CLARIFICATION No. 1

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1 YYC CALGARY AIRPORT AUTHORITY The Calgary Airport Authority Procurement & Contracts Calgary International Airport 2000 Airport Road N.E. Calgary, Alberta T2E 6W5 FOR: REQUEST FOR EXPRESSIONS OF INTEREST (RFEI) Page 1 of 1 RFEI NO.: P Date: October 4, 2012 INQUIRIES Calgary Airport Authority rfei@yyc.com CLARIFICATION No Please see the attached questions and answers. END OF CLARIFICATION NO. 1. This clarification will form part of and be included in the RFEI Document originally issued for the above named project and no consideration will be given to requests for extras to this request for expression of interest due to the vender not being familiar with this clarification. Please acknowledge receipt of this clarification via a return to rfei@yyc.com. Date: Company: Name: Signature:

2 1 Will the new areas have need of a duty free liquor outlet at all? Yes; there will be duty free service available, including the liquor category. Per page 5 of the RFEI, Duty Free is not part of the RFEI opportunity. 2 Could current up to date blueprints/floor plan of retail areas be provided? The high resolut ion exhibits C to H, and J are both current and the only drawings available. Repondents may include an assumption for food court Common Area Maintenance (CAM) costs expressed as a percentage of projected gross Is is possible to find out the approximate rental cost per SQF for the 3 revenue; as CAM costs cannot be accurately determined at this time, Food Court - quick serve area. respondents may assume a CAM cost percentage of 8.0% for RFEI submission purposes. 4 Will the 300 room hotel be pre-security or post secuirty? The hotel will be a pre-security operation. 5 Will the hotel be a full service hotel or will it be a micro-hotel? The hotel will be a full service hotel operation. 6 Has the RFEI blocked off space for services for a sleep and wellness or relaxations suites concept? As stated within the RFEI document, other general services concepts may be proposed for potential consideration. The space allocation matrix does not mention service categories such as General services categories can be proposed for one or more of the defined 7 manicures, massage or a spa space. Have you allocated space for these retail spaces, on a generic non-specific basis, or responders may indicate categories? other suggested locations for potential consideration by the Authority. 8 Which spaces have been allocated for service concepts? Please refer to response No. 7 above. 9 Could a service concept be bid on any retail specialty concept space listed? Please refer to response No Have you allotted space for a full spa concept? Please refer to response No. 7. Desired services and utilities requirements for proposed concepts should be 11 Will water be made available to the service concept spaces? clearly specified and may or may not be practical for the Authority to consider for specified or non-specified locations. Term length would be variable and dependent upon a respondent's proposed investment and resulting amortization term requirement. 12 What is t he anticipated contract term for this opportunity? Generally, the Authority considers 5 to 10 year term lengths appropriate, but may a consider longer term length upon mutually agreable financial and other terms. 13 Yes, the transborder (USA) level is situated above the international level. All passengers will be required to check in from the international departures The RFEI floorplans indicate that the trans border (USA) passenger level. The international (non-usa) passengers would enter via the holding area is directly above the international passenger holding area- international duty free area, and USA bound passengers would alternatively is that correct? If so, how do the people get to t he upper level. Do they proceed through the United States Customs and Border Protection (USCBP) arrive via car on an upper deck that would state the transborder (USA) processing area in order to be pre-cleared for their USA-bound flights (this departing gates, and for international departures would passengers process occurs alongside the space allocated to int ernational duty free). drive to the main level? They would then proceed via escalator (or for special needs requirementsan elevator) to the upper transborder level, exiting the elevator into the t ransborder duty free space, before reaching the transborder holding area. We understand that Duty Free is not part of this opportunity. Can you 14 please provide the use clause for the Duty Free operator as this may impact the retail concepts in the terminal? The specific use clause for this operator is not available for distribution, as this is a private contract. Please confirm if all international and transborder departing passengers It is anticipated that 65%- 70% of originating international passengers and 15 will be exposed to the concessions at the pre-secu rity departures level all transborder departing passengers will have exposure to the pre-security (Exhibit H). departures level concessions.

3 Please confirm if all arriving international and transborder arriving 16 pa ssengers will be exposed to t he concessions at t he pre-security arrivals level (Exhibit J). It is anticipated that all non-connecting, arriving international and t ransborder passengers will be exposed to the pre-security arrivals level concessions; connecting passengers who must re-check baggage will have a lesser degree of potential exposure to this concession area. Ca n respondents request store locations in International Holding and Respondents may request a location or locations in one or more Holding 17 U.S. Transborder Holding? areas. 18 For the narrat ive description what informat ion are you looking for? As indicated in the RFEI, the Authority wishes to be able to understand the Respondent's specific concept for the concession(s} with perspective photographs/illustrations, including the Respondent's plan for financing the design, development and tenant construction fit-out of the concession concept(s), as well as identifying any anticipated infrastructure requirements. If you are an existing YYC ret ailer do you need to provide detailed Respondents are advised to provide a response that will fully address the 19 assortment lists and store drawings? information requested in Question 21 above. Is foreign exchange and ATM's included in your retail category? Usually 20 an Airport Authority indicates where they feel foreign exchange kiosks and ATMs should be situated. Foreign exchange and ATM's are considered to be of the general services category, and consideration would be given for allocated retail locations (as and if appropriate}. for any suggested yet unspecified locations, and also on a general basis for to be determined locations. Please provide a narrative on passenger flow from t icketing to security to: As follows: - International Departures Holdroon Concessions After t icketing/baggage drop, international passengers proceed through pre- board screening process and proceed via a walk-through duty free shop directly into the international departures hold room area, where they will then await their call to gat e within the concessions area. 21 After ticketing/baggage drop, transborder passengers proceed through the pre-board screening process, directly followed by the USCBP (US Customs and Border Protection} admittance process. After clearing US Customs, - Transborder Departures Holdroom Concessions transborder passengers proceed by escalator up to the Transborder level, entering into and passing through a walk-through transborder level duty free shop, then entering the trans border departures hold room concessions area, where they will then await their call to gate. - Please provide informat ion regarding passenger flow and environment As follows: regarding the Domest ic to International Concessions relat ed to: Passengers would arrive in the Domestic to International Concessions area (see Exhibit F) as arriving inbound domestic connecting passengers directly -How do passengers get to this area? from the existing air terminal gates via a secure post-security corridor 22 system. - What quantity of passengers are expected in this area? - Have these passengers cleared US Customs? 30 to 35% of departing international (non-transborder} traffic would be expect ed in this area. No, these passengers are departing only to non-transborder international locations only. - Do these passengers need to remain in a secure a rea? Yes.

4 For the International Departures Holdroom Concessions spaces RS-01, 23 FB-01 and RS-02, do these spaces have three walls or is the back open to the Themeworks area? These locations have been designed to facilitate open backing to hold room seating areas, and are open to proposal for a closed wall format. The selection process will occur after the conclusion of the RFEI process, with the Authority anticipating contracts' completion during The Please elaborate on timeline of project (from selection process to 24 remaining timeline details will be further confirmed directly with parties of opening of business). interest to t he Authority after the conclusion of the RFEI process, for the anticipated opening of business in mid-october Respondents can assume that leased premises will be made available in base building condition (concrete floor, supplied landlord bulkhead as appropriate, taped/sealed/primed drywall demising walls, unfinished. In what condition will the premises be delivered to the retailer? Please ceilings), with typical food & beverage services metered to landlordclarify landlord work. designated points in the space. For non-food & beverage 25 concepts, respondents should clearly indicate any additional utiility service(s) desired, with the assumption that metered services may be made available at the lease line at the Authority's discretion. What is t he average time spent in the post security area of the Calgary An overall average dwell t ime of 105 minutes has been estimated by t he 26 airport? Authority. 27 What are the planned retailer hours of operation? Post-security operat ors will generally be required to staff for all departing flight activity; Respondents may consult the YYC.com website to confirm current depatures times for international and transborder flight activity. Presecurity operational hours will be determined according to the nature of the activity and overall operating requirements; again, Respondents may refer to the YYC.com website for current information. Are any units detailed in the exhibits already unavailable (either from a 28 new transaction or a retailer that is being relocated by the airport All detailed units are open for consideration as part of the RFEI process. authority from the existing terminal)? Kindly specify. With reference to the "What We Are Building" section, on page 3 of RFEI document, please clarify if this new terminal is expected to handle the entire international and transborder (US) operations or if traffic will 29 be split with an existing terminal. If only responsible for partial t raffic, has expected allotment of total overall international and transborder traffic been calculated for this terminal? And if so, please specify breakdowns for each. This information would be extremely helpful. Airport operations are dynamic by nature and subject to periodic change, so that the Authority can manage and operate the overall airport in a safe and efficient manner. The Authority's current plans are to relocate international and transborder passenger activities to the new terminal area; however, these plans may be subject to change pr ior to the opening of the new terminal, and/or may also be subject to further change in the future. Respondents should make their business case assumptions with this understanding and on this basis. 30 Pl ease provide plans indicating which retailers are present in the existing terminal. This information can be found on the Authority's website. How is rent determined? Is it a PS F rate, or a percentage rent? Respondents are requested to submit a financial pro-forma that 31 Do we propose a rent, or does the airport authority provide rates includes a non-binding rental proposal based on percentage of gross once the desired tenants are narrow ed down? revenue from operations. 32 How much is the additional rent for a food court unit? Repondents may include an assumption for food court Common Area Maintenance (CAM) costs expressed as a percentage of projected gross revenue; as CAM costs cannot be accurately determined at this time, respondents may assume a CAM cost percentage of 8.0% for RFEI submission purposes. 33 Are utilities separately metered? Yes The food court units in the Transborder Departures Level Overall Plan appear larger than a typical food court unit. Is it expected that the tenant will provide its own seating, along with the common seating being provided? 34 No

5 What is happening with the current food court tenants in the domestic departures area? Will there be an opportunity to secure Existing airport operations are a not a part of this RFEI process. 35 a premises at that area, along with the new airport expansion? Monthly parking permits can be purchased by airport concession 36 What is the parking arrangement for the business staff? tenants for their employees through the Authority's parking control office. All employees will have access to pre-security food and beverage concessions; however, for post-security locations, only those Will all employees of YYC have access to the food offerings in the employees who possess a valid Restricted Area Identification Card airport expansion? (RAIC) and who can demonstrate the need and right for such access would be able to patronize food and beverage establishments in these areas. 37