US Department of Agriculture 4/3/2017

and the additional insured provision shall provide for insurance coverage for the United States as required under this clause. Such policies shall also specify that the insurance company shall give 30 days prior written notice to the authorized officer of cancellation of or any modification to the policies.The certificate of insurance,the authenticated copy of the insurance policy,and written notice of cancellation or modification of insurance policies should be sent to 810 State Route 20, Sedro-Woolley WA 98284. Minimum amounts of coverage and other insurance requirements are subject to change at the sole discretion of the authorized officer on the anniversary date of this permit. 1. Liability. The holder shall have in force liability insurance covering losses associated with the use and occupancy authorized by this permit arising from personal injury or death and third-party property damage in the minimum amount of $1,250,000.00 as a combined single limit per occurrence. 2. Depending on the holder's operations,the Forest Service may require the holder to demonstrate the availability of funds to address any release or threatened release of hazardous materials that may occur in connection with the holder's use and occupancy.Any requirements imposed would be established on a case-by-case basis by the authorized officer based on the degree of environmental risk from the holder's operations.The use and storage of normal maintenance supplies in nominal amounts generally would not trigger financial assurance requirements. IV. PERMIT FEES AND ACCOUNTING RECORDS A.PERMIT FEE.The holder shall pay to the USDA, Forest Service, an annual permit fee for the term of this permit based on the fair market value of the use and occupancy authorized by this permit.The annual permit fee shall include a commercial use fee and, if applicable, an assigned site fee and grazing fee,as enumerated in clauses IV.B, C,and D.The minimum annual permit fee for the authorized use and occupancy shall be$110. Estimates of service days,the number of assigned sites, and grazing use shall be determined from the five-year or annual operating plan. Estimated fees shall be calculated on an Estimated Fee Determination Sheet.The holder shall pay the annual permit fee in advance of the authorized use and occupancy,as provided in clause IV.B. Payments due before commercial operations commence are not refundable.The Forest Service shall adjust and calculate permit fees authorized by this permit to comply with any new permit fee system based on market value that may be adopted by statute, regulation or directive issued by the Chief after issuance of this permit. 1.COMMERCIAL USE FEE.The annual permit fee shall be determined in accordance with option B(3%of gross revenue). (a)Definitions (1)Adjusted Gross Revenue.Gross revenue and revenue additions less applicable exclusions. (2)Gross Revenue.The total amount of receipts from the sale of goods or services provided by the holder or third party under the permit. (3)Revenue Additions.The market value of the following items,which are added to gross revenue: (A)The value of goods and services that are donated or the value of goods and services that are bartered in exchange for goods and services received that are directly related to the outfitted or guided trip;and (B)The value of gratuities,which are goods,services, or privileges that are not available to the general public and that are donated or provided without charge to organizations; individuals;the holder's employees,owners, or officers; or immediate family members of the holder's employees,owners, or officers. (4)Revenue Exclusions.The following are excluded from gross revenue: (A) Revenue derived from goods or services sold on private land that are not related to outfitting and guiding operations conducted on National Forest System lands,such as souvenirs,telephone toll charges,and accident insurance sales. (B)Amounts paid or payable to a State government licensing authority or recreation administering agency from sales of hunting or fishing licenses and recreation fee tickets. (C) Revenue from the sale of operating equipment, rental equipment, capitalized assets, or other assets used in outfitting