Frontier Airlines 2006 Annual Report Download - page 174

C. CONDITIONS
1. Renewal Option for Regional Jets. Upon expiration of the term of this Agreement for each tranches of ERJ aircraft
as described in Article II.B.1, United may renew the term for all or none of the ERJ aircraft covered under the terms of this
Agreement, for an additional term of five (5) years or less, by providing written notice to Contractor by no later than December 31,
2012 which notice shall specify the period of the renewal term.
2. [INTENTIONALLY OMITTED]
3. Ground Operations. Contractor agrees to be ground handled by ground service providers of United’s choosing.
Notwithstanding this, Contractor’s incentive goals will be based on the operating performance at all stations for which it provides air
service. United shall issue a Standards of Service document to all ground service providers, which will outline United’s
expectations for the ground service provider’s responsibilities, duties, and processes and procedures.
4. Pilot Consideration for 70-seat Regional Jet Employment for Furloughed United Pilots. Contractor
acknowledges that United has been required to furlough some of its pilots over the past several years. As additional consideration,
Contractor has agreed to provisions outlined in Letter Number 03-22, “Job Opportunities for Furloughed United Pilots” between
United and the Air Line Pilot Association dated August 21, 2003, the express terms of which are incorporated herein by reference.
United retains the right to recall furloughed pilots hired by Contractor. Any additional expenses borne by Contractor due to (a)
incremental wages that must be paid to furloughed pilots and (b) incremental training expenses (determined in the manner specified
below) will be reimbursed by United. Incremental training expenses for furloughed United Pilots, which shall be determined at the end
of each calendar quarter during the term of this Agreement, shall be the remaining unamortized prorated portion of training expenses
(which the parties agree shall be [*] per pilot) for any furloughed pilot that is recalled within 24 months of that furloughed pilot’s
commencement of work with Contractor. United agrees that it shall provide Contractor at least 90 days prior notice before it recalls
furloughed United pilots employed by Contractor.
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* Confidential
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠