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<br />the Sponsor as determined appropriate by the State. All local contracts must be approved <br />by the State for scope and reasonable cost. Reimbursement requests for local contracts <br />shall be submitted on fprms provided by the State and payment shall be made for no more <br />than 50% of allowable charges. <br /> <br />The State will not participate 10 funding for force account work conducted by the <br />Sponsor. <br /> <br />6. This Grant shall terminate upon completion of the scope of services. The term of this <br />grant may be extended by the execution of an Amendment to the Agreement. <br /> <br />Part In - Sponsor Responsibilities <br /> <br />1. In accepting this Grant, the Sponsor guarantees that: <br /> <br />a. it will, in the operation of the facility, comply with all applicable state and federal <br />laws, rules, regulations, procedures, covenants and assurances required by the <br />State in connection with this Grant; and <br /> <br />b. the Airport or navigational facility which is the subject of this Grant shall be <br />controlled by the Sponsor for a period of at least 20 years; and <br /> <br />c. consistent with safety and security requirements, it shall make the airport or air <br />navigational facility available to all types, kinds and classes of aeronautical use <br />without discrimination between such types, kinds and classes and shall provide <br />adequate public access during the period of this Grant; and <br /> <br />d. it shall not grant or permit anyone to exercise an exclusive right for the conduct of <br />aeronautical activity on or about an airport landing area. Aeronautical activities <br />include, but are not limited to scheduled airline flights, charter flights, flight <br />instruction, aircraft sales, rental and repair, sale of aviation petroleum products <br />and aerial applications. The landing area consists of runways or landing strips, <br />taxiways, parking aprons, roads, airport lighting and navigational aids; and <br /> <br />e. it shall not enter into any agreement nor permit any aircraft to gain direct ground <br />access to the sponsor's airport from private property adjacent to or in the <br />immediate area of the airport. Further, Sponsor shall not allow aircraft direct <br />ground access to private property. Sponsor shall be subject to this prohibition, <br />commonly known as a "tbrough-the-fence operation," unless an exception is <br />granted in writing by the State due to extreme circumstances; and <br /> <br />f. it shall not permit non-aeronautical use of airport facilities without prior approval <br />of the State; and <br /> <br />g. the Sponsor shall submit to the State annual statements of airport revenues and <br />expenses when requested; and <br />Page 3 of 11 <br /> <br />AVN4301.00c (212001) <br />