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HomeMy WebLinkAboutECAT17-014 The Paradies Shop Concessionaire AgreementEAGLE COUNTY AIR TERMINAL CORPORATION CONCESSION AGREEMENT THIS AGREEMENT (this "Agreement"), made and entered into this 09/26/2017 by and between Eagle County Air Terminal Corporation, a Colorado nonprofit corporation ("CORPORATION"), and The Paradies Shops, Inc., a corporation organized under the laws of the State of Georgia ("CONCESSIONAIRE"). WITNESSETH: WHEREAS, CORPORATION is owner and operator of the passenger Terminal Building and associated support facilities ("TERMINAL BUILDING") located on the Eagle County Regional Airport in the Town of Gypsum, Eagle County, Colorado, and has the right to lease portions of the TERMINAL BUILDING and to grant operating privileges thereon subject to the terms and conditions hereinafter set forth; and WHEREAS, CONCESSIONAIRE desires to lease certain premises within the TERMINAL BUILDING, and use certain facilities at the TERMINAL BUILDING, and acquire certain rights and privileges from CORPORATION in connection with its use of the TERMINAL BUILDING and CORPORATION is willing to lease and grant same to CONCESSIONAIRE under terms and conditions hereinafter stated; and WHEREAS, CORPORATION has the power and authority to enter into this Agreement; NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and considerations herein CONCESSIONAIRE agree as follows: Article 1 Definitions Section 1.1 Definitions contained, CORPORATION and The terms and phrases defined in this Article 1 for all purposes of this AGREEMENT shall have the following meanings: A. "AIRPORT" shall mean Eagle County Regional Airport. B. "AUDITOR" shall mean the CORPORATION's Auditor and his authorized representative. C. "CONCESSION SPACE" shall mean the spaces as generally depicted as Space 1, Space 2, Restaurant, Bar, and Pre -Security Space in the TERMINAL BUILDING as generally depicted on the "Terminal Space Plan" attached hereto as Exhibit A and incorporated herein by this reference, each a CONCESSION SPACE or collectively the CONCESSION SPACES. D. "LEASE TERM" shall commence on November 1, 2017 and end April 15, 2018. ECAT17-014 E. "MANAGER" shall mean Airport Manager. F. "PAST DUE INTEREST RATE" shall mean interest accruing at 18% per annum commencing on the fifth calendar date after the date such amount is due and owing until paid to CORPORATION. ARTICLE 2 Grant of Concession Rights Section 2.1 Concession Rights Granted. CORPORATION grants to CONCESSIONAIRE the right to occupy, improve and use the CONCESSION SPACES for a gift and news concession, coffee shop, a post security food and beverage concession, a post security bar concession and a pre -security food and beverage as designed on Exhibit A and subject to all the terms and provisions of this Agreement. Section 2.2 Uses and Privileges of CONCESSION SPACE. CONCESSIONAIRE shall enjoy the following privileges in connection with its use of the CONCESSION SPACES: A. The nonexclusive right, privilege and obligation to conduct and operate a gift and news concession, a coffee shop and retail service and food and beverage concessions at the TERMINAL BUILDING. CONCESSIONAIRE understands and agrees that it shall not engage in any other business on the AIRPORT under this agreement. B. No signs, posters or other displays of advertising media, including materials supplied by manufacturers of merchandise offered for sale, shall be installed by CONCESSIONAIRE on or about the TERMINAL BUILDING, including in the CONCESSION SPACES without the prior written approval of the CORPORATION. Permission will not be granted for any advertising material, fixture or equipment which extends beyond the CONCESSION SPACES. The CORPORATION intends to implement and enforce signage standards in the TERMINAL BUILDING. No temporary signs or displays shall be permitted without the prior written approval of the Airport Manager. Section 2.3 Rights Not Exclusive. CORPORATION reserves the right, in its sole discretion, to grant other concessionaires the right to sell retail goods, food beverages or other articles on CONCESSIONAIRE'S inventory in other locations in the TERMINAL BUILDING or AIRPORT, and CONCESSIONAIRE understands and agrees that its right to sell such articles is not exclusive. Section 2.4 Means of Access. CONCESSIONAIRE, its agents, invitees, guests, employees and suppliers have a non-exclusive right of ingress to and egress from each CONCESSION SPACE by a means of access located outside the boundaries of such space as specified by CORPORATION. Such access shall, without exception, be in common with such other persons including, the general public as the CORPORATION may authorize or permit, and the CORPORATION may at any time close, relocate, reconstruct or modify such means of access, provided that a reasonable, convenient and adequate means of ingress and egress is available for the same purposes. This right of access is subject to the security requirements of each section herein entitled "Security". Section 2.5 Right of Inspection. CORPORATION retains the full right of entry in and to each CONCESSION SPACE for any purpose necessary, incidental to or in connection with its obligations hereunder, or in the exercise of its functions, or for the purpose of making any inspection it deems necessary. CORPORATION will provide 24 hour notice to CONCESSIONAIRE prior to entering premise wherever possible. Section 2.6 Employee Parking. CONCESSIONAIRE's employees at each CONCESSION SPACE shall be entitled to the use of parking areas designated for TERMINAL BUILDING employees. CONCESSIONAIRE's employees shall not park elsewhere on the AIRPORT, and any such parking will be treated as a civil and for criminal trespass. CORPORATION reserves the right to limit the number of spaces to be made available to CONCESSIONAIRE, to designate specific parking spaces for some or all TERMINAL BUILDING tenants, to move, contract, and expand the parking area(s) designated for employee parking, and to make such rules and regulations for the use of the parking area(s) designated for employee parking, in its sole discretion. ARTICLE 3 Term 3.1 Term. A. This Agreement shall be effective upon execution of this Agreement by CORPORATION hereinafter called the "Effective Date" and shall expire on April 15, 2018 at 11:59 p.m. local time subject to earlier termination as provided in Article 8 hereof (the `Term"). B. Notwithstanding the foregoing, upon the defeasance of the bonds issued by CORPORATION to finance acquisition or construction of the TERMINAL BUILDING and related facilities and services (the "Bonds"), following maturity or earlier as provided in the Trust Indenture with respect to any Bonds, this Agreement shall terminate, as of the date of defeasance, and CONCESSIONAIRE shall vacate the premises within not more than ninety (90) days. CORPORATION will give not less than thirty (30) and not more than sixty (60) days' notice of its intent to defease the bonds in accordance with the Trust Indenture. CORPORATION also will give CONCESSIONAIRE notice of the date of defeasance within two (2) business days following the actual defeasance. Section 3.2 Surrender of CONCESSION SPACE. Upon the expiration or earlier termination of this Agreement or on the date specified in any demand for possession by CORPORATION after any default by CONCESSIONAIRE, CONCESSIONAIRE covenants and agrees to surrender possession of each CONCESSION SPACE to CORPORATION in the same condition as when first occupied or improved, ordinary wear and tear expected. Section 3.3 Holding Over. If CONCESSIONAIRE remains in possession of the leased premises after the expiration of this Agreement without any written renewal thereof, such holding over shall not be deemed as a renewal or extension of this Agreement, but shall create only a tenancy from month to month that may be terminated at any time by CONCESSIONAIRE or CORPORATION upon thirty (30) days written notice to the other party. Such holding over shall otherwise be upon the same terms and conditions as set forth in this Agreement. ARTICLE 4 Compensation Charges, Fees, and Accounting Records Section 4.1 Compensation. CONCESSIONAIRE covenants and agrees, without offset, deduction or abatement, to pay CORPORATION as compensation for the rights and privileges granted by CORPORATION a Percentage Compensation Fee as more fully set forth in Article 4.3 herein. Section 4.2 Net Revenue. For purposes of this Agreement, "Net Revenue" shall mean all amounts of consideration collected by the CONCESSIONAIRE in the CONCESSION SPACES, less refunds, credits, returns, shipping, and sales taxes, if any, associated therewith. It shall include all transactions, whether placed by telephone, in person or by mail, and regardless of place or time of actual payment; excluding therefrom, however, sales pursuant to a discount program for Airport and/or TERMINAL BUILDING employees which has been approved in writing in advance by CORPORATION, which approval shall be exercised in its sole discretion. Section 4.3 Payment of Compensation. A. Intentionally Omitted. B. Percentage Compensation Fee. The CONCESSIONAIRE shall pay monthly to CORPORATION, 10% of its Net Revenue from the previous month. By the 15`" day of the month for each and every month during the Term of this Agreement, CONCESSIONAIRE shall furnish to the Manager in a form acceptable to CORPORATION a true and accurate verified statement signed by an officer of CONCESSIONAIRE of its Net Revenues for the preceding month. Monthly statement shall include the total Net Revenue received during the month. Section 4.4 Intentionally Omitted. Section 4.5 Intentionally Omitted. Section 4.6 Title to CORPORATION's Compensation. Immediately upon CONCESSIONAlRE's receipt of monies from the sales of services and articles which it is authorized to sell under the terms of this Agreement, the percentages of said monies belonging to CORPORATION shall immediately vest in and become the property of the CORPORATION. CONCESSIONAIRE shall be responsible as trustee for said monies until the same are delivered to CORPORATION. 4 Section 4.7 Interest on Past Due Amounts. Any payments not made to CORPORATION when due shall accrue interest at the PAST DUE INTEREST RATE, as herein defined. Section 4.8 Place and Manner of Payments. All sums payable to CORPORATION hereunder shall be made without notice or demand, at the following: Eagle County Air Terminal Corporation c/o Eagle County Regional Airport Manager P.O. Box 850 Eagle, Colorado 81631 or at such other place as the CORPORATION may hereafter designate by notice in writing to CONCESSIONAIRE. All sums shall be made in legal tender of the United States. Any check given to the CORPORATION shall be received by it subject to collection, and CONCESSIONAIRE agrees to pay any charges, fees or costs incurred by the CORPORATION for such collection, including reasonable attorney's fees. Section 4.9 Books of Account and Auditing. CONCESSIONAIRE shall keep within the limits of North America true and complete records and accounts of all Gross Revenues and business transacted, including daily bank deposits. Not later than May 15, 2018, CONCESSIONAIRE shall furnish to CORPORATION a true and accurate statement of the total of all Annual Gross Revenues and business transacted during the preceding Lease Year (showing the authorized deductions or exclusions in computing the amount of such Gross Revenues and business transactions). Such statement shall be prepared and certified to be true and correct by an certified public accountant. Such statement shall be furnished for this Lease Year in which business was transacted under this Agreement during the whole or any part of the year. CONCESSIONAIRE agrees to establish and maintain a system of bookkeeping satisfactory to CORPORATION's AUDITOR. Such system shall be kept in a manner as to allow each location of the CONCESSIONAIRE's operations hereunder to be distinguished from all other locations or operations of CONCESSIONAIRE. The CORPORATION's authorized representative shall have access during normal business hours to such books and records. CONCESSIONAIRE shall keep and preserve for at least three years, or until sooner audited by CORPORATION, all sales slips, cash register tapes, sales books, bank books or duplicate deposit slips, and all other evidence of Gross Revenues and business transacted for such period. The CORPORATION, AUDITOR, and their authorized representatives shall have the right at any time to audit all of the books of account, bank statements, documents, records, returns, papers and files of CONCESSIONAIRE relating to the Gross Revenues and business transacted. CONCESSIONAIRE, upon request, shall make all such documents available for examination at a designated CONCESSION SPACE. If CORPORATION determines after an audit for any year that the Gross Revenue and business transacted shown by CONCESSIONAIRE's statement for such year was understated by more than three percent (3%), CONCESSIONAIRE shall pay to CORPORATION the cost of the audit and the amount of any deficiency, plus interest on such amount at 18% per annum from the date due. The CORPORATIONS's right to perform such an audit shall expire three (3) years after CONCESSIONAIRE's statement for that year has been delivered to CORPORATION. CONCESSIONAIRE expressly agrees that CORPORATION's AUDITOR, Manager and other authorized representatives may inspect any sales tax return or report and accompanying schedules and data which CONCESSIONAIRE may file pursuant to any retail sales tax regulations and waives any claim of confidentiality which it may have in connection therewith. Section 4.8 Annual Reconciliation. Within ninety (99) days of the expiration or termination of this Agreement, CONCESSIONAIRE shall provide CORPORATION with a reconciliation of its Gross Revenue for the Term to ensure that the full Percentage Compensation Fee as set forth in Section 4.2 has been paid. To the extent that the full Percentage Compensation Fee has not been paid, then CONCESSIONAIRE shall pay the same within fifteen (15) days of the reconciliation together with interest at the PAST ❑URE INTEREST RATE. CONCESSIONAIRE's obligations under this Article 4 shall survive the termination of this Agreement so that CONCESSIONAIRE will be required to forward a reconciliation and any funds due pursuant to this Article 4 as long as CONCESSIONAIRE continues to receive revenues from this Agreement. ARTICLE 5 OPERATION AND USE OF CONCESSION SPACE Section 5.1 Operations. CONCESSIONAIRE agrees to conduct its business to accommodate the public using the TERMINAL BUILDING and to operate each CONCESSION SPACE in the following manner: A. CONCESSIONAIRE shall operate each CONCESSION SPACE in a first - class manner satisfactory to the CORPORATION. Service shall be prompt, clean, courteous and efficient. B. CONCESSIONAIRE shall supply sufficient goods and products to fully stock each CONCESSION SPACE substantially similar to CONCESSIONAIRE's previous operation of the CONCESSION SPACE. All foodstuff must be new, fresh and of top quality; all non-food articles must be new and of top quality. CONCESSIONAIRE shall charge only fair and reasonable prices for its goods and products, subject to the following: CONCESSIONAIRE's inventory pursuant to the terms of Section by CORPORATION. of goods shall be submitted 5.3 unless otherwise authorized CONCESSIONAIRE acknowledges the existence of other retail and food service establishments in the TERMINAL BUILDING, and the possibility of others during the Term of this Agreement. Although it is the CORPORATION's intention to maximize service to the public by requiring divergent inventories between the different concessions, no concessionaire is granted an exclusive right. iii. Unless authorized by the CORPORATION, prices shall not be greater than 110% of "street prices" charged in non -AIRPORT retail shops offering similar articles in the Eagle County area, and shall be subject to the approval of the CORPORATION. iv. CONCESSIONAIRE shall not in any manner misrepresent to its customers the quality or grade of products sold, the point of origin, or the size, weight or portion of food or beverage, or utilize false or deceptive merchandising terms or advertising. V. Where an item has a pre -marked price by the manufacturer or distributor, CONCESSIONAIRE shall not charge a price to the public higher than such pre -marked price without notice to and prior written approval of the CORPORATION. C. CONCESSIONAIRE shall at all times retain at each CONCESSION SPACE an experienced manager of high quality concessions facilities fully authorized to represent and act for it in the operation of the concession and to accept service of all notices provided for herein. At times when this manager is not present at the AIRPORT, CONCESSIONAIRE shall assign, or cause to be assigned, a qualified subordinate to be in charge of each CONCESSION SPACE, services and facilities and to be available at each CONCESSION SPACE to act for such manager. D. During the required hours of operation, CONCESSIONAIRE shall provide personnel in sufficient number and quality necessary to conveniently and efficiently serve the public at each CONCESSION SPACE. Such personnel shall be thoroughly qualified, familiar with the business, courteous, informative and helpful to the public. The attire of such personnel shall be of the highest character and in keeping with that worn by personnel in similar first -class businesses. Personnel shall be attired in uniforms and at all times possess visible identification as to their name and employer. E. CONCESSIONAIRE shall make all deliveries of supplies, goods and products in such manner and at such times and locations as the CORPORATION may reasonably approve. Emergency deliveries may be made at other times subject to prior arrangements with the CORPORATION. F. CONCESSIONAIRE shall comply with all applicable federal, state and local laws and regulations governing retail or food service establishments and shall allow duly authorized representatives of governmental entities access to each CONCESSION SPACE for inspection purposes. CONCESSIONAIRE agrees to obtain at its own expense, and maintain at all times, all licenses and certificates necessary for the operation of its establishment and to comply with all applicable health, safety and sanitary laws, regulations and inspections concerning same. G. The CORPORATION shall have the right to make reasonable objections to the quality of food or products sold, the character of the service rendered the public, and the appearance and condition of the CONCESSION SPACES. CONCESSIONAIRE agrees to promptly discontinue or remedy any objectionable practice or condition within five (5) days after written notice by the CORPORATION. Section 5.2 Products offered for sale. CONCESSIONAIRE shall prepare a list indicating items to be offered for sale and prices to be charged for each item substantially similar to the lists previously approved in agreements with the CONCESSIONAIRE's predecessor in interest, specifically including sale of newspapers, traveler necessities, books, magazines, souvenirs of local interest, and snacks and drinks. This item list shall be subject to approval by CORPORATION. CONCESSIONAIRE shall sell food and beverages and retail items only in accordance with the terms of this Agreement. CONCESSIONAIRE may provide such additional items as CORPORATION may authorize in writing. CORPORATION, from time to time, and at its sole discretion, may require CONCESSIONAIRE to offer for sale other items that CORPORATION determines are necessary to serve the traveling public. If CONCESSIONAIRE adds items substantially different than previously sold, CONCESSIONAIRE shall submit the new items and prices to CORPORATION for its prior written approval. CONCESSIONAIRE shall not offer for sale any food, beverage or retail or engage in any activity not specifically provided for under the terms of this Agreement, unless otherwise authorized in writing by CORPORATION. Section 5.3 Menus. CONCESSIONAIRE shall prepare a list indicating items to be offered for sale and prices to be charged for each item substantially similar to the lists previously approved in agreements with the CONCESSIONAIRE's predecessor in interest. The menu shall be subject to approval by CORPORATION. CONCESSIONAIRE shall sell food and beverages only in accordance with the terms of this Agreement. CONCESSIONAIRE may provide such additional items as CORPORATION may authorize in writing. CORPORATION, from time to time, and at its sole discretion, may require CONCESSIONAIRE to offer for sale other items that CORPORATION determines are necessary to serve the traveling public. If CONCESSIONAIRE adds items to its menu substantially different than previously sold, CONCESSIONAIRE shall submit the new menu and prices to CORPORATION for its prior written approval. CONCESSIONAIRE shall not offer for sale any food, beverage or retail or engage in any activity not specifically provided for under the terms of this Agreement, unless otherwise authorized in writing by CORPORATION. Section 5.4 Hours of Operation. CONCESSIONAIRE agrees to keep each CONCESSION SPACE open for business to the public on any day there is a scheduled airline flight. Minimum hours of operation each day are from not less than one and one- half (1 1/2) hours prior to the first scheduled airline departure until the later of (i) one-half (1/2) hour hour after the arrival of the last scheduled -airline arrival or (ii) the departure of the last scheduled -airline departure, unless otherwise authorized beforehand in writing by CORPORATION. Section 5.5 Care of Area. CONCESSIONAIRE agrees that it will keep each CONCESSION SPACE in a neat, clean, safe, sanitary and orderly condition at all times, and further agrees that it will keep each such area free at all times of all paper, rubbish, spills, and debris. CONCESSIONAIRE, at its own expense, shall collect and deposit all trash and refuse at frequent intervals at collection station locations specified by CORPORATION. Accumulation of boxes, cartons, barrels or other similar items shall not be permitted in any public area in the TERMINAL BUILDING. Section 5.6. Vending Machines. No amusement or vending machines or other machines operated by coins, tokens or credit cards shall be installed or maintained in or upon any CONCESSION SPACE except with the written permission of the CORPORATION. This prohibition includes, but not by way of limitation, sales from vending machines of such items as cigarettes, candy, maps, coffee, soft drinks, newspapers, stamps and insurance policies; telephones; dispensation of cash, money orders and checks; and operation of mechanical or electronic game devices, electronic video games, and entertainment devices. Section 5.7 Compliance with all laws and Regulations. CONCESSIONAIRE agrees not to use or permit any CONCESSION SPACE to be used for any purpose prohibited by the laws of the United States or the State of Colorado or the ordinances and resolutions of the Town of Gypsum or Eagle County, or AIRPORT rules and regulations, all as amended from time to time, and not otherwise authorized hereunder, and it further agrees that it will use each CONCESSION SPACE in accordance with all applicable federal, state and local laws and all rules and regulations adopted by the CORPORATION or Eagle County for the management, operation and control of the AIRPORT or TERMINAL BUILDING, either promulgated by the CORPORATION or Eagle County on its own initiative or in compliance with regulations or actions of the Federal Aviation Administration or other authorized federal agency. CONCESSIONAIRE further agrees to submit any report or reports or information which the CORPORATION is required by law or regulation to obtain from CONCESSIONAIRE or which CORPORATION may request relating to CONCESSIONAIRE'S operations. Section 5.8 Compliance with Environmental Requirements. CONCESSIONAIRE, in conducting any activity on any CONCESSION SPACE, shall comply with all applicable local, state or federal environmental rules, regulations, statutes, laws or orders (collectively "Environmental Regulations"), including but not limited to Environmental Regulations regarding the storage, use and disposal of hazardous materials or special wastes to the environment. CONCESSIONAIRE shall acquire all necessary federal, state, and local environmental permits and comply with all applicable federal and state environmental permit requirements. Section 5.9 Hazardous Use. CONCESSIONAIRE agrees that nothing shall be done or kept in any CONCESSION SPACE and no improvements, changes, alterations, additions, maintenance or repairs shall be made to any CONCESSION SPACE which might be unsafe or hazardous to any person or property. Further, CONCESSIONAIRE shall not do or permit to be done any act or thing upon any CONCESSION SPACE which will invalidate, suspend or increase the rate of any fire insurance policy required under this Agreement, or carried by CORPORATION, covering the TERMINAL BUILDING in which the CONCESSION SPACES are located or which, in the opinion of the Manager or his authorized representative, may constitute a hazardous condition that will increase the risks normally attendant upon the operations contemplated under this Agreement. If, by reason of any failure by CONCESSIONAIRE to comply with the provisions of this section, after receipt of notice in writing from CORPORATION, any fire insurance rate on the TERMINAL BUILDING in which the same is located, shall at any time be higher than it normally would be, then CONCESSIONAIRE shall pay the CORPORATION, on demand, that part of all fire insurance premiums paid by the CORPORATION which have been charged because of such violation or failure of CONCESSIONAIRE; provided, that nothing herein shall preclude CONCESSIONAIRE from bringing, keeping or using on or about the CONCESSION SPACES such materials supplies, equipment and machinery as are appropriate or customary in carrying on its business, or from carrying on the normal operations contemplated herein. Section 5.10 Structural, Electrical or System Overloading. CONCESSIONAIRE agrees that nothing shall be done or kept on any CONCESSION SPACE and no improvements, changes, alterations, additions, maintenance or repairs shall be made to any CONCESSION SPACE which might impair the structural soundness of the TERMINAL BUILDING, result in an overload of utility, plumbing, or HVAC systems serving the TERMINAL BUILDING or interfere with electric, electronic or other equipment at the AIRPORT. In the event of violations hereof, CONCESSIONAIRE agrees to immediately remedy the violation at CONCESSIONAIRE's expense. Section 5.11 Noise, Odors, Vibrations and Annoyances. CONCESSIONAIRE shall conduct its operations in an orderly and proper manner so as not to commit any nuisance in the CONCESSION SPACES or annoy, disturb or be offensive to others in the TERMINAL BUILDING and shall take all reasonable measures, using the latest known and practicable devices and means, to eliminate any unusual, nauseous or objectionable noise, gases, vapors, odors and vibrations and to maintain the lowest possible sound level in its operations. Section 5.12. Accessibility. CONCESSIONAIRE shall not do or permit to be done anything which might interfere with the effectiveness or accessibility of utility, heating, ventilating or air conditioning systems or portions thereof on or in any CONCESSION SPACE or elsewhere on the AIRPORT, nor do or permit to be done anything which may interfere with free access and passage in any CONCESSION SPACE or the public areas adjacent thereto, or hinder police, firefighting or other emergency personnel in the discharge of their duties. CONCESSIONAIRE shall not place any additional lock of any kind upon any window or interior or exterior door in any CONCESSION SPACE, or make any change in any existing door or window lock or the mechanism thereof, unless a key therefor is maintained on the CONCESSION SPACE, nor refuse, upon the expiration or sooner termination of this Agreement, to surrender to CORPORATION any and all keys to the interior or exterior doors on any CONCESSION SPACE, whether said keys were furnished to or otherwise procured by CONCESSIONAIRE. If any keys furnished to CONCESSIONAIRE by CORPORATION are lost, CONCESSIONAIRE shall pay CORPORATION, on demand, the cost for replacement thereof. Section 5.13 No Action. CONCESSIONAIRE agrees not to allow or permit any sale by auction or hawking on any CONCESSION SPACE. Section 5.14 Restrictions on Changes and Alterations. CONCESSIONAIRE agrees not to improve, change, alter, add to, remove or demolish any Concession Space or any improvements on any CONCESSION SPACE without the prior written consent of the CORPORATION. CONCESSIONAIRE must comply with all conditions which may be imposed by the CORPORATION, in its sole discretion. Full and complete specifications for all work and improvements, along with a statement of the time required to complete such work shall be submitted to and approved in writing by the CORPORATION before construction work commences. Copies of plans for all changes or alterations shall be 10 given to the CORPORATION for review and written approval prior to commencement of construction. Building and other permits shall be the responsibility of CONCESSIONAIRE. First -class standards of design and construction will be required in connection with all such work, facilities and improvements, and all improvements shall conform with applicable statutes, ordinances, building codes, regulations and other general requirements of CORPORATION, procurement of general liability and builder's risk insurance and performance and payment bonds, and compliance with worker's compensation, prevailing wage, MBE IWBE participation requirements, and compliance with the Americans with Disabilities Act, 42 U.S.C.12,000 et seq.,and its regulations. The approval given by CORPORATION shall not constitute a representation or warranty as to such conformity; responsibility therefore shall at all times remain with CONCESSIONAIRE. Approval by CORPORATION shall extend to and include consideration of architectural and aesthetic matters, and CORPORATION expressly reserves the right to reject any designs submitted and to require CONCESSIONAIRE to resubmit designs and layout proposals until they meet with CORPORATION's approval. CORPORATION agrees to act promptly upon a request for approval of such plans and for revisions thereto. Section 5.15 Title to Improvements. CONCESSIONAIRE agrees that all improvements to any CONCESSION SPACE, including approved changes and renovations, which are affixed to the realty, shall become the property of the CORPORATION upon their completion unless not accepted by CORPORATION. Section 5.16 Removal of CONCESSIONAIRE's Equipment. CONCESSIONAIRE shall retain title to and shall remove, at its sole cost, prior to the expiration or termination of this Agreement, all of CONCESSIONAIRE's Equipment, as hereinafter defined. "CONCESSIONAIRE's Equipment" shall mean all equipment, apparatus, machinery, signs, furnishings, trade fixtures and personal property installed by CONCESSIONAIRE and used in the operation of the business of CONCESSIONAIRE (as distinguished from the use and operation of the CONCESSION SPACES) which is listed on an annual inventory list submitted by CONCESSIONAIRE and approved by the CORPORATION. If such removal shall injure or damage any CONCESSION SPACE, CONCESSIONAIRE agrees, at its sole cost, at or prior to the expiration or termination of this Agreement, to repair such injury or damage in good and workmanlike fashion and to place the CONCESSION SPACE in the same condition as the CONCESSION SPACE would have been if such CONCESSIONAIRE's Equipment had not been installed. If CONCESSIONAIRE fails to remove any of CONCESSIONAIRE's Equipment by the expiration or termination of this Agreement, CORPORATION may, at its option, keep and retain any such CONCESSIONAIRE's Equipment or dispose of the same and retain any proceeds therefrom, and CORPORATION shall be entitled to recover from CONCESSIONAIRE any costs of CORPORATION in removing the same and in restoring the CONCESSION SPACE in excess of the actual proceeds, if any, received by CORPORATION from disposition thereof. ARTICLE 6 UTILITIES AND SERVICES Section 6.1 Corporation Improvements and Services. CORPORATION shall provide and maintain water, sewer, general lighting, electrical power, and heating and air -conditioning for the TERMINAL BUILDING and make them available to each CONCESSION SPACE. If CONCESSIONAIRE requires additional lighting, electrical power, telephone outlets, or adjustments to the air conditioning system, such additional improvements or services shall be subject to the prior written approval of CORPORATION, and any such improvements shall be made at CONCESSIONAIRE's expense. Section 6.2 Common Use Services. The CORPORATION may establish common use services at the TERMINAL BUILDING, including but not limited to cleaning, trash and refuse removal, deliveries, industrial waste handling, recycling, and security guards. The CORPORATION reserves the right to establish charges for common use services based upon documented actual costs. Trash, sewer, and deliveries will be common use services which CONCESSIONAIRE may be required to use and pay its prorata actual share; however, other common use services may be utilized at CONCESSIONAIRE's option. CONCESSIONAIRE agrees to pay the charges for those common use services which are utilized by CONCESSIONAIRE Section 6.3 Interruption of Services. CONCESSIONAIRE agrees that CORPORATION shall not be liable for failure to supply any utility services. CORPORATION reserves the right to temporarily discontinue utility services at such time as may be necessary by reason of accident, unavailability of employees, repairs, alterations or improvements or whenever by reason of strikes, lockouts, riots, acts of God or any other happenings beyond the control of the CORPORATION, CORPORATION is unable to furnish such utility services. CORPORATION shall not be liable for damages to persons or property for any such discontinuance, nor shall such discontinuance in any way be construed as cause for abatement of compensation or operate to release the CONCESSIONAIRE from any of its obligations hereunder, except as otherwise provided in the section entitled "Damage, Destruction or Loss." ARTICLE 7 Indemnity and Insurance Section 7.1 Indemnity. CONCESSIONAIRE hereby agrees to release and indemnify and save harmless County and CORPORATION, its officers, agents and employees from and against any and all loss of or damage to property, or injuries to or death of any person or persons, including property and employees or agents of the CORPORATION, and shall defend, indemnify and save harmless County and CORPORATION, its officers, agents and employees from any and all claims, damages, suits, costs, expense, liability, actions, penalties or proceedings of any kind or nature whatsoever, including worker's compensation claims, of or by anyone whomsoever, in any way resulting from, or arising out of, directly or indirectly, its operations in connection herewith, its construction of the Concession Improvements, or its use or occupancy of any portion of the AIRPORT and including acts and omissions of officers, employees, representatives, suppliers, invitees, contractors, subcontractors, and agents of the CONCESSIONAIRE; provided, that the CONCESSIONAIRE need not release, indemnify or save harmless the County and CORPORATION, its officers, agents and employees from damages resulting from the sole negligence of the County's and CORPORATION's officers, agents and 12 employees. The minimum insurance requirements prescribed herein shall not be deemed to limit or define the obligations of CONCESSIONAIRE hereunder. Section 7.2 Insurance. CONCESSIONAIRE further agrees to secure at its own expense, and to keep in force at all times during the Term hereof, Comprehensive General Public Liability Insurance in the minimum amount of One Million Dollars ($1,000,000) bodily injury and property damage combined single limit each occurrence. The required insurance coverage also shall include Personal Injury, Blanket Contractual Coverage for this Agreement, and Independent Contractors Coverage. CONCESSIONAIRE shall also maintain in force, during the term of this Agreement, Property and General Liability Insurance, Comprehensive Form, which shall insure CONCESSIONAIRE, pursuant to this Agreement, in the minimum amount of One Million Dollars ($1,000,000.00), Bodily Injury and Property Damage Combined Single Limit per occurrence. CONCESSIONAIRE shall also maintain in force during the term of this Agreement Workers Compensation and Employers Liability Insurance in accordance with the provisions of Colorado law. The limit of such insurance coverage shall be for statutory Worker's Compensation benefits, and shall not be less than One Hundred Thousand Dollars ($100,000.00) for employer's liability insurance. CONCESSIONAIRE agrees that County and CORPORATION shall be named as an additional insured under such policy or policies of insurance and said policy or policies shall include the severability of interest "cross over" provision. A certificate or certificates evidencing such insurance coverage is attached as Exhibit B to this Agreement, and said certificates) shall provide that such insurance coverage will not be canceled or reduced without at least thirty (30) days prior written notice to CORPORATION. At least ten (10) days prior to the expiration of said insurance policy or policies, a certificate showing that such insurance coverage has been renewed or extended shall be filed with CORPORATION. If such coverage is canceled or reduced, CONCESSIONAIRE shall within seven (7) days of notice of cancellation or reduction, but in any event more than fifteen (15) days before the effective date of said cancellation or reduction, file with CORPORATION a certificate showing that the required insurance has been reinstated in full, or provided through another insurance company or companies. In the event that CONCESSIONAIRE shall at any time fail to provide CORPORATION with the insurance required under this section, CORPORATION may immediately terminate this Agreement. The insurance carried by the CONCESSIONAIRE, as required by this Agreement, shall be primary over any insurance carried by the CORPORATION for the CORPORATION's own protection. A copy of the insurance representative's license, or other legal proof of his/her authorization to sign the Certificate of Insurance for and on behalf of the insurance company /companies shown thereon, must be attached to the Certificate of Insurance. Facsimile stamped signature on the Certificate will not be accepted. The Certificate must be signed by the insurance company's authorized representative. The CORPORATION will conditionally accept self-insurance under this section, subject to review and approval of appropriate County and State requirements. All preceding coverages and limits will apply. 13 Section 7.3 Intentionally Omitted. Section 7.4 No Personal Liability. No director, officer or employee of either party hereto shall be held personally liable under this Agreement or because of its execution or attempted execution. Section 7.5 Taxes, Licenses, Liens and Fees. CONCESSIONAIRE agrees to promptly pay all taxes, excises, license fees and permit fees of whatever nature applicable to its operations hereunder and to take out and keep current all municipal, state or federal licenses required for the conduct of its business at and upon each CONCESSION SPACE and further agrees not to permit any of said taxes, excises, license fees or permit fees to become delinquent. CONCESSIONAIRE also agrees not to permit any mechanic's or materialman's or any other lien to become attached or be foreclosed upon any CONCESSION SPACE or improvements thereto, or any part or parcel thereof, by reason of any work or labor performed or materials furnished by any mechanic or materialman. CONCESSIONAIRE agrees to furnish to the CORPORATION, upon request, duplicate receipts or other satisfactory evidence showing the prompt payment by it of Social Security, unemployment insurance and worker's compensation insurance, and all required licenses and all taxes. CONCESSIONAIRE further agrees to promptly pay when due all bills, debts and obligations incurred by it in connection with its operations hereunder and not to permit the same to become delinquent and to suffer no lien, mortgage, judgment or execution to be filed against any CONCESSION SPACE or improvements thereon which will in any way impair the rights of the CORPORATION under this Agreement. ARTICLE 8 DEFAULT AND REMEDIES Section 8.1 Default. CONCESSIONAIRE shall be in default under this Agreement if CONCESSIONAIRE: A. Fails to timely pay when due to CORPORATION the compensation or any other payment required hereunder; or B. Is in default under any other Agreement with CORPORATION, Eagle County or Town of Gypsum; or C. Becomes insolvent, or takes the benefit of any present or future insolvency or bankruptcy statute, or makes a general assignment for the benefit of creditors, or consents to the appointment of a receiver, trustee or liquidator of any or substantially all of its property; or D. Transfers its interest under this Agreement, without the prior written approval of CORPORATION, by reason of death, operation of law, assignment, sublease or otherwise, to any other person, entity or corporation; or E. Fails to timely submit plans and specifications, and other preconstruction submittals, fails to promptly begin and complete construction of concession 14 improvements, or fails to occupy and use the CONCESSION SPACE after construction is completed; or F. Abandons, deserts or vacates any CONCESSION SPACE; or G. Suffers any lien or attachment to be filed against any CONCESSION SPACE, the AIRPORT or CORPORATION's property because of any act or omission of CONCESSIONAIRE, and such lien or attachment is not discharged or contested by CONCESSIONAIRE in good faith by proper legal proceedings within 20 days after receipt of notice thereof by CONCESSIONAIRE; or H. Fails to keep, perform and observe any other promise, covenant or agreement set forth in this Agreement and such failure continues for a period of more than 30 days after delivery by CORPORATION of a written notice of such breach or default, except where a shorter period is specified herein, or where fulfillment of its obligation requires activity over a period of time and CONCESSIONAIRE within 10 days of notice commences in good faith to perform whatever may be required to correct its failure to perform and continues such performance without interruption except for causes beyond its control; or Gives its permission to any person to use for any illegal purpose any portion of the TERMINAL BUILDING made available to CONCESSIONAIRE for its use under this Agreement. Section 8.2 Remedies. If CONCESSIONAIRE defaults in any of the covenants, terms and conditions herein, the CORPORATION may exercise any one or more of the following remedies: A. CORPORATION may elect to allow this Agreement to continue in full force and effect and to enforce all of CORPORATION's rights and remedies hereunder, including without limitation the right to collect compensation as it becomes due together with Past Due Interest; or B. CORPORATION may cancel and terminate this Agreement and repossess any CONCESSION SPACE, with or without process of law, and without liability for so doing, upon giving 30 days written notice to CONCESSIONAIRE of its intention to terminate, at the end of which time all the rights hereunder of the CONCESSIONAIRE shall terminate, unless the default, which shall have been stated in such notice, shall have been cured within such 30 days. Notwithstanding the foregoing, during the Term herein, CONCESSIONAIRE shall be allowed only two notices of default hereunder which it may cure within the time specified in this section. The third notice shall be final and without opportunity for cure and CORPORATION, in its sole discretion, may elect therein (1) to cancel and terminate all of the rights hereunder of the CONCESSIONAIRE, and CORPORATION may, upon the date specified in such third notice, re -enter the CONCESSION SPACE and remove therefrom all property of the CONCESSIONAIRE and store the same at the expense of the CONCESSIONAIRE, or (2) to proceed under subparagraph C. below. If CORPORATION elects to terminate, CONCESSIONAIRE shall be liable to CORPORATION for all amounts owing at the time of termination, including but 15 not limited to compensation due plus interest thereon at the Past Due Interest Rate together with any other amount to fully compensate CORPORATION for all loss of compensation, damages, and costs, including attorney's fees, caused by CONCESSIONAIRE's failure to perform its obligations hereunder, or which in the ordinary course would likely result therefrom. C. CORPORATION may elect to re -enter and take possession of any CONCESSION SPACE and expel CONCESSIONAIRE or any person claiming under CONCESSIONAIRE, and remove all effects as may be necessary, without prejudice to any remedies for damages or breach. Such re -entry shall not be construed as termination of this Agreement unless a written notice specifically so states; however, CORPORATION reserves the right to terminate the Agreement at any time after re -entry. Following re -entry, the CORPORATION may re -let said CONCESSION SPACE, or any portion thereof, for the account of CONCESSIONAIRE, on such terms and conditions as CORPORATION may choose, and may make such repairs or improvements as it deems appropriate to accomplish the re -letting. CORPORATION shall not be responsible for any failure to re -let or any failure to collect compensation due for such re -letting. CONCESSIONAIRE shall be liable to CORPORATION for all costs of re -letting, including attorney's fees and repairs or improvements. Notwithstanding re -entry by CORPORATION, CONCESSIONAIRE shall continue to be liable for all amounts due as compensation under this Agreement, on the dates specified and in such amounts as would be payable if default had not occurred. Upon expiration of the Term, or any earlier termination of the Agreement by CORPORATION, CORPORATION, having credited to the account of CONCESSIONAIRE any amounts recovered through re -letting, shall refund, without interest, any amount which exceeds the compensation, damages, and costs payable by CONCESSIONAIRE under this Agreement. Section 8.3 Remedies Cumulative. The remedies provided in this Agreement shall be cumulative and shall in no way affect any other remedy available to CORPORATION under law or equity. Section 8.4 Waivers. No failure of CORPORATION to insist upon the strict performance of a term, covenant or agreement contained in this Agreement, no failure by CORPORATION to exercise any right or remedy under this Agreement, and no acceptance of full or partial payment during the continuance of any default by CONCESSIONAIRE shall constitute a waiver of any such term, covenant or agreement or a waiver of any such right or remedy or a waiver of any default by CONCESSIONAIRE. Article 9 DAMAGE, DESTRUCTION OR LOSS Section 9.1 Damage to or Destruction of CONCESSION SPACE. If a CONCESSION SPACE, or any portion thereof, is destroyed or damaged by fire or otherwise to an extent which renders it unusable, CORPORATION may rebuild or repair any portions of the building structure destroyed or damaged, and, if the cause was beyond the control of CONCESSIONAIRE, the obligation of CONCESSIONAIRE to pay 16 the compensation hereunder shall abate as to such damaged or destroyed portions during the time they are unusable. If CORPORATION elects not to proceed with the rebuilding or repair of the building structure, it shall give notice of its intent within 99 days after the destruction or damage. CONCESSIONAIRE may then, at its option, cancel and terminate this Agreement. Section 9.2 Cooperation in Event of Loss. If CORPORATION elects to rebuild, CONCESSIONAIRE must replace all CONCESSION SPACE improvements at its sole cost. CORPORATION and CONCESSIONAIRE shall cooperate with each other in the collection of any insurance proceeds which may be payable in the event of any loss or damage. Section 9.3 Loss or Damage to Property. CORPORATION shall not be liable for any loss of property by theft or burglary from the AIRPORT or for any damage to person or property on the AIRPORT resulting from lightning, or water, rain or snow, which may come into or issue or flow from any part of the AIRPORT, or from the pipes, plumbing, wiring, gas or sprinklers thereof or that may be caused by the CORPORATION's employees or any other cause, and CONCESSIONAIRE agrees to make no claim for any such loss or damage at any time, except for any abatement of compensation or right to insurance proceeds provided for in this Section. Section 9.4 Mutual Waiver/insurance Coverage. CORPORATION and CONCESSIONAIRE each waive any and every claim for recovery from the other for any and all loss of or damage to the CONCESSION SPACE or to the contents thereof, which loss or damage is covered by valid and collectible fire and extended insurance policies, to the extent that such loss or damage is recoverable under such insurance policies. Since this mutual waiver will preclude the assignment of any such claim by subrogation or otherwise to an insurance company or any other person, CONCESSIONAIRE agrees to give to each insurance company which has issued, or may issue, to the CONCESSIONAIRE policies of fire and extended coverage insurance, written notice of the terms of this mutual waiver, and to have such insurance policies properly endorsed, if necessary, to prevent the invalidation of the insurance coverage by reason of this waiver. Article 10 MISCELLANEOUS PROVISIONS Section 19.1 Agreement Binding Upon Successors. This Agreement, subject to the provisions of the section entitled "Assignment", shall be binding upon and extend to the heirs, personal representatives, successors and assigns of the respective parties hereto. Section 19.2 Agreement Made in Colorado. This Agreement shall be deemed to have been made in and shall be construed in accordance with the laws of the State of Colorado. Section 19.3 Agreement Subordinate to Agreements with "United States". This Agreement is subject and subordinate to the terms, reservations, restrictions and conditions of any existing or future agreements between CORPORATION or Eagle County and the United States, the execution of which has been or may be required as a condition precedent to the transfer of federal rights or property to Eagle County for AIRPORT purposes and the expenditure of federal funds for the development of the 17 AIRPORT or AIRPORT system. The provisions of the attached Appendices 1, 2 and 3 are incorporated herein by reference. Section 19.4 Agreement Subordinate to Ground Lease with Eagle County. This agreement is subject to the written approval of Eagle County and is subject and subordinate to the terms, reservations, restrictions and conditions of the Ground Lease and any existing or future agreements between CORPORATION and Eagle County. Section 19.5 Assignment. CONCESSIONAIRE shall not assign this Agreement or in any way transfer or hypothecate any of its interest in this Agreement without first obtaining the written consent of the CORPORATION, which consent will not be unreasonably withheld, provided that CONCESSIONAIRE acknowledges that CORPORATION need not consent to any such assignment or subletting at any time, and to the extent, that CORPORATION has space available to lease to other concessionaires. As used herein, "assignment" means and includes, but is not limited to, (i) the grant or transfer of any right, title, possession, lien, encumbrance, security interest or other interest in, on or to five percent (5%) or more of the stock or other ownership interest of CONCESSIONAIRE, (ii) grants or transfers to a single person or entity, including to any other person(s)and entity(ies) directly or indirectly controlled by it or which directly or indirectly control it, of any right, title, possession, lien, encumbrance security interest or other interest in, on or to the stock or other ownership interest which aggregate five percent (5%) or more of the stock or other ownership interest of CONCESSIONAIRE, (iii) if CONCESSIONAIRE is a limited liability company, a change in the chief operating officer, manager or other person responsible for the day -to -day performance by CONCESSIONAIRE of the Agreement, (iv) the grant or transfer of any right, title, lien, encumbrance, security interest or other interest in, on or to some or all of the income or profits (however they may be measured or defined, e.g., gross income, gross profit, operating profit, net profit) of CONCESSIONAIRE, and (v) the grant or transfer of any right, title, lien, encumbrance, security interest or other interest in, on or to some or all of the cash flow (however it may be measured or defined) of CONCESSIONAIRE. If CONCESSIONAIRE shall assign or attempt to assign its interest in the whole or any part of this Agreement in violation of this section, such assignment shall be void and this Agreement shall thereupon automatically terminate. CORPORATION's consent to one assignment shall not be deemed to be a consent to any subsequent assignment. Section 19.6 Bond Indentures. This Agreement is in all respects subject and subordinate to any and all CORPORATION bond indentures applicable to the TERMINAL BUILDING and AIRPORT and to any other bond indentures which should amend, supplement or replace such bond indentures. The parties to this Agreement acknowledge and agree that all property subject to this Agreement which was financed by the net proceeds of tax-exempt bonds is owned by CORPORATION or Eagle County, and CONCESSIONAIRE agrees not to take any action that would impair, or omit to take any action required to confirm, the treatment of such property as owned by CORPORATION or Eagle County for purposes of Section 142(b) of the Internal Revenue Code of 1986, as amended. In particular, the CONCESSIONAIRE agrees to make, and hereby makes, an irrevocable election (binding on itself and all successors in interest under this Agreement) not to claim depreciation or an investment credit with respect to any property subject to this Agreement which was financed by the net proceeds of tax-exempt bonds and shall execute such forms and take such other action as CORPORATION or Eagle County may request in order to implement such election. is Section 19.7 Force Majeure. Neither party hereto shall be liable to the other for any failure, delay or interruption in the performance of any of the terms, covenants or conditions of this Agreement due to causes beyond the control of that party, including without limitation strikes, boycotts, labor disputes, embargoes, shortages of materials, acts of God, acts of the public enemy, acts of superior governmental authority, weather conditions, floods, riots, rebellion, sabotage or any other circumstance for which such party is not responsible or which is not in its power to control, but in no event shall this paragraph be construed so as to allow CONCESSIONAIRE to reduce or abate its obligation to pay the Percentage Compensation Fee herein. Section 19.8 Inconvenience During Construction. CONCESSIONAIRE recognizes that from time to time during the Term of this Agreement, it may be necessary for CORPORATION to commence or complete programs of construction, expansion, relocation, maintenance and repair in order that the Airfield, TERMINAL BUILDING and its facilities may be completed and operated as Eagle County and ECAT determines, and that such construction, expansion, relocation, maintenance and repair may inconvenience the CONCESSIONAIRE in its operation at the AIRPORT. CONCESSIONAIRE agrees that no liability shall attach to CORPORATION or Eagle County, its officers, agents, employees, contractors, subcontractors and representatives by way of such inconveniences, and CONCESSIONAIRE waives any right to claim damages or other consideration therefrom. Section 19.9 Nondiscrimination. In connection with the performance of its rights, privileges and obligations under this Agreement, CONCESSIONAIRE agrees not to refuse to hire, discharge, promote or demote, or to discriminate in matters of compensation against any person otherwise qualified, solely because of race, color, religion, national origin, gender, age, military status, sexual orientation, marital status, or physical or mental disability, and CONCESSIONAIRE further agrees to insert the foregoing provision in all subcontracts hereunder. CONCESSIONAIRE further agrees to the provisions set forth in Appendix 4, and to insert the provisions thereof into all subcontracts hereunder. CONCESSIONAIRE further agrees to the provisions regarding Disadvantaged Business Enterprises set forth in Appendix 5. Section 19.19 Not Partnership. Notwithstanding the provisions herein for payment by CONCESSIONAIRE to CORPORATION of sums based upon a percentage of Gross Revenues, it is expressly understood and agreed that the CORPORATION shall not be construed or held to be a partner, associate or joint venturer of CONCESSIONAIRE in the conduct of its business. CONCESSIONAIRE shall at all times have the status of an independent contractor without the right or authority to impose tort or contractual liability upon the CORPORATION. Section 19.11 Notices. Notices. All notices required to be given to CORPORATION or CONCESSIONAIRE hereunder shall be in writing and sent by first class mail, facsimile (with an original by first class mail),or personal delivery to: CORPORATION: Aviation Director Eagle County Air Terminal Corporation P.O. Box 859 Eagle, Colorado 81631 Telephone: (979) 328-2689 19 Fax: (970) 328-2687 Copy to: Eagle County Attorney's Office P.D. Box 850 Eagle, CO 81631 Telephone: (970) 328-8685 Fax: (970)328-8699 CONCESSIONAIRE: Dave Wagner The Paradies Shops, Inc. Senior Director of Food and Beverage 2849 Paces Ferry Road Overlook I, 4th Floor Atlanta, GA 30339 Phone: 404-494-3310 Fax: Either party hereto may designate in writing from time to time the address of substitute or supplementary persons within the State of Colorado to receive such notices. The effective date of service of any such notice shall be three calendar days after the date such notice is mailed, the date it is personally delivered or the first business day after delivery by facsimile. Section 10.12 Paragraph Headings. The paragraph headings herein are for convenience in reference only and are not intended to define or limit the scope of any provision of this Agreement. Section 10.13 Patents, Trademarks and Copyrights. CONCESSIONAIRE represents that it is the owner of or fully authorized to use any and all services, processes, machines, articles, marks, names or slogans used by it in its operations under this Agreement. CONCESSIONAIRE agrees to save and hold harmless CORPORATION, its officers, employees, agents and representatives from any loss, liability, expense, suit or claim for damages in connection with any actual or alleged infringement of any patent, trademark or copyright arising from any alleged or actual unfair competition or other similar claim arising out of the operations of CONCESSIONAIRE under this Agreement. Section 10.14 Security. CONCESSIONAIRE shall cause its officers, contractors, agents and employees to comply with any and all existing and future security regulations (including Security Plans) adopted by CORPORATION or Eagle County pursuant to Department of Homeland Security, Transportation Security Administration, and Federal Aviation Administration Regulations, as it may be amended from time to time. Section 10.15 Severability. If any provision in this Agreement is held by a court to be invalid, the validity of other provisions herein which are severable shall be unaffected. Section 10.16 Third Parties. This Agreement does not, and shall not be deemed or construed to, confer upon or grant to any third party or parties (except parties to whom the CONCESSIONAIRE may assign this Agreement in accordance with the terms hereof, and except any successor to CORPORATION) any right to claim damages or to bring any suit, action or other proceeding against either CORPORATION or the 20 CONCESSIONAIRE because of any breach hereof or because of any of the terms, covenants, agreements and conditions herein. Section 10.17 Entire Agreement. The parties acknowledge and agree that the provisions herein constitute the entire agreement and that all representations made by any officer, agent or employee of the respective parties unless included herein are null and void and of no effect. No alterations, amendments, changes or modifications, unless expressly reserved to the CORPORATION herein, shall be Valid unless executed by an instrument in writing by all the parties with the same formality as this Agreement. Section 10.18 Concessionaire's Warranty of Its Ability to Enter Agreement. CONCESSIONAIRE represents and warrants, which representation and warranty form a material part of the consideration of this Agreement without which CORPORATION would not enter into this Agreement, that it is authorized to and lawfully able to enter into and perform, and is under no prohibition against entering into and performing this Agreement and that entering into this Agreement and performing pursuant to the terms hereof shall not constitute or cause a default or breach of any other contract, covenant or duty. HH rest of page intentionally left blank; next page is signature page 1111 21 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. CORPORATION Eagle County Air Terminal Corporation B Lc;�&� Y: Jillian Ryan, President Attest: 5 - Secretary CONCESSIONAIRE The Paradies Shops, Inc. By: r e.,4 STATE OF CSA] j ss. COUNTY OF � } The foregoing instrument was acknowledged before me this ,L'day of 2017, by My commission expires: i a �A Ni?'l'AIiV PUBLIC My 0110 unh'Y31n Notary Public a 1}2U2U •S? } C'orrn$Y 22 EXHIBIT A TERMINAL SPACE PLAN IDENTIFYING CONCESSION SPACES 23 - L �►rrmm�nnrmm�nmrr,� r RP A8 0 �l 11111111 ■ 11111111III� 11111111 � 111111111 �.r:-_ EXHIBIT B INSURANCE CERTIFICATE 24 APPENDIX NO. 1 STANDARD FEDERAL ASSURANCES NOTE: As used below the term "contractor" shall mean and include the CONCESSIONAIRE," and the term "sponsor" shall mean the "CORPORATION." During the term of this contract, the contractor, for itself, its assignees and successors in interest (hereinafter referred to as the "contractor ") agrees as follows: 1. Compliance with Regulations. The contractor shall comply with the Regulations relative to nondiscrimination in federally assisted programs of the Department of Transportation (hereinafter "DOT ") Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time (hereinafter referred to as the Regulations),which are herein incorporated by reference and made a part of this contract. 2. Nondiscrimination. The contractor, with regard to the work performed by it during the contract, shall not discriminate on the grounds of race, color, sex, creed or national origin in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The contractor shall not participate either directly or indirectly in the discrimination prohibited by section 21.5 of the Regulations, including employment practices when the contract covers a program set forth in Appendix B of the Regulations. 3. Solicitations for Subcontractors, Including Procurement of Materials and Equipment. In all solicitations either by competitive bidding or negotiation made by the contractor for work to be performed under a subcontract, including procurement of materials or leases of equipment, each potential subcontractor or supplier shall be notified by the contractor of the contractor's obligations under this contract and the Regulations relative to nondiscrimination on the grounds of race, color, or national origin. 4. Information and Reports. The contractor shall provide all information and reports required by the Regulations or directives issued pursuant thereto and shall permit access to its books, records, accounts other sources of information, and its facilities as may be determined by the sponsor or the Federal Aviation Administration (FAA) to be pertinent to ascertain compliance with such Regulations, orders, and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish this information, the contractor shall so certify to the sponsor of the FAA, as appropriate, and shall set forth what efforts it has made to obtain the information. 5. Sanctions for Noncompliance. In the event of the contractor's noncompliance with the nondiscrimination provisions of this contract, the sponsor shall impose such contract sanctions as it or the FAA may determine to be appropriate, including, but not limited to: a. Withholding of payments to the contractor under the contract until the contractor complies, and 1 or b. Cancellation, termination, or suspension of the contract, in whole or in part. 25 6. Incorporation of Provisions. The contractor shall include the provisions of paragraphs 1 through 5 in every subcontract, including procurement of materials and leases of equipment, unless exempt by the Regulations or directives issued pursuant thereto. The contractor shall take such action with respect to any subcontract or procurement as the sponsor or the FAA may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or supplier as a result of such direction, the contractor may request the sponsor to enter into such litigation to protect the interests of the sponsor and, in addition, the contractor may request the United States to enter into such litigation to protect the interests of the United States. 26 APPENDIX NO. 2 STANDARD FEDERAL ASSURANCES NOTE: As used below, the term "DDT" means the United States Department of Transportation. 1. CONCESSIONAIRE for itself, 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, the CONCESSIONAIRE 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. 2. The CONCESSIONAIRE for itself, 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: (1) that no person on the grounds of race, color, sex, creed 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, (2) 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, sex, creed or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the CONCESSIONAIRE 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. 27 APPENDIX NO. 3 NONDISCRIMINATION IN AIRPORT EMPLOYMENT OPPORTUNITIES CONCESSIONAIRE assures that it will comply with pertinent statutes, Executive Orders and such rules as are promulgated to assure that no person shall, on the grounds of race, creed, color, national origin, sex, age, or handicap be excluded from participating in any activity conducted with or benefiting from Federal assistance. This Provision obligates the CONCESSIONAIRE or its transferee for the period during which Federal assistance is extended to the AIRPORT program, except where Federal assistance is to provide or is in the form of personal property or real property or an interest therein or structures or improvements thereon. In these cases, this Provision obligates the CONCESSIONAIRE or any transferee for the longer of the following periods: (a) the period during which the property is used by the sponsor or any transferee for a purpose for which Federal assistance is extended, or for another purpose involving the provision of similar services or benefits; or (b) the period during which the AIRPORT sponsor or any transferee retains ownership or possession of the property. In the case of contractors, this Provision binds the contractors from the bid solicitation period through the completion of the contract. It is unlawful for AIRPORT operators and their lessees, tenants, CONCESSIONAIREs and contractors to discriminate against any person because of race, color, national origin, sex, creed, or handicap in public services and employment opportunities. 28 APPENDIX NO.4 LEASE PROVISIONS REQUIRED OR SUGGESTED BY THE FEDERAL AVIATION ADMINISTRATION 1. Terminal Corporation agrees to operate the Leased Premises for the use and benefit of the public, more specifically as follows: a. To furnish good, prompt, and efficient services adequate to meet all the demands for its services at the AIRPORT, b. To furnish said services on a fair, equal, and non - discriminatory basis to all users thereof, and c. To charge fair, reasonable, and non - discriminatory prices for each unit of sale or service, provided that Terminal Corporation may be allowed to make reasonable and non - discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. 2. Terminal Corporation, 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 otherwise be subjected to discrimination in the use of said facilities. b. 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. c. Terminal CORPORATION 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, as said Regulations may be amended. In the event of breach of any of the above non - discriminatory covenants, the County shall have the right to terminate the Lease and to re-enter and repossess the Leased Premises and the facilities thereon, and hold the same as if said Lease had never been made or issued. This provision does not become effective until the procedures of 49 CPR Part 21 are followed and completed, including expiration of appeal rights. 3. Affirmative Action. a. Terminal Corporation assures that it will undertake an affirmative action program, as required by 14 CFR Part 152, Subpart E, to ensure that no person shall, on the ground of race, creed, color, national origin, or sex, be excluded from participating in any employment, contracting, or leasing activities covered in 14 CFR Part 152, Subpart E. Terminal CORPORATION assures that no person 29 shall be excluded, on these grounds, from participating in or receiving the services or benefits of any program or activity covered by this subpart. The Terminal CORPORATION assures that it will require that its covered organizations provide assurance to the grantee that they similarly will undertake affirmative action programs and that they will require assurances from their sub organization, as required by 14 CPR Part 152, Subpart E, to the same effect. b. Terminal Corporation agrees to comply with any affirmative action plan or steps for equal employment opportunity required by 14 CFR, Part 152, Subpart E, as part of the affirmative action program or by any Federal, state or local agency or court, including those resulting from a conciliation Lease, a consent decree, court order, or similar mechanism. Terminal Corporation agrees that state or local affirmative action plan will be used in lieu of any affirmative action plan or steps required by 14 CFR Part 152, Subpart E only when they fully meet the standards set forth in 14 CFR 152.409. Terminal Corporation agrees to obtain a similar assurance from its sub - lessees' covered organizations, and to cause them to require a similar assurance of their covered sub organizations, as required by 14 CFR Part 152, Subpart E. 30 Appendix No. 5 DISADVANTAGED BUSINESS ENTERPRISE PARTICIPATION 1. GENERAL. Except as the context otherwise requires and unless otherwise expressly provided herein, the capitalized terms in this Appendix to the Agreement shall have the same meaning as any similarly capitalized terms defined in the Agreement or in any appendix thereto. 2. DBE OBLIGATION. This Agreement is subject to the requirements of the U.S. Department of Transportation's regulations, 49 CFR Part 23, Subpart F. The CONCESSIONAIRE agrees that it will not discriminate against any business owner because of the owner's race, color, national origin, or sex in connection with the award or performance of any concession agreement covered by 49 CFR Part 23, Subpart F. 3. OTHER AGREEMENTS. The CONCESSIONAIRE agrees to include the above statements in any subcontracts that it enters into and cause those businesses to similarly include the statements in further agreements. 4. DISADVANTAGED BUSINESS ENTERPRISE (DBE) PARTICIPATION IN THIS AGREEMENT. CONCESSIONAIRE agrees that it shall endeavor to provide for at least 9% participation by certified DBEs, as defined in 49 CFR Part 23, said participation being measured as a percentage of total annual gross revenues obtained by CONCESSIONAIRE in its operations under this Agreement. Throughout the term of this Agreement, CONCESSIONAIRE agrees that it shall continue to utilize qualified and available DBE firms which have been and continue to be certified to the fullest extent which is reasonably possible to achieve and to an extent necessary to comply with the above - stated goals, including the goals related to purchases as applicable. CONCESSIONAIRE shall make a good faith effort to meet each of the said goals throughout the term of this Agreement. If a DBE subtenant, joint venturer, supplier or service provider must be replaced for any reason during the term of this Agreement, CONCESSIONAIRE agrees that it shall replace the subtenant, joint venturer, supplier or service provider with another DBE, or if it cannot, then CONCESSIONAIRE shall demonstrate that it made good faith efforts to do so. DBE REQUIREMENTS ARE SUBJECT TO CHANGE AT THE DISCRETION OF THE FAA. CONCESSIONAIRE AGREES TO COMPLY WITH ANY AND ALL DBE REQUIREMENT CHANGES AS REQUIRED BY FEDERAL LAW. 31 ACC)ROr CERTIFICATE OF LIABILITY INSURANCE ��. TEr DA0813012017vv THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER{S}, AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsernent(s). PRODUCER MCGRIFF, SEIBELS & WILLIAMS OF GEORGIA, INC. 5605 Glenridge Drive - Suite 300 CONTACI NAME: PHONE 404 497-7500 FAX AIC No Ext : W No E-MAJL ADDRESS., Atlanta, GA 30342 INSURER AFFORMG COVERAGE NAIL 9 INSURER A Sentry Insurance A Mutual Company 24988 07/01/2017 INSURER B -Travelers Property & Casualty Co. INSURED Fulton Holding Corp. clo The Paradies Shops, LLC INSURER C -Nati onal Union Fre Ins Co of Pittsbu rg h PA 2849 Paces Ferry Road Overlook I, Suite 400 INSURER D: INSURER E: Atlanta, GA 30339 INSURER F: COVERAGES CERTIFICATE NUMBER: SM8DOBSW REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. NSR LTR TYPE OF INSURANCE INSD WVD POLICY NUMBER POLICY EFF DDI POLICY EXP MM!DD,'YY LWTS Gypsum, CO 81637 X CD MIME RCIAL GENERAL LIABILITY 901614303 07/01/2017 07/01/2018 EACH OCCURRENCE $ 1,000,000 F PR 1,000,000 CLAIMS -MADE OCCUR EMISESMAGECEaaccENTErrence $ MED EXP [Any one person) $ 10,000 PERSONALS ADV INJURY $ 2,000,030 X Liquor Liability Included GE N'L AGG REGATE LIMIT APPLIES PER, GENERAL AGGREGATE $ 10,030,030 POLICY 71 PEC Fx-1 LOC PRODUCTS-COMPIOPAGG $ 2,OW,OW $ OTHER, AUTOMDBILE LIABILITY COM BIN E❑ S ING LE LIMIT E8 accident ANY AUTO BODILY INJURY [Per person] $ OWNED SCHEDULED BODILY INJURY [Per accident] $ AUTOS ONLY AUTOS HIRED NON -OWNED I PROPERTY DAMAGE $ AUTOS ONLY AUTOSONLY Per accident B X LIM BRELLA LIAB X OCCUR ZUP81M3537416NF 0710112017 0710112018 EACH OCCURRENCE $ 10,000,000 IEXCESS LIAB CLAIMS -MADE AGGREGATE $ 10,000,000 DED I I RETENTION $ ProductslCompleted Ops $ 10,000,000 A WORKERS COMPENSATION 901614301 (AOS) 0710112017 0710112018 X PER OTTH- AND EMPLOYERS' LIABILITY YIN 901 61 43 02 (WI) STATUTE R ANY PRO PRI ETORIPARTNERIEXECUTIVE E.L. EACH ACCIDENT $ 1,000,000 OFFICERIMEMBER EXCLUDED? N1A N 1 A I (Mandatory In NH) E.L. DISEASE - EA EMPLOYEE $ 1,000,000 If yes, describe under 1,000,000 DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ C Crime 04-829-35-46 1212312016 1212312017 Employee Theft 3,000,000 Forgery or Alteration $ 3,000,000mises InsidelOutside Pre $ 3,000,000 Computer Fraud $ 3,000,000 Funds Transfer Fraud $ 3,000,000 DESCRIPTION DF OPERATIONSI LOCATIONS 1 VEHICLES (ACD RD 101, Additional Remarks Schedule, may beattached it more space is required} Re: Location #9975 - Eagle County Regional Airport CERTIFICATE HOLDER CANCELLATION ACORD 25 (2016,+03) Page 1 oft U 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. NGSI LLC; NGSI Eagle, LLC; Eagle County Air Terminal Corporation AUTHORIZED REPRESENTATIVE 219 Eldonloon Eldon VUllson Road �� Gypsum, CO 81637 ACORD 25 (2016,+03) Page 1 oft U 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD AC- �� DATE IMM'DD.-YYYY] ��. EVIDENCE OF PROPERTY INSURANCE SMSDOBSWF 0813012017 THIS EVIDENCE OF PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. AGENCY I PHONE404 497-7500 COMPANY No. Ex 11: MCGRIFF, SEIBELS & WILLIAMS OF GEORGIA, INC. Continental Casualty Company 5605 Glenridge Drive - Suite 300 Atlanta, GA 30342 FAX CGDE: E-MAIL .QUSM MER IDp: INSURED Fulton Holding Corp. Go The Paradies Shops, LLC 2849 Paces Ferry Road Overlook I, Suite 400 Atlanta, GA 30339 $UB CGDE: LOAN NUMBER EFFECTIVE DATE EXPIRATION DATE 071D1121 07/01/2018 THI$ REPLACE$ PRIOR EVIDENCE DATED: POLICY NUMBER I RMP6023213547 CONTINUED UNTIL TERMINATED IF CHECKED PROPERTY INFORMATION LOCATIONIDESCRI PTID N Re: Location #9975 - Eagle County Regional Airport THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECTTO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BYTHE POLICIES DESCRIBED HEREIN IS SUBJECTTO ALLTHE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. COVERAGE INFORMATION PERILS INSURED I 13ASIC BROAD SPECIAL COVERAGE IPERIL$IFORM$ _ AMOUNrOFMURANCE DEDUCTIBLE Blanket Business Personal Property (All -Risk) - Replacement Cost $250,OD0,000 $50,000 Blanket Stock included $50,000 Business Income & Extra Expense Coverage- Included included 48 Hours Loss of Rents Coverage - 12 Months Earth Movement - occurrence and aggregate (low hazard) $25,ODD,ODO Flood - occurrence and aggregate (low hazard) $25,ODD,ODO NUR IrlC1M&--IIrim CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST NAME AND ADDRESS All 11r111NAL INSURED LENDER'S LOSS PAYABLE LOSS PAYEE MORTGAGEE LOAN # NGSI VAI L, LLC; NGSI Eagle, LLC; Eagle County Air Terminal Corporation AUTHORIZED REPRESENTATIVE 219 Eldon Eldon Wilson Road Gypsum, CO 81637 ACORD 27 (2076.'03) C) 1993-2015 ACORD CORPORATION. All rights reserved. Page 2 of 2 The ACORD name and logo are registered marks of ACORD