TranSystems Corporation - LGM Construction

1,000 gallons (or, if the job site is located in California, a storage tank for organic fluids with a
capacity equal to or greater than 250 gallons) (v) a paint booth or any equipment for paint and
coating operations, (vi) a fueling station, (vii) refrigeration or cooling units with a maximum
charge or 50 pounds or more or a capacity of one ton (12,000 BTU per hour) or more, or (viii)
portable engines, such as mobile generators or trailer-mounted air conditioners, and applicable
Environmental Laws require the issuance by a state or local air pollution control agency of a
construction permit in connection with that installation, Contractor shall obtain that permit before
beginning the installation of that air emission source. If applicable Environmental Laws do not
require the issuance by a state or local air pollution control agency of a construction permit in
connection with that installation, Contractor shall provide written confirmation of that fact to
FedEx before beginning the installation of the air emission source. If, in accordance with the
foregoing, Contractor obtains a construction permit, Contractor shall also timely convert that
permit to an operating permit upon completion of the installation of the air emission source. If
any permit that Contractor must seek in accordance with the foregoing will establish any
conditions that will affect the manner in which FedEx conducts its business operations at the Site
following the completion of the Work, Contractor must secure FedEx’s written consent to those
conditions before accepting the issuance of the permit. Contractor shall furnish FedEx with a
copy of each permit that Contractor obtains in accordance with the terms of this Section 13.12
promptly following Contractor’s receipt of the permit. The parties do not intend the terms of this
Section 13.12 to affect the generality of the foregoing provisions in this Article 13.
ARTICLE 14
TAXES
Section 14.01. Transaction Taxes. (a) Unless otherwise provided in this Section 14.01,
Contractor shall pay all taxes, excises, duties and assessments in the nature of sales, use or
similar taxes ("Transaction Taxes") that arise out of, or are related to, the Work and that any
government or agency having jurisdiction over the Work properly levies, assesses or imposes on
Contractor. Contractor shall cooperate, and shall cause the Subcontractors to cooperate, with
FedEx in determining which elements of the Work constitute the delivery of tangible personal
property to FedEx, which elements constitute the improvement to real property, and which
elements constitute non-taxable services. With each Application for Payment that Contractor
submits in accordance with the terms of this Agreement, Contractor shall furnish to FedEx, in the
form of the attached Exhibit C-6_ or such other form that FedEx prescribes, a description of the
Materials purchased and that portion of the Work accomplished during the period covered by the
Application and a statement of the corresponding amount of Transaction Taxes paid or payable
in respect of those purchases and that portion of the Work (the “Transaction Tax Statement”)
The Transaction Tax Statement must separately state which elements of the Work constitute the
delivery of tangible personal property to FedEx, which elements constitute the improvement to
real property, and which elements constitute non-taxable services.
(b) With respect to any portion of the Work that FedEx has determined constitutes the
delivery of tangible personal property or a taxable real property service, Contractor shall issue, at
FedEx’s direction and if permitted by applicable Legal Requirements, a sale for resale or
exemption certificate to its supplier or Subcontractor and may not pay any Transaction Taxes to
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