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Chartis Aerospace Airport Liability AppChartis aerospace Insurance Services, Inc. W—NNNOs Applicant's Name City of Kalispell Mailing Address Kalispell City Airport Kalispell, Montana 59901 Effective From 02/11/18 Until02/11/19 BOTH AT 12:01 am standard time at the address in item 2 above. Applicant is: '51( Corporation 7.1 Partnership Name All Partners Estate ❑ Other: Describe GENERAL INFORMATION Name & location of this Airport (this application is only for one airport location) Kalispell City Airport - S27 Applicant interest in Airport is: Owner 1_ Lessor Applicant is: Lessee !_ Trustee __I Other If Applicant is Government: Describe a.) Does airport board/authority/commission or transportation authority operate airport? 1 Yes . No b.) Does applicant submit airport insurance for public bid annually? _] Yes 4 No c.) Does applicant maintain insurance for all other non -airport operations through commercial insurance carriers? DYes No If Yes to c. show: Limits $ Expiration Deductible/S.I.R.: $ If No to c., describe program fully (see Supplement) d.) Airport Budget Last Year $ 70,000.00 FAAAirport Classification General aviation Airport altitude 2932 List certificate restrictions and exemptions Use extra paper to provide full description This Year $ 70,000.00 PREMISES - OPERATIONS Control Tower Operation: No Control Tower C FAA Tower i_J Other - Operated By: Operating Days/Hours are: Applicant F', Does Does Not Operate Unicorn Service Are any Navaids, Radars, Windshear detectors or aircraft communications owned, leased or mantained by applicant? No Describe: i Runways, Taxiways, Ramps inspected/maintained by i_J Applicant ' Other Ft3e tiers - fW% tt 5rt+e.rtb, in,` I� �'. I eat CPA AV,et ,lj;lt, � Does applicant maintain/operate fuel storage facilities? J Yes No Name of Firm a.) If "yes" to 16, tanks are above ground C below ground b.) Frequency of inspections Non -Aviation activities on Airport Lodging Industrial Park Storage Farming Other None Describe All Non -Aviation Activities APP-07 (12/09) CONTINUED ON REVERSE SIDE PREMISES - OPERATIONS Continued Does Applicant: a.) Maintain Air Crash Emergency Plan? S_ Yes ❑ No b.) Maintain Anti -Terrorist Plan? ❑ Yes tY' No c.) Employ Medical Personnel? ❑ Yes '9 No Do they have separate insurance coverage? ❑ Yes O No Describe: d.) Base Fire Fighting vehicles on the Airport full time? ❑ Yes 'W No If No, distance to nearest Fire Department 2 Miles e.) Maintain Wildlife and Bird Strike prevention program? Ki Yes U No f.) Own, operate, use or maintain any off -Airport premises to be covered? 0 Yes Z No Describe all locations and uses: g.) Charge for auto parking? Yes iY No Number of parking spaces h.) Host/sponsor or operate Airshows? O Yes 1<] No Describe: i.) (i) Number of: Elevators? 0 Escalators? 0 Moving Sidewalks? 0 Automated Passenger Trains? 0 Automatic Doors? 0 (ii) Who maintains? Is Airport completely fenced in? �C Yes '-) No a.) Airport security is provided by: Kalispell Police Department b.) Frequency of patrols: each shift Do they have separate insurance coverage? Yes ❑ No Estimated number of aircraft movements this year for: a.) General aviation 25,000 b.) Commuter airlines c.) Other airlines d.) Military TOTAL 25000 Estimated number of enplaned passengers this year 0 Largest Aircraft using Airport Light twin engine By FBO-Red Eagle Aviation Runways: Make & Model Name of Operator HEADING LENGTH WIDTH SURFACE DESCRIBE ALL OBSTRUCTIONS 1 13/31 3500 ft 60 ft Asphalt Radio twr 2 miles S of Runway 13 2. 3. 4. 5. List all Air Carriers using the Airport None APP-07 (12/09) PAGE 2 PRODUCTS/COMPLETED OPERATIONS Does Applicant engage in: YES/NO GROSS SALES ESTIMATED LAST YEAR THIS YEAR a.) Aircraft Fueling No $ $ Gallons gal gal b.) Aircraft Maintenance/Repairs No $ $ c.) Aircraft Parts/Accessories Sales No $ $ d.) Cargo/Baggage Handling or Storage No $ $ e.) Jetway or Planemate Operation No $ $ f.) Passenger or Baggage Security Operations No $ $ g.) Aircraft Towing No $ $ h.) Aircraft De-icing No $ $ j) Restaurant/Vending Machine Operations No $ $ j) Airline ground support services No $ $ k) Control Tower No $ $ 1) Other $ $ List All Other Operations HANGARKEEPERS LIABILITY (AIRCRAFT IN YOUR CUSTODY FOR STORAGE/SAFEKEEPING/REPAIR/SERVICING) a.) No. of hangars 0 b.) No. of tie-down/parking spaces c.) Describe each hangar The City does not own any hangars. They are all privately owned and situated on space leased from the city. (Show age, construction materials, size & if sprinklered) (Use extra papers to provide full description) d.) Average value any one aircraft $ 0.00 Average total $ 0.00 e.) Maximum value any one aircraft $ 0.00 Total all aircraft $ 0.00 f.) Maximum value (i) any one hangar $ 0.00 (ii) any on tie -down ramp g.) Gross sales for (i) Hangar rental/lease (ii) Tie down rental/lease CONSTRUCTION, DEMOLITION & ALTERATIONS Contract costs this year for: RUNWAYS a.) By Applicant $ 0.00 b.) By Independent Contractors $ 0.00 Is there an owners controlled insurance program? IYes If No, minimum limit required of independent contractors ; Is applicant included as additional insured? J Yes i I No OTHER $ 0.00 $ 0.00 l No Limit $ LAST YEAR ESTIMATED THIS YEAR DESCRIBE WORK N/A N/A CONTRACTUAL LIABILITY - CONTRACTS HELD WITH THE FOLLOWING OPERATIONS: $ 000 $ 0.00 Designated Contracts MINIMUM REQUIRED LIMITS IS APPLICANT HELD HARMLESS? IS APPLICANT ADDITIONAL INSURED? a.) Commuters & Airlines $ " Yes i _I No J Yes Li No b.) Fixed Base Operators $ 2,000,000.00 sC Yes No Yes I-] No c.) Concessionaires $ I=; Yes ❑ No ❑ Yes ❑ No d.) Contractors $ 1,000,000.00 V, Yes ❑ No t14Yes ❑ No e.) Control Tower Operator $ ❑ Yes ❑ No ❑ Yes ❑ No f.) Janitors, escalator maintenance, security $ Cj Yes ❑ No ❑ Yes ❑ No g.) Others $ ❑ Yes ❑ No ❑ Yes ❑ No h.) Any contracts in which you assume the liability of others? ❑ Yes ❑ No If Yes, attach copies of contracts. APP-07 (12/09) PAGE 3 APPLICANTS VEHICLES: Identify the number of vehicles owned by, operated by or leased to applicant. Snow Removal equipment 0 Fuel trucks 0 Sweepers 0 Tugs 0 Crash -fire -rescue vehicles 0 Hydrant carts 0 Passenger cars 0 Pickup trucks 0 Passenger buses over 30 seats 0 Passenger buses 30 seats and under 0 Other 0 Describe any operation of vehicle off airport premises CLAIMS List all claims for past 5 years - use separate paper to complete DATE CAUSE SETTLED, INCLUDING ALL COSTS OPEN, INCLUDING RESERVES FOR DEFENSE AND SETTLEMENT See Supplement CURRENTINSURANCE Name of Insurance Company: Old Republic Insurance Company Expiration Date: 02/11/18 Coverages: see below Limits: $5,000,000 Deductible: $ 0.00 Premium: $ Commercial General Liability Coverage General Aggregate Limit (other than Products/Completed Operations) Products/Completed Operations Aggregate Limit Personal and Advertising Injury Aggregate Limit Each Occurrence Limit Fire Damage Limit (any one fire) Medical Expense Limit (any one person) Hangarkeeper's Liability Coverage Each Aircraft Limit Each Loss Limit Deductible (each aircraft) $ 000 Limits of Insurance $ 5,000,000.00 $ 1,000,000.00 $ 5,000,000.00 $ 5,000,000.00 $ 100,000.00 $ 5,000.00 $ 5,000,000.00 $ 5,000,000.00 POLICY DEDUCTIBLE Each Occurrence $ 0.00 Annual Aggregate $ 0.00 Other coverages, restrictions, endorsements: � J NON -OWNED AIRCRAFT: Provide following information with respect to non -owned aircraft operated by or on behalf of the airport: Does airport use non -owned aircraft on airport business? Yes Y No. If yes, do employees pilot aircraft on airport business? Yes No Describe types of aircraft flown on airport business: By Employees By Others Number of hours flown annually in all non -owned aircraft on applicant's business. Number of hours flown in chartered aircraft. Number of hours flown in rented / leased aircraft. Number of hours flown in borrowed aircraft. Provide current pilot experience forms for each employee pilot. APP-07 (12109) PAGE 4 NOTICE TO APPLICANTS: ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE OR STATEMENT OF CLAIM CONTAINING ANY MATERIALLY FALSE INFORMATION OR, CONCEALS, FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A FRAUDULENT ACT, WHICH IS A CRIME AND MAY SUBJECT SUCH PERSON TO CRIMINAL AND CIVIL PENALTIES. NOTICE TO ARKANSAS, NEW MEXICO AND WEST VIRGINIA APPLICANTS: ANY PERSON WHO KNOWINGLY PRESENTS A FALSE OR FRAUDULENT CLAIM FOR PAYMENT OF A LOSS OR BENEFIT, OR KNOWINGLY PRESENTS FALSE INFORMATION IN AN APPLICATION FOR INSURANCE IS GUILTY OF A CRIME AND MAY BE SUBJECT TO FINES AND CONFINEMENT IN PRISON. NOTICE TO COLORADO APPLICANTS: IT IS UNLAWFUL TO KNOWINGLY PROVIDE FALSE, INCOMPLETE, OR MISLEADING FACTS OR INFORMATION TO AN INSURANCE COMPANY FOR THE PURPOSE OF DEFRAUDING OR ATTEMPTING TO DEFRAUD THE COMPANY. PENALTIES MAY INCLUDE IMPRISONMENT, FINES, DENIAL OF INSURANCE, AND CIVIL DAMAGES. ANY INSURANCE COMPANY OR AGENT OF AN INSURANCE COMPANY WHO KNOWINGLY PROVIDES FALSE, INCOMPLETE, OR MISLEADING FACTS OR INFORMATION TO A POLICYHOLDER OR CLAIMANT FOR THE PURPOSE OF DEFRAUDING OR ATTEMPTING TO DEFRAUD THE POLICYHOLDER OR CLAIMANT WITH REGARD TO A SETTLEMENT OR AWARD PAYABLE FROM INSURANCE PROCEEDS SHALL BE REPORTED TO THE COLORADO DIVISION OF INSURANCE WITHIN THE DEPARTMENT OF REGULATORY AUTHORITIES. NOTICE TO DISTRICT OF COLUMBIA APPLICANTS: WARNING: IT IS A CRIME TO PROVIDE FALSE OR MISLEADING INFORMATION TO AN INSURER FOR THE PURPOSE OF DEFRAUDING THE INSURER OR ANY OTHER PERSON. PENALTIES INCLUDE IMPRISONMENT AND/OR FINES. IN ADDITION, AN INSURER MAY DENY INSURANCE BENEFITS IF FALSE INFORMATION MATERIALLY RELATED TO A CLAIM WAS PROVIDED BY THE APPLICANT. NOTICE TO FLORIDA APPLICANTS: ANY PERSON WHO KNOWINGLY AND WITH INTENT TO INJURE, DEFRAUD, OR DECEIVE ANY INSURER FILES A STATEMENT OF CLAIM OR AN APPLICATION CONTAINING ANY FALSE, INCOMPLETE OR MISLEADING INFORMATION IS GUILTY OF A FELONY IN THE THIRD DEGREE. NOTICE TO KENTUCKY APPLICANTS: ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE CONTAINING ANY MATERIALLY FALSE INFORMATION, OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME. NOTICE TO LOUISIANA APPLICANTS: ANY PERSON WHO KNOWINGLY PRESENTS A FALSE OR FRAUDULENT CLAIM FOR PAYMENT OF A LOSS OR BENEFIT OR KNOWINGLY PRESENTS FALSE INFORMATION IN AN APPLICATION FOR INSURANCE IS GUILTY OF A CRIME AND MAY BE SUBJECT TO FINES AND CONFINEMENT IN PRISON. NOTICE TO MAINE APPLICANTS: IT IS A CRIME TO KNOWINGLY PROVIDE FALSE, INCOMPLETE OR MISLEADING INFORMATION TO AN INSURANCE COMPANY FOR THE PURPOSE OF DEFRAUDING THE COMPANY. PENALTIES MAY INCLUDE IMPRISONMENT, FINES OR A DENIAL OF INSURANCE BENEFITS. NOTICE TO MARYLAND APPLICANTS: ANY PERSON WHO KNOWINGLY AND WILLFULLY PRESENTS A FALSE OR FRAUDULENT CLAIM FOR PAYMENT OF A LOSS OR BENEFIT OR WHO KNOWINGLY AND WILLFULLY PRESENTS FALSE INFORMATION IN AN APPLICATION FOR INSURANCE IS GUILTY OF A CRIME AND MAY BE SUBJECT TO FINES AND CONFINEMENT IN PRISON. NOTICE TO MINNESOTA APPLICANTS: A PERSON WHO FILES A CLAIM WITH INTENT TO DEFRAUD OR HELPS COMMIT FRAUD AGAINST AN INSURER IS GUILTY OF A CRIME. NOTICE TO NEW JERSEY APPLICANTS: ANY PERSON WHO INCLUDES ANY FALSE OR MISLEADING INFORMATION ON AN APPLICATION FOR AN INSURANCE POLICY IS SUBJECT TO CRIMINAL AND CIVIL PENALTIES. NOTICE TO NEW YORK APPLICANTS: ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE OR STATEMENT OF CLAIM CONTAINING ANY MATERIALLY FALSE INFORMATION, OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME, AND SHALL ALSO BE SUBJECT TO A CIVIL PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS AND THE STATED VALUE OF THE CLAIM FOR EACH SUCH VIOLATION. NOTICE TO OHIO APPLICANTS: ANY PERSON WHO, WITH INTENT TO DEFRAUD OR KNOWING THAT HE IS FACILITATING A FRAUD AGAINST AN INSURER, SUBMITS AN APPLICATION OR FILES A CLAIM CONTAINING A FALSE OR DECEPTIVE STATEMENT IS GUILTY OF INSURANCE FRAUD. NOTICE TO OKLAHOMA APPLICANTS: WARNING: ANY PERSON WHO KNOWINGLY, AND WITH INTENT TO INJURE, DEFRAUD OR DECEIVE ANY INSURER, MAKES ANY CLAIM FOR THE PROCEEDS OF AN INSURANCE POLICY CONTAINING ANY FALSE, INCOMPLETE OR MISLEADING INFORMATION IS GUILTY OF FELONY (365:15-1-10, 36 §3613.1). APP-07 (12/09) PAGE 5 WARNINGS CONTINUED NOTICE TO PENNSYLVANIA APPLICANTS: ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE OR STATEMENT OF CLAIM CONTAINING ANY MATERIALLY FALSE INFORMATION OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME AND SUBJECTS SUCH PERSON TO CRIMINAL AND CIVIL PENALTIES. NOTICE TO TENNESSEE, VIRGINIA AND WASHINGTON APPLICANTS: IT IS A CRIME TO KNOWINGLY PROVIDE FALSE, INCOMPLETE OR MISLEADING INFORMATION TO AN INSURANCE COMPANY FOR THE PURPOSE OF DEFRAUDING THE COMPANY. PENALTIES INCLUDE IMPRISONMENT, FINES AND DENIAL OF INSURANCE BENEFITS. NOTICE TO VERMONT APPLICANTS: ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE OR STATEMENT OF CLAIM CONTAINING ANY MATERIALLY FALSE INFORMATION OR, CONCEALS, FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A FRAUDULENT ACT, WHICH MAY BE A CRIME AND MAY SUBJECT SUCH PERSON TO CRIMINAL AND CIVIL PENALTIES. 9/09 edition ALL INFORMATION HEREIN IS WARRANTED TO BE TRUE TO THE BEST OF MY KNOWLEDGE AND NO INFORMATION HAS BEEN SUPPRESSED OR WITHHELD, AND NO INSURER HAS CANCELLED OR REFUSED TO RENEW THIS INSURANCE. I UNDERSTAND THAT THE INFORMATION HEREIN AND THE TRUTHFULNESS THEREOF WILL BE THE BASIS OF ANY INSURANCE PROVIDED BY THE COMPANY. THIS APPLICATION DOES NOT BIND THE APPLICANT OR THE COMPANY TO PROVIDE ANY INSURANCE. M i Today''s Date (Producer will fill in this information) Producer AirSure Limited Address 25548 Genesee Trail Road City Golden State CO Zip 80401 Telephone No. (303) 526-5300 Fax No. (303) 526-5303 Email Address aschouten@airsure.com APP-07 (12/09) PAGE 6 Chartis Aerospace Insurance Services, Inc. Supplemental Application Information — City of Kalispell, MT GENERAL INFORMATION — Page 1 (c) The City of Kalispell has liability, property, and worker's compensation coverage for non -airport operations through Montana Municipal Interlocal Authority (MMIA), a municipal risk pool with its office in Helena, MT. It is not a "commercial insurance carrier" but does purchase reinsurance from commercial carriers. The City's liability policy provides for coverage in accordance with the current state statutory tort limits of $750,000 per occurrence and $1,500,000 aggregate coverage. Our liability SIR is $5,000.00. CONTRACTUAL LIABILITY — Page 3 Red Eagle Aviation is the contract Fixed Based Operator (FBO) for the City Airport. The FBO contract between the City of Kalispell and Red Eagle and its insurance declaration summary showing the City as additional loss insured is submitted herewith. Since January 1, 2014, the City of Kalispell has held an airport management contract with the FBO, Red Eagle Aviation. Although the contract states that it expired on June 30, 2017, the City and Red Eagle have mutually agreed to continue operating under this agreement. A copy of the "Professional Services Agreement for Airport Management Services" is submitted herewith. The City of Kalispell has entered into a number of long-term ground leases with the owners of airplane hangars located on the airport premises. The hangars are the property of the individual owners who lease the ground space on which they are situated from the city. A spreadsheet with the names of the lessees, the area location on the airport grounds, and the annual ground lease fee which each owner pays to the city is submitted herewith. Also, the insurance requirements paragraph from the City's standard hangar ground lease is submitted herewith. CLAIMS — Page4 41 October 2003 Defamation/Advertising Injury Talmage v. City of Kalispell/Fred Leistiko Flathead Co. Cause No. DV-04-286(B) Airport Insurance Application Supplement Page 1 of 2 This claim concerned damages alleges to have resulted from installation of a security fence on the airport premises and alleged defamatory statements concerning an aviation business owner made by the former Kalispell City Airport Manager. The case was litigated and ultimately resulted in a settlement. While the city denied and continues to deny wrongful conduct in the matter, the city and the former manager stipulated to a judgment in favor of the plaintiff for the sum of $1.5 million. The city agreed to move its fence and the plaintiff agreed to a cash payment from the City and its insurers totaling $130,000 and the plaintiff agreed not to execute on the judgment against the settling parties, including the City and the former City Airport Manager. (copy of Settlement Agreement attached) The $130,000.00 cash payment which was advanced to the plaintiff by the various insurers in this matter was comprised of the following: Chartis/AIG Aerospace Insurance (for City) $50,000.00; Old Republic Insurance Co. (for City) $50,000.00; Montana Municipal Interlocal Authority (for Fred Leistiko) $30,000.00; The plaintiff, John Talmage, reserved the right to pursue a claim against ACE Property and Casualty Ins. Co. for the balance of the judgment amount. If a complaint is filed in that matter, the City of Kalispell will not be a named party in that proceeding. The City of Kalispell paid the majority of its defense costs in this matter. MMIA advanced funds for defense costs for Fred Leistiko in the approximate amount of $93,336.00. Correspondence from AIG Aerospace Ins. representatives indicate that they advanced defense costs in defending this matter in the amount of $26,483.31. #2 November 2013 Defamation Leistiko v. Philip Guiffrida Flathead Co. Cause No. DV- 13-102(A) This claim involves alleged defamatory statements made by a Kalispell City Council member, concerning airport business conducted by the former Kalispell Airport Manager, Fred Leistiko. The city council member denied the allegations, but the case was settled by agreement of the parties in May 2015. To resolve the litigation in its entirety, the City of Kalispell's liability risk pool, Montana Municipal Interlocal Authority, agreed to pay the former City Airport Manager the sum of $25,000.00. A copy of the Release of Claims is submitted herewith. Airport Insurance Application Supplement Page 2 of 2 This lease and operating Agreement (the "Agreement") entered into as of theq? day of AI.W U 5 , 2005, by and between the City of Kalispell, a body politic and corporate created by Monthna State Statutes ("Lessor"), and David Hoemer, dtb/a Red Eagle Aviation, licensed and with authority to do business in the State of Montana ("Lessee") or assigns. WITNESSETH. WHEREAS, Lessor now owns, controls, and operates the Kalispell City Airport (the "Airport") in the City Kalispell, County of Flathead, State of Montana; WHEREAS, fixed base operation services are essential to the proper accommodation of general and commercial aviation at the Airport; and WHERE,4S, .Lessor desires to make such services available on the Airport and Lessee is qualified, ready, willing and able to provide such services. .NOW, THEREFORE, in consideration of the premises and the mutual covenants contained in this Agreement, the parties hereby agree as follows: ARTICLE I TERM The term of this Agreement shall be for a period of twenty (20) years, plus two five year extensions), commencing on the ! � day of^{zb� 2, 2005, and continuing through the J�) day of ��_'�, 2025 (the "Termination Date"), unless earlicr terminated under the provisions of this Agreement, Lessee shall have the option, exercisable upon at least one hundred eighty (180), but not more than three hundred sixty-five (365), days' notice to Lessor prior to the i ermination Date, to extend the term of the Agreement for two (2) additional period of five (5) years each from and .after the Termination Date, upon the same terms and conditions .as are contained in this Agreement. When the new runway is aligned and new FBO office and hangar are built, as Lessor intends to do, a new twenty (20) year term of the lease shall begin again, subject to the terms of the adjustments described in Article V (A)(4), with all terms and conditions of this lease applying, and with two (2) five-year extensions to that 20 year term possible thereafter. Lessee hereby leases from Lessor, the following premises, identified and shown on Exhibit A hereto (the "Premises"), together with the right of ingress and egress for both vehicles and aircraft: land: A, Real Property as diagramed on Exhibit "A" and located within the following tract of County Tracts 1D and I DA in Section 20, TMN RZI Vi', according to the map or plat thereof on file and of record in the office of Clerk and Recorder of Flathead County, Montana B. Improvements on said real property, as follows: As set forth on Exhibit "A". C, Hangars, Ramp and Apron Area: As set forth on Exhibit "A". D. Fuel Storage Area: As set forth on Exhibit "A". FIXED BASED OPERATORS LEASE - Page 1 of ll FMTOiM[�i�l�Iill A. Required Services. Lessee is hereby granted the non-exclusive privilege to engage in, and Lessee agrees to engage in, the business of providing full and complete fixed base operations services at the Airport, minimum of (8) hours per day or more, three hundred sixty-five (365) days per year, excluding adverse weather and holidays, as follows: but limited to. 1. Aircraft ground guidance within the uncontrolled areas adjacent to the Premises, and ramp service, including sale and into -plane delivery of aviation fuels, lubricants and other related aviation products. 2. Apron servicing of, and assistance to, aircraft, including itinerant parking, storage and tie -down service, for both based and itinerant aircraft upon or within facilities leased to Lessee or aircraft parking areas designated by Lessor. 3. Repair and maintenance of based and transient aircraft. Lessee agrees make reasonably available or to maintain and operate a aircraft maintenance facility approved by the Federal Aviation Administration (the "FAA"), with ratings as follows: a, Engine, airframe and accessories with airframe and engine FAA. approved license. b. Avionics and accessories with FAA approved Iicense. Lessee acknowledges that no right or privilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the Airport from performing service on its own aircraft, non-commercial maintenance, with its own regular employees, including maintenance and repair services. 4. Customary accommodations for the convenience of users, including pilot lounge area, informational services, direct telephone service connections to the Flight Service Station and the United States Weather Bureau, and courtesy vehicle ground transportation to and from the parking ramp. 5. Sales of avionic and engine parts and instruments and accessories. >B, Authorized Services. In addition to the services required to be provided by Lessee pursuant to Paragraph A, above, Lessee is authorized, but not required or limited, to provide the following services and to engage in the following activities as authorized by the rules and regulations of the airport: 1, Ramp service at other Airport locations, including into -plane delivery of aircraft fuel, lubricants and other related aviation products; loading and unloading of passengers, baggage, mail and freight: and providing of ramp equipment, aircraft services for transient air taxi and other persons or firms. 2, Special flight services, including aerial sightseeing, aerial advertising and aerial photography. 3, The sale of new and used aircraft. 4. Flight training, including ground school, FIXED RASED OPERATOR'S LEASE - Page 2 of 11 5. Aircraft rental, 6, Aircraft charter operations, conducted by.Lessee or a subcontractor of Lessee. C. , Operating Standards, in providing any of the required and/or authorized services or activities specified in this Agreement, Lessee shall operate for the use and benefit of the public and shall meet or exceed the following standards: 1. Lessee shall furnish service on a fair, reasonable and non-discriminatory basis to all users of the Airport. Lessee shall furnish good, prompt and efficient service adequate to meet all reasonable demands for its services at the Airport, Lessee shall charge fair, reasonable, and non- discriminatory prices for each unit of sale or service; provided, however, that Lessee may be allowed to make reasonable and non-discriminatory discounts, rebates or other similar types of price reductions to volume purchasers, 2. Lessee shall select and appoint a full-time manager of its operations at the Airport, which may be the owner of the Lessee's business. The manager shall be qualified and experienced, and vested with full power and authority to act in the name of Lessee with respect to the method, manner and conduct of the operations of the fixed base services to be provided under this Agreement. The manager shall be available at the Airport during regular business hours and during the manager's absence a duly authorized subordinate shall be in charge and available at the Airport. 3. Lessee shall provide, at its sole expense, a sufficient number of employees to provide effectively and efficiently the services required or authorized in this Agreement. 4. Lessee shall control the conduct, demeanor and appearance of its employees, who shall be trained by Lessee and who shall possess such technical qualifications and hold such certificates of qualification as may be required in carrying out assigned duties. It shall be the responsibility of Lessee to maintain close supervision over its employees to assure .a high standard of service to customers of Lessee. 5. Lessee shall meet all expenses and payments in connection with the use of the Premises and the right and privileges herein granted, including taxes, permit fees, license fees and assessments lawfully levied or assessed upon the Premises or property at any time situated therein and thereon. Lessee may, however, at its sole expense and cost, contest any tax, fee, or assessment. 6. Lessee shall comply with all federal, state and local laws, rules and regulations which may apply to the conduct of the business contemplated, including rules and regulations promulgated by Lessor, and Lessee shall keep in effect and post in a prominent place all necessary and/or required licenses or permits. 7, Lessee shall be responsible for the maintenance and repair of the Premises and shall keep and maintain the Premises in good condition, order and repair, and shall surrender the same upon the expiration of this Agreement, in the condition in which they are required to be kept, reasonable wear and tear and damage by the elements not caused by Lessee's negligence excepted, It is expressly understood and agreed that, in providing required and authorized services pursuant to this Agreement, Lessee shall have the right to choose, in is sole discretion, its vendors and suppliers. FIXED BASED OPERATOR'S LEASE - Puge 3 of 11 D. Signs, During the term of this Agreement, Lessor shall, at its expense, place in or an the Premises a sign or signs identifying Lessee, Said sign or signs shall be of.a size, shape and design, and at a location or locations, approved by Lessee and in conformance with any overall directional graphics or sign program established by Lessor. Lessee's approval shall not be withheld unreasonably. Notwithstanding any other provision of this Agreement, said sign(s) shall remain the property of Lessor. E. Non -Exclusive Right. It is not the intent of this Agreement to grant to Lessee the exclusive right to provide any or all of the services described in this article at any time during the term of this Agreement. Lessor reserves the right, at its sole discretion, to grant others certain rights and privileges upon the Airport which are identical in part or in whole to those granted to Lessee. However, Lessor does covenant and agree that: 1. It shall enforce all minimum standards or requirements for all aeronautical endeavors and activities conducted a the Airport; 2. Any other operator or aeronautical endeavors or activities will not be permitted to operate on the Airport under rates, terms of conditions which are more favorable than those set forth in this Agreement; and 3. It will not perniit the conduct of any aeronautical endeavor or activity at the Airport except under an approved lease and/or an operating agreement. ARTICLE BI APPURTENANT PRTVILEGES A. Use of Airport Facilities, Lessee shall be entitled, in common with others authorized, to the use of all facilities and improvements of a public nature which now are or may hereafter be connected with or appurtenant to the Airport, including the use of landing areas, runways, taxiways and aircraft parking areas designated by Lessor. E. Aerial Approaches. Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the .Airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on or adjacent to the .Airport which, in the opinion of Lessor, would limit the usefulness of the Airport or constitute a hazard to aircraft. ARTICLE 'V PAYMENTS A. Rent and Fees. in consideration of the rights and privileges granted by this Agreement, Lessee agrees to pay to Lessor during the term of this Agreement the following: 1. Rent. A rental of $8,064.00 per annum for the lease of the existing office space and attached hanger (approximately - 7 7 6 square feet), A rental of S9.600.00 per annum for the lease of all other hanger space on the premises (approximately 12 F-27b square feet). In the event the Lessor elects to remove any of the hangars, Lessee's rent shall be reduced by the monthly income Lessee has lost for each hangar removed. The monthly income loss will be calculated using the average of the three month's income to Lessee immediately prior to the hangar's removal. If all hangars are removed, Lessee shall have no rental obligations to the Lessor pursuant to this portion of the lease payments, 2. Fuel System Rent. A sum of S3.600.00 per annum on all aviation fuel sold by Lessee. This sum exclusive of the S.06 per gallon city tax, The lease of the fuel farm and pumping station is for the existing facility and will be renewed for the same length as the lease for the new office FIXED BASED OPERATOR'S LEASE - Page 4 of 11 and hangar on the new ramp. The Lessor will install a new fuel farm, av-gas and jet fuel, and self-service pumping station on the new ramp and lease the fueling facility to David Hoerner, d1b/a/ Red Eagle Aviation or his assign. 3. Fees. The sum of 20. 00 per month per tie down, as needed. 4. Adjustments to Rents and Fees. The rents and fees described above shall remain faxed for years one through five of this lease agreement. The rents and fees for years six through ten shall increase by two percent each year. The rents and fees for years eleven through twenty, and for each year thereafter, shall increase by three percent each year. B. Payments. 1. The rental payment specified in Paragraph A.I and A.2, above, shall be paid monthly in advance in the sum of a,772.00 per month, the first payment to be made on or before the first day of ,2005, and a like payment to be made on or before the first day of each month thereafter during the term of this Agreement, It is understood and agreed that the rental payments specified in Paragraph A.I and A.2, above, and in the preceding sentence, may be adjusted pursuant to Paragraph G, below, and that each such adjustment shall result in a change in the annual and monthly rental payments, 2. The fees specified in Paragraph A.3, above, shall be paid to Lessor on or before the twentieth (20th) day following the end of each month throughout the term of this Agreement, It is understood and agreed that the fees specified herein shall be adjusted pursuant to Paragraphs A.4, above and G below and that each such adjustment shall result in a change in the calculation of the monthly payments of fees. C. Landing Fees, Landing Fees are not levied at this time at the Airport; however, the Lessor reserves the right to enact such fees at a later date. In the event Lessor enacts Landing Fees, it shall, at that time, negotiate with the Lessee the extent of Lessee's obligations for collecting such fees and the proportional sharing of the fees. D. Parking Fees. Lessee shall collect aircraft tie down fees, in accordance with a schedule of tie down fees established by Lessor, for all aircraft parked in public parking areas adjacent to the Premises, elsewhere on the ramp or apron area adjacent tc the Premises or on such areas as may be designated by Lessor from time to time. Fees so collected shall be reported and paid monthly to Lessor, less a 50% handling charge to be retained by Lessee, at the same time as the fees paid to Lessor pursuant to Paragraph B.2, above. R. Delinquency Charge. A delinquency charge of 5% per month shall be added to payments required by Paragraphs A, B, C and ID, above, which are rendered more than ten (30) days delinquent. F. Place of Payment, All payments due Lessor from Lessee shall be delivered to the place designated in writing by Lessor. G. Renegotiation of Rent and Fees upon Vacation and Use of New Facility, The twenty (2o) year term of this Lease Agreement (plus two (2) five-year extensions) shall be reinitiated under the same terms and conditions set forth herein, at such time as the airport runway is realigned and the current premises is vacated in exchange for a new location, as designated by the Lessor, within the airport master plan. Lessor shall, at the time of realignment and vacation, construct an FBO office facility and hanger, which will meet the business needs of the FBO/Lessee and the needs of the City Airport, within the airport master plan improvement area to accommodate and FIXED BASED OPERATOR'S LEAST - Page 5 or ll be leased to the Lessee. The approximate location of the new FB© office will go with this document and labeled Exhibit "B". Lessor shall also give to Lessee first right to lease additional property within the airport master plan improvement area for the purpose of constructing an additional hanger and T-hangers to accommodate up to 12 aircraft. The beginning square foot rental fee for office and hanger space will be established at the then existing rate of the lease and shall increase pursuant to the terms of Article 'V(A)(4). For example, if the now lease begins in year seven of the existing lease, the first year lease will be at the base, plus two percent, and the rent and fees for the succeeding three years shall also increase by two percent and rent and fees for all years thereafter increase by three percent. The increases or decreases in the rent and fees to be effective as of the first day of the new lease period. It is understood and agreed that no such increase in leases or fees shall be required if Lessee is prohibited by law or regulation from passing such increase on to its customers. ARTICLE NTI UTILITIES Lessee shall have the right to use the utility service facilities located on the Premises at the commencement of the term of this Agreement. In addition, should Lessee's operations require additional utility service facilities, Lessor shall, at its expense, extend such facilities to the Premises. Lessor's obligation under this provision shall be Iimited to utilities extended by a public utility company to Lessor's property Iine, and nothing herein shall obligate Lessor to provide any utility to Lessee that is not otherwise available to Lessor at its property line. Such limitation shall also include the inability of Lessor to provide utility facilities or service due to the imposition of any limit on consumption or on the construction of additional utility facilities, or the allocation or curtailment of utility facilities or service by law or regulation. Lessee agrees to pay the cost of all utilities. In the event Lessee fails to pay any utility bills when due, Lessor may, at its option, pay the same and collect from Lessee the amounts so disbursed, plus interest at the rate of I % per month or fraction thereof. A. Required Insurance. Lessee shall obtain and maintain continuously in efrect at all times during the term of this Agreement, at Lessee's sole expense, the following insurance- El Comprehensive general liability insurance protecting Lessor against any and all liability by reason of Lessee's conduct incident to the use of the Premises, or resulting from any accident occurring on or about the roads, driveways or other public places, including runways and taxiways, used by Lessee at the Airport, caused by or arising out of any wrongful act or omission of Lessee, in the minimum amount of S2,000,000,00; 2. Passenger liability insurance in the minimum amount of S100,000 per seat, and D1,000,000 per occurrence; 3. Hangar keeper's liability insurance in the minimum amount of $25,000 per aircraft; 4. Product liability insurance in the minimum amount of $100,000; 5, Fire and extended coverage insurance on all fixed improvements erected by Lessee on or in the Premises to the full insurable value thereof. The insurance specified in Paragraphs A.2 through A.5, above, shall name Lessor as an additional insured. NXED BASED OPERATOR'S LEASE - Page 6 of 11 B. Notice. Lessor agrees.to notify Lessee in writing as soon as practicable of any claim,.dernand or action arising out of an occurrence covered hereunder of which Lessor has knowledge, and to cooperate with Lessee in the investigation and defense thereof. ARTICLE VU1 INDEMNIFICATION To the extent not covered by insurance carried in favor of Lessor, Lessee shall keep and hold harmless Lessor from and against any and all claims, demands, suits, judgments, costs and expenses asserted by any person or persons, including agents or employees of Lessor or Lessee, by reason of death or injury to persons or loss or damage to property, resulting from Lessee's operations; or anything done or omitted by Lessee, under this Agreement except to the extent that such claims, demands, suits, judgments, costs and expenses may be attributed to the acts or omissions of Lessor or its agents or employees, ARTICLE IX LESSEE AS INDEPENDENT CONTRACTOR in conducting its business hereunder, Lessee acts as an independent contractor and not as an agent of Lessor. The selection, retention, assignment, direction and payment of Lessee's employees shall be the sole responsibility of Lessee, and Lessor shall not attempt to exercise any control over the daily performance of duties by Lessee's employees. ARTICLE X ASSIGNMENT This agreement, or any part thereof, may not be assigned, transferred or subleased by Lessee, by process or operation of law or in any other manner whatsoever, without the prior written consent of Lessor, which consent shall not be withheld unreasonably. W[flim 1AW • Notwithstanding any other or inconsistent provision of this Agreement, during the performance of this Agreement, Lessee, for itself, its heirs, personal representatives, successors in interest and assigns, as part of the consideration for this Agreement, does hereby covenant and agree, as a covenant running with the land, that: A. No person on the grounds of race, color, religion, sex, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination in; the use of the Premises. B, In the construction of any improvement on, over or under the Premises, and the furnishing of services therein or thereon, no person on the grounds of race, color, religion, sex or national origin shall be excluded from participation in, denied the benefit of, or otherwise be subjected to discrimination; C. Lessee shall use the Premises in compliance with all other requirements imposed by pursuant to Title 49, Code of Federal Regulations, .Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation -Effectuation of Title VI of the Civil Rights Act of 1964, and as said rep lations may be amended. D, In the event of breach of any of the above non-discrimination covenants, Lessor shall have the right to terminate this Agreement and to reenter and repossess the Premises and hold the same as if said Agreement had never been made or issued. This provision does not become FDs:ED BASED OPERATOR'S LEASE - Page 7 of 11 effective until the procedures of 49 CPR Part 21 have been followed and completed, including expiration of appeal rights, ARTICLE XG REQUIREMENTS OF THE UNITED STATES This Agreement shall be subject and subordinate to the provisions of any existing or future agreement between Lessor and the United States, or any agency thereof, relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the expenditure of federal funds for the development or operation of the Airport provided, however, that Lessor shall, to the extent permitted by law, use its best efforts to cause any such agreements to include provisions protecting and preserving the rights of Lessee in and to the Premises, and to compensation for the taking thereof, interference therewith and damage thereto, caused by such agreement or by actions of Lessor or the United States pursuant thereto, ARTICLE XIII DEFAULT AND TERMINATION A. 'Termination by Lessee. This Agreement shall be subject to termination by Lessee in the event of anyone or more of the following events; 1. The abandonment of the Airport as an airport or airfield for any type, class or category of aircraft. If the airport is abandoned in an), way by Lessor, the Lessor will pay to the Lessee the fair value of the remaining term of the lease. The parties agree that they shall each obtain the opinion of an independent appraiser to evaluate the value of the remaining lease and negotiate a final value, The Lessor agrees that the fair value of the remaining term of the lease should be valued as if the airport had not been abandoned. Any decrease in the value of the lease because of the abandonment shall not be considered by either the City's or Lessee's independent appraisers. If the parties cannot agree upon the value, they agree to arbitrate the result, as set forth below and be bound'by the arbitrator's decision. 2. The default by Lessor in the performance of any of the terms, covenants or conditions of this Agreement, and the failure of Lessor to remedy, or undertake to remedy, to Lessee's satisfaction, such default for a period of thirty (30) days after- receipt of notice from Lessee to remedy the same, 3. Damage to or destruction of all or a material part of the Prenuses or Airport facilities necessary to the operation of Lessee's business. 4. The lawful assumption by the United States, or any authorized agency thereof, of the operation, control or use of the Airport, or any substantial part or parts thereof, in such a manner as to restrict substantially Lessee from conducting business operations for a period in excess of ninety (90) days. B. Termination by Lessor. This Agreement shall be subject to termination by Lessor in the event of anyone or more of the following events: 1. The default by Lessee in the performance of any of the terms, covenants or conditions of this Agreement, and the failure of Lessee to remedy, or undertake to remedy, to Lessor's satisfaction, such default for a period of thirty (30) days after receipt of notice from Lessor to remedy the same. 2. Lessee files a voluntary petition in bankruptcy, including a reorganization plan, makes a general or other assignment for the benefit of creditors, is adjudicated as banlaupt or if a FINED BASED OPERATOR'S LEASE - Page S of 11 receiver is appointed for the property or affairs of Lessee and such receivership .is not vacated within thirty (30) days after the appointment of such receiver. C. Exercise. Exercise of the rights of termination set forth in Paragraphs A and B, above, shall be by notice to the other party within thirty (30) days following the event giving rise to the termination. D. Removal of Property. Upon termination of this Agreement for any reason, Lessee, at its sole expense, shall remove from the Premises all signs, trade fixtures, furnishings, personal property equipment and materials which Lessee was permitted to install or maintain under the rights granted herein, If Lessee shall fail to do so within thirty (30) days, then Lessor may effect such removal or restoration at Lessee's expense, and Lessee agrees to pay Lessor such expense promptly upon receipt of a proper invoice therefore, E. Causes of Breach; 'Waiver. 1. Neither party shall be held to be in breach of this Agreement because of any failure to perform any of its obligations hereunder if said failure is due to any cause for which it is not responsible and over which it has no control; provided, however, that the foregoing provision shall not apply to failures by Lessee to pay fees, rents or over charges to Lessor. 2. The waiver of any breach, violation or default in or with respect to the performance or observance of the covenants and conditions contained hercin shall not be taken to constitute a waiver of any such subsequent breach, violation or default in or with respect to the same or any other covenant or condition hereof. ARTICLE KM ARBITRATION Except as provided in Paragraph I of Article V of this Agreement, all claims or disputes arising out of or relating to this Agreement shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association then obtaining. Notice of the demand for arbitration shall be filed in writing with the other party to the Agri-ement and with the American Arbitration Association and shall be made within a reasonable time after the claim or dispute has arisen, The award rendered by the arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. Except by written consent of the person or entity sought to be joined, no .arbitration arising out of ar relating to the Agreement shall include, by consolidation, joinder or in any other manner, any person or entity not a party to the Agreement, unless it is shown at the time the demand for arbitration is filed that (1) such person or entity is substantially involved in a common question of fact or law; (2) the presence of such person or entity is required if complete relief is to be accorded in the arbitration; and (3) the interest or responsibility of such person or entity in the matter is not insubstantial. The agreement of the parties to arbitrate claims and disputes shall be specifically enforceable under the prevailing arbitration law. Pending final decision of the arbitrator or arbitrators, the parties shaII proceed diligently with the performance of their obligations under this Agreement. FIXED BASED OPERATOR'S LEASE - Page 9 of II ARTICLE f`, A. Entire Agreement. This Agreement constitutes the entire understanding between the parties, and as of its effective date supersedes all prior or independent agreements between the parties covering the subject matter hereof. Any change of modification hereof must be in writing signed by both parties.. B. Severability. If a provision hereof shall be finally declared void or illegal by any court or administrative agency having jurisdiction, the entire Agreement shall not be void, but the remaining provisions shall continue in effect as nearly as possible in accordance with the original intent of the parties. C. Notice. Any notice given by one party to the other in connection with this Agreement shall be in writing and shall be sent by registered mail, return receipt requested, with postage and registration fees prepaid: 1. If to Lessor, addressed to: City Manager 312 First Avenue West P.O. Boy 1997 Kalispell, MT 59903-1977 2. If to Lessee, addressed to: David Roemer Red Eagle Aviation 1880 Highway 93 South Kalispell, MT 59901 Notices shall be deemed to have been received on the date of receipt as shown on the return receipt. D. ;headings. The headings used in this Agreement are intended for convenience of reference only and do not define or limit the scope or meaning of any provision of this Agreement. E. Governing Law, This Agreement is to be construed in accordance with the laws of the State of Montana. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. LESSOR: CITY OF KALISPELL Jaamm-H'. Patriclr,, City Manager LESSEE: i:�� 1, /�Oa4'— David Ho, er, d/b/a Red Eagle Aviation FIXED BASED OPERATOR'S LEASE - Page 10 of 11 STATE OF MONTANA } ) ss. County of Flathead } On this day of Au 2005, before me, a Notary Pubhe for the State of Montana, personally appeared J�atrick, City Manager of the City of Kalispell and proved to me to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same. LAI WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year hereinabove first written. \,�<<nUilllrrrr,. 1 N OIu,R! STATE OF MONTANA ss. County of Flathead NOTARY PI(�3LIC State of Montana Residing at; My Commission expires: 6L.1 f3103 On this � day of LI :54-, 2005, before me, a Notary Public for the State of Montana., personally appeared David Hoemer, proved to me to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same. IA' WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year hereinabove first written. NOTARY POALIC State of Montana Residing at: I,,-) ^ l My Commission expires�--Ca FIXED RASED OPERATOIR'S LEASE - Page 2 of 11 DEED EXHIBIT Nw 1/4 NW 1/4 SEC. 20 'T2SN- RZ1W M.P M. eoto SO '500 Lloyd �. McClintick Reg, No. 758s I lit Lgial�i 2m Office i. J R/R Staff RIR .' Reception I Area _ Office Glass Room ( Site Plan r—--—— — — — — — — I I I I , I I I I I I i I I I I kengar#4 I I I I s I I ' I i i I I I I i I I I I I i Hangartt3 i I � I I , I I I I I I I I I I I I 1 HanPar{F^< I I I i I , I { I i 1 { I f I I I I i I I �5 I I I I � I i I , I I � � I Hangar tit I I j I I j I I I I I � I I J I Office I I ; I I I � I I I I I I I 1 I I I I —— -------------------- 2aD n Red Eagle Aviation r�A Description of the Improvements The improvements consist of a one-story office and maintenance hangar facility, and three detached hangars, together with miscellaneous site improvements. (See Floor Plan and Dimensions of Building on opposite pages). The buildings have the following dimensions and gross building areas (GBA): Building 1 (Office): 24-0 x 51-0 = 14-6 x 57-6 = Building 1 (Elangar): 60-0 x 62-0 = Building I Total: Building 2 (Hangar): 36-0 x 93-0 = Building 3 (Hangar): 36-0 x 93-0 = Building 4 (Hangar): 32-0 x 190-0 = Building i 1,224 834 2,058 sf x 9' = 18,522 cf 3.720 sf x 16' = 59?54 cf 5,778 sf 77,772 cf 3,348 sf x 14' = 46,872 cf 3,348 sf x 14' = 46,872 of 6,080 sf x 13' = 79,040 cf This building is occupied as offices and hanger/shop space for a flight based operation, The office portion is composed of waiting room, staff area, two offices, class room, and two rest rooms. The office portion has a poured concrete foundation, painted concrete black exterior walls built-up tar and gravel roof cover. Windows are a combination of fixed double -pane and thermopane casements. Exterior doors are commercial aluminum and glass. Insulation factors are believed to be typical, but were not verified. Interior finish consists of quarry tile flooring in waiting room area, corrimercial carpet in offices and class room, and vinyl in the rest rooms; painted concrete block and sheetrock walls, painted sheetrock; fiberboard the ceilings with flusb-mounted fluorescent flight fixtures. Interior doors are solid and hollow -core wood. There are several built-in counters and cabinets in the staff area, front office and the hall off of the rest rooms, The office area is heated by a gas forced -air furnace. The electrical system is 100 amps with breakers, flexible conduit wiring and typical outlets and switches. Plumbing fixtures include a single vanity and toilet in each rest room and a urinal in the teen's room; stall shower off the hall to the hangar; 52 gallon electric water heater. The office was constructed around 1969 and appears to be in average overall condition for its age. Roof cover was replaced in 1996; interior remodeling around 1999. Deferred GARRIE APPPAISAL & CONSULTING, LLC Red Eagle Aviation .Z3 The hangar has brushed concrete floor finish; three T-hangar partitions (QSB); no ceiling finish. The hangar is not heated. The electrical system is .200 amps, with breakers, rigid conduit wiring and incandescent Iight fixtures. There are no plumbing fixtures in the hangar. The hangar is in average overall condition for its age with no major deferred maintenance noted. The effective age is estimated at 4 years based on an economic life of 30 years. The present configuration and interior finish also appear adequate for the current tenants. Hence, no functional obsolescence was attributed to the building. Building 4 This building is an aircraft storage hangar built around 1970. The hangar has a reinforced concrete foundation with a gravel floor. Exterior walls are wood framed, 13 ft in height with metal siding; roof structure is a wood truss system with metal roof cover. There are six 12x40 sliding doors. The building has a gravel floor; T-hangar .partitions (OSB); no ceiling finish. The hangar is not heated. The electrical system is 125 amps, with breakers, rigid conduit wiring and incandescent light fixtures. There are no plumbing fixtures in the hangar. The hangar is in average overall condition for its age with no major deferred maintenance noted. The effective age is estimated at IS years based on an economic life of 30 years. The present configuration and interior finish also appear adequate for the current tenants. Hence, no functional obsolescence was attributed to the building. Additional Improvements Other improvements include two 12,000 gallon underground fuel storage tanks (DOT approved); computer monitored fuel island with one pump; asphalt paving (approx. 76 x 108 = 8,208 sf) off Hangar 1; concrete apron off Hangar 1 and concrete wallas to office (Bldg 1); split rail fencing and gravel parking lot (south of office). .I,r, . �s . �.• 1. I Fixtures No fixtures other than the built-ins and mechanical systems within the buildings were noted. The free-standing furniture, appliances and equipment were not included in the appraisal. QARRIE APPRAISAL & CONSULTING, LLC STARR COMPANIES GLOBAL INSURANCE & INVESTtdEM 3353 Peachtree Road NE, Suite 1000 Atlanta, GA 30326 ram Certificate Holder: CITY OF KALISPELL P.O. BOX 1997 KALISPELL, MT 59903 Named Insured: RED EAGLE AVIATION, INC. 1880 HWY 93 SOUTH KALISPELL MT 59901 Policy Period: From JULY 3 2017 To DULY 3 2018 Policy Number: 1000216360-03 Issuing Company: STARR INDEMNITY & LIABILITY COMPANY i ins Is to certny tnat the poucy(iesj listed herein have been Issued providing coverage for the listed insured as further described. This certificate of insurance is not an insurance policy and does not amend, extend, or alter the coverage afforded by the policy(ies) listed herein. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate of insurance may be concerned or may pertain, the Insurance afforded by the poficy(ies) listed on this certificate is subject to all the terms, exclusions, and conditions of such policy(ies). Aviation Commercial General Liability Limits of Insurance Each Occurrence Limit Damage to Premises Rented to You Limit Medical Expense Limit Personal & Advertising Injury Aggregate Limit General Aggregate Limit Products/Completed Operations Aggregate Limit Hangarkeepers Limit Each Aircraft Limit Each Loss Limit Hangarkeeper's Deductible $ 1,000,000. $ 250,000. Any one premises $ 5,000. Any one person $ 1,000,000. $ NOT APPLICABLE $ 1,000 000. $ 250,000. $ 500,000. $ 2,500. Each Aircraft THE CERTIFICATE HOLDER IS INCLUDED AS AN ADDITIONAL INSURED UNDER LIABILITY COVERAGES BUT ONLY AS RESPECTS THE OPERATIONS OF THE NAMED INSURED. THE CERTIFICATE HOLDER WILL BE PROVIDED WITH THIRTY (30) DAYS (TEN (10) DAYS IF FOR NON-PAYMENT OF PREMIUM) NOTICE OF CANCELLATION OR MATERIAL CHANGE. Certificate Number: 2.1 Issued By and Date: JUNE 30, 2017 (JT) Starr 10058 (6/06) By (Au orized Representative) ••r • - r r • - - • • •- ;�� •; This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM YyCl�rlrl� v CITY OF KALISPELL P.O. BOX 1997 KALISPELL, MT 59903 Information required to complete this Schedule if not shown above will be shown in the Declarations. I SECTION II - WHO IS AN INSURED is amended to include as an additional Insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: A. In the performance of your ongoing operations; or B. In connection with your premises owned by or rented to you. All other provisions of this policy remain the same. This endorsement becomes effective JULY 3, 2017 to be attached to and hereby made a part of: Policy No. 1000216360-03 Issued to RED EAGLE AVIATION, INC. By STARR INDEMNITY & LIABILITY COMPANY Endorsement No. TBA Date of Issue JUNE 30 2017 (JT) By (Authorized Representative) Starr 10060 (2/06) for AIRPORT MANAGEMENT SERVICES THIS AGREEMENT is made and entered into this —,/0 day of 2013, by ai d between the CITY OF KALISPELI,, IVMONTANA, a municipal corporation organized and existing under the laws of the State of Montana, 201 First Avenue East, Kalispell, Montana 59901, hereinafter referred to as "City,," and RED EAGLE AVIATION, INC., 1980 Highway 93 South, Kalispell, MT 59901, hereinafter referred to as "Contractor." WHEP,EAS: The City is the sole owner of the Kalispell City Airport for purposes of providing general aviation -related services to the flying public and for the promotion and development of commerce and economic growth for the region; and WFIEFMAS: The City desires to contract with the private sector in the provision of aviation - related services including but not limited to airfield inspections, airport advisories, NC}TAM issuances, public relations, grounds keeping; and other potential aviation -related services that may be developed. In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: I. purpose: City agrees to hire Contractor as an independent contractor to perfom-1 for City services described in the Scope of Services attached hereto as Exhibit "A" and by this reference made a part hereof. 2. Effective Date: This Agreement is effective as of January 1, 2014 and will terminate on the 30th day of June, 2017. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. 4. Paymen : City agrees to pay Contractor pursuant to the schedule of fees and charges as attached hereto as Exhibit "B" for services performed pursuant to the Scope of Services. Contractor shall also have the privilege of managing tie downs and receiving tie down fees at the rate of $20.00 per month. Any alteration or deviation from the described work that involves extra costs will be Performed by Contractor after written request by the City, and will become an extra charge over and above the contract amount. The parties must agree upon any extra charges in writing. i 6 Airport Management Services Agreement A. Facility maintenance: Except as otherwise provided herein, CITY shall provide necessary maintenance and repair of all CITY -owned buildings and transportation surfaces, taxiway lighting and navigational aids systems. CITY shall provide ail necessary runway markers and fencing. B. Tenant management: CITY shall approve airport leases and have billing and collection responsibilities for all said leases, commercial and user fees, with the exception of the tie -down fees. 6. Obhgations of the Contractor: A. flours of operation: Contractor agrees to provide daily coverage for services. Contractor agrees to provide emergency, off -hour, and back-up customer service from. persons living in the immediate area. Contractor agrees to provide a telephone number for the contact of normal and off -hour related services. This contact number shall be available for posting on aviation related information portals and the city website. B. 4irport Management Services: Contractor shall serve as the overall manager of the airport on behalf of the City, implement its general program duties and shall provide the services as set forth in the Scope of Services. Contractor shall further provide an annual calendar year report of tie -down receipts to the City Manager on or before February Vt of each year. 7. Independent Contractor Status: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose, Contractor is not subject to the terms and provisions of the City's personnel policies handbook and may not be considered a City employee for workers' compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers' Compensation Act, Title 39, Chapter 71, MCA., and the Occupational Disease Act of Montane, Title 39, Chapter 71, MCA. Contractor shall maintain workers' compensation coverage for all members and employees of Contractor's business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers' compensation coverage by an insurer licensed and authorized to provide workers' compensation insurance in the State of Montana; or (2) proof of exemption from workers' compensation granted by law for independent contractors. 8. Indemnity and Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to defend, indemnify, and hold the City harmless against claims, demands, suits, damages, losses; and expenses connected therewith that 2 I Airport Management Services Agreement may be asserted or claimed against, recovered from or suffered by the City by reason of any injury or loss, including but not limited to, personal injury, including bodily injury or death, property damage, occasioned by, growing out of, or in any way arising or resulting from any intentional or negligent act on the part of Contractor or Contractor's agents or employees. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or willful misconduct of the Contractor or Contractor's agents or employees. For this purpose, Contractor shall provide City with proof of insurance issued by a reliable company or companies in amounts not less than as follows: Workers' Compensation - statutory Employers' Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate ® Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual aggregate The City shall be included or named as an additional or named insured on the Commercial General and Automobile Liability policies. The insurance must be in a form suitable to City. 9. Professional Service: Contractor agrees that all services and work performed hereunder will be accomplished in a professional manner. 10. Compliance with Laws: Contractor agrees to comply with all federal, state and local laws, ordinances, rules and regulations, including the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, including those that may be adopted during the term of this agreement. 1.1. Nondiscrimination: Contractor agrees that all hiring by Contractor of persons performing this Agreement will be on the basis of merit and qualification and will not discriminate on the basis of race, color, religion, creed, political ideas, sex, age, marital status, physical or mental disability, or national origin. 12. Default and Termination: If either party fails to comply with any condition of this Agreement at the time or in the manner provided for, the other party, at its option, may terminate this Agreement and be released from all obligations if the default is not cured within ten (10) days after written notice is provided to the defaulting party. Said notice shall set forth the items to be cured. Additionally, the non -defaulting party may bring suit for damages, specific performance, and any other remedy provided by law. These remedies are cumulative and not exclusive, Use of one remedy does not preclude use of the others. Notices shall be 3 I .Airport Management Services Agreement provided in writing and hand -delivered or mailed to the parties at the addresses set forth in the first paragraph of this Agreement. 1.3. Modification and Assignabflitr This document contains the entire agreement between the parties and no statements, promises or inducements made by either party or agents of either party, which are not contained in this written Agreement, may be considered valid or binding. This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor's rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 14. Ownership and Publication of Materials: All reports, information, data, and other materials prepared by the Contractor pursuant to this Agreement are the property of the City. The City has the.exclusive and unrestricted authority to release, publish or otherwise use, in whole or part, informnation relating thereto. Any re -use without written verification or adaptation by the Contractor for the specific purpose intended will be at the City's sole risk and without liability or legal exposure to the Contractor. No material produced in whole or in part under this Agreement may be copyrighted or patented in the. United States or in any other country without the prior written approval of the City. 15. Liaison: City's designated liaison with Contractor is Doug Russell, City Manager and Contractor's designated liaison with City is James Pierce. 16. Applicability: This Agreement and any extensions hereof shall be governed and construed in accordance with the laws of the State of Montana and the venue of law for any dispute shall be the 1 l 6 District Court for Flathead County, Montana. IN FITNESS REOF, the parties hereto have executed this instrument the clay and year first above written. CITE' OF KALISPELL, MONTANA D ssell City Manager 4 Airport Management Services Agreement RE, D EAGLE AVIATION, INC. ley 3a s-Pierce, President Exhibit "A" a) Notify the City of needed maintenance and repair of buildings, grounds and equipment b) Provide NOTAM issuances and airport advisories to FAA Flight Services c) Provide daily inspection of runway/apron/taxiway surfaces, lighting and navigational aid systems d) Comply with and enforce applicable regulations and adopted standards pertaining to the airport e) Communication with the City, and FAA if necessary, on field conditions affecting the safe use of the airport f) Report violations of ordinances, policies, or rules regulating the use of the airport to the City g) Provide available personnel to meet the needs of the airport and the Eying public h) Work with the City on the planning, budgeting, and development of airport facility modifications and improvements i) Provide customer service to airport users and the flying public j) Provide snow removal services for the runway/aproii/taxiway/parking areas as necessary according to a schedule as agreed upon with the City Manager k) Provide mowim/haying/weed services for the airport grounds as necessary according to a schedule as agreed upon with the City Manager I) Maintain a logbook of complaints and concerns received which will be available for review by the City Manager Airport Management Services Aureement Item Description Unit Price Total Manaaernent Day to day operations, 12 months $2,000.00 $36,000.00 insurance, mowing zn weed spraying, liaison with City, FAA, Contractors and public users. Snow Plowing Clear I each $400.00 $400.00 taxiways/runways/aprons and Parking areas Airport gcment Services Agreement STATE OF MONTANA ) ):ss County of Flathead ) t On this 5 day of .r, 2013, before me, the undersigned, a Notary Public in and for the State of Montana, personally appeared James Pierce, President of Red Eagle Aviation, Inc., a Montana corporation, that executed the foregoing instrument, and acknowledged to me that he executed the foregoing instrument as the free and voluntary act of said corporation, for the uses and purposes therein set forth, and that he was duly authorized to execute the same on behalf of said corporation. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial_ Seal the day and year in this certificate first above written. o®t%$I IIfety PZACHE.L. iB AR & Hid NOTARY Pt18UC for the /NOTARIAL State of Montano SEAL 51'd $�,4ar�t Residing of Kalispell, Montano 4���, my Commission Expires August 31, 2017 STATE OF MONTANA ) ):ss County of Flathead ) Printe Name: Notary Public, State of Montana Residing at � My Commission Expires � I - Z fit `7 On this , day of� 2013, before me, a Notary Public in and for the State of Montana., personally appeared DO€7O RUSSELL, known to me to be the City Manager of the City of Kalispell, a municipality, that executed the within instrument, and acknowledged to me that such City Manage- executed the foregoing instrument as the free and voluntary act of said municipality, for the uses and purposes therein set forth, and that he was duly authorized to execute the same on behalf of said municipality. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal, the day and year first above written. 7 THERESA WHttt NOTARY PUBLIC fa the SEAL State+�Mont SAT Ntarrri 2 7. 2017 Airport Management Services Agreement Printed Name: Notary Public, State of Ivlanna----` Residing at _— --"`J M ission Expires Annual Leases Lease amount billed July 2017 A-1 S27 T Hangar Condo Owners Assc.-K Benesh $ 3,951.99 67 Overlook Ridge Kalispell, MT 59901 A-2 S27 T Hangar Condo Owners Assc $ 3,951.99 67 Overlook Ridge Kalispell, MT 59901 A3-1 Paul Beard $ 1,165.06 300 Pine Needle Lane Bigfork, MT 59911 A3-2 Bruce and Janice Louden $ 1,165.06 820 Lower Valley Rd Kalispell, MT 59901 A3-3 James M. LaVore Aero, Inc $ 1,165.06 228 Corsair Rd Duck Key, FL 33050 305-731-6418-jmlavore@me.com A-4 Swank Enterprises - Attn: Dewey Swank $ 2,242.47 PO Box 10007 Kalispell, MT 59904 A-5 Zach Anderson $ 2,052.17 Mount Cleveland Dev. LLC 7393 Hwy 35 Bigfork, MT 59911 A-6 VACANT A-7 Dewahl Adventures LLC $ 1,231.97 PO Box 10007 Kalispell, MT 59904 A-8 DNRC $ 1,231.97 PO Box 201601 Helena, MT 59620 A-9 VACANT A-10 IVACANT A-11 VACANT A-12 Strand Aviation, Inc Billed monthly: $132.87 PO Box 987 Bremerton, WA 98337 Ground Hilton Garden Inn $ 14,002.47 Lease 1840 Hwy 93 S Kalispell, MT 59901 w N a (A m m m CL 0 m B 0 (A mCL a) (D > OQ =;- w (D 00 00 0 0 00 (D 0 vi W co > 0 0 CL x x �4 vi NJ V m 0 L'i � cn LA r- ii O (D Lri Lri Ln Lrl Ul 0 0 c) o 0 ci b 0 0 0 6 C) 0 0 0 0 fD O O Ln Ln 0 0 0 0 m b 6 10101 (A m 0 fD Ln (A rD � 3 (A m ci 00 N Un 90 i.0 I I I I W 1 4_f} 0 co cu m C. After sale or assignment by TENANT of its interest here, TENANT shall be relieved from liability for rental payments .accruing thereon, and the buyer, assignee, or transferee shall thereafter be liable. d. Transferee under this paragraph shall only acquire the balance of the term of the lease and shall be subject to all terms and conditions of this lease, including the obligation to provide CITY with proof of insurance coverage as required by 18. 7. If, for any reason, the CITY discontinues aviation operations on Kalispell City Airport site, the CITY may terminate this lease and may elect to pay TENANT the unamortized portion of the cost of the hangar, herein authorized to be built. That amortization is to be computed on a straight-line basis over the period from the completion of the improvement up to 15 years. 8. TENANT shall hold harmless and indemnify the CITY from any and all liability claims of any kind or nature, whatsoever, arising out of the erection or expansion of the building upon the premises contemplated, herein, or the use of said premises by TENANT or TEN °s invitees or licensees. a. As evidence of TEN 's covenant herein, TENANT at TENANT expense shall keep in force, during the term of this Lease, insurance, issued by an insurance company, licensed to do business in Montana, protecting the CITY against all liabilities, judgments, costs, damages and expenses which may accrue against, be charged to, or recovered from the CITY, by reason of damage to property of, injury to or death of any person or persons on account of any matter or thing which may occur on the demised premises. b. Policy or -policies in the amount of Seven Hundred and Fifty Thousand Dollars ($750,000.00) with respect to any one person, and One Million and Five Hundred Thousand Dollars ($1,500,000.00) with respect to any one occurrence shall be held. Said insurance policy shall name the CITY, its officers, employees and agents as additional named insureds, and shall not be canceled or materially changed without at least thirty (30) days prior notice to the CITY, and shall be subject to approval as to coverage by the CITY. 2008 Airport Lease Page 4 of 9 015 n MONTANA ELEVENTH, JUDICIAL DISTRICT COURT FLATHEAD COUNTY- JOHN TALMAGE, MONTANA DIAMOND AIRE, INC., and RJT PROPERTIES, LLC, Plaintiffs, vs. CITY OF KALISPELL, KALISPELL CITY AIRPORT ADVISORY BOARD and FRED LEISTIKO, Defendants. Cause No. D.V. -04-286(E3) 06 (Heidi Ulbricht) SETTLEMENT AND ASSIGNMENT AGREEMENT This Settlement and Assignment Agreement is entered into this a7- day of July, 2013, by and between John Talmage, Montana Diamond Aire, Inc. ("Diamond Aire"), and RJT Properties, LLC ("RJT") (collectively, "Plaintiffs") and the City of Kalispell (the "City"), Kalispell City Airport Advisory Board ("KOAAB"), and Fred Leistiko (collectively, "Defendants"), as follows: WHEREAS on October 12, 2000, Talmage purchased Diamond Aire, LLC a fixed base operation ("FI30") located at 1893 Airport Road, Kalispell, Montana. Diamond Aire was engaged in the business of selling fuel and other services to Kalispell City Airport users; and WHEREAS on October 12, 2000, Talmage, by and through his company, RJT, purchased the real property located at 1893 Airport Road, Kalispell, Montana ("the Property"); and WHEREAS following the purchase, Diamond Aire continued to operate and sell fuel and other services to Kalispell Gity Airport users pursuant to a lease agreement with RJT; and r�� M F5 WHEREAS on November 1, 1999, the City approved a plan to upgrade the Kalispell City Airport to B2 status (Resolution 4518), which would be regulated by (and receive financial support from) the Federal Aviation Administration ("FAA"); and WHEREAS between October 29, 2003 and November 30, 2003, in an effort to secure the airport, the City caused a fence With a gate to be erected between the airport and the Property; and WHEREAS as a result of the fence, Plaintiffs filed a lawsuit against the City, KCAAB, and various city officials, Cause No. DV-04-286(B) in the Montana I Eleventh Judicial District Court in and for Flathead County, Montana ("the Lawsuit"), alleging that the fence unreasonably impaired access to and from Plaintiffs' Property and businesses; and WHEREAS while the Lawsuit was pending and as part of a runway upgrade project, the City changed the runway; and WHEREAS Plaintiffs allege that Defendants wrongfully removed the paved taxiway to Plaintiffs' Property, thereby further impairing access to and from Plaintiffs' Property and businesses; and WHEREAS the City and KCAAB moved for summary judgment on all claims on May 31, 2007, said Motion was granted on December 11, 2007, and the Judgment thereon was subsequently appealed to the Montana Supreme Court; and WHEREAS Plaintiffs allege that while the appeal' was pending, the City of Kalispell stated that it would purchase the Property at its appraised value subject to certain environmental testing; and WHEREAS Plaintiffs allege that the airport manager, Fred Leistiko, was responsible for overseeing the appraisal and environmental testing; and WHEREAS Plaintiffs allege that Leistiko negligently made false statements concerning the results of the environmental testing, indicating to third parties (including City Council, Kalispell airport users and Plaintiffs' banker) that the Property was contaminated, that adjacent properties and the airport as a whole either were or were at risk of being contaminated, and that Diamond Aire could be hold financially responsible for substantial clean up costs it could not afford; and WHEREAS Plaintiffs allege that the suggestion that Plaintiffs' were contaminating the airport subjected P[aintiffs to ridicule and contempt; and WHEREAS Plaintiffs allege that Diamond Aire lost most of its customers', WHEREAS the City did not purchase the Property; and WHEREAS, Plaintiffs allege that as a result of Defendants' wrongful conduct, Talmage suffered severe mental anguish and distress, which greatly disrupted his life and occupation; and WHEREAS on January 4, 2010, the Montana Supreme Court reversed the District Court's summary judgment order and remanded the case for further proceedings; and 3 072 In WHEREAS Plaintiffs filed their Second Amended Complaint on May 26, 2010, adding Leistlko as a defendant and adding a count for slander, alleging as grounds that Defendants made disparaging and false statements about Plaintiff's' businesses, and WHEREAS the Amended Complaint also alleged that as a result of Defendants wrongful conduct, Talmage suffered severe emotional distress; and WHEREAS, the Parties have largely completed discovery and submitted their Pretrial Order, which includes Plaintiffs' Contentions that (1) Defendants negligently damaged Plaintiff's property, businesses, and reputation, (2) Defendants led customers to believe that Plaintiffs were out of business, would be barred from doing business in the future, or were nearing bankruptcy; and (3) as a result of Defendants' conduct, Plaintiffs have suffered damages including lost actual and prospective income, diminution in value of the business and Property, loss of reputation, and severe emotional distress; and WHEREAS Defendants deny wrongdoing but believe that there is a substantial risk that a jury would find for the Plaintiffs and that damages awarded for loss of reputation, last business, diminution in value of the Property and businesses, loss of the comfortable enjoyment of life and property, and emotional distress, could equal or exceed the amount of the Stipulated Judgment given herein even if Defendants continued to deny liability; WHEREAS the Defendants are insured by ACE Property and Casualty Insurance Company ("ACE") under Airport Owners and Operators General Liability Policies incepting February 11, 207, and renewed each year through M 0 M M_ February 11, .2011, providing a per occurrence benefit of $5,000,000 ("the Policies"); and WHEREAS ACE- denied a defense and indemnity to the Defendants, despite being given the opportunity to provide same, and WHEREAS the Defendants reported the claim to ACE upon realization of covered claims occurring during periods covered by the Policies, after the filing of the Amended Complaint, and at least three months before trial; and WHEREAS Defendants acknowledge that a verdict against them could be substantial, given the nature of the fiability exposure and the damages, causing non -budgeted and pcssibly serious financial damage and detriment to the Defendants; and WHEREAS the Parties have considered what reasonable amount may be awarded in damages if the case proceeded to trial; and WHEREAS the Parties have, negotiated in good faith as adverse parties and have reached an agreement which fairly and reasonably resolves their dispute; and WHEREAS, the Parties agree that it is not their intention to release or discharge AGE andfor its agents from any of their liability to the Parties or any other entity or natural person by way of the ACE Policy or under Montana law; nor is it the intent to release or discharge ACE from its liabilities or obligations to satisfy or discharge the Stipulated Judgment described below; and WHEREAS, the Assignment described herein is given prior to the discharge or release of any liability for payment or, the Stipulated Judgment and 9 as a condition precedent to the waiver of any deficiency action against Defendants should the Stipulated Judgment not be fully satisfied pursuant to this Agreement. This Agreement is further given in consideration of Plaintiffs' agreement to forebear further proceedings in the Lawsuit against Defendants and their mutual agreement to the Stipulated Judgment. NOW, THEREFORE, for and in consideration of the promises made herein and the judgment to be entered in this cause, the Parties enter into the following agreement in order to provide compensation to Plaintiffs as well as to protect Defendants from financial harm, A, Settlement Agreement: The settlement agreement shall be as follows: 1. STIPULATED JUDGMENT. A Stipulated Judgment (attached as Exhibit A) in the total amount of $1,500,000.00 (one million five hundred thousand) against the City and Leistlko, and in favor of Plaintiffs shall immediately be submitted for entry by the Court in this action, to bear interest at the legal rate from the date of entry of the final judgment. 2. COVENANT NOT 70 EXECUTE. Plaintiffs agree that they shall not now or at any time in the future attempt in any manner whatsoever either directly or indirectly to execute, garnish, levy, or attach any asset or property in an attempt to satisfy the Stipulated Judgment against Defendants, and that actions to execute or collect therefrom shall be stayed as against Defendants, and shall not be subject to execution except as provided herein. This covenant not to execute shall in no way be construed to prohibit the undersigned, directly or indirectly, from executing upon the insurance Policies issued by ACE that offer defense and/or coverage obligations for the claims described herein- 3, SATISFACTION OF JUDGMENT, Upon completion of any and all legal actions including appeals, if necessary, undertaken by Plaintiffs against ACE endeavoring to recover pursuant to the Stipulated Judgment, whether successful or not, Plaintiffs shall deliver to Defendants a full and complete satisfaction of the Stipulated Judgment entered pursuant to this Agreement, 4. ASSIGNMENT. The City and Leistiko, hereby assign to Plaintiffs any right, title, and interest in any cause of action they may have against ACE, pursuant to the Policies and Montana law, subject to the following conditions: a. Defendants, by this agreement, assign one hundred percent (100%) of their interest in any damages obtained in the action against ACE. Defendants shall have no interest in any attorney's fees or costs awarded in connection with that action. b. Defendants will cooperate fully with Plaintiffs and their counsel in the pursuit of the action against ACE, including providing any necessary documentation upon request, attending depositions andlor any necessary conferences or meetings called by Plaintiffs, and otherwise providing information which may be called for in Plaintiffs' sole discretion incident to the prosecution of the action. Additionally, Defendants agree to promptly notify Plaintiffs of any communication received from ACE, its agents or attorneys, related to or that may impact the action contemplated herein, Plaintiffs agree that their requests of Defendants shall be reasonable and not burdensome. 7 In G. Plaintiffs and their counsel shall have the SDIe discretion to determine whether and how to pursue any lawsuit and shall have the sole authority to compromise, resolve or try the claim or lawsuit as PlaintIffs, and their counsel deem appropriate, Likewise, Plaintiffs and their counsel may, in their sole discretion, determine whether or not to appeal an adverse decision, or defend any appeal by ACE. 5. CASH PAYMENT, The Defendants agree to pay to the Plaintiffs the sum of One Hundred Thirty Thousand and No/1 00 Dollars ($130,000.00) on or before July,12, 2013, to be funded by Defendants' insurers, Chartis Aerospace Insurance Services, Inc, ("Chartis") (in the amount of $50,000.00), Montana Municipal Insurance Authority (WMIA") (in the amount of $30,000.00), and Old Republic Insurance Company ("Old Republic") (in the amount of $50,000.00). All sums shall be paid by check or wire transfer to James D. Moore's Trust Account. The cash payment is in addition to and shall not be credited against the Stipulated Judgment. The settlement payments made by the insurers are not joint and several and each of the three insurers is only responsible for its referenced share.) 6. REMOVAL OF FENCE. The City of Kalispell shall remove the existing fence on its property at its expense by August 1, 2013. In its sole discretion, the City may re -construct the fence at its expense through the buildings on the Diamond Aire property in the manner and in the location as described in the prior Mild Fence diagram attached hereto as Exhibit B in order to provide security to the airport. The City shall thereafter maintain the fence at its 8 expense and keep it in reasonable repair. The fence shall remain the property of the City. Plaintiffs grant to the City of Kalispell a limited easement to construct and maintain the fence described herein, such easement to run with the land so long as it is shall be used for airport purposes, If in removing, disassembling, moving, constructing or maintaining the fence, the City damages the Property, taxiways to the Property, and/or access roads adjacent to the Property, the City shall promptly repair the damage at its expense, The Parties agree that if the Property is used for non-airporUnor-aeronautical purposes by a subsequent grantee/purchaser, the City may erect a fence at its expense along the perimeter boundary. It is agreed that any use by Plaintiffs or their subsequent purchasers following any relocation of the fence will result in no prescriptive claim, 7. WAIVER OF PAST DUE USER FEES. Defendants agree to waive any and all user fees incurred and unpaid by the Plaintiffs through the date this agreement is executed. 8. FUTURE USE OF THE PROPERTY. The City hereby agrees to remove the Deed restriction that presently requires the Property to be used for airport facilities and operations. The City shall give Plaintiffs an irrevocable, transferable/assignable license to continue to access and use Kalispell City Airport, and such irrevocable license shall continue under these terms notwithstanding the Airport being upgraded to FAA 132 status or other modifications to the Kalispell Airport Master Plan, provided the Property continues to be used primarily for aeronautical and/or airport purposes. Plaintiffs agree to adhere to the regulations found in Ordinance No, 1622 Airport Standard Operating Procedures, or as it may be amended in the future, and Resolution No. 4804 regarding fees paid by commercial users, tax on sales of fuel, etc, or as it may be amended in the future, All users of the airport are subject to and are required to abide by these regulations. Talmage may continue to reside at the Property, and such use shall not be deemed a non -aeronautical and/or non - airport use, In the event a sale of the Property is contemplated, the City shall have the right of first refusal to purchase the Property. J. ACCESS AND VISIBILITY, The Defendants shall not construct a hangar or other obstruction on the piece of land directly in front of Diamond Aire, so long as the Property's primary commercial use is for aeronautical and/or airport purposes, 10. ADVERTISING, The Defendants shall allow Diamond Aire to place a sign at or near the location of its previous sign and in approximately the same size and dimensions of the previous sign to alert potential customers of Diamond Aire's existence, location, hours, services offered, and/or related matters, however, the sign must not violate airport usage guidelines and city ordinances, 11, MUTUAL RELEASE. Except as to those claims that are the subject of the Stipulated Judgment, Assignment, and Covenant Not to Execute referenced in this agreement, the Parties hereby agree to release one another, from any and all claims, actions, causes of action, demands, damages or liens, whether asserted or unasserted, known or unknown, foreseen or unforeseen, including but not limited to claims for subrogation, statutory or common law liens 10 or attorneys' liens, arising out of the facts and circumstances which are or could have been the subject of the Lawsuit, 12, Release of Insurers. Chartis, MMIA , Old Republic, and Phoenix Aviation Managers, Inc., and their reinsurers, and all of their respective officers, employees, agents, directors, successors and assigns shall be collectively referred to herein as the "Released Insurers". Released Insurers shall not mean and/or include ACE, its parents, affiliates, subsidiary companies, reinsurers, or any of their respective officers, employees, agents, directors, successors and assigns. The parties release the Released Insurers from any claims, actions, causes of action, demands, damages or liens, whether asserted or unasserted, known or unknown, foreseen or unforeseen, including but not limited to claims for subrogation, statutory or common law liens, or attorneys' liens, arising out of the facts and circumstances which are or could have been the subject of the Lawsuit. This includes any and all first and third party claims arising out of the investigation, handling, adjusting, defense or settlement of the claims for which this Release is given including, without limitation, any claims for breach of contract, in tort, violation of the covenant of good faith and fair dealing, violation of Montana Code Annotated §§ 33-18-201 et seq., any other statute or regulation, for common-law bad faith or any other common law action. The parties acknowledge that the Released Insurers dispute coverage for the claims presented and that the payment of funds by the Released Insurers is not an admission of coverage but rather a compromise of disputed claims. . 11 n 1-9 13. NO ADMISSION OF WRONGDOING, It is understood that the above listed consideration, including the assignment of rights, is accepted as the sole consideration for the full satisfaction and accord to compromise a disputed claim, and that neither the payment of the sum by Defendants or its insurers nor the negotiations for settlement shall be considered an admission of wrongdoing. 14. Medicare & Lien Conditions: Plaintiffs agree that they are responsible for any and all payments, liens, repayments or satisfaction of any kind or nature due or payable to any person, organization, insurance company, health care provider, physician, hospital, HMO, PPO, Medicare, Medicaid, SSDI, mechanic, vendor or supplier of any nature or kind that may have any type of lien or encumbrance of any kind on the proceeds of this settlement and release. Plaintiffs agree that they will hold the Releasees (Defendants and Released Insurers) harmless and indemnify them from any and all expenses, penalties including attorneys' fees, resulting from any liability for such claims. Plaintiff represents that he/she has not been provided with any medical --are that has been covered by Medicare, Medicaid, or the SCHIP Extension Act of .2007 ("MMSEA") in connection with the Accident, and that there exist no MIMSEA liens or rights of subrogation arising from medical care provided in connection with the Accident. Plaintiffs agree that they are solely responsible for paying all sums of money owing to any third party, including, but not limited to, costs of court, attorneys' fees, liens and medical liens. In further consideration of the above payment, Plaintiffs hereby agrees to hold harmless and indemnify the said Reieasees (Defendants and Released Insurers) for any and all expenses, 12 liabilities, liens, judgments, further claims, obligations, debts, actions, causes andior rights of action, damages (including, but not limited to, punitive damages), pre- and post -settlement interest, costs, expenses, attorneys' fees, and payments actually incurred (whether or not litigation be commenced) that may be made or asserted against the Releasees by the United States Social Security Administration, Medicare, Medicaid, workers compensation andlor any other state, federal, or private health, sickness and/or disability insurer who has paid or reimbursed or indemnified Releasing Party on account of the alleged incident. CONDITIONS. Plaintiffs at their sole option may void this agreement if Defendants' insurers do not timely fund the Cash Payment portion of this settlement. 15. ARMS LENGTH, The Parties agree that this Settlement Agreement is entered into at arms' length. The parties shall not claim mistake of fact or law for setting this Settlement Agreement aside. 16. SUCCESSORS AND ASSIGNS. The covenants, agreements, representations, and warranties contained in this Contract shall bind and inure to the benefit of the Parties and their successors and assigns, 17. ENTIRE AGREEMENT, This Agreement Constitutes the entire Agreement and understanding of the Parties with respect to the subject matter hereof and may not be amended, or any of their provisions waived, except by a writing executed by all the parties hereto. 18. TAXATION, Neither Defendants nor Defendants' attorneys make any representations about the taxability of any portion of the consideration made 13 n M in exchange for this Release and settlement. Plaintiffs shall bear the sole responsIbIllty for any and all tax consequences related to this Release' and Settlement Agreement, and shall fully indemnify Defendants and Defendants' attorneys for any tax liability that arises thereof, 'including any fees and costs related to enforcement of this clause. 19, VALID WHEN EXECUTED IN COUNTERPARTS, This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same Agreement, and shall become effective when such counterparts have been signed by each of the parties and delivered to counsel for the other parties, 20, CHOICE OF LAW The laws of the State of Montana shall apply to the interpretation of this Agreement. 21. ENFORCEMENT. Either party may move to enforce the provisions of this Agreement, which proceedings shall be brought solely in the Montana Eleventh Judicial District Court, Flathead County. The prevailing party shall be entitled to its/their fees and costs incurred in connection with such proceedings. SIGNED AND DATED this � q"'day of July, 2DI 3, Plaintiffs, John Talmage, Diamond Aire, Inc., and RJT Properties, LLC dolinralmage, indiVid—ually and for Dianiond Aire, Inc, and RJT Proper -ties, LLC Approved: 14 M M am s D, core ney at Law 30 nth Street Fast, Suite 201 Post Office Box 116 Kalispell, Montana 59903 Telephone: (406) 755-8332 Facsimile: (406) 755-8339 Meghan C. Moore Andrea DeField Ver Ploag & Lumpkin Miami, FL 33131 Telephone: (305) 577-3996 Facsimile: (305) 577-3558 mmc)ore@vpl-law.com adefield@vpl-law,corn Attorneys for Plaintiffs Defendant City of Kalispell Defendant Kalispell City Airport Advisory Board Approved: TODD A. HAMMER, ESQ. Todd A. Hammer Angela Jacobs Hammer, Hewitt, Jacobs & Floch, PLLC P.O. Box 116 Kalispell, Montana 59904 Attorneys for City of Kalispell Defendant Fred Lelstiko IS m m m=1 & mz=-I Ni, Wilk;m L. Crowley Natasha Prinz�ing on Boone Karlberg PO' BOX 9199 Missoula, Montana 59807 Attorneys for Fred Leistiko 16 m Fwj Fred el-stiko WILLIAM L. CROWLEY William L, Crowley Natasha Prinzing Jones Boone Karlberg P.C. P,O' Box 0199 Missoula, Montana 59807 Attc)rneys for Fred Leistiko 16 n 0 FzYNTIMIN-1 I� IJ li LI- trr OW, W-1 01.0111 AIRE, INC., and RJT PROPERTIE] LLC, Plaintiffs, vs. CITY OF KALISPELL, KALISPELL CITY AIRPORT ADVISORY BOARD and FRED LEISTIKO, Defendants. After negotiations, Plaintiffs and Defendants have reached and entered into a settlement agreement, a copy of which is attached hereto as Exhibit A. Pursuant to the terms and provisions of the Settlement Agreement, Plaintiffs and Defendants City of Kalispell and Fred Leistiko stipulate to the entry of judgment in favor of the above -named Plaintiffs and against Defendants City of Kalispell and Fred Leistiko in the sum of ONE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($1,5DO,000), as well as interest on said judgment at the rate of (10%) per annurn from this date until paid, The filing of said judgment, as well as any execution upon said judgment, shall be subject to the terms and conditions of the Settlement Agreement attached as eWbit A. This Stipulated Judgment entered against the City of Kalispell and Fred Leistiko is not - intended to have any prejudicial impact upon the City of Kalispell's eligibility for bonding purposes. 1 Dated this — day of July, 2013. Joh'Valmage, individually and tor Cit of K S I Diamond Aire, Inc, and RJT By Properties, LLC Approved: JAMES D. MOORE, ESQ. am , ocre neyv �YtLaw 30 5th Street East, Suite 201 Post Office Box 116 Kalispell, Montana 59903 Telephone: (406) 755-8332 Facsimile; (406) 755-8339 Meghan C. Moore Andrea DeField Ver Ploeg & Lumpkin, P,A. 100 S. E, Second Street, 30th Floor Miami, FL 33131 Telephone: (306) 577-3996 Facsimile: (305) 577-3558 rnrnooreQvP1-1aver, com adefleld )vr)l-iaw-com Attorneys for Plaintiffs 2 Approved; I Todd A. Ha Angela Jacobs Hammer, Hewitt, Jacobs & Floch, PLLC P.0, Box 116 Kalispell, Montana 59904 Attorneys for City of Kalispell Fred Lelstiko WILLIAM L, CROWLEY, ESQ, William L. Crowley Natasha Prinzing Jones Boone Karlberg P.C. P.C. Box 9199 Missoula, Montana 59807 Attorneys for Fred Leistiko M M Dated this — day of July, 2013. Individ6ally and for Diamond Aire, Inc. and RJT Properties, LLC Approved: luanlk% core WVney at Law 317 5ih Street East, Suite 201 Post Office Box 116 Kalispell, Montana 59903 Telephone: (406) 755-8332 Facsimile: (406) 755-8339 Megharl C. Moore Andrea DeField Ver Ploeg & Lumpkin, P.A, 100 S.E. Second Street, 30th Floor Miami, FL 33131 Telephone: (305) 577-3996 Facsimile: (305) 577-3558 mmoore@ml-iaw.com adefieldaypl-law.com Attorneys for Plaintiffs 0) URy of Kalispell By: F—.,T#TI#MM Todd A. Hammer Angela Jacobs Hammer, Hewitt, Jacobs & Flooh, PLLC P.0' Box 116 Kalispell, Montana 59904 Attorneys for City of Kalispell Fred Leistiko approved; VVILLIAM L. CROWLEY, ESQ, t j A � Williarn L. Crowley Natasha Printing Jones Boone Karlberg P.C. P.O, Box 9199 Missoula, Montana 59"7 Attorneys for Fred I-eisliko m M i i_ LIP X H "I T. ti ......... ...... off Li oll fill. ------ ,Y' It YL r . • RELEASOR: FRED LEISTIKO RELEASER PHIL GUIFFRIDA DATE OF CASUALTY: ANY TIME PRIOR TO THE DATE OF THIS RELEASE I! 'I 1 * ►1 OF CASUALTY: ANY AND ALL INJURIES OR DAMAGES, WHETHER KNOWN OR UNKNOWN, PAST OR FUTURE, ARISING FROM RELEASEE'S CONDUCT, INCLUDING ANY STATEMENTS OF ANY NATURE, WRITTEN OR VERBAL, THAT WERE, ALLEGED IN OR COULD HAVE BEEN ALLEGED IN OR WERE RELATED TO THE CIVIL CAUSE OF ACTION IDENTIFIED BELOW SUM OF SETTLEMENT: $25,000.00 CIVIL CAUSE NO.: MONTANA ELEVENTH TUDICIAL DISTRICT COURT CAUSE No. DV-13-1092A Release The undersigned Releasor acknowledges receipt of the above sum of money and in consideration for payment of such sum ($25,000,00), fully and forever releases and discharges, and covenants not to sue Releasee, Releasee`s Heirs, personal representatives, successors, assigns, employees, attorneys, partners, officers, shareholders, directors, members, parentt companies, subsidiaries and related companies and their employees, attorneys, partners, officers, shareholders, directors, members from any and all actions, claims, causes of action, demands, or expenses for damages or injuries, whether asserted or unasserted, known or unknown, foreseen or unforeseen, arising out of the described casualty, as well as any and all claims for bad faith, breach of the implied covenant of good faith and fair dealing, or any other cause of action relating to the negotiation, handling and settlement of this claim. 2. Future Damages Inasmuch as the injuries, damages, and losses resulting from the events described herein may not be fully known and may be more numerous or more serious than it is now understood or expected, the Releasor agrees, as a further consideration of this agreement, that this Release applies to any and all injuries, damages and losses resulting from the casualty described herein, COMPREHENSIVE, FINAL AND IRREVOCABLE RELEASE OF ALL CLAIMS AND RIGHTS — FRED LEISTMO Page 1 o; 4 even though now unanticipated, unexpected and unknown, as well as any and all injuries, damages and losses which have already developed and which are now known or anticipated. 3. Release of Insurer Releasor further releases National Union Fire Ins. Co. of Pittsburgh, PA/AIG Aerospace; AIG Aerospace Adjustment: Services, Inc., and its agents, successors, assigns, employees, attorneys, partners, officers, shareholders, directors, members, parent companies, subsidiaries and related companies and their employees, attorneys, partners, officers, shareholders, directors, members from all obligations under any part of the insurance policies applicable to Releasor's claims and from any and all claims arising out of the investigation, handling, adjusting, defense or settlement. of the claim including, without limitation, any statutory, common law or other claims, including any claims under Section 33-15,242, M.C.A. 4. No Admission of Liability It is understood that the above -mentioned sum is accepted as the sole consideration for full satisfaction and accord to compromise a. disputed claim, and that neither the payment of the sum by or on behalf of Releasee nor the negotiations for settlement shall be considered as an admission of liability. Released Parties For the purposes of this Release, the Releasee, Releasee's heirs, personal representatives, successors, assigns, employees, attorneys, partners, officers, shareholders, directors, members, parentt companies, subsidiaries and related companies and their successors and assigns shall be considered and referred to collectively as "Released Parties." 6. Apportionment of Payment to L,ienholders This payment shall be apportioned by Releasor among doctors, hospitals, all other health care providers and services, and any other individuals, companies, agencies, ERISA plans, workers' compensation insurers or governmental agencies, including Medicare and Medicaid, political subdivisions, or attorneys who may have valid liens or rights of subrogation or reimbursement, and Releasor agrees to indemnify, defend and hold all the Released Parties, National Union Fire Ins. Co. of Pittsburgh, PA/AIG Aerospace, AIG Aerospace Adjustment Services, Inc., and their attorneys harmless from and against all such claims by such parties, including payment of attorney's fees and costs incurred, No Additional Claims Releasor represents that no additional claims are contemplated against any other party potentially liable for the losses, damages, and injuries for which this Release is given. In the event any additional claim is made which directly or indirectly results in additional liability exposure to any of the Released Parties for the losses, injuries, and damages for which this COMPREHENSIVE, FINAL AND IRREVOCABLE RELEASE OF ALL CLAIMS AND RIGNTS — FRED LEISTIKO Page 2 of 4 Release is given, Releasor covenants and agrees to indemnify, defend and hold the Released Parties harmless from all such claims and demands, including payment of attorney's fees and costs incurred. 8. Future Cooperation and Choice of Laws All parties agree to cooperate fully, to execute any and all additional documents and to take all additional actions that may be necessary or appropriate to give full force and effect to the terms and intent of this Release. This release agreement shall be interpreted pursuant to the laws of the State of Montana, No Reliance by Releasor Releasor warrants, represents and agrees that Releasor is not relying on any advice of the Released Parties or their attorneys as to the legal, income tax or any other consequence of any kind arising from this Release and the settlement of this matter as between Releasor and the Released Parties, Released Parties and their attorneys shall not be liable to Releasor if the legal, income tax or other consequences of this Release and settlement are other- than those anticipated by Releasor. Releasor also understands and agrees that National Union Fire Ins. Co. of Pittsburgh, PA/AIG Aerospace, AIG Aerospace Adjustment Services, Inc.; will issue evidence of this payment as it interprets its legal obligations to do so. 10. Stipulation for Dismissal With Prejudice Releasor stipulates and agrees that. Releasor's attorney of record shall dismiss with prejudice, as fully settled upon the merits, any civil actions arising out of the above referenced casualty, Each party shall pay their respective costs and attorneys' fees. 11, Disclaimer Releasor has carefully read the foregoing, discussed its legal. effect with Releasor's attorney, understands the contents thereof, and signs the same of Releasor's own free will and accord. This Release shall be binding upon Releasor's and Releasee's heirs, successors, personal representatives and assigns. If there is more than one Releasor, this Release will bind all Releasors and the obligations of the Releasors under this Release shall be joint and several. a,,, DATED this day of �In'� , 2015. COMPREHENSIVE, FINAL AND IRREVOCABLE RELEASE OF ALL CLAIMS AND RIGHTS -- FRED LEISTIKO Page 3 of 4 FRED LEISTIKO, RELEASOR STATE OF M TA Gc ; ss County o i r On this 'day of ` _, 2015, before me, the undersigned, a Notary Public for the State afore aid, personally app, ared FRED LEISTIKO, known to me to be the person whose name is subscribed to the wit in instrument, and acknowledged to me that he executed the same, IN )A71TNESS WHEREOF, I have hereunto set my hand and affixed my Notarial seat the day and year first above written, (SEAL) APPROVED BY: C46-x,q�o C� ✓ �� Constance Leistiko Attorney for Releasor M tprrnt or t}pe notai ynant ,Y Residing at " My Commission expire, TAp qF K AYHLEEN R, PMRNM o iyr NOTARYPUSLICferft * SAL * State or Montane Residing at Kaiispoll, Montana CofM My Commission Expires November 1, 2016 COMPREHENSIVE, FINAL AND IRREVOCABLE RELEASE OF ALL CLAIMS AND RIGHTS — FRED LEISTIKO Page 4 of 4