Exhibit 10.2

 

CONFIDENTIAL TREATMENT

REQUESTED PURSUANT TO RULE 24b-2

 

United Contract No. 165824-2

July 6, 2004

 

 

Amendment No. 2 to

 

United Express® Agreement

 

between

 

United Air Lines, Inc.

 

and

 

Republic Airline, Inc.

 

 

CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES ACT OF 1933.  THE
OMITTED MATERIALS HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

 

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AMENDMENT NO. 2 TO

UNITED EXPRESSÒ AGREEMENT

 

This Amendment No. 2 (the “Amendment”) dated July 6, 2004, amends the United
ExpressÒ Agreement, dated as of February 9, 2004 as previously amended (the
“Agreement”), between UNITED AIR LINES, INC. (“United”), and Republic Airline,
Inc. (“Contractor”).

 

WHEREAS, United and Contractor entered into the Agreement; and

 

WHEREAS, United and Contractor seek to amend the Agreement as and to the extent
provided herein;

 

NOW, THEREFORE, in consideration of the foregoing premises, mutual covenants and
obligations hereinafter contained, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties agree
as follows:

 

1.             Defined Terms.  All capitalized terms used but not defined herein
shall have the meaning set forth in the Agreement.

 

2.             Assignment.  Contractor shall have the right to assign
temporarily to Chautauqua Airlines, Inc. (“Chautauqua”) Contractor’s obligation
to operate one or more of the aircraft to be operated by Contractor hereunder. 
In the event Operator makes such assignment, it shall provide written notice(s)
to United, as early in advance as possible, stating the aircraft to be operated
by Chautauqua and the anticipated duration of such assignment, which shall be
only until such time as such aircraft may be operated by Contractor.  In the
event of such assignment, Chautauqua shall be responsible for all obligations of
Contractor hereunder with respect to the assigned aircraft for the duration of
the assignment, however, Contractor shall invoice United and United shall pay
Contractor as if all services were provided by Contractor.  At the conclusion of
such assignment, Contractor shall provide written notice to United, and
Chautauqua shall have no further rights or obligations with respect to the
operation of the temporarily assigned aircraft.

 

3.             Certification.  The last paragraph of Section II.B of the
Agreement shall be deleted and replaced with the following:

 

“Contractor and Chautauqua shall each use its reasonable best efforts to obtain
certification for either Contractor or Chautauqua by no later than October 17,
2004.  In the event that either Contractor or Chautauqua does not obtain such
certificate by such date, Contractor shall pay United as liquidated damages, [*]
for each day, as outlined on the table below, from such date, until the date
that either Contractor or Chautauqua obtains such certificate, provided that if
either Contractor or Chautauqua does not obtain such certificate by November 20,
2004, United shall have the right to terminate this Agreement, without liability
to Contractor, Chautauqua or Republic due to such termination, by providing 5
days prior written notice to Contractor.  If by November 20, 2004 either
Contractor or Chautauqua has not obtained such certificate, the parties may
agree to extend such deadline, in which case Contractor will be obligated to pay
delay fees to United at the same total charge per day until the earlier of (i)
the date of such deadline, or (ii) the date on which either Contractor or
Chautauqua obtains such certificate.

 

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* Confidential

 

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[*]”

 

4.             Appendix B.  Appendix B to the Agreement shall be deleted and
replaced with the Revised Appendix B attached hereto.  In addition to the 20
firm aircraft listed on Appendix B, Contractor shall have the right to place
into service under the Agreement an additional 3 ERJ-170 aircraft provided that
such aircraft can be delivered prior to June 30, 2005.

 

5.             Miscellaneous.

 

A.            This Amendment constitutes the entire understanding of the parties
with respect to the subject matter hereof, and supersedes all previous
agreements and understandings, oral and written, with respect to such specific
matter and will not be modified, amended or terminated by mutual agreement or in
any manner except by an instrument in writing, executed by the parties hereto.

 

B.            This Amendment may be executed in any number of counterparts, each
of which shall be deemed to be an original and all of which, taken together,
shall constitute a single instrument.

 

C.            Except as expressly amended herein, the Agreement shall remain in
full force and effect.

 

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* Confidential

 

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IN WITNESS WHEREOF, the parties hereto have by their duly authorized officers
caused this Agreement to be entered into and signed as of the day and year first
above written.

 

 

REPUBLIC AIRLINE, INC.

UNITED AIR LINES, INC.

 

 

 

 

 

 

 

 

By:

 

/s/ Bryan K. Bedford

 

By:

 

/s/ Gregory T. Taylor

 

Name:

Bryan K. Bedford

Name:

Gregory T. Taylor

Title:

Chief Executive Officer

Title:

Senior Vice President Planning

 

 

 

 

 

 

 

 

CHAUTAUQUA AIRLINES, INC.

 

 

 

 

 

 

 

 

 

 

By:

 

/s/ Bryan K. Bedford

 

 

 

Name:

Bryan K. Bedford

 

 

Title:

Chief Executive Officer

 

 

 

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APPENDIX B – Revised

RJ – 70 FLEET PLAN

 

Allocation

 

Delivery Dates

 

Units

 

In-Service

 

Spare

 

Total Deliveries

10/17/04

 

3

 

2

 

1

 

3

11/1/04

 

2

 

4

 

1

 

5

11/21/04

 

2

 

6

 

1

 

7

12/1/04

 

1

 

7

 

1

 

8

12/19/04

 

2

 

9

 

1

 

10

1/2/05

 

2

 

11

 

1

 

12

1/16/05

 

1

 

12

 

1

 

13

2/1/05

 

1

 

13

 

1

 

14

3/1/05

 

1

 

14

 

1

 

15

4/1/05

 

1

 

15

 

1

 

16

5/1/05

 

1

 

16

 

1

 

17

6/1/05

 

1

 

17

 

1

 

18

6/12/05

 

1

 

18

 

1

 

19

7/1/05

 

1

 

19

 

1

 

20

Total

 

20

 

 

 

 

 

 

 

 

Contractor shall not be liable for any delays resulting from verifiable
manufacturer aircraft, delivery delays, and /or certification delays.

 

Contractor will have the option to deliver 3 additional RJ-170 aircraft to
United, provided the aircraft can be delivered prior to June 30, 2005.

 

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