Frontier Airlines 2006 Annual Report Download - page 252

Agreement.
Section 2.02 Flight-Related Revenue. RAI acknowledges and agrees that all revenues resulting from the sale and issuance
of passenger tickets associated with the operation of the Covered Aircraft and all other sources of revenue associated with the
operation of the Covered Aircraft, including without limitation fees related to ticket changes, unaccompanied minors, excess baggage
and nonrevenue pass travel, revenues relating to the transportation of cargo or mail, and revenues associated with food, beverage,
passenger entertainment, duty-free services, and guaranteed or incentive payments from airport, local or municipal authorities in
connection with scheduling flights to such airport or locality, are the sole property of and shall be retained by Frontier (or, if received
by RAI, shall be promptly accounted for and remitted to Frontier).
Section 2.03 Pass Travel. RAI maintenance personnel traveling to provide critical repair services and dead heading RAI
crews will be entitled to travel on flights operated by RAI or Frontier as must ride passengers. Commuting RAI crew members and all
other RAI employees will be entitled to travel on Frontier and Frontier JetExpress flights at a priority category one level below the
lowest category for Frontier employees and subject to the fare policies applicable to individuals traveling at that priority level. To the
extent permitted by existing arrangements, Frontier employees will be entitled to (x) travel on Scheduled Flights operated by RAI
under the category of travel and fare policies to which they are entitled to travel on Frontier flights, and (y) will be entitled to travel on
all other RAI operated flights at a category one level below the lowest category for RAI employees.
Section 2.04 Conversion of Covered Aircraft. RAI will be responsible for all costs and expenses of preparing each
Covered Aircraft prior to its being placed into service hereunder in accordance with the specifications, cabin configurations and livery
as required by Exhibit C, provided, it is expressly understood that the first four aircraft scheduled to be placed in service under Exhibit
C (the "Two-Class Aircraft") will be placed in service on the dates indicated in RAI’s two-class 70-seat configuration. RAI, at its sole
cost and expense, will convert the Two-Class Aircraft to the specifications, cabin configurations and livery as described in Exhibit C
and obtain all necessary approvals, documentation, and certifications required or prudent in connection with such configuration and
conversion no later than June 30, 2007. During the period between the initial inservice date and the inservice date following the
reconfiguration of the Two-Class Aircraft, the monthly aircraft rent rate as set forth in Exhibit D will be reduced by [* ] per month per
aircraft, with a pro rata rent reduction for any partial month.
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* Confidential
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠