINE and subject to MAC approval; maintenance of fixtures including
relamping.

 

6)             Display framing system and mounting panels on
wall directly behind the ticket counter (maintenance by AIRLINE). Material displayed
shall be subject to the approval of MAC.

 

7)             Electrical service (120V - 208 AC, 3 phase, 4
wire) to panel within lease space; electrical service (120V) through duplex
receptacles spaced about 6 feet apart along walls enclosing lease space; single
level 3-duct floor system or conduit in offices; conduit an/or ducts from power
panel and telephone cabinets to the floor duct system and ticket counter base.
All other wiring, conduits, ducts and outlets in this space to be installed by AIRLINE.

 

b.             TERMINAL BUILDING - MEZZANINE FLOOR.

 

1)             Finished flooring, finished acoustical tile
ceilings, entrance doors and walls enclosing gross rental area.

 

2)             Conditioned air for comfortable occupancy(meeting normal standards for offices).

 

22

 

3)             Standard lighting fixtures installed complete
for illumination not less than an average of 30 foot candles measured 30 inches
above floor and maintenance thereof exclusive of relamping and/or relocation.

 

4)             Electrical service (120V-AC) through duplex receptacles
about ten feet apart along walls enclosing gross rental area. All other wiring,
conduits and fittings to be
installed by AIRLINE.

 

c.             TERMINAL BUILDING - GROUND FLOOR (OPERATIONS AND BAGGAGE MAKE-UP AREAS).

 

1)             Finished concrete floors, exposed concrete
structure above, standard pedestrian and manual overhead doors in unpainted
concrete block walls enclosing gross rental area.

 

2)             Standard lighting fixtures installed complete
for illumination not less than an average of 30 foot candles measured 30 inches
from the floor and maintenance thereof exclusive of relamping and/or
relocation.

 

3)             Electrical service (120V - 208 AC, 3 phase, 4
wire) to panel within or adjoining leased space; 120V electrical service
through duplex receptacles about 15 feet apart (48 inches above floor) along
walls enclosing gross rental area. All other wiring, conduits and fittings to
be installed by AIRLINE.

 

4)             Heating and ventilation meeting requirements
of the Minnesota Occupational Safety and Health Administration (“OSHA”) and Uniform
Building Code (“UBC”).

 

d.             CONCOURSES - OPERATIONS AREA.

 

1)             Finished concrete floors, exposed structure above, exterior walls,
standard pedestrian and manual overhead doors, and unpainted concrete block enclosing
leased area.

 

2)             Standard lighting fixtures installed complete
for illumination not less than an average 30 foot candles measured 30 inches
from the floor, lighting fixtures

 

23

 

and maintenance thereof
exclusive of relamping and/or relocation.

 

3)             Electrical service (120V - 208 AC, 3 phase, 4
wire) to panel within or adjoining enclosed leased space; 120V electrical
service through duplex receptacles about 15 feet apart (48 inches above floor)
along walls enclosing leased space. All other wiring, conduit, duct, fittings
and outlets in this space to be installed by AIRLINE.

 

4)             Cold and hot water and sanitary sewer service
to designated point within gross rental area, to which AIRLINE may connect and install
fixtures at AIRLINE’s expense.

 

5)             Standard fin-tube radiation, unit heaters, VAV
boxes and steam and/or hot water for heating gross rental area. Packaged air conditioning
units and distribution duct work for previously designated areas.

 

e.             CONCOURSES - GATE LOBBIES.

 

1)             Finished carpeted floor, finished acoustical
tile ceilings, and painted block walls enclosing lobby.

 

2)             Conditioned air for comfortable lobby occupancy.

 

3)             Standard lighting fixtures installed complete
for illumination not less than an average of 30 foot candles measured 30 inches
from the floor, and maintenance thereof including relamping.

 

4)             Electrical service (120V-AC) through duplex receptacles
about 10 feet apart along walls enclosing gross rental area. All other wiring,
conduit and fittings to be installed by AIRLINE.

 

2.             AIRLINE will provide the following in both the
main terminal building and the
concourses, in addition to installation
and maintenance left to the AIRLINE under Subparagraph 1 above.

 

a.             All partitions subject to MAC approval as to materials, methods of
attachment and workmanship, such construction to comply with all applicable
building standards and codes for type 1 construction (fire resistive).

 

24

 

b.             All utilities, including cost of all roughing-in,
and all electrical, mechanical and plumbing fixtures for exclusive use of AIRLINE,
except as provided above.

 

c.             All furniture, equipment and fixtures necessary
for the conduct of AIRLINE’s business, including ticket counter inserts, jet
bridges, scales and baggage handling equipment, including housings and doors as
required, signs and flight schedules, which shall be subject to approval of
MAC.

 

d.             All electrical energy consumed by AIRLINE, excluding
lighting in baggage make-up area, gate lobbies, and mezzanine, to be metered separately
and paid for by AIRLINE to the utilities company or MAC at rates not exceeding
those published for equivalent power consumption at this location.

 

Electricity
for lighting in baggage make-up area, gate lobbies, and mezzanine will be provided
by MAC.

 

e.             All other services and supplies not provided in
Paragraph 1 of this Article IV.B. All installations by AIRLINE shall conform
with the requirements of applicable local, state and federal building
standards, submitted for MAC approval prior to construction, and shall be
performed by competent contractors acceptable to MAC.

 

f.              Subject to MAC approval as required herein AIRLINE
may make alterations or additions in and to its leased areas and fixtures and equipment
to be installed by it within the terminal building.

 

C.            COMMON BAG CLAIM AREAS

 

1.             MAC will provide in the common bag claim area,
all on the ground floor, the
following:

 

a.             Finished carpeted floors, acoustic ceiling, finished
walls, for all space excepting porter’s toilet.

 

b.             Standard lighting fixtures providing illumination
of not less than average of 30 foot candles measured 30 inches from the floor,
and maintenance thereof including relamping.

 

c.             Heating and mechanical ventilation of space.

 

d.             Baggage claim carousels.

 

2.             AIRLINE and other Airlines will provide the
following in the common bag claim area, and shall pay the pro rata share of the
cost thereof:

 

a.             All furniture, equipment and fixtures necessary
from time to time.

 

25

 

b.             All other services and supplies not provided by MAC under Paragraph 1
above.

 

D.            MEASUREMENT OF SPACE

 

In calculating the area of
space to be added to or deleted  from this Agreement, all measurements to determine the area of space leased or used in the Terminal Complex
shall be made from the primary
interior surface of the exterior walls and from the centerline to centerline of each interior wall, or, in the absence of such interior wall, the
point where such said centerline
would be located if such interior wall existed.

 

E.             ACCOMMODATION OF OTHER AIRLINES

 

1.             It is recognized by AIRLINE and MAC that from
time to time during the term of
this Agreement it may become necessary
for the AIRLINE to accommodate
another Airline (“Requesting Airline”) within its Premises or for MAC
unilaterally to require AIRLINE to accommodate another Airline(s) within
AIRLINE’s Premises in furtherance of the public interest of having the Airport’s
capacity fully and more effectively
utilized, as follows:

 

a.             To comply with any applicable rule, regulation,
order or statute of any governmental entity that has jurisdiction over MAC, and
to comply with federal grant assurances applicable to MAC.

 

b.             To implement a Capital Project at the Airport.

 

c.             To facilitate the providing of new or additional
air services at the Airport by a Requesting Airline when no Airline serving the
Airport is willing to accommodate the Requesting Airline’s operational needs or
requirements for facilities at reasonable costs or on other reasonable terms.

 

2.             When responding to Subsection E.1.a. of this
Article, MAC will request
accommodation through an expedited procedure
that will allow compliance with the rule, regulation or order. The request for accommodation will be made based on an evaluation of the
most cost effective and least
disruptive alternative.

 

Within ten (10) days of a
written notice of its  intent
to require accommodation, AIRLINE must accept the request or notify MAC that it wishes to meet and show cause why the accommodation should not be
made.

 

If MAC elects to proceed with
the accommodation after  meeting
with AIRLINE, MAC shall give AIRLINE not less than thirty (30) days notice to accomplish the accommodation.

 

3.             In responding to a request for facilities from
a Requesting Airline under
Subsection E.1.b. or Subsection
E.1.c. of this Article, MAC shall:

 

26

 

a.             First work with the Requesting Airline to attempt
to obtain access to existing Airport capacity through one or more of the following
alternatives:

 

1)             To lease vacant space, if any is available, from MAC; or

 

2)             To use existing Common Use Space, if any is
available; or

 

3)             To enter into a sublease or Ground Handling
agreement with an existing Airline other than AIRLINE at the Airport, subject
to the approval of MAC.

 

b.             When requested so to do by MAC and only if the
alternatives set forth in E.3.a. of this Article are not available, AIRLINE
agrees to use reasonable efforts to accommodate the Requesting Airline’s
requirements through joint use of its facilities or through a sublease or
passenger handling or Ground Handling agreements. AIRLINE, in offering joint
use of its facilities or offering a sublease or Ground Handling agreement to
the Requesting Airline, is not required to provide facilities to the Requesting
Airline that would be incompatible with AIRLINE’s (including an Affiliated
Airline’s) own reasonable schedule of operations or the operations of any other
Airline(s) being accommodated by AIRLINE at the time of the Requesting Airline’s
request. AIRLINE may, in connection with such accommodation, require the
Requesting Airline to remove any of its aircraft or passengers from the relevant
gate or holdroom if the aircraft’s or passenger’s continued presence would be incompatible
with AIRLINE’s (or an Affiliated Airline’s) reasonable requirements for use of
the gate or holdroom.

 

c.             MAC shall have the right to authorize other Airlines
to use: (1) AIRLINE’s gates, holdroom areas, and loading bridges when such
facilities are not required for AIRLINE’s scheduled flight activities (or those
of a code share AIRLINE partner not in default of its obligations to MAC) using
aircraft with 50 or more seats; and (2) AIRLINE’s preferential regional parking
positions or regional terminal space when such positions or space are not
required for AIRLINE’s scheduled flight activities (or those of a code share
AIRLINE partner not in default of its obligations to MAC). Subject to a
mutually acceptable agreement between MAC and AIRLINE covering such use,
AIRLINE shall have the right to charge reasonable fees and to require
reasonable advance payment for such use of AIRLINE’s gates, holdroom areas, and
loading bridges (and any such fees not in excess of 115% of the rates and
charges payable by AIRLINE hereunder for such premises shall be deemed
reasonable). Also, AIRLINE shall
have the right to require the
Requesting Airline(s) to indemnify
AIRLINE against liability arising out
of such use and to provide

 

27

 

evidence of insurance at
least equivalent  to that
required of AIRLINE hereunder and naming
AIRLINE as an additional insured.

 

d.             Before MAC is authorized under this Agreement
unilaterally to require AIRLINE to accommodate a Requesting Airline, MAC shall first
request that all parties holding or requesting access to affected space discuss
accommodation with each other and MAC. Only if the parties are unable to or do
not reach agreement within thirty (30) days from the time MAC requests such
discussions is MAC authorized to make such a decision unilaterally regarding
accommodations.

 

e.             If the Requesting Airline fails to reach agreement
with AIRLINE or any other Airline, MAC shall make a determination as to whether
any Airline or Airlines have underutilized facilities or capacity available to accommodate
the Requesting Airline after taking into consideration the nature and extent of
those Airlines’ operations at the Airport, including any requirements for spare
gates and facilities and whether there are any limitations on the nature,
extent, cost, duration and extension of such accommodations.

 

f.              In making accommodation decisions MAC shall not
be arbitrary and capricious. Such determinations by MAC shall take into consideration
(1) the then existing utilization of the premises (including all existing
accommodation arrangements) and any bona fide plan of AIRLINE or any other Airline
for the increased utilization of the premises to be implemented within twelve (12)
months thereafter; (2) the need for compatibility among the current schedules, flight
times, operations, operating procedures and equipment of AIRLINE or any other Airline
(and its Affiliated Airlines) and those of the Requesting Airline, as well as
the need for labor harmony; and (3) the effect on scheduled service carriers of
accommodating charter carriers at the Terminal Complex. Any non-public
information provided by AIRLINE regarding planned or proposed routes, schedules
or operations shall be treated as confidential by MAC to the maximum extent
permitted by law.

 

g.             Before MAC accommodates a Requesting Airline within
AIRLINE’s Premises, MAC must give AIRLINE due notice of its intent. Within ten (10)
days, AIRLINE must accept accommodation of Requesting Airline or must notify
MAC that it wishes to meet with MAC to show cause why the accommodation should
not be made.

 

h.             If MAC elects to proceed with the accommodation
after meeting with AIRLINE, MAC shall give AIRLINE not less than thirty (30)
days to accomplish the accommodation.

 

28

 

i.              Whether AIRLINE agrees to accept the accommodation
of Requesting Airline, or MAC elects to proceed with accommodation over AIRLINE’s
protests, the Requesting Airline has the right and the responsibility at its expense
to make improvements and alterations necessitated by the accommodation of the Requesting
Airline, the scope of which shall be approved by AIRLINE and MAC. If MAC issues
a decision requiring accommodation within AIRLINE’s Premises, that decision shall
be a final order of MAC; AIRLINE’s continued objections may be further pursued by
any means available under the law.

 

j.              The foregoing shall not be deemed to abrogate,
change, or affect any restrictions, limitations or prohibitions on assignment,
subletting or use of the premises by others under this Agreement and shall not
in any manner affect, waive or change any of the provisions thereof.

 

4.             In the event of a labor stoppage or other
event which results in the
cessation or substantial reduction in AIRLINE’s flights operations at the Airport, AIRLINE will immediately take all reasonable efforts,including but not limited to, moving of
aircraft or equipment, providing
access to AIRLINE’s holdrooms and
jet bridges or anything else in AIRLINE’s control, in order to accommodate the operations of other Airlines providing air service to the
Airport; provided that: (a)
AIRLINE at all times will have access
to its premises and equipment for operational reasons and (b) AIRLINE shall not be required to take any action which would interfere with its
ability to re-institute service
upon cessation of labor stoppage or
other event. ). Subject to a mutually acceptable agreement between MAC and AIRLINE covering such use, AIRLINE shall have the right to charge
reasonable fees and to require
reasonable advance payment for such
use of AIRLINE’s gates, holdroom areas, and loading bridges (and any such fees not in excess of 115% of the rates and charges payable by
AIRLINE hereunder for such
premises shall be deemed reasonable).

 

5.             Each Airline shall provide MAC with each
published schedule change with a
gate plot showing all times when
aircraft are scheduled to be utilizing each gate leased to such Airline, including aircraft type, projected arrival and departure times, and
point of origin or destination,
including activities by subtenants
or airlines being accommodated.

 

F.             WIDE BODY AND BOEING 757 ACCESS

 

Notwithstanding any other
provisions in this Agreement,  Northwest Airlines will accommodate the requirements of any Requesting Airline for scheduled wide body or
Boeing 757 (or similarly sized
aircraft) service at one of its gates within the Terminal Complex, provided that: (1) Requesting Airline must not be able

 

29

 

physically to accommodate
such wide body or Boeing 757 (or  similarly sized aircraft) service on any of its own leased premises; and (2) MAC will take all reasonable
efforts to provide access for any
narrow body aircraft operated by Northwest
which are displaced.

 

G.            ACCESS

 

MAC shall have the right at
any time or times to close,  relocate,
reconstruct, change, alter, or modify any means of access to or egress from the Airport or
AIRLINE’s Premises, either
temporarily or permanently; provided that MAC provides reasonable notice to AIRLINE and that a
reasonably convenient and
adequate means of access, ingress, and egress shall exist or be provided in lieu thereof. This right is
subject to the following
conditions:

 

1.             There shall not be a net increase in AIRLINE’s
Leased Area without AIRLINE’s
consent.

 

2.             MAC must consult with AIRLINE to take area
away from AIRLINE.

 

3.             Reasonable replacement facility space shall be
provided.

 

4.             Cost of work including Capital Costs
associated with reestablishing AIRLINE’s facilities, to the extent they are “in
kind” replacements, shall be borne by MAC and allocated to the appropriate cost
center.

 

5.             MAC shall compensate AIRLINE for the
unamortized cost of any leasehold improvements to the extent that such improvements
can not be reused.

 

6.             If loss of space is 30 days or less there
shall be no rent adjustment. If loss of space is temporary but greater than 30
days, AIRLINE’s rent will be proportionately abated and the amount of the rentabatement shall be allocated to the
appropriate cost center. If the
loss of space is permanent, the Leased Premises and corresponding rent shall be adjusted by lease amendment.

 

H.            SHORT TERM GATES

 

The holdrooms, aircraft
parking positions and operations space  associated with Gates 41, 43, 44, 44A, 46, 76 and 77, as shown on Exhibit J (hereinafter referred to as “Short
Term Gates”) shall be made
available to Airlines on the following basis in order to promote Airport access on fair and reasonable terms:

 

1.             AIRLINE shall lease Short Term Gate space
under its control on the same basis as provided in this Agreement, except as
provided in this Paragraph.

 

2.             MAC may, in its discretion, cancel the lease
of a Short Term Gate leased by AIRLINE if an Airline presently not leasing a
gate directly from MAC or not

 

30

 

currently providing air
service to the Airport is  proposing
to add additional air service and desires to lease a gate directly from MAC. The following procedures shall be followed before a Short
Term Gate lease may be cancelled:

 

a.             If an Airline presently not leasing
a gate directly from MAC or not currently providing air service to the Airport
is proposing to add additional air service and desires to lease a gate directly
from MAC, MAC may in its discretion issue a Notice of Cancellation. The Notice
of Cancellation may become effective after 90 days.

 

b.             In the event of a decision to cancel a Short Term
Gate, MAC will work with AIRLINE to attempt to accommodate AIRLINE’s schedule pursuant
to the procedures of Article IV.E.3.

 

c.             MAC may extend the time periods set forth in this
provision for good cause, e.g. the unavailability of replacement jet bridges or
other ground equipment.

 

3.             In the event MAC cancels the lease of a Short
Term Gate pursuant to this
Paragraph, it shall compensate AIRLINE
for the unamortized cost of improvements made to the leased premises of a Short Term Gate. AIRLINE shall retain and remove AIRLINE property (e.g.
jet bridge or other ground
equipment, computers, inserts) or
may negotiate their sale.

 

4.             The appearance of a Short Term Gate shall be “generic”
i.e. generic carpet, neutral wall finishes and no distinguishing colors on the
podium or backwall except as to improvements existing as of the date of this
Agreement. AIRLINE may hang corporate banners or posters and name
identification signs so long as they can be detached without significantly damaging
the premises or AIRLINE commits to restoring the premises without cost to MAC.

 

5.             If AIRLINE is leasing only one holdroom from
MAC, it may request that MAC
remove the Short Term Gate designation
from a holdroom by demonstrating that it has met the following conditions:

 

a.             AIRLINE has not been in default on any rental,
security deposit, PFC or other financial obligations to MAC for any of the previous
twelve consecutive months; and

 

b.             AIRLINE has maintained an Average Daily Utilization
at least equal to seven departures for each of the previous twelve consecutive
months. For purposes of this provision “Average Daily Utilization” shall mean
the number of AIRLINE’s and an Affiliated Airline’s scheduled aircraft departures
using the gate with aircraft of fifty or more seats in a calendar month, divided
by the number of days in that calendar month; provided, however,

 

31

 

that if AIRLINE’s or the
Affiliated  Airline’s
actual flight activity differs by
more than five percent (5%) from its published schedule in any calendar month, MAC shall use AIRLINE’s or the Affiliated Airline’s actual total departures for purpose of calculating Average Daily Utilization.

 

I.              REGIONAL RAMP

 

MAC shall:

 

1.             Designate parking positions on the Regional
Ramp for Preferential Use by
AIRLINE in accordance with Exhibit
L and shall update this Exhibit to reflect construction changes; provided, however, that during any time in which a parking position is not
required for use by AIRLINE or an
Affiliated Airline, MAC may require
AIRLINE to accommodate another Airline during any time in which a parking position is not required for use by AIRLINE or an Affiliated Airline,
subject to the standards and
procedures in Article IV.E.3. (and
credit AIRLINE for any rents received from such Airline);

 

2.             Allocate all unassigned parking positions on
the Regional Ramp for Common Use
and shall assign their use to
AIRLINE or an Affiliated Airline upon request or to another Airline on a Preferential Use basis; and

 

3.             Designate support areas on the Regional Ramp
for use by ground service
equipment.

 

J.             RELINQUISHMENT OF PREMISES

 

1.             NOTICE OF INTENT TO RELINQUISH PREMISES

 

In the event AIRLINE desires
to relinquish any of its  Premises,
AIRLINE shall provide written notice to MAC thirty (30) days in advance of such relinquishment and shall identify in such notice all areas it
wishes to relinquish. MAC shall
make its best efforts to lease
such areas to another Airline, to the extent the proposed relinquished Premises is suitable for another Airline.

 

2.             NON-WAIVER OF RESPONSIBILITY

 

AIRLINE shall continue to be
solely responsible  pursuant
to this Agreement for the payment of all rents, charges and fees related to the Premises until another Airline commences payment for Premises
as provided below.

 

3.             REDUCTION OF RENTS, FEES, AND CHARGES

 

AIRLINE’s rents, fees and
charges related to that  portion
of the Premises taken by another Airline, pursuant to such Airline’s agreement with MAC,

 

32

 

shall be reduced in the
amount of the rent, fees and  charges paid by such other Airline. This reduction shall begin only when the Airline that
contracted with MAC for its use
of the Premises begins payment for
the Premises and shall end if such Airline becomes delinquent in payment for the Premises.

 

K.            MID-TERM RELINQUISHMENT OF PREMISES

 

As provided below, in the
event the actual airline cost per  Enplaned Passenger exceeds $5.16 per Enplaned Passenger (in 1998 dollars) as calculated below, in Fiscal
Year 2002, AIRLINE shall be
permitted on a one-time basis to relinquish a portion of its Premises pursuant to this Subsection, such relinquishment to be effective January 1,
2004.

 

1.             NOTICE OF INTENT TO RELINQUISH PREMISES

 

On or before June 30, 2003,
MAC shall provide AIRLINE  with
the actual airline cost per Enplaned Passenger calculation for Fiscal Year 2002. Provided that the airline cost per Enplaned Passenger amount
exceeds the amount set forth in
this Subsection, AIRLINE shall be
permitted to relinquish a portion of its Premises effective January 1, 2004. AIRLINE shall provide written notice to MAC by no later thanSeptember 30, 2003 of its intent to
relinquish a portion of its
Premises pursuant to this Subsection and shall identify in such notice the areas it wishes to relinquish.

 

2.             LIMITATIONS ON RELINQUISHMENT OF PREMISES

 

The portion of Premises that
AIRLINE shall be  permitted
to relinquish pursuant to this Subsection shall be limited to one-half of its Premises, up to a maximum of two aircraft parking positions withassociated holdrooms, and an allocable
portion of other AIRLINE
Exclusive Use Space. MAC may require that AIRLINE relinquish other Exclusive Use Space proportional to AIRLINE’s share of holdrooms
that is relinquished.

 

3.             TREATMENT OF RELINQUISHED PREMISES

 

The square footage of
Premises that is relinquished  pursuant to this Subsection and is designated as Rentable Space shall not be regarded as
Rentable Space until such time as
such relinquished space is leased
to another Airline.

 

4.             CALCULATION OF AIRLINE COST PER ENPLANED
PASSENGER

 

MAC shall calculate the
airline cost per Enplaned  Passenger
based on actual revenues from rents, fees, and charges paid by all Airlines during Fiscal Year 2002; provided, however, that the number of
Enplaned

 

33

 

Passengers used to calculate
the airline cost per  Enplaned
Passenger shall be the larger of (a) the actual number of Enplaned Passengers at the Airport for Fiscal Year 2002, or (b) 14,456,000 (the
number of Enplaned Passengers at
the Airport in Fiscal Year 1997).
For the purpose of expressing the cost per Enplaned Passenger in 1998 dollars, MAC will use the Implicit Price Deflator for Gross Domestic
Product, or a similar price
index, published by the U.S. Department
of Commerce, Bureau of Economic Analysis.

 

L.             SURRENDER OF PREMISES

 

1.             Upon termination of this Agreement in its
entirety, whether by its terms or by earlier cancellation, AIRLINE’s rights to
use the Premises, facilities, rights, licenses, services and privileges hereby given
shall cease, and AIRLINE shall forthwith surrender possession to MAC.

 

2.             All structures, fixtures, improvements,
equipment and other property
bought, installed, erected or placed by AIRLINE on the Premises or elsewhere on the Airport, including without limiting the
generality thereof storage tanks,
pipes, pumps, wires, poles, machinery
and air conditioning equipment, shall be deemed to be personal property and remain the property of the AIRLINE, and AIRLINE shall
have the right to remove the same
if AIRLINE is not then in default;
provided that AIRLINE shall remove its property within a period of ninety (90) days after termination, and shall restore the Premises to
its condition as of the
commencement of the Term hereof, ordinary
wear and tear or damage by the elements, fire, explosion and other casualty excepted, but including any environmental restoration.

 

3.             If AIRLINE’s property is not so removed and
the Premises restored prior to
the expiration of the aforesaid
period of ninety (90) days, MAC shall thereafter have the right, by giving AIRLINE written notice thereof, to take title to AIRLINE’s
property located on the Premises,
or alternatively, to cause such
property to be removed and sold or otherwise disposed of as MAC may elect, and AIRLINE hereby constitutes MAC its agent for the purpose of
such removal and sale, and
authorizes MAC in its sole discretion
to determine the method of disposition. AIRLINE shall be responsible for any and all reasonable costs incurred by MAC in the
removal of AIRLINE’s property
from the Premises and the disposition
thereof and for restoration of the Premises.
MAC shall pay over to AIRLINE any amount received from disposition of AIRLINE’s property in excess of the cost of removal, disposition,
and restoration.

 

4.             MAC reserves the right to make a reasonable
rental charge covering the period
following termination of the
Agreement to the date of removal of AIRLINE’s property or until MAC gives AIRLINE notice of taking title thereto provided that no charge shall be
made for the first thirty (30)
days following termination of the
Agreement.

 

34

 

V.            RENTS, FEES, AND CHARGES

 

A.            GENERAL

 

For use of the Premises,
facilities, rights, licenses,  services and privileges granted hereunder, AIRLINE agrees to pay MAC during the Term of this Agreement the
rents, fees and charges as
hereinafter described. In addition, AIRLINE agrees to pay MAC applicable fees set forth in
Article XIII, Supplemental Agreements.

 

B.            RENTS, FEES, AND CHARGES

 

1.             LANDING FEES. AIRLINE shall pay to MAC
monthly landing fees to be determined by multiplying the number of 1,000-pound
units of AIRLINE’s Total Landed Weight during the month by the then-current
landing fee rate. The landing fee rate shall be calculated according to
procedures set forth in Article VI.

 

2.             ENVIRONMENTAL SURCHARGES. AIRLINE shall pay
to MAC monthly environmental surcharges to be determined by multiplying the
number of AIRLINE’s Stage 2 and Stage 3 aircraft operations during the month by
the then-current environmental surcharge rate. The environmental surcharge rate
shall be calculated according to procedures set forth in Article VI. The environmental
surcharge will be terminated effective January 1, 2000.

 

a.             EXCESS STAGE 2 FEES. AIRLINE shall pay to MAC
excess Stage 2 fees to be determined by multiplying the number of Stage 2
Operations conducted by AIRLINE during the year by the then-current excess
Stage 2 fee rate. The excess Stage 2 fee rate shall be calculated according to
procedures set forth in Article VI. The excess Stage 2 fee will be terminated
effective January 1, 2000.

 

b.             STAGE 3 CREDIT. AIRLINE shall receive a Stage
3 credit from MAC against the environmental surcharge and the excess Stage 2
fees, to be determined by multiplying the Stage 3 credit by the proportion that
AIRLINE’s Stage 3 Operations represents of total Stage 3 Operations of
Signatory Airlines at the Airport. The Stage 3 credit shall be calculated
according to procedures set forth in Article VI. The Stage 3 credit will be
terminated effective January 1, 2000.

 

3.             TERMINAL APRON FEES. AIRLINE shall pay to MAC
monthly Terminal Apron fees to be
determined by multiplying the
number of lineal feet of Terminal Apron under lease to AIRLINE during the month by the then-current Terminal Apron rate. The Terminal Apron rate
shall be calculated according to
procedures set forth in Article
VI.

 

35

 

4.             REGIONAL RAMP FEES. AIRLINE shall pay to MAC
monthly regional ramp fees based
upon the regional ramp fee rate
then in effect. The regional rate shall be calculated according to procedures set forth in Article VI.

 

5.             TERMINAL BUILDING RENTS. AIRLINE shall pay to
MAC monthly Terminal Building rentals for its Exclusive (janitored and
unjanitored), Preferential and Common Use Space in the Terminal Building. The
Terminal Building rental rates shall be calculated according to procedures set
forth in Article VI.

 

Terminal Building rentals for
Common Use Space (except the IAF) shall be prorated among Signatory Airlines
using the Common Use Formula.

 

6.             CARROUSEL AND CONVEYOR CHARGES. AIRLINE shall
pay to MAC monthly carrousel and conveyor charges based upon maintenance and
operating costs and direct depreciation and interest costs. The carrousel and conveyor
charges shall be calculated according to the procedures set forth in Article VI
and shall be prorated among Signatory Airlines using the Common Use Formula.

 

7.             IAF GATE FEES. AIRLINE shall pay to MAC monthly
IAF gate fees determined by multiplying the number of arrivals at the IAF by
AIRLINE’s propeller aircraft, narrow-body jet aircraft, and wide-body jet
aircraft by $400, $800, and $1,200, respectively.

 

8.             IAF USE FEES. AIRLINE shall pay to MAC monthly
IAF use fees determined by multiplying the number of AIRLINE’s international
passengers arriving at the IAF during the month by the IAF use fee rate. The
IAF use fee rate shall be calculated according to procedures set forth in
Article VI.

 

9.             OTHER FEES AND CHARGES. AIRLINE shall pay to
MAC reasonable fees for the
various other services provided
by MAC to AIRLINE. These services include, but may not be limited to, the following:

 

a.             Use of the Humphrey Terminal and Humphrey ramp
at rates established from time to time by MAC.

 

b.             Use of Garage Parking Cards by AIRLINE’s employees
at rates set forth in the Guidelines for Administering Validated Airport
Parking.

 

c.             Use of designated employee parking facilities
by AIRLINE’s employees at rates established from time to time by MAC.

 

d.             Nonroutine Terminal Apron cleaning and other special
services requested by AIRLINE at rates that reflect the costs incurred by MAC.

 

36

 

e.             Security and personnel identification badges for
AIRLINE’s personnel at rates established from time to time by MAC.

 

f.              Office services, such as facsimile, photocopying,
or telephone provided by MAC. Charges for these services shall be at the rates
that MAC customarily charges for such services.

 

g.             Charges for the cost of separately metered water
and sewer and other such utilities not otherwise included in the calculation of
rents, fees, and charges.

 

C.            MONTHLY ACTIVITY REPORT

 

1.             CONTENTS AND DUE DATE

 

Without any demand therefor
AIRLINE shall furnish MAC on or before the 10th day of each and every month, the
IAF reports and an accurate written report of AIRLINE’s operations during the
preceding month, setting forth all data necessary to calculate the AIRLINE’s
fees and charges due under this Agreement. Said report shall be in a format
prescribed by MAC and shall include the following: (a) AIRLINE’s actual aircraft
revenue flight arrivals at the Airport by type of aircraft, Maximum
Certificated Gross Landing Weight of each type of aircraft, and Total Landed Weight;
(b) the total number of Enplaned, Deplaned, Non-Revenue and Through Passengers
of AIRLINE at the Airport, breaking Enplaned Passengers into originating and
connecting passengers; (c) the amount of domestic and international cargo, mail,
and express packages (in pounds) enplaned and deplaned by AIRLINE at the
Airport; (d) the total number of Stage 2 and Stage 3 landings and other
landings not otherwise classified as a Stage 2 or a Stage 3 landing; (e) the
total number of scheduled and nonscheduled aircraft operations; and (f) a
summary reflecting all of AIRLINE’s actual flight activity by aircraft type for
gates, the regional ramp, and the IAF.

 

AIRLINE shall also provide to
MAC a separate report  for
each Affiliated Airline unless separately reported to MAC by such Affiliated Airline.

 

2.             FAILURE TO REPORT

 

If AIRLINE fails to furnish
MAC with the monthly activity report by the due date, AIRLINE’s landing fees,
environmental surcharge, IAF gate fees, and IAF use fees, as provided for hereinafter,
shall be determined by assuming that AIRLINE’s activity factor, as appropriate
for each fee, for such month was one hundred percent (100 percent) of its
activity factor, as appropriate for each fee, during the most recent month for
which such data are available for AIRLINE. Any necessary adjustment in such
fees shall be calculated after an accurate report is delivered to MAC by
AIRLINE for the month in question. Resulting surpluses or deficits shall be
applied as

 

37

 

credits or charges to the
appropriate invoices in the  next
succeeding month.

 

3.             INSPECTION AND MAINTENANCE OF RECORDS

 

AIRLINE shall maintain
records, accounts, books and  data with respect to its operations at the Airport sufficient to permit MAC to calculate and
verify the rents, fees and
charges due under this Agreement, which
shall cover a period of not less than three (3) years beyond the end of AIRLINE’s fiscal year in which such record was created. Such records
shall be subject to inspection
and audit by MAC at all reasonable
times.

 

D.            SECURITY DEPOSITS

 

1.             Unless AIRLINE has provided regularly
scheduled passenger, all cargo or combination flights to and from the Airport
for the twelve (12) months immediately prior to AIRLINE’s execution of this Agreement
(or immediately prior to the assignment of this Agreement to AIRLINE) without
an act or omission having occurred that would have been an event of default
under Article XIV of this Agreement if this Agreement had been in effect during
this period, AIRLINE shall provide MAC upon the execution of this Agreement (or
upon the assignment of this Agreement to AIRLINE) with a contract bond,
irrevocable letter of credit or other security acceptable to MAC (“Contract
Security”) in an amount equal to the total of three (3) months’ estimated
rents, fees and charges payable by AIRLINE under Article V of this Agreement
plus three (3) months’ estimated PFC collections under this Article V, to
guarantee the faithful performance by AIRLINE of all of its obligations under
this Agreement and the payment of all rents, fees, and charges due hereunder
and of all PFCs due to MAC. Such Contract Security shall be in such form and
with such company licensed to do business in the State of Minnesota as shall be
acceptable to MAC within its reasonable discretion.

 

2.             AIRLINE shall be obligated to maintain
Contract Security in an amount
equal to MAC’s estimate of three
months’ rents, fees, and charges plus three (3) months’ estimated PFC collections payable hereunder and to maintain this Contract Security in
effect until the expiration of
twelve (12) consecutive months
(including any period prior to AIRLINE’s execution of this Agreement during which AIRLINE provided regularly scheduled flights to and
from the Airport) during which no
event of default under Article
XIV of this Agreement (and for any such prior period, no act or omission that would have been such an event of default hereunder) has occurred.
If such Contract Security should
be canceled, AIRLINE shall provide
a renewal or replacement Contract Security for the period required pursuant to this Section. AIRLINE shall provide at least sixty (60) days
prior written notice of the date
on which any Contract Security
expires or is subject to cancellation.

 

38

 

3.             If an event of default under Article XIV, A.
1, 2, or 5 of this Agreement
shall occur, MAC shall have the right,
by written notice to AIRLINE given at any time within ninety (90) days of such event of default, to impose or reimpose the requirements of this
Section on AIRLINE. In such
event, AIRLINE shall within ten (10)
days from its receipt of such written notice provide MAC with the required Contract Security and shall thereafter maintain such Contract Security
in effect until the expiration of
the required period during which
no event of default under Article XIV of this Agreement occurs. MAC shall have the right to reimpose the requirements of this Section on
AIRLINE each time an event of
default occurs during the Term of
this Agreement. MAC’s rights under this Section shall be in addition to all other rights and remedies provided it under this Agreement.

 

4.             To the extent that AIRLINE holds any property
interest in PFC funds collected for the benefit of MAC, AIRLINE hereby pledges
to MAC and grants MAC a first priority security interest in such funds, and in
any and all accounts into which such funds are deposited.

 

E.             PAYMENT PROVISIONS

 

1.             Terminal rentals for Exclusive and
Preferential Use Premises, fees per
the Common Use Formula, and Terminal
Apron Fees shall be due and payable the first day of each month in advance without invoice from MAC.

 

2.             Within ten (10) days following the last day of
each month, AIRLINE shall transmit to MAC payment for the amount of landing
fees, environmental surcharges, IAF gate fees, and IAF use fees incurred by
AIRLINE during said month, as computed by AIRLINE without invoice from MAC.

 

3.             All other rents, fees, or charges set forth
herein, including supplemental billings for year-end adjustments, if any, shall
be due within thirty (30) days of the date of the invoice therefor.

 

4.             The acceptance by MAC of any payment made by
AIRLINE shall not preclude MAC from verifying the accuracy of AIRLINE’s report
and computations or from recovering any additional payment actually due from
AIRLINE.

 

5.             Any payment not received within thirty (30)
days of the due date shall accrue interest at the rate of 1.5 percent per month
measured from the due date until paid in full.

 

6.             Payments shall be made to the order of the “Metropolitan
Airports Commission.” Airline agrees to cooperate with MAC in the development
of electronic transfer of funds as the method of payment.

 

39

 

7.             Payments shall be sent to the following
address or such other place as
may be designated by MAC from time
to time:

 

Metropolitan Airports
Commission

 

NW-9227

 

Minneapolis, MN 55485

 

F.             NET AGREEMENT

 

This is a net agreement with
reference to rents, fees, and  charges paid to MAC. AIRLINE shall pay all taxes, fees, or assessments of whatever character that may be
lawfully levied, assessed, or
charged by any governmental entity upon the property, real and personal, occupied, used, or owned by AIRLINE, or upon the rights of AIRLINE to
occupy and use the Premises, or
upon AIRLINE’s improvements, fixtures, equipment, or other property thereon, or upon AIRLINE’s
rights or operations hereunder.
AIRLINE shall have the right at its sole cost and expense to contest the amount or validity of any tax or license as may have been or may be levied,
assessed, or charged.

 

G.            NO OTHER FEES AND CHARGES

 

Except as expressly provided
for herein, including but not  limited to Article III.B.3., no further rents, fees, or charges shall be charged against or collected
from AIRLINE, its passengers,
shippers, and receivers of freight and express packages and its suppliers of goods and services, by MAC for the Premises, facilities, rights and licenses
granted to AIRLINE in this
Agreement.

 

H.            PASSENGER FACILITY CHARGES

 

MAC expressly reserves the
right to assess and collect PFCs in  accordance with the PFC Regulations. The following shall apply to the collection of PFCs:

 

1.             AIRLINE shall hold the net principal amount of
all PFCs that are collected by
AIRLINE or its agents on behalf
of MAC pursuant to 49 U.S.C. App. Section 1513 and the rules and regulations thereunder (14 C.F.R. Part 158, herein the “PFC Regulations”) in
trust for MAC. For purposes of
this Section, net principal amount
shall mean the total principal amount of all PFCs that are collected by AIRLINE or its agents on behalf of MAC, reduced by all amounts that
AIRLINE is permitted to retain
pursuant to Section 158.53(a) of the
PFC Regulations.

 

2.             In the absence of additional regulations
governing the treatment of
refunds, any refunds of PFCs due to passengers as a result of changes of itinerary shall be paid proportionately out of the net
principal amount attributable to
such PFCs and the amount that AIRLINE
was permitted to

 

40

 

retain under Section
158.53(a) of the PFC Regulations  attributable to such PFCs. AIRLINE hereby acknowledges that the net principal amount of all PFCs collected on behalf of MAC shall remain
at all times the property of MAC,
except to the extent of amounts
refunded to passengers pursuant to the preceding sentence (which shall remain the property of MAC until refunded and become the property
of the passenger upon and after
refund). Other than the amounts
that AIRLINE is entitled to retain pursuant to Section 158.53 of the PFC Regulations, AIRLINE shall be entitled to no compensation.

 

3.             In the event AIRLINE fails to remit PFC
revenues to MAC within the time
limits established in the PFC Regulations,
such event shall be an event of default subject to Article XIV of this Agreement.

 

I.              NON-WAIVER

 

The acceptance of fees by MAC
for any period or periods after  a default of any of the terms, covenants and conditions herein contained to be performed, kept and observed
by AIRLINE, shall not be deemed a
waiver of any right on the part of MAC to terminate this Agreement for failure by AIRLINE to perform, keep or observe any of the terms, covenants or
conditions of this Agreement.

 

J.             NONSIGNATORY LANDING FEES

 

The landing fee rate charged
to any Airline that is not a  Signatory Airline shall be in accordance with the rates established by ordinance from time to time by
MAC.

 

K.            AFFILIATED AIRLINE

 

If AIRLINE is an Affiliated
Airline, then AIRLINE is not  obligated to pay MAC the fixed (i.e. 20%) portion of the Common Use Bag Claim and Carrousel Charges and
the Security Deposit requirement
in Article V.D. If AIRLINE has designated an Airline as an Affiliated Airline, AIRLINE hereby unconditionally guarantees all rents, fees and
charges including passenger
facility charges of any Affiliated Airline so designated by AIRLINE, and upon receipt of notice of default by such Affiliated Airline (with a
copy to AIRLINE), AIRLINE will
pay such amounts to MAC on demand pursuant to the payment provisions of this Agreement. AIRLINE
must give MAC thirty (30) days
advance written notice in order to designate an Airline as an Affiliated Airline or to revoke such status.

 

41

 

VI.           CALCULATION OF RENTS, FEES, AND CHARGES

 

A.            GENERAL

 

Effective January 1, 1999 and
for each Fiscal Year thereafter,  rents, fees, and charges will be reviewed and recalculated based on the principles and procedures set
forth in this Article. The annual
costs associated with each of the indirect cost centers shall be allocated to each of the Airport Cost Centers based on the allocations as set forth
in Exhibit M, Indirect Cost
Center Allocation, which allocations may be amended from time to time by mutual consent of MAC and a Majority-In-Interest of Signatory Airlines.
Such consent may not be
unreasonably withheld.

 

B.            CALCULATION/COORDINATION PROCEDURES

 

1.             AIRLINE shall provide to MAC: (a) on or
before August 1 of each year a preliminary estimate of Total Landed Weight for
the succeeding calendar year of AIRLINE and each Affiliated Airline, unless
separately reported to MAC by such Affiliated Airline; and (b) on or before
October 1 of each year a final estimate of such weight. If the final estimate
is not so received, MAC may continue to rely on the preliminary estimate for
the MAC budgeting process. MAC will utilize the forecast in developing its
preliminary calculation of Total Landed Weight for use in the calculation of
rents, fees, and charges for the ensuing Fiscal Year.

 

2.             On or before October 15 of each Fiscal Year,
MAC shall submit to AIRLINE a preliminary calculation of rents, fees, and
charges for the ensuing Fiscal Year. The preliminary calculation of rents,
fees, and charges will include, among others, MAC’s estimate of all revenue items,
Operation and Maintenance Expenses, depreciation and imputed interest, Capital Outlays,
required deposits, including amounts necessary to be deposited in the Coverage
Account in order to meet MAC’s rate covenant under the Trust Indenture, and
Rentable Space. The calculation of depreciation and imputed interest will be
based on MAC’s determination of the useful life of each asset and the weighted
average cost of capital, respectively, under generally accepted accounting principles,
except that unless specifically prohibited by generally accepted accounting principles
applicable to a particular project, (a) Terminal Building projects involving
building or structural changes added to the rate calculation after January 1,
1999 and which would otherwise have been depreciated over 20-25 years shall be depreciated
over 30 years, and (b) ramp and runway projects involving replacement concrete
or ramp work added to the rate calculation after January 1, 1999 and which
would otherwise have been depreciated over 20-25 years shall be depreciated
over 30 years.

 

3.             Within fifteen (15) days after receipt of the
preliminary calculation of rents, fees, and charges, if requested by the
Signatory Airlines, a

 

42

 

meeting shall be scheduled
between MAC and the  Signatory
Airlines to review and discuss the proposed rents, fees, and charges.

 

4.             MAC shall then complete a calculation of
rents, fees, and charges at such
time as the budget is approved, taking
into consideration the comments or suggestions of AIRLINE and the other Signatory Airlines.

 

5.             If, for any reason, MAC’s annual budget has
not been adopted by the first day
of any Fiscal Year, the rents,
fees, and charges for the Fiscal Year will initially be established based on the preliminary calculation of rents, fees, and charges until
such time as the annual budget
has been adopted by MAC. At such
time as the annual budget has been adopted by MAC, the rents, fees, and charges will be recalculated, if necessary, to reflect the adopted annual budget and made retroactive to the
first day of the Fiscal Year.

 

6.             If, during the course of the year, MAC
believes significant variances
exist in budgeted or estimated amounts
that were used to calculate rents, fees, and charges for the then current Fiscal Year, MAC may after notice to Airlines adjust the rents,
fees, and charges for future
reports to reflect current estimated
amounts.

 

C.            LANDING FEES

 

MAC shall calculate the
landing fee rate in the following  manner and as illustrated in Exhibit N.

 

1.             The total estimated Airfield Cost shall be
calculated by totaling the
following annual amounts:

 

a.             The
total estimated direct and allocated indirect Operation and Maintenance
Expenses allocable to the Airfield cost center.

 

b.             The estimated direct and allocated indirect depreciation
and imputed interest on the net Capital Cost (after grants and PFCs) allocable
to the Airfield cost center. MAC agrees to defer the start of recovery through
landing fees of depreciation and imputed interest on $49.683 million of project
costs included in the Runway 17/35 Program from their original date of beneficial
occupancy to 2006. Carrying costs for such projects during this deferral period
shall be calculated with the amount added to the original project cost (which, if
debt funded, includes the allocated portion of capitalized interest, debt service
reserve funds, issuance costs, and other such cost elements related to such debt)
for recovery through the project’s depreciation and imputed interest calculations
starting in 2006. Depreciation and imputed interest on these projects shall be
recovered over the depreciation periods set forth in Article VI.B.2.

 

43

 

c.             The estimated imputed interest (net of
grants and PFCs) on the historical cost of MAC’s investment in land.

 

d.             The total estimated direct and allocated
indirect cost (net of grants and PFCs) of Capital Outlays allocable to the
Airfield cost center.

 

e.             The amount of any fine, assessment,
judgment, settlement, or extraordinary charge (net of insurance proceeds) paid
by MAC in connection with the operations on the Airfield, to the extent not
otherwise covered by Article X.

 

f.              The amounts required to be deposited to
funds and accounts pursuant to the terms of the Trust Indenture, including, but
not limited to, its debt service reserve funds allocable to the Airfield cost
center. MAC agrees to exclude from the calculation of landing fees the amounts
which it may deposit from time to time to the maintenance and operation
reserve account and the Coverage Account established and maintained pursuant to
the Trust Indenture except for such amounts which are necessary to be deposited
to the Coverage Account in order for MAC to meet its rate covenant under the
Trust Indenture.

 

g.             Any amounts required to be collected from
landing fees pursuant to 1999 Minn. Laws Chapt. 243-Omnibus Tax Bill (Richfield
Bonds) unless such payment is prohibited by applicable federal law.

 

2.             The total estimated Airfield Cost shall
be adjusted by the total estimated annual amounts of the following items to
determine the Net Airfield Cost:

 

a.             Service fees received from the military,
to the extent such fees relate to the use of the Airfield;

 

b.             General aviation and nonsignatory landing
fees;

 

c.             Off-Airport Aircraft Noise Costs until January 1,
2000; and

 

d.             Depreciation and imputed interest on the
Capital Cost, if any, disapproved by a Majority-In-Interest of Signatory
Airlines.

 

e.             Landing Fee Deferral/Addition.

 

i.              Unless such amounts are required for MAC
to comply with its rate covenant under the Trust Indenture, MAC will defer the
collection of $1.761 million for FY1999 and $3.753 million for FY2000.

 

44

 

ii.             Unless such amounts are required for MAC
to comply with its rate covenant under the Trust Indenture, with respect to the
period from FY2001 through FY2006, MAC will prepare an estimated landing fee
rate as follows: Using the amount of landing fees that would result from the
estimated landing fee rate, along with the other Airline fees and charges
normally used to determine Airline payments per enplanement (hereinafter “APPE”),
MAC will calculate a projected APPE amount for the upcoming fiscal year using
such Airline payments divided by the greater of (a) MAC’s projection of
enplanements for such fiscal year or (b) the actual enplanement amounts
for the prior fiscal year increased for 2 years by 3 percent per year.

 

If the
projected APPE amount for an upcoming fiscal year exceeds the APPE amount for
1998, escalated by 6.85 percent per year (hereinafter “APPE Comparison Amount”),
then MAC shall reduce the amount to be recovered from Airlines through landing
fees in the upcoming fiscal year to equate to the APPE Comparison Amount;
provided, however, that the total amount of any such reduction in any fiscal
year shall not exceed the amount shown in the following table:

 

	
  FISCAL YEAR

  	
   

  	
  AMOUNT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2001

  	
   

  	
  $

  	
  5.031 million

  	
   

  
	
  2002

  	
   

  	
  $

  	
  6.790 million

  	
   

  
	
  2003

  	
   

  	
  $

  	
  0.875 million

  	
   

  
	
  2004

  	
   

  	
  $

  	
  7.606 million

  	
   

  
	
  2005

  	
   

  	
  $

  	
  1.917 million

  	
   

  
	
  2006

  	
   

  	
  $

  	
  5.672 million

  	
   

  

 

iii.            Any amounts deferred pursuant to this
provision shall be recorded in a deferred revenue account. Balances in such
account shall accrue interest at 6.1 percent per annum.

 

iv.            With respect to FY 1999 through FY2006,
the deferred revenue account may be added to landing fees to the extent
that the projected APPE amount for that fiscal year is less than the APPE
Comparison Amount for that fiscal year. With respect to FY2007 through FY2010,
the balance in the deferred revenue account, along with any future interest
accruals, shall be recovered in total from the Airlines by adding a portion of
the deferred amount,

 

45

 

with
interest, to landing fees, based upon the following percentage:

 

•              15 % of the deferred amount in FY2007,
plus accrued interest 

•              40% of the deferred amount in FY2008,
plus accrued interest 

•              40% of the deferred amount in FY2009, plus
accrued interest

•              5% of the deferred amount in FY2010, plus
accrued interest

 

3.             The Net Airfield Cost shall then be
divided by the estimated Total Landed Weight (expressed in thousands of pounds)
of the Signatory Airlines operating at the Airport to determine the landing fee
rate per 1,000 pounds of aircraft weight for a given Fiscal Year.

 

D.            ENVIRONMENTAL SURCHARGE

 

Signatory
Airlines operating stage 2 and/or stage 3 aircraft at the Airport shall pay an
environmental surcharge and excess stage 2 fee, and shall receive a stage 3
credit, as applicable, for operations of stage 2 and stage 3 aircraft at the
Airport until January 1, 2000 at which time the environmental surcharge,
excess stage 2 fee, and stage 3 credit will be terminated and the applicable costs
shall be included in the landing fees as provided elsewhere in this Agreement.
MAC shall calculate the environmental surcharge, excess stage 2 fee, and stage
3 credit in the following manner and as illustrated in Exhibit N.

 

1.             MAC shall calculate the environmental
surcharge prior to the beginning of the Fiscal Year based on the estimated
Off-Airport Aircraft Noise Costs and shall recalculate the environmental
surcharge following the end of the Fiscal Year based on procedures in Section J
of this Article. MAC shall calculate the excess stage 2 fee and stage 3 credit
following the end of the Fiscal Year based on actual costs and operations.

 

2.             MAC shall calculate the environmental
surcharge rate by dividing the estimated annual Off-Airport Aircraft Noise
Costs, net of environmental surcharges paid by nonsignatory airlines, by the
total number of Stage 2 and Stage 3 Operations of Signatory Airlines at the
Airport to produce a rate per aircraft operation.

 

3.             MAC shall calculate the excess stage 2
fee rate by multiplying the annual environmental surcharge rate by thirty (30)
percent to produce an excess stage 2 fee rate per Stage 2 Operation.

 

4.             The stage 3 credit shall be equal to the
total excess stage 2 fees paid by the Signatory Airlines at the Airport in a
given Fiscal Year.

 

46

 

5.             Credits under this Section shall not
exceed fees under this Section for any Signatory Airline in a given Fiscal
Year.

 

E.             TERMINAL APRON FEES

 

MAC
shall calculate the terminal apron rate in the following manner and as
illustrated in Exhibit N.

 

1.             The total estimated Terminal Apron Cost
shall be calculated by totaling the following annual amounts:

 

a.             The total estimated direct and allocated
indirect Operation and Maintenance Expenses allocable to the Terminal Apron
cost center.

 

b.             The estimated direct and allocated
indirect depreciation and imputed interest on the net Capital Cost (after
grants and PFCs) allocable to the Terminal Apron cost center (excluding hydrant
fueling repairs and modifications).

 

c.             The total estimated direct and allocated
indirect cost (net of grants and PFCs) of Capital Outlays allocable to the
Terminal Apron cost center.

 

d.             The amounts required to be deposited to
funds and accounts pursuant to the terms of the Trust Indenture, including, but
not limited to, its debt service reserve funds allocable to the Airfield cost
center. MAC agrees to exclude from the calculation of landing fees the amounts
which it may deposit from time to time to the maintenance and operation
reserve account and the Coverage Account established and maintained pursuant to
the Trust Indenture except for such amounts which are necessary to be deposited
to the Coverage Account in order for MAC to meet its rate covenant under the Trust
Indenture.

 

2.             The Terminal Apron Cost shall then be
divided by the total estimated lineal feet of Terminal Apron, to determine the
terminal apron rate per lineal foot for a given Fiscal Year. For the purposes
of this calculation, lineal feet of Terminal Apron shall be computed as the sum
of the following:

 

a.             Lineal feet of Terminal Apron excluding
the lineal feet of Regional Ramp; and

 

b.             Weighted lineal feet of Regional Ramp,
which MAC shall compute as the lineal feet of Regional Ramp weighted by the ratio
of the average depth of the Regional Ramp to the average depth of other areas
of the Terminal Apron.

 

47

 

F.             REGIONAL RAMP FEES

 

MAC
shall calculate the regional ramp fee for Preferential and Common Use parking
positions in the following manner and as illustrated in Exhibit N.

 

1.             The total estimated Regional Ramp Cost
shall be calculated by multiplying the terminal apron rate per lineal foot by
the weighted lineal feet of Regional Ramp.

 

2.             The Regional Ramp Cost shall be divided
by the total number of aircraft parking positions on the entire Regional Ramp
to compute the fee per Preferential Use parking position.

 

3.             The Common Use Regional Ramp Cost shall
be calculated by multiplying the fee per Preferential Use parking position by
the number of Common Use parking positions.

 

4.             The Common Use Regional Ramp Cost shall,
to the extent feasible, be fully recovered through a use fee established by MAC
taking into consideration Common Use Regional Ramp Cost and expected
utilization of Common Use parking positions on the Regional Ramp.

 

5.             MAC shall assess no additional charges
for areas on the Regional Ramp designated by MAC for Airline ground service
equipment.

 

G.            TERMINAL BUILDING RENTS

 

MAC
shall calculate the terminal building rental rate for unjanitored and janitored
space in the Terminal Building as set forth in Subsections 1 and 2 of this
Section.

 

1.             MAC shall calculate the terminal building
rental rate for unjanitored space in the Terminal Building in the following
manner and as illustrated in Exhibit N.

 

a.             The total estimated Terminal Building
Cost shall be calculated by totaling the following annual amounts:

 

1)             The total estimated direct and allocated
indirect Operation and Maintenance Expenses allocable to the Terminal Building
cost center.

 

2)             The estimated direct and allocated
indirect depreciation and imputed interest on the net Capital Cost (after
grants and PFCs) allocable to the Terminal Building cost center. MAC agrees to
defer the start of recovery through terminal building rents of depreciation and
imputed interest on $121.574 million of project costs included in the Green
Concourse Extension Program from their original date of

 

48

 

beneficial
occupancy to 2006. Carrying costs for such projects during this deferral period
shall be calculated with the amount added to the original project cost (which,
if debt funded, includes the allocated portion of capitalized interest,
issuance costs, and other such cost elements related to such debt) for recovery
through the project’s depreciation and imputed interest calculations starting
in 2006. Depreciation and imputed interest on these projects shall be recovered
over the depreciation periods set forth by in Article VI. B. 2.

 

3)             The total estimated direct and allocated
indirect cost (net of grants and PFCs) of Capital Outlays allocable to the
Terminal Building cost center.

 

4)             The amounts required to be deposited to
funds and accounts pursuant to the terms of the Trust Indenture, including, but
not limited to, its debt service reserve funds allocable to the Airfield cost
center. MAC agrees to exclude from the calculation of landing fees the amounts
which it may deposit from time to time to the maintenance and operation
reserve account and the Coverage Account established and maintained pursuant to
the Trust Indenture except for such amounts which are necessary to be deposited
to the Coverage Account in order for MAC to meet its rate covenant under the
Trust Indenture.

 

b.             The total estimated Terminal Building
Cost shall be reduced by the total estimated annual amounts of the following
items to determine the Net Terminal Building Cost:

 

1)             Reimbursed expense for steam and chilled
water on the Gold Concourse;

 

2)             Carrousel and conveyor Capital Cost and
Operation and Maintenance Expense; and

 

3)             Janitorial Operation and Maintenance
Expenses, as determined by MAC.

 

c.             The Net Terminal Building Cost shall then
be divided by the total estimated Rentable Space in the Terminal Building to
determine the terminal building rental rate per square foot for unjanitored
space for a given Fiscal Year. (See Initial Rentable Square Footage, Exhibit O).

 

2.             MAC shall calculate the terminal building
rental rate for janitored space by totaling the following rates and as
illustrated in Exhibit N:

 

49

 

a.             The terminal building rental rate per
square foot for unjanitored space for a given Fiscal Year, as calculated in
this Section; and

 

b.             An additional rate per square foot, the
janitored rate, calculated by dividing the total estimated direct janitorial
Operation and Maintenance Expenses, as determined by MAC, by the total
janitored space in the Terminal Building (excluding MAC and mechanical space).

 

H.            CARROUSEL AND CONVEYOR CHARGE

 

1.             MAC shall calculate the carrousel and
conveyor charge, as illustrated in Exhibit N, by totaling the following
annual amounts: equipment charges associated with the carrousel and conveyor,
including annual depreciation and imputed interest, maintenance expense, and
service charge.

 

2.             MAC shall prorate the carrousel and
conveyor charge among the Signatory Airlines using the Common Use Formula.

 

I.              IAF USE FEES

 

The
IAF use fee for use of the IAF and any associated gates shall be effective
through December 31, 2015 and shall be based upon:

 

1.             The cost of the maintenance and operation
of the International Arrivals Facility which may include, but is not
limited to:

 

a.             utilities;

 

b.             cleaning:

 

c.             maintenance (including the costs of
maintaining the security equipment that existed as of April 1998), repair
and replacement cost allocation;

 

d.             police, fire, and administrative cost
allocation;

 

e.             costs of providing passenger baggage
carts, if any;

 

f.              costs of providing staff parking for
federal inspections agency staff; and

 

g.             $4.17 per square foot recoupment for lost
rental area in the Gold Concourse.

 

2.             Costs associated with the operation of
dual international arrivals facility locations at the Airport, based on the
appropriate allocation of costs between the two facilities, not otherwise
funded by the federal inspections agencies

 

50

 

including,
but not limited to additional personnel and equipment used by those agencies;
and

 

3.             Excess construction and financing costs,
if any; and

 

4.             Costs of improvements (defined as $0.32
(32 cents) per international arriving passenger) at the Humphrey Terminal that
would have been paid by the Airlines who will now use the International
Arrivals Facility until such time as this fee is no longer collected at the
Humphrey Terminal.

 

Items (1) through
(3) above, for which AIRLINE will be billed monthly, shall be set annually
at an estimated charge through MAC’s budget process and then adjusted at year
end for actual costs pursuant to certified audit by MAC’s external auditors and
such difference shall be charged or credited to AIRLINE and paid by AIRLINE or
MAC within thirty (30) days thereafter.

 

J.             YEAR-END ADJUSTMENTS OF RENTS, FEES, AND
CHARGES

 

1.                                       As soon as practical following the close
of each Fiscal Year, but in no event later than July 1, MAC shall furnish
AIRLINE with an accounting of the costs actually incurred and revenues and
credits actually realized during such Fiscal Year with respect to each of the
components of the calculation of the rents, fees, and charges calculated
pursuant to this Article broken down by rate making Cost Center.

 

2.                                       In the event AIRLINE’s rents, fees, and
charges billed during the Fiscal Year exceed the amount of AIRLINE’s rents,
fees, and charges required (as recalculated based on actual costs and
revenues), such excess shall be refunded or credited to AIRLINE.

 

3.                                       In the event AIRLINE’s rents, fees, and
charges billed during the Fiscal Year are less than the amount of AIRLINE’s
rents, fees, and charges required (as recalculated based on actual costs and
revenues), such deficiency shall be charged to AIRLINE in a supplemental
billing.

 

51

 

VII.          CAPITAL EXPENDITURES

 

A.            GENERAL

 

1.             Subject to the provisions of Sections B
and D of this Article, MAC may incur costs to plan, design, and construct
Capital Projects to preserve, protect, enhance, expand, or otherwise improve
the Airport System, or parts thereof, at such time or times as it deems
appropriate, and may recover through airline rents, fees, and charges the
costs of such Capital Projects.

 

2.             Subject to the provisions of this
Article, MAC may pay the Capital Cost associated with any Capital Project
using funds lawfully available for such purposes as it deems appropriate, and may issue
Airport Bonds in amounts sufficient to finance any Capital Project.

 

3.             MAC will use its best efforts to obtain
and maximize: (a) federal and state grants, including MNDOT and AIP
grants; (b) one hundred eighty six million dollars ($186,000,000) in
federal letter of intent (“LOI”) and side agreements; and (c) fifty
million dollars ($50,000,000) in additional entitlement/discretionary money for
a total of two hundred thirty six million dollars ($236,000,000). In the event
MAC decides to issue debt to interim finance project costs otherwise chargeable
to cost centers affecting airline rates and charges expected to be paid from
the future receipt of LOI discretionary grants it will include interest and
issuance costs associated with this debt in the calculation of airline rates
and charges.

 

4.             This Agreement shall not be interpreted: (a) to
impair the authority of MAC to impose a Passenger Facility Fee or to use the
Passenger Facility revenue as required by the PFC legislation or PFC
Regulations; (b) to restrict MAC from financing, developing or assigning
new capacity at the Airport with Passenger Facility revenue if and to the
extent such restriction would violate the PFC legislation or PFC Regulations; (c) to
preclude MAC from funding, developing, or assigning new capacity at the Airport
with PFC revenue in any manner required by the PFC legislation or the PFC
Regulations; or (d) to prevent MAC from exercising any other right it is
required to retain by the PFC legislation or PFC Regulations if and to the
extent it is so required to be retained by the PFC legislation or PFC
Regulations. Subject to these provisions, however, MAC and AIRLINE agree as
follows:

 

a.             AIRLINE and MAC agree that MAC may impose
a PFC throughout the Term of this Agreement.

 

b.             MAC will use all PFC revenue, including
PFCs attributable to increases in the PFC collection rate, collected during the
Term of this Agreement to pay the Capital Costs of the 2010 Plan, as the

 

52

 

same may be
amended pursuant to the terms of this Agreement, and any associated debt
service, except that to the extent that PFC’s are not legally authorized to be
used for such purpose under applicable law, they may be expended for the
purposes for which they are legally authorized.

 

c.             Actual PFC revenue from the lesser of
ninety percent (90%) of Originating Passengers or forty-five percent (45%) of
Enplaned Passengers for the period from 2011 to 2030 will be applied to fund
Capital Costs associated with the 2010 Plan before being applied in any other
manner. A portion (as defined below) of the PFC’s expected to be collected for
the period from 2011 to 2030 will be used to structure a bond issue to fund
Capital Costs associated with the 2010 Plan. Such Capital Costs will not be
charged to airline cost centers, however debt service not actually paid with
PFC’s may be recovered from the Airlines through a special charge to the
appropriate airline cost center. This “portion” shall be determined by MAC,
after consultation with its financial advisors in conjunction with the issuance
of debt associated with the 2010 Plan, based upon its projections of the amount
of PFC revenue which will be generated from the LESSER of ninety percent (90%)
of the projected Originating Passengers or forty-five percent (45%) of the
projected Enplaned Passengers for the period from 2011 to 2030, based upon MAC’s
forecasts of passenger growth and an assumed $5.00 per passenger PFC collection
rate.

 

5.             MAC agrees to structure debt so that MAC’s
construction fund balance will not exceed one hundred twenty-five million
dollars ($125,000,000) on December 31, 2010. Any excess beyond this amount
will be applied to reduce debt.

 

6.             Annually MAC shall submit to each
Signatory Airline a report on the Capital Projects that MAC plans to commence
during a Fiscal Year. MAC may from time to time amend or supplement such
report for the then-current year by providing supplementary notice to each
Signatory Airline. The report (or supplemental report) shall contain the
following information:

 

a.             A description of each Capital Project,
together with statement of the need for and benefits to be derived from each
Capital Project.

 

b.             A schedule of estimated project
costs and proposed funding sources for each Capital Project.

 

c.             A notice requesting MII approval of the
Capital Projects, if any, that are subject to MII review under Section B
of this Article.

 

53

 

B.            CAPITAL PROJECTS SUBJECT TO MII REVIEW

 

MAC may not
recover through airline rents, fees, or charges the Capital Costs, including
the Off-Airport Aircraft Noise Costs, of any Capital Project in the Airfield
Cost Center whose gross project costs exceed one million dollars ($1,000,000)
without the prior approval of a Majority-in-Interest of Signatory Airlines.

 

1.             Each Capital Project, which is subject to
this Section B, shall be deemed to be “Approved by a Majority-In-Interest
of Signatory Airlines” unless MAC receives, within forty-five (45) days of
mailing the report specified in Section A of this Article, either: (a) written
responses from a Majority-In-Interest of Signatory Airlines and such responses
signify that a Majority-In-Interest of Signatory Airlines disapprove such
Capital Project or (b) a certificate from the chair of the MSP Airport
Affairs Committee, with supporting documentation establishing that a
Majority-In-Interest of Signatory Airlines disapprove such Capital Project.

 

2.             MAC may proceed with any Capital
Project that was disapproved by a Majority-In-Interest of Signatory Airlines;
provided, however, that MAC may not recover through airline rents, fees,
or charges the Capital Costs, including the Off-Airport Aircraft Noise Costs,
of any disapproved Capital Project.

 

3.             Notwithstanding the foregoing and subject
to the limitations described below, the 2010 Plan Airfield Programs shall be
deemed to be Approved by a Majority-in-Interest of Signatory Airlines.

 

C.            CAPITAL PROJECTS NOT SUBJECT TO MII
REVIEW

 

Without
the prior approval of a Majority-In-Interest of Signatory Airlines, MAC may incur
costs to plan, design, and construct at such time or times as it deems
appropriate, and may recover through airline rents, fees, and charges the
costs of the following Capital Projects:

 

1.             Any Capital Project that is not in the
Airfield Cost Center except as set forth in D. below.

 

MAC
plans to undertake a program of improvements to the Airport System known as the
2010 Plan. The 2010 Plan, which is described in Exhibit I, includes
Capital Projects that are not in the Airfield Cost Center as well as the 2010
Plan Airfield Programs. Such Capital Projects are so identified in Exhibit I.

 

2.             Any Capital Project in the Airfield Cost
Center that is necessary to comply with a rule, regulation, or order of any
governmental agency, other than an ordinance of MAC, that has jurisdiction over
the operation of the Airport.

 

54

 

3.             Any Capital Project in the Airfield Cost
Center that is necessary to satisfy a final judgment against MAC rendered by a
court of competent jurisdiction.

 

4.             Any Capital Project in the Airfield Cost
Center that is necessary to repair casualty damage, the cost of which exceeds
the proceeds of applicable insurance; provided that the MAC may recover
the Capital Cost of such repair only to the extent that the cost of
reconstruction or replacement exceeds the insurance proceeds available for such
purposes.

 

D.            2010 PLAN AIRFIELD PROGRAMS

 

1.             Subject to the limitations described
below, MAC has the right to incur costs to plan, design, and construct at such
time or times as it deems appropriate and to recover through airline rents,
fees, and charges the costs of the 2010 Plan Airfield Programs, which are
identified in Exhibit I.

 

2.             MAC may add, delete, or otherwise
modify components of the 2010 Plan Airfield Programs; provided, however, that
no such modifications may materially change the scope of any of the 2010
Plan Airfield Programs without the prior approval of a Majority-In-Interest of
Signatory Airlines. MAC shall provide Signatory Airlines with annual updates on
the progress of the 2010 Airfield Programs including modifications to the 2010
Plan Airfield Program in reasonable detail.

 

3.             MAC will use its best efforts to obtain a
letter of intent for AIP discretionary grants to fund eligible costs of the
Runway 17/35 Program.

 

4.             The Original Cost Estimate (stated in
1998 dollars) of each 2010 Plan Airfield Program is presented in Exhibit I.
MAC may not exceed the Original Cost Estimate of any 2010 Plan Airfield
Program except as set forth in this Section.

 

5.             MAC may revise the Original Cost
Estimate of a 2010 Plan Airfield Program as follows:

 

a.             From time to time to reflect material scope
changes approved by MAC and by a Majority-In-Interest of the Signatory
Airlines; and

 

b.             Annually in accordance with changes in
inflation. Such revision shall be calculated by adjusting the Original Cost
Estimate (as revised to reflect material scope changes) by changes in the
ENGINEERING NEWS RECORD Construction Cost Index for Minneapolis.

 

c.             To reflect increases in the cost of the
Noise Mitigation Program caused by increases in the size of the approved 65 DNL
noise contour, as documented in the FAR Part 150 Program.

 

55

 

6.             MAC shall develop and maintain Current
Cost Estimates for each of the 2010 Plan Airfield Programs.

 

7.             In the event the Current Cost Estimate of
any of the 2010 Plan Airfield Programs exceeds the Original Cost Estimate, as
revised, for such Program, then the MAC at its sole discretion shall do one or
more of the following:

 

a.             After consultation with Airlines, modify
or defer until after 2010 a sufficient number of projects contained in such
Program so that the Current Cost Estimate does not exceed the Original Cost
Estimate, as revised in accordance with Paragraph D.5. of this Section; or

 

b.             Fund the amount of the excess and exclude
depreciation and interest on such amount from the calculation of rents, fees,
and charges; or

 

c.             Obtain approval for additional costs from
a Majority-In-Interest of Signatory Airlines. The Majority-In-Interest approval
is required only on the portion of the Current Cost Estimate that exceeds the
Original Cost Estimate, as revised in accordance with Paragraph D.5. of this
Section.

 

56

 

VIII.        INSTALLATION, MAINTENANCE AND UTILITIES

 

A.            OBLIGATIONS OF MAC

 

1.             MAC shall maintain and operate the
Airport in conformance with all rules and regulations of the FAA and any
other governmental agency having jurisdiction thereof, provided that nothing
herein contained shall be deemed to require MAC to enlarge the Airport, to make
expansions or additions to the landing areas, runways or taxiways, or other
appurtenances of the Airport. In limitation of the foregoing, it is expressly
agreed that if funds for the provision, maintenance and operation of the
control tower, instrument landing system, ground control approach and/or other
air navigation aids or other facilities required or permitted by the United
States and needed by AIRLINE for AIRLINE’s operation at the Airport, which are
now, or may hereafter be furnished by the United States, are discontinued
MAC shall not be required to furnish such facilities.

 

2.             Except as otherwise specifically provided
herein, MAC during the Term of this Agreement shall, in accordance with
acceptable FAA standards, and other applicable statutes or regulations,
operate, maintain, and keep in good repair the Airport, including the Terminal
Complex, vehicular parking spaces, and all appurtenances, facilities and
services therein, including, without limiting the generality hereof, all field
lighting and other appurtenances, facilities and services which MAC is to
furnish hereunder, and Common Use Premises. MAC shall make repairs thereto,
though occasioned by negligence of AIRLINE or its employees, agents, or
invitees. MAC may recover from AIRLINE such portion of the cost of such
repairs as is not recoverable through MAC’s insurance on such damaged or
destroyed structures or facilities.

 

3.             It is further agreed that nothing in this
Agreement shall prevent MAC from making such commitments to the Federal
Government or to the State of Minnesota as may be required in order to
qualify for the expenditure of Federal or State funds on the Airport. Such
commitments shall be without prejudice to AIRLINE’s right to claim damages
therefrom. In furtherance of the foregoing, MAC shall:

 

a.             Keep the Airport reasonably free from
obstructions, including the removal and clearing of snow, grass, stone, or
other foreign matter as necessary and with reasonable promptness from the
runways, taxiways and loading areas, and areas immediately adjacent thereto in
order to insure the safe, convenient, and proper use of the Airport by AIRLINE
and others.

 

b.             Keep public areas of the Terminal Complex
adequately supplied, equipped, furnished and decorated, and operate and
maintain a public address system and adequate directional signs in the Terminal
Complex and throughout the Airport, including but not

 

57

 

limited
to signs indicating the location of public restaurants, restrooms, newsstands,
telephones, telegraph, baggage counters, and all other facilities for passenger
or public use in the Terminal Complex or elsewhere on the Airport.

 

4.             MAC shall:

 

a.             Provide and supply adequate heat,
conditioned air, water and adequate lighting for the Terminal Complex and
loading ramps, and adequate field lighting on or for the Airport (See Article IV.B.).

 

b.             Provide reasonable access to existing
sewer, water, heating/cooling, electrical and other available utilities in the
Terminal Complex, with cost of connection to be borne by Airlines.

 

c.             Provide janitors and other cleaners
necessary to keep the areas outlined in Exhibit P, the unleased Rentable
Space, and the field and runway areas of the Airport at all times safe, clean,
neat, orderly, sanitary, and presentable. AIRLINE may janitor its Preferential
Use holdroom areas if in the judgment of MAC’s Executive Director the
level of cleaning meets MAC’s consistently applied standards.

 

d.             Provide space in the Terminal Building
and arrange for the professional operation of restaurants for the purpose of
selling food, beverages, and merchandise to the public.

 

5.             MAC shall perform maintenance in the
Terminal Complex and surrounding areas in compliance with Exhibit P and as
further defined in this Article. Any changes to that responsibility must be
incorporated as an amendment to this Agreement.

 

6.             MAC by its authorized officers,
employees, agents, contractors, subcontractors, or other representatives, shall
have the right (at such times as may be reasonable under the circumstances
and with as little interruption of AIRLINE’s operation as is reasonably
practicable) to enter AIRLINE’s Exclusive, Preferential, or Common Use Premises
for the following purposes:

 

a.             To inspect such space to determine
whether AIRLINE has complied and is currently in compliance with the terms and
conditions of this Agreement.

 

b.             Upon reasonable notice to perform such
maintenance, cleaning, or repair as MAC’s Executive Director deems necessary,
if AIRLINE fails to perform its obligations under this Article VIII,
and to recover the reasonable cost of such maintenance, cleaning, or repair
from AIRLINE.

 

58

 

7.             With regard to the IAF, MAC shall:

 

a.             Operate, maintain, and keep the IAF space
in good repair and shall keep it adequately supplied, equipped, furnished and
decorated, and operate and maintain adequate directional signs.

 

b.             Provide janitors and other cleaners
reasonably necessary to keep the IAF space, including Federal office space,
safe, clean, neat, orderly, sanitary, and presentable.

 

B.            OBLIGATIONS
OF AIRLINE

 

1.             AIRLINE shall, in accordance with Exhibit P,
attached hereto, be responsible for and shall perform or cause to be
performed janitorial, maintenance, and repair of the Exclusive Premises in a
neat and orderly condition and shall repair or replace as needed all
improvements, installations, fixtures and equipment to be initially installed
by it hereunder. Where damage is caused by negligence of MAC, its officers,
agents, or employees, AIRLINE may recover from MAC the cost of repairs to
the extent but only to the extent that the cost of such repairs is not
recoverable through insurance of AIRLINE on such improvements, installations,
fixtures and equipment. AIRLINE shall not commit nor permit any waste of or to
the Premises or to apron areas adjacent to AIRLINE’s holdroom. Explicitly in
furtherance of the foregoing the AIRLINE shall:

 

a.             Whether alone or in conjunction with
other Airlines at the Airport provide sufficient porter service and common bag
claim service in the area designated for the convenience of AIRLINE’s
passengers, and

 

b.             Not permit the accumulation in the
Premises or on the apron area adjacent to its holdroom of rubbish, debris,
waste material, or anything detrimental to health or unsightly or likely to create
a fire hazard, but shall make prompt disposition thereof.

 

2.             Subject to MAC’s Rules and
Regulations and Ordinances, AIRLINE may, from time to time, install additional
facilities and improvements and modify or expand existing facilities or
improvements in its Exclusive and Preferential Use Premises. Before entering
into any contract for such work, or commencing work with its own personnel,
AIRLINE shall first submit to MAC for its prior written approval a request (in
a form prescribed by MAC) accompanied by a set of complete construction
plans and specifications for the proposed work. The work shall not interfere
with the operation of the Airport and flights to and from the same on a 24
hours per day, 7 days per week basis. In completing the work approved the
AIRLINE shall:

 

59

 

a.             If requested by MAC (but only to the
extent required by law), require the contractor and any subcontractor to
furnish a performance bond and payment bond, approved as to form and
substance by MAC.

 

b.             Deliver to MAC “as built” drawings of the
work actually performed by it and shall keep such drawings current showing any
changes or modification made in or to its Exclusive and Preferential Use
Premises.

 

3.             With regard to the IAF, AIRLINE is
responsible for handling and disposing of all international waste on AIRLINE’s
aircraft in accordance with the requirements of the United States Department of
Agriculture.

 

60

 

IX.           DAMAGE OR DESTRUCTION OF PREMISES

 

A.            DAMAGE OR DESTRUCTION

 

1.             If any building of MAC in which AIRLINE
occupies Premises hereunder shall be partially damaged by fire, explosion, the
elements, the public enemy, or other casualty, but shall not be rendered
thereby untenantable, the same shall be repaired with due diligence by MAC. If
the damage shall be so extensive as to render such building untenantable in
whole or in part but capable of being repaired in ninety (90) days, the
same shall be repaired with due diligence by MAC and the rent payable hereunder
with respect to the portion of AIRLINE’s Premises so rendered untenantable
shall be proportionately paid up to the time of such damage and shall thence
forth cease and be abated until such time as such untenantable portion of such
building shall be fully restored to tenantable condition.

 

2.             In case any such building is completely
destroyed by fire, explosion, the elements, the public enemy, or other
casualty, or be so damaged that the same cannot reasonably be repaired with due
diligence by MAC within ninety (90) days of such casualty, MAC shall, within
sixty (60) days of such casualty give AIRLINE written notice that it intends or
does not intend to repair or reconstruct such building, as follows:

 

a.             In the event MAC elects to repair and
reconstruct the building, then the same shall be repaired with due diligence by
MAC and the rent payable hereunder with respect to the portion of AIRLINE’s
Premises rendered untenantable as a result of such casualty shall be
proportionately paid up to the time of such casualty and shall thenceforth
cease and be abated until such time as such untenantable portion of such
building shall be restored to tenantable condition.

 

b.             In the event MAC determines not to repair
or reconstruct such building (whether by delivery of notice to said effect or
by deemed notice as hereinafter described), then this Agreement shall be deemed
terminated as to the portion of the AIRLINE’s Premises rendered untenantable as
a result of such casualty with respect to such portion, and rent payable
hereunder with respect to such portion shall be proportionately paid through
the date of such casualty and shall thenceforth cease.

 

If no
written notice of intention to repair and restore is timely received by AIRLINE
within the above-referenced sixty (60) day period, then MAC shall be deemed to
have elected not to repair or reconstruct the building. Except as expressly set
forth in this Article IX, MAC shall have no obligation to repair or
rebuild any of the facilities at the Airport in the event of damage by the
elements, fire, explosions or other casualty or causes beyond the control of
MAC.

 

61

 

c.             Proceeds of any insurance maintained by
MAC payable with respect to such casualty shall be applied to such repair or
reconstruction or shall be credited to the appropriate Airport Cost Centers.

 

B.            FORCE MAJEURE

 

Except
as expressly provided in this Agreement, neither MAC nor AIRLINE shall be
deemed to be in default hereunder if either party is prevented from performing
any of the obligations, other than payment of rents, fees and charges
hereunder, by reason of strikes, boycotts, labor disputes, embargoes, shortages
of energy or materials, acts of the public enemy, prolonged unseasonable
weather conditions and the results of acts of nature, riots, rebellion,
sabotage, or any other similar circumstances for which it is not responsible or
which are not within its control.

 

62

 

X.            INDEMNITY AND LIABILITY INSURANCE

 

A.           INDEMNIFICATION

 

1.             AIRLINE agrees to indemnify, defend, save
and hold harmless MAC and its Commissioners, officers, and employees
(collectively, “Indemnitees”) from and against any and all liabilities, losses,
damages, suits, actions, claims, judgments, settlements, fines or demands of
any person other than an Indemnitee arising by reason of injury or death of any
person, or damage to any property, including all reasonable costs for
investigation and defense thereof (including but not limited to attorneys’
fees, court costs, and expert fees), of any nature whatsoever arising out of or
incident to (a) the use or occupancy of, or operations of AIRLINE at or
about the Airport, or (b) the acts or omissions of AIRLINE’s officers, agents,
employees, contractors, subcontractors, licensees, or invitees, regardless of
where the injury, death or damage may occur, unless such injury, death or
damage is caused by (i) the negligent act or omission of an Indemnitee
whether separate or concurrent with negligence of others, including AIRLINE or (ii) the
breach by an Indemnitee of this Agreement. MAC shall give AIRLINE reasonable
notice of any such claims or actions. In indemnifying or defending MAC, AIRLINE
shall use legal counsel reasonably acceptable to MAC and shall control the
defense of such claim or action.

 

2.             AIRLINE further agrees that if a
prohibited incursion into the Air Operations Area occurs, or the safety or
security of the Air Operations Area, the Airfield, or other sterile area safety
or security is breached by or due to the negligence or willful act or omission
of any of AIRLINE’s employees, agents, or contractors and such incursion or
breach results in a civil penalty action being brought against the MAC by the
U.S. Government, AIRLINE agrees to reimburse MAC for all expenses, including
attorney fees, incurred by MAC in defending against the civil penalty action
and for any civil penalty or settlement amount paid by MAC as a result of such
incursion or breach of airfield or sterile area security. MAC shall notify
AIRLINE of any allegation, investigation, or proposed or actual civil penalty
sought by the U.S. Government for such incursion or breach. Civil penalties and
settlement and associated expenses reimbursable under this Paragraph include
but are not limited to those paid or incurred as a result of violation of FAR Part 107,
“Airport Security,” FAR Part 108, “Airplane Operator Security,” or FAR Part 139,
“Certification and Operations: Land Airports Serving Certain Air Carriers.”

 

3.             The provisions of this Article shall
survive the expiration of this Agreement with respect to matters arising before
such expiration or before early termination or before relinquishment of
Premises.

 

63

 

B.            LIABILITY INSURANCE

 

1.             AIRLINE shall provide, without cost or
expense to MAC, and maintain in force throughout the full Term hereof the
following insurance coverages as appropriate, insuring AIRLINE and MAC against
the liabilities set forth in Subsection A next above:

 

a.             Aircraft liability insurance and
comprehensive general public liability insurance for claims of property damage,
bodily injury, or death allegedly resulting from AIRLINE’s activities into, on,
and leaving any part of the Airport, in an amount not less than three
hundred million dollars ($300,000,000) per occurrence for Airlines operating
aircraft over one hundred (100) seats, and not less than two hundred million
dollars ($200,000,000) for Airlines operating aircraft with ninety-nine (99) or
fewer seats, and not less than one hundred million dollars ($100,000,000) for
Airlines operating aircraft with fifty-nine (59) or fewer seats. For purposes
of this Section, the number of seats is determined based upon the largest
aircraft in AIRLINE’s fleet.

 

b.             Liquor liability insurance for any
facility of AIRLINE serving alcoholic beverages on the Airport in an amount not
less than ten million dollars ($10,000,000).

 

c.             Hangarkeepers liability insurance in an
amount adequate to cover any non-owned property in the care, custody and
control of AIRLINE on the Airport, but in any event in an amount not less than
five million dollars ($5,000,000).

 

d.             Automobile
liability insurance in an amount adequate to cover vehicles operating on the
Airport in an amount not less than five million dollars ($5,000,000) combined
single limit.

 

2.             Notwithstanding anything to the contrary
in this Article, MAC may allow the insurance coverage required herein to
be provided through a self-insurance plan established by AIRLINE. The
self-insurance plan may consist of a combination of primary, excess
umbrella insurance and self-insurance protection and must be no less than the
limits stated in the Article. The self-insurance plan must be approved in
writing by MAC prior to becoming effective at the Airport. If AIRLINE requests
MAC’s approval of a self-insurance plan, it must submit a copy of its
self-insurance plan, current financial statements annually showing the limits
of its established self-insurance retention and proof of the primary and excess
umbrella insurance. If the self-insurance plan is approved by the MAC and
becomes effective, AIRLINE shall not increase the self-insurance retention
levels stated in the self-insurance plan approved by MAC.

 

64

 

3.             MAC, in operating the Airport, will carry
and maintain comprehensive general liability insurance in such amounts as would
normally be maintained by public bodies engaged in carrying on similar
activities. MAC presently carries three hundred million dollars ($300,000,000)
of comprehensive general liability insurance.

 

4.             MAC reserves the right to periodically
review any and all policies of insurance and to reasonably adjust the limits of
coverage required hereunder from time to time throughout the period of this
Agreement. In such event, MAC shall provide AIRLINE with written notice of such
adjusted limits and AIRLINE shall comply within sixty (60) days of receipt
thereof to the extent such coverage is available on commercially reasonable
terms.

 

5.             All policies of insurance required herein
shall be in a form and with a company or companies reasonably satisfactory
to MAC and shall name MAC as an additional insured to the extent AIRLINE is
required to indemnify MAC pursuant to Subsection A above. Each such policy
shall provide that such policy may not be materially changed (e.g.,
coverage limits reduced below the minimum specified in this Agreement) or
otherwise materially altered, or cancelled by the insurer during its term without
first giving at least thirty (30) days written notice to MAC. Policies or
certificates of valid policies of insurance with required coverages shall be
delivered to MAC.

 

6.             Before the expiration of any then current
policy of insurance, AIRLINE shall deliver to MAC evidence that such insurance
coverage has been renewed.

 

7.             If at any time AIRLINE shall fail to
obtain or to maintain in force the insurance required herein, MAC may notify
AIRLINE of its intention to purchase such insurance for AIRLINE’s account. If
AIRLINE has not delivered evidence of insurance to MAC before the date on which
the current insurance expires, MAC may provide such insurance by taking
out policies in companies satisfactory to it. Such insurance shall be in
amounts no greater than those stipulated herein or as may be in effect
from time to time. The amount of the premiums paid for such insurance by MAC
shall be paid by AIRLINE upon receipt of MAC’s billing therefor, with interest
at the prime interest rate announced by a major money center bank.

 

8.             MAC shall cause the Terminal Complex
including the loading piers, but exclusive of improvements, facilities and
fixtures constructed or installed by AIRLINE and concessionaires as their
separate leasehold improvements, to be insured throughout the Term of the
Agreement for not less than 90 percent of its and their full insurable value
against perils of fire, extended coverage, vandalism, and malicious mischief.
MAC shall also carry boiler and pressure vessel explosion, sprinkler leakage and
glass breakage insurance. AIRLINE shall be relieved from liability under this Article X
and Commission waives all right of recovery from AIRLINE hereunder for damage
or destruction of its property insured hereunder to the extent but not beyond
the extent that such cost of repair is recoverable through such

 

65

 

insurance
provided, however, that AIRLINE shall reimburse the Commission for any increase
in premium resulting from inclusion therein of a waiver of subrogation
endorsement.

 

9.             AIRLINE shall cause all improvements,
installations, fixtures and equipment installed by it hereunder to be insured
throughout the Term of the Agreement for not less than 90 percent of their full
insurable value against perils of fire, extended coverage, vandalism and
malicious mischief, and with pressure vessel coverage.

 

C.              OTHER INSURANCE

 

MAC may carry
additional insurance in such amounts and of such types as would normally be
maintained by public bodies engaged in carrying on similar activities.

 

D.              ENVIRONMENTAL LIABILITY

 

1.             INDEMNIFICATION

 

AIRLINE
hereby indemnifies and agrees to defend, protect, and hold harmless, MAC and
its Commissioners, officers, employees and agents, and their respective
successors, as well as successors in title to any interest in the Premises
(hereafter “Environmental Indemnitees”), from and against any and all losses,
liabilities, fines, damages, injuries, penalties, response costs, or claims of
any and every kind whatsoever paid, incurred or asserted against, or threatened
to be asserted against, any Environmental Indemnitee, (“Environmental Claims”),
including, without limitation: (a) all consequential damages; (b) the
reasonable costs of any investigation, study, removal, response or remedial
action, as well as the preparation and implementation of any monitoring,
closure or other required plan or response action; and (c) all reasonable
costs and expenses incurred by any Environmental Indemnitee in connection
therewith, including but not limited to, reasonable fees for attorney and
consultant services; which Environmental Claims arise out of or relate to (i) the
presence on, in or under, or the escape, seepage, leakage, spillage, discharge,
deposit, disposal, emission or release of Environmentally Regulated Substances
on, in or from the Premises or AIRLINE’s use of the Airport pursuant to this
Agreement, not in full accordance with Environmental Law arising out of AIRLINE’s
past or present operations during the Term of this Agreement or (ii) any
inaccuracy, incompleteness, breach or misrepresentation under Subsections D.2.
of this Article and Article XVI.B.4. of this Agreement. If any
indemnified claim or action shall be brought against any Environmental
Indemnitee hereunder, then after such Environmental Indemnitee notifies AIRLINE
thereof, AIRLINE shall be entitled to participate therein as a party, and shall
assume the defense thereof at the expense of the AIRLINE with counsel
reasonably satisfactory to such Indemnitee and AIRLINE shall be entitled to
settle and compromise any

 

66

 

such
claim or action; provided, however, that such Environmental Indemnitee may elect
to be represented by separate counsel, at such Environmental Indemnitee’s sole
expense, and if such Environmental Indemnitee so elects, such settlement or
compromise shall be effected only with the consent of such Environmental
Indemnitee, which shall not be unreasonably withheld and shall be granted if
such settlement or compromise provides for a complete release of such
Environmental Indemnitees. This indemnification, and AIRLINE’s obligations
hereunder, shall survive the cancellation, termination or expiration of the
Term of this Agreement with respect to matters arising prior thereto.

 

2.             CLAIMS RELATING TO ENVIRONMENTALLY
REGULATED SUBSTANCES

 

AIRLINE
represents and warrants that subsequent to November 1, 1989, to the best
of AIRLINE’s actual knowledge, except as previously disclosed to the MAC or any
applicable regulatory body as required, (a) no enforcement, investigation,
cleanup, removal, remedial or response action or other governmental or
regulatory actions have been asserted against AIRLINE with respect to the
Premises, pursuant to any Environmental Laws or relating to Environmentally
Regulated Substances; (b) no violation or noncompliance with Environmental
Laws has occurred with respect to AIRLINE’s past or present operations
conducted on the Premises; (c) no claims have been made or been threatened
by any third party against the AIRLINE with respect to the Premises relating to
Environmental Laws or Environmentally Regulated Substances, including by any
governmental entity, agency or representative (collectively “Governmental
Entity”).

 

3.             TESTING AND REPORTS

 

AIRLINE
shall provide to MAC within ten (10) days of request, a copy of any notice
regarding violation of any Environmental Law arising out of AIRLINE’s past or
present operations on the Premises, a copy of any inquiry regarding
environmental matters by any Governmental Entity, a copy of any reports
required by the Environmental Laws regarding violation of any Environmental Law
arising out of AIRLINE’s past or present operation of the Premises, or a copy
of any notice of the emission or release of Environmentally Regulated Substances
in violation of any Environmental Law arising out of AIRLINE’s past or present
operations on the Premises. If MAC has a reasonable basis to believe that
AIRLINE is not meeting the obligations of Article XVI.B.4. of this
Agreement, MAC may by notice require AIRLINE to conduct a reasonable
review of its records for such documents as MAC reasonably believes have not
been provided and submit any such documents as required.

 

67

 

4.             NOTIFICATION

 

AIRLINE
shall notify MAC in writing within fifteen (15) business days of any matter
that AIRLINE obtains knowledge of that may give rise to an indemnified claim
under Subsection D.1. of this Article or that constitutes any emission or release
or any threatened emission or release of any Environmentally Regulated
Substance in, on, under or about the Premises arising out of AIRLINE’s past or
present operations which is or may be in violation of the Environmental Laws.

 

5.             RIGHT TO INVESTIGATE

 

Subject
to Subsections D.3. and D.6. of this Article, upon reasonable notice to
AIRLINE, MAC shall have the right, but not the obligation or duty, at any time
from and after the date of this Agreement, to investigate, study and test the
Premises (at MAC’s own expense, unless otherwise provided herein) during normal
business hours, except under emergency circumstances, to determine whether
Environmentally Regulated Substances are located in, on or under the Premises,
or were emitted or released therefrom, which are not in compliance with
Environmental Laws, provided that such investigation, study and testing shall
not unreasonably interfere with AIRLINE’s operations on and use of the
Premises. AIRLINE shall be entitled to have a representative present during
such investigation.

 

6.             RIGHT TO TAKE ACTION

 

MAC
shall have the right, but not the duty or obligation, to take whatever
reasonable action it deems appropriate to protect the Premises from any
material impairment to its value resulting from any escape, seepage, leakage,
spillage, discharge, deposit, disposal, emission or release of Environmentally
Regulated Substances from the Premises which is not in full accordance with any
Environmental Law and arises out of AIRLINE’s past or present operations during
the Term of this Agreement. The MAC shall notify the AIRLINE of its intention
to take such action in writing thirty (30) days before proceeding under this
Subsection D.6. Within that thirty (30) day period, AIRLINE shall have the
opportunity to take whatever reasonable action is deemed appropriate by MAC or
provide MAC a binding commitment to do so within a reasonable time. If AIRLINE
does not take such action or provide a binding commitment within the thirty
(30) day period, MAC may proceed under the terms of this Subsection D.6. All
costs associated with any action by the MAC in connection with this provision,
including but not limited to reasonable attorneys’ fees, shall be subject to
Subsection D.1. of this Article.

 

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XI.           ASSIGNMENT, SUBLETTING, AND GROUND HANDLING

 

A.            ADVANCE APPROVAL

 

Except
as provided in this Article, and except with respect to arrangements in effect
on the date of execution of this Agreement for which the consent of MAC has
previously been obtained, AIRLINE shall have no right to assign or sublease
this Agreement, or enter into any Ground Handling agreement, without the prior
written consent of MAC, which rights of consent are granted to MAC by MAC
Ordinance No. 58 Section 11(a), and which rights are absolute and expressly
reserved to the MAC hereby.

 

1.                                       AIRLINE, when requesting an approval of an
assignment, sublease, or Ground Handling agreement under this Article, shall
include with its request a copy of the proposed agreement, if prepared, or a
detailed summary of the material terms and conditions to be contained in such
agreement. Any proposed agreement or detailed summary thereof shall provide the
following information:

 

a.                                       The Premises to be assigned, sublet or used
under a Ground Handling agreement;

 

b.                                      The terms;

 

c.                                       If a sublease, the rentals and fees to be
charged; and

 

d.                                      All material terms and conditions of the
assignment, sublease, or Ground Handling agreement that MAC may require.

 

If
the agreement is subsequently executed, AIRLINE shall submit a fully executed
copy of such agreement to MAC promptly upon the execution thereof.

 

2.                                       MAC shall have the right to examine the terms
of any agreement or arrangement submitted to it for approval pursuant to this
Article and determine whether such agreement or arrangement is most
appropriately characterized as an assignment, sublease, or Ground Handling
agreement, regardless of AIRLINE’s characterization of such agreement or
arrangement.

 

3.                                       If AIRLINE fails to obtain written approval
from MAC prior to the effective date of any such assignment, sublease, or
Ground Handling agreement, MAC, in addition to the rights and remedies set
forth in Article XIV, shall have the right to refuse to recognize such
agreement, and the assignee, sublessee or “handled” Airline shall acquire no
interest in this Agreement or any rights to use the Premises.

 

69

 

B.            ASSIGNMENT

 

1.                                       AIRLINE shall not assign this Agreement, in
whole or part, without the advance written approval of MAC.

 

2.                                       It shall not be unreasonable for MAC to
disapprove or condition an assignment of the Agreement under any or all of the
following circumstances, among others:

 

a.                                       MAC determines that the proposed assignee is
not substantially as creditworthy as the AIRLINE, unless AIRLINE agrees to
guarantee the obligations of the proposed assignee.

 

b.                                      The proposed assignment is either (1) for less
than the entire Premises or (2) for less than the remainder of the Term, or
both (1) and (2).

 

c.                                       The proposed assignment does not require the
assignee to accept and comply with all provisions of the Agreement, including
but not limited to accepting Signatory Airline status.

 

3.                                       Notwithstanding the foregoing, this Section
shall not be interpreted to preclude the assignment of this Agreement in whole
and AIRLINE’s rights and obligations hereunder to a parent, subsidiary, or
merged company; provided that, such parent, subsidiary, or merged company
conducts an Air Transportation Business at the Airport and that such parent,
subsidiary, or merged company assumes all rights and obligations hereunder.
Written notice of such assumption shall be provided by the parent, subsidiary,
or merged company prior to the effective date of such assignment.

 

C.            SUBLEASE AGREEMENT

 

1.                                       AIRLINE shall not sublet its Premises, except
to an Affiliated Airline, in whole or part, without the advance written
approval of MAC.

 

2.                                       It shall not be unreasonable for MAC to
disapprove or condition a sublease of AIRLINE’s Premises if the proposed
sublessee is not an Air Transportation Company and MAC reasonably concludes
that the space can be used by another Air Transportation Company.

 

3.                                       AIRLINE may, subject to a sublease approved by
MAC, charge a sublessee of its Premises:

 

a.                                       A reasonable charge for any services provided
by AIRLINE;

 

70

 

b.                                      A reasonable charge for any AIRLINE-owned
property provided by AIRLINE or actual costs other than rentals incurred by
AIRLINE; and

 

c.                                       Reasonable rentals not to exceed one hundred
fifteen percent (115%) of AIRLINE’s rentals for such portion of the Premises.

 

4.                                       AIRLINE shall remain fully and primarily
liable during the Term of this Agreement for the payment of all rents, fees,
and charges due and payable to MAC for the Premises that are subject to a
sublease agreement, and the AIRLINE shall remain fully responsible for the
performance of all the other obligations hereunder, unless otherwise agreed to
by MAC.

 

D.            GROUND HANDLING AGREEMENT

 

1.                                       AIRLINE shall be entitled to provide Ground
Handling services to other Airlines in the Terminal Complex and Terminal Ramp,
subject to MAC’s reasonable rules and regulations except as provided in Article
III.C.

 

2.                                       AIRLINE shall not contract with other
companies, excluding Signatory Airlines for Ground Handling services in the
Terminal Complex and Terminal Ramp for AIRLINE’s aircraft, without advance
written approval of MAC.

 

3.                                       AIRLINE shall remain fully and primarily
liable during the Term of this Agreement for the payment of all rents, fees,
and charges due and payable to MAC for the Premises that are subject to a
Ground Handling agreement, and the AIRLINE shall remain fully responsible for
the performance of all the other obligations hereunder, unless otherwise agreed
to by MAC.

 

4.                                       MAC reserves the right to charge third parties
other than Airlines a reasonable Ground Handling fee not to exceed 5% of gross
receipts and a reasonable annual administrative fee, for their right to provide
Ground Handling services to AIRLINE.

 

5.                                       Ground Handling rights outside the Terminal
Complex will be addressed in separate agreements between MAC and the affected
airlines.

 

E.             BANKRUPTCY

 

Any
receiver, trustee, custodian, or other similar official appointed pursuant to
any proceeding relating to bankruptcy, reorganization, or other relief as set
forth in Article XIV.A.8., herein shall agree to:

 

1.                                       Perform promptly every obligation of AIRLINE
under this Agreement until this Agreement is either assumed or rejected under
the Federal Bankruptcy Code;

 

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2.                                       Pay on a current basis all rents, fees and
charges set forth in this Agreement;

 

3.                                       Reject or assume this Agreement within sixty
(60) days of filing a petition under the Federal Bankruptcy Code;

 

4.                                       Cure or provide adequate assurance of a prompt
cure of any default of the AIRLINE under this Agreement;

 

5.                                       Provide to MAC such adequate assurance of
future performance under this Agreement as may be requested by MAC, including
the procurement of a bond from a financially reputable surety covering any
costs or damages incurred by MAC in the event that MAC, within five (5) years
after assumption or assignment of this Agreement, exercises its rights to relet
the Premises.

 

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XII.         ARBITRATION

 

With
respect to any dispute arising under or in performance of the provisions hereof
which cannot be adjusted by and between the parties hereto, MAC on the one hand
or the AIRLINE (or, where the matter in dispute applies to all Airlines
operating at the Airport under leases having the same terms as this Agreement,
Airlines representing an MII) on the other hand may elect to submit such matter
or dispute to arbitration, such election to be by written notice to the other
party. Upon service of such notice, the matter or dispute shall be submitted to
a board of three persons chosen in the following manner:

 

A.                                   Each party within ten (10) days after service
of the notice shall name an arbitrator, and the two thus chosen shall select a
third arbitrator. If the two arbitrators chosen fail to name the third
arbitrator within ten (10) days after the selection of the last of such
arbitrators, such third arbitrator shall be chosen within fifteen (15) days
thereafter by the Chairman of MAC and a duly authorized officer or
representative of the AIRLINE or MII Airlines as the case may be.

 

B.                                     It is understood and agreed that the decision
of a majority of the arbitrators on any matter or dispute submitted thereto
shall be final, conclusive and binding upon the parties hereto.

 

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XIII.        SUPPLEMENTAL AGREEMENTS

 

A.            GOLD CONCOURSE

 

1.                                       GENERAL

 

The
terms, covenants, conditions and provisions of this Agreement shall apply to
the lease of the Gold Concourse to Northwest Airlines, provided that in the
event the terms of this Article conflict with any other provision of this
Agreement, this Article shall control.

 

No
amendment, waiver or other modification of this Agreement shall apply to this
Article unless specifically so stated therein.

 

2.                                       TERM

 

Occupancy
of the Gold Concourse by Northwest shall continue pursuant to the provisions
contained in this Article through December 31, 2015.

 

3.                                       USE OF THE GOLD CONCOURSE

 

a.                                       Subject to the understanding and agreement of
Northwest that the Gold Concourse is for the use of the traveling public
incident to operation of aircraft and incidental Airport operations to, at and
from the Gold Concourse, Northwest hereby leases that area of the Terminal
Complex identified as the Gold Concourse and shall have the right to operate in
such area and/or sublease to others space and/or concessions for the sale of
food and beverages, newsstand and other vending operations normally carried on
and conducted in air passenger terminals, provided that consent of MAC shall
first be procured for any such subleasing agreements to ensure that such
concessions shall not violate the rights of concessionaires within the Terminal
Building and area under agreement with MAC. Northwest shall file with MAC
copies of agreements entered into with any such sublessee/concessionaires
covering such operations.

 

1)                                      All revenues from such subleasing and/or
concessions may be retained by Northwest, and the foregoing rights of Northwest
within the Gold Concourse shall be in addition to Northwest’s operating rights
pursuant to this Agreement, subject, however, to the following provision:

 

2)                                      Northwest, upon application of the rental
auto, parking and/or insurance concessionaires at the Airport, or upon
application of other ground transportation operators, shall furnish and rent to
such applicants at a fair per square foot rental rate, adequate and sufficient
floor space within

 

74

 

the
Gold Concourse for the conduct of such concessionaire’s business for the
air-travelling public making use of the Gold Concourse, but concession revenues
from such operations shall not be retained by Northwest but shall be paid to
MAC by Northwest.

 

b.                                      The Gold Concourse, as a facility for use by
the travelling public, shall be subject to laws, rules, regulations and
ordinances having application elsewhere within the Terminal Building, and
Northwest hereby authorizes the presence of the Airport police within said Gold
Concourse and upon the loading ramp area fronting on the same for purposes of
police control and enforcement of such laws, rules, regulations or ordinances.

 

c.                                       Except as otherwise provided in A.3.a. of this
Section, Northwest shall not at anytime assign, transfer, convey, sublet,
mortgage, pledge, or encumber its interest under this Article, or any part of
the associated Terminal Ramp, or any other right granted under this Article to
any party other than a wholly owned subsidiary of Northwest or a successor of
Northwest by merger or acquisition, without first offering to assign or sublet
such interest to MAC.

 

d.                                      MAC and Northwest shall mutually agree on the
type, material business terms and location of new permanent concessions that
are placed in the Southwest Addition and in the gate 1-9 area of the Gold
Concourse, in accordance with commercially reasonable standards at regional
shopping malls, except for permanent concessions consisting of Caribou Coffee;
six to eight carts, kiosks or wall stores; McDonalds expansion into mechanical
space; or kiosks or temporary facilities, which shall not require,
respectively, Northwest’s or MAC’s consent or input.

 

4.                                       MAINTENANCE, REPAIR AND ADMINISTRATIVE COSTS

 

a.                                       Northwest shall pay all costs of operations
to, at or from the Gold Concourse, including, without limiting the foregoing,
cost of utilities, custodial services, repair, maintenance, police, fire and
administrative expense allocable to the facility (based upon gross square
footage in the Terminal Complex) and that portion of the premium on MAC’s
property insurance insuring the Terminal Building and equipment therein against
fire with extended coverage, malicious mischief, boiler and machinery and glass
damage, as relates to the Gold Concourse as a part thereof, proceeds of such
insurance to be applied to repair. The allocation of all such expenses shall be
made by MAC according to generally accepted accounting principles. In addition,
Northwest shall procure and pay for, or shall endorse the insurance covering
its operations to, at or from the Terminal

 

75

 

Building
under this Agreement so as to cover operations on the Gold Concourse.

 

b.                                      Northwest may make alterations to or install
fixtures, equipment and improvements on the Gold Concourse, as required to meet
its operating needs, provided consent of MAC is first obtained, which consent
shall be granted unless MAC determines that such alterations, or such fixtures,
equipment and improvements are inconsistent with the overall Terminal Building
operation or with MAC’s operation at and control of the Airport. It is
understood that Northwest may and is hereby authorized to further improve and
develop at its cost and expense the unenclosed lower level space under lease to
it, subject to MAC approval of plans and specifications therefor.

 

5.                                       RENTALS, FEES AND CHARGES

 

Northwest
shall pay rent for its use and occupancy of the Gold Concourse, not on a
compensatory basis, and not subject to annual recalculation of Terminal
Building rentals as provided in this Agreement, but rather as follows:

 

a.                                       Until July 1, 1999, on a monthly basis,
$173,140.19 as rent for the portion of the Gold Concourse excluding the Gold
World Club and Gates 1-9. Beginning July 1, 1999, on a monthly basis, $132,738.20
as rent for the portion of the Gold Concourse excluding the Gold World Club and
Gates 1-9.

 

b.                                      On a monthly basis, $35,063.79 as rent for
Gates 1-9, including the area identified as the Gold World Club and the parts
storage building.

 

c.                                       On a monthly basis, police, fire and
administrative charges and cost of utilities.

 

d.                                      Until July 1, 1999, on a monthly basis, an
amount equal to 15% of the gross revenue Northwest derives from all concessions
operated on Gates 1-9 on the Gold Concourse, and a corresponding monthly report
of the gross receipts by unit. Beginning July 1, 1999, on a monthly basis, an
amount equal to 15% of the gross revenue Northwest derives from all concessions
operated on the Gold Concourse, including any future extensions, and a corresponding
monthly report of the gross receipts by unit. For purposes of this provision “gross
revenue” means all monies or rental payments paid or payable to Northwest
whether by cash, credit or otherwise and is based upon the assumption that the
division of expenses (such as license fees, utilities, taxes) between Northwest
and its concessionaires shall remain substantially the same as under the
previous agreement covering the Gold Concourse.

 

76

 

e.                                       On a monthly basis, in compensation for the
loss of space on the Gold Concourse due to construction of the International
Arrivals Facility, MAC shall pay to Northwest 35% of the concession fees paid
to MAC from the Southwest Addition.

 

f.                                         On a monthly basis for compensation for use of
Gates 1-9 for scheduled international aircraft arrivals, MAC shall pay
Northwest, $400, $800 and $1200, for each arrival by, respectively, propeller
aircraft, narrow-body jet aircraft or wide-body aircraft at the IAF.

 

6.                                       FUTURE EXTENSION

 

MAC
and Northwest agree that upon written notice from Northwest, MAC and Northwest
will amend this Agreement and the lease between MAC and Northwest for the
Northwest Main Base - Building B, so as to permit Northwest, at its own cost
and subject to MAC approval of plans and specifications as set forth herein, to
construct an extension to the Gold Concourse to add additional gates and
aircraft parking positions designed for narrow body aircraft. Upon beneficial
occupancy of any such Gold Concourse extension, rent for Building B shall be
reduced by an agreed upon amount, provided that an equivalent amount shall be
added to Gold Concourse rent and that rental of such Gold Concourse extension
and use of associated aircraft parking positions shall be on the same basis as
provided in this Article.

 

7.                                       DELEGATION

 

By
letter agreements, Northwest and MAC may jointly provide for the provision of
maintenance or concessions on the Gold Concourse, subject to such terms and
conditions mutually agreed upon by MAC and Northwest.

 

B.            TEMPORARY REGIONAL TERMINAL

 

1.                                       GENERAL

 

The
terms, covenants, conditions and provisions of this Agreement shall apply to
the lease of the Temporary Regional Terminal to Northwest Airlines, provided
that in the event the terms of this Article conflict with any other provision
of this Agreement, this Article shall control.

 

2.                                       TERM

 

Occupancy
of the Temporary Regional Terminal by Northwest shall continue under these
rates, terms and conditions until such time as a replacement facility for the Temporary
Regional Terminal is identified by MAC and available for use.

 

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3.                                       USE OF THE TEMPORARY REGIONAL TERMINAL

 

a.                                       Northwest hereby leases from MAC the ground
area necessary for a temporary regional/commuter passenger holdroom facility.
The demised premises shall include an area extending 20 feet beyond the
exterior walls. MAC will maintain an easement across the property for Airport
operational access and maintenance purposes.

 

b.             1)             The
temporary regional/commuter passenger holdroom facility is not large enough to
accommodate the passengers, ticketing, baggage handling functions and small
package services of all regional/commuter air carriers. Therefore, these
airlines will lease ticket counter space in this facility directly from MAC at
the prevailing rates and lease terms or be accommodated by their airline
partners.

 

2)             Due
to the increased number of operations on the aircraft ramp and the distance
certain aircraft may be parked from the temporary regional/commuter passenger
holdroom facility, an airside busing operation may be required by MAC and
instituted to transport passengers to and from all regional/commuter aircraft
for safety, convenience and service purposes consistent with reasonable standards
of safety. Northwest is responsible for operating the airside busing operation.
MAC reserves the right to regulate the busing operation for operational and
safety purposes.

 

3)             Great
Lakes Airlines, Bemidji Airlines or any new entrant may, as determined by MAC,
operate from the existing Regional Terminal until its demolition to make way
for the Green Concourse extension or they may choose to operate from the new
temporary regional/commuter passenger holdroom facility.

 

4)             MAC’s
operating budget will be impacted through the increased costs of maintaining
the new building space and apron.

 

5)             Therefore,
it is agreed that:

 

a)             Northwest shall make the temporary
regional/commuter passenger holdroom facility available for access as set forth
in Article IV.E.3.

 

78

 

“Accommodation
of other Airlines”, provided, however, that Northwest shall accommodate Great
Lakes Airlines in the Temporary Regional Terminal under arrangements previously
agreed upon between MAC and Northwest. Costs for such accommodation of Great
Lakes Airlines shall be established as set forth in Article IV.E.3.

 

b)            Initial allocations of both aircraft apron and
podiums, as set out in Exhibits L and Q respectively, are to be made by
agreement between Northwest and the regional/commuter airlines. The initial
allocation may change by future agreement and must be included as an amendment
to this Agreement. In the event of dispute, MAC will serve as the final arbiter
in directing final resolution.

 

c)             MAC will be responsible for providing
janitorial services to the temporary regional/commuter passenger holdroom
facility.

 

d)            MAC will be responsible for providing
maintenance on the Green Concourse Extension portion of the project.

 

e)             Northwest will be responsible for providing
facility maintenance at the temporary regional/commuter terminal.

 

f)             MAC will be responsible for maintaining the
apron areas dedicated to regional/commuter use.

 

g)            The airside busing operation will be operated
by Northwest on a reasonable and nondiscriminatory basis.

 

4.                                       RENT AND OPERATIONS FUNDING

 

a.                                       Ground rent for the Temporary Regional
Terminal will be at a rate of $.19 per square foot per annum as shown on
Exhibit Q. Payment shall be made on a monthly basis to MAC. Northwest Airlines
shall pay all real estate and personal property taxes and assessments of any
nature levied against Northwest’s interest in the Temporary Regional Terminal
or against any improvements or equipment on the premises without deduction or
set-off to aforesaid rental payment.

 

79

 

b.                                      MAC will charge the applicable users for the
costs of providing janitorial services and utilities to the temporary passenger
holdroom facility through normal and customary space rental charges.

 

Costs
associated with Northwest’s Airlink partners will be charged directly to
Northwest.

 

Northwest
will be solely responsible for the costs associated with the airside busing
operation.

 

5.                                       TITLE TO IMPROVEMENTS

 

Following
termination of occupancy rights to the Temporary Regional Terminal, the land
and improvements, except the airline furniture, fixtures and equipment, shall
revert back to MAC with no further obligation by Northwest.

 

6.                                       REGIONAL/COMMUTER APRON & AUTO RENTAL
SERVICE SITE MODIFICATION COST RECOVERY

 

The
construction costs associated with 602 lineal feet of temporary
regional/commuter apron and the auto rental service sites modification costs
will be charged to the Terminal Apron cost center.

 

The
operational costs associated with 602 lineal feet of temporary
regional/commuter apron will be charged to the Terminal Apron cost center.

 

7.                                       CONCESSIONS

 

Northwest
and MAC will jointly determine appropriate concessions to be offered in the
temporary regional/commuter passenger holdroom facility. Northwest will be
responsible for coordinating design and construction of all concessions in the
new temporary regional/commuter passenger holdroom facility. All revenues
received from the concessions in the facility will be reported fully to MAC and
Northwest on a monthly basis but will be retained by Northwest.

 

C.            FIS BAG BELT ENCLOSURE

 

1.                                       Northwest Airlines hereby leases from MAC the
portion of the FIS Bag Belt Area that has been enclosed for Northwest tug and
vehicle storage, as shown on Exhibit R. Northwest shall allow other Airlines to
use this area without charge to access the baggage belts. In addition, MAC may
access this area without charge to maintain the baggage belts.

 

80

 

2.                                       Northwest shall install and maintain
protective equipment designed to protect the bag belt from damage and shall be
responsible for any damage to the bag belts caused by Northwest or its agents.

 

3.                                       Beginning July 1997, Northwest shall pay MAC
ground rent for this area at a rate of nineteen cents ($.19) per square foot
per annum. Payment shall be made on a monthly basis to MAC.

 

D.            TERMINAL BUILDING

 

1.                                       If MAC determines that it is in the Airport’s
interest to purchase improvements, equipment or to make other capital
expenditures which are outside the scope of this Agreement but which may
benefit an airline, MAC may enter into a supplemental agreement with the
affected airline to provide for the payment of the costs of such purchase.

 

2.                                       AIRLINE agrees that the projects listed on
Exhibit S attached hereto are projects which have been completed by MAC with
AIRLINE’s concurrence and shall not be included in airline rates and charges,
but rather shall be paid by AIRLINE to MAC as set forth in Exhibit S.

 

3.                                       MAC shall issue up to one hundred thirty
million dollars ($130,000,000) in Special Facility Obligations, as defined in
the Trust Indenture, to be supported by Northwest Airlines credit contingent
upon agreement between MAC and Northwest with respect to the projects to be
financed thereby.

 

E.             MONTH TO MONTH PREMISES

 

AIRLINE
agrees that the Leased Premises shown on Exhibit T attached hereto are leased
to AIRLINE on a month-to-month term; and that all of the terms and conditions
of this Agreement, other than Article II.A. “Term” apply to these
month-to-month premises.

 

81

 

XIV.                        EVENTS OF DEFAULT; REMEDIES

 

A.            EVENTS OF DEFAULT

 

The occurrence and
continuation of any one or more of the following shall constitute an event of
default:

 

1.                                       AIRLINE fails to make payment in full when due
of any rents, fees, charges or any other amount payable hereunder within 5
business days after notice thereof from MAC;

 

2.                                       AIRLINE shall fail to make any PFC remittance
to MAC in a timely fashion, or shall fail to timely comply with its PFC
reporting requirements to the MAC, or any other entity, in connection with PFCs
collected on behalf of MAC;

 

3.                                       AIRLINE fails to submit a Monthly Activity
Report to MAC on or before the 10th day of each month;

 

4.                                       AIRLINE shall make or permit any unauthorized
assignment or transfer of this Agreement, or any interest herein, or of the
right to use or possession of the Premises, or any part thereof;

 

5.                                       Any insurance required by the terms hereof
shall at any time not be in full force or effect;

 

6.                                       Failure of AIRLINE to perform, comply with, or
observe, in any material respect, any other term, condition or covenant of this
Agreement not identified elsewhere in Section A of this Article within thirty
(30) days after receipt of notice from MAC of such failure, or for such longer
period of time as may be reasonably necessary to cure the event of default, but
only for such longer period if: (a) AIRLINE is reasonably capable of curing the
event of default and (b) AIRLINE promptly and continuously undertakes to cure
and diligently pursues the curing of the event of default at all times until
such event of default is cured;

 

7.                                       Any representation or warranty of a material
fact made by AIRLINE herein or in any certificate or statement furnished to the
MAC pursuant to or in connection with this Agreement proves untrue in any
material respect as of the date of issuance or making thereof;

 

8.                                       (a) AIRLINE shall commence any case,
proceeding or other action (i) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief
entered with respect to AIRLINE, or seeking to adjudicate AIRLINE a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, liquidation,
dissolution, composition or other relief with respect to AIRLINE or any of its
debts, or

 

82

 

(ii)
seeking appointment of a receiver, trustee, custodian or other similar official
for AIRLINE or for all or any substantial part of any of its property; or (b)
AIRLINE shall make a general assignment for the benefit of its creditors; or
(c) there shall be commenced against AIRLINE any case, proceeding or other
action of nature referred to in clause (a) above or seeking issuance of a
warrant of attachment, execution, distraint or similar process against all or
any substantial part of any of its property, which case, proceeding or other
action results in the entry of an order for relief or remains undismissed,
unvacated, undischarged and unbonded for a period of sixty (60) days; or (d)
AIRLINE shall take any action consenting to or approving of any of the acts set
forth in clause (a) or (b) above; or (e) AIRLINE shall generally not, or shall
be unable to, pay its debts as they become due or shall admit in writing its
inability generally to pay its debts as they become due;

 

9.                                       Any money judgment, writ or warrant of
attachment or similar process, or any combination thereof, involving an amount
in excess of $25,000,000 shall be entered or filed against the AIRLINE or any
of its assets and shall remain undischarged, unvacated, unbonded and unstayed
for a period of sixty (60) days or in any event later than five (5) days prior
to the date of any proposed sale or execution thereunder;

 

10.                                 Any act occurs that deprives AIRLINE
permanently of any material right, power or privilege necessary for the conduct
and operation of its Air Transportation Business; or

 

11.                                 If AIRLINE ceases to provide scheduled air
service at the Airport for a period of thirty (30) consecutive days or abandons
or fails to use its Exclusive Use Space for a period of thirty (30) consecutive
days, except when such cessation or abandonment is due to the default of MAC or
the circumstances described in Article IX.B.

 

B.            REMEDIES

 

If
an event of default occurs hereunder, MAC, at its option, may at any time
thereafter, do one or more of the following as MAC in its sole discretion shall
elect, to the extent permitted by, and subject to compliance with any mandatory
requirements of, applicable law then in effect:

 

1.                                       Declare all rents, fees and other charges
payable hereunder, whether currently or hereafter accruing, to be immediately
due and payable;

 

2.                                       Proceed by appropriate court action or
actions, either at law or in equity, to enforce performance by AIRLINE of the
applicable covenants and terms of this Agreement or to recover damages for the
breach thereof;

 

3.                                       Enter and take possession of the Premises
and/or the rights of the AIRLINE hereunder without such re-entry terminating
AIRLINE’s obligations for the full

 

83

 

Term
hereof, which remedy shall be in addition to all other remedies at law or in equity,
including action for forcible entry and lawful detainer, for ejectment or for
injunction;

 

4.                                       Terminate all rights of AIRLINE under this
Agreement (without terminating the continuing obligation of AIRLINE to fulfill
its past and future obligation hereunder) and in such case AIRLINE further
agrees to indemnify and hold harmless MAC against all loss in rents, fees, and
charges and other damages which MAC shall incur by reason of such termination,
including, without limitation, costs of restoring and repairing the Premises
and putting the same in rentable condition, costs of reletting the Premises to
another Airline (including without limitation AIRLINE improvement costs and
related fees), loss or diminution of rents and other damage which MAC incurs by
reason of such termination, and all reasonable attorneys’ fees and expenses
incurred in enforcing the terms of this Agreement;

 

5.                                       In the event of any default hereunder, AIRLINE
shall reimburse MAC for all reasonable fees and costs incurred by MAC, including
reasonable attorneys’ fees, relating to such default and/or the enforcement of
MAC’s rights hereunder; and

 

6.                                       Apply all Contract Security granted by AIRLINE
to any unpaid obligations of AIRLINE hereunder.

 

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XV.                            TERMINATION

 

A.            TERMINATION BY MAC

 

This Agreement may be
terminated by MAC pursuant to the provisions of Article XIV above and as
otherwise specified in this Agreement.

 

B.            TERMINATION BY AIRLINE

 

1.                                       If MAC shall fail to perform, comply with, or
observe, in any material respect, any term, condition or covenant of this
Agreement within thirty (30) days after receipt of notice from AIRLINE of such
failure, or for such longer period of time as may be reasonably necessary to
cure the event of default but only for such longer period if: (a) MAC is
reasonably capable of curing the event of default and (b) MAC promptly and
continuously undertakes to cure and diligently pursues the curing of the event
of default at all times until such event of default is cured, then AIRLINE, if
not then in default, may, without limiting any of its other rights and remedies
against MAC, at its option cancel this Agreement and thereby terminate this
Agreement.

 

2.                                       It is further understood and agreed that, at
any time when AIRLINE is not then in default, it may cancel this Agreement on
sixty (60) days’ notice in writing to MAC upon the happening of any one of the
following events:

 

a.                                       Issuance by any court of competent
jurisdiction of an injunction in any way preventing or restraining the use of
the Airport or any part thereof essential for AIRLINE’s operations hereunder
and the remaining in force of such injunction for a period of at least ninety
(90) days.

 

b.                                      Inability of the AIRLINE to use the Airport or
any part thereof essential for AIRLINE’s operations hereunder for a period of
not less than ninety (90) days because of fire, explosion, earthquake, or other
casualty or acts of God or the public enemy, unless within sixty (60) days of
the casualty, MAC gave AIRLINE written notice of its intention to repair or
reconstruct, as provided in Article IX.A. herein.

 

c.                                       The lawful assumption by the United States of
America or any authorized agency thereof of the operation, control, or use of
the Airport and the facilities thereon or any substantial part or parts
thereof, in such manner as substantially to restrict AIRLINE for a period of
not less than ninety (90) days from operating thereon for the carrying of
passengers, cargo, express, property, and United States mail.

 

85

 

d.                                      Termination or the suspension or substantial
modification for a period of not less than ninety (90) days of the operating
authority of the AIRLINE to serve the Minneapolis-St. Paul metropolitan area
through the Airport by final order of the DOT or other governmental agency,
federal or state, having jurisdiction over the AIRLINE.

 

3.                                       If any of the foregoing continues for a period
of less than ninety (90) days, AIRLINE shall have the right upon written notice
to MAC to abatement of rents, fees and charges to the extent and for the period
that AIRLINE is unable to carry on its operations hereunder.

 

C.            TERMINATION BY GOVERNMENT TAKING

 

In the event the Premises
shall be taken by governmental authority through exercise of its power of
eminent domain or other authority justifying such taking, the Agreement shall
terminate and the rents, fees and charges in respect to said premises shall
cease as of the date possession is taken by the taking authority, and MAC shall
be entitled to all damages payable by reason of taking, subject to the claim of
AIRLINE for the value of its leasehold, which claim or claims as to validity
and amount shall be a matter for determination between AIRLINE and MAC, and if
AIRLINE and MAC cannot reach a determination, then by the court having
jurisdiction of such proceeding, provided that nothing herein contained shall
preclude AIRLINE from asserting any claims or rights it may have against such
governmental authority as to its separate property, leasehold improvements, and
trade fixtures.

 

86

 

XVI.                        GENERAL PROVISIONS

 

A.            INTERPRETATION

 

Nothing herein shall be
construed or interpreted in any manner whatsoever as limiting, relinquishing or
waiving MAC’s right of control over the operation of the Airport, and it is
understood and agreed that this Agreement is entered into in recognition of the
aforesaid rights and functions of MAC. Subject to the foregoing, this Agreement
and the rights of the parties hereunder shall be interpreted in the light of
the following:

 

1.                                       SEPARABILITY

 

In
the event any covenant, condition or provision herein is held to be invalid,
illegal, or unenforceable by any court of competent jurisdiction, such
covenant, condition or provision shall be deemed amended to conform to
applicable laws so as to be valid or enforceable or, if it cannot be so amended
without materially altering the intention of the parties, it shall be stricken.
If stricken, all other covenants, conditions and provisions of this Agreement
shall remain in full force and effect provided that the striking of such
covenants, conditions or provisions does not materially prejudice either MAC or
AIRLINE in its respective rights and obligations contained in the valid covenants,
conditions or provisions of this Agreement.

 

2.                                       ENTIRE
AGREEMENT

 

This
Agreement represents the entire contract between the parties and, except as
otherwise provided herein, may not be amended, changed, modified, or altered
without the written consent of the parties hereto. This Agreement incorporates
all of the conditions, agreements, and understandings between the parties
concerning the use and occupancy of the Airfield, Terminal Apron, Terminal
Complex, and other facilities at the Airport, and all such conditions,
understandings, and agreements have been merged into this written instrument.

 

B.            COMPLIANCE
WITH LAW

 

1.                                       AIRLINE
shall not use the Airport or any part thereof, or knowingly permit the same to
be used by any of its employees, officers, agents, subtenants, invitees, or
licensees for any illegal purposes. AIRLINE shall, at all times during the Term
of this Agreement, comply with all applicable regulations, ordinances, and laws
of any Municipal, County, or State government or of the U.S. Government, and of
any political division or subdivision or agency, authority, or commission
thereof which may have jurisdiction to pass laws or ordinances or to make and
enforce rules or regulations with respect to the uses hereunder of the Premises
(and, to

 

87

 

the
extent not in conflict with the foregoing, MAC’s Rules and Regulations and
Ordinances).

 

2.                                       At all times during the Term of this
Agreement, AIRLINE shall, in connection with its activities and operations at
the Airport:

 

a.                                       Comply with and conform to all present and
future statutes and ordinances, and regulations promulgated thereunder, of all
Federal, State, and other government bodies of competent jurisdiction that
apply to or affect, either directly or indirectly, AIRLINE or AIRLINE’s
operations and activities under this Agreement. AIRLINE shall comply with all
applicable provisions of the Americans with Disabilities Act of 1990, 42 U.S.C.
Section 12101 and federal regulations promulgated thereunder 28 C.F.R. parts
35, 36, and 37.

 

b.                                      Make, at its own expense, all non-structural
improvements, repairs, and alterations to its Exclusive and Preferential Use
Premises (subject to prior written approval of MAC), equipment, and personal
property that are required to comply with or conform to any of such statutes
and ordinances.

 

c.                                       Reimburse MAC for AIRLINE’s proportional share
of all non-structural improvements, repairs, and alterations to its Common Use
Premises that are required to comply with or conform to any of such statutes
and ordinances.

 

d.                                      At all times during the Term of this
Agreement, AIRLINE shall be an independent contractor.

 

3.                                       AIRLINE agrees to comply with the notification
and review requirements covered in Part 77 of the Federal Aviation Regulations
in the event any future structure or building is planned for the Premises, or
in the event of any planned modification or alteration of any present or future
building or structure situated on the Premises.

 

4.                                       COMPLIANCE WITH ENVIRONMENTAL LAWS

 

AIRLINE
shall keep and maintain and shall conduct its operations on the Premises in
full compliance with all applicable Environmental Laws. AIRLINE shall further
ensure that its employees, agents, contractors and subcontractors occupying or
present on the Premises and any other invitees or persons conducting any
activities on the Premises under the control of AIRLINE comply with all
applicable Environmental Laws. By virtue of its operational control of the
Premises, AIRLINE shall be fully responsible for obtaining all necessary
permits or other approvals under the Environmental Laws and shall have full
responsibility for signing and submitting any necessary applications, forms,
documentation,

 

88

 

notifications
or certifications relating thereto. Upon request of MAC, AIRLINE shall provide
copies to MAC of any such applications, forms, documents, notifications or
certifications.

 

5.                                       FEDERAL STORMWATER REGULATIONS

 

a.                                       Notwithstanding any other provisions or terms of
this Agreement, AIRLINE acknowledges that the Airport is subject to Federal
Stormwater Regulations, 40 C.F.R. part 122, for vehicle maintenance shops
(including vehicle rehabilitation, mechanical repairs, painting, fueling and
lubrication), equipment cleaning operations, and/or deicing operations that
occur at the Airport as defined in said regulations. AIRLINE further
acknowledges that it is familiar with these stormwater regulations; that it may
conduct or operate from time to time “vehicle maintenance” (including vehicle
rehabilitation, mechanical repairs, painting, fueling and lubrication),
equipment cleaning operations, and/or deicing activities as defined in the
Federal Stormwater Regulations; that AIRLINE may be obligated to obtain its own
stormwater or other NPDES permit; and that it is aware that there are
significant penalties for submitting false information, including fines and
imprisonment for knowing violations.

 

b.                                      AIRLINE acknowledges that MAC’s stormwater
discharge permit and any subsequent renewals, is incorporated by reference into
this Agreement. AIRLINE agrees to be bound by all applicable portions of said
permit.

 

c.                                       Notwithstanding any other provisions or terms
of this Agreement, including AIRLINE’s right to quiet enjoyment, MAC and AIRLINE
both acknowledge that close cooperation is necessary to insure compliance with
any stormwater discharge permit terms and conditions, as well as to insure
safety and to minimize costs. AIRLINE acknowledges that it may be necessary to
undertake to minimize the exposure of stormwater to significant materials
generated, stored, handled or otherwise used by AIRLINE as defined in the
Federal Stormwater Regulations, by implementing and maintaining “Best
Management Practices.”

 

d.                                      MAC shall provide AIRLINE with written notice
of those stormwater discharge permit requirements arising from MAC’s permit
that AIRLINE shall be obligated to perform from time to time, including
collection of stormwater samples; preparation of stormwater pollution
prevention or similar plans; implementation of “good housekeeping” measures or
Best Management

 

89

 

Practices;
and maintenance of necessary records. Such written notice shall include
applicable deadlines.

 

e.                                       AIRLINE agrees to undertake at its sole
expense, unless otherwise agreed to in writing between MAC and AIRLINE, those
stormwater discharge permit requirements arising from MAC’s permit applicable
to a stormwater discharge for which AIRLINE has responsibility for which it has
received written notice from MAC. AIRLINE warrants that it shall meet any and
all deadlines that may be imposed on or agreed to by MAC and AIRLINE.

 

f.                                         AIRLINE, within thirty (30) days of receipt of
such written notice, shall notify MAC in writing if it disputes any of the
stormwater discharge permit requirements it is being directed to undertake. If
AIRLINE does not provide such timely notice, it is deemed to assent to
undertake such requirements. If AIRLINE provides MAC with written notice, as
required above, that it disputes such stormwater discharge permit requirements,
MAC and AIRLINE agree to negotiate a prompt resolution of their differences.
AIRLINE warrants that it will not object to MAC notices required pursuant to
this Paragraph for purposes of delay or avoiding compliance.

 

g.                                      In order to maintain compliance with 40 C.F.R.
part 122, if resolution of any dispute between MAC and AIRLINE regarding
stormwater discharge permit requirements is not achieved within ninety (90)
days, MAC reserves the right to undertake whatever action is necessary to
comply with said permit requirements and the reasonable cost thereof shall be
allocated based on each party’s legal responsibility for undertaking the action
in question.

 

h.                                      MAC and AIRLINE agree to provide each other
upon request, with any non-privileged information collected and submitted to
any government entity(ies) pursuant to applicable stormwater regulations.

 

i.                                          AIRLINE agrees that the terms and conditions
of MAC’s stormwater discharge permit may change from time to time.

 

j.                                          AIRLINE agrees to participate in any MAC
organized task force or other work group established to coordinate stormwater
activities at the Airport.

 

k.                                       All such remedies of MAC with regard to
environmental requirements as set forth herein shall be deemed cumulative in
nature and shall survive termination of this Agreement.

 

90

 

C.            CIVIL/HUMAN RIGHTS LAWS

 

1.                                       AIRLINE assures that it will comply with
pertinent legal requirements as are promulgated to assure that no person shall,
on the grounds of race, creed, color, national origin, sex, age, or disability
be excluded from participating in any activity conducted with or benefiting
from federal assistance.

 

2.                                       AIRLINE agrees that it will practice
nondiscrimination in its activities and will provide Disadvantaged Business
Enterprise participation in their leases as required by MAC, in order to meet
the sponsor’s goals, or required by the FAA in order to obtain an exemption
from the prohibition against long-term exclusive leases.

 

3.                                       AIRLINE for itself, its heirs, personal
representatives, successors in interest, and assigns, as a part of the
consideration hereof, does hereby covenant and agree, as a covenant running
with the land, that in the event facilities are constructed, maintained, or
otherwise operated on the said property described in this Agreement for a
purpose for which a DOT program or activity is extended or for another purpose
involving the provision of similar services or benefits, AIRLINE shall maintain
and operate such facilities and services in compliance with all other
requirements imposed pursuant to 49 CFR part 21, Nondiscrimination in Federally
Assisted Programs of the Department of Transportation, and as said Regulations
may be amended.

 

4.                                       AIRLINE for itself, its personal
representatives, successors in interest, and assigns, as a part of the
consideration hereof, does hereby covenant and agree, as a covenant running
with the land, that: (a) no person on the grounds of race, color, or national
origin shall be excluded from participation in, denied the benefits of, or be
otherwise subjected to discrimination in the use of said facilities; (b) that
in the construction of any improvements on, over, or under such land and the furnishing
of services thereon, no person on the grounds of race, color, or national
origin shall be excluded from participation in, denied the benefits of, or
otherwise be subjected to discrimination; and (c) that AIRLINE shall use the
Premises in compliance with all other requirements imposed by or pursuant to 49
CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department
of Transportation, and as said Regulations may be amended.

 

D.            ECONOMIC NONDISCRIMINATION

 

AIRLINE agrees to furnish service
on a reasonable, and not unjustly discriminatory basis to all users thereof,
and to charge reasonable, and not unjustly discriminatory prices for each unit
or service, provided that AIRLINE may be allowed to make reasonable and
nondiscriminatory discounts, rebates, or other similar types of price
reductions to volume purchasers.

 

91

 

E.             GRANTING OF MORE FAVORABLE TERMS

 

MAC covenants and agrees not
to enter into any lease, contract, or agreement with any other Airline making
use of the Airport which unjustly discriminates against AIRLINE’s use of the
Airport, unless the same rights, privileges, and concessions are concurrently
and automatically made available to AIRLINE. Without limiting the generality thereof,
the foregoing shall not be construed to limit the right of MAC to enter into
agreement with any other Airline at varying terms, rates, and conditions for
leasing hangars and ground areas.

 

F.             CONSENTS, APPROVALS, AND NOTICES

 

1.                                       Wherever in this Agreement the consent or
approval of MAC or AIRLINE is required, such consent or approval shall mean the
consent or approval of the Executive Director on behalf of MAC and a
representative designated by AIRLINE in writing on behalf of AIRLINE.

 

2.                                       All notices required by this Agreement shall
be in writing and shall be given by registered or certified mail by depositing
the same in the U.S. mail in the continental United States, postage prepaid,
return receipt requested, or by personal or courier delivery. Either party
shall have the right, by giving written notice to the other, to change the
address at which its notices are to be received. Notice shall be given to:

 

a.                                       MAC:

 

Executive
Director

 

Metropolitan
Airports Commission

 

28th
Avenue South

 

Minneapolis
MN 55450

 

b.                                      AIRLINE:

 

[as
set forth below

 

in
AIRLINE’s

 

signature
hereto]

 

c.                                       If notice is given in another manner or place,
it shall also be given at the place and in the manner specified above.

 

d.                                      The effective date of such notice, consent, or
approval shall be the date of the receipt as shown by the U.S. Postal Service
Return Receipt or the courier receipt, or the date personal delivery is
certified, unless provided otherwise in this Agreement.

 

92

 

G.            WAIVER

 

1.             Waiver of any provision of this Agreement by
either party shall not be deemed binding unless such waiver is in writing, signed by the party making the
waiver and addressed to the other
party, nor shall any custom or
practice which may evolve between the parties in the administration of the terms of this Agreement be construed to waive or lessen the
right of either party to insist
upon the performance of the other
party in strict accordance with the terms of this Agreement.

 

2.             Waiver by either party of breach of any
covenant, condition, or agreement herein by the other party shall not operate as a waiver of any
subsequent breach by such other
party or release such other party
from its obligation under the terms of the Agreement. 

 

H.            APPLICABLE LAW AND FORUM SELECTION

 

1.             This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Minnesota, and the laws, rules and regulations
of MAC.

 

2.             Any cause of action, claim, suit, demand, or
other case, or controversy arising from or related to this Agreement shall only be brought in a state
district court located in the
county of Hennepin, Minnesota or in
a federal district court located in Minnesota. The parties irrevocably admit themselves to, and
consent to, the jurisdiction of
either or both of said courts.
The provisions of this Section shall survive the termination of this Agreement.

 

I.              SUCCESSORS

 

All covenants, stipulations,
and agreements in this Agreement shall extend to and bind the legal representatives,
successors, and assigns of the respective parties hereto.

 

J.             INSPECTION

 

1.             MAC shall have the right, but not the
obligation or duty, to inspect AIRLINE’s operations at all reasonable times for any purpose connected
with this Agreement, in the exercise
of MAC’s governmental functions,
for the purpose of determining whether AIRLINE is fulfilling the obligations imposed on it under the provisions of this Agreement.

 

2.             If inspection reveals that AIRLINE is not
fulfilling such obligations or any thereof, and MAC has sent AIRLINE written notice to that effect, and
AIRLINE has not within thirty
(30) days proceeded to the fulfillment
thereof, MAC may proceed to do the work necessary to such fulfillment,

 

93

 

and AIRLINE shall reimburse
MAC in the amount of the cost thereof plus a 15 percent administrative charge.

 

3.             The failure of MAC to inspect or monitor or
give AIRLINE notice of a default or a notice of a hazardous or unsafe condition with respect toAIRLINE’s operations under this
Agreement shall not release
AIRLINE from its liability to perform its obligations under this Agreement or impose any liability on MAC.

 

4.             AIRLINE shall have the right to inspect the
Airport or any part thereof at any reasonable time, upon request to the Executive Director and the
granting of such request by the
Executive Director, such request not
to be unreasonably denied, and the Executive Director or the Executive Director’s representative shall accompany AIRLINE’s representative on
any and all inspections.

 

K.            QUIET ENJOYMENT

 

So long as AIRLINE is not in
default in its obligations hereunder, MAC covenants and agrees that AIRLINE
shall have, hold and enjoy peaceful and uninterrupted possession of all of the
Premises and of its rights to operate in, to and from the Airport as hereby
granted.

 

L.             NON-LIABILITY OF AGENTS AND EMPLOYEES

 

1.             No member, officer, agent, director, or
employee of MAC or AIRLINE shall be charged personally or held contractually liable by or to the other party
under any term or provision of
this Agreement or because of any
breach thereof or because of its or their execution or attempted execution.

 

2.             AIRLINE expressly agrees that MAC shall not be
liable to AIRLINE, its contractors, agents, officers, employees, passengers, or invitees for
personal injury or for any loss
or damage to real or personal property
occasioned by flood, fire, earthquake, lightning, windstorm, hail, explosion, riot, strike, civil commotion, aircraft, smoke, vandalism,malicious mischief, or acts of civil
authority, or other casualty.

 

3.             MAC expressly agrees that AIRLINE shall not be
liable to MAC, its contractors, agents, officers, employees, or invitees for personal injury or for any
loss or damage to real or
personal property occasioned by flood,
fire, earthquake, lightning, windstorm, hail, explosion, riot, strike, civil commotion, aircraft, smoke, vandalism, malicious mischief, or acts
of civil authority, or other
casualty.

 

4.             The provisions of this Section shall survive the
termination of this Agreement.

 

94

 

M.           NO PARTNERSHIP OR AGENCY

 

Nothing contained in this
Agreement is intended or shall be construed in any respect to create or
establish any relationship other than that of lessor and lessee, and nothing herein
shall be construed to establish any partnership, joint venture or association
or to make AIRLINE the general representative or agent of MAC for any purpose
whatsoever.

 

N.            SECURITY

 

In conjunction with AIRLINE’s
operations at Airport,  reasonable
access shall be made available for both persons and vehicles to AIRLINE’s aircraft parked in
designated parking areas via
Terminal Complex doors, field access gates, passenger loading bridges, and the ramp gates to the Security Identification Display Area (“SIDA”), Air
Operations Area (“AOA”), or other
defined security area. In order to maintain the security of restricted areas on Airport, AIRLINE will be responsible for the control of persons and
vehicles entering the SIDA via
the ramp gates to and from AIRLINE’s aircraft. AIRLINE agrees to implement and maintain security measures with respect to access control to and from
AIRLINE’s aircraft and with
respect to the use of the SIDA, as required by federal regulations. Such security measures shall be reduced to writing and be provided to the Airport
Security Coordinator (“ASC”).
AIRLINE agrees to implement and maintain, as a minimum, the following security measures concerning access control to and from the SIDA:

 

1.             During all hours, access points to the SIDA
shall be secured and locked.

 

2.             AIRLINE and its agents shall challenge any
persons not recognized as being authorized to have access to the SIDA from
AIRLINE’s operations.

 

3.             AIRLINE and its agents shall restrict the
activities of its employees who are authorized to be in the SIDA to that
portion of the SIDA in which AIRLINE is authorized to operate.

 

4.             AIRLINE and its agents are responsible for
ensuring that personnel are trained in the security procedures described in this Agreement and in all other
security procedures, rules, and
ordinances developed by MAC. MAC
may require attendance at courses conducted by MAC or MAC may elect to allow AIRLINE and its agents to conduct such training. Whenever AIRLINE
conducts such training, the
Airport Security Coordinator or designee
will have the right to audit.

 

5.             AIRLINE and its agents shall not allow any
unescorted person into the SIDA unless that person has a valid Airport identification badge. Identification
badges shall not be considered
valid unless the color code of
the badge corresponds with the location in which such person may enter, as designated by MAC. People who do not have valid identification badges to
be present on the SIDA shall be
escorted at all times they are
present on the SIDA by a person with a valid identification badge. Issuance of ramp or SIDA identification badges shall be made

 

95

 

only by MAC and shall be at
the sole discretion of MAC. Ramp and other identification badges shall be denied
to people not meeting security requirements.

 

6.             AIRLINE and its agents shall abide by the
Airport’s security program and comply with applicable security procedures including, but not limited to, the
wearing of security identification
badges by AIRLINE’s and its
agents’ personnel and clearly identifying each of AIRLINE’s vehicles by placing AIRLINE’s
company or agent’s name on each
vehicle, or fully comply with any
vehicle identification or licensing system adopted by MAC.

 

7.             AIRLINE and its agents shall immediately
notify the Airport Police of any suspicious activities observed in or about the
SIDA.

 

8.             Any unresolved questions concerning Airport
security shall be directed to the Airport Security Coordinator.

 

9.             AIRLINE further agrees to reimburse MAC for
any penalties or fines levied against MAC by the FAA due to AIRLINE’s or its
agents’ failure to abide by any applicable security measures.

 

10.           The Airport Security Coordinator or his
designated alternate will periodically evaluate compliance with this Section. Failure of AIRLINE to fully
comply with the procedures set
forth in this Section shall be sufficient
grounds for MAC to immediately take any and all necessary corrective measures until security that is acceptable to MAC is restored. AIRLINE
shall pay any costs of such
corrective measures, plus a fifteen
percent (15 percent) administrative charge.

 

11.           AIRLINE must immediately return each
MAC-issued security
identification badge to the airport badging office upon expiration of badge or upon termination of badgeholder’s employment or contract.
Further, AIRLINE must promptly
report any loss or theft of an individual’s
MAC-issued security identification, the termination of any badgeholder whose security identification is not recovered; or the
suspension of any badgeholder.

 

12.           AIRLINE must comply within established
timelines with any security audits conducted by the MAC including audits of
airport-issued security badges.

 

O.            SUBORDINATION TO AGREEMENTS WITH THE U.S.
GOVERNMENT

 

This Agreement shall be
subordinate to the provisions of and  requirements of any existing or future agreement between MAC and the United States, relative to the
development, operation, or
maintenance of the Airport.

 

This Agreement and all the
provisions hereof shall be subject to whatever right the United States
Government now has or in the future may acquire affecting

 

96

 

the control, operation,
regulation, and taking over of said Airport or the exclusive or non-exclusive
use of the Airport by the United States during the time of war or national emergency.

 

P.             NO EXCLUSIVE RIGHT

 

Nothing herein contained
shall be deemed to grant to AIRLINE any exclusive right or privilege within the
meaning of Section 308 of the Federal Aviation Act for the conduct of any activity
on the Airport.

 

Q.            CONCERNING DEPRECIATION AND INVESTMENT CREDIT

 

Neither AIRLINE nor any
successor of AIRLINE under this Agreement may claim depreciation or an
investment credit under the Internal Revenue Code of 1954, as amended, with
respect to the Premises. AIRLINE represents that it has made an election under
Proposed Treasury Regulations Sections 1.103(n)-1T through 1.103(n)-6T not to
claim such depreciation or investment credit with respect to the Premises and
agrees that it will retain copies of said election in its records and will not
claim any such depreciation or investment credit. MAC acknowledges receipt of a
copy of said election and agrees that it will retain copies of said election in
its records.

 

R.            ATTORNEY’S FEES

 

In any action brought by
either party for the enforcement of any provisions of this Agreement, the party
prevailing in said action shall be entitled to recover reasonable attorney’s
fees from the other party.

 

S.             SAVINGS

 

MAC and AIRLINE acknowledge
that they have thoroughly read this Agreement, including all exhibits thereto,
and have sought and received whatever competent advice and counsel was necessary
for them to form a full and complete understanding of all rights and
obligations herein. MAC and AIRLINE further acknowledge that this Agreement is
the result of extensive negotiations between them and that this Agreement shall
not be construed against either party by reason of that party’s preparation of
all or part of this Agreement.

 

T.            MASTER TRUST INDENTURE

 

1.             SUBORDINATION OF FACILITIES CONSTRUCTION
CREDITS.

 

The obligations of MAC under
this Agreement, if any,  which
constitute Facilities Construction Credits, are made subject and subordinate to the terms and provisions of the MAC revenue obligations
issued pursuant to Minnesota
Statutes, Section 473.608, Subd.12a.,
including the terms and provisions of master trust indenture which controls the issuance of such obligations.

 

97

 

2.             AIRLINE COOPERATION.

 

a.             The AIRLINE agrees that it will cooperate
with MAC, the underwriters and their counsel to satisfy any ongoing disclosure
requirements necessary under applicable law in order to market the MAC revenue
obligations, including provision of annual reports of AIRLINE or any parent.

 

b.             AIRLINE shall cooperate with MAC and the
underwriters of MAC’s revenue obligations so that the provisions of Rule 15(c)
2-12 of the Securities Exchange Act of 1934, as amended, are complied with.

 

c.             At the time of issuance of MAC revenue
obligations, AIRLINE agrees that a duly authorized officer of AIRLINE shall
execute a certificate stating that the information relating to AIRLINE, if any,
contained in the official statement is accurate in all material respects
(except as otherwise set forth in such certificate) on and as of the date
thereof, provided, however, that no such certification need be made with
respect to the completeness of such information.

 

U.            TERMINATION OF PRIOR AGREEMENTS

 

All prior agreements between
MAC and AIRLINE covering the use  and occupancy of the Airfield, Terminal Building, Terminal Apron, Gold Concourse or International
Arrivals Facility, but excluding
any agreements between MAC and AIRLINE covering Other Areas on the Airport, and excluding any required agreements between MAC and AIRLINE covering
mobile lift devices, are hereby
cancelled.

 

98

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed by their duly authorized officers on the
dates below.

 

 

	
  In Presence Of:

  	
  METROPOLITAN AIRPORTS
  COMMISSION

  
	
   

  	
   

  	
   

  
	
  /s/ [signed - signature illegible]

  	
   

  	
  By:

  	
  /s/ Gordy Wennerstrom

  
	
   

  	
   

  	
  Gordy Wennerstrom

  
	
   

  	
   

  	
   

  
	
   

  	
  It’s:

  	
  Dir. Commercial Management &Airline Affairs

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  February 11, 2000

  
	
   

  	
   

  	
   

  
	
  In Presence Of:

  	
   

  	
  Northwest Airlines, Inc.

  
	
   

  	
   

  	
   

  
	
  /s/ John R. DeCoster

  	
   

  	
  By:

  	
  /s/ James M. Greenwald

  
	
   

  	
   

  	
  Mr.
  James M. Greenwald

  
	
   

  	
   

  	
   

  
	
   

  	
  It’s:

  	
  Vice
  President Facilities &Airport Affairs

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  February 10, 2000

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  Northwest Airlines, Inc.

  
	
   

  	
   

  	
  5101 Northwest Drive

  
	
   

  	
   

  	
  Dept A 1130

  
	
   

  	
   

  	
  St. Paul, MN 55111

  

 

99

 

	
  STATE OF MINNESOTA

  	
  )

  
	
   

  	
  ) SS

  
	
  COUNTY OF DAKOTA

  	
  )

  

 

This instrument was acknowledged before me on
the 10th day of February, 2000, by James M. Greenwald as the authorized
representative of Northest Airlines, Inc.

 

	
  (Notary Seal)

  	
  /s/ Eunice Burnham

  	
   

  
	
   

  	
  Notary Public

  

 

 

	
  STATE OF MINNESOTA

  	
  )

  	
   

  
	
   

  	
   

  	
  )SS

  
	
  COUNTY OF HENNEPIN

  	
  )

  	
   

  

 

This instrument was acknowledged before me on
the 11th day of February, 

	
  2000, by

  	
  Gordy Wennerstrom the
  Director -

  	
  CMAA of the

  	
   

  
	
   

  	
                (Name)

  	
        (Title)

  

 

Metropolitan Airports Commission.

 

	
  (Notary Seal)

  	
  /s/ Rebecca A. Zwart

  	
   

  
	
   

  	
     Notary
  Public

  

 

100

 

Exhibit
A

[Map
- Airport Layout Plan]

 

 

Exhibit
B

[Map
- Airfield]

 

 

Exhibit
C

[Diagrams
- Terminal Building Plan]

 

 

Exhibit
D

[Maps
- Terminal Apron]

 

 

Exhibit
E

[Diagrams
- Terminal Building - Gold Concourse]

 

 

Exhibit
F

[Maps
- Landside Area]

 

 

 

EXHIBIT
G

1/1/99

 

OTHER
AREAS

 

Other Areas includes, but is not limited to,
the following MAC facilities:

 

•              West Terminal Area

•              Cargo Area

•              Other Roads (Non AOA and Non Terminal Area)

•              Hangars and Other Buildings (Includes any
other MAC facility not flowing to airline rates and charges)

 

1

 

EXHIBIT
H

1/1/99

 

INTERNATIONAL
REGULARLY SCHEDULED AIRLINE SERVICE CRITERIA

 

As operator of the HHH Terminal and the
Lindbergh Terminal IAF Facility, the MAC  must have reasonable and clear criteria to allocate international
charter flights to the HHH
Terminal AND international regularly scheduled flights to the Lindbergh Terminal IAF Facility. The principal
purpose of the Lindbergh Terminal IAF
Facility is to serve passengers making connections at MSP on a regularly scheduled
basis. In addition, Gates 1-9 of the Lindbergh Terminal will be utilized by Northwest regularly scheduled
flights providing domestic connecting service when not used by carriers providing international regularly
scheduled service. Therefore, in
making the determination of whether an international non-stop passenger flight to MSP is a
regularly scheduled flight or a charter operation for purposes of making terminal assignment, the MAC will supply
the following criteria:

 

1.             Does the international operation generally
have passengers connecting at MSP on-line, inter-line or via code share, and
the operational need for connecting facilities?

 

2.             Is the carrier a signatory under the MAC use
and lease agreement?

 

3.             Does the carrier hold all necessary government
approvals to operate international regularly scheduled service?

 

4.             Is the carrier’s international service
primarily scheduled on a year-round basis or does it primarily offer seasonal
service to different locations?

 

5.             Are the carrier’s schedules published each
month in the Official Airline Guide and displayed in computer reservation
systems? Are the fares regularly published by the Airline Tariff Publishing
Company?

 

6.             Does the carrier providing the service provide
reservation services and create PNRs for the flights with its own employees?

 

International operations that meet these
criteria overall shall be considered  international regularly scheduled flights for use of the Lindbergh IAF. However,the failure to meet any one or more
criteria shall not necessarily preclude the operation from being considered an international regularly scheduled
flight. MAC’s goal of optimizing
overall airport operating efficiency shall be an important consideration.

 

1

 

EXHIBIT I

 

2010 PLAN ESTIMATED PROJECT COSTS

METROPOLITAN AIRPORTS COMMISSION

(1998 DOLLARS IN THOUSANDS)

 

	
  PROGRAM

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  	
  TOTAL

  	
   

  
	
  Runway Deicing/Holding Pad Program

  	
   

  	
  $

  	
  49,500

  	
   

  	
  $

  	
  2,776

  	
   

  	
  $

  	
  77

  	
   

  	
  $

  	
  5,697

  	
   

  	
  $

  	
  58,050

  	
   

  
	
  Runway 17/35 Program

  	
   

  	
  454,550

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  108,850

  	
   

  	
  563,400

  	
   

  
	
  Runway 4/22 Development Program

  	
   

  	
  27,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  27,000

  	
   

  
	
  Noise Mitigation Program

  	
   

  	
  330,800

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  80,000

  	
   

  	
  410,800

  	
   

  
	
  Taxiway W Construction Program

  	
   

  	
  18,200

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  18,200

  	
   

  
	
  Taxiway C/D Complex Construction Program

  	
   

  	
  16,500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  16,500

  	
   

  
	
  Airfield Rehabilitation and Repair Program

  	
   

  	
  57,540

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  57,540

  	
   

  
	
  Runway Rehabilitation Program

  	
   

  	
  62,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  62,000

  	
   

  
	
  Environmental Remediation Program

  	
   

  	
  6,000

  	
   

  	
   

  	
   

  	
  500

  	
   

  	
  1,000

  	
   

  	
  7,500

  	
   

  
	
  Public Parking/Auto Rental Expansion
  Program

  	
   

  	
   

  	
   

  	
  880

  	
   

  	
  10,375

  	
   

  	
  177,595

  	
   

  	
  188,850

  	
   

  
	
  Green Concourse Extension Program

  	
   

  	
  6,064

  	
   

  	
  21,742

  	
   

  	
  180,682

  	
   

  	
  17,812

  	
   

  	
  226,300

  	
   

  
	
  Concourse Expansion &Rehabilitation Program

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6,500

  	
   

  	
   

  	
   

  	
  6,500

  	
   

  
	
  Lindbergh Terminal Rehab &Development
  Program

  	
   

  	
  1,064

  	
   

  	
   

  	
   

  	
  41,824

  	
   

  	
  3,822

  	
   

  	
  46,710

  	
   

  
	
  Humphrey Terminal Development Program

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  77,000

  	
   

  	
  77,000

  	
   

  
	
  Sun Country Hangar Program

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,150

  	
   

  	
  5,150

  	
   

  
	
  Landside Rehabilitation &Repair Program

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  37,882

  	
   

  	
  18,240

  	
   

  	
  56,122

  	
   

  
	
  Light Rail Transit Program

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  12,500

  	
   

  	
  57,500

  	
   

  	
  70,000

  	
   

  
	
  Reliever Airport Program

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  132,400

  	
   

  	
  132,400

  	
   

  
	
  Reliever Airports Utility Extension Program

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  11,200

  	
   

  	
  11,200

  	
   

  
	
  Miscellaneous Field &Runway

  	
   

  	
  10,500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  650

  	
   

  	
  11,150

  	
   

  
	
  Miscellaneous Landside Program

  	
   

  	
  23,400

  	
   

  	
  7,510

  	
   

  	
  14,835

  	
   

  	
  87,455

  	
   

  	
  133,200

  	
   

  
	
  TOTAL OF ALL PROGRAMS

  	
   

  	
  $

  	
  1,063,118

  	
   

  	
  $

  	
  32,908

  	
   

  	
  $

  	
  305,175

  	
   

  	
  $

  	
  784,371

  	
   

  	
  $

  	
  2,185,572

  	
   

  

 

1

 

PROJECTS COMPRISING THE 2010 PLAN

METROPOLITAN AIRPORTS COMMISSION

 

RUNWAY DEICING/HOLDING PAD PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of projects to construct deicing/holding pads adjoining the
ends of Runways 12L, 12R, 30L, and 30R.

 

Projects
which are required for the construction of the Runway 12L pad, include the
following:

 

•              Demolition of Hangars 1 and 2

 

•              Snow Removal Equipment Storage Building
Addition

 

•              Maintenance Fueling System

 

•              Deicing Operations Center

 

Projects
which are required for the construction of the Runway 12R pad, include the
following:

 

•              Building Demolition

 

•              Taxiway B Construction

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the Estimated Project Schedules, Estimated Project Costs
and Cost Centers for the projects listed above.

 

	
   

  	
   

  	
  ESTIMATED PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
   

  	
   

  	
  COST CENTER

  	
   

  	
   

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Runway 12L Pad

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  $

  	
  11,500,000

  	
   

  	
  $

  	
  11,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hangars 1 &2
  Demolition

  	
   

  	
  1997

  	
   

  	
  1998

  	
   

  	
  700,000

  	
   

  	
  700,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Snow Removal
  Equipment Storage Bldg Addn.

  	
   

  	
  1997

  	
   

  	
  1998

  	
   

  	
  4,750,000

  	
   

  	
  2,375,000

  	
   

  	
  $

  	
  1,710,000

  	
   

  	
  $

  	
  47,500

  	
   

  	
  $

  	
  617,500

  	
   

  
	
  Maintenance
  Fueling Facility

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  700,000

  	
   

  	
  350,000

  	
   

  	
  252,000

  	
   

  	
  7,000

  	
   

  	
  91,000

  	
   

  
	
  Maintenance
  Campus Site Work

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  1,850,000

  	
   

  	
  925,000

  	
   

  	
  666,000

  	
   

  	
  18,500

  	
   

  	
  240,500

  	
   

  
	
  Deicing
  Operations Center

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  4,550,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,550,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  24,050,000

  	
   

  	
  $

  	
  15,850,000

  	
   

  	
  $

  	
  2,628,000

  	
   

  	
  $

  	
  73,000

  	
   

  	
  $

  	
  5,499,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Runway 12R Pad

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  $

  	
  15,900,000

  	
   

  	
  15,900,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Buildings
  Demolition

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  1,000,000

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Taxiway B

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  2,100,000

  	
   

  	
  2,100,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  19,000,000

  	
   

  	
  $

  	
  19,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Runway 30R Pad

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  $

  	
  9,000,000

  	
   

  	
  $

  	
  9,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Runway 30L Pad -
  Temporary

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  $

  	
  3,500,000

  	
   

  	
  $

  	
  3,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  55,550,000

  	
   

  	
  $

  	
  47,350,000

  	
   

  	
  $

  	
  2,628,000

  	
   

  	
  $

  	
  73,000

  	
   

  	
  $

  	
  5,499,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,500,000

  	
   

  	
  $

  	
  2,150,000

  	
   

  	
  $

  	
  148,000

  	
   

  	
  $

  	
  4,000

  	
   

  	
  $

  	
  198,000

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  58,050,000

  	
   

  	
  $

  	
  49,500,000

  	
   

  	
  $

  	
  2,776,000

  	
   

  	
  $

  	
  77,000

  	
   

  	
  $

  	
  5,697,000

  	
   

  

 

2

 

RUNWAY
17/35 CONSTRUCTION PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of projects required to construct a new 8,000-foot by 150 foot
concrete runway and associated roadways, taxiways, and appurtenances as shown
on the attached graphic and summarized as follows:

 

•              Site Preparation and Utility Installation -
Based on preliminary graphics and discussions with HNTB, this project is split
50% Field and Runway and 50% Other. Other includes both MAC and Tenant
facilities.

 

•              Demolition On and Off Airport - 100% Field and
Runway

 

•              Runway, Taxiways, Taxilanes and Connectors -
Based on graphics from HNTB and discussions with Airport Development the split
is as follows;

•              West Side Taxiway - Common Use charged to all
west side tenants proportionately (2A)

•              West Side Connectors - Common Use charged to
all west side tenants proportionately (2B0

•              Runway - 100% Field and Runway (2C)

•              East Side Taxiway - 100% Field and Runway (2D)

•              East Side Connectors - 100% Field and Runway
(2D)

•              Deicing Pad - 100% Field and Runway (2E)

•              Taxiway and Connectors through Midfield - 2/3
Midfield allocated proportionately to tenants and 1/3 Field and Runway (2F)

 

•              Infield Roadways and Service Roads - 2/3
allocated proportionately to tenants and 1/3 Field and Runway

 

•              Aircraft Apron Areas - allocated to the
specific tenant

 

•              Airside Service Roads and ARFF Roads - 100%
Field and Runway

 

•              Landside Roadways and 24th Ave. Bridge -
allocated 1/2 Field and Runway and 1/2 MAC Roads

 

•              Runway 17/35 and 4/22 Roadway Tunnels - Based
on 9/23 letter from HNTB, $3,100,000 would be charged to Midfield Tenants which
is the cost of an at-grade roadway to their facilities. The remaining
$61,200,000 is proposed to be Field and Runway

 

•              Taxiways Z and Y Bridges - 100% Field and
Runway

 

•              66th Street/TH 77 Interchange - 100% Other (
MAC Roads)

 

•              Fueling Facilities - a portion (less than 50%)
will be Field and Runway with the balance to be charged to Other Tenants

 

•              NAVAIDS including ILS, RTR,VORTAC, and ALS -
100% Field and Runway

 

•              Tenant Lease Extinguishment - 100% Field and
Runway

 

•              Deicing Agent Processing Facility - 100% Field
and Runway

 

•              Airfield Electric Distribution Center - 100%
Field and Runway

 

•              Airfield Materials and Equipment Storage
Facilities - allocated based on the percentages identified in the new Airline
Agreement (50% Field and Runway, 36% Ramp, 2% Parking, 2% Public Roads, 4%
Cargo Area, 4% Other Public Roads, 1% Terminal and 1% HHH Terminal

 

3

 

•              Property Acquisition - 100% Field and Runway

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the Estimated Project Schedules, Estimated Project Costs
and Cost Centers for the project elements listed above.

 

	
   

  	
   

  	
  ESTIMATED PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
   

  	
   

  	
  COST CENTER

  	
   

  	
   

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
  Site Preparation
  and Utility Installation

  	
   

  	
  1998

  	
   

  	
  2004

  	
   

  	
  $

  	
  58,000,000

  	
   

  	
  $

  	
  29,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  29,000,000

  	
   

  
	
  Demolition On and
  Off Airport

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  18,200,000

  	
   

  	
  18,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Runways,
  Taxiways, Taxilanes, and Connectors

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  41,000,000

  	
   

  	
  19,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  21,500,000

  	
   

  
	
  Infield Roads and
  Service Roads

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  4,800,000

  	
   

  	
  1,600,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,200,000

  	
   

  
	
  Aircraft Apron
  Areas

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  21,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  21,000,000

  	
   

  
	
  Airside Service
  Roads and ARFF Roads

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  3,700,000

  	
   

  	
  3,700,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Landside Roadways
  and 24th Ave. Bridge

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  12,900,000

  	
   

  	
  6,450,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6,450,000

  	
   

  
	
  Runways 17/35 and
  4/22 Roadway Tunnels

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  69,900,000

  	
   

  	
  66,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,400,000

  	
   

  
	
  Taxiways Z and Y
  Bridges

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  26,800,000

  	
   

  	
  26,800,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  66th Street/TH 77
  Interchange

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  10,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10,500,000

  	
   

  
	
  Fueling Facilities

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  3,800,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,800,000

  	
   

  
	
  NAVAIDS including
  ILS, RTR, VORTAC, ALS

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  2,700,000

  	
   

  	
  2,700,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tenant Lease
  Extinguishment

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  35,000,000

  	
   

  	
  35,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deicing Agent
  Processing Facility

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  4,300,000

  	
   

  	
  4,300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Airfield Electric
  Distribution Center

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  5,400,000

  	
   

  	
  5,400,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Airfield Material
  &Equipment Storage Facilities

  	
   

  	
  1999

  	
   

  	
  2004

  	
   

  	
  5,400,000

  	
   

  	
  5,400,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property
  Acquisition

  	
   

  	
  1998

  	
   

  	
  2004

  	
   

  	
  190,000,000

  	
   

  	
  190,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  513,400,000

  	
   

  	
  $

  	
  414,550,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  98,850,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  563,400,000

  	
   

  	
  $

  	
  454,550,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  108,850,000

  	
   

  

 

4

 

RUNWAY 4/22 DEVELOPMENT PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of projects required for the reconstruction of the northeast
2000 feet of Runway 22 and the construction of a 1,000-foot extension to Runway
4/22 and includes the following projects:

 

•              Runway 12R/30L Temporary Extension

 

•              Runway 4/22 Reconstruction

 

•              Runway 4/22 Road Relocation

 

•              Runway 4/22 Extension

 

•              North Side Storm Sewer

 

•              Property Acquisition

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the Estimated Project Schedules, Estimated Project Costs
and Cost Centers for the projects listed above.

 

	
   

  	
   

  	
  ESTIMATED PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
   

  	
   

  	
  COST CENTER

  	
   

  	
   

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
  Runway 12R/30L Temporary Extension

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  $

  	
  3,500,000

  	
   

  	
  $

  	
  3,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Runway 4/22 Reconstruction

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  8,500,000

  	
   

  	
  8,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Runway 22 Road Relocation

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  1,000,000

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Runway 4/22 Extension

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  5,000,000

  	
   

  	
  5,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  North Side Storm Sewer

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  2,500,000

  	
   

  	
  2,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property Acquisition

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,000,000

  	
   

  	
  5,000,0000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  25,500,000

  	
   

  	
  $

  	
  25,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,500,000

  	
   

  	
  $

  	
  1,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  27,000,000

  	
   

  	
  $

  	
  27,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5

 

NOISE MITIGATION PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of projects to insulate houses and schools within the DNL 65
and 1996 DNL 60 contours, to acquire property in New Ford Town and Rich Acres subdivisions
in Richfield, and to remediate problems associated with indoor air quality in
homes which were previously insulated. Projects in this program include the
following:

 

•              Home Insulation

•              New Ford Town/Rich Acres Acquisition

•              School Noise Abatement

•              Runway 4/22 Noise Mitigation

•              Remediation of Past Homes

•              Remote Monitoring Unit Installations

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the Estimated Project Costs, Estimated Project Costs and
Cost Centers for the projects listed above.

 

	
   

  	
   

  	
  ESTIMATED PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
   

  	
   

  	
  COST CENTER

  	
   

  	
   

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Home Insulation
  (Inside 65 DNL) *

  	
   

  	
  1998

  	
   

  	
  2003

  	
   

  	
  $

  	
  129,100,000 

  	
   

  	
  $

  	
  129,100,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Home Insulation
  (Between 60 and 65 DNL)**

  	
   

  	
  2003

  	
   

  	
  2010

  	
   

  	
  150,000,000

  	
   

  	
  70,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  80,000,000

  	
   

  
	
  New Ford Town
  Rich Acres Acquisition

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  3,500,000

  	
   

  	
  3,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  School Noise
  Abatement

  	
   

  	
  1998

  	
   

  	
  2002

  	
   

  	
  33,000,000

  	
   

  	
  33,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Runway 4/22 Noise
  Mitigation

  	
   

  	
  2000

  	
   

  	
  2005

  	
   

  	
  38,000,000

  	
   

  	
  38,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Remediation of
  Past Homes

  	
   

  	
  1998

  	
   

  	
  2002

  	
   

  	
  6,300,000

  	
   

  	
  6,300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Remote Monitoring
  Unit Installations

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  900,000

  	
   

  	
  900,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  360,800,000 

  	
   

  	
  $

  	
  280,800,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  80,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  410,800,000 

  	
   

  	
  $

  	
  330,800,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  80,000,000

  	
   

  

 

*      For 1998, assumes 910 homes @ $28,000 per home

For
1999 through 2003, assumes 2,795 homes @ $37,100 per home

 

**   For 2003 through 2010, assumes 4043 homes @ $37,100 per home

 

6

 

TAXIWAY W CONSTRUCTION PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of the construction of an approximately 9,050-feet long parallel
taxiway for Runway 12R/30L in three phases.

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the Estimated Project Schedules, Estimated Project Costs
and Cost Center for the projects described above.

 

	
   

  	
   

  	
  ESTIMATED PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
   

  	
   

  	
  COST CENTER

  	
   

  	
   

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
  Taxiway W Segment
  1

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  $

  	
  5,200,000

  	
   

  	
  $

  	
  5,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Taxiway W Segment 2

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  5,500,000

  	
   

  	
  5,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Taxiway W Segment 3

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  7,500,000

  	
   

  	
  7,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  18,200,000

  	
   

  	
  $

  	
  18,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  18,200,000

  	
   

  	
  $

  	
  18,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

7

 

TAXIWAY C/D COMPLEX CONSTRUCTION PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of the realignment and reconstruction of Taxiways Charlie and
Delta in phases to allow unrestricted two-way taxiing of Group V aircraft on both
taxiways.

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the Estimated Project Schedules, Estimated Project Costs
and Cost Center for the projects listed above.

 

	
   

  	
   

  	
  ESTIMATED PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
   

  	
   

  	
  COST CENTER

  	
   

  	
   

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
  C/D Complex-Phase 1

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  $

  	
  8,000,000

  	
   

  	
  $

  	
  8,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C/D Complex-Phase 2

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  8,000,000

  	
   

  	
  8,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  16,000,000

  	
   

  	
  $

  	
  16,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  	
  $

  	
  500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  16,500,000

  	
   

  	
  $

  	
  16,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

8

 

AIRFIELD REHABILITATION AND REPAIR PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of projects undertaken on a yearly basis to repair and maintain
the facilities on the airfield. These projects include the following:

 

•              Airside Bituminous Rehabilitation - $475,000
per year

•              Pavement Rehabilitation - Aprons/Taxiways -
$2,850,000 per year

•              Pavement Joint Sealing - $475,000 per year

•              Miscellaneous projects within the airside -
$380,000 per year

•              Taxiway A/H Reconstruction

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the total Estimated Costs to be incurred for the
projects listed above as well as their Cost Centers.

 

	
   

  	
   

  	
  ESTIMATED PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
   

  	
   

  	
  COST CENTER

  	
   

  	
   

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
  Airside
  Bituminous

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  $

  	
  6,175,000

  	
   

  	
  $

  	
  6,175,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pavement Joint Sealing

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  6,175,000

  	
   

  	
  6,175,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pavement Rehabilitation-Aprons/Taxi-way

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  37,050,000

  	
   

  	
  37,050,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Miscellaneous

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  4,940,000

  	
   

  	
  4,940,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Taxiway A/H Reconstruction

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  3,200,000

  	
   

  	
  3,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  57,540,000

  	
   

  	
  $

  	
  57,540,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  57,540,000

  	
   

  	
  $

  	
  57,540,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

9

 

RUNWAY REHABILITATION PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of projects to rehabilitate/reconstruct Runways 12R/30L and
12L/30R. Projects to be completed under this program include the following:

 

•              Reconstruct Runway 12R/30L - Segment 1

•              Reconstruct Runway 12R/30L - Segment 3

•              Rehabilitate Runway 12R/30L - Segment 2

•              Reconstruct Runway 12R/30L - Segment 2

•              Rehabilitate Runway 12L/30R - Segment 2

•              Reconstruct Runway 12L/30R - Segment 2

•              Runway 30L Safety Area Improvements

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the Estimated Project Schedules, Estimated Project Costs
and Cost Centers for the projects listed above.

 

 

	
   

  	
   

  	
  ESTIMATED PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
   

  	
   

  	
  COST CENTER

  	
   

  	
   

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reconstruct
  Runway 12R/30L-Segment 1

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reconstruct Runway 12R/30L-Segment 3

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  16,000,000

  	
   

  	
  16,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rehabilitate Runway 12R/30L-Segment 2

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  1,300,000

  	
   

  	
  1,300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reconstruct Runway 12R/30L-Segment 2

  	
   

  	
  2004

  	
   

  	
  2004

  	
   

  	
  10,200,000

  	
   

  	
  10,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rehabilitate Runway 12L/30R-Segment 2

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  800,000

  	
   

  	
  800,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reconstruct Runway 12L/30R-Segment 2

  	
   

  	
  2005

  	
   

  	
  2005

  	
   

  	
  14,000,000

  	
   

  	
  14,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Runway 30L Safety Area Improvements

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  3,700,000

  	
   

  	
  3,700,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  61,000,000

  	
   

  	
  $

  	
  61,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  62,000,000

  	
   

  	
  $

  	
  62,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

10

 

ENVIRONMENTAL REMEDIATION PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of projects to remove/upgrade MAC owned underground storage
tanks and to provide storm water detention facilities of adequate size to
handle the drainage from new pavement areas.

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the tables below are the Estimated Project Schedules, Estimated Project
Costs and Cost Centers for the projects listed above.

 

	
   

  	
   

  	
  ESTIMATED PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
   

  	
   

  	
  COST CENTER

  	
   

  	
   

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
  UST Removals/Upgrades

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  $

  	
  500,000

  	
   

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
  Storm Water Detention
  Ponds

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  5,500,000

  	
   

  	
  5,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  7,500,000

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM
  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  7,500,000

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  	
  $

  	
  1,000,000

  	
   

  

 

11

 

PUBLIC PARKING/AUTO RENTAL EXPANSION PROGRAM

 

PROGRAM
SCOPE

 

This
project consists of the construction of two nine level parking structures and
two new entrance and two new exit helicies and a quick turn-around (QTA) facility
on the ground level for the auto rental companies. Other projects, which are
required for the operation of the parking structure includes the following:

 

•              Automated People Mover

•              Parking Management Building

•              Roadway relocations related to ingress and
egress from the new parking facilities

•              Revenue Control System

•              NWA Replacement Parking for those spaces lost
to the exit plaza

•              Northwest Drive Improvements

•              Temporary Auto Rental Service Site Development

•              Temporary Regional Apron 

•              Miscellaneous Projects including a security system,
helix enclosures, snowmelters, maintenance gates at the helices, a maintenance
building and directional signage.

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the Estimated Project Schedules, Estimated Project Costs
and Cost Centers for the projects listed above.

 

	
   

  	
   

  	
  ESTIMATED PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
   

  	
   

  	
  COST CENTER

  	
   

  	
   

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
  Parking/Auto
  Rental Structure

  	
   

  	
  1998

  	
   

  	
  2000

  	
   

  	
  $

  	
  95,900,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  95,900,000

  	
   

  
	
  Automated People
  Mover

  	
   

  	
  1998

  	
   

  	
  2000

  	
   

  	
  26,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  8,580,000

  	
   

  	
  17,420,000

  	
   

  
	
  Parking
  Management Building

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  3,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,500,000

  	
   

  
	
  Roadway
  Relocations

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  27,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  27,000,000

  	
   

  
	
  Revenue Control
  System

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  6,600,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6,600,000

  	
   

  
	
  NWA Replacement
  Parking

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  9,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9,000,000

  	
   

  
	
  Northwest Drive
  Improvements

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  3,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,500,000

  	
   

  
	
  Temp. Auto Rental
  Service Site Development

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,000,000

  	
   

  
	
  Temporary
  Regional Apron

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  850,000

  	
   

  	
   

  	
   

  	
  $

  	
  850,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Miscellaneous
  Projects

  	
   

  	
  1998

  	
   

  	
  2001

  	
   

  	
  6,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6,000,000

  	
   

  
	
  Transit Center

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  2,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,000,000

  	
   

  	
  1,000,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  181,350,000

  	
   

  	
   

  	
   

  	
  $

  	
  850,000

  	
   

  	
  $

  	
  9,580,000 

  	
   

  	
  $

  	
  170,920,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  7,500,000

  	
   

  	
   

  	
   

  	
  $

  	
  30,000

  	
   

  	
  $

  	
  795,000

  	
   

  	
  $

  	
  6,675,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  188,850,000

  	
   

  	
   

  	
   

  	
  $

  	
  880,000

  	
   

  	
  $

  	
  10,375,000 

  	
   

  	
  $

  	
  177,595,000

  	
   

  

 

12

 

GREEN
CONCOURSE EXTENSION PROGRAM

 

PROGRAM SCOPE

 

This project consists of the extension of the
Green Concourse by the construction of 12 new gates and a new Regional Terminal
Facility with 30 parking positions. The relocation of the inbound roadway
required by the alignment of the Green Concourse extension is also part of this
project. Other projects which are required for the extension of the Green
Concourse include the following:

 

•              Post Office Relocation

•              Green/Gold Connector Bag Belt

•              Green/Gold Connector Ticket Counter/Bag Check

•              Green Concourse Apron Expansion

•              Green Concourse Temporary Regional Apron

•              Green/Gold Connector

•              Green Concourse APM

•              Fuel Hydrant Loop Extension

 

ESTIMATED PROJECT SCHEDULES/COSTS

 

Summarized in the table below are the
Estimated Project Schedules, Estimated Project Costs and Cost Centers for the
projects listed above.

 

	
   

  	
   

  	
  ESTIMATED
  PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Green Concourse
  Expansion-Phase 1

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  $

  	
  40,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  40,500,000

  	
   

  	
   

  	
   

  
	
  Green Concourse
  Expansion-Phase 2

  	
   

  	
  2000

  	
   

  	
  2002

  	
   

  	
  71,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  71,000,000

  	
   

  	
   

  	
   

  
	
  Post Office
  Relocation

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  17,000,000

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   $11,000,000

  	
   

  
	
  Green/Gold
  Connector Bag Belt

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  5,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,000,000

  	
   

  	
   

  	
   

  
	
  Green/Gold
  Connector Ticket Ctr/Bag Check

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  2,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,000,000

  	
   

  	
   

  	
   

  
	
  Green Concourse
  Apron Expansion

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  16,000,000

  	
   

  	
   

  	
   

  	
  $

  	
  16,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Green Concourse
  Temporary Regional Apron

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  5,000,000

  	
   

  	
   

  	
   

  	
  5,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Green/Gold
  Connector

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  20,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20,000,000

  	
   

  	
   

  	
   

  
	
  Green Concourse
  APM

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  36,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  36,000,000

  	
   

  	
   

  	
   

  
	
  Fuel Hydrant Loop
  Extension

  	
   

  	
  1998

  	
   

  	
  2004

  	
   

  	
  6,300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6,300,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  218,800,000

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  $

  	
  21,000,000

  	
   

  	
  $

  	
  174,500,000

  	
   

  	
  $

  	
  17,300,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  7,500,000

  	
   

  	
  $

  	
  64,000

  	
   

  	
  $

  	
  742,000

  	
   

  	
  $

  	
  6,182,000

  	
   

  	
  $

  	
  512,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  226,300,000

  	
   

  	
  $

  	
  6,064,000

  	
   

  	
  $

  	
  21,742,000

  	
   

  	
  $

  	
  180,682,000

  	
   

  	
  $

  	
  17,812,000

  	
   

  

 

13

 

CONCOURSE EXPANSION AND REHABILITATION PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of projects to in fill areas on the Blue and Red Concourses as
follows:

 

Blue
Concourse             10,240 square feet

 

Red
Concourse              13,000 square feet

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the Estimated Project Schedules, Estimated Project Costs
and Cost Centers for the projects listed above.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ESTIMATED

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ESTIMATED
  PROJECT

  	
   

  	
  PROJECT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SCHEDULE

  	
   

  	
  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Blue Concourse
  Infill Phase-1

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  $

  	
  2,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,500,000

  	
   

  	
   

  	
   

  
	
  Red Concourse
  Infill Phase-1

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  3,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,000,000

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,500,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  6,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  6,500,000

  	
   

  	
   

  	
   

  

 

14

 

LINDBERGH TERMINAL REHABILITATION AND
DEVELOPMENT PROGRAM

 

PROGRAM
SCOPE

 

This
program consists of projects to upgrade and expand the Lindbergh Terminal complex
and includes the following projects:

 

	
  •

  	
   

  	
  Terminal Carpet Replacement

  	
   

  	
  Computer Lab Expansion

  
	
  •

  	
   

  	
  Terminal Curtainwall Security Enhancements

  	
   

  	
  West Mezzanine Finishes

  
	
  •

  	
   

  	
  Terminal Elevator Addition/Modifications

  	
   

  	
  North Terminal Addition

  
	
  •

  	
   

  	
  Energy Management Center Boiler Replacements

  	
   

  	
  Tug Drive Door Replacement

  
	
  •

  	
   

  	
  Commercial Roadway Bag Belt/Sortation Facility

  	
   

  	
  Tug Drive Floor Replacement

  
	
  •

  	
   

  	
  Informational/Directional Signage

  	
   

  	
  Chiller Addition

  
	
  •

  	
   

  	
  International Arrivals Facility Upgrade

  	
   

  	
  Cooling Towers Installation

  
	
  •

  	
   

  	
  Lindbergh Terminal Bag Make-up Addition

  	
   

  	
  Security Camera Installation

  
	
  •

  	
   

  	
  Loading Dock Relocation

  	
   

  	
  Conference Center

  
	
  •

  	
   

  	
  Rubber Flooring Replacement

  	
   

  	
  Business Service Center Development

  
	
  •

  	
   

  	
  Terminal Toilet Additions

  	
   

  	
  Jetway Door Reconstruction

  
	
  •

  	
   

  	
  P. A. System Replacement

  	
   

  	
   

  
	
  •

  	
   

  	
  Police Department Modifications

  	
   

  	
   

  

 

ESTIMATED
PROJECT SCHEDULES/COSTS

 

Summarized
in the table below are the Estimated Project Schedules, Estimated Project Costs
and Cost Centers for the projects listed above.

 

	
   

  	
   

  	
  ESTIMATED
  PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal Carpet
  Replacement

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  $

  	
  1,730,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,730,000

  	
   

  	
   

  	
   

  
	
  Terminal
  Curtainwall Security Enhancements

  	
   

  	
  2000

  	
   

  	
  2000

  	
   

  	
  550,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  550,000

  	
   

  	
   

  	
   

  
	
  Terminal
  Elevator/Escalator Modifications

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  600,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  600,000

  	
   

  	
   

  	
   

  
	
  Energy Management
  Center Boiler Replacements

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  4,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,500,000

  	
   

  	
   

  	
   

  
	
  Commercial
  Roadway Bag Belt /Sortation Facility

  	
   

  	
  2000

  	
   

  	
  2000

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  
	
  Informational/Directional
  Signage

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  1,250,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,250,000

  	
   

  	
   

  	
   

  
	
  International
  Arrivals Facility Upgrade

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  2,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  Lindbergh
  Terminal Bag Make-up Addition

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  2,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,000,000

  	
   

  	
   

  	
   

  
	
  Loading Dock
  Relocation

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  
	
  Rubber Flooring
  Replacement

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  750,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  750,000

  	
   

  	
   

  	
   

  
	
  Terminal Toilet
  Additions

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  1,100,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,100,000

  	
   

  	
   

  	
   

  
	
  PA System
  Replacement

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  4,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,000,000

  	
   

  	
   

  	
   

  
	
  Police Department
  Modifications

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  160,000

  	
   

  	
  $

  	
  32,000

  	
   

  	
   

  	
   

  	
  17,000

  	
   

  	
  111,000

  	
   

  
	
  Computer Lab
  Expansion

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  160,000

  	
   

  	
  32,000

  	
   

  	
   

  	
   

  	
  17,000

  	
   

  	
  111,000

  	
   

  
	
  West Mezzanine
  Finishes

  	
   

  	
  2000

  	
   

  	
  2000

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  
	
  North Terminal
  Addition

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  12,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  12,000,000

  	
   

  	
   

  	
   

  
	
  Tug Drive Door
  Replacement

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  60,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  60,000

  	
   

  	
   

  	
   

  
	
  Tug Drive Floor
  Replacement

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  700,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  700,000

  	
   

  	
   

  	
   

  
	
  Chiller Addition

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  4,450,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,450,000

  	
   

  	
   

  	
   

  
	
  Cooling Towers
  Installation

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  5,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,000,000

  	
   

  	
   

  	
   

  
	
  Security Camera
  Installation

  	
   

  	
  1998

  	
   

  	
  2000

  	
   

  	
  1,000,000

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conference Center

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  850,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  850,000

  	
   

  
	
  Business Service
  Centers Development

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  250,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  250,000

  	
   

  
	
  Jetway Door
  Reconstruction

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  100,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100,000

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  46,710,000

  	
   

  	
  $

  	
  1,064,000

  	
   

  	
   

  	
   

  	
  $

  	
  41,824,000

  	
   

  	
  $

  	
  3,822,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  46,710,000

  	
   

  	
  $

  	
  1,064,000

  	
   

  	
   

  	
   

  	
  $

  	
  41,824,000

  	
   

  	
  $

  	
  3,822,000

  	
   

  

 

15

 

HUMPHREY
TERMINAL DEVELOPMENT PROGRAM

 

PROGRAM SCOPE

 

This project consists of the construction of a
replacement terminal for the existing Humphrey Terminal to provide gates for 8
narrow body/4 wide body aircraft. Projects to be constructed which are
incidental to this project include the following:

 

•              Construction of two 250,000 gallon above
ground storage tanks and trickle fill line.

•              Ground Service Equipment storage/maintenance
facility.

•              Parking Facility

•              Hydrant Fueling System

•              Ground Power

•              Airline Lease Space Shell

•              Concessions Shell

 

ESTIMATED PROJECT SCHEDULES/COSTS

 

Summarized in the table below are the
Estimated Project Schedules, Estimated Project Costs and Cost Centers for the
projects listed above.

 

	
   

  	
   

  	
  ESTIMATED
  PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal
  Development

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  $

  	
  53,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  53,000,000

  	
   

  
	
  Fuel Storage
  Tanks and Pipeline

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  9,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9,000,000

  	
   

  
	
  GSE Storage/Maintenance
  Facility

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  3,700,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,700,000

  	
   

  
	
  Short Term
  Parking Facility

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  2,100,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,100,000

  	
   

  
	
  Hydrant Fueling System

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  600,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  600,000

  	
   

  
	
  Ground Power

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  600,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  600,000

  	
   

  
	
  Airline Lease
  Space

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  600,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  600,000

  	
   

  
	
  Concessions
  Fit-Up

  	
   

  	
  1999

  	
   

  	
  2001

  	
   

  	
  2,400,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,400,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  72,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  72,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  77,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  77,000,000

  	
   

  

 

16

 

SUN
COUNTRY HANGAR DEVELOPMENT PROGRAM

 

PROGRAM SCOPE

 

This program consists of the construction of a
new hangar and apron for Sun Country Airlines.

 

ESTIMATED PROJECT SCHEDULES/COSTS

 

Summarized in the table below are the
Estimated Project Schedules, Estimated Project Costs and Cost Center for the
projects listed above.

 

	
   

  	
   

  	
  ESTIMATED
  PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hangar

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  $

  	
  4,050,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  4,050,000

  	
   

  
	
  Apron

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,000,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,050,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,050,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  100,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  100,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,150,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,150,000

  	
   

  

 

17

 

LANDSIDE
REHABILITATION AND REPAIR PROGRAM

 

PROGRAM SCOPE

 

This program consists of yearly projects to
repair, maintain and improve the facilities in the terminal and on the
landside. These will projects be defined in the year(s) prior to
implementation. Project categories include the following:

 

•              Landside Bituminous Construction

•              Parking Structure Rehabilitation

•              Lindbergh Terminal Interior Rehabilitation

•              Terminal Exterior Rehabilitation

•              Terminal Complex Sprinkler Modifications

•              Terminal Electrical Modifications

•              Terminal Mechanical Modifications

•              Terminal Miscellaneous Projects

•              West Terminal Rehabilitation

 

ESTIMATED PROJECT SCHEDULES/COSTS

 

Summarized in the table below are the
Estimated Project Schedules, Estimated Project Costs and Cost Centers for the
projects listed above.

 

	
   

  	
   

  	
  ESTIMATED
  PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Landside
  Bituminous Construction

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  $

  	
  4,940,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  4,940,000

  	
   

  
	
  Parking Structure
  Rehabilitation

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  11,875,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  11,875,000

  	
   

  
	
  Lindbergh
  Terminal Interior Rehabilitation

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  19,665,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  19,665,000

  	
   

  	
   

  	
   

  
	
  Terminal Exterior
  Rehabilitation

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  6,650,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6,650,000

  	
   

  	
   

  	
   

  
	
  Terminal Complex
  Sprinkler Modifications

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  1,330,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,330,000

  	
   

  	
   

  	
   

  
	
  Terminal
  Electrical Mods

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  1,401,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,401,000

  	
   

  	
   

  	
   

  
	
  Terminal
  Mechanical Mods

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  5,748,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,748,000

  	
   

  	
   

  	
   

  
	
  Terminal Miscellaneous

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  3,088,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,088,000

  	
   

  	
   

  	
   

  
	
  West Terminal
  Rehabilitation

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  1,425,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,425,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  56,122,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  37,882,000

  	
   

  	
  $

  	
  18,240,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  56,122,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  37,882,000

  	
   

  	
  $

  	
  18,240,000

  	
   

  

 

18

 

LIGHT
RAIL TRANSIT PROGRAM

 

PROGRAM SCOPE

 

This program consists of projects to be
implemented at Wold Chamberlain Field.  These
projects generally consist of the following:

 

•              Lindbergh Terminal Light Rail Transit Station

•              Hubert H. Humphrey Light Rail Transit Station

•              Other Eligible Program Elements

 

ESTIMATED PROJECT SCHEDULES/COSTS

 

Summarized in the table below are the
Estimated Project Costs for each project.

 

	
   

  	
   

  	
  ESTIMATED
  PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lindbergh
  Terminal LRT Station

  	
   

  	
  1999

  	
   

  	
  2003

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  12,500,000

  	
   

  	
  $

  	
  12,500,000

  	
   

  
	
  Hubert H.
  Humphrey LRT Station

  	
   

  	
  1999

  	
   

  	
  2003

  	
   

  	
  2,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  Other Eligible
  Program Elements

  	
   

  	
  1999

  	
   

  	
  2003

  	
   

  	
  43,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  43,000,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  70,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  57,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  70,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  12,500,000

  	
   

  	
  $

  	
  57,500,000

  	
   

  

 

19

 

RELIEVER
AIRPORTS PROGRAM

 

PROGRAM SCOPE

 

This program consists of projects to be
implemented at MAC’s six reliever airports. These projects generally consist of
land acquisition for runway protection, rehabilitation of existing airfield
pavements, construction of new runways, taxi-ways, aprons and construction
/expansion of areas for the construction of new hangars.

 

ESTIMATED PROJECT SCHEDULES/COSTS

 

Summarized in the table below are the
Estimated Project Costs for each reliever airport from 1998 to 2010.

 

	
   

  	
   

  	
  ESTIMATED
  PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  St. Paul-Downtown
  Airport

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  $

  	
  19,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  19,000,000

  	
   

  
	
  Flying Cloud Airport

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  61,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  61,000,000

  	
   

  
	
  Crystal Airport

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  3,100,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,100,000

  	
   

  
	
  Anoka
  County-Blaine Airport

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  23,7000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  23,700,000

  	
   

  
	
  Lake Elmo Airport

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  8,100,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8,100,000

  	
   

  
	
  Airlake Airport

  	
   

  	
  1998

  	
   

  	
  2010

  	
   

  	
  12,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  12,500,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  127,400,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  127,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  132,400,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  132,400,000

  	
   

  

 

20

 

RELIEVER
AIRPORTS UTILITY EXTENSION PROGRAM

 

PROGRAM SCOPE

 

This program consists of projects to extend
municipal utilities consisting of sanitary sewer and water main to its system
of reliever airports.

 

ESTIMATED PROJECT SCHEDULES/COSTS

 

Summarized in the table below are the
Estimated Project Schedules, Estimated Project Costs and Cost Centers for the
Utility Extension projects at each of the reliever airports.

 

	
   

  	
   

  	
  ESTIMATED
  PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  St. Paul-Downtown Airport

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  $

  	
  300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  300,000

  	
   

  
	
  Flying Cloud Airport

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  4,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,500,000

  	
   

  
	
  Crystal Airport

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  1,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,200,000

  	
   

  
	
  Anoka County-Blaine Airport

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  1,800,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,800,000

  	
   

  
	
  Airlake Airport

  	
   

  	
  2000

  	
   

  	
  2000

  	
   

  	
  400,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  400,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  8,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  8,200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  3,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  3,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  11,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  11,200,000

  	
   

  

 

21

 

MISCELLANEOUS
FIELD AND RUNWAY PROGRAM

 

PROGRAM SCOPE

 

This program consists of the construction of
miscellaneous projects associated with the airfield. Projects to be constructed
include the following:

 

•              Run-up Pad Blast Fence Modifications

•              Electrical System Computerization

•              Security Fence/Gates Replacement

•              Tunnel Structure Rehabilitation

•              Apron Lighting Upgrades

•              Remote Satellite Antennas Relocation

•              Miscellaneous Airside Projects

•              Utility Reconstruction

 

ESTIMATED PROJECT SCHEDULES/COSTS

 

Summarized in the table below are the
Estimated Project Schedule, Estimated Project Costs and Cost Center for each of
the projects listed above.

 

	
   

  	
   

  	
  ESTIMATED
  PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Run-up Pad Blast
  Fence Modifications

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  1,500,000

  	
   

  	
  $

  	
  1,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electrical System
  Computerization

  	
   

  	
  1998

  	
   

  	
  2000

  	
   

  	
  1,000,000

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Security
  Fence/Gates Replacement

  	
   

  	
  1998

  	
   

  	
  2000

  	
   

  	
  800,000

  	
   

  	
  800,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tunnel Structure
  Rehabilitation

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  200,000

  	
   

  	
  200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Apron Lighting
  Upgrades

  	
   

  	
  2001

  	
   

  	
  2001

  	
   

  	
  2,000,000

  	
   

  	
  2,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Remote Satellite
  Antennas Relocation

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  150,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  Miscellaneous Airfield
  Projects

  	
   

  	
  2000

  	
   

  	
  2010

  	
   

  	
  4,500,000

  	
   

  	
  4,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Utility
  Reconstruction

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  500,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  10,650,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  650,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  	
  $

  	
  500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  11,150,000

  	
   

  	
  $

  	
  10,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  650,000

  	
   

  

 

22

 

MISCELLANEOUS
LANDSIDE PROGRAM

 

PROGRAM SCOPE

 

This program consists of miscellaneous
projects located throughout the airport which will enhance customer service,
improve operations within the terminal complex and provide for the support of
expanded terminal operations. Projects included in this program are as follows:

 

	
  •

  	
   

  	
  East Commercial Roadway
  Reconstruction

  	
   

  	
  HHH
  AVI System/Taxi Starter Booth

  
	
  •

  	
   

  	
  East Airport Water Main
  Loop

  	
   

  	
  Lower Level Roadway
  Lighting Improvements

  
	
  •

  	
   

  	
  General Office
  Modifications

  	
   

  	
  Maintenance Facility
  Addition

  
	
  •

  	
   

  	
  Central Alarm
  Monitoring/Fiber Optic Cable Upgrade

  	
   

  	
  Materials Storage Building

  
	
  •

  	
   

  	
  Emergency Power Addition

  	
   

  	
  Navy Relocation

  
	
  •

  	
   

  	
  Commercial Vehicle Staging
  Area

  	
   

  	
  Post Road Taxi Monitors/LED
  Signs

  
	
  •

  	
   

  	
  EconoLot/Employee Parking
  Structure

  	
   

  	
  Fire/Rescue Replacement
  Facility

  
	
  •

  	
   

  	
  Green/Gold Ramp Lighting
  Upgrades

  	
   

  	
  D Street Reconstruction

  
	
  •

  	
   

  	
  Green/Gold Ramp Security
  System

  	
   

  	
  MAC Belly Cargo Building

  
	
  •

  	
   

  	
  MAC Cargo Hangar

  	
   

  	
   

  

 

ESTIMATED PROJECT SCHEDULES/COSTS

 

Summarizing the table below are the Estimated
Project Schedules, Estimated Project Costs and Cost Center for the projects
listed above.

 

	
   

  	
   

  	
  ESTIMATED
  PROJECT

  SCHEDULE

  	
   

  	
  ESTIMATED

  PROJECT

  COST

  	
   

  	
  COST
  CENTER

  	
   

  
	
  PROJECT

  	
   

  	
  START

  	
   

  	
  COMPLETION

  	
   

  	
  (1998$)

  	
   

  	
  AIRFIELD

  	
   

  	
  RAMP

  	
   

  	
  TERMINAL

  	
   

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  East Commercial
  Roadway Reconstruction

  	
   

  	
  1998

  	
   

  	
  1998

  	
   

  	
  $

  	
  600,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  600,000

  	
   

  
	
  East Airport
  Water Main Loop

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,000,000

  	
   

  
	
  General Office
  Space Modifications

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  9,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9,000,000

  	
   

  
	
  Central Alarm
  Monitoring/Fiber Optic Cable Upgrade

  	
   

  	
  1999

  	
   

  	
  2002

  	
   

  	
  10,850,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  10,850,000

  	
   

  	
   

  	
   

  
	
  Emergency Power
  Addition

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  4,000,000

  	
   

  	
   

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  2,000,000

  	
   

  	
   

  	
   

  
	
  Commercial
  Vehicle Staging Area

  	
   

  	
  2000

  	
   

  	
  2000

  	
   

  	
  500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  500,000

  	
   

  
	
  EconoLot/Employee
  Parking Structure

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  60,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  60,000,000

  	
   

  
	
  Green/Gold Ramp
  Lighting Upgrades

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  1,250,000

  	
   

  	
   

  	
   

  	
  1,250,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Green/Gold Ramp
  Security System

  	
   

  	
  2000

  	
   

  	
  2000

  	
   

  	
  1,200,000

  	
   

  	
   

  	
   

  	
  1,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HHH AVI System/Taxi Starter Booth

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  250,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  250,000

  	
   

  
	
  Lower Level Roadway
  Lighting Improvements

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  450,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  450,000

  	
   

  
	
  Maintenance
  Facility Addition

  	
   

  	
  2000

  	
   

  	
  2000

  	
   

  	
  3,000,000

  	
   

  	
  $

  	
  1,500,000

  	
   

  	
  1,080,000

  	
   

  	
  30,000

  	
   

  	
  390,000

  	
   

  
	
  Materials Storage
  Building

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  5,500,000

  	
   

  	
  2,750,000

  	
   

  	
  1,980,000

  	
   

  	
  55,000

  	
   

  	
  715,000

  	
   

  
	
  Navy Relocation

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  12,500,000

  	
   

  	
  12,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Post Road Taxi
  Monitors/LED Signs

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  200,000

  	
   

  
	
  Fire/Rescue
  Replacement Facility

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  9,500,000

  	
   

  	
  6,650,000

  	
   

  	
   

  	
   

  	
  1,900,000

  	
   

  	
  950,000

  	
   

  
	
  D Street
  Reconstruction

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
  2,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,500,000

  	
   

  
	
  MAC Belly Cargo
  Building

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  4,700,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,700,000

  	
   

  
	
  MAC Cargo Hangar

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  6,200,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6,200,000

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  133,200,000

  	
   

  	
  $

  	
  23,400,000

  	
   

  	
  $

  	
  7,510,000

  	
   

  	
  $

  	
  14,835,000

  	
   

  	
  $

  	
  87,455,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROGRAM TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  133,200,000

  	
   

  	
  $

  	
  23,400,000

  	
   

  	
  $

  	
  7,510,000

  	
   

  	
  $

  	
  14,835,000

  	
   

  	
  $

  	
  87,455,000

  	
   

  

 

23

 

Exhibit
J

[Maps/Diagrams
- Leased Areas of Main Terminal]

 

EXHIBIT
K

1/1/99

 

GUIDELINES
FOR ADMINISTERING

VALIDATED
AIRPORT PARKING

 

 

METROPOLITAN
AIRPORTS COMMISSION

 

1

 

I.              POLICY

 

Under certain circumstances,
outlined below, the Metropolitan Airports Commission shall waive parking
charges in its public parking facilities at the Minneapolis-Saint Paul
International Airport. For a limited number of regular users, a parking card
will be issued. Other users need to present their parking lot ticket for
validation.

 

It is the intention of the
Commission to be consistent with Minnesota Law, State Statute 473.608,
subdivision 23.

 

II.            GENERAL STATEMENT

 

All of the complementary
parking, whether by card to the underground garage or validation for other
lots, will be given only to those that have a distinct need to be at the
airport in conjunction with the conduct of business of the Metropolitan
Airports Commission, or the Minneapolis/St. Paul International Airport. Persons
attending meetings with Commissioners or MAC staff will be afforded this
accommodation because of the public nature of their visit to the Terminal.
Contract agents of the Commission will be afforded the opportunity for
validated parking while working on Commission contracts or projects, since the cost
of parking would otherwise be billed back to the Commission and, therefore, an
added expenditure that could easily be handled through validation. In the future
the provision of validated parking will be included as an explicit contract
provision.

 

In accordance with terms of
State law, a system of recordkeeping shall be established whereby all
complementary parking shall be logged for employees or visitors receiving
validated parking. Additionally, log records shall be kept with regard to usage
of courtesy parking cards for the underground parking garage and courtesy
parking cards issued to MAC employees for use in outdoor facilities. Records
shall be completed with dollar amounts of parking value on a monthly basis, and
such records shall then be assembled and stored for review by appropriate persons
or groups. Such records shall be stored for a period of seven years.

 

III.           GARAGE PARKING CARD

 

A parking card can be issued
to an authorized individual for a period of up to one year by the Manager,
Landside Operations. The following stipulations apply to all issuances:

 

2

 

A.            The parking card is issued to an authorized
individual as described in this policy. The card will not be honored if presented
by anyone other than the authorized user.

 

B.            The parking card is the property of the
Metropolitan Airports Commission and will be surrendered upon request for
whatever reason deemed necessary by the Commission.

 

C.            The parking card is for official public or
aviation business only. “USE OF THE PARKING CARD FOR PERSONAL REASONS WILL
RESULT IN LOSS OF THE PARKING CARD.”

 

D.            The maximum number of consecutive days of
authorized complimentary parking can be limited after proper notification. This
limit can be set after a 30 day notice, or upon issuance of new cards. Parking
beyond an established limit would result in the card holder being responsible
for all accumulated charges beyond the stated limit.

 

Cards will be issued on a no
charge basis to currently serving members of the Metropolitan Airports
Commission and currently employed staff members as designated by the Executive Director.

 

Accommodations are made for
station manager level individuals from the scheduled airlines serving the
Lindbergh Terminal to receive a parking card for the garage to assure quick
access to the Terminal Building for related business purposes and most
especially for emergency call back situations. For the year beginning April 1,
1996, the cards issued to the station manger from each airline shall be
invoiced to that airline at the current rate of employee parking, presently
$23.00 per month per card. One card shall be issued to each airline with the
exception of Northwest Airlines, which shall be issued three cards under this
pricing structure, one each for the two co-directors of this station, and one
to the vice president in charge of this station, all who office in the
Lindbergh Terminal Building.

 

Extra cards for the garage
may also be issued, at the discretion of the Executive Director, to all
airlines serving the Minneapolis/St. Paul International Airport, based on an overall
percentage of traffic generated from the preceding calendar year. Each airline
shall be afforded the opportunity to buy one additional card for the
underground parking garage at $1500.00 per card, per year, for each 2.75%
increment of passenger activity. The year shall run April 1 through March 31.
The card would only be issued to a

 

3

 

currently serving employee of
said airline stationed at Minneapolis/St. Paul, as identified by each
respective station manager. Any card issued under this authority will have
actual usage history tracked, so that an annual review may be made of the
amount of usage, and the fee to be established by the Commission may be charged
annually. All cards available through this procedure will be priced at the same
annual fee, and payment shall be made in advance. Uses of these cards shall be
restricted to business related purposes only.

 

1.             PROCEDURE FOR PARKING CARD USE

 

The authorized card user will
PRESENT THE CARD TO THE CASHIER UPON RETURN TO THE GARAGE FACILITY. Individual
will be required to sign their vehicle claim check with a legible signature and
card number for each use of the card. GARAGE EMPLOYEES ARE REQUIRED TO VALIDATE
THE CARD USER AND CARD NUMBER AND ARE NOT AUTHORIZED TO VALIDATE PARKING
WITHOUT SEEING THE CARD.

 

During the winter months or
whenever the “Garage Full” sign is illuminated and the gate arm is down,
cardholders will be admitted by activating the call box intercom and
identifying themselves by name and card number. The supervisor on duty will
open the arm by remote control and allow entrance.

 

2.             TERMINATION/EXPIRATION

 

Upon completion of
employment, affiliation or appointment, the card will expire automatically. THE
PARKING CARD CANNOT BE TRANSFERRED TO ANOTHER INDIVIDUAL. Cardholders are
requested to return the card to the Metropolitan Airports Commission at the end
of their affiliation or employment. Cards may be renewed annually after review
and approval by the Executive Director of the Commission as appropriate.

 

IV.           VALIDATIONS AND OTHER ACCOMMODATIONS

 

A restricted number of MAC
management and support staff will be given responsibility for parking
validation. The Manager, Landside Operations will maintain the list of MAC
staff authorized to sign parking validations. Complimentary parking allowed as
follows:

 

4

 

A.            Members of the general public or others
attending meetings, events or other activities with MAC staff or attending
public Commission meetings will be allowed validated parking privileges for the
time necessary to attend meetings.

 

B.            Volunteers working to provide staffing at the
Armed Forces Service Center and Traveller’s Assistance kiosks will be allowed
validated parking. The Executive Director has discretion to allow parking
validation during nationally recognized conventions, sporting events and other
gatherings of regional or statewide significance, such as the Super Bowl volunteer
greeters, NCAA Final Four, LPGA, and other similar events.

 

C.            Contract agents of the Metropolitan Airports Commission
will be allowed validated parking in outdoor facilities in the conduct of their
contract services. Effective with the date of this policy, future contracts
with contract agents of the Commission shall identify validated parking as a
part of each agreement. For example, employees of the Commission’s parking
management firm will be allowed validated parking as may be specified in their bargaining
contract.

 

V.            QUESTIONS/PROBLEMS

 

All questions/problems
regarding the use of the Parking Card or validations should be directed to the
Manager, Landside Operations, Lindbergh Terminal Building, phone 726-5244.

 

5

 

Exhibit
L

[Maps
- Regional Terminal Parking Positions]

 

EXHIBIT
M

1/1/99

 

Metropolitan
Airports Commission

Minneapolis-St.
Paul International Airport

Indirect
Cost Center Allocations

 

	
   

  	
   

  	
  Indirect Cost Centers

  	
   

  
	
   

  	
   

  	
  Maintenance

  	
   

  	
  Equipment

  	
   

  	
  ARFF

  	
   

  	
  Police

  	
   

  	
  Administration

  	
   

  
	
  Cost Center

  	
   

  	
  Labor (%)

  	
   

  	
  Building (%)

  	
   

  	
  (%)

  	
   

  	
  (%)

  	
   

  	
  (%) (1)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Airfield

  	
   

  	
  45.0

  	
   

  	
  50.0

  	
   

  	
  70.0

  	
   

  	
  20.0

  	
   

  	
   

  	
   

  
	
  Terminal Building

  	
   

  	
  14.5

  	
   

  	
  1.0

  	
   

  	
  20.0

  	
   

  	
  11.0

  	
   

  	
   

  	
   

  
	
  Terminal Apron

  	
   

  	
  8.0

  	
   

  	
  36.0

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Humphrey Terminal

  	
   

  	
  2.0

  	
   

  	
  1.0

  	
   

  	
  2.0

  	
   

  	
  2.0

  	
   

  	
   

  	
   

  
	
  International Arrivals Facility

  	
   

  	
  0.5

  	
   

  	
  —

  	
   

  	
  1.0

  	
   

  	
  1.0

  	
   

  	
   

  	
   

  
	
  Landside Area

  	
   

  	
  13.0

  	
   

  	
  4.0

  	
   

  	
  3.0

  	
   

  	
  40.0

  	
   

  	
   

  	
   

  
	
  Other Areas

  	
   

  	
  9.0

  	
   

  	
  8.0

  	
   

  	
  4.0

  	
   

  	
  26.0

  	
   

  	
   

  	
   

  
	
  Equipment Buildings

  	
   

  	
  8.0

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  100.0

  	
   

  	
  100.0

  	
   

  	
  100.0

  	
   

  	
  100.0

  	
   

  	
  100.0

  	
   

  

 

(1) The annual costs associated with
Administration shall be allocated to each of the Airport Cost Centers based on
the ratio of the (1) annual costs associated with a particular Airport Cost
Center plus the amount allocated to such Airport Cost Center from the indirect
cost centers to (2) total annual costs associated with Administration.

 

Example:

 

	
  Terminal Building annual cost

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Indirect cost center allocations to
  Terminal Building:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maintenance labor

  	
   

  	
  650,000

  	
   

  	
   

  	
   

  
	
  Equipment buildings

  	
   

  	
  50,000

  	
   

  	
   

  	
   

  
	
  ARFF

  	
   

  	
  200,000

  	
   

  	
   

  	
   

  
	
  Police

  	
   

  	
  1,000,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal

  	
   

  	
  $

  	
  11,900,000

  	
   

  	
  [A]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total annual costs of all cost centers

  	
   

  	
  $

  	
  80,000,000

  	
   

  	
  [B]

  	
   

  
	
  Terminal Building share of total annual costs
  of all cost centers

  	
   

  	
  14.9

  	
  %

  	
  [C=A/B]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Administration annual costs

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
  [D]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal Building share of Administration annual
  costs

  	
   

  	
  $

  	
  2,231,250

  	
   

  	
  [C*D]

  	
   

  

 

1

 

INDIRECT
COST CENTER ALLOCATIONS

 

	
   

  	
   

  	
  MAINTENANCE

  	
   

  	
  EQUIPMENT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LABOR

  	
   

  	
  BUILDINGS

  	
   

  	
  FIRE

  	
   

  	
  POLICE

  	
   

  	
  ADMINISTRATION*

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10 Lindbergh Terminal

  	
   

  	
  14.5

  	
  %

  	
  1.0

  	
  %

  	
  20.0

  	
  %

  	
  11.0

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12 Int’l Arrivals Facility

  	
   

  	
  0.5

  	
  %

  	
  0.0

  	
  %

  	
  1.0

  	
  %

  	
  1.0

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16 Terminal Apron

  	
   

  	
  8.0

  	
  %

  	
  36.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  21 Airfield

  	
   

  	
  45.0

  	
  %

  	
  50.0

  	
  %

  	
  70.0

  	
  %

  	
  20.0

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26/31

  	
  Landside Facilities

  	
   

  	
  13.0

  	
  %

  	
  4.0

  	
  %

  	
  3.0

  	
  %

  	
  40.0

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  36 HHH Terminal

  	
   

  	
  2.0

  	
  %

  	
  1.0

  	
  %

  	
  2.0

  	
  %

  	
  2.0

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  53/56

  	
  Maintenance Equipment/Buildings

  	
   

  	
  8.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33/39

  	
  Cargo Areas
  &Public Areas/Other Rds

  	
   

  	
  9.0

  	
  %

  	
  8.0

  	
  %

  	
  4.0

  	
  %

  	
  26.0

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Totals

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
   

  	
   

  

 

* Propose to allocate on same basis as current
calculation (i.e. not a fixed percentage)

 

2

 

EXHIBIT
N

1/1/99

 

Metropolitan
Airports Commission

Minneapolis-St.
Paul International Airport

Illustration
of Calculation of Rates for Rents, Fees, and Charges

Calculation
of Landing Fee Rates

 

	
  ARTICLE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REFERENCE

  	
   

  	
   

  	
   

  	
  19xx

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.C.1.

  	
   

  	
  Direct Operation and
  Maintenance Expense

  	
   

  	
  $

  	
  6,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Indirect Operation and
  Maintenance Expense

  	
   

  	
  11,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct and Indirect
  Depreciation

  	
   

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Imputed
  Interest (1)

  	
   

  	
  1,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Cost of
  Capital Outlays

  	
   

  	
  200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fine, Assessment, Judgment,
  or Settlement

  	
   

  	
  50,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Debt Service Reserve Fund
  Deposit

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Operation Reserve Account
  Deposit

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Coverage Account Deposit

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOTAL AIRFIELD COST

  	
   

  	
  $

  	
  21,150,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.C.2.

  	
   

  	
  Service Fees

  	
   

  	
  $

  	
  (200,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  General Aviation Landing
  Fees

  	
   

  	
  (600,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Nonsignatory Landing Fees

  	
   

  	
  (150,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Off-Airport Aircraft Noise
  Costs

  	
   

  	
  (500,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Projects Rejected by MII of
  Signatory Airlines

  	
   

  	
  (100,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOTAL ADJUSTMENTS

  	
   

  	
  $

  	
  (1,550,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NET AIRFIELD COST

  	
   

  	
  $

  	
  19,600,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.C.3.

  	
   

  	
  Total Landed Weight of
  Signatory Airlines (1,000-lbs units)

  	
   

  	
  22,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Landing Fee Rate per 1,000
  lbs

  	
   

  	
  $

  	
  .87

  	
   

  

 

(1) includes imputed interest on the
historical cost of MAC’s investment in land.

 

1

 

Metropolitan
Airports Commission

Minneapolis-St.
Paul International Airport

Illustration
of Calculation of Rates for Rents, Fees, and Charges

Calculation
of Environmental Surcharge Rate and Excess Stage 2 Fee Rate

 

	
  ARTICLE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REFERENCE

  	
   

  	
   

  	
   

  	
  19xx

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.D.2.

  	
   

  	
  Off- Airport Aircraft Noise
  Costs

  	
   

  	
  $

  	
  500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less: Environmental Surcharges
  Paid by Nonsignatory Airlines

  	
   

  	
  (50,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Net Off-Airport
  Aircraft Noise Costs Due

  	
   

  	
  $

  	
  450,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Stage 2 and Stage 3
  Operations of Signatory Airlines

  	
   

  	
  200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Environmental surcharge
  Rate per Aircraft Operation

  	
   

  	
  $

  	
  2.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.D.3.

  	
   

  	
  Environmental Surcharge
  Rate per Aircraft Operation

  	
   

  	
  $

  	
  2.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Stage 2 Differential

  	
   

  	
  30

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Excess Stage 2 Fee Rate per
  Stage 2 Operation

  	
   

  	
  $

  	
  0.68

  	
   

  

 

The stage 2 credit shall be equal to the total
excess stage 2 fees paid by the Signatory Airlines at the Airport in a given
Fiscal Year.

 

2

 

Metropolitan
Airports Commission

Minneapolis-St.
Paul International Airport

Illustration
of Calculation of Rates for Rents, Fees, and Charges

Calculation
of Terminal Apron Rates

 

	
  ARTICLE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REFERENCE

  	
   

  	
   

  	
   

  	
  19XX

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.E.1.

  	
   

  	
  Direct Operation and
  Maintenance Expense

  	
   

  	
  $

  	
  250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Indirect Operation and
  Maintenance Expense

  	
   

  	
  3,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Depreciation

  	
   

  	
  200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Imputed
  Interest

  	
   

  	
  100,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Cost of
  Capital Outlays

  	
   

  	
  10,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Debt Service Reserve Fund
  Deposit

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Operation Reserve Account
  Deposit

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Coverage Account Deposit

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Terminal Apron Cost

  	
   

  	
  $

  	
  3,560,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.E.2.

  	
   

  	
  Total Lineal Feet of
  Terminal Apron (1)

  	
   

  	
  9,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal Apron Rate per
  Lineal Foot

  	
   

  	
  $

  	
  395.56

  	
   

  

 

(1) Excludes the lineal feet of Regional Ramp,
but includes the weighted lineal feet of Regional Ramp.

 

3

 

Metropolitan
Airports Commission

Minneapolis-St.
Paul International Airport

Illustration
of Calculation of Rates for Rents, Fees, and Charges

Calculation
of Regional Ramp Fees

 

	
  ARTICLE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REFERENCE

  	
   

  	
   

  	
   

  	
  19XX

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.E.2.

  	
   

  	
  Terminal Apron Rate per
  Lineal Foot

  	
   

  	
  $

  	
  395.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Weighted lineal Feet of
  Regional Ramp

  	
   

  	
  500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.F.1.

  	
   

  	
  Regional Ramp Cost

  	
   

  	
  $

  	
  197,778

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Aircraft Parking Positions
  (Regional Ramp)

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.F.2.

  	
   

  	
  Fee per Preferential Use
  Parking Position

  	
   

  	
  $

  	
  19,778

  	
   

  

 

4

 

Metropolitan
Airports Commission

Minneapolis-St.
Paul International Airport

Illustration
of Calculation of Rates for Rents, Fees, and Charges

Calculation
of Terminal Building Rental Rate (Janitored and Unjanitored Space)

 

	
  ARTICLE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REFERENCE

  	
   

  	
   

  	
   

  	
  19XX

  	
   

  
	
   

  	
   

  	
  UNJANITORED SPACE RATE
  CALCULATION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.G.1.a.

  	
   

  	
  Direct Operation and
  Maintenance Expense

  	
   

  	
  $

  	
  7,000,000

  	
   

  
	
   

  	
   

  	
  Indirect Operation and
  Maintenance Expense

  	
   

  	
  3,500,000

  	
   

  
	
   

  	
   

  	
  Direct and Indirect
  Depreciation

  	
   

  	
  3,000,000

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Imputed
  Interest

  	
   

  	
  3,000,000

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Cost of
  Capital Outlays

  	
   

  	
  200,000

  	
   

  
	
   

  	
   

  	
  Debt Service Reserve Fund
  Deposit

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  Operation Reserve Account
  Deposit

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  Coverage Account Deposit

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  Total Terminal Building
  Cost

  	
   

  	
  $

  	
  16,700,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less:

  	
   

  	
   

  	
   

  
	
  V1.G.1.b.

  	
   

  	
  Steam and Chilled Water
  Reimbursement (Gold Concourse)

  	
   

  	
  $

  	
  (500,000

  	
  )

  
	
   

  	
   

  	
  Carrousel and Conveyor
  Costs (?)

  	
   

  	
  (250,000

  	
  )

  
	
   

  	
   

  	
  Janitorial Operation and
  Maintenance Expenses

  	
   

  	
  (2,000,000

  	
  )

  
	
   

  	
   

  	
  Total Adjustments

  	
   

  	
  $

  	
  (2,750,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Net Terminal Building Cost

  	
   

  	
  $

  	
  13,950,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.G.1.c.

  	
   

  	
  Total Rentable Space

  	
   

  	
  650,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal Building Rental
  Rate per Square Foot for Unjanitored space

  	
   

  	
  $

  	
  21.46

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JANITORED SPACE RATE
  CALCULATION

  	
   

  	
   

  	
   

  
	
  V1.G.2.

  	
   

  	
  Total Direct Janitored
  Operation and Maintenance Expenses

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Janitored Space (1)

  	
   

  	
  450,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Janitored Rate per Square
  foot

  	
   

  	
  $

  	
  4.44

  	
   

  
	
   

  	
   

  	
  Terminal Building Rental
  Rate per Square Foot for Unjanitored Space

  	
   

  	
  21.46

  	
   

  
	
   

  	
   

  	
  Terminal Building Rental
  Rate per Square Foot for Janitored Space

  	
   

  	
  $

  	
  25.90

  	
   

  

 

(1) Excludes MAC and mechanical space.

 

5

 

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for
Rents, Fees, and Charges

Calculation of Carrousel and Conveyor Charge

 

	
  ARTICLE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REFERENCE

  	
   

  	
   

  	
   

  	
  19XX

  	
   

  
	
  V1.H.1.

  	
   

  	
  Terminal
  Building Rental Rate per Square foot (1)

  	
   

  	
  $

  	
  25.90

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Rentable
  Space (tug drive, inbound baggage area, baggage claim area)

  	
   

  	
  50,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Equivalent
  Terminal Building Rentals

  	
   

  	
  $

  	
  1,295,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Equipment
  Charges (depreciation, imputed interest, maintenance)

  	
   

  	
  250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Carrousel and Conveyor Charge

  	
   

  	
  $

  	
  1,545,000

  	
   

  

 

(1)           The terminal building rental rate to be used
to calculate the equivalent terminal building rentals is the janitored or
unjanitored terminal building rental rate, as appropriate.

 

6

 

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rents, Fees,
and Charges

Calculation of Airline Cost Per Enplaned
Passenger

 

	
   

  	
   

  	
  ACTUAL

  	
   

  
	
   

  	
   

  	
  1997

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Landing
  Fees-Signatory

  	
   

  	
  $

  	
  23,569,200

  	
   

  
	
  Landing
  Fees-HHH Nonsignatory

  	
   

  	
  83,600

  	
   

  
	
  Landing
  Fees-Commuter Nonsignatory

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ramp
  Fees-Signatory

  	
   

  	
  3,930,600

  	
   

  
	
  Ramp
  Fees-HHH Nonsignatory

  	
   

  	
  263,100

  	
   

  
	
  Ramp
  Fees-commuter Nonsignatory

  	
   

  	
  5,900

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Green
  Concourse Direct

  	
   

  	
  1,551,100

  	
   

  
	
  Terminal
  Building

  	
   

  	
  8,939,900

  	
   

  
	
  IAF Charges

  	
   

  	
  1,702,100

  	
   

  
	
  Carrousels &Conveyors

  	
   

  	
  231,400

  	
   

  
	
  Old Portion
  of Gold Concourse

  	
   

  	
  420,800

  	
   

  
	
  Lobby Fees

  	
   

  	
  683,500

  	
   

  
	
  FIS
  Surcharge

  	
   

  	
  178,600

  	
   

  
	
  HHH Terminal
  Building Rent

  	
   

  	
  159,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Noise
  Surcharge

  	
   

  	
  626,900

  	
   

  
	
  Apron Fees

  	
   

  	
  241,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Police/Fire/Admin
  - Gold Concourse

  	
   

  	
  488,100

  	
   

  
	
  Steam/Chilled
  Water - Gold Concourse

  	
   

  	
  770,100

  	
   

  
	
  Janitorial -
  Gold Concourse

  	
   

  	
  535,800

  	
   

  
	
  Gate
  Surcharge - Republic

  	
   

  	
  0

  	
   

  
	
  Self
  Liquidating - Green/Gold Concourse

  	
   

  	
  3,483,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Costs

  	
   

  	
  $

  	
  47,863,800

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Enplaned
  Passengers

  	
   

  	
  14,335,640

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  AIRLINE COST
  PER ENPLANED

  	
   

  	
  $

  	
  3.34

  	
   

  

 

7

 

EXHIBIT O

1/1/99

 

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Table of Initial Rentable Square Footage

 

The
table of initial rentable square footage presented below includes the amount and
breakdown of rentable square footage as of January 1, 1998, which amount
may change from time to time.

 

	
   

  	
   

  	
  RENTABLE
  SQUARE FOOTAGE

  	
   

  
	
   

  	
   

  	
  Lindbergh

  	
   

  	
  Red

  	
   

  	
  Blue

  	
   

  	
  Green

  	
   

  	
  Regional

  	
   

  	
   

  	
   

  
	
  Type of Space

  	
   

  	
  Terminal

  	
   

  	
  Concourse

  	
   

  	
  Concourse

  	
   

  	
  Concourse

  	
   

  	
  Terminal

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Airline
  Space

  	
   

  	
  42,646

  	
   

  	
  46,683

  	
   

  	
  40,273

  	
   

  	
  80,268

  	
   

  	
  7,914

  	
   

  	
  217,784

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Holdroom

  	
   

  	
  —

  	
   

  	
  33,116

  	
   

  	
  29,074

  	
   

  	
  49,772

  	
   

  	
  3,577

  	
   

  	
  115,539

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Concession

  	
   

  	
  63,566

  	
   

  	
  8,342

  	
   

  	
  11,359

  	
   

  	
  13,150

  	
   

  	
  —

  	
   

  	
  96,417

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Baggage
  Makeup

  	
   

  	
  58,952

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  58,952

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tug Drive

  	
   

  	
  46,492

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  46,492

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Baggage
  Claim

  	
   

  	
  38,734

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  263

  	
   

  	
  38,997

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ticket
  Counter

  	
   

  	
  7,078

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  262

  	
   

  	
  7,340

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
  196,308

  	
   

  	
  16,043

  	
   

  	
  3,843

  	
   

  	
  1,825

  	
   

  	
  289

  	
   

  	
  218,308

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  453,776

  	
   

  	
  104,184

  	
   

  	
  84,549

  	
   

  	
  145,015

  	
   

  	
  12,305

  	
   

  	
  799,829

  	
   

  

 

(1)   Other includes non-airline space,
other/unoccupied space, holdroom stairs, airline mechanical/ electrical &
toilets, miscellaneous space, and garage.

 

1

 

Exhibit P

[Maintenance Responsibility Matrix]

 

 

Exhibit Q

[Map - Regional Terminal Buildings]

 

 

Exhibit R

[Map - FIS Bag Belt Enclosure Area]

 

EXHIBIT S

1/1/99

 

NORTHWEST AIRLINES SELF-LIQUIDATING PROJECTS

 

	
   

  	
   

  	
  ORIGINAL PRINCIPAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
   &TERM

  	
   

  	
  START DATE

  	
   

  	
  LAST PAYMENT

  	
   

  	
  WHO PAYS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GOLD CONCOURSE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  106-2-053
  Pier A

  	
   

  	
  P:
  $19,846,349

  	
   

  	
  01/01/86

  	
   

  	
  12/01/2015

  	
   

  	
  NWA

  	
   

  
	
  Extension
  (SA#3)

  	
   

  	
  30 years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (MAC Funded)

  	
   

  	
  @
  $173,140.19

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GREEN CONCOURSE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Security
  checkpoint

  	
   

  	
  P=$109,668

  	
   

  	
  01/01/96

  	
   

  	
  12/31/00

  	
   

  	
  NWA

  	
   

  
	
  Relocation
  Project

  	
   

  	
  60 months

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  @
  $2,185.65/mo

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RED CONCOURSE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  106-2-155;

  	
   

  	
  P:
  $1,023,634.94

  	
   

  	
  09/01/91

  	
   

  	
  08/01/01

  	
   

  	
  NWA

  	
   

  
	
  Modifications
  (A#5)

  	
   

  	
  10 years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (MAC Funded)

  	
   

  	
  @ $11,991.05

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  106-2-293;
  Red

  	
   

  	
  P: $145,528

  	
   

  	
  11/01/97

  	
   

  	
  10/01/07

  	
   

  	
  NWA

  	
   

  
	
  Concourse
  Tug

  	
   

  	
  120 months

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  storage area

  	
   

  	
  @
  $1,683.59/mo.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

Exhibit T

 

[Maps - Month-to-Month Leased Areas]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]