Frontier Airlines 2005 Annual Report Download - page 60

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This expense includes the costs of crew training, crew travel, airport, passenger and ground handling related expenses, all
other lease expense, professional fees and all other administrative, facilities and operational overhead expenses not included in other
line items above.
Deferred Warrant Charge
Pursuant to our code-share agreements with Delta, we have fully vested, issued and outstanding warrants to Delta as follows:
Issued Number
of Shares
Exercise
Price
Expiration
Date
June 2002 825,000 $ 12.50(1) June 2012
June 2004 825,000 12.35(1) May 2014
February 2003 396,000 13.00 February 2013
October 2003 165,000 12.35 October 2013
March 2004 264,000 12.35 March 2014
December 2004 960,000 11.60 December 2014
(1) The exercise price is subject to downward adjustment, if we issue additional shares of our common stock in certain instances.
The deferred warrant charge as of December 31, 2005 was approximately $7.0 million which is amortized over the term of
the Delta code-share agreement, as amended. The annual reduction in revenue is a non-cash charge of approximately $370,000.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, February 27, 2006 Powered by Morningstar® Document Research℠