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NOW THEREFORE,pursuant to and for the purpose of carrying out the provisions of the Airport and Airway <br /> Improvement Act of 1982,as amended by the Airport and Airway Safety and Capacity Expansion Act of 1987, herein <br /> called the"Act,"and/or the Aviation Safety and Noise Abatement Act of 1979, and in consideration of(a)the <br /> Sponsor's adoption and ratification of the representations and assurances contained in said Project Application and <br /> its acceptance of this Offer as hereinafter provided, and (b)the benefits to accrue to the United States and the public <br /> from the accomplishment of the Project and compliance with the assurances and conditions as herein provided,THE <br /> FEDERAL AVIATION ADMINISTRATION, FOR AND ON BEHALF OF THE UNITED STATES, HEREBY OFFERS <br /> AND AGREES to pay, as the United States share of the allowable costs incurred in accomplishing the Project, <br /> 95°/0 percent of those eligible project costs. <br /> The Offer is made on and subject to the following terms and conditions: <br /> Conditions <br /> 1. The maximum obligation of the United States payable under this offer shall be $185,000.00. For the <br /> purposes of any future grant amendments which may increase the foregoing maximum obligation of the <br /> United States under the provisions of Section 512(b)of the Act,the following amounts are being specified <br /> for this purpose: <br /> EJ <br /> ❑ $ 180,000.00 for planning <br /> $ 5,000.00 Administrative Oversite (sponsor) <br /> 0 $ 0.00 airport development <br /> 0 noise program implementation. <br /> 2. The allowable costs of the project shall not include any costs determined by the FAA to be ineligible for <br /> consideration as to allowability under the Act. <br /> 3. Payment of the United States share of the allowable project costs will be made pursuant to and in <br /> accordance with the provisions of such regulations and procedures as the Secretary shall prescribe. Final <br /> determination of the United States share will be based upon the final audit of the total amount of <br /> allowable project costs and settlement will be made for any upward or downward adjustments to the <br /> Federal share of costs. <br /> 4. The Sponsor shall carry out and complete the Project without undue delays and in accordance with the <br /> terms hereof,and such regulations and procedures as the Secretary shall prescribe, and agrees to <br /> comply with the assurances which were made part of the project application. <br /> 5. The FAA reserves the right to amend or withdraw this offer at any time prior to its acceptance by the <br /> sponsor. <br /> 6. This offer shall expire and the United States shall not be obligated to pay any part of the costs of the <br /> project unless this offer has been accepted by the sponsor on or before August 23,2006 or such <br /> subsequent date as may be prescribed in writing by the FAA. <br /> 7. The Sponsor shall take all steps, including litigation if necessary,to recover Federal funds spent <br /> fraudulently,wastefully,or in violation of Federal antitrust statutes, or misused in any other manner in any <br /> project upon which Federal funds have been expended. For the purposes of this grant agreement,the <br /> term"Federal funds"means funds however used or disbursed by the Sponsor that were originally paid <br /> pursuant to this or any other Federal grant agreement. It shall obtain the approval of the Secretary as to <br /> any determination of the amount of the Federal share of such funds. It shall return the recovered Federal <br /> share, including funds recovered by settlement,order or judgment,to the Secretary. It shall furnish to the <br /> Secretary, upon request, all documents and records pertaining to the determination of the amount of the <br /> Federal share or to any settlement, litigation, negotiation,or other efforts taken to recover such funds. All <br /> settlements or other final positions of the Sponsor, in court or otherwise, involving the recovery of such <br /> Federal share shall be approved in advance by the Secretary. <br /> 8. The United States shall not be responsible or liable for damage to property or injury to persons which <br /> may arise from,or be incident to, compliance with this grant agreement. <br /> 9. The attached Part V Assurances dated 3-2005, incorporated hereto with the Grant Offer, are hereby <br /> made a part hereof, in lieu of those in the Sponsor's Project Application. <br /> Page 2 of 4 Pages <br />