Common use of Landing Fees Clause in Contracts

Landing Fees. MAC shall calculate the landing fee rate in the following manner and as illustrated in Exhibit N (revised). 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 Debt Service net of amounts paid from PFCs or grants allocable to the Airfield cost center. c. The cost of Runway 17/35 deferred and not yet charged from the date of occupancy through December 31, 2005 will be charged starting January 1, 2006 through December 31, 2035 at $79,535.16 annually. d. The Landing Fee Repair and Replacement Amount. 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 hereof. 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. 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 non-signatory landing fees; c. Debt Service on the Capital Cost, if any, disapproved by a Majority-In- Interest of Signatory Airlines. 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.

Landing Fees. MAC shall calculate the landing fee rate in the following manner and as illustrated in Exhibit N (revised).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. c. The estimated Debt Service imputed interest (net of amounts paid from PFCs or 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. c. The cost of Runway 17/35 deferred and not yet charged from the date of occupancy through December 31, 2005 will be charged starting January 1, 2006 through December 31, 2035 at $79,535.16 annually. d. The Landing Fee Repair and Replacement Amount. 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 hereof.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 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 Xxxx (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 non-signatory nonsignatory landing fees; c. Debt Service 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- 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. 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, 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.

Landing Fees. MAC shall calculate the landing fee rate in the following manner and as illustrated in Exhibit N (revised).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 Debt Service direct and allocated indirect depreciation and imputed interest on the net of amounts paid from PFCs or 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. c. The estimated imputed interest (net of grants and PFCs) on the historical cost of Runway 17/35 deferred and not yet charged from the date of occupancy through December 31, 2005 will be charged starting January 1, 2006 through December 31, 2035 at $79,535.16 annuallyMAC’s investment in land. d. The Landing Fee Repair total estimated direct and Replacement Amountallocated 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 hereof.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 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 Xxxx (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 non-signatory nonsignatory landing fees; c. Debt Service 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- 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. 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: 0000 $ 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, 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.

Landing Fees. MAC shall calculate the landing fee rate in the following manner and as illustrated in Exhibit N (revised). 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 Debt Service net of amounts paid from PFCs or grants allocable to the Airfield cost center. c. The cost of Runway 17/35 deferred and not yet charged from the date of occupancy through December 31, 2005 will be charged starting January 1, 2006 through December 31, 2035 at $79,535.16 annually. d. The Landing Fee Repair and Replacement Amount. 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 hereof.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. 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 non-signatory nonsignatory landing fees; c. Debt Service on the Capital Cost, if any, disapproved by a Majority-In- In-Interest of Signatory Airlines. 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.