Amendment No. 1 to Transportation Services Contract between United States Postal Service and Evergreen Aviation Ground Logistics Enterprises Inc.

Summary

This amendment updates the transportation services contract between the United States Postal Service and Evergreen Aviation Ground Logistics Enterprises Inc. (EAGLE) for mail delivery between specified Pacific region air stops. It establishes a ninety-day period to set operational baselines for productivity and costs, which will be used to determine future price adjustments. The amendment also outlines conditions for price increases if mail volumes exceed certain thresholds and sets procedures for contract renewal and termination costs. The contract term runs from August 27, 2001, to August 26, 2006, with possible renewals.

EX-10.18 58 dex1018.txt AMEND. NO. 1 TO TRANS. SERVICES CONTRACT - PACIFIC REGION Exhibit 10.18 [LOGO] UNITED STATES POSTAL SERVICE Amendment to Transportation Services Contract - ---------------------------------------------------------------------------------------------------------------------- Part I - Amendment pursuant to - ---------------------------------------------------------------------------------------------------------------------- 1a. Contract No. 1b. Amendment No. 1c. Effective Date 1d. Begin Contract Term 1e. End Contract Term SNET-01-PR 01 (Page 1 of 4) 08/27/2001 08/27/2001 08/26/2006 - ---------------------------------------------------------------------------------------------------------------------- 1f. For Mail service City & State City & State in or between Pacific Area Air stops LAX, ONT, SAN, OAK, SMF, HNL - ---------------------------------------------------------------------------------------------------------------------- Part II - Contractor - ---------------------------------------------------------------------------------------------------------------------- 2a. Name and address of contractor (street, city, state, and Zip___) 2b. Social Security Number or Taxpayer ID No. Evergreen Aviation Ground Logistics Enterprises Inc. (EAGLE) EVERGREEN EAGLE 93-0876736 ------------------------------------------------ 3850 Three Mile Lane 2c. Telephone (Area code and number) McMinnville, OR 97128-9496 ###-###-#### - ---------------------------------------------------------------------------------------------------------------------- Part III - Description of amendment Add to Section G Special Clauses: G.12. Ninety-day Baselines a. The Postal Service and the supplier agree that during the first ninety days after the start of contract operations or subsequent time as mutually agreed, they will jointly analyze the operations to determine baselines for work hours, equipment, and productivity (work hours per mail volume). If the ninety-day baselines indicate a higher productivity, or a lower usage of work hours or equipment than those upon which the supplier based its proposal, then: i. the initial contract award price will not be reduced; however, ii. the 90-day baselines will serve as benchmarks for determining the amount of future price increases to which the supplier is entitled, as set forth in paragraph c. c. In the event that the Postal Service increases mail volumes in excess of the baselines set forth in paragraph a. of clause G.13 of the contract, or makes a change to the contract which increases the supplier's costs, the supplier will be entitled to a price adjustment only for the costs that are in excess of the work hours or equipment costs upon which it based its proposal ("the proposal figures") or established baselines, whichever is the higher base. The supplier will not be entitled to a price increase attributable to the increase in work hours or equipment costs from the ninety-day baselines, up to the proposal figures. d. If the ninety-day baselines indicate a lower productivity, or a higher usage of work hours or equipment than those upon which the supplier based its proposal, then no upward price adjustment will be made that would have the effect of correcting an error in the original proposal. The baselines established in G.12.a. will only be used to reflect changed conditions occurring after they are established. Except as provided herein, all terms and conditions of the contract described in Part I remain unchanged and in full force and effect. The parties hereunder have caused this amendment to be executed, effective the date set forth in Part III. - ---------------------------------------------------------------------------------------------------------------------- Contractor U.S. Postal Service - ---------------------------------------------------------------------------------------------------------------------- Signature of person authorized sign and date Signature of contracting officer and date /s/ Brian Bauer 10/4/01 /s/ Cheryl R. Brazil 10/12/01 - ------------------------------------------------------- --------------------------------------------------------- Signature Date Signature Date BRIAN BAUER PRESIDENT Cheryl R. Brazil Purchasing Spec./C.o. Name and title of person authorized to sign Name and title of contracting officer - ----------------------------------------------------------------------------------------------------------------------

PS Form 7406, June 1990 [LOGO] UNITED STATES POSTAL SERVICE Amendment to Transportation Services Contract - ---------------------------------------------------------------------------------------------------------------------- PART I - Amendment pursuant to - ---------------------------------------------------------------------------------------------------------------------- 1a. Contract No. 1b. Amendment No. 1c. Effective Date 1d. Begin Contract Term 1e. End Contract Term SNET-01-PR 01 (Page 2 of 4) 08/27/2001 08/27/2001 08/26/2006 - ---------------------------------------------------------------------------------------------------------------------- 1f. For Mail service City & State City & State in or between Pacific Area Air stops LAX, ONT, SAN, OAK, SMF, HNL - ---------------------------------------------------------------------------------------------------------------------- Part II - Contractor - ---------------------------------------------------------------------------------------------------------------------- 2a. Name and address of contractor (street, city, state, and Zip___) 2b. Social Security Number or Taxpayer ID No. Evergreen Aviation Ground Logistics Enterprises Inc. (EAGLE) EVERGREEN EAGLE 93-0876736 ------------------------------------------------ 3850 Three Mile Lane 2c. Telephone (Area code and number) McMinnville, OR 97128-9496 ###-###-#### - ---------------------------------------------------------------------------------------------------------------------- Part III - Description of amendment - ---------------------------------------------------------------------------------------------------------------------- G.13. Price Increases Due to Increases in Mail Volumes a. The supplier will be entitled to a price adjustment for increases in the volume of mail handled under the contract only to the extent that the volume for a scheduled period (not to exceed six times per year) is more than 120 percent of the respective average daily volume in pounds listed for the respective site in Attachment A, or requires more than 110 percent times the number of containers listed for the respective site in Attachments D and E to the Request for Proposals. b. To the extent that mail volumes exceed the baselines set forth in paragraph a. of this clause, and the supplier's costs have increased, paragraph c. of Clause G.12, above, will apply to the determination of any price increase. Additionally, in requesting such increase, the supplier agrees that it will base its request upon the same or higher level of productivity (work hours per mail volume) as the ninety-day productivity baseline. See Clause G. 12.a. G.14. Procedure for Contract Renewal This contract shall commence on August 27, 2001 and shall expire after the handling of the last tender of shipments on August 26, 2006. In accordance with clause B.5, the contract term may be renewed for three consecutive one-year periods. Not later than ten months prior to the then-current expiration date, the parties shall commence discussions with a view to renewing the contract. The parties shall agree not later than six months prior to the expiration of the then-current expiration date whether to renew the contract. G.15. Ceiling on Termination for Convenience Costs a. In the event that the Postal Service terminates this contract for convenience prior to its expiration date, as that date may be extended, the supplier's total termination costs shall be determined in accordance with the Termination for Convenience clause of this contract. However, the supplier agrees that the total maximum termination costs to which it is entitled shall be limited to an amount no greater than the total of the contract price of completed services, plus:. Except as provided herein, all terms and conditions of the contract described in Part I remain unchanged and in full force and effect. The parties hereunder have caused this amendment to be executed effective the date set forth in Part III. - ---------------------------------------------------------------------------------------------------------------------- Contractor U.S. Postal Service - ---------------------------------------------------------------------------------------------------------------------- Signature of person authorized sign and date Signature of contracting officer and date /s/ Brian Bauer 10/4/01 /s/ Cheryl R. Brazil 10/12/01 - ------------------------------------------------------- --------------------------------------------------------- Signature Date Signature Date BRIAN BAUER PRESIDENT Cheryl R. Brazil Purchasing Spec./C.o. Name and title of person authorized to sign Name and title of contracting officer - ----------------------------------------------------------------------------------------------------------------------

PS Form 7406, June 1990 [LOGO] UNITED STATES POSTAL SERVICE Amendment to Transportation Services Contract - ---------------------------------------------------------------------------------------------------------------------- Part I - Amendment pursuant to - ---------------------------------------------------------------------------------------------------------------------- 1a. Contract No. 1b. Amendment No. 1c. Effective Date 1d. Begin Contract Term 1e. End Contract Term SNET-01-PR 01 (Page 3 of 4) 08/27/2001 08/27/2001 08/26/2006 - ---------------------------------------------------------------------------------------------------------------------- 1f. For Mail service City & State City & State in or between Pacific Area Air stops LAX, ONT, SAN, OAK, SMF, HNL - ---------------------------------------------------------------------------------------------------------------------- Part II - Contractor - ---------------------------------------------------------------------------------------------------------------------- 2a. Name and address of contractor (street, city, state, and zip___) 2b. Social Security Number or Taxpayer ID No. Evergreen Aviation Ground Logistics Enterprises Inc. (EAGLE) EVERGREEN EAGLE 93-0876736 ------------------------------------------------ 3850 Three Mile Lane 2c. Telephone (Area code and number) McMinnville, OR 97128-9496 ###-###-#### - ---------------------------------------------------------------------------------------------------------------------- Part III - Description of amendment i. eighty percent of the supplier's total annual facilities and equipment costs, with mark-ups for G&A and profit, if the effective date of termination is from August 2001 through July 2002; or ii. seventy percent of the supplier's total annual facilities and equipment costs, with mark-ups for G&A and profit, if the effective date of termination is from August 2002 through July 2003; or iii. sixty percent of the supplier's total annual facilities and equipment costs, with mark-ups for G&A and profit, if the effective date of termination is from August 2003 through July 2004; or iv. thirty percent of the supplier's total annual facilities and equipment costs, with mark-ups for G&A and profit, if the effective date of termination is from August 2004 through July 2005; or v. ten percent of the supplier's total annual facilities and equipment costs, with mark-ups for G&A and profit if the effective date of termination is from August 2005 through July 2006. b. In the event that the Postal Service terminates for convenience an individual contract site, but does not terminate the entire contract, the supplier agrees that the total maximum termination costs to which it will be entitled will be no greater than the amount of the supplier's total annual facilities and equipment costs for the terminated site, in accordance with the same percentages and schedule as set forth in paragraph a. of this clause, plus the contract price of completed services. If the Postal Service terminates a contract site or sites or in its entirety, the Postal Service and supplier will jointly determine the disposition of equipment. Any salvage value or other benefits the supplier derives from the disposition of equipment will offset any termination for convenience costs for which the Postal Service is liable. Except as provided herein, all terms and conditions of the contract described in Part I remain unchanged and in full force and effect. The partners hereunder have caused this amendment to be executed, effective the date set forth in Part III. - ---------------------------------------------------------------------------------------------------------------------- Contractor U.S. Postal Service - ---------------------------------------------------------------------------------------------------------------------- Signature of person authorized to sign and date Signature of contracting officer and date /s/ Brian Baver 10/4/01 /s/ Cheryl R. Brazil 10/12/01 - ------------------------------------------------------- --------------------------------------------------------- Signature Date Signature Date BRAIN BAVER 10/4/01 Cheryl R. Brazil Purchasing Spec./C.o. Name and title of person authorized to sign Name and title of contracting officer - ----------------------------------------------------------------------------------------------------------------------

PS Form 7406, June 1990 [LOGO] UNITED STATES POSTAL SERVICE Amendment to Transportation Services Contract - ---------------------------------------------------------------------------------------------------------------------- Part I - Amendment pursuant to - ---------------------------------------------------------------------------------------------------------------------- 1a. Contract No. 1b. Amendment No. 1c. Effective Date 1d. Begin Contract Term 1e. End Contract Term SNET-01-PR 01 (Page 4 of 4) 08/27/2001 08/27/2001 08/26/2006 - ---------------------------------------------------------------------------------------------------------------------- 1f. For Mail service City & State City & State in or between Pacific Area Air stops LAX, ONT, SAN, OAK, SMF, HNL - ---------------------------------------------------------------------------------------------------------------------- Part II - Contractor - ---------------------------------------------------------------------------------------------------------------------- 2a. Name and address of contractor (street, city, state, and zip___) 2b. Social Security Number or Taxpayer ID No. Evergreen Aviation Ground Logistics Enterprises Inc. (EAGLE) EVERGREEN EAGLE 93-0876736 ------------------------------------------------ 3850 Three Mile Lane 2c. Telephone (Area code and number) McMinnville, OR 97128-9496 ###-###-#### - ---------------------------------------------------------------------------------------------------------------------- Part III -- Description of amendment G.16 Additional Facilities and/or Equipment If the supplier is required to lease or purchase additional facilities and/or equipment to support expanded operations during the term of the contract, the following will apply: 1) The supplier must provide notice to the Postal Service regarding the additional facility and/or equipment requirement. 2) The cost including termination for convenience cost of the equipment and/or equipment will be negotiated between the Postal Service and the supplier at the time of the contract modification. Change B.8.k. Scanning to read as follows: The THS is responsible to perform the scanning of mail or equipment, once scanning equipment is procured by the USPS. The THS should be aware that the THS may be required to scan mail being loaded into and unloaded from all containers. The requirement may encompass the loading and unloading of air or surface containers or both, as well as empty equipment. The THS will also be responsible for printing Dispatch and Routing (D&R) labels to be affixed to Unit Load Device (ULD) placards. The THS will follow instructions as provided in the attached Memorandum of Understanding, Version 1.0, dated August 21, 2001, regarding the use of USPS Label Printing Equipment and the Surface-Air Management System (S-AMS) software. The THS will be responsible for the security of all computer-related equipment and scanners that are associated with this label printing and scanning requirement It is agreed that the cost of label printing and scanning (excluding equipment, associated supplies, and maintenance of equipment) is included in the awarded contract price. Except as provided herein, all terms and conditions of the contract described in Part I remain unchanged and in full force and effect. The parties hereunder have caused this amendment to be executed, effective the date set forth in Part III. - ---------------------------------------------------------------------------------------------------------------------- Contractor U.S. Postal Service - ---------------------------------------------------------------------------------------------------------------------- Signature of person authorized to sign and date Signature of contracting officer and date /s/ Brian Bauer 10/4/01 /s/ Cheryl R. Brazil 10/12/01 - ------------------------------------------------------- --------------------------------------------------------- Signature Date Signature Date BRAIN BAUER 10/4/01 Cheryl R. Brazil Purchasing Spec./C.o. Name and title of person authorized to sign Name and title of contracting officer - ------------------------------------------------------- ---------------------------------------------------------

~~PS Form 7406, June 1990~~