Frontier Airlines 2006 Annual Report Download - page 255

(b) Reconciliation. Not later than 30 days following the end of each month, RAI and Frontier shall reconcile
actual amounts due in respect of such month for the Fixed Cost and Variable Cost elements set forth in Appendix 1 to Exhibit D with
the estimated amounts included in the Invoiced Amount for such elements for such month in accordance with the terms and conditions
set forth in Exhibit D. On or before the 15th day following the end of such reconciliation period (or if such day is not a Business Day,
the next Business Day), such reconciled amounts for such month to the extent applicable: (i) shall be paid by Frontier to RAI, together
with any payment to be made by Frontier pursuant to Section 3.06(a)(iii) above, or (ii) shall be paid by RAI to Frontier or set off by
Frontier against any other amounts owing to RAI under this Agreement.
(c) Reimbursed Costs. From time to time it is anticipated that RAI may incur certain costs and expenses in
connection will the provision of Regional Airline Services under this Agreement for which RAI will be reimbursed by Frontier. These
costs and expenses are indicated as “Pass-Thru Costs” on Appendix 1 to Exhibit D. RAI will pay all Pass-Thru Costs in advance, and
will submit to Frontier an invoice together with all supporting documentation for all Pass-Thru Costs incurred. Frontier will reimburse
RAI for all uncontested Pass-Thru Costs within five Business Days following receipt of the invoice and supporting documentation by
electronic transfer of funds to a bank account designated by RAI. RAI will provide any additional supporting information and
documentation to Frontier for any Pass-Thru Costs contested by Frontier at RAI’s earliest convenience. Any disputed Pass-Thru Costs
not resolved within 30 days of receipt of the invoice by Frontier will be resolved in accordance with the arbitration provisions of this
Agreement.
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠