| REASON FOR      CHANGE: |
|-------------------------|

----

| 1.0 | Subject      to Letter Agreement No. 21 herein, signing of this Contract Change Order      No. 16 by Buyer constitutes Buyer’s written notice of its intention to      purchase the five (5) Option Aircraft set out in Letter Agreement No. 02      (Option Aircraft).  Letter Agreement No. 02 is deleted in its      entirety.  All terms of the Agreement applicable to the      “Aircraft” shall apply to the five exercised Option Aircraft, including      without limitation Article 1.0 of Letter Agreement No.  04. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.0 | All      references to “Twenty-Five” Aircraft shall be deleted and replaced with      “Thirty” Aircraft. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| 3.0 | The      Definition of the “Economic Adjustment Formula in Article 1.3 of the      Agreement is deleted and replaced with the  following: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “‘Economic Adjustment      Formula’ means the economic adjustment formula attached as Appendix      I to reflect economic fluctuations during the period from January 1, 2007      to the Delivery Date provided that no adjustment shall have the effect of      reducing the Aircraft Purchase Price below the Base Price.      [***] |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.0 | Appendix      II (Delivery Schedule) of the Agreement is deleted and replaced with the      following: |
|-----|--------------------------------------------------------------------------------------------------------|

| “Aircraft | Scheduled Delivery      Month |
|-----------------|-------------------------------|

| First      Aircraft | [***] |
|---------------------|-------|

| Second      Aircraft | [***] |
|----------------------|-------|

| Third      Aircraft | [***] |
|---------------------|-------|

| Fourth      Aircraft | [***] |
|----------------------|-------|

| Fifth      Aircraft | [***] |
|---------------------|-------|

| Sixth      Aircraft | [***] |
|---------------------|-------|

| Seventh      Aircraft | [***] |
|-----------------------|-------|

| Eighth      Aircraft | [***] |
|----------------------|-------|

| Ninth      Aircraft | [***] |
|---------------------|-------|

| Tenth      Aircraft | [***] |
|---------------------|-------|

| Eleventh      Aircraft | [***] |
|------------------------|-------|

| Twelfth      Aircraft | [***] |
|-----------------------|-------|

| Thirteenth      Aircraft | [***] |
|--------------------------|-------|

| Fourteenth      Aircraft | [***] |
|--------------------------|-------|

| Fifteenth      Aircraft | [***] |
|-------------------------|-------|

| Sixteenth      Aircraft | [***] |
|-------------------------|-------|

| Seventeenth      Aircraft | [***] |
|---------------------------|-------|

| Eighteenth      Aircraft | [***] |
|--------------------------|-------|

| Nineteenth      Aircraft | [***] |
|--------------------------|-------|

| Twentieth      Aircraft | [***] |
|-------------------------|-------|

| Twenty-first      Aircraft | [***] |
|----------------------------|-------|

| Twenty-second      Aircraft | [***] |
|-----------------------------|-------|

| Twenty-third      Aircraft | [***] |
|----------------------------|-------|

| Twenty-fourth      Aircraft | [***] |
|-----------------------------|-------|

| Twenty-fifth      Aircraft | [***] |
|----------------------------|-------|

| Twenty-sixth      Aircraft | [***] |
|----------------------------|-------|

| Twenty-seventh      Aircraft | [***] |
|------------------------------|-------|

| Twenty-eighth      Aircraft | [***] |
|-----------------------------|-------|

| Twenty-ninth      Aircraft | [***] |
|----------------------------|-------|

| Thirtieth      Aircraft | [***]” |
|-------------------------|--------------|

| 5.0 | Appendix      IV-B of the Agreement is deleted and replaced with Appendix IV-B attached      hereto as Attachment No. 3 |
|-----|-------------------------------------------------------------------------------------------------------------------------|

----

| 6.0 | Article      4.2 of the Agreement is deleted and replaced with the      following: |
|-----|------------------------------------------------------------------------------------|

|   | “4.2 |
|--------|------------|

|   | (a) | The      Basic Aircraft Price for each of (i) the First through the Fifteenth      Aircraft is [***]; and (ii) the Sixteenth through the Thirtieth Aircraft      is [***] expressed in January 1, 2007 United States    Dollars. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      price for the Buyer Selected Optional Features for each Aircraft (i) under      Appendix IV-A (which applies to the First through the Fifteenth Aircraft)      is [***]; and (ii) under Appendix IV-B (which applies      to the Sixteenth through the Thirtieth Aircraft) is [***], and are listed      in Appendix IV hereto and are expressed in January 1, 2007 United States      Dollars. |   |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | (c) | The      Aircraft Base Price (which is the sum of the Basic Aircraft Price and the      applicable Buyer Selected Optional Features, expressed in January 1, 2007      United States Dollars) for each Aircraft (i) under Appendix IV-A is [***]      and (ii) under Appendix IV-B is[***].” |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.0 | Article      8.2 of the Agreement is deleted and replaced with the      following: |
|-----|------------------------------------------------------------------------------------|

|   | “8.2 | (a) | For      Aircraft having a Scheduled Delivery Month prior to October 1, 2008,      Bombardier shall give Buyer at least thirty (30) days advance Notice, of      the projected Readiness Date of each Aircraft for inspection and      delivery. |
|--------|------------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | For      Aircraft having a Scheduled Delivery Month after October 1, 2008,      Bombardier shall give Buyer (i) at least ninety (90) days advance Notice,      of the projected two weeks during which each Aircraft may be made      available for inspection (the “Projected Delivery Period”); and (ii) at      least thirty (30) days advance Notice, of the projected Readiness Date of      each Aircraft for inspection anddelivery. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      addition, Bombardier shall give Buyer at least ten (10) working days      advance Notice of the Readiness Date of each  Aircraft.” |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.0 | Article      13.1 of the Agreement is deleted and replaced with the      following: |
|-----|-------------------------------------------------------------------------------------|

| “13.1 | If      delivery of the Aircraft is delayed by causes not addressed under Article      12 (a “Non-Excusable Delay”) or Bombardier otherwise fails to deliver an      Aircraft, Bombardier shall pay Buyer, as liquidated damages and not as a      penalty damages in accordance with this Article  13. |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.1.1 | For      Aircraft having a Scheduled Delivery Month prior to October 1, 2008, the      amount of liquidated damages shall be [***] for each day of Non-Excusable      Delay in excess of a grace period of thirty (30) days, subject to a      maximum of [***] for any such delayed Aircraft. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.1.2 | For      Aircraft having a Scheduled Delivery Month after October 1, 2008, the      amount of liquidated damages shall be [***] for each day of Non-Excusable      Delay in excess of a grace period of fifteen (15) days, subject to a      maximum of [***] for any such delayed Aircraft.  The fifteen-      (15-) day grace period described herein shall commence the day after the      last day [***] of the  Scheduled Delivery Month, whichever      occurs first. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Buyer acknowledges that the foregoing amounts of liquidated damages are      reasonable in light of the circumstances of this    Agreement.” |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.0 | Article      3.2.1 of Annex A of the Agreement is deleted in its entirety and replaced      with the following: |
|-----|-----------------------------------------------------------------------------------------------------------------|

| “3.2.1 | Flight Crew Ground      Training |
|--------------|----------------------------------|

|   | Bombardier      shall, with each Aircraft delivered, provide TC or FAA approved pilot      initial training for up to [***] pilots who meet the minimum entry      requirements. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Each      standard course for each of the First through the Fifteenth Aircraft      delivered, shall consist of up to [***] hours of classroom instruction,      which may include Computer Based Training (CBT) and the following Systems      Integration Training: Electronic Flight Instrument Training (EFIS),      Cockpit Procedures Mock-up (CPM) and Cockpit Procedures Training      (CPT).  This will be followed by [***] training sessions and      [***] check ride session in a TC or FAA approved flight simulator at      Flight Safety Canada for each crew trained.  Each session      consist of [***] hours in the simulator and required briefing/debriefing      sessions per crew trained.  Bombardier shall furnish each of      Buyer’s pilots attending the course [***] copy of the Pilot Training      Manuals (without revision service).  The Pilot Training Manuals      include the following: Flight Crew Operating Manuals (FCOM) Volumes I, II      & III, Quick Reference Handbook (QRH), Take Off and Landing Card      (TOLD) and cockpit poster. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | For      each of the Sixteenth through the Thirtieth Aircraft    delivered |
|--------|-----|----------------------------------------------------------------------------|

|   | (i) | Each      standard course shall consist of up to [***] hours of classroom      instruction (as per the Buyer’s current approved syllabus), which may      include Computer Based Training (CBT) and the following Systems      Integration Training: Electronic Flight Instrument Training (EFIS),      Cockpit Procedures Mock-up (CPM), and Cockpit Procedures Training (CPT).      This will be followed by [***] training sessions, [***] LOFT session and      [***] check ride session in an FAA approved flight simulator at Flight      Safety Canada or other Flight Safety locations as agreed to by both      parties for each crew trained. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Each      training session and LOFT session shall consist of [***] hours in the      simulator and any required briefing/debriefing sessions per crew trained.      The check ride will include provision for an Oral exam, Walkaround (CBT or      Classroom based) and a simulator session to meet the Buyer’s approved      check ride profile. Bombardier shall furnish each of Buyer's pilots      attending the course with [***] copy of the Pilot Training Manuals      (without revision service).  The Pilot Training Manuals include      the following: Flight Crew Operating Manuals (FCOM) Volumes I, II &      III, Quick Reference Handbook (QRH), and cockpit  poster. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | If      there is any training or training requirements over and above those stated      above, such training or training requirements shall be at Buyer’s sole      cost and expense.” |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.0 | Article      1.0 of Letter Agreement No. 01 (Credit Memo) is deleted in its entirety      and replaced with the following: |
|------|----------------------------------------------------------------------------------------------------------------------------|

|   | “1.0 | In      consideration of Buyer having entered into the Agreement, Bombardier shall      issue to Buyer, at the time of delivery of each Aircraft, a credit      memorandum in the amount of amount of (a) [***] for each of the First      through the Fifteenth Aircraft; (b) [***] for each of the Sixteenth      through Thirtieth Aircraft; and (c) if applicable, [***] for each Aircraft      that is subsequent to the Thirtieth Aircraft.  Such credit      memoranda are expressed in January 1, 2007 United States Dollars and are      adjusted to the date of delivery of each Aircraft using the Economic      Adjustment Formula in Appendix I of the  Agreement.” |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.0 | [***] |
|--------|------|-------|

| 12.0 | Article      7.0 of Letter Agreement No. 03 (Reserve Option Aircraft) is deleted in its      entirety and replaced with thefollowing: |
|------|---------------------------------------------------------------------------------------------------------------------------------------|

| “7.0 | Scheduled      Delivery Months of the Reserve Option Aircraft are as    follows: |
|------------|----------------------------------------------------------------------------------|

|   | Scheduled Delivery      Month |
|--------|-------------------------------|

|         First      Reserve Option Aircraft | [***] |
|------------------------------------------------------------------------------------|-------|

|         Second      Reserve Option Aircraft | [***] |
|-------------------------------------------------------------------------------------|-------|

|         Third      Reserve Option Aircraft | [***] |
|------------------------------------------------------------------------------------|-------|

|         Fourth      Reserve Option Aircraft | [***] |
|-------------------------------------------------------------------------------------|-------|

|         Fifth      Reserve Option Aircraft | [***] |
|------------------------------------------------------------------------------------|-------|

|         Sixth      Reserve Option Aircraft | [***] |
|------------------------------------------------------------------------------------|-------|

|         Seventh      Reserve Option Aircraft | [***] |
|--------------------------------------------------------------------------------------|-------|

|         Eighth      Reserve Option Aircraft | [***] |
|-------------------------------------------------------------------------------------|-------|

|         Ninth      Reserve Option Aircraft | [***] |
|------------------------------------------------------------------------------------|-------|

|         Tenth      Reserve Option Aircraft | [***] |
|------------------------------------------------------------------------------------|-------|

|         Eleventh      Reserve Option Aircraft | [***] |
|---------------------------------------------------------------------------------------|-------|

|         Twelfth      Reserve Option Aircraft | [***] |
|--------------------------------------------------------------------------------------|-------|

|         Thirteenth      Reserve Option Aircraft | [***] |
|-----------------------------------------------------------------------------------------|-------|

|         Fourteenth      Reserve Option Aircraft | [***] |
|-----------------------------------------------------------------------------------------|-------|

|         Fifteenth      Reserve Option Aircraft | [***]” |
|----------------------------------------------------------------------------------------|--------------|

----

| 13.0 | Article      1.0 of Letter Agreement No. 04 (Flexibility for Deposits and Cancellation)      is deleted in its entirety and replaced with the  following: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|             “1.0 | Progress      Payments |
|------------------------------------------------------|------------------------|

|   | 1.1 | Notwithstanding      Article 5.0 of the Agreement with respect to the progress payments for the      Sixteenth through to the Thirtieth Aircraft, Buyer shall    pay: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | in      the case of the Sixteenth through Twenty-Fifth  Aircraft, |
|--------|-----|-------------------------------------------------------------------|

|   | (i) | [***]      of the Aircraft Purchase Price upon execution of the Agreement (less the      deposit for such Aircraft received by Bombardier from the executed      proposal No. 1409R2 dated February 1, 2007);and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | [***]      of the Aircraft Purchase Price on or prior to [***] (less the deposit for      such Aircraft received by Bombardier from the executed proposal No. 1409R2      dated February 1, 2007); |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in      the case of the Twenty-Sixth through Thirtieth Aircraft, [***] of the      Aircraft Purchase Price on or prior to[***]; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | in      the case of the Sixteenth through Thirtieth Aircraft, [***] of the      Aircraft Purchase Price [***] months prior to the Scheduled Delivery Month      of the applicable Aircraft;and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | in      the case of the Sixteenth through Thirtieth Aircraft, [***] of the      Aircraft Purchase Price [***] months prior to the Scheduled Delivery Month      of the applicable Aircraft.” |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.0 | Subject      to Letter Agreement No. 21, signing of this Contract Change Order No. 16      by Buyer constitutes Buyer’s written notice of its intention to purchase      the Sixteenth through Twenty-Fifty Aircraft.  Accordingly,      Article 2.0 of Letter Agreement No. 04 (Flexibility for Deposits [***]) is      deleted in its entirety and replaced with the  following: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “2.0 | [Intentionally      Deleted]” |
|--------|------------|-------------------------------------|

| 15.0 | Letter      Agreement Nos. 18 [***], 19 [***], 20 [***] and 21 (Incremental Option      Aircraft) attached hereto as Attachment Nos. 11, 12, 13 and 14,      respectively, are hereby incorporated into the  Agreement. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Note:The      attached substitute pages to this Contract Change Order No. 16 are      provided for administrative purposes only and by themselves do not      constitute the formal amending document to the Agreement.  In      the event of a discrepancy between this Contract Change Order and any      attachment to such Contract Change Order, the contents of this Contract      Change Order No. 16 shall prevail. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | BOMBARDIER      INC., represented by                            COLGAN AIR,      INC. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Bombardier      Aerospace |
|--------|---------------------------|

|   | Commercial      Aircraft |
|--------|--------------------------|

|   | ______________________________                                 ______________________________ |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             ______________________________ | Per:      __________________________ |
|--------------------------------------------------------------------------|--------------------------------------|

|   | ______________________________ |
|--------|--------------------------------|

|   | Title:      __________________________ |
|--------|----------------------------------------|

|   | Date:__________________________                          Date:      __________________________ |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | BOMBARDIER      INC., represented by |
|--------|--------------------------------------|

|   | Bombardier      Aerospace |
|--------|---------------------------|

|   | Commercial      Aircraft |
|--------|--------------------------|

|   | ______________________________ |
|--------|--------------------------------|

|   | ______________________________ |
|--------|--------------------------------|

|   | ______________________________ |
|--------|--------------------------------|

|   | Date:  __________________________ |
|--------|---------------------------------------------|

----

| REASON FOR      CHANGE: |
|-------------------------|

----

| 1.0 | Letter      Agreement No. 21 (Incremental Option Aircraft) is deleted and Letter      Agreement No. 21A (Incremental Option Aircraft) is hereby incorporated      into the Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | This      Contract Change Order shall be valid for acceptance by the parties up to      and no later than February 6,2009. |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   | BOMBARDIER      INC., represented byCOLGAN AIR,INC. |
|--------|-----------------------------------------------------|

|   | Bombardier      Aerospace |
|--------|---------------------------|

|   | Commercial      Aircraft |
|--------|--------------------------|

|   | ____________________________________________________________ |
|--------|--------------------------------------------------------------|

|                     ______________________________ | Per:      __________________________ |
|--------------------------------------------------------------------------------------------------------------------------|--------------------------------------|

|   | ______________________________ |
|--------|--------------------------------|

|   | Title:      __________________________ |
|--------|----------------------------------------|

|   | Date:__________________________                              Date: __________________________ |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | BOMBARDIER      INC., represented by |
|--------|--------------------------------------|

|   | Bombardier      Aerospace |
|--------|---------------------------|

|   | Commercial      Aircraft |
|--------|--------------------------|

|   | ______________________________ |
|--------|--------------------------------|

|   | ______________________________ |
|--------|--------------------------------|

|   | ______________________________ |
|--------|--------------------------------|

|   | Date:  __________________________ |
|--------|---------------------------------------------|

----

| February      6, 2009 |
|-----------------------|

| Gentlemen: |
|------------|

| 1.0   | The      Incremental Option Aircraft will be as described in Article 2 of the      Agreement and include the Buyer Selected Optional Features as set out in      Appendix IV-B of the Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.0   | The      basic price for each of the Incremental Option Aircraft shall be the Base      Price set out below, plus an amount [***] to reflect product      improvements in the Bombardier Q400 Series aircraft, as applicable. The      Incremental Option Aircraft will be offered for acceptance to Buyer Ex      Works Bombardier's offices or premises in Toronto,  Ontario. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | The      Base Price for the Incremental Option Aircraft is [***] expressed in      January 1, 2007 United StatesDollars. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| (b)   | The      price for the Buyer Selected Optional Features for each Incremental Option      Aircraft is [***], and are listed in Appendix IV-B to the Agreement and      are expressed in January 1, 2007 United States Dollars. The final price      for the Buyer Selected Optional Features may be amended to incorporate      changes in Specification including cabin configuration as detailed in a      Change Order to be mutually agreed. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   |  The      Aircraft Base Price (which is the sum of the Base Price and the applicable      Buyer Selected Optional Features, expressed in January 1, 2007 United      States Dollars) for each Incremental Option Aircraft under Appendix IV-B      to the Agreement is [***]. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The      Aircraft Base Price of each Incremental Option Aircraft shall be adjusted      from January 1, 2007 to the delivery date of the Incremental Option      Aircraft using the Economic Adjustment Formula, as set forth in Appendix I      of the Agreement, in order to determine the Aircraft Purchase Price at the      delivery of the Incremental Option Aircraft.  [***] |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.0   | In      consideration of Buyer having entered into the Agreement, and in lieu of      the Credit Memorandum in Letter Agreement No. 1 of the Agreement,      Bombardier shall issue to Buyer, at the time of delivery of each      Incremental Option Aircraft, a credit memorandum in the amount of [***]      expressed in January 1, 2007 United States  Dollars. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.0   | Buyer      shall exercise its right to purchase the Incremental Option Aircraft by      providing to Bombardier irrevocable written notice of its intention to do      so no later than the first day of the [***] month prior to the Scheduled      Delivery Month of the applicable Incremental Option    Aircraft. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.0   | Buyer      shall deposit with Bombardier [***] calculated as [***] times each      Incremental Option Aircraft on the first business day of [***] (the      “Incremental Option AircraftDeposit”). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.0   | Buyer      shall make payment or cause payment to be made for each Incremental Option      Aircraft [***] for each Aircraft by [***] from January 1, 2007 to the      Scheduled Delivery Month) asfollows: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | [***]      of the estimated net Aircraft Purchase Price upon exercise of the      Incremental Option Aircraft (less the deposit for such Incremental Option      Aircraft received by Bombardier as per the terms of this Letter      Agreement); |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | [***]      of the estimated net Aircraft Purchase Price [***]prior to its Scheduled      Delivery Month of each Incremental Option  Aircraft |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | [***]      of the estimated net Aircraft Purchase Price [***] prior to its Scheduled      Delivery Month of each Incremental Option Aircraft;  and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The      balance of the Incremental Option Aircraft Purchase Price, less the      Incremental Option Aircraft Deposit, on or before the date of delivery of      such Incremental Purchase Aircraft. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.0   | Scheduled      Delivery Months of the Incremental Option Aircraft are as      follows: |
|-----------------|----------------------------------------------------------------------------------------|

| 8.0   | Buyer's      failure to exercise its rights with respect to any Incremental Option      Aircraft shall result in the cancellation of Buyer’s right to such      Incremental Option Aircraft and Bombardier shall return the Incremental      Option Aircraft Deposit withoutinterest. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.0   | Upon      exercise of Buyer's right to purchase the Incremental Option Aircraft by      execution of this Letter Agreement, the parties shall consider all      definitions, terms and conditions of the Agreement as applicable, unless      expressly noted otherwise. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.0   | Except      as may be otherwise agreed in Article 18 of the Agreement, the provisions      of this Letter Agreement are personal to Buyer and shall not be assigned      or otherwise disposed of by Buyer without the prior written consent of      Bombardier, which consent shall not be unreasonably    withheld. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.0   | This      Letter Agreement constitutes an integral part of the Agreement and is      subject to the terms and conditions contained  therein. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 12.0   | Should      there be any inconsistency between this Letter Agreement and the Agreement      with respect to the subject matter covered by the terms hereof, then this      Letter Agreement shall prevail. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.0   | In      the event of termination of the Agreement, this Letter Agreement shall      become automatically null and void. |
|------------------|-------------------------------------------------------------------------------------------------------------------------|

|   | [Remainder      of page intentionally left blank] |
|--------|---------------------------------------------------|

----

----